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Registered number: 12360395










STUDLEY ENTERPRISE LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

 
STUDLEY ENTERPRISE LIMITED
 
 
COMPANY INFORMATION


Director
J. L. Hyland 




Registered number
12360395



Registered office
3 Hornhouse Lane
Knowsley Industrial Park

Liverpool

L33 7YQ




Independent auditors
Langtons Professional Services Limited
Chartered Accountants & Statutory Auditors

100 Old Hall Street

Liverpool

L3 9QJ





 
STUDLEY ENTERPRISE LIMITED
 

CONTENTS



Page
Group strategic report
1 - 2
Director's report
3 - 4
Independent auditors' report
5 - 8
Consolidated statement of comprehensive income
9
Consolidated statement of financial position
10 - 11
Company statement of financial position
12 - 13
Consolidated statement of changes in equity
14
Company statement of changes in equity
15
Consolidated statement of cash flows
16 - 17
Consolidated analysis of net debt
18
Notes to the financial statements
19 - 42


 
STUDLEY ENTERPRISE LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

Introduction
 
The directors present their strategic report for the year ended 31 March 2023.

Business review
 
The principal activity of Studley Enterprise Limited is that of a holding company.  The principal activity of Studley Engineering Limited is providing project, maintenance and shutdown services. Over time the business has gained an enviable reputation as a reliable, responsive, motivated contractor that delivers safe, high quality, cost effective work.
During this period, the company has successfully diversified into new markets whilst continuing to work closely with its current customer base. The company has continued with its long-term strategic business plan 2019 – 2029. This has enabled the alignment of both short and long-term strategies, ensuring that the current aims and goals of the business are achieved whilst simultaneously developing security for the long-term future.
As reported in the Groups's Statement of Comprehensive Income, revenue has increased by £1.6m from £13.5m to £15.1m for the 12 months to 31 March 2023 and the Group has also experienced an increase in its gross profit margin from 22.0% in 2022 to 27.8% in the current period, with a reported gross profit of £4.2m (2022 - £3.0m).
Administrative costs have increased by £0.6m to £3.5m and management is pleased to report profit before tax of £0.6m.
The Group's balance sheet shows net assets at the year end of £2.5m after revaluing the freehold property. The Group's current ratio has remained consistent at 1.7:1 and bank balances remain healthy at £1.5m.

Principal risks and uncertainties
 
Management continually monitor the key risks facing the group together with assessing the controls used for managing these risks. The board of directors formally reviews and documents the principal risks facing the business at least annually.
The principal risks and uncertainties facing the group are as follows:
Economic downturn - the group acknowledges the importance of maintaining close relationships with its key customers in order to be able to identify the early signs of potential financial difficulties.
Competitor pressure - the market in which the group operates is considered to be very competitive. The group manages this risk by providing quality work and maintains strong relationships with its key customers.
Political environment - due to the uncertainties surrounding Brexit and the current coronavirus pandemic there has been a slow-down in the engineering market place although the group is able to manage its risk on a contract by contract basis, having strong customer relationships.

Financial key performance indicators
 
The group's key financial performance indicators are turnover, gross margins and cashflow which management monitor closely.
In addition management ensure that its suppliers are paid on time, with smaller creditors paid within 30 days of the month end and larger creditors 45 days from the month end. Debtor days are also closely monitored to ensure invoices are being paid within the agreed credit terms.

Page 1

 
STUDLEY ENTERPRISE LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023


This report was approved by the board on 19 October 2023 and signed on its behalf.







J. L. Hyland
Director

Page 2

 
STUDLEY ENTERPRISE LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2023

The director presents his report and the financial statements for the year ended 31 March 2023.

Director's responsibilities statement

The director is responsible for preparing the Group strategic report, the Director's report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the director is required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting 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 financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The director is 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 the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £348,045 (2022 - loss £223,559).

No dividends are recommended for the year.

Director

The director who served during the year was:

J. L. Hyland 

Disclosure of information to auditors

The director at the time when this Director's report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Page 3

 
STUDLEY ENTERPRISE LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditorsLangtons Professional Services Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 19 October 2023 and signed on its behalf.
 







