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Registration number: 00846484

Blackhall Engineering Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2021

 

Blackhall Engineering Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 15

 

Blackhall Engineering Limited

Company Information

Director

Mr A J H Blackhall

Company secretary

Mr A J H Blackhall

Registered office

Bradford Road
Brighouse
West Yorkshire
HD6 4DJ

Accountants

Walker & Sutcliffe
Chartered Accountants
12 Greenhead Road
Huddersfield
West Yorkshire
HD1 4EN

 

Blackhall Engineering Limited

(Registration number: 00846484)
Balance Sheet as at 31 December 2021

Note

2021
£

2020
£

Fixed assets

 

Intangible assets

4

441,606

497,150

Tangible assets

5

545,249

647,506

Investments

6

3

3

 

986,858

1,144,659

Current assets

 

Stocks

7

1,969,965

1,918,657

Debtors

8

1,770,183

1,878,255

Cash at bank and in hand

 

96,171

78,887

 

3,836,319

3,875,799

Creditors: Amounts falling due within one year

9

(3,255,798)

(3,191,731)

Net current assets

 

580,521

684,068

Total assets less current liabilities

 

1,567,379

1,828,727

Creditors: Amounts falling due after more than one year

9

(344,018)

(392,610)

Net assets

 

1,223,361

1,436,117

Capital and reserves

 

Called up share capital

50,000

50,000

Retained earnings

1,173,361

1,386,117

Shareholders' funds

 

1,223,361

1,436,117

For the financial year ending 31 December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the director on 7 September 2022
 

 

Blackhall Engineering Limited

(Registration number: 00846484)
Balance Sheet as at 31 December 2021

.........................................
Mr A J H Blackhall
Company secretary and director

 

Blackhall Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Bradford Road
Brighouse
West Yorkshire
HD6 4DJ
United Kingdom

These financial statements were authorised for issue by the director on 7 September 2022.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The presentational currency is £ sterling.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

 

Blackhall Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

Government grants

Government grants, including non-monetary grants are not recognised until there is reasonable assurance that:
The company will comply with the conditions attaching to them; and
The grants will be received.

The company recognises grants either based on the performance model or the accrual model. This policy choice is applied on a class-by-class basis.
The company measures grants at the fair value of the asset received or receivable.
Where a grant becomes repayable it is recognised as a liability when the repayment meets the definition of a liability.

Performance model
The performance model recognises grants as follows:
A grant that does not impose specified future performance-related conditions on the company is recognised in income when the grant proceeds are received or receivable.
A grant that imposes specified future performance-related conditions on the company is recognised in income only when the performance-related conditions are met.
Grants received before the revenue recognition criteria are satisfied are recognised as a liability.

Accrual model
The accrual model classifies grants either as a grant relating to revenue or a grant relating to assets.
Grants relating to revenue are recognised in income on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate.
A grant that becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the company with no future related costs is recognised in income in the period in which it becomes receivable.
Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset.
Where part of a grant relating to an asset is deferred it is recognised as deferred income and not deducted from the carrying amount of the asset.

Foreign currency transactions and balances

Transactions in foreign currencies are recorded at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the closing rates at the balance sheet date. All exchange differences are included in the profit and loss account.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

 

Blackhall Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Improvements to property

15% on cost

Plant and machinery

10% on cost

Fixtures and fittings

25% on cost

Motor vehicles

25% on cost

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

On cost over its useful economic life

Other intangible assets

On cost over 10 years

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

Blackhall Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

Blackhall Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 46 (2020 - 58).

 

Blackhall Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

4

Intangible assets

Goodwill
 £

Other intangible assets
 £

Total
£

Cost or valuation

At 1 January 2021

94,279

500,000

594,279

At 31 December 2021

94,279

500,000

594,279

Amortisation

At 1 January 2021

59,629

37,500

97,129

Amortisation charge

5,544

50,000

55,544

At 31 December 2021

65,173

87,500

152,673

Carrying amount

At 31 December 2021

29,106

412,500

441,606

At 31 December 2020

34,650

462,500

497,150

 

Blackhall Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

5

tangible assets

Land and buildings
£

Fixtures and fittings
£

Plant and machinery
£

Motor vehicles
 £

Cost or valuation

At 1 January 2021

102,059

293,703

1,183,456

312,443

Additions

-

-

6,257

21,292

At 31 December 2021

102,059

293,703

1,189,713

333,735

Depreciation

At 1 January 2021

87,024

286,268

611,517

259,346

Charge for the year

11,319

4,867

89,489

24,131

At 31 December 2021

98,343

291,135

701,006

283,477

Carrying amount

At 31 December 2021

3,716

2,568

488,707

50,258

At 31 December 2020

15,035

7,435

571,939

53,097

Total
£

Cost or valuation

At 1 January 2021

1,891,661

Additions

27,549

At 31 December 2021

1,919,210

Depreciation

At 1 January 2021

1,244,155

Charge for the year

129,806

At 31 December 2021

1,373,961

Carrying amount

At 31 December 2021

545,249

At 31 December 2020

647,506

Included within the net book value of land and buildings above is £3,716 (2020 - £15,035) in respect of freehold land and buildings.
 

