REGISTERED NUMBER: 08802876 (England and Wales) |
Carver Engineering Holdings Limited |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 March 2023 |
REGISTERED NUMBER: 08802876 (England and Wales) |
Carver Engineering Holdings Limited |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 March 2023 |
Carver Engineering Holdings Limited (Registered number: 08802876) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 March 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Statement of Directors' Responsibilities | 4 |
Report of the Independent Auditors | 5 |
Consolidated Statement of Comprehensive Income | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Financial Statements | 15 |
Carver Engineering Holdings Limited |
Company Information |
for the Year Ended 31 March 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
28 Prescott Street |
Halifax |
West Yorkshire |
HX1 2LG |
Carver Engineering Holdings Limited (Registered number: 08802876) |
Group Strategic Report |
for the Year Ended 31 March 2023 |
The directors present their strategic report of the company and the group for the year ended 31 March 2023. |
Carver Engineering Holdings Limited is an investment holding company. The principal activities of the trading subsidiaries of the group continue to be the general engineering and fabrication of steel products. The group's main activities can be organised into the following four divisions: |
Sales |
Mining sales |
Railwork |
General fabrications |
REVIEW OF BUSINESS |
We consider that our key financial performance indicators are those which communicate the financial performance and strength of the group as a whole, these being turnover, gross margin and return on capital employed. |
The turnover group by division was as follows: |
2023 | 2022 |
£'000 | £'000 |
Sales | 223 | 144 |
Mining sales | 89 | 75 |
Railwork | 11,119 | 5,665 |
General fabrications Highways | 1,164 121 | 1,651 2,648 |
12,716 | 10,184 |
The gross profit margin for the group is 20.75% (2022 - 25.55%) with a subsequent profit before tax of £1,158,137 (2022 - £1,309,439). |
The return on capital employed is 12.67% (2022 - 39.5%). Return on capital employed is calculated as profit before interest and taxation divided by capital employed, which comprises total assets less current liabilities. |
PRINCIPAL RISKS AND UNCERTAINTIES |
As for many other businesses of our size, the business environment in which we operate continues to be challenging. The market in which the organisation operates is highly specialised and influenced by both public spending within the UK infrastructure and continued spending in developing economies to which customers export mining equipment. |
With these risks and uncertainties in mind the group is aware that any plans for the future development of the business maybe subject to unforeseen future events outside of our control. |
ON BEHALF OF THE BOARD: |
Carver Engineering Holdings Limited (Registered number: 08802876) |
Report of the Directors |
for the Year Ended 31 March 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of a holding company. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 March 2023. |
DIVIDENDS PAID TO MINORITY INTERESTS |
During the year members of the Carver Engineering Holdings Limited group of companies paid dividends totalling £426,974 (2022 - £439,323) relating to shares held by minority interests within the group. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
DISCLOSURE IN THE STRATEGIC REPORT |
The business review and other mandatory disclosures which the directors consider to be of strategic importance are disclosed in the strategic report. |
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 group'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 group's auditors are aware of that information. |
AUDITORS |
The auditors, Lindley Adams Limited Chartered Accountants, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Carver Engineering Holdings Limited (Registered number: 08802876) |
Statement of Directors' Responsibilities |
for the Year Ended 31 March 2023 |
The directors are responsible for preparing the Group Strategic Report, 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 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Report of the Independent Auditors to the Members of |
Carver Engineering Holdings Limited |
Opinion |