J. L. Hyland
Director

Page 4

 
STUDLEY ENTERPRISE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STUDLEY ENTERPRISE LIMITED
 

Opinion

We have audited the financial statements of Studley Enterprise Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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:

give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 March 2023 and of the Group's 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.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 director's 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 Group's or the parent 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 director 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 Auditors' report thereon. The director is responsible for the other information contained within the Annual ReportOur 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.

Page 5

 
STUDLEY ENTERPRISE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STUDLEY ENTERPRISE LIMITED (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006

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

the information given in the Group strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Director's report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Director's 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:

adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Director's responsibilities statement set out on page 3, the director is 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 director determines 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 director is responsible for assessing the Group's and the parent 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 director either intends to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.

Page 6

 
STUDLEY ENTERPRISE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STUDLEY ENTERPRISE LIMITED (CONTINUED)


Auditors' 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 Auditors' 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 Group financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The objectives of our audit, in respect to fraud, are:
• to identify and assess the risks of material misstatement of the financial statements due to fraud;
• to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and
• to respond appropriately to fraud or suspected fraud identified during the audit.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
Our approach was as follows:
• We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS 102 and the Companies Act 2006), the relevant tax compliance regulations in the UK and the EU General Data Protection Regulation (GDPR).
• We understood how the Company is complying with those frameworks by making enquiries of management. Through consideration of the results of our audit procedures we were able to either corroborate or provide contrary evidence which was then followed up.
• Based on our understanding we designed our audit procedures to identify non-compliance with laws and regulations. Our procedures involved:
enquiries of management; and
journal entry testing, with a focus on manual consolidation journals and journals indicating large or unusual transactions based on our understanding of the business.
• We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by meeting with management to understand where it considered there was susceptibility to fraud. We also considered performance targets and their propensity to influence efforts made by management to manage revenue and earnings. Where the risk was considered to be higher, including areas impacting key performance indicators or management remuneration, we performed audit procedures to address each identified fraud risk or other risk of material misstatement. These procedures included those on revenue recognition detailed above, the assessment of items identified by management as non-recurring and testing manual journals and were designed to provide reasonable assurance that the financial statements were free from material fraud or error.
 
Page 7

 
STUDLEY ENTERPRISE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STUDLEY ENTERPRISE LIMITED (CONTINUED)



A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 2006Our 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.






Simon Whalley (Senior statutory auditor)
  
for and on behalf of
Langtons Professional Services Limited
 
Chartered Accountants
Statutory Auditors
  
100 Old Hall Street
Liverpool
L3 9QJ

19 October 2023
Page 8

 
STUDLEY ENTERPRISE LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
Note
£
£

  

Turnover
 4 
15,129,362
13,469,944

Cost of sales
  
(10,976,876)
(10,511,811)

Gross profit
  
4,152,486
2,958,133

Administrative expenses
  
(3,483,512)
(2,929,405)

Other operating income
 5 
68,210
85,821

Operating profit
 6 
737,184
114,549

Interest receivable and similar income
 10 
14,200
1,367

Interest payable and similar expenses
 11 
(228,285)
(102,088)

Profit before taxation
  
523,099
13,828

Tax on profit
 12 
(175,054)
(237,387)

Profit/(loss) for the financial year
  
348,045
(223,559)

  

Unrealised surplus on revaluation of tangible fixed assets
  
1,305,476
-

Deferred tax on unrealised surplus on revaluation
  
(273,419)
-

Other comprehensive income for the year
  
1,032,057
-

Total comprehensive income for the year
  
1,380,102
(223,559)

Profit/(loss) for the year attributable to:
  

Owners of the parent Company
  
348,045
(223,559)

  
348,045
(223,559)

The notes on pages 19 to 42 form part of these financial statements.

Page 9

 
STUDLEY ENTERPRISE LIMITED
REGISTERED NUMBER: 12360395

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 13 
4,338,714
4,965,998

Tangible assets
 14 
2,396,949
1,043,404

  
6,735,663
6,009,402

Current assets
  

Stocks
 16 
12,000
12,000

Debtors: amounts falling due within one year
 17 
4,437,859
3,166,974

Cash at bank and in hand
 18 
1,473,598
1,681,433

  
5,923,457
4,860,407

Creditors: amounts falling due within one year
 19 
(3,606,692)
(2,874,914)

Net current assets
  
 
 
