Company registration number 00949863 (England and Wales)
MEASOM (DRYLINE) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
MEASOM (DRYLINE) LIMITED
COMPANY INFORMATION
Directors
A R Measom
F Measom
S Measom
Secretary
V Cooper
Company number
00949863
Registered office
1934 The Yard
Exploration Drive
Leicester
LE4 5JD
Auditor
Mayfield & Co.
2 Merus Court
Meridian Business Park
Leicester
LE19 1RJ
MEASOM (DRYLINE) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
MEASOM (DRYLINE) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The directors present the strategic report for the year ended 31 December 2022.

Review of the business

Measom (Dryline) Limited continues to operate nationally through regional centres providing a complete range of high quality drylining, partitioning and fire protection systems in the building and construction industry.

 

Our strengths lie in our ability to collaborate with our partners. What makes us different is our capability to listen, understand and advise using our experience that can be traced back to 1934. A key strength of the company is its proven ability to undertake drylining schemes in a wide diversity of projects in education, healthcare, commercial, retail, residential and leisure sectors of the industry.

 

Systems are installed to meet both aesthetic and functional requirements as well as specific fire, acoustic, thermal, durability and structural criteria. Construction is not just confined to lightweight partitions - the company installs load bearing metal studs for external walls, internal elements and high bay separating walls, as well as complete building frames. Our highly experienced project teams provide advice and guidance on contractual matters, programming, design aspects and optimum cost solutions.

 

We delivered a wide range of projects across the UK during 2022. The overall performance of the business in the previous year is broadly in line with expectations when taking certain factors and the general economic uncertainty into account. Turnover decreased by just under £3m in the year to £26m due to a delayed start of a project. This was offset in part by the improved gross profit which increased from 17.9% to 20.3%. Debtors have increased and this can be attributed to one project where we have been unable to reach agreement with the contractor of the fair value our variations and preliminary costs and increased overheads as a result. This has also resulted in a loss before taxation of 186K. The business focus on productivity together with continued investment in new technologies helped to deliver improvements in gross profit performance that partly offset problems outlined above. The key business focus of improved productivity will continue in the short to medium term and management will strive to deliver greater efficiencies resulting in a decrease in overheads as a percentage of turnover.

 

Secured orders together with the sales pipeline indicate turnover will increase significantly in 2023 and then remain at similar levels in 2024. The company did not pay a dividend in the year. At the year end the group was still in a very strong position with total equity of £3.4m.

Principal risks and uncertainties

The directors acknowledge that while construction volumes have remained strong in our sectors, the UK market will continue to be highly competitive for the foreseeable future due to inflationary pressures on raw materials and labour shortages and this presents a potential risk for the company. There does remain some uncertainty about the impact of global inflationary pressures over the short term but we feel confident that we can secure projects in sectors that remain buoyant in the medium term.

 

Principal Risks

Although this presents a potential risk for the company, we feel confident that we can secure projects in sectors that remain buoyant in the medium term and the company remains well placed to manage these uncertainties. The company has been investing in an apprenticeship programme and training centre to mitigate impact of our workforce.

 

The company’s business does involve a number of inherent risks which are captured in the risk register and these are monitored regularly by the management team who will manage this risk by continuing its philosophy of providing the highest quality of products and services to existing clients.

 

Financial Risk Management

The Management team have identified that the business does have credit and liquidity risk if we are unable to recover amounts receivable on a timely basis. We monitor key contracts on a weekly basis and obtain credit references.

 

Contract Delivery

The business delivers large, lengthy and complex projects which carry risks if these are delayed and do not meet client expectations which could threaten our reputation and profitability. The management team ensure robust tender and contract controls to ensure projects are delivered using the correct experience and expertise.

MEASOM (DRYLINE) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
Key performance indicators

The group refers to key performance indicators in order to monitor business performance with reference to time, cost, quality and health and safety. Management also focuses on financial targets, being turnover, margin and return on capital employed. These have been mentioned above and are included in the Profit and Loss Account and Balance Sheet.

 

The group has maintained good liquidity and this has improved significantly during the following year. The business maintains a strong capital base to allow us to meet current contractual commitments, to enable us to deliver further growth and to ensure that the group can withstand the challenge of any macro-economic issues such as the Pandemic.

Other information and explanations

Health and safety ranks equally with all other business objectives and is integrated into every part of our operations. Essential to this policy is the identification, management or elimination of risk, although we cannot do it alone. We collaborate at every level to gain co-operation and full support to guarantee effective implementation.

 

Making a positive contribution to the communities where we work has always been a central part of the company’s philosophy. Our community engagement activities range from promoting local employment and training on our projects to fundraising and sponsorship. We work with our clients to help build better futures for the next generation.

