REGISTERED NUMBER: |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
STEVE WOODS LIMITED |
REGISTERED NUMBER: |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
STEVE WOODS LIMITED |
STEVE WOODS LIMITED (REGISTERED NUMBER: 03248226) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 31 March 2023 |
Page |
Company Information | 1 |
Report of the Directors | 2 |
Report of the Independent Auditors | 4 |
Income Statement | 8 |
Other Comprehensive Income | 9 |
Statement of Financial Position | 10 |
Statement of Changes in Equity | 11 |
Notes to the Financial Statements | 12 |
STEVE WOODS LIMITED |
COMPANY INFORMATION |
for the Year Ended 31 March 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Statutory Auditor |
Chartered Accountants |
Douglas Bank House |
Wigan Lane |
Wigan |
Lancashire |
WN1 2TB |
BANKERS: |
56 Market Street |
Chorley |
Lancashire |
PR7 2SD |
STEVE WOODS LIMITED (REGISTERED NUMBER: 03248226) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 March 2023 |
The directors present their report with the financial statements of the company for the year ended 31 March 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of supply, repair and installation of a wide range of excavator and bulldozer undercarriage parts. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 March 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company's operations expose it to a variety of financial risks that include the effects of changes in debt market prices, credit risk, liquidity risk and currency risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and related costs. |
The following areas are covered as part of the financial risk management |
Foreign currency risk |
The company is exposed to foreign currency risk as the majority of its purchases are made in US Dollars and Euros. However, this is partly mitigated by competitive prices offered by suppliers and also by monitoring exchange rate movements and forward buying currency where appropriate. |
Credit risk |
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Report of the Directors 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), including Financial Reporting Standard 101 'Reduced Disclosure Framework'. 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: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the 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. |
STEVE WOODS LIMITED (REGISTERED NUMBER: 03248226) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 March 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
STEVE WOODS LIMITED |
Opinion |
We have audited the financial statements of Steve Woods Limited (the 'company') for the year ended 31 March 2023 which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of 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 101 'Reduced Disclosure Framework' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 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 directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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. |
Opinions 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Report of the Directors has been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
STEVE WOODS LIMITED |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit; or |
- | the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
STEVE WOODS LIMITED |
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 a Report of the Auditors 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. |
Extent to which the audit was considered capable of detecting irregularities including fraud |
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 such irregularities is detailed below: |
- | We obtained an understanding of the company and the sector in which it operates in order to identify those laws and regulations that could reasonably be expected to have a direct effect on the financial statements or a fundamental effect on its operations. We obtained our understanding in this regard through discussions with management, industry research, application of cumulative audit knowledge and experience of the sector. the company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. |
- | We determined the principal laws and regulations relevant to the company in this regard to be those arising from FRS 101, the Companies Act 2006, GDPR and Health and Safety. |
- | We designed our audit procedures to ensure the audit team considered whether there were any indications of non-compliance by the company of those laws and regulations. These procedures included, but were not limited to enquiries of management, review of minutes and review of legal and regulatory correspondence. |
- | As in all of our audits, we addressed the risk of fraud arising from management override of controls by performing audit procedures which included, but was not limited to the testing of journals, reviewing accounting estimates for evidence of bias and evaluating the business rational of any significant transactions that were unusual or outside the normal course of business. |
Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of |
internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations. |
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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
STEVE WOODS LIMITED |
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 a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditor |
Chartered Accountants |
Douglas Bank House |
Wigan Lane |
Wigan |
Lancashire |
WN1 2TB |
STEVE WOODS LIMITED (REGISTERED NUMBER: 03248226) |
INCOME STATEMENT |