2,316,765
 
 
1,985,493

Total assets less current liabilities
  
9,052,428
7,994,895

Creditors: amounts falling due after more than one year
 20 
(6,261,751)
(6,858,795)

Provisions for liabilities
  

Deferred taxation
 24 
(274,475)
-

  
 
 
(274,475)
 
 
-

Net assets
  
2,516,202
1,136,100


Capital and reserves
  

Called up share capital 
 25 
50,000
50,000

Revaluation reserve
 26 
1,032,057
-

Capital contribution reserves
 26 
1,101,501
1,305,258

Profit and loss account
 26 
332,644
(219,158)

Equity attributable to owners of the parent Company
  
2,516,202
1,136,100


Page 10

 
STUDLEY ENTERPRISE LIMITED
REGISTERED NUMBER: 12360395
    
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 19 October 2023.






J. L. Hyland
Director

The notes on pages 19 to 42 form part of these financial statements.

Page 11

 
STUDLEY ENTERPRISE LIMITED
REGISTERED NUMBER: 12360395

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 15 
12,125,888
12,125,888

  
12,125,888
12,125,888

Current assets
  

Debtors: amounts falling due within one year
 17 
50,000
50,000

Cash at bank and in hand
 18 
409,516
9,709

  
459,516
59,709

Creditors: amounts falling due within one year
 19 
(1,389,735)
(1,289,734)

Net current liabilities
  
 
 
(930,219)
 
 
(1,230,025)

Total assets less current liabilities
  
11,195,669
10,895,863

  

Creditors: amounts falling due after more than one year
 20 
(5,744,652)
(6,340,896)

  

Net assets
  
5,451,017
4,554,967


Capital and reserves
  

Called up share capital 
 25 
50,000
50,000

Capital contribution reserves
 26 
1,101,501
1,305,258

Profit and loss account brought forward
  
3,199,710
2,500,032

Profit for the year
  
896,050
610,956

Other changes in the profit and loss account

  

203,757
88,722

Profit and loss account carried forward
  
4,299,516
3,199,709

  
5,451,017
4,554,967


Page 12

 
STUDLEY ENTERPRISE LIMITED
REGISTERED NUMBER: 12360395
    
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 19 October 2023.






J. L. Hyland
Director

The notes on pages 19 to 42 form part of these financial statements.

Page 13

 
STUDLEY ENTERPRISE LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023


Called up share capital
Revaluation reserve
Capital contribution reserves
Profit and loss account
Total equity

£
£
£
£
£


At 1 April 2021
50,000
-
1,393,980
(84,321)
1,359,659


Comprehensive income for the year

Loss for the year
-
-
-
(223,559)
(223,559)


Other comprehensive income for the year
-
-
-
-
-


Total comprehensive income for the year
-
-
-
(223,559)
(223,559)

Transfer to/from profit and loss account
-
-
(88,722)
88,722
-


Total transactions with owners
-
-
(88,722)
88,722
-



At 1 April 2022
50,000
-
1,305,258
(219,158)
1,136,100


Comprehensive income for the year

Profit for the year
-
-
-
348,045
348,045

Surplus on revaluation of leasehold property
-
1,305,476
-
-
1,305,476

Deferred tax on revaluation
-
(273,419)
-
-
(273,419)


Other comprehensive income for the year
-
1,032,057
-
-
1,032,057


Total comprehensive income for the year
-
1,032,057
-
348,045
1,380,102

Transfer to/from profit and loss account
-
-
(203,757)
203,757
-


Total transactions with owners
-
-
(203,757)
203,757
-


At 31 March 2023
50,000
1,032,057
1,101,501
332,644
2,516,202


The notes on pages 19 to 42 form part of these financial statements.

Page 14

 
STUDLEY ENTERPRISE LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023


Called up share capital
Capital contribution reserves
Profit and loss account
Total equity

£
£
£
£


At 1 April 2021
50,000
1,393,980
2,500,032
3,944,012


Comprehensive income for the year

Profit for the year
-
-
610,956
610,956


Other comprehensive income for the year
-
-
-
-


Total comprehensive income for the year
-
-
610,956
610,956

Transfer to/from profit and loss account
-
(88,722)
88,722
-


Total transactions with owners
-
(88,722)
88,722
-



At 1 April 2022
50,000
1,305,258
3,199,710
4,554,968


Comprehensive income for the year

Profit for the year
-
-
896,050
896,050


Other comprehensive income for the year
-
-
-
-


Total comprehensive income for the year
-
-
896,050
896,050

Transfer to/from profit and loss account
-
(203,757)
203,757
-


Total transactions with owners
-
(203,757)
203,757
-


At 31 March 2023
50,000
1,101,501
4,299,517
5,451,018


The notes on pages 19 to 42 form part of these financial statements.

