Company Registration No. 00029196 (England and Wales)
THE WINGHAM ENGINEERING COMPANY LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
PAGES FOR FILING WITH REGISTRAR
THE WINGHAM ENGINEERING COMPANY LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 8
THE WINGHAM ENGINEERING COMPANY LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
28 FEBRUARY 2023
28 February 2023
- 1 -
2023
2022
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
3
174,832
137,472
Investments
4
5,000
5,000
179,832
142,472
Current assets
Inventories
61,391
57,319
Trade and other receivables
5
278,554
174,974
Cash and cash equivalents
67,328
77,724
407,273
310,017
Current liabilities
6
(220,199)
(163,466)
Net current assets
187,074
146,551
Total assets less current liabilities
366,906
289,023
Non-current liabilities
7
(1,023,500)
(821,104)
Provisions for liabilities
(25,300)
(20,500)
Net liabilities
(681,894)
(552,581)
Equity
Called up share capital
9
22,428
22,428
Retained earnings
(704,322)
(575,009)
Total equity
(681,894)
(552,581)
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 20 November 2023 and are signed on its behalf by:
Mr M McGuirk
Mr J D C Hambling
Director
Director
Company Registration No. 00029196
THE WINGHAM ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 2 -
1
Accounting policies
Company information
The Wingham Engineering Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hardys Yard, London Road, Riverhead, Sevenoaks, Kent, TN13 2DN.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
The Wingham Engineering Company Limited is a wholly owned subsidiary of Ramac Holdings (Trading) Limited and the results of The Wingham Engineering Company Limited are included in the consolidated financial statements of Ramac Holdings (Trading) Limited which are available from Companies House.
1.2
Going concern
At the reporting date, the company was in a net liability position. The directors have considered relevant information, including the company’s principal risks and uncertainties, the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, on the basis the company will continue to receive financial support from the parent company.true
Based on these assessments and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.
1.3
Revenue
Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
1.4
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
15% to 24% per annum on cost
Fixtures, fittings & equipment
24% per annum on cost
Motor vehicles
12% to 25% per annum on cost
THE WINGHAM ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 3 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Non-current investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in profit or loss. Transaction costs are expensed to profit or loss as incurred.
1.6
Impairment of non-current assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.7
Inventories
Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost 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.
1.8
Construction contracts
Profit on long term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording revenue and related costs as contract activity progresses. Revenue is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the year in which they are first foreseen.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
THE WINGHAM ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 4 -
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
All called up share capital is allotted and fully paid.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.
1.14
Retirement benefits
Defined contribution schemes
The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.
Defined benefit schemes
The pension costs charged against profits represent the amount of the contribution payable to a scheme operated by the parent undertaking in respect of the accounting period.
1.15
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.
1.16
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 8 (2022 - 7).
THE WINGHAM ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 5 -
3
Property, plant and equipment
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 March 2022
420,832
1,475
232,208
654,515
Additions
62,015
24,495
86,510
Disposals
(7,500)
(18,595)
(26,095)
At 28 February 2023
475,347
1,475
238,108
714,930
Depreciation and impairment
At 1 March 2022
326,134
1,475
189,434
517,043
Depreciation charged in the year
36,978
12,172
49,150
Eliminated in respect of disposals
(7,500)
(18,595)
(26,095)
At 28 February 2023
355,612
1,475
183,011
540,098
Carrying amount
At 28 February 2023
119,735
55,097
174,832
At 28 February 2022
94,698
42,774
137,472
4
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
5,000
5,000
5
Trade and other receivables
2023
2022
Amounts falling due within one year:
£
£
Trade receivables
69,035
94,979
Other receivables
209,519
79,995
278,554
174,974
THE WINGHAM ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 6 -
6
Current liabilities
2023
2022
£
£
Bank loans and overdrafts
31,357
22,574
Trade payables
155,209
105,401
Taxation and social security
4,460
10,254
Other payables
29,173
25,237
220,199
163,466
7
Non-current liabilities
2023
2022
£
£
Amounts owed to group undertakings
876,408
674,012
Other payables
147,092
147,092
1,023,500
821,104
Included within other payables are £147,092 (2022 - £147,092) of preference shares, which have no fixed redemption date and cannot be redeemed at the behest of the holder. Therefore the directors have classified the debt as due in more than five years.
Creditors which fall due after five years are as follows:
2023
2022
£
£
Payable other than by instalments
147,092
147,092
8
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
5,492
5,462
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £5,492 (2022 - £5,462).