We have audited the financial statements of Carver Engineering Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 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 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 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 group's and 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 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 Group Strategic Report, the Report of the Directors and the Statement of Directors' Responsibilities, 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Carver Engineering Holdings Limited |
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 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 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 directors' 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 Statement of Directors' Responsibilities set out on page four, 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 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 directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Carver Engineering Holdings 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. |
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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
As part of our audit, we determined a level for materiality and assessed the risk of material misstatement in the financial statements. Based on our understanding of the company and discussions with the management, we gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates. We identified the laws and regulations which we considered to have a direct effect on the financial statements and considered that the most significant are the Companies Act 2006, Financial Reporting Standards and UK tax legislation. |
The engagement partner assessed that the engagement team had the appropriate competence and capabilities to identify or recognise non-compliance with the laws and regulations. |
We enquired with management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations including fraud. We also designed specific appropriate audit procedures including: |
- Agreeing financial statement disclosures to supporting documentation. |
- Analytical procedures to identify any unusual or unexpected relationships. |
- Testing appropriateness of journal entries. |
- Review of accounting estimates for potential bias. |
- Enquire with management as to actual and potential litigation and claims. |
- Review of correspondence. |
We are not aware of any actual or suspected non-compliance with laws and regulations, and we are not responsible for preventing or detecting non-compliance with all laws and regulations. The primary responsibility for the prevention and detection of fraud rests with management and those charged with governance. |
There are inherent limitations in audit procedures and there is an unavoidable risk that we may not have detected material misstatements within the financial statements, even though the audit is properly planned and performed in accordance with ISA's UK. The further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. The risk of not detecting a material misstatement due to fraud is higher than the risk due to error as fraud may involve a deliberate concealment or collusion. |
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. |
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 |
28 Prescott Street |
Halifax |
West Yorkshire |
HX1 2LG |
Carver Engineering Holdings Limited (Registered number: 08802876) |
Consolidated |
Statement of Comprehensive |
Income |
for the Year Ended 31 March 2023 |
31.3.23 | 31.3.22 |
Notes | £ | £ |
TURNOVER | 3 | 12,716,692 | 10,184,536 |
Cost of sales | (10,077,916 | ) | (7,581,828 | ) |
GROSS PROFIT | 2,638,776 | 2,602,708 |
Administrative expenses | (1,516,968 | ) | (1,314,688 | ) |
1,121,808 | 1,288,020 |
Other operating income | 1,500 | - |
OPERATING PROFIT | 5 | 1,123,308 | 1,288,020 |
Interest receivable and similar income | 30,413 | 22,269 |
1,153,721 | 1,310,289 |
Interest payable and similar expenses | 6 | 4,416 | (850 | ) |
PROFIT BEFORE TAXATION | 1,158,137 | 1,309,439 |
Tax on profit | 7 | (216,317 | ) | (252,084 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 514,846 | 618,032 |
Non-controlling interests | 426,974 | 439,323 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
941,820 | 1,057,355 |
Carver Engineering Holdings Limited (Registered number: 08802876) |
Consolidated Balance Sheet |
31 March 2023 |
