Registered number
05136214
Mabway Limited
Report and Accounts
30 September 2014
Mabway Limited
Report and accounts
Contents
Page
Company information 1
Directors' report 2 - 3
Strategic report 4
Independent auditors' report 5
Profit and loss account 6
Balance sheet 7
Cash flow statement 8
Notes to the accounts 9 - 18
Mabway Limited
Directors
Mrs A T O'Reilly
M S M O'Reilly
C Money
Secretary
Crawford Accountants Limited
Accountants
Crawford Accountants Limited
Ralls House
Parklands Business Park
Forest Road, Denmead
Waterlooville
Hants, PO7 6XP
Auditors
Howard Smith & Co Limited
1 & 2 Hillbrow House
Linden Drive
Liss
Hants
GU33 7RJ
Bankers
National Westminster Bank plc
23 West Street
Havant
Hants
PO9 1EU
Lloyds Bank plc
4 West Street
Havant
Hants
PO9 1PE
Registered office
Ralls House
Parklands Business Park
Forest Road, Denmead
Waterlooville
Hants, PO7 6XP
Registered number
05136214
Mabway Limited
Directors' report
The directors present their report and accounts for the year ended 30 September 2014.
Principal activities
The company's principal activities during the year continued to be that of training support and delivery.
Dividends
The directors do not recommend a final dividend.
Directors
The following persons served as directors during the year:
Mrs A T O'Reilly
M S M O'Reilly
C Money
Directors' responsibilities
The directors are responsible for preparing the directors' report, strategic report and accounts in accordance with applicable law and regulations.
Company law requires the directors to prepare accounts for each financial year. Under that law the directors have elected to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these accounts, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts;
prepare the accounts on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Disclosure of information to auditors
Each person who was a director at the time this report was approved confirms that:
so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and
they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
Employment of disabled persons
The company gives full and fair consideration to applications for employment made by disabled persons, having regard to their particular aptitudes and abilities. The Directors discuss with any employees who become disabled persons during their employment arrangements for continuing their employment and for arranging appropriate training. The training, career development and promotion of disabled persons employed by the company, generally, is carefully monitored and reviewed.
Employee involvement
During the year the directors have continued to provide employees with information on matters of concern to them as employees, through direct discussion, via team leaders or by e-mail. Employees or their team leaders have been consulted on a regular basis so that their views could be taken into account when making decisions which were likely to affect employees’ interests. The involvement of employees in the company’s performance has been encouraged, so as to achieve a common awareness on the part of employees of the financial and economic factors affecting the performance of the company.
This report was approved by the board on 15 June 2015 and signed on its behalf.
Mrs A T O'Reilly
Director
Mabway Limited
Strategic Report
Review of the business
Mabway Limited’s turnover and profitability have both continued to grow and the company has consolidated its position in terms of the delivery of its operations. Despite considerable changes in the market for its services the company has managed its operating costs, and the risks associated with changing requirements, due to the maturity of its business model.
Key performance indicators
The directors consider the key performance indicators to be gross profit and the control of variable overheads, which is a function of gross profit. The gross profit percentage for the year was 32.9%, compared to 17.0% the previous year. This is a substantial and pleasing increase; however, it should be noted that this is partly due to some non-recurring, higher-profit invoicing and therefore a more realistic target for the future would be 20%.
Principal risks and uncertainties
The principal risks and uncertainties for the company are the potential for variability in demand and the resulting excess overheads, where they cannot be phased down as quickly as demand drops. The directors and other key management personnel will continue to monitor demand carefully and attempt to mitigate these risks by careful planning and expeditious response.
Future developments
Mabway Limited’s customer base continues to expand and the intention is to grow its market share of the training and security services market. This includes supplying outsourced services directly to government. The company continues to support its long-term customers and the directors expect this business to grow in the next financial year. It is also expected that the company will develop further regionally through organic growth.
This report was approved by the board on 15 June 2015 and signed on its behalf.
Mrs A T O'Reilly
Director
Mabway Limited
Independent auditors' report
to the members of Mabway Limited
We have audited the accounts of Mabway Limited for the year ended 30 September 2014 which comprise the Profit and Loss Account, the Balance Sheet, the Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As explained more fully in the Statement of Directors' Responsibilities, the directors are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the accounts in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.
