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Registration number: 02600814

Archway Engineering (U.K.) Limited

Unaudited Filleted Financial Statements

for the Year Ended 30 April 2023

 

Archway Engineering (U.K.) Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 10

 

Archway Engineering (U.K.) Limited

Company Information

Directors

Mr Ian Ashley Jackson

Dr Robin G Arak

Registered office

Ainleys Industrial Estate
Elland
West Yorkshire
HX5 9JP

 

Archway Engineering (U.K.) Limited

(Registration number: 02600814)
Balance Sheet as at 30 April 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

5

1,056,343

1,048,117

Current assets

 

Stocks

6

1,640,922

1,521,295

Debtors

7

573,538

740,004

Cash at bank and in hand

 

924,924

1,378,006

 

3,139,384

3,639,305

Creditors: Amounts falling due within one year

8

(206,880)

(666,925)

Net current assets

 

2,932,504

2,972,380

Total assets less current liabilities

 

3,988,847

4,020,497

Provisions for liabilities

(217,618)

(162,732)

Net assets

 

3,771,229

3,857,765

Capital and reserves

 

Called up share capital

3,000

3,000

Retained earnings

3,768,229

3,854,765

Shareholders' funds

 

3,771,229

3,857,765

 

Archway Engineering (U.K.) Limited

(Registration number: 02600814)
Balance Sheet as at 30 April 2023

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

Directors' responsibilities:

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

The directors acknowledge their 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.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 23 November 2023 and signed on its behalf by:
 

.........................................
Dr Robin G Arak
Director

 

Archway Engineering (U.K.) Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2023

1

General information

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

The address of its registered office is:
Ainleys Industrial Estate
Elland
West Yorkshire
HX5 9JP

These financial statements were authorised for issue by the Board on 23 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 smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

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.

Going concern

The financial statements have been prepared on a going concern basis.

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.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

 

Archway Engineering (U.K.) Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2023

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

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.

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

Freehold property

2% on cost

Improvements to property

2% on cost

Plant and machinery

20% on reducing balance

Fixtures and fittings

15% on reducing balance

Motor vehicles

25% on reducing balance

Computer equipment

33% on reducing balance

Goodwill

Goodwill, being the amounts paid in connection with the acquisition of a business in 1991, has been amortised evenly over its estimated useful life of twenty years.

 

Archway Engineering (U.K.) Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2023

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

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.

 

Archway Engineering (U.K.) Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2023

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.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 27 (2022 - 29).

 

Archway Engineering (U.K.) Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2023

4

Intangible assets

Goodwill
 £

Trademarks, patents and licenses
 £

Total
£

Cost or valuation

At 1 May 2022

140,550

2,000

142,550

At 30 April 2023

140,550

2,000

142,550

Amortisation

At 1 May 2022

140,550

2,000

142,550

At 30 April 2023

140,550

2,000

142,550

Carrying amount

At 30 April 2023

-

-

-

5

Tangible assets

Land and buildings
£

Improvements to property
£

Fixtures and fittings
£

Plant and machinery
£

Cost or valuation

At 1 May 2022

259,836

28,169

47,457

1,940,226

Additions

-

-

250

167,370

At 30 April 2023

259,836

28,169

47,707

2,107,596

Depreciation

At 1 May 2022

89,988

6,391

30,279

1,109,361

Charge for the year

5,197

563

2,614

150,763

At 30 April 2023

95,185

6,954

32,893

1,260,124

Carrying amount

At 30 April 2023

164,651

21,215

14,814

847,472

At 30 April 2022

169,848

21,778

17,178

830,865

 

Archway Engineering (U.K.) Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2023

Office equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 May 2022

9,060

50,457

2,335,205

Additions

2,915

-

170,535

At 30 April 2023

11,975

50,457

2,505,740

Depreciation

At 1 May 2022

7,976

43,093

1,287,088

Charge for the year

1,331

1,841

162,309

At 30 April 2023

9,307

44,934

1,449,397

Carrying amount

At 30 April 2023

2,668

5,523

1,056,343

At 30 April 2022

1,084

7,364

1,048,117

Included within the net book value of land and buildings above is £164,651 (2022 - £169,848) in respect of freehold land and buildings.
 

6

Stocks

2023
£

2022
£

Raw materials and consumables

151,921

187,220

Merchandise

30,610

28,286

Work in progress

21,039

20,400

Finished goods and goods for resale

1,437,352

1,285,389

1,640,922

1,521,295

7

Debtors

Current

2023
£

2022
£

Trade debtors

545,901

591,518

Prepayments

11,735

11,562

Other debtors

15,902

136,924

 

573,538

740,004

 

Archway Engineering (U.K.) Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2023

8

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

9

-

373,124

Trade creditors

 

65,540

189,608

Taxation and social security

 

126,381

83,095

Accruals and deferred income

 

10,824

16,963

Other creditors

 

4,135

4,135

 

206,880

666,925

Creditors: amounts falling due after more than one year

2023
£

2022
£

9

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Hire purchase contracts

-

373,124

10

Related party transactions

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

72,113

74,764

Contributions paid to money purchase schemes

1,311

1,284

73,424

76,048