31.3.23 | 31.3.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 2,040 | 2,550 |
Tangible assets | 11 | 270,031 | 277,844 |
Investments | 12 | - | - |
272,071 | 280,394 |
CURRENT ASSETS |
Stocks | 13 | - | 64,314 |
Debtors | 14 | 5,330,796 | 6,271,048 |
Cash at bank and in hand | 915,554 | 1,053,762 |
6,246,350 | 7,389,124 |
CREDITORS |
Amounts falling due within one year | 15 | 2,719,774 | 4,408,744 |
NET CURRENT ASSETS | 3,526,576 | 2,980,380 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 3,798,647 | 3,260,774 |
CREDITORS |
Amounts falling due after more than one year | 16 | (20,392 | ) | (6,570 | ) |
PROVISIONS FOR LIABILITIES | 19 | (43,879 | ) | (44,673 | ) |
NET ASSETS | 3,734,376 | 3,209,531 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 543 | 275 |
Share premium | 21 | 5,072,920 | 5,063,189 |
Capital redemption reserve | 21 | 100 | 100 |
Retained earnings | 21 | (1,341,498 | ) | (1,856,344 | ) |
SHAREHOLDERS' FUNDS | 3,732,065 | 3,207,220 |
NON-CONTROLLING INTERESTS | 2,311 | 2,311 |
TOTAL EQUITY | 3,734,376 | 3,209,531 |
The financial statements were approved by the Board of Directors and authorised for issue on 25 October 2023 and were signed on its behalf by: |
T J Sheppard - Director |
Carver Engineering Holdings Limited (Registered number: 08802876) |
Company Balance Sheet |
31 March 2023 |
31.3.23 | 31.3.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT LIABILITIES | ( | ) | ( | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Share premium | 21 |
Capital redemption reserve | 21 |
Retained earnings | 21 | ( | ) | ( | ) |
SHAREHOLDERS' FUNDS |
Company's loss for the financial year | (7,581 | ) | (34 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
Carver Engineering Holdings Limited (Registered number: 08802876) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 March 2023 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 April 2021 | (4,414 | ) | (1,355,811 | ) | 5,063,189 |
Changes in equity |
Issue of share capital | 4,689 | - | - |
Dividends | - | (900,000 | ) | - |
Total comprehensive income | - | 399,467 | - |
Balance at 31 March 2022 | 275 | (1,856,344 | ) | 5,063,189 |
Changes in equity |
Issue of share capital | 268 | - | 9,731 |
Total comprehensive income | - | 514,846 | - |
Balance at 31 March 2023 | 543 | (1,341,498 | ) | 5,072,920 |
Capital |
redemption | Non-controlling | Total |
reserve | Total | interests | equity |
£ | £ | £ | £ |
Balance at 1 April 2021 | 100 | 3,703,064 | 2,311 | 3,705,375 |
Changes in equity |
Issue of share capital | - | 4,689 | - | 4,689 |
Dividends | - | (900,000 | ) | (439,323 | ) | (1,339,323 | ) |
Total comprehensive income | - | 399,467 | 439,323 | 838,790 |
Balance at 31 March 2022 | 100 | 3,207,220 | 2,311 | 3,209,531 |
Changes in equity |
Issue of share capital | - | 9,999 | - | 9,999 |
Dividends | - | - | (426,974 | ) | (426,974 | ) |
Total comprehensive income | - | 514,846 | 426,974 | 941,820 |
Balance at 31 March 2023 | 100 | 3,732,065 | 2,311 | 3,734,376 |
Carver Engineering Holdings Limited (Registered number: 08802876) |
Company Statement of Changes in Equity |
for the Year Ended 31 March 2023 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Issue of share capital | ( | ) | - | - | ( | ) |
Dividends | - | ( | ) | - | - | ( | ) |
Total comprehensive income | - | ( | ) | - | ( | ) |
Balance at 31 March 2022 | ( | ) |
Changes in equity |
Total comprehensive income | - | ( | ) | - | ( | ) |
Balance at 31 March 2023 | ( | ) |
Carver Engineering Holdings Limited (Registered number: 08802876) |
Consolidated Cash Flow Statement |
for the Year Ended 31 March 2023 |
31.3.23 | 31.3.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,908,321 | 90,215 |
Interest paid | (2 | ) | - |
Interest element of hire purchase payments paid | 4,418 | (850 | ) |
Tax paid | 151,402 | (269,117 | ) |
Net cash from operating activities | 2,064,139 | (179,752 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (84,574 | ) | (20,861 | ) |
Sale of tangible fixed assets | 9,999 | 11,833 |
Interest received | 30,413 | 22,269 |
Net cash from investing activities | (44,162 | ) | 13,241 |
Cash flows from financing activities |
Capital repayments in year | 16,953 | 19,036 |
Amount introduced by directors | 476,334 | 4,950 |
Amount withdrawn by directors | (911,973 | ) | (458,235 | ) |
Share issue | 268 | 4,689 |
Share buyback | - | (218,565 | ) |
Equity dividends paid | - | (900,000 | ) |
Dividends paid to minority interests | - | (439,323 | ) |