Scope of the audit of the accounts
A description of the scope of an audit of financial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/private.cfm
Opinion on the accounts
In our opinion the accounts:
give a true and fair view of the state of the company's affairs as at 30 September 2014 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the Directors' Report for the financial year for which the accounts are prepared is consistent with the accounts.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the accounts are not in agreement with the accounting records and returns; or
certain disclosures of directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Other matter
The accounts for the year ended 30 September 2013 were not required to be audited
1 & 2 Hillbrow House
Linden Drive
J R Stimpson Liss
(Senior Statutory Auditor) Hants
for and on behalf of GU33 7RJ
Howard Smith & Co Limited
Chartered Accountants and Statutory Auditors 17 June 2015
Mabway Limited
Profit and Loss Account
for the year ended 30 September 2014
Notes 2014 2013
£ £
Turnover 2 11,066,654 9,488,693
Cost of sales (7,424,317) (7,874,279)
Gross profit 3,642,337 1,614,414
Administrative expenses (744,601) (606,130)
Operating profit 3 2,897,736 1,008,284
Interest receivable 4,993 913
Interest payable 6 (1,956) (3,556)
Profit on ordinary activities before taxation 2,900,773 1,005,641
Tax on profit on ordinary activities 7 (639,101) (227,324)
Profit for the financial year 2,261,672 778,317
Continuing operations
None of the company's activities were acquired or discontinued during the above two financial years.
Statement of total recognised gains and losses
The company has no recognised gains or losses other than the profit for the above two financial years.
Mabway Limited
Balance Sheet
as at 30 September 2014
Notes 2014 2013
£ £
Fixed assets
Tangible assets 8 102,994 89,497
Current assets
Debtors 9 784,790 234,925
Cash at bank and in hand 3,346,158 1,560,988
4,130,948 1,795,913
Creditors: amounts falling due within one year 10 (1,559,396) (1,118,891)
Net current assets 2,571,552 677,022
Total assets less current liabilities 2,674,546 766,519
Creditors: amounts falling due after more than one year 11 (9,669) (29,769)
Provisions for liabilities
Deferred taxation 13 (3,026) (2,005)
Net assets 2,661,851 734,745
Capital and reserves
Called up share capital 14 1,000 999
Share premium 15 1,117 -
Profit and loss account 16 2,659,734 733,746
Shareholders' funds 18 2,661,851 734,745
Mrs A T O'Reilly
Director
Approved by the board on 15 June 2015
Mabway Limited
Cash Flow Statement
for the year ended 30 September 2014
Notes 2014 2013
£ £
Reconciliation of operating profit to net cash
inflow from operating activities
Operating profit 2,897,736 1,008,284
Depreciation and amortisation 58,706 50,047
(Increase)/decrease in debtors (549,865) 148,730
Increase in creditors 22,309 350,458
Net cash inflow from operating activities 2,428,886 1,557,519
CASH FLOW STATEMENT
Net cash inflow from operating activities 2,428,886 1,557,519
Returns on investments and servicing of finance 19 3,037 (2,643)
Taxation (212,440) (8)
Capital expenditure 19 (84,463) 4,939
2,135,020 1,559,807
Equity dividends paid (335,684) (109,514)
1,799,336 1,450,293
Financing 19 (14,166) (53,320)
Increase in cash 1,785,170 1,396,973
Reconciliation of net cash flow to movement in net debt
Increase in cash in the period 1,785,170 1,396,973
Decrease in debt and lease financing 15,284 54,028
New finance leases (22,900) (65,701)
Redemption of finance leases 35,160 -
Change in net debt 20 1,812,714 1,385,300
Net funds at 1 October 1,514,838 129,538
Net funds at 30 September 3,327,552 1,514,838
Mabway Limited
Notes to the Accounts
for the year ended 30 September 2014
1 Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention and in accordance with applicable United Kingdom Accounting Standards.
Turnover
Turnover represents the value, net of VAT and discounts, of work carried out in respect of services provided to customers. Any income invoiced in the period in respect of services to be provided to customers in future accounting periods, is deferred to the extent that it would be repayable if those services were not provided.