for the Year Ended 31 March 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
275,919 | 564,856 |
Other operating income | 5 | ( |
) | ( |
) |
OPERATING PROFIT |
Interest receivable and similar income |
68,129 | 532,167 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION | 8 |
Tax on profit | 9 |
PROFIT FOR THE FINANCIAL YEAR |
STEVE WOODS LIMITED (REGISTERED NUMBER: 03248226) |
OTHER COMPREHENSIVE INCOME |
for the Year Ended 31 March 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
STEVE WOODS LIMITED (REGISTERED NUMBER: 03248226) |
STATEMENT OF FINANCIAL POSITION |
31 March 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Owned |
Tangible assets | 11 | 1,669,189 | 1,659,531 |
Right-of-use |
Tangible assets | 11, 17 | 142,781 | 215,880 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Revaluation reserve |
Capital redemption reserve |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
STEVE WOODS LIMITED (REGISTERED NUMBER: 03248226) |
STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 March 2023 |
Called up | Capital |
share | Retained | Revaluation | redemption | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | ( |
) |
Balance at 31 March 2022 | 2,571,072 |
Changes in equity |
Total comprehensive income | - | ( |
) | - |
Balance at 31 March 2023 |
STEVE WOODS LIMITED (REGISTERED NUMBER: 03248226) |
NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 31 March 2023 |
1. | STATUTORY INFORMATION |
Steve Woods Limited is a |
The functional currency of the entity is £ sterling. |
The parent company is Kian Ann Engineering Pte Limited, a company registered in Singapore. |
The principal activity of the company continues to be that of the supply, repair and installation of a wide range of excavator and bulldozer undercarriage parts. |
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. |
2. | ACCOUNTING POLICIES |
Basis of preparation |
Impact of new international reporting standards, amendments and interpretations |
There are no amendments to accounting standards, or IFRIC interpretations that are effective for the financial year ended 31st March 2023 that have a material impact on the company's financial statements. |
The company has applied disclosure exemptions available in the standard in the following areas: |
- | IFRS 7 disclosures regarding financial instruments; |
- | IFRS 13 disclosures on fair values; |
- | IFRS 15 disclosures regarding revenue from contracts with customers; |
- | IFRS 16 disclosures regarding leases; |
- | IAS 1 requirement to disclose the company’s objectives, policies and processes for managing capital; |
- | IAS 1 requirement for full comparative information on property, plant and equipment and intangible assets; |
- | IAS 7 requirement to produce a statement of cash flows and related notes |
- | IAS 8 requirement to disclose information about the impact of standards not yet effective. |
- | IAS 24 requirements in respect of disclosing remuneration of key management personnel and intragroup transactions. |
Going concern |
After a thorough review of the future operations of the business it is the directors opinion that the preparation of the financial statements on a going concern basis remains appropriate. |
Turnover |
Revenue is earned from the supply, repair and installation of a wide range of excavator and bulldozer undercarriage parts (sale of goods) and is recognised at the point in time when the relevant performance obligation is satisfied, which is when the undercarriage parts have been delivered and legal title has passed. There are no contracts whose performance obligations are satisfied over time. |
Revenue is measured at the transaction price, being the fair value of the consideration received or receivable. The transaction price is reduced for customer rebates and other similar allowances. Payment is typically due within 30 days of delivery. |
STEVE WOODS LIMITED (REGISTERED NUMBER: 03248226) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Property, plant & equipment |
Property, plant and equipment consists of: |
- | Land & buildings held and used in the company's own activities for supply of goods or for administrative purposes - this class of asset is carried under the revaluation model. |
- | All other assets - these classes of assets are carried under the cost model. |
Revaluation model |
Land and buildings are stated at the revalued amounts less any depreciation or impairment losses subsequently accumulated (revaluation model). |
Revaluations are carried out every three years so that the carrying amounts approximate the fair value at the reporting date. An increase in value is credited to the revaluation reserve except to the extent that it reverses a previous revaluation decrease related to the same property that was recognised in profit or loss. Similarly, revaluation decreases are recognised in the revaluation reserves to the extent that they equal gains previously recognised in respect of the same asset. Thereafter any excess is recognised as an expense in profit or loss. |
Land is not depreciated. Depreciation on revalued buildings is recognised using the straight-line basis and results in the carrying amount, less the residual value, being expensed in profit or loss over the estimated useful lives of 50 years. |
No transfer is made from the revaluation reserve to retained earnings unless an asset is derecognised. When a revalued asset is sold or retired any remaining attributable revaluation surplus is transferred to retained earnings. |
Cost model |
All other assets are stated at cost less accumulated depreciation and accumulated impairment losses (cost model). |