 

Blackhall Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

6

Investments

2021
£

2020
£

Investments in subsidiaries

3

3

Subsidiaries

£

Cost or valuation

At 1 January 2021

3

Provision

Carrying amount

At 31 December 2021

3

At 31 December 2020

3

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2021

2020

Subsidiary undertakings

Taylorshaw Valves Limited

England and Wales

Ordinary

100%

100%

Blackhall Valve Services Limited

England and Wales

Ordinary

100%

100%

Larner-Johnson Limited

England and Wales

Ordinary

100%

100%

Subsidiary undertakings

Taylorshaw Valves Limited

The principal activity of Taylorshaw Valves Limited is Dormant.

Blackhall Valve Services Limited

The principal activity of Blackhall Valve Services Limited is Dormant.

Larner-Johnson Limited

The principal activity of Larner-Johnson Limited is Dormant.

 

Blackhall Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

7

stocks

2021
£

2020
£

Work in progress

374,965

358,835

Other inventories

1,595,000

1,559,822

1,969,965

1,918,657

8

Debtors

Current

2021
£

2020
£

Trade debtors

1,251,781

1,273,189

Prepayments

115,093

163,425

Other debtors

403,309

441,641

 

1,770,183

1,878,255

 

Blackhall Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

9

Creditors

Creditors: amounts falling due within one year

Note

2021
£

2020
£

Due within one year

 

Loans and borrowings

10

123,401

107,124

Trade creditors

 

1,870,818

1,755,153

Amounts owed to group undertakings and undertakings in which the company has a participating interest

11

2

2

Taxation and social security

 

309,691

318,835

Accruals and deferred income

 

199,855

163,319

Other creditors

 

752,031

847,298

 

3,255,798

3,191,731

Creditors: amounts falling due after more than one year

Note

2021
£

2020
£

Due after one year

 

Loans and borrowings

10

344,018

392,610

Net obligation under finance lease and hire purchase contracts are secured by fixed charges on the assets concerned.

The invoice discounting facility is secured by a debenture over the trade debtors and other assets of the company.

 

Blackhall Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

10

Loans and borrowings

2021
£

2020
£

Non-current loans and borrowings

Bank borrowings

140,000

176,667

Hire purchase contracts

18,216

30,141

Other borrowings

185,802

185,802

344,018

392,610

2021
£

2020
£

Current loans and borrowings

Bank borrowings

40,000

23,334

Hire purchase contracts

27,382

27,771

Other borrowings

56,019

56,019

123,401

107,124

11

Related party transactions

Transactions with the director

2021

At 1 January 2021
£

Advances to director
£

Repayments by director
£

At 31 December 2021
£

Mr A J H Blackhall

139,386

59,442

(4,170)

194,658

         
       

 

Blackhall Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

 

Summary of transactions with subsidiaries

Taylorshaw Valves Limited
 Wholly owned subsidiary
 Throughout the year the company maintained a loan balance with Taylorshaw Valves Limited. At the balance sheet date the amount due to Taylorshaw Valves Limited was £1 (2020 - £1).
 

Summary of transactions with other related parties

Blackhall Engineering Ltd 2010 Pension Scheme
 
A scheme of which Mr AJH Blackhall is a beneficiary
 The company pays rent, which is calculated on an arm's length basis, to the pension scheme, and £34,500 (2020: £52,500) is included in administrative expenses in respect of this charge. The amount charged in this years accounts was reduced as the pension scheme agreed a rent holiday for a period during the last financial year. At the balance sheet date the amount due to Blackhall Engineering Ltd 2010 Pension Scheme was £nil (2020 - £nil).
 

Blackhall Valve Services Limited
Wholly owned subsidiary
Throughout the year the company maintained a loan balance with Blackhall Valve Services Limited. At the balance sheet date the amount due to Blackhall Valve Services Limited was £1 (2020 - £1).