Page 15

 
STUDLEY ENTERPRISE LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
348,045
(223,559)

Adjustments for:

Amortisation of intangible assets
627,284
627,284

Depreciation of tangible assets
71,020
46,958

Government grants
(3,496)
(3,496)

Interest paid
228,285
102,088

Interest received
(14,200)
(1,367)

Taxation charge
175,054
237,387

(Increase)/decrease in debtors
(1,289,237)
949,821

Increase/(decrease) in creditors
566,910
(2,390,341)

Corporation tax (paid)
(531)
(1,247)

Net cash generated from operating activities

709,134
(656,472)


Cash flows from investing activities

Purchase of tangible fixed assets
(55,000)
(29,647)

Interest received
14,200
1,367

HP interest paid
(2,024)
-

Net cash from investing activities

(42,824)
(28,280)

Cash flows from financing activities

Repayment of loans
(48,192)
(50,972)

Purchase of debenture loans
-
88,722

Repayment of debenture loans
(596,243)
-

Repayment of/new finance leases
(3,449)
-

Interest paid
(226,261)
(102,088)

Net cash used in financing activities
(874,145)
(64,338)
Page 16

 
STUDLEY ENTERPRISE LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023


2023
2022

£
£



Net (decrease) in cash and cash equivalents
(207,835)
(749,090)

Cash and cash equivalents at beginning of year
1,681,433
2,430,523

Cash and cash equivalents at the end of year
1,473,598
1,681,433


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,473,598
1,681,433

1,473,598
1,681,433


The notes on pages 19 to 42 form part of these financial statements.

Page 17

 
STUDLEY ENTERPRISE LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2023





At 1 April 2022
Cash flows
New finance leases
At 31 March 2023
£

£

£

£

Cash at bank and in hand

1,681,433

(207,835)

-

1,473,598

Debt due after 1 year

(6,716,786)

643,208

-

(6,073,578)

Debt due within 1 year

(1,202,294)

1,227

-

(1,201,067)

Finance leases

-

3,449

(64,089)

(60,640)


(6,237,647)
440,049
(64,089)
(5,861,687)

The notes on pages 19 to 42 form part of these financial statements.

Page 18

 
STUDLEY ENTERPRISE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1.


General information

The company is a private company limited by shares, incorporated in the United Kingdom and registered in England, with the registration number 12360395. The registered office is 3 Hornhouse Lane, Knowsley Industrial Park, Liverpool, Merseyside, L33 7YQ.
The principal activity of the group is that of plant erection and pipework fabrication.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

  
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

The financial statements have been prepared on a going concern basis which assumes the group will have sufficient funds to continue to pay its debts as and when they fall due this continue to trade. The directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future based on its forecasts and projections. In making their assessment, the directors have considered a period of at least 12 months from the date of signing these financial statements.

Page 19

 
STUDLEY ENTERPRISE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

  
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Profit on long-term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the period end date, by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the period in which they are first foreseen. In accordance with FRS 102, the balance of payments on account in excess of amounts matched with turnover and offset against long term balances, is classified as payments on account and separately disclosed within creditors.
Turnover in respect of daywork represents the invoiced value of work done during the period stated net of value added tax.

 
2.5

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.6

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated statement of comprehensive income in the same period as the related expenditure.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 20

 
STUDLEY ENTERPRISE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.10

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.

 
2.11

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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 and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 21

 
STUDLEY ENTERPRISE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.12

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.13

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property
-
2%
straight line
Plant and machinery
-
25%
straight line
Fixtures and fittings
-
25%
straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 22

 
STUDLEY ENTERPRISE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.14

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the reporting date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.16

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is 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.

 
2.17

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.18

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.19

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 23

 
STUDLEY ENTERPRISE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.20

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of financial position.