Depreciation on plant and equipment is recognised using the straight-line basis and results in the carrying amount, less the residual value, being expensed in profit or loss over the estimated useful lives. The depreciation rate is 15% on cost. |
Depreciation on motor vehicles is recognised using the reducing balance basis and results in the carrying amount, less the residual value, being expensed in profit or loss over the estimated useful lives. The depreciation rate is 25% on reducing balance. |
Trade and other receivables |
Trade and other receivables where payment is due within one year do not constitute a financing transaction and are recorded at the undiscounted amount expected to be received, less attributable transaction costs. Any subsequent impairment is recognised as an expense in profit or loss. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash at bank and on hand and demand deposits with banks. |
Trade and other payables |
Trade and other payables are initially recognised at fair value less attributable transaction costs. All payables are due within one year. |
Derivative financial instruments |
The Company uses forward currency contracts to reduce its exposure to risks from foreign exchange movements. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. |
Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss. |
STEVE WOODS LIMITED (REGISTERED NUMBER: 03248226) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are stated at the lower of cost and net realisable value. Costs comprises of purchase price plus an allocation of carriage costs where applicable. |
Net realisable value is based on the estimated selling price less any estimated selling costs. |
When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. |
Current and deferred taxation |
The tax expense for the period comprises current and deferred taxation. |
Current tax |
Current tax is based on taxable profit for the year. Taxable profit differs from profit as reported for accounting purposes because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. |
Current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. A provision is recognised for tax matters that are uncertain if it is considered probable that there will be a future outflow of funds to a tax authority. The provision is measured at the best estimate of the amount expected to become payable. |
Deferred tax |
Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. |
The carrying amount of deferred tax assets is reviewed at each reporting 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. |
Foreign currency translation |
Functional and presentation currency |
The Company's functional and presentational currency is GBP. |
Transaction and balances |
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the date of the transactions. |
At each period end, foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated suing the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. |
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account except when deferred in other comprehensive income as qualifying cash flow hedges. |
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in the profit and loss account within 'other operating income'. |
STEVE WOODS LIMITED (REGISTERED NUMBER: 03248226) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Leases |
The company as a lessee |
At inception of a contract, the Company assesses whether a contract is, or contains a lease. The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Company recognises the lease payments as an operating expenses on a straight-line basis over the term of the lease. |
At the commencement date, the Company measures the lease liability at the present value of the lease |
payments unpaid at that date, discounted using the Company’s incremental borrowing rate because as the lease contracts are negotiated with third parties it is not possible to determine the interest rate that is implicit in the lease. The incremental borrowing rate is the estimated rate that the Company would have to pay to borrow the same amount over a similar term, and with similar security to obtain an asset of equivalent value. |
Lease payments included in the measurement of the lease liability are made up of fixed payments (including in substance fixed), variable payments based on an index or rate, amounts expected to be payable under a residual value guarantee and payments arising from options reasonably certain to be exercised. |
Subsequent to initial measurement, the liability will be reduced by lease payments that are allocated between repayments of principal and finance costs. The finance cost is the amount that produces a constant periodic rate of interest on the remaining balance of the lease liability. |
The lease liability is reassessed when there is a change in the lease payments. Changes in lease payments arising from a change in the lease term or a change in the assessment of an option to purchase a leased asset. The revised lease payments are discounted using the Company’s incremental borrowing rate at the date of reassessment when the rate implicit in the lease cannot be readily determined. The amount of the remeasurement of the lease liability is reflected as an adjustment to the carrying amount of the right-of-use asset. The exception being when the carrying amount of the right-of-use asset has been reduced to zero then any excess is recognised in profit or loss. |
The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses. |