 

We recognise that our people are our most valuable resource. It is the company’s aim to create a culture of learning and personal development where employees at every level and the company take joint responsibility for on-going training and improvement. As a business we do everything we can to support each other and every employee with their Measom journey

 

The Group recognises that some of its activities may have an impact on the environment and are committed to reducing and minimising that impact through continually seeking to improve environmental performance by ensuring that all our employees and manufacturing supply chain develop a sound understanding of any possible environmental impacts and what is expected of them. The company has an environmental training programme and has introduced waste reduction and recycling initiatives at all locations. Our Head Office endeavours to be 100% paperless. We also seek to use the most environmentally efficient modes of transport and reduce unnecessary travel.

By order of the board

V Cooper
Secretary
13 October 2023
MEASOM (DRYLINE) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2022.

Principal activities

The principal activity of the company continued to be that of drylining.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

A R Measom
F Measom
S Measom
Auditor

The auditor, Mayfield & Co., is deemed to be reappointed under section 487(2) of the Companies Act 2006.

MEASOM (DRYLINE) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

By order of the board
V Cooper
Secretary
13 October 2023
MEASOM (DRYLINE) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 5 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements 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 financial statements 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 financial statements, the directors are required to:

 

 

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 financial statements 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.

MEASOM (DRYLINE) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MEASOM (DRYLINE) LIMITED
- 6 -
Opinion

We have audited the financial statements of Measom (Dryline) Limited (the 'company') for the year ended 31 December 2022 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

MEASOM (DRYLINE) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MEASOM (DRYLINE) LIMITED
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

MEASOM (DRYLINE) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MEASOM (DRYLINE) LIMITED
- 8 -

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

 

 

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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 auditor's 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.

Thomas Mayfield BA FCA
Senior Statutory Auditor
For and on behalf of Mayfield & Co.
Chartered Accountants
Statutory Auditor
2 Merus Court
Meridian Business Park
Leicester
LE19 1RJ
13 October 2023
MEASOM (DRYLINE) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
2022
2021
Notes
£
£
Turnover
3
26,314,058
29,090,146
Cost of sales
(20,958,800)
(23,859,722)
Gross profit
5,355,258
5,230,424
Administrative expenses
(5,667,920)
(5,207,870)
Other operating income
-
0
3,230
Operating (loss)/profit
4
(312,662)
25,784
Interest receivable and similar income
7
126,134
215
Interest payable and similar expenses
8
(377)
(881)
(Loss)/profit before taxation
(186,905)
25,118
Tax on (loss)/profit
9
(25,350)
1,380
(Loss)/profit for the financial year
(212,255)
26,498

The profit and loss account has been prepared on the basis that all operations are continuing operations.

MEASOM (DRYLINE) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 10 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
11
41,815
34,917
Current assets
Stocks
12
2,000
2,000
Debtors
13
15,477,965
7,750,936
Cash at bank and in hand
959,099
701,301
16,439,064
8,454,237
Creditors: amounts falling due within one year
14
(13,026,277)
(4,826,117)
Net current assets
3,412,787
3,628,120
Total assets less current liabilities
3,454,602
3,663,037
Provisions for liabilities
Deferred tax liability
16
10,454
6,634
(10,454)
(6,634)
Net assets
3,444,148
3,656,403
Capital and reserves
Called up share capital
18
740,000
740,000
Capital redemption reserve
19
260,000
260,000
Profit and loss reserves
20
2,444,148
2,656,403
Total equity
3,444,148
3,656,403

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

The financial statements were approved by the board of directors and authorised for issue on 13 October 2023 and are signed on its behalf by:
A R Measom
Director
Company registration number 00949863 (England and Wales)
MEASOM (DRYLINE) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2021
740,000
260,000
2,979,905
3,979,905
Year ended 31 December 2021:
Profit and total comprehensive income
-
-
26,498
26,498
Dividends
10
-
-
(350,000)
(350,000)
Balance at 31 December 2021
740,000
260,000
2,656,403
3,656,403
Year ended 31 December 2022:
Loss and total comprehensive income
-
-
(212,255)
(212,255)
Balance at 31 December 2022
740,000
260,000
2,444,148
3,444,148
MEASOM (DRYLINE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 12 -
1
Accounting policies
Company information

Measom (Dryline) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1934 The Yard, Exploration Drive, Leicester, LE4 5JD.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention.

 

The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of F.C.Measom Limited. These consolidated financial statements are available from Companies House.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts. When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

MEASOM (DRYLINE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -

Revenue from contracts for the provision of construction services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures & fittings
10% on net book value
Equipment
33% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each reporting date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

1.6
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

MEASOM (DRYLINE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 14 -
1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Debtors and creditors with no stated interest rate and receivable or payable within one year are measured at transaction price. Any losses arising from impairment are recognised in the profit and loss account.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

MEASOM (DRYLINE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

MEASOM (DRYLINE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 16 -
1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Company contributions to defined contribution plans for the benefit of employee's are expensed as they become payable.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue

The whole of the turnover is attributable to the company's principal activity.