Defined benefit schemes
The company contributed to a defined benefit pension scheme run by the parent company. The pension cost charge represents contributions payable by the company to the fund and amounted to £9,750 (2022 - £9,750).
THE WINGHAM ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 7 -
9
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
448,568 Ordinary shares of 5p each
22,428
22,428
Shares classified as debt
Issued and fully paid
3,495 7% Preference shares of £10 each
34,950
34,950
448,568 1% Non-cumulative 2nd preference shares of 25p each
112,142
112,142
147,092
147,092
Shares classified as debt
The 3,495 7% preference shares of £10 each carry the right to receive a cumulative preferential dividend at the rate of 7% per annum in priority to the payment of any dividend on the ordinary shares. They also carry the right, on the winding up of the company, to receive out of surplus assets of the company any arrears or deficiency of cumulative preferential dividend in priority to any distribution amongst the holders of the ordinary shares.
The 448,568 1% non-cumulative second preference shares of 25p each carry the right to a fixed non-cumulative preferential dividend at the rate of 1% per annum and the right in a winding up to the return of capital paid, subject to the rights of the holders of the 7% preference shares, but to no further participation in the profits or assets of the company.
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Christopher Reeves ACA FCCA.
The auditor was Carpenter Box.
Carpenter Box is a trading name of Carpenter Box Limited
11
Financial commitments, guarantees and contingent liabilities
The company has entered into a composite accounting agreement with Barclays Bank plc. The amount due under this agreement has been secured by way of cross guarantee with the parent undertaking, Ramac Holdings (Trading) Limited, and its fellow subsidiary undertakings.
The total exposure under this agreement at the year end was £1,016,985 (2022 - £881,194).
THE WINGHAM ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 8 -
12
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
2023
2022
£
£
Connected companies
9,216
89,354
9,216
89,354
Other information
In accordance with the requirements in Section 33.1A of FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland the company has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group.
13
Parent company
The ultimate parent company is Ramac Holdings (Trading) Limited by virtue of 100% shareholding in the company. The registered office and principal place of business is Hardys Yard, London Road, Riverhead, Sevenoaks, Kent, TN13 2DN.
2023-02-282022-03-01false23 November 2023CCH SoftwareCCH Accounts Production 2023.300No description of principal activityThis audit opinion is unqualifiedMr M McGuirkMr J D C HamblingMr J D C Hamblingfalse000291962022-03-012023-02-28000291962023-02-28000291962022-02-2800029196core:PlantMachinery2023-02-2800029196core:FurnitureFittings2023-02-2800029196core:MotorVehicles2023-02-2800029196core:PlantMachinery2022-02-2800029196core:FurnitureFittings2022-02-2800029196core:MotorVehicles2022-02-2800029196core:CurrentFinancialInstrumentscore:WithinOneYear2023-02-2800029196core:CurrentFinancialInstrumentscore:WithinOneYear2022-02-2800029196core:Non-currentFinancialInstrumentscore:AfterOneYear2023-02-2800029196core:Non-currentFinancialInstrumentscore:AfterOneYear2022-02-2800029196core:CurrentFinancialInstruments2023-02-2800029196core:CurrentFinancialInstruments2022-02-2800029196core:Non-currentFinancialInstruments2023-02-2800029196core:Non-currentFinancialInstruments2022-02-2800029196core:ShareCapital2023-02-2800029196core:ShareCapital2022-02-2800029196core:RetainedEarningsAccumulatedLosses2023-02-2800029196core:RetainedEarningsAccumulatedLosses2022-02-2800029196bus:Director12022-03-012023-02-2800029196bus:CompanySecretaryDirector12022-03-012023-02-2800029196core:PlantMachinery2022-03-012023-02-2800029196core:FurnitureFittings2022-03-012023-02-2800029196core:MotorVehicles2022-03-012023-02-28000291962021-03-012022-02-2800029196core:PlantMachinery2022-02-2800029196core:FurnitureFittings2022-02-2800029196core:MotorVehicles2022-02-28000291962022-02-2800029196core:WithinOneYear2023-02-2800029196core:WithinOneYear2022-02-2800029196bus:PrivateLimitedCompanyLtd2022-03-012023-02-2800029196bus:SmallCompaniesRegimeForAccounts2022-03-012023-02-2800029196bus:FRS1022022-03-012023-02-2800029196bus:Audited2022-03-012023-02-2800029196bus:Director22022-03-012023-02-2800029196bus:CompanySecretary12022-03-012023-02-2800029196bus:FullAccounts2022-03-012023-02-28xbrli:purexbrli:sharesiso4217:GBP