Right of use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If the lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Company expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement of the lease. |
The company applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in the policy for Tangible fixed assets. |
Employee benefit costs |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate. |
STEVE WOODS LIMITED (REGISTERED NUMBER: 03248226) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Provisions for liabilities |
Provisions are made where n event has taken place that give the Company a legal or constructive obligation that probably require 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 period in which the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet 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 Balance Sheet. |
Borrowing costs |
All borrowing costs are recognised in profit or loss in the year in which they are incurred. |
3. | CRITICAL JUDGEMENTS AND ESTIMATES |
In applying the company's accounting policies, which are described in note 1, management is required to make: |
- | judgements (other than those involving estimations) that have a significant impact on the amounts recognised; and |
- | estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 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. |
The critical judgements and key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below. |
Bad debt provisions |
Management have reviewed the amounts owed to the company by its customers and have used their knowledge of the customer to assess the provision required against balances which may not be received. |
Stock provision |
The stock provision is determined by both reviewing the ageing of stock and the movement of stock in the current year. Management then use their knowledge and experience of customer requirements in order to make a provision against the stock valuation for any stock that is considered obsolete. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom |
Rest of the world |
STEVE WOODS LIMITED (REGISTERED NUMBER: 03248226) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2023 |
5. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Foreign exchange gain/l(oss) | (207,791 | ) | (32,691 | ) |
6. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 683,533 | 744,037 |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Management & Administration | 7 | 7 |
Warehouse & Workshop | 10 | 10 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest |
Mortgage interest | 32,876 | 22,283 |
Hire purchase interest | (2,182 | ) | 9,247 |
Finance lease interest |
Other interest | - | 960 |
8. | PROFIT BEFORE TAXATION |
The profit before taxation is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Cost of inventories recognised as expense |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts and finance leases |
Profit on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Auditors' remuneration for non audit work |
Foreign exchange(gain)/loss | 207,791 | 32,691 |
STEVE WOODS LIMITED (REGISTERED NUMBER: 03248226) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2023 |
9. | TAXATION |
Analysis of tax expense |
2023 | 2022 |
£ | £ |
Current tax: |
Tax |
Deferred tax | ( |
) |
Total tax expense in income statement |
Factors affecting the tax expense |
The tax assessed for the year is lower (2022 - higher) than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before income tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
3,770 |
93,383 |
Effects of: |
Expenses not deductible for tax purposes | 624 | 2,060 |
Other timing differences | 8 | (46 | ) |
in excess of depreciation |
Deferred taxation movement | (5,466 | ) | 22,824 |
Impact of depreciation in excess of capital allowances | 1,356 | 8,162 |
Tax expense |
Factors that may affect future tax charges |
Following the Budget announcement on 3 March 2021 the UK Corporation Tax rate (from 1 April 2023) will be 25% (for companies with profits over £250,000) and continue to be 19% (for companies with profits of £50,000 or less). Companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by a marginal relief providing a gradual increase in the effective Corporation Tax rate. The tax rate change was enacted in Finance Act 2021 on 24 May 2021. |
10. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Final |
Interim |
STEVE WOODS LIMITED (REGISTERED NUMBER: 03248226) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2023 |
11. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST OR VALUATION |
At 1 April 2022 |
Additions |
Disposals |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
Eliminated on disposal |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 April 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
STEVE WOODS LIMITED (REGISTERED NUMBER: 03248226) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Cost or valuation at 31 March 2023 is represented by: |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
Valuation in 2009 | 283,881 | - | - |
Cost | 1,594,552 | 617,930 | 57,889 |
1,878,433 | 617,930 | 57,889 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
Valuation in 2009 | - | - | 283,881 |
Cost | 261,493 | 39,615 | 2,571,479 |
261,493 | 39,615 | 2,855,360 |
If freehold land and buildings had not been revalued they would have been included at the following historical cost: |
2023 | 2022 |
£ | £ |
Cost | 1,594,552 | 1,594,552 |
Aggregate depreciation | 248,915 | 230,330 |
Value of land in freehold land and buildings | 365,314 | 365,314 |
Freehold land and buildings were valued on an open market basis on 31 May 2009 by Borron Shaw, Commercial Valuers . |
