REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
ENRX LTD |
PREVIOUSLY KNOWN AS |
EFD INDUCTION LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
ENRX LTD |
PREVIOUSLY KNOWN AS |
EFD INDUCTION LIMITED |
ENRX LTD (REGISTERED NUMBER: 01193252) |
PREVIOUSLY KNOWN AS EFD INDUCTION LIMITED |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the year ended 31 December 2022 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Statement of Comprehensive Income | 8 |
Balance Sheet | 9 |
Statement of Changes in Equity | 10 |
Cash Flow Statement | 11 |
Notes to the Cash Flow Statement | 12 |
Notes to the Financial Statements | 13 |
ENRX LTD |
PREVIOUSLY KNOWN AS EFD INDUCTION LIMITED |
COMPANY INFORMATION |
for the year ended 31 December 2022 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditors |
Seven Stars House |
1 Wheler Road |
Coventry |
CV3 4LB |
ENRX LTD (REGISTERED NUMBER: 01193252) |
PREVIOUSLY KNOWN AS EFD INDUCTION LIMITED |
STRATEGIC REPORT |
for the year ended 31 December 2022 |
The directors present their strategic report for the year ended 31 December 2022. |
REVIEW OF BUSINESS |
Overall, we are satisfied with the performance of the company during the year and with the year end financial position, as set out in the attached financial statements. |
PRINCIPAL RISKS AND UNCERTAINTIES |
As for many businesses of its size, the business environment in which the company operates continues to present risks and uncertainties. The key risk is considered to be bound up with the confidence in the sectors in which the company (and the wider group) operates in particular as well as the wider economy in general. |
These risks continue to be affected by the ongoing impact of the Covid-19 pandemic (see below). |
FUTURE DEVELOPMENTS AND GOING CONCERN |
Impact of Covid-19 and Brexit |
In spite of the restrictions arising from the impact of Covid-19 around the globe the company still managed to trade at a level that was largely on budget. Whilst budgets remain fairly cautious for 2023, the company still has a solid order book and management believe the company has the capacity to continue to trade profitably and generate sufficient cash flows to pay its debts as they fall due throughout 2023 and the foreseeable future. |
Management are of the opinion that the company is still relatively insulated against the risks posed by Brexit, following the agreement of terms between the UK and EU at the end of 2020. Management continue to believe the company has a well diversified product and service offering in terms of both the company's range and knowhow; and in the company's geographical markets, especially those beyond the EU. This diversity has again served the company well throughout 2022 as shown in the financial performance of the company and the prospects indicated by the order book going into 2023 and beyond. |
Furthermore, as a UK distributor within a Norwegian group, there is considered to be a reduced risk of adverse impacts on product lead times, or in product standards and development, arising from Brexit. |
That said, management are mindful both of the wider uncertainty and potential future volatility in trading conditions which may impact throughout 2023 and beyond. |
Nevertheless, management believe the company has the resilience to continue trading for the next 12 months and beyond. Accordingly, the financial statements have been prepared on a going concern basis. |
SECTION 172(1) STATEMENT |
Each director of the company continues to be mindful of their statutory duty to promote the success of the company for the benefit of the members as a whole, and in doing so having regard (amongst other matters) to those factors set out in section 172(1)(a)-(f) of the Companies Act 2006. |
Collectively, the board recognises how having regard to these and other relevant factors and stakeholder groups in their decision-making, contributes to the success of the company. Depending on the matter in question, the relevance of different stakeholder interests and other factors will inevitably vary and the board may have to make difficult decisions based on competing priorities which means that it may not always be possible to provide a favourable outcome for all stakeholders. |
ON BEHALF OF THE BOARD: |
16 November 2023 |
ENRX LTD (REGISTERED NUMBER: 01193252) |
PREVIOUSLY KNOWN AS EFD INDUCTION LIMITED |
REPORT OF THE DIRECTORS |
for the year ended 31 December 2022 |
The directors present their report with the financial statements of the company for the year ended 31 December 2022. |
CHANGE OF NAME |
The company passed a special resolution on 21 March 2023 changing its name from EFD Induction Limited to ENRX Ltd. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the manufacture and retailing of industrial electronic equipment. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 December 2022 will be £500,000 (2021: £600,000). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
ENGAGEMENT WITH EMPLOYEES |
The directors seek to foster an environment in which its employees can raise any issues in respect of business conduct at any time and look to ensure that any matters are dealt with in a transparent and fair way. |
ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