 
2.21

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Group's Statement of financial position when the Group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 
Page 24

 
STUDLEY ENTERPRISE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)


2.21
Financial instruments (continued)


Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the
Page 25

 
STUDLEY ENTERPRISE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)


2.21
Financial instruments (continued)

transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

Page 26

 
STUDLEY ENTERPRISE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In applying the group's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions the actual results and outcomes may differ.
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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Critical judgements in applying the company's accounting policies
The critical judgements that the directors have made in the process of applying the group's accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below.
Assessing indicators of impairment
In assessing whether there have been any indicators of impaired assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no indicators of impairments identified during the current financial year.
Assessing operating lease commitments
The group has entered into leases as a leasee obtaining the use of tangible fixed assets. The classification of such leases as operating or finance lease requires management to determine, based on an evaluation of the terms and conditions of the arrangements, whether it retains or acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the statement of financial position.
Determination of discount rate
In determining the market rate of interest to use in the calculation of net present value of future cashflows arising from the issue of interest free loan notes to individuals connected to the shareholders, the directors considered what rate of interest would have been charged had a secured loan been obtained from an unconnected  third party lender.
Key sources of estimation uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Estimating value in use
Where an indication of impairment exists the directors will carry out an impairment review to determine the recoverable amount which is the higher of fair value less cost to sell and value in use. The value in use calculation requires the directors to estimate the future cash flows expected to arise from the asset or the cash generating unit and a suitable discount rate in order to calculate present value.
Recoverability of receivables
The group establish a provision for receivables that are estimated not to be recoverable. When assessing recoverability the directors consider factors such as the ageing of the receivables, past experience of recoverability and the credit profile of individual or groups of customers.

Page 27

 
STUDLEY ENTERPRISE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

4.


Turnover

All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Government grants receivable
3,496
24,653

Fees receivable
64,714
61,168

68,210
85,821



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Other operating lease rentals
104,518
104,083


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
9,750
9,250

Fees payable to the Company's auditors in respect of:

Taxation compliance services
2,200
2,100

All non-audit services not included above
2,200
2,100

Page 28

 
STUDLEY ENTERPRISE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

8.


Employees

Staff costs, including director's remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
6,360,277
6,497,714
-
-

Social security costs
699,375
664,622
-
-

Cost of defined contribution scheme
333,902
242,456
-
-

7,393,554
7,404,792
-
-


The average monthly number of employees, including the director, during the year was as follows:


        2023
        2022
            No.
            No.







Office and administration
31
30



Workshop and onsite
98
122

129
152

The Company has no employees other than the director, who did not receive any remuneration (2022 - £NIL)

9.


Director's remuneration

2023
2022
£
£

Director's emoluments
57,766
50,888

Group contributions to defined contribution pension schemes
9,498
8,977

67,264
59,865


During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.

Page 29

 
STUDLEY ENTERPRISE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

10.


Interest receivable

2023
2022
£
£


Other interest receivable
14,200
1,367

14,200
1,367


11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
20,198
13,366

Other loan interest payable
203,757
88,722

Finance leases and hire purchase contracts
2,024
-

Other interest payable
2,306
-

228,285
102,088


12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
260,882
142,336

Adjustments in respect of previous periods
(105,234)
125,555


155,648
267,891


Total current tax
155,648
267,891

Deferred tax


Origination and reversal of timing differences
19,406
2,908

Changes to tax rates
-
(5,102)

Adjustments in respect of previous periods
-
(28,310)

Total deferred tax
19,406
(30,504)


Taxation on profit on ordinary activities
175,054
237,387
Page 30

 
STUDLEY ENTERPRISE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
523,099
13,828


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
99,389
2,627

Effects of:


Non-tax deductible amortisation of goodwill and impairment
119,184
119,184

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
54,301
20,121

Fixed asset differences
2,757
2,615

Adjustments to tax charge in respect of prior periods
(105,234)
125,555

Adjustments to tax charge in respect of prior periods - deferred tax
-
(28,310)

Remeasurement of deferred tax for changes in tax rates
4,657
(4,405)

Total tax charge for the year
175,054
237,387


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 31

 
STUDLEY ENTERPRISE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

13.


