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Registration number: 05041328

Handcraft Manufacturing Limited

Annual Report and Unaudited Financial Statements

for the Period from 1 January 2023 to 30 June 2023

 

Handcraft Manufacturing Limited

Contents

Company Information

1

Director's Report

2

Accountants' Report

3

Balance Sheet

4

Notes to the Unaudited Financial Statements

5 to 10

 

Handcraft Manufacturing Limited

Company Information

Director

Mr David Alan Dodd

Registered office

9-11 Denington Road
Denington Industrial Estate
Wellingborough
Northamptonshire
NN8 2QH

Accountants

Pattinsons Business Services Ltd
Unit 8 The Courtyard
Goldsmith Way
Eliot Business Park
Nuneaton
Warwickshire
CV10 7RJ

 

Handcraft Manufacturing Limited

Director's Report for the Period from 1 January 2023 to 30 June 2023

The director presents his report and the financial statements for the period from 1 January 2023 to 30 June 2023.

Director of the company

The director who held office during the period was as follows:

Mr David Alan Dodd

Principal activity

The principal activity of the company is that of the manufacture of cabinets.

Small companies provision statement

This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved by the director on 2 November 2023 and signed on its behalf by:

.........................................
Mr David Alan Dodd
Director

 

Accountants' Report to the Director on the Preparation of the Unaudited Statutory Accounts of
Handcraft Manufacturing Limited
for the Period Ended 30 June 2023

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Handcraft Manufacturing Limited for the period ended 30 June 2023 as set out on pages 4 to 10 from the company's accounting records and from information and explanations you have given us.

This report is made solely to the Board of Directors of Handcraft Manufacturing Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of Handcraft Manufacturing Limited and state those matters that we have agreed to state to the Board of Directors of Handcraft Manufacturing Limited, as a body. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Handcraft Manufacturing Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Handcraft Manufacturing Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Handcraft Manufacturing Limited. You consider that Handcraft Manufacturing Limited is exempt from the statutory audit requirement for the period.

We have not been instructed to carry out an audit or a review of the accounts of Handcraft Manufacturing Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

......................................

Pattinsons Business Services Ltd
Unit 8 The Courtyard
Goldsmith Way
Eliot Business Park
Nuneaton
Warwickshire
CV10 7RJ

2 November 2023

 

Handcraft Manufacturing Limited

(Registration number: 05041328)
Balance Sheet as at 30 June 2023

Note

2023
£

2022
As restated
£

Fixed assets

 

Tangible assets

4

613,048

760,645

Current assets

 

Stocks

6

389,316

450,319

Debtors

7

598,497

616,694

Cash at bank and in hand

 

88,722

50,166

 

1,076,535

1,117,179

Creditors: Amounts falling due within one year

8

(1,054,838)

(1,139,069)

Net current assets/(liabilities)

 

21,697

(21,890)

Total assets less current liabilities

 

634,745

738,755

Creditors: Amounts falling due after more than one year

8

(310,956)

(469,003)

Provisions for liabilities

(148,622)

(117,288)

Net assets

 

175,167

152,464

Capital and reserves

 

Called up share capital

9

10,006

10,006

Retained earnings

165,161

142,458

Shareholders' funds

 

175,167

152,464

For the financial period ending 30 June 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the period in question in accordance with section 476; and

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the director on 2 November 2023
 

.........................................
Mr David Alan Dodd
Director

 

Handcraft Manufacturing Limited

Notes to the Unaudited Financial Statements for the Period from 1 January 2023 to 30 June 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales..

The address of its registered office is:
9-11 Denington Road
Denington Industrial Estate
Wellingborough
Northamptonshire
NN8 2QH
United Kingdom

These financial statements were authorised for issue by the director on 2 November 2023.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

Tax

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

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 operates and generates taxable income.

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

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

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

 

Handcraft Manufacturing Limited

Notes to the Unaudited Financial Statements for the Period from 1 January 2023 to 30 June 2023

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

15% Reducing balance method

Motor vehicles

15% Reducing balance method

Computer equipment

15% Reducing balance method

Leasehold improvements

20% Straight line method

Freehold property

10% Reducing balance method

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

 

Handcraft Manufacturing Limited

Notes to the Unaudited Financial Statements for the Period from 1 January 2023 to 30 June 2023

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

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

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks, other third parties and loans to related parties.

3

Staff numbers

The average number of persons employed by the company during the period, was 37 (2022 - 37).

 

Handcraft Manufacturing Limited

Notes to the Unaudited Financial Statements for the Period from 1 January 2023 to 30 June 2023

4

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Plant and machinery
£

Total
£

Cost or valuation

At 1 January 2023

287,920

13,555

360,069

1,042,318

1,703,862

Additions

-

500

5,200

-

5,700

Disposals

-

-

(117,140)

-

(117,140)

At 30 June 2023

287,920

14,055

248,129

1,042,318

1,592,422

Depreciation

At 1 January 2023

287,920

6,793

50,462

598,042

943,217

Charge for the period

-

526

15,489

33,321

49,336

Eliminated on disposal

-

-

(13,179)

-

(13,179)

At 30 June 2023

287,920

7,319

52,772

631,363

979,374

Carrying amount

At 30 June 2023

-

6,736

195,357

410,955

613,048

At 31 December 2022

-

6,762

309,607

444,276

760,645

 

Handcraft Manufacturing Limited

Notes to the Unaudited Financial Statements for the Period from 1 January 2023 to 30 June 2023

5

Profit before tax

Arrived at after charging/(crediting)

2023
£

2022
As restated
£

Depreciation expense

49,335

121,727

6

Stocks

2023
£

2022
As restated
£

Work in progress

126,522

195,189

Other inventories

262,794

255,130

389,316

450,319

7

Debtors

Note

2023
£

2022
As restated
£

Trade debtors

 

384,784

439,786

Amounts owed by parent undertakings

41,357

-

Prepayments

 

90,515

98,693

Other debtors

 

81,841

78,215

 

598,497

616,694

8

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
As restated
£

Due within one year

 

Bank loans and overdrafts

10

143,566

186,087

Trade creditors

 

537,870

475,532

Amounts owed to group undertakings and undertakings in which the company has a participating interest

-

2,735

Taxation and social security

 

143,858

143,841

Other creditors

 

229,544

330,874

 

1,054,838

1,139,069

Due after one year

 

Loans and borrowings

10

310,956

469,003

 

Handcraft Manufacturing Limited

Notes to the Unaudited Financial Statements for the Period from 1 January 2023 to 30 June 2023

9

Share capital

Allotted, called up and fully paid shares

 

2023

2022
As restated

 

No.

£

No.

£

Ordinary of £1 each

10,000

10,000

10,000

10,000

A Ordinary of £1 each

4

4

4

4

B Ordinary of £1 each

2

2

2

2

 

10,006

10,006

10,006

10,006

10

Loans and borrowings

2023
£

2022
As restated
£

Non-current loans and borrowings

Bank borrowings

91,591

131,072

Hire purchase contracts

219,365

337,931

310,956

469,003

2023
£

2022
As restated
£

Current loans and borrowings

Bank borrowings

79,776

89,431

Hire purchase contracts

63,790

96,656

143,566

186,087


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 entities within the group.