The company seeks to deal on a fair basis with its suppliers, customers and other stakeholders. Both directors and the wider management engage and communicate very regularly with these various stakeholders and terms of business are communicated in a transparent way. |
STATEMENT OF CORPORATE GOVERNANCE ARRANGEMENTS |
The directors ultimately take responsibility for the success of the company through setting the strategy of the company and providing entrepreneurial leadership, combined with regular management and review of the wider risks to the company and the employees and other management. Meetings are held regularly to ensure that this process is ongoing. |
STREAMLINED ENERGY AND CARBON REPORTING |
The company has used HM Governmental Environmental Reporting Guidelines including Streamlined Energy and Reporting guidance. |
Energy source |
Consumption |
Scope |
Conversion rate |
Emissions calculator (2022) |
Emissions calculator (2021) |
Gas | 168,995 kWh | Scope 1 | 0.18254 | 30,848kg CO2e | 49,721kg CO2e |
Electricity | 113,383 kWh | Scope 2 | 0.19338 | 21,926kg CO2e | 22,575kg CO2e |
Total Scope 1 and 2 Gross emissions (all location based) | 52,774kg CO2e | 72,296kg CO2e |
Equivalent expressed as tonnes of CO2e (tCO2e) | 52,774 tCO2e | 72,296 tCO2e |
Carbon intensity ratio (tCO2e per £m turnover) | 12,389 tCO2e | 18.565 tCO2e |
Energy consumption used to calculate the above emissions (kWh) | 282,378 | 389,130 |
ENRX LTD (REGISTERED NUMBER: 01193252) |
PREVIOUSLY KNOWN AS EFD INDUCTION LIMITED |
REPORT OF THE DIRECTORS |
for the year ended 31 December 2022 |
The company will seek to reduce consumption in future years through the use of smart meters, amongst other strategies. |
DISCLOSURE IN THE STRATEGIC REPORT |
Information on the company's review of the business, principal risks and uncertainties and future developments is not shown in the directors' report as it is shown in the strategic report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the 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). 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; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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. |
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 |
ENRX LTD |
PREVIOUSLY KNOWN AS EFD INDUCTION LIMITED |
Opinion |
We have audited the financial statements of ENRX Ltd (the 'company') for the year ended 31 December 2022 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 December 2022 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 Strategic Report and 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 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 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 |
ENRX LTD |
PREVIOUSLY KNOWN AS EFD INDUCTION 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 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, 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. |
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 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. |
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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
The audit process includes an assessment of the entity's risk environment, through enquiry of and discussion with management, including an assessment of any key laws and regulations with which the company must comply in the ordinary course of its business. |
Additionally, the overall risks of irregular transactions occurring are assessed following our observations and confirmation of the design and implementation of management's controls. Whilst we are mindful of these risks, our audit focus is geared towards the risk of material misstatement in the financial statements as a whole. |
As such, our procedures cannot guarantee that all transactions have been fully compliant with all relevant laws and regulations, including those regulations relating to fraud, as our procedures are not designed to detect all instances of non-compliance. By definition, the risk of our detection of non-compliance is greater where compliance with a law or regulation is removed from the events and transactions reflected in the financial statements. The risk is also greater regarding irregularities due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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 |
ENRX LTD |
PREVIOUSLY KNOWN AS EFD INDUCTION 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 |
Chartered Accountants and Statutory Auditors |
Seven Stars House |
1 Wheler Road |
Coventry |
CV3 4LB |
ENRX LTD (REGISTERED NUMBER: 01193252) |
PREVIOUSLY KNOWN AS EFD INDUCTION LIMITED |
STATEMENT OF COMPREHENSIVE |
INCOME |
for the year ended 31 December 2022 |
2022 | 2021 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
PROFIT BEFORE TAXATION |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
ENRX LTD (REGISTERED NUMBER: 01193252) |
PREVIOUSLY KNOWN AS EFD INDUCTION LIMITED |
BALANCE SHEET |
31 December 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
CURRENT ASSETS |
Stocks | 9 |
Debtors | 10 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 11 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 13 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 14 |
Retained earnings | 15 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
