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Sage Accounts Production Advanced 2023 - FRS102_2023
308,964
207,530
48,583
168,530
217,113
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COMPANY REGISTRATION NUMBER:
05649040
Year ended 31 March 2023
This report was approved by the board of directors on 10 November 2023 and signed on behalf of the board by:
Mr J Young |
D Haley |
Director |
Company Secretary |
|
|
Registered office: |
Newburn Bridge Road |
Blaydon-On-Tyne |
Tyne & Wear |
NE21 4SQ |
|
Year ended 31 March 2023
The directors present their report and the financial statements of the company for the year ended
31 March 2023
.
Principal activities
The principal activity of the company during the year was that of laser engineering services.
Directors
The directors who served the company during the year were as follows:
G Peel |
|
S Young |
|
Mr D Haley |
|
Mr J Young |
|
|
|
Dividends
Particulars of recommended dividends are detailed in note 11 to the financial statements.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report 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 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 judgments 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 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
-
so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on
10 November 2023
and signed on behalf of the board by:
Mr J Young |
D Haley |
Director |
Company Secretary |
|
|
Registered office: |
Newburn Bridge Road |
Blaydon-On-Tyne |
Tyne & Wear |
NE21 4SQ |
|
Independent Auditor's Report to the Members of
Express Lasers Limited |
|
Year ended 31 March 2023
Opinion
We have audited the financial statements of Express Lasers Limited (the 'company') for the year ended 31 March 2023 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, 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 FRS 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 March 2023 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 auditor's 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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 directors' report. We have nothing to report in respect of the following matters in relation to which 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 directors' responsibilities statement, 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 is 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.
Auditor's 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 an auditor’s report 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: Fraud and breaches of laws and regulations - ability to detect Identifying and responding to risks of material misstatement due to fraud To identify risks of material misstatement due to fraud ("fraud risks") we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included: - Enquiring of Directors, the Audit and Risk Committee, internal audit, compliance officers and inspection of policy documentation as to the Group's high-level policies and procedures to prevent and detect fraud, including the internal audit function, and the Group's channel for "whistleblowing", as well as whether they have knowledge of any actual, suspected or alleged fraud. - Reading Board and all relevant Committee minutes.- Considering remuneration incentive schemes (primarily the annual incentive plan) and performance targets for management and Directors, including underlying profit from operations targets for management remuneration. - Using analytical procedures to identify any unusual or unexpected relationships. We communicated identified fraud risk factors throughout the audit team and remained alert to any indications of fraud throughout the audit. This included communication from the Group component audit teams of relevant fraud risks identified at the Group level and request to component audit teams to report to the Group audit team any instances of fraud that could give rise to a material misstatement at the Group. As required by auditing standards, and taking into account possible pressures to meet profit targets and our overall knowledge of the control environment, we performed procedures to address the risk of management override of controls and the risk of fraudulent revenue recognition, in particular the risk that revenue earned from construction and support services is recorded in the wrong period and the risk that Group and component management may be in a position to make inappropriate accounting entries, and the risk of bias in accounting estimates and judgements such as the estimation of forecast costs and the recognition of variable consideration. On this audit we do not believe there is a fraud risk related to revenue recognition in the Infrastructure Investments segment based on the contractual nature of the segment's revenue with no significant judgement or estimation required in recognising revenue. We also performed procedures including: - Identifying journal entries and other adjustments to test for all full scope components based on specific risk-based criteria and comparing the identified entries to supporting documentation. These included those posted to unusual accounts, those posted by users who post journals infrequently and those with missing user identification; and - Assessing significant accounting estimates for bias. We discussed with the Audit and Risk Committee matters related to actual or suspected fraud, for which disclosure is not necessary, and considered any implications for our audit. Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, through discussion with the Directors and other management (as required by auditing standards), and from inspection of the Group's regulatory and legal correspondence and discussed with the Directors and other management the policies and procedures regarding compliance with laws and regulations. As the Group is regulated, our assessment of risks involved gaining an understanding of the control environment including the entity's procedures for complying with regulatory requirements. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. This included communication to audit teams of relevant laws and regulations identified at the Group level, and a request to report any instances of non-compliance with laws and regulations that could give rise to a material misstatement at the Group. The potential effect of these laws and regulations on the financial statements varies considerably. Firstly, the Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related company legislation), distributable profits legislation, and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Secondly, the Group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of the Group's license to operate. We identified the following areas as those most likely to have such an effect: health and safety, anti-bribery, employment law and environmental law. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. We discussed with the Audit and Risk Committee matters related to actual or suspected breaches of laws or regulations, for which disclosure is not necessary, and considered any implications for our audit. Context of the ability of the audit to detect fraud or breaches of law or regulation Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of fraud, as this may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 an auditor's report 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.