Intangible assets

Group and Company





Goodwill

£



Cost


At 1 April 2022
6,272,840



At 31 March 2023

6,272,840



Amortisation


At 1 April 2022
1,306,842


Charge for the year on owned assets
627,284



At 31 March 2023

1,934,126



Net book value



At 31 March 2023
4,338,714



At 31 March 2022
4,965,998



Page 32

 
STUDLEY ENTERPRISE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

14.


Tangible fixed assets

Group






Long-term leasehold property
Plant and machinery
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 April 2022
1,160,727
439,914
136,457
1,737,098


Additions
-
119,089
-
119,089


Revaluations
1,089,273
-
-
1,089,273



At 31 March 2023

2,250,000
559,003
136,457
2,945,460



Depreciation


At 1 April 2022
192,988
364,249
136,457
693,694


Charge for the year on owned assets
23,215
39,794
-
63,009


Charge for the year on financed assets
-
8,011
-
8,011


On revalued assets
(216,203)
-
-
(216,203)



At 31 March 2023

-
412,054
136,457
548,511



Net book value



At 31 March 2023
2,250,000
146,949
-
2,396,949



At 31 March 2022
967,739
75,665
-
1,043,404

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Plant and machinery
56,078
-

56,078
-

Page 33

 
STUDLEY ENTERPRISE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Cost or valuation at 31 March 2023 is as follows:

Land and buildings
£


At cost
944,525
At valuation:

Revalued on 13th February 2023 by Matthews & Goodman LLP at market value based on
a specified marketing period
1,305,475



2,250,000

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

2023
2022
£
£

Group


Cost
1,160,727
1,160,727

Accumulated depreciation
(216,202)
(192,988)

Net book value
944,525
967,739

Page 34

 
STUDLEY ENTERPRISE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

15.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 April 2022
12,125,888



At 31 March 2023
12,125,888





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Studley Engineering Limited
3 Hornhouse Lane, Knowsley Industrial Park, Liverpool, L33 7YQ
Ordinary
100%


16.


Stocks

Group
Group
2023
2022
£
£

Raw materials and consumables
12,000
12,000

12,000
12,000


The difference between purchase price or production cost of stocks and their replacement cost is not material.

Page 35

 
STUDLEY ENTERPRISE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

17.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
3,799,331
2,632,023
-
-

Other debtors
-
73,193
-
-

Called up share capital not paid
50,000
50,000
50,000
50,000

Prepayments and accrued income
39,680
44,679
-
-

Amounts recoverable on long term contracts
548,848
348,729
-
-

Deferred taxation
-
18,350
-
-

4,437,859
3,166,974
50,000
50,000



18.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
1,473,598
1,681,433
409,516
9,709

1,473,598
1,681,433
409,516
9,709


Page 36

 
STUDLEY ENTERPRISE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

19.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Loan notes 2030
1,153,846
1,153,846
1,153,846
1,153,846

Bank loans
47,221
48,448
-
-

Trade creditors
861,564
623,105
-
-

Amounts owed to group undertakings
-
-
225,888
125,888

Corporation tax
245,096
89,979
-
-

Other taxation and social security
502,228
463,872
-
-

Obligations under finance lease and hire purchase contracts
10,979
-
-
-

Other creditors
311,083
192,229
10,001
10,000

Accruals and deferred income
474,675
303,435
-
-

3,606,692
2,874,914
1,389,735
1,289,734


Loan notes with a face value of £1,200,000 are due within one year and are secured by a fixed and floating charge over the assets of the group. 
In accordance with the accounting policy for basic financial instruments, on initial recognition of the loan notes the liability was measured at the present value of the future cash flows. As no interest is payable under the loan note instrument the directors have determined the net present value of cash flows using an estimate of a market interest rate for an equivalent arms-length transaction. The discount rate used was 4%. 
The initial discount amounted to £1,919,933, which has been reflected as a capital contribution and is shown in the Statement of Other Comprehensive Income.
Bank loans are secured by a first legal charge over the long leasehold property, a debenture comprising fixed and floating charges over all assets and undertakings of the Studley Engineering Limited and a fixed charge over all book and other debts.