2022
2021
£
£
Other revenue
Interest income
126,134
215
Grants received
-
3,230
MEASOM (DRYLINE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 17 -
4
Operating (loss)/profit
2022
2021
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
79,257
(511)
Government grants
-
(3,230)
Fees payable to the company's auditor for the audit of the company's financial statements
11,000
12,000
Depreciation of owned tangible fixed assets
6,213
11,312
(Profit)/loss on disposal of tangible fixed assets
-
1,355
Operating lease charges
151,248
148,762
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2022
2021
Number
Number
Production staff
17
27
Administration staff
53
51
Management staff
1
1
Total
71
79

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
4,370,775
4,667,857
Social security costs
318,012
290,336
Pension costs
101,755
106,333
4,790,542
5,064,526
6
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
101,250
103,750
MEASOM (DRYLINE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 18 -
7
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
2,009
215
Other interest income
124,125
-
0
Total income
126,134
215
8
Interest payable and similar expenses
2022
2021
£
£
Other interest
377
881
9
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
(3,596)
-
0
Adjustments in respect of prior periods
25,126
-
0
Total current tax
21,530
-
0
Deferred tax
Origination and reversal of timing differences
3,820
(1,380)
Total tax charge/(credit)
25,350
(1,380)
MEASOM (DRYLINE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
9
Taxation
(Continued)
- 19 -

The actual charge/(credit) for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2022
2021
£
£
(Loss)/profit before taxation
(186,905)
25,118
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
(35,512)
4,772
Tax effect of expenses that are not deductible in determining taxable profit
35,154
18,205
Group relief
-
0
(24,126)
Permanent capital allowances in excess of depreciation
(3,238)
1,149
Under/(over) provided in prior years
25,126
-
0
Deferred tax
3,820
(1,380)
Taxation charge/(credit) for the year
25,350
(1,380)
10
Dividends
2022
2021
£
£
Interim paid
-
0
350,000
MEASOM (DRYLINE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 20 -
11
Tangible fixed assets
Fixtures & fittings
Equipment
Total
£
£
£
Cost
At 1 January 2022
118,212
246,230
364,442
Additions
-
0
13,111
13,111
At 31 December 2022
118,212
259,341
377,553
Depreciation and impairment
At 1 January 2022
84,890
244,635
329,525
Depreciation charged in the year
2,928
3,285
6,213
At 31 December 2022
87,818
247,920
335,738
Carrying amount
At 31 December 2022
30,394
11,421
41,815
At 31 December 2021
33,322
1,595
34,917
12
Stocks
2022
2021
£
£
Raw materials and consumables
2,000
2,000
13
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
7,064,578
5,322,860
Gross amounts owed by contract customers
7,950,706
487,630
Amounts owed by group undertakings
41,061
23,323
Other debtors
230,031
1,790,613
Prepayments and accrued income
191,589
126,510
15,477,965
7,750,936
MEASOM (DRYLINE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 21 -
14
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Bank loans and overdrafts
15
-
0
144,390
Trade creditors
4,295,522
1,590,171
Gross amounts owed to contract customers
2,828,181
1,996,476
Amounts owed to group undertakings
1,321,684
205,257
Corporation tax
21,907
-
0
Other taxation and social security
146,197
176,207
Other creditors
4,087,517
389,276
Accruals and deferred income
325,269
324,340
13,026,277
4,826,117
15
Loans and overdrafts
2022
2021
£
£
Bank overdrafts
-
0
144,390
Payable within one year
-
0
144,390
16
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
10,454
6,634
2022
Movements in the year:
£
Liability at 1 January 2022
6,634
Charge to profit or loss
3,820
Liability at 31 December 2022
10,454
MEASOM (DRYLINE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 22 -
17
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
101,755
106,333

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

18
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A ordinary shares of £1 each
500,000
500,000
500,000
500,000
B ordinary shares of £1 each
240,000
240,000
240,000
240,000
740,000
740,000
740,000
740,000

The A ordinary shares and B ordinary shares rank pari passu in all respects, save that dividends may be declared on one class to the exclusion of the other.

19
Capital redemption reserve
2022
2021
£
£
At the beginning and end of the year
260,000
260,000
20
Profit and loss reserves
2022
2021
£
£
At the beginning of the year
2,656,403
2,979,905
(Loss)/profit for the year
(212,255)
26,498
Dividends declared and paid in the year
-
(350,000)
At the end of the year
2,444,148
2,656,403
MEASOM (DRYLINE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 23 -
21
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2022
2021
£
£
Within one year
-
0
11,200
22
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2022
2021
2022
2021
£
£
£
£
Other related parties
251,696
122,791
14,542,407
19,529,160
Loan interest received
2022
2021
£
£
Other related parties
124,125
-

The following amounts were outstanding at the reporting end date:

2022
2021
Amounts due to related parties
£
£
Other related parties
4,085,865
389,276

The following amounts were outstanding at the reporting end date:

2022
2021
Amounts due from related parties
£
£
Other related parties
154,479
1,547,734
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