Depreciation
Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset over its expected useful life, as follows:
Plant and machinery 20-33% straight line
Motor vehicles 25% straight line
Improvements to leasehold properties 20% straight line
Deferred taxation
Full provision is made for deferred taxation resulting from timing differences between the recognition of gains and losses in the accounts and their recognition for tax purposes. Deferred taxation is calculated on an un-discounted basis at the tax rates which are expected to apply in the periods when the timing differences will reverse.
Leasing and hire purchase commitments
Assets held under finance leases and hire purchase contracts, which are those where substantially all the risks and rewards of ownership of the asset have passed to the company, are capitalised in the balance sheet and depreciated over their useful lives. The corresponding lease or hire purchase obligation is treated in the balance sheet as a liability.

The interest element of the rental obligations is charged to the profit and loss account over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding.

Rentals paid under operating leases are charged to income on a straight line basis over the lease term.
Pensions
The company operates a defined contribution pension scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
2 Analysis of turnover 2014 2013
£ £
By activity:
Training support and delivery 11,066,654 9,488,693
By geographical market:
UK 11,066,654 9,488,693
3 Operating profit 2014 2013
£ £
This is stated after charging:
Depreciation of owned fixed assets 31,129 24,601
Depreciation of assets held under finance leases and hire purchase contracts 8,150 8,428
Operating lease rentals - plant and machinery 2,065 1,377
Operating lease rentals - land buildings 16,034 15,144
Auditors' remuneration for audit services 4,200 -
4 Directors' emoluments 2014 2013
£ £
Emoluments 35,099 69,922
Company contributions to money purchase pension schemes 83,050 101,400
118,149 171,322
Number of directors in company pension schemes: 2014 2013
Number Number
Money purchase schemes 3 3
5 Staff costs 2014 2013
£ £
Wages and salaries 6,409,694 6,964,574
Social security costs 419,360 496,061
Other pension costs 105,287 119,102
6,934,341 7,579,737
Average number of employees during the year Number Number
Administration and training 30 24
Fulfilment 1,505 981
1,535 1,005
6 Interest payable 2014 2013
£ £
Bank loans and overdrafts - 1,882
Finance charges payable under finance leases and hire purchase contracts 1,956 1,674
1,956 3,556
7 Taxation 2014 2013
£ £
Analysis of charge in period
Current tax:
UK Corporation Tax on profits of the period 638,080 212,440
Deferred tax:
Origination and reversal of timing differences 1,021 14,884
Tax on profit on ordinary activities 639,101 227,324
Factors affecting tax charge for period
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows:
2014 2013
£ £
Profit on ordinary activities before tax 2,900,773 1,005,641
Standard rate of Corporation Tax in the UK 22.00% 23.07%
£ £
Profit on ordinary activities multiplied by the standard rate of Corporation Tax 638,170 232,001
Effects of:
Expenses not deductible for tax purposes 483 582
Capital allowances for period in excess of depreciation (573) (303)
Utilisation of tax losses - (19,840)
Current tax charge for period 638,080 212,440
8 Tangible fixed assets
Land and buildings Plant and machinery Motor vehicles Total
£ £ £ £
Cost
At 1 October 2013 - 153,135 72,724 225,859
Additions 17,173 35,699 55,186 108,058
Disposals - (78,191) (54,246) (132,437)
At 30 September 2014 17,173 110,643 73,664 201,480
Depreciation
At 1 October 2013 - 123,839 12,523 136,362
Charge for the year 2,496 19,170 17,613 39,279
On disposals - (72,486) (4,669) (77,155)
At 30 September 2014 2,496 70,523 25,467 98,486
Net book value
At 30 September 2014 14,677 40,120 48,197 102,994
At 30 September 2013 - 29,296 60,201 89,497
2014 2013
£ £
Net book value of fixed assets included above held under finance leases and hire purchase contracts 20,363 47,076
9 Debtors 2014 2013
£ £
Trade debtors 525,882 7,043
Other debtors 13,433 8,603
Prepayments and accrued income 245,475 219,279
784,790 234,925
10 Creditors: amounts falling due within one year 2014 2013
£ £
Obligations under finance lease and hire purchase contracts 8,937 16,381
Trade creditors 90,101 82,173
Corporation Tax 638,080 212,440
Other taxes and social security costs 692,435 674,499
Other creditors 15,444 2,514
Accruals and deferred income 114,399 130,884
1,559,396 1,118,891
11 Creditors: amounts falling due after one year 2014 2013
£ £
Obligations under finance lease and hire purchase contracts 9,669 29,769
12 Obligations under finance leases and hire purchase 2014 2013
contracts £ £
Amounts payable:
Within one year 8,937 16,381
Within two to five years 9,669 29,769
18,606 46,150
Obligations under finance leases and hire purchase agreements are secured on the assets to which they relate.