Land and buildings were valued in September 2021 by Parkinson Real Estate on a fair value basis. The valuation did not materially differ to the carrying value and no revaluation was therefore included in the financial statements. |
12. | STOCKS |
2023 | 2022 |
£ | £ |
Stocks |
Work-in-progress |
STEVE WOODS LIMITED (REGISTERED NUMBER: 03248226) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2023 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 16) |
Leases (see note 16) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
VAT | 161,035 | 205,664 |
Other creditors |
Directors' current accounts | 17,277 | 47,586 |
Accrued expenses |
Amounts owed to group undertakings are in respect of trade debt. The amounts are unsecured, interest free have no fixed date of repayment and are repayable on demand. |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 16) |
Leases (see note 16) |
16. | FINANCIAL LIABILITIES - BORROWINGS |
2023 | 2022 |
£ | £ |
Current: |
Bank overdrafts |
Mortgage account | 40,000 | 40,000 |
Leases (see note 17) | 48,648 | 75,326 |
STEVE WOODS LIMITED (REGISTERED NUMBER: 03248226) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2023 |
16. | FINANCIAL LIABILITIES - BORROWINGS - continued |
2023 | 2022 |
£ | £ |
Non-current: |
Mortgage | 1-2 years |
Leases (see note 17) | 62,514 | 110,866 |
Terms and debt repayment schedule |
1 year or | More than |
less | 1-2 years | 2-5 years | 5 years | Totals |
£ | £ | £ | £ | £ |
Bank overdrafts | - | - | - | 357,343 |
Mortgage account | 40,000 | 40,000 | 120,000 | 393,600 | 593,600 |
Leases | 48,648 | 40,282 | 22,232 | - | 111,162 |
80,282 | 142,232 | 393,600 | 1,062,105 |
The mortgage is secured by a fixed charge over the property, plant and equipment of the business. |
17. | LEASING |
Right-of-use assets |
Tangible fixed assets |
2023 | 2022 |
£ | £ |
COST |
At 1 April 2022 | 389,811 | 368,146 |
Additions | - | 21,665 |
Transfer to ownership | (79,507 | ) | - |
310,304 | 389,811 |
DEPRECIATION |
At 1 April 2022 | 173,931 | 114,331 |
Charge for year | 55,210 | 59,600 |
Transfer to ownership | (61,618 | ) | - |
167,523 | 173,931 |
NET BOOK VALUE | 142,781 | 215,880 |
STEVE WOODS LIMITED (REGISTERED NUMBER: 03248226) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2023 |
17. | LEASING - continued |
Lease liabilities |
Minimum lease payments fall due as follows: |
2023 | 2022 |
£ | £ |
Gross obligations repayable: |
Within one year | 53,599 | 85,880 |
Between one and five years | 68,616 | 121,919 |
122,215 | 207,799 |
Finance charges repayable: |
Within one year | 4,951 | 10,554 |
Between one and five years | 6,102 | 11,053 |
11,053 | 21,607 |
Net obligations repayable: |
Within one year | 48,648 | 75,326 |
Between one and five years | 62,514 | 110,866 |
111,162 | 186,192 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank overdrafts |
Bank loans |
Leases | 111,162 | 186,192 |
1,062,105 | 1,231,643 |
The bank facilities are secured by way of first legal charge over the company's freehold land and buildings and chattels. The bank also has a fixed and floating charge over the undertaking and all land and property. |
STEVE WOODS LIMITED (REGISTERED NUMBER: 03248226) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2023 |
19. | FINANCIAL INSTRUMENTS |
A significant proportion of the entities purchases are in foreign currencies. As a consequence, the entity uses foreign currency forward contracts to manage the foreign exchange of future transactions and their cash flows. The contracts are valued based on available market data. The entity does not adopt hedge accounting for forward exchange contracts, consequently, fair value gains and losses are recognised in profit and loss. |
At the year end, the outstanding foreign forward contracts that the entity had committed to are as follows: |
2023 | 2022 |
$ | $ |
Purchase US Dollars | 1,690,000 | - |
Change in Fair Value of Forward contracts |
2023 | 2022 |
£ | £ |
Agreed purchase price | 1,430,231 | - |
Current value of contracts | 1,362,903 | - |
Change in fair value of forward contracts | (67,327 | ) | - |
20. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax |
Deferred |
tax |
£ |
Balance at 1 April 2022 |
Credit to Income Statement during year | (5,466 | ) |
Balance at 31 March 2023 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 9,600 | 9,600 |
STEVE WOODS LIMITED (REGISTERED NUMBER: 03248226) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2023 |
22. | RESERVES |
Capital |
Retained | Revaluation | redemption |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 April 2022 | 2,783,417 |
Profit for the year | - | - |
Depreciation in respect of revaluation reserve |
5,678 |
(5,678 |
) |
- |
- |
At 31 March 2023 | 2,802,968 |
23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 31 March 2023 and 31 March 2022: |
2023 | 2022 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
The Directors loan account remained in credit throughout the year. |
24. | RELATED PARTY DISCLOSURES |
Kian Ann Engineering Pte Ltd, the parent company, has traded with Steve Woods Limited on normal commercial terms during this financial year. |
The value of the goods supplied was £1,490,943 (2022: £1,367,824). An amount of £1,334,289 (2022: £851,242) remained outstanding at the end of the financial period in respect of trade debt. |
The parent company was also owed £NIL (2022: £50,010) in respect of non-trade debt and dividends. |
All debts are shown as being repayable within one year. |
25. | ULTIMATE CONTROLLING PARTY |
The controlling party Kian Ann Engineering Pte Ltd is a company registered in Singapore. |
. |