Net cash from financing activities | (418,418 | ) | (1,987,448 | ) |
Increase/(decrease) in cash and cash equivalents | 1,601,559 | (2,153,959 | ) |
Cash and cash equivalents at beginning of year | 2 | 1,053,762 | 189,263 |
Cash and cash equivalents at end of year | 2 | 915,554 | 1,053,762 |
Carver Engineering Holdings Limited (Registered number: 08802876) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 March 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.3.23 | 31.3.22 |
£ | £ |
Profit before taxation | 1,158,137 | 1,309,439 |
Depreciation charges | 77,708 | 77,873 |
Loss/(profit) on disposal of fixed assets | 5,188 | (3,007 | ) |
Government grants | (1,500 | ) | - |
Finance costs | (4,416 | ) | 850 |
Finance income | (30,413 | ) | (22,269 | ) |
1,204,704 | 1,362,886 |
Decrease/(increase) in stocks | 64,314 | (64,314 | ) |
Decrease/(increase) in trade and other debtors | 685,315 | (2,805,120 | ) |
(Decrease)/increase in trade and other creditors | (46,012 | ) | 1,596,763 |
Cash generated from operations | 1,908,321 | 90,215 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 915,554 | 1,053,762 |
Year ended 31 March 2022 |
31.3.22 | 1.4.21 |
£ | £ |
Cash and cash equivalents | 1,053,762 | 189,263 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.4.22 | Cash flow | At 31.3.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,053,762 | (138,208 | ) | 915,554 |
1,053,762 | (138,208 | ) | 915,554 |
Debt |
Finance leases | (19,036 | ) | (16,953 | ) | (35,989 | ) |
(19,036 | ) | (16,953 | ) | (35,989 | ) |
Total | 1,034,726 | (155,161 | ) | 879,565 |
Carver Engineering Holdings Limited (Registered number: 08802876) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 March 2023 |
1. | STATUTORY INFORMATION |
Carver Engineering Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The financial statements consolidate the financial statements of Carver Engineering Holdings Limited and all of its subsidiary undertakings. |
The results of subsidiaries acquired or disposed of during the period are included from or to the date that control passes. |
The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover in respect of contracts is recognised to the extent that it is probable that the economic benefits will flow to the group and the turnover can be reliably measured. Turnover is measured at fair value of the consideration received or receivable, excluding discounts and VAT. |
Where the outcome of a contract can be estimated reliably, contract revenue is recognised by reference to the stage of completion at each reporting date. Where the outcome of a contract cannot be estimated reliably, contract revenue is recognised to the extent that it is probable that it will be recoverable. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and equipment | - |
Motor vehicles | - |
Computer equipment | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Carver Engineering Holdings Limited (Registered number: 08802876) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Grants received |
Government and other grants are recognised in the financial statements when receivable. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
31.3.23 | 31.3.22 |
£ | £ |
Sales | 223,016 | 144,459 |
Mining Sales | 88,728 | 75,085 |
General Fabrication | 1,164,478 | 1,651,243 |
Railwork | 11,119,229 | 5,664,795 |
Highways | 121,241 | 2,648,954 |
12,716,692 | 10,184,536 |
Carver Engineering Holdings Limited (Registered number: 08802876) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
4. | EMPLOYEES AND DIRECTORS |
31.3.23 | 31.3.22 |
£ | £ |
Wages and salaries | 2,125,975 | 1,811,051 |
Social security costs | 217,928 | 174,505 |
Other pension costs | 45,217 | 46,176 |
2,389,120 | 2,031,732 |
The average number of employees during the year was as follows: |
31.3.23 | 31.3.22 |
Monthly |
31.3.23 | 31.3.22 |
£ | £ |
Directors' remuneration | 47,688 | 61,754 |
Directors' pension contributions to money purchase schemes | 7,530 | 13,171 |
Compensation to director for loss of office | 30,000 | - |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.3.23 | 31.3.22 |
£ | £ |
Equipment hire | 1,033,490 | 611,245 |
Other operating leases | 106,992 | 108,656 |
Depreciation - owned assets | 57,776 | 71,373 |
Depreciation - assets on hire purchase contracts | 19,424 | 5,990 |
Loss/(profit) on disposal of fixed assets | 5,188 | (3,007 | ) |
Computer software amortisation | 510 | 510 |