13 Deferred taxation 2014 2013
£ £
Accelerated capital allowances 3,026 2,005
Undiscounted provision for deferred tax 3,026 2,005
2014 2013
£ £
At 1 October 2,005 (12,879)
Deferred tax charge in profit and loss account 1,021 14,884
At 30 September 3,026 2,005
14 Share capital Nominal 2014 2014 2013
value Number £ £
Allotted, called up and fully paid:
Ordinary shares £1 each 849 849 849
'A' ordinary shares £1 each 65 65 65
'B' ordinary shares £1 each 65 65 65
'C' ordinary shares £1 each 15 15 15
'D' ordinary shares £1 each 1 1 1
'E' ordinary shares £1 each 1 1 1
'F' ordinary shares £1 each 1 1 1
'G' ordinary shares £1 each 1 1 1
'H' ordinary shares £1 each 1 1 1
'I' ordinary shares £1 each 1 1 -
1,000 999
Nominal Number Amount
value £
Shares issued during the period:
'I' ordinary shares £1 each 1 1
The consideration received in respect of shares issued during the period was £1,118.
15 Share premium 2014
£
Shares issued 1,117
At 30 September 2014 1,117
16 Profit and loss account 2014
£
At 1 October 2013 733,746
Profit for the financial year 2,261,672
Dividends (335,684)
At 30 September 2014 2,659,734
17 Dividends 2014 2013
£ £
Dividends for which the company became liable during the year:
Dividends paid 335,684 109,514
18 Reconciliation of movement in shareholders' funds 2014 2013
£ £
At 1 October 734,745 65,234
Profit for the financial year 2,261,672 778,317
Dividends (335,684) (109,514)
Shares issued 1,118 708
At 30 September 2,661,851 734,745
19 Gross cash flows 2014 2013
£ £
Returns on investments and servicing of finance
Interest received 4,993 913
Interest paid - (1,882)
Interest element of finance lease rental payments (1,956) (1,674)
3,037 (2,643)
Capital expenditure
Payments to acquire tangible fixed assets (85,158) (22,302)
Receipts from sales of tangible fixed assets 695 27,241
(84,463) 4,939
Financing
Issue of share capital 1,118 708
Capital element of finance lease rental payments (15,284) (54,028)
(14,166) (53,320)
20 Analysis of changes in net debt
At 1 Oct 2013 Cash flows Non-cash changes At 30 Sep 2014
£ £ £ £
Cash at bank and in hand 1,560,988 1,785,170 3,346,158
Finance leases (46,150) 27,544 (18,606)
Total 1,514,838 1,812,714 - 3,327,552
21 Major non-cash transactions 2014
£
Capital value of new finance lease arrangements 22,900
22 Other financial commitments
At the year end the company had annual commitments under non-cancellable operating leases as set out below:
Land and buildings Land and buildings Other Other
2014 2013 2014 2013
£ £ £ £
Operating leases which expire:
within one year 6,128 6,128 - -
within two to five years 8,700 - 2,065 2,065
14,828 6,128 2,065 2,065
23 Related party transactions 2014 2013
£ £
Mr M S M & Mrs A T O'Reilly
(directors)
Dividends paid 285,500 104,367
Amount due to the related parties 5,766 658
Mr J M R O'Reilly, Miss A A M O'Reilly & Miss C E O'Reilly
(son and daughters of directors)
Dividends paid 35,630 5,147
Amount due to the related parties 750 -
C Money
(director)
Dividends paid 14,554 -
24 Ultimate controlling party
The company is under the ultimate control of Mr M S M and Mrs A T O'Reilly by virtue of their controlling shareholding in the company.
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