ENRX LTD (REGISTERED NUMBER: 01193252) |
PREVIOUSLY KNOWN AS EFD INDUCTION LIMITED |
STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 December 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
ENRX LTD (REGISTERED NUMBER: 01193252) |
PREVIOUSLY KNOWN AS EFD INDUCTION LIMITED |
CASH FLOW STATEMENT |
for the year ended 31 December 2022 |
2022 | 2021 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
1,122,021 |
Cash and cash equivalents at end of year | 2 | 941,547 | 760,218 |
ENRX LTD (REGISTERED NUMBER: 01193252) |
PREVIOUSLY KNOWN AS EFD INDUCTION LIMITED |
NOTES TO THE CASH FLOW STATEMENT |
for the year ended 31 December 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2022 | 2021 |
£ | £ |
Profit before taxation |
Depreciation charges |
Finance income | (8,843 | ) | (87 | ) |
671,512 | 674,552 |
Decrease in stocks |
Decrease/(increase) in trade and other debtors | ( |
) |
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations |
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 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 941,547 | 760,218 |
Year ended 31 December 2021 |
31.12.21 | 1.1.21 |
£ | £ |
Cash and cash equivalents | 760,218 | 1,122,021 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.22 | Cash flow | At 31.12.22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 760,218 | 181,329 | 941,547 |
760,218 | 941,547 |
Total | 760,218 | 181,329 | 941,547 |
ENRX LTD (REGISTERED NUMBER: 01193252) |
PREVIOUSLY KNOWN AS EFD INDUCTION LIMITED |
NOTES TO THE FINANCIAL STATEMENTS |
for the year ended 31 December 2022 |
1. | STATUTORY INFORMATION |
ENRX Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year. |
Significant judgements and estimates |
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
Accounting estimates: |
i) Inventory provisioning |
The company holds fairly significant levels of inventory at any point, including spare parts the demand for which can be unpredictable. Thus, it is necessary that the company holds stocks of items which may not have been issued for some time. To address the risk that such stock may in fact be obsolete, management make appropriate provisions to reflect this. |
ii) Impairment of debtors |
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management consider factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. |
Accounting judgements: |
iii) Operating leases |
The company utilises assets which it does not own and pays for on an ongoing basis. In making the judgement as to whether such arrangements constitute finance leases or operating leases, management have assessed where the substantial risk and rewards of the ownership of the assets fall, and assessed that the counter-party, rather than the company, bears substantially all of the risks and rewards of ownership of the assets. |
ENRX LTD (REGISTERED NUMBER: 01193252) |
PREVIOUSLY KNOWN AS EFD INDUCTION LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Turnover and revenue recognition |
Turnover comprises the value of sales (net of value added tax) of goods and services provided in the normal course of business. The company recognises revenue when it can be measured reliably, when it is probable that future economic benefits will flow to the company and when specific criteria have been met for each of the company’s activities described below. |
Sale of goods: |
The company manufactures and distributes a range of parts and machinery for induction heating purposes in a number of different industries. Sales of goods are recognised when the company has delivered the goods to the customer and no other significant obligation remains unfulfilled that may affect the customer’s acceptance of the products. |
Servicing and manufacturing contracts: |
The company produces customised machinery for induction heating and provides servicing contracts for such machinery. When the outcome of a servicing or manufacturing contract can be estimated reliably in terms of its stage of completion, future costs to complete and collectability of billings, the company recognises revenue and expenses on the contract by reference to the stage of completion of the contract activity at the end of the reporting period. The stage of completion is determined on the basis of the proportion of the contract costs incurred to date over the estimated total costs. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Tangible fixed assets are carried at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost of raw materials stock is calculated on a weighted average basis. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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 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. |
ENRX LTD (REGISTERED NUMBER: 01193252) |
PREVIOUSLY KNOWN AS EFD INDUCTION LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
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 company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Financial instruments |
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2022 | 2021 |
£ | £ |
An analysis of turnover by geographical market is given below: |
2022 | 2021 |
£ | £ |
UK | 2,586,809 | 2,233,140 |
Overseas markets | 1,670,655 | 1,661,004 |
4. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
ENRX LTD (REGISTERED NUMBER: 01193252) |
