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Registration number: 06816338

Shellon Engineering Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2023

 

Shellon Engineering Limited

Contents

Company Information

1

Statement of Financial Position

2 to 3

Notes to the Unaudited Financial Statements

4 to 12

 

Shellon Engineering Limited

Company Information

Directors

Mr D Fielden

Mr J D Fielden

Registered office

The Nook
West Street
Sowerby Bridge
West Yorkshire
HX6 3AJ

Accountants

Fitton & Co
Chartered Certified Accountants
Callis Mill
Woodland View
Hebden Bridge
West Yorkshire
HX7 6PJ

 

Shellon Engineering Limited

(Registration number: 06816338)
Statement of financial position as at 31 March 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

1,227,544

1,071,531

Current assets

 

Stocks

5

66,875

67,795

Debtors

226,852

204,066

Cash at bank and in hand

 

4,063

15,675

 

297,790

287,536

Creditors: Amounts falling due within one year

(449,334)

(362,369)

Net current liabilities

 

(151,544)

(74,833)

Total assets less current liabilities

 

1,076,000

996,698

Creditors: Amounts falling due after more than one year

(462,547)

(412,427)

Provisions for liabilities

(212,727)

(198,113)

Net assets

 

400,726

386,158

Capital and reserves

 

Called up share capital

204

204

Retained earnings

400,522

385,954

Shareholders' funds

 

400,726

386,158

 

Shellon Engineering Limited

(Registration number: 06816338)
Statement of financial position as at 31 March 2023

For the financial year ending 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' 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 directors acknowledge their 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. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Income Statement.

Approved and authorised by the Board on 16 October 2023 and signed on its behalf by:
 

.........................................
Mr D Fielden
Director

 

Shellon Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

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:
The Nook
West Street
Sowerby Bridge
West Yorkshire
HX6 3AJ
England

These financial statements were authorised for issue by the Board on 16 October 2023.

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.

Judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Significant judgements

The director has reviewed the carrying balances of the fixed assets and is of the opinion that their fair value is not materially different from those stated in the accounts. No other significant judgements have had to be made by the director in preparing these financial statements.

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.

 

Shellon Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

Tax

The tax expense for the period comprises deferred 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.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position 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.

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

Plant and machinery

15% to 25% Straight line

Fixtures and fittings

15% Reducing balance

Motor vehicles

25% Straight line

Office equipment

33% Straight line

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.

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.

 

Shellon Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

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 income statement 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.

Leases

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 statement of financial position as a finance lease obligation.

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

 

Shellon Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

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 directors) during the year, was 8 (2022 - 8).

 

Shellon Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

4

Tangible assets

Fixtures and fittings
£

Plant and machinery
£

Office equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 April 2022

79,463

1,850,090

10,973

151,099

2,091,625

Additions

1,200

417,094

1,043

28,786

448,123

Disposals

-

(116,650)

-

-

(116,650)

At 31 March 2023

80,663

2,150,534

12,016

179,885

2,423,098

Depreciation

At 1 April 2022

34,892

916,619

9,582

59,001

1,020,094

Charge for the year

6,846

250,495

893

24,825

283,059

Eliminated on disposal

-

(107,599)

-

-

(107,599)

At 31 March 2023

41,738

1,059,515

10,475

83,826

1,195,554

Carrying amount

At 31 March 2023

38,925

1,091,019

1,541

96,059

1,227,544

At 31 March 2022

44,571

933,471

1,391

92,098

1,071,531

 

Shellon Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

Finance lease and hire purchase contracts

Included within the net book value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

Note

2023
 £

2022
 £

Plant and machinery

 

866,174

797,773

 

866,174

797,773

Charge on Assets

There are charges held against fixed assets in respect of obligations under finance leases and hire
purchase contracts.

Guarantee

The directors have taken a finance lease for a commercial property which is held personally.
Some of the companies fixed assets were used by way of guarantee of the loan. The fixed assets
NBV in question are £7,556 (2022 £12,709).

5

Stocks

2023
£

2022
£

Other inventories

66,875

67,795

6

Debtors

2023
 £

2022
 £

Trade debtors

195,965

172,542

Other debtors

-

6,074

Prepayments

30,887

25,450

Total current trade and other debtors

226,852

204,066

 

Shellon Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

7

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

9

261,078

214,195

Trade creditors

 

87,551

78,698

Amounts due to related parties

11

5,342

-

Social security and other taxes

 

43,925

26,803

Outstanding defined contribution pension costs

 

890

734

Other payables

 

40,510

33,586

Accrued expenses

 

10,038

8,353

 

449,334

362,369

Due after one year

 

Loans and borrowings

9

462,547

412,427

8

Deferred tax

The deferred tax account consists of the tax effect of timing differences in respect of:

Note

2023
 £

2022
 £

Accelerated capital allowances

 

14,614

47,752

 

Shellon Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

9

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank borrowings

5,555

5,555

Bank overdrafts

8,660

187

Hire purchase contracts

246,863

208,453

261,078

214,195

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

34,023

40,278

Hire purchase contracts

428,524

372,149

462,547

412,427

10

Dividends

Note

2023
 £

2022
 £

Dividends on equity B shares

 

90,000

75,000

Dividends on equity C shares

 

12,000

9,000

 

102,000

84,000

Dividends proposed after the year end and not recognised as a liability:

11

Related party transactions

The company was under the control of D Fielden, a director with his wife, along with members of his
close family throughout the current and previous year. D Fielden is personally interested in 40% of the
company's share capital. In addition, his wife also controls 40% and his adult children control a further
20%.

During the year, the company paid rent for the premises to D Fielden, GM Fielden & JD Fielden
totalling £69,600 (2022: £68,000).

 

Shellon Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

Transactions with directors

2023

At 1 April 2022
£

Advances to director
£

Repayments by director
£

At 31 March 2023
£

Mr D Fielden

Loan advance to company

(217)

(41,523)

46,643

4,903

         
       

Mr J D Fielden

Loan advance to company

(5,858)

(39,686)

45,981

437

         
       

 

2022

At 1 April 2021
£

Advances to director
£

Repayments by director
£

At 31 March 2022
£

Mr D Fielden

Loan advance to company

11,138

(60,939)

49,584

(217)

         
       

Mr J D Fielden

Loan advance to company

161

(31,019)

25,000

(5,858)

         
       

 

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

22,000

22,000

Contributions paid to money purchase schemes

35

143

22,035

22,143