Page 37

 
STUDLEY ENTERPRISE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

20.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Loan notes 2030
5,744,652
6,340,896
5,744,652
6,340,896

Bank loans
328,926
375,891
-
-

Net obligations under finance leases and hire purchase contracts
49,661
-
-
-

Government grants received
138,512
142,008
-
-

6,261,751
6,858,795
5,744,652
6,340,896


Loan notes with a face value of £6,800,000 are after more than one year and are secured by a fixed and floating charge over the assets of the group.
The amount show above represents the net present value of future cash flows remaining under the loan note instrument using a discount rate of 4%.
Bank loans are secured by a first legal charge over the long leasehold property, a debenture comprising fixed and floating charges over all assets and undertakings of the Studley Engineering Limited and a fixed charge over all book and other debts.


The aggregate amount of liabilities repayable wholly or in part more than five years after the reporting date is:
Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Repayable by instalments
1,656,554
2,315,671
1,556,312
2,152,555

1,656,554
2,315,671
1,556,312
2,152,555

Loan notes are interest free and repayable by 10 equal annual instalments.
The bank loan is repayable by monthly instalments over 15 years with interest being charged at 2.75% per annum over the Bank of England base rate.

Page 38

 
STUDLEY ENTERPRISE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

21.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Amounts falling due within one year

Bank loans
47,221
48,448
-
-

Loan notes 2030
1,153,846
1,153,846
1,153,846
1,153,846


1,201,067
1,202,294
1,153,846
1,153,846

Amounts falling due 1-2 years

Bank loans
50,732
50,024
-
-

Loan notes 2030
1,109,467
1,109,467
1,109,467
1,109,467


1,160,199
1,159,491
1,109,467
1,109,467

Amounts falling due 2-5 years

Bank loans
177,953
162,751
-
-

Loan notes 2030
3,078,873
3,078,873
3,078,873
3,078,873


3,256,826
3,241,624
3,078,873
3,078,873

Amounts falling due after more than 5 years

Bank loans
100,242
163,116
-
-

Loan notes 2030
1,556,312
2,152,555
1,556,312
2,152,555

1,656,554
2,315,671
1,556,312
2,152,555

7,274,646
7,919,080
6,898,498
7,494,741


Page 39

 
STUDLEY ENTERPRISE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

22.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2023
2022
£
£

Within one year
15,912
-

Between 1-5 years
58,344
-

74,256
-


23.


Financial instruments

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Financial assets

Financial assets measured at fair value through profit or loss
1,473,598
1,681,433
409,516
9,709




Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.


24.


Deferred taxation


Group



2023


£






At beginning of year
18,350


Charged to profit or loss
(292,825)



At end of year
(274,475)

Page 40

 
STUDLEY ENTERPRISE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
 
24.Deferred taxation (continued)

Group
Group
2023
2022
£
£

Accelerated capital allowances
(5,488)
13,226

On revalued leasehold property
(273,419)
-

Short term timing differences
4,432
5,124

(274,475)
18,350


25.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



25,000 (2022 - 25,000) A Ordinary shares of £1.00 each
25,000
25,000
25,000 (2022 - 25,000) B Ordinary shares of £1.00 each
25,000
25,000

50,000

50,000



26.


Reserves

Revaluation reserve

The revaluation reserve represents the increase from historic cost for leasehold property.

Capital contribution reserves

This reserve is the difference between the initial nominal value of interest free loan notes issued to individuals connected to shareholders and the initial discounted value of the loan notes using market rate of interest.

Profit and loss account

This reserve includes all current and prior period retained profits and losses.


27.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund. Contributions totalling £42,654 (2022 - £46,025) were payable to the fund at the reporting date and are included in creditors.

Page 41

 
STUDLEY ENTERPRISE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

28.


Commitments under operating leases

At 31 March 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£
£

Not later than 1 year
68,302
61,126

Later than 1 year and not later than 5 years
91,553
65,519

159,855
126,645

29.


Related party transactions

The company has taken advantage of the exemption under paragraph 33.1A of FRS 102 and has not disclosed transactions with other wholly owned group companies.


2023
2022
£
£

 
Sales to a company under common control
2,087
2,092
 
Purchases from a company under common control
18,933
11,989
 
Management charge to company under common control
64,714
61,168
 
Amount due to company under common control
251,325
107,534
337,059
182,783

During the period ended 31 March 2021, £12,000,000 loan notes 2030 were issued to individuals connected to shareholders. As at 31 March 2023 £8,000,000 (2022 - £8,800,000) loan notes 2030 remained outstanding.


30.


Controlling party

The company is not controlled by any one individual or family.

 
Page 42