PREVIOUSLY KNOWN AS EFD INDUCTION LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2022 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2022 | 2021 |
Administration | 2 | 2 |
Production | 24 | 24 |
2022 | 2021 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
2022 | 2021 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Auditors' remuneration |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax |
Adjustment re previous year | - | 64 |
Total current tax |
Deferred tax | ( |
) |
Tax on profit |
UK corporation tax has been charged at 19% (2021 - 19%). |
ENRX LTD (REGISTERED NUMBER: 01193252) |
PREVIOUSLY KNOWN AS EFD INDUCTION LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2022 |
6. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2022 | 2021 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2021 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Adjustments to tax charge in respect of previous periods |
Total tax charge | 124,315 | 122,109 |
During the year the UK corporation tax rate remained at 19%. |
Following the latest announcements, pledges were made to keep the main rate at 19% up to April 2023, after which the main rate is set to rise to 25%. |
7. | DIVIDENDS |
2022 | 2021 |
£ | £ |
Ordinary shares shares of £1 each |
Interim |
8. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and |
machinery | fittings | Totals |
£ | £ | £ |
COST |
At 1 January 2022 |
Additions |
At 31 December 2022 |
DEPRECIATION |
At 1 January 2022 |
Charge for year |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
ENRX LTD (REGISTERED NUMBER: 01193252) |
PREVIOUSLY KNOWN AS EFD INDUCTION LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2022 |
9. | STOCKS |
2022 | 2021 |
£ | £ |
Raw materials |
Work-in-progress |
An impairment loss of £14,096 (2021- £6,219) was recognised in cost of sales against stock during the year due to changes in slow moving and obsolete stock. |
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
All debtors are financial assets that are basic debt instruments measured at amortised cost. |
An impairment loss of £11,117 (2021 - £42,778) was recognised against trade debtors. |
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
VAT | 135 | 36,174 |
Other creditors |
All short term creditors are basic financial liabilities measured at amortised cost. |
12. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2022 | 2021 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
ENRX LTD (REGISTERED NUMBER: 01193252) |
PREVIOUSLY KNOWN AS EFD INDUCTION LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2022 |
13. | PROVISIONS FOR LIABILITIES |
2022 | 2021 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 10,855 | 12,889 |
Deferred |
tax |
£ |
Balance at 1 January 2022 |
Credit to Statement of Comprehensive Income during year | ( |
) |
Balance at 31 December 2022 |
14. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary shares | £1 | 75,000 | 75,000 |
Preference shares | £1 | 50,000 | 50,000 |
125,000 | 125,000 |
The holders of the ordinary shares are entitled to receive dividends of such amounts (if any) as may from time to time be resolved by the directors (in the case of an interim dividend) or by the company in general meeting (in the case of a final dividend). The holders of the preference shares are not entitled to receive any dividend. |
The holders of ordinary shares have one vote each. The holders of preference shares have no right to receive notice of or to attend or vote at any general meeting. |
The company has the right by notice served in writing on the preference shareholders to redeem all of the preference shares at any time at par. |
On a winding up of the company the preference shareholders have a right to receive, in preference to payments to ordinary shareholders, £1 per share. |
15. | RESERVES |
Retained |
earnings |
£ |
At 1 January 2022 |
Profit for the year |
Dividends | ( |
) |
At 31 December 2022 |
Retained earnings includes all current and prior period retained profits and losses. |
ENRX LTD (REGISTERED NUMBER: 01193252) |
PREVIOUSLY KNOWN AS EFD INDUCTION LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2022 |
16. | PENSION COMMITMENTS |
During the year under review the company made pension contributions of £32,989 (2021 - 32,823). As at the year end there were £Nil (2021 - £Nil) accrued or prepaid contributions. |
17. | ULTIMATE PARENT COMPANY |
The company's immediate parent company is EFD ASA, a company incorporated in Norway. The company's ultimate parent company is Arendals Fossekompani ASA, a company listed on the Oslo stock exchange. |
The largest group in which the results of the company are consolidated is that headed by Arendals Fossekompani ASA. The consolidated financial statements of Arendals Fossekompani ASA are freely available to the public at www.arendalsfoss.no |
18. | CONTINGENT LIABILITIES |
The company's bankers have given a guarantee on behalf of the company in favour of HMRC for £30,000 (2021 - £30,000). |
19. | RELATED PARTY DISCLOSURES |
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. |
During the year, a total of key management personnel compensation of £ |
20. | CONTROLLING INTEREST |
The company is controlled by its ultimate parent company, Arendals Fossekompani ASA. |