Auditors' remuneration | 15,750 | 17,343 |
Auditors' remuneration for non audit work | 11,550 | 350 |
Other non- audit services | 17,927 | 15,043 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.3.23 | 31.3.22 |
£ | £ |
Bank interest paid | 2 | - |
Hire purchase | (4,418 | ) | 850 |
(4,416 | ) | 850 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.3.23 | 31.3.22 |
£ | £ |
Current tax: |
UK corporation tax | 217,111 | 261,202 |
Deferred tax | (794 | ) | (9,118 | ) |
Tax on profit | 216,317 | 252,084 |
Carver Engineering Holdings Limited (Registered number: 08802876) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31.3.23 | 31.3.22 |
£ | £ |
Profit before tax | 1,158,137 | 1,309,439 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) | 220,046 | 248,793 |
Effects of: |
Expenses not deductible for tax purposes | 969 | 385 |
Income not taxable for tax purposes | - | (571 | ) |
Capital allowances in excess of depreciation | (6,774 | ) | - |
Depreciation in excess of capital allowances | - | 8,499 |
Utilisation of tax losses | (4,367 | ) | 6 |
Deferred tax | (794 | ) | (9,118 | ) |
S455 tax not recovered | - | 4,090 |
Losses carried back | 7,237 | - |
Total tax charge | 216,317 | 252,084 |
Tax effects relating to effects of other comprehensive income |
There were no tax effects for the year ended 31 March 2023. |
31.3.22 |
Gross | Tax | Net |
£ | £ | £ |
Company purchase of own shares | (218,565 | ) | - | (218,565 | ) |
8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
31.3.23 | 31.3.22 |
£ | £ |
Ordinary "A" shares of £1.00 each |
Interim | - | 900,000 |
Carver Engineering Holdings Limited (Registered number: 08802876) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Computer |
software |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 | 5,100 |
AMORTISATION |
At 1 April 2022 | 2,550 |
Amortisation for year | 510 |
At 31 March 2023 | 3,060 |
NET BOOK VALUE |
At 31 March 2023 | 2,040 |
At 31 March 2022 | 2,550 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Plant and | and | Motor | Computer |
machinery | equipment | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2022 | 802,379 | 286,820 | 128,310 | 47,359 | 1,264,868 |
Additions | 46,771 | 548 | 34,090 | 3,165 | 84,574 |
Disposals | (36,000 | ) | - | - | - | (36,000 | ) |
At 31 March 2023 | 813,150 | 287,368 | 162,400 | 50,524 | 1,313,442 |
DEPRECIATION |
At 1 April 2022 | 663,134 | 182,731 | 95,415 | 45,744 | 987,024 |
Charge for year | 42,708 | 15,695 | 16,747 | 2,050 | 77,200 |
Eliminated on disposal | (20,813 | ) | - | - | - | (20,813 | ) |
At 31 March 2023 | 685,029 | 198,426 | 112,162 | 47,794 | 1,043,411 |
NET BOOK VALUE |
At 31 March 2023 | 128,121 | 88,942 | 50,238 | 2,730 | 270,031 |
At 31 March 2022 | 139,245 | 104,089 | 32,895 | 1,615 | 277,844 |
Carver Engineering Holdings Limited (Registered number: 08802876) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 April 2022 | - | 42,653 | 42,653 |
Additions | 43,602 | 34,090 | 77,692 |
Transfer to ownership | - | (42,653 | ) | (42,653 | ) |
At 31 March 2023 | 43,602 | 34,090 | 77,692 |
DEPRECIATION |
At 1 April 2022 | - | 24,684 | 24,684 |
Charge for year | 10,901 | 8,523 | 19,424 |
Transfer to ownership | - | (24,684 | ) | (24,684 | ) |
At 31 March 2023 | 10,901 | 8,523 | 19,424 |
NET BOOK VALUE |
At 31 March 2023 | 32,701 | 25,567 | 58,268 |
At 31 March 2022 | - | 17,969 | 17,969 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 11 Brunel Close, Brunel Industrial Estate, Blythe Road, Doncaster, DN11 8QA |
Nature of business: |
% |
Class of shares: | holding |
31.3.23 | 31.3.22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Carver Engineering Holdings Limited (Registered number: 08802876) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
Registered office: 11 Brunel Close, Brunel Industrial Estate, Blythe Road, Doncaster, DN11 8QA |
Nature of business: |
% |
Class of shares: | holding |
31.3.23 | 31.3.22 |
£ | £ |
Aggregate capital and reserves |
(Loss)/profit for the year | ( | ) |
13. | STOCKS |
Group |
31.3.23 | 31.3.22 |
£ | £ |
Stocks | - | 64,314 |
14. | DEBTORS |
Group | Company |
31.3.23 | 31.3.22 | 31.3.23 | 31.3.22 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 1,297,656 | 1,762,806 |
Amounts owed by group undertakings | 2,518 | 983,563 |
Amounts recoverable on contract | 2,374,879 | 1,232,250 |
Other debtors | 487,105 | 668,818 |
Directors' loan accounts | 885,878 | 453,285 | 884,648 | - |
Tax | 7,501 | 508,778 |
VAT | 156,625 | 237,987 |
Prepayments | 118,634 | 75,724 |
5,330,796 | 5,923,211 |
Amounts falling due after more than one | year: |
Tax | - | 347,837 |
Aggregate amounts | 5,330,796 | 6,271,048 |
Carver Engineering Holdings Limited (Registered number: 08802876) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.3.23 | 31.3.22 | 31.3.23 | 31.3.22 |
£ | £ | £ | £ |
Hire purchase contracts (see note 17) | 15,597 | 12,466 |
Trade creditors | 1,568,904 | 1,669,373 |
Amounts owed to group undertakings | 824,891 | 1,990,379 |
Tax | 124,349 | 604,950 |
Social security and other taxes | 60,980 | 55,670 |
Other creditors | 37,303 | 8,822 |
Accruals and deferred income | 83,469 | 62,164 |
Accrued expenses | 4,281 | 4,920 |
2,719,774 | 4,408,744 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
31.3.23 | 31.3.22 |
£ | £ |
Hire purchase contracts (see note 17) | 20,392 | 6,570 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
31.3.23 | 31.3.22 |
£ | £ |
Gross obligations repayable: |
Within one year | 16,137 | 12,511 |
Between one and five years | 20,392 | 6,570 |
36,529 | 19,081 |
Finance charges repayable: |
Within one year | 540 | 45 |
Net obligations repayable: |
Within one year | 15,597 | 12,466 |
Between one and five years | 20,392 | 6,570 |
35,989 | 19,036 |
Group |
Non-cancellable operating | leases |
31.3.23 | 31.3.22 |
£ | £ |
Within one year | 17,802 | 17,119 |
Between one and five years | 17,802 | 12,653 |
35,604 | 29,772 |
Carver Engineering Holdings Limited (Registered number: 08802876) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
31.3.23 | 31.3.22 |
£ | £ |
Hire purchase contracts | 35,989 | 19,036 |
19. | PROVISIONS FOR LIABILITIES |
Group |
31.3.23 | 31.3.22 |
£ | £ |
Deferred tax | 43,879 | 44,673 |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2022 | 44,673 |
Unused amounts reversed during year | (794 | ) |
Balance at 31 March 2023 | 43,879 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.3.23 | 31.3.22 |
value: | £ | £ |
Ordinary "A" | £1.00 | 543 | 275 |
Ordinary "B" | £1.00 | - | - |
Ordinary "C" | £1.00 | - | - |
543 | 275 |
21. | RESERVES |
Group |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 April 2022 | (1,856,344 | ) | 5,063,189 | 100 | 3,206,945 |
Profit for the year | 514,846 | 514,846 |
Cash share issue | - | 9,731 | - | 9,731 |
At 31 March 2023 | (1,341,498 | ) | 5,072,920 | 100 | 3,731,522 |
Carver Engineering Holdings Limited (Registered number: 08802876) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
21. | RESERVES - continued |
Company |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 April 2022 | ( | ) | 5,060,236 |
Deficit for the year | ( | ) | ( | ) |
At 31 March 2023 | ( | ) | 5,052,655 |
22. | PENSION COMMITMENTS |
During the year the group made payments on behalf of its directors and employees to defined contribution schemes amounting to £45,217 (2022 - £46,176). |
23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 March 2023 and 31 March 2022: |
31.3.23 | 31.3.22 |
£ | £ |
J Molloy |
Balance outstanding at start of year | 331,879 | 312 |
Amounts advanced | 360,753 | 331,567 |
Amounts repaid | (331,879 | ) | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 360,753 | 331,879 |
P Molloy |
Balance outstanding at start of year | 329,931 | 240 |
Amounts advanced | - | 329,691 |
Amounts repaid | (359,931 | ) | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | (30,000 | ) | 329,931 |
T J Sheppard |
Balance outstanding at start of year | 434,043 | 260 |
Amounts advanced | 535,007 | 438,733 |
Amounts repaid | (443,926 | ) | (4,950 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 525,124 | 434,043 |
All loans with directors are repayable on demand. P Molloy resigned on 23 March 2022, however there remains a balance outstanding at year end. |
Carver Engineering Holdings Limited (Registered number: 08802876) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
24. | RELATED PARTY DISCLOSURES |
Entities with control, joint control or significant influence over the entity |
31.3.23 | 31.3.22 |
£ | £ |
Management charges | 156,000 | 234,000 |
Amount due from related parties | 654,131 | 1,095,853 |
Amount due to related party | 2,101,123 | - |
Other related parties |
31.3.23 | 31.3.22 |
£ | £ |
Rent charge | 88,960 | 85,305 |
25. | ULTIMATE CONTROLLING PARTY |
The group is considered to be under the control of its directors Mr T Sheppard and Mr J Molloy. |