Jason Cheesman FCA |
(Senior Statutory Auditor) |
|
For and on behalf of |
Mitchells Limited |
Chartered accountants & statutory auditor |
Swallow House |
Parsons Road |
Washington |
Tyne & Wear |
NE37 1EZ |
|
10 November 2023
Statement of Income and Retained Earnings |
|
Year ended 31 March 2023
|
2023 |
2022 |
Note |
£ |
£ |
Turnover |
4 |
3,639,393 |
3,423,073 |
|
|
|
|
Cost of sales |
2,725,476 |
2,557,796 |
|
------------ |
------------ |
Gross Profit |
913,917 |
865,277 |
|
|
|
Administrative expenses |
522,305 |
651,337 |
|
|
--------- |
--------- |
Operating Profit |
5 |
391,612 |
213,940 |
|
|
|
|
Other interest receivable and similar income |
8 |
– |
23,250 |
Interest payable and similar expenses |
9 |
31,759 |
13,431 |
|
--------- |
--------- |
Profit Before Taxation |
359,853 |
223,759 |
|
|
|
|
Tax on profit |
10 |
50,889 |
16,229 |
|
--------- |
--------- |
Profit for the Financial Year and Total Comprehensive Income |
308,964 |
207,530 |
|
--------- |
--------- |
|
|
|
|
All the activities of the company are from continuing operations.
Statement of Financial Position |
|
31 March 2023
Fixed Assets
Tangible assets |
12 |
|
1,058,415 |
489,560 |
|
|
|
|
|
Current Assets
Stocks |
13 |
307,741 |
|
260,121 |
Debtors |
14 |
892,034 |
|
775,614 |
Cash at bank and in hand |
183,565 |
|
83,406 |
|
------------ |
|
------------ |
|
1,383,340 |
|
1,119,141 |
|
|
|
|
|
Creditors: amounts falling due within one year |
15 |
865,723 |
|
901,674 |
|
------------ |
|
------------ |
Net Current Assets |
|
517,617 |
217,467 |
|
|
------------ |
--------- |
Total Assets Less Current Liabilities |
|
1,576,032 |
707,027 |
|
|
|
|
|
Creditors: amounts falling due after more than one year |
16 |
|
472,111 |
80,600 |
|
|
|
|
|
Provisions
Taxation including deferred tax |
18 |
|
217,113 |
48,583 |
|
|
------------ |
--------- |
Net Assets |
|
886,808 |
577,844 |
|
|
------------ |
--------- |
|
|
|
|
|
Capital and Reserves
Called up share capital |
21 |
|
202 |
202 |
Revaluation reserve |
22 |
|
125,000 |
125,000 |
Profit and loss account |
22 |
|
761,606 |
452,642 |
|
|
--------- |
--------- |
Shareholders Funds |
|
886,808 |
577,844 |
|
|
--------- |
--------- |
|
|
|
|
|
These financial statements were approved by the
board of directors
and authorised for issue on
10 November 2023
, and are signed on behalf of the board by:
Company registration number:
05649040
Year ended 31 March 2023
Cash Flows from Operating Activities
Profit for the financial year |
308,964 |
207,530 |
|
|
|
Adjustments for: |
|
|
Depreciation of tangible assets |
194,171 |
147,280 |
Other interest receivable and similar income |
– |
(
23,250) |
Interest payable and similar expenses |
31,759 |
13,431 |
Loss on disposal of tangible assets |
1,550 |
– |
Tax on profit |
50,889 |
16,229 |
Accrued (income)/expenses |
(
20,653) |
17,974 |
|
|
|
Changes in: |
|
|
Stocks |
(
47,620) |
(
92,962) |
Trade and other debtors |
(
116,420) |
(
325,591) |
Trade and other creditors |
(
87,991) |
336,608 |
|
--------- |
--------- |
Cash generated from operations |
314,649 |
297,249 |
|
|
|
Interest paid |
(
31,759) |
(
13,431) |
Interest received |
– |
23,250 |
Tax received |
87,135 |
1,810 |
|
--------- |
--------- |
Net cash from operating activities |
370,025 |
308,878 |
|
--------- |
--------- |
|
|
|
Cash Flows from Investing Activities
Purchase of tangible assets |
(
766,776) |
(
31,965) |
Proceeds from sale of tangible assets |
2,200 |
– |
|
--------- |
--------- |
Net cash used in investing activities |
(
764,576) |
(
31,965) |
|
--------- |
--------- |
|
|
|
Cash Flows from Financing Activities
Payments of finance lease liabilities |
494,710 |
(
111,132) |
Dividends paid |
– |
(
240,938) |
|
--------- |
--------- |
Net cash from/(used in) financing activities |
494,710 |
(
352,070) |
|
--------- |
--------- |
|
|
|
Net Increase/(Decrease) in Cash and Cash Equivalents |
100,159 |
(
75,157) |
Cash and Cash Equivalents at Beginning of Year |
83,406 |
158,563 |
|
--------- |
--------- |
Cash and Cash Equivalents at End of Year |
183,565 |
83,406 |
|
--------- |
--------- |
|
|
|
Notes to the Financial Statements |
|
Year ended 31 March 2023
1.
General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Newburn Bridge Road, Blaydon-On-Tyne, NE21 4SQ, Tyne & Wear.
2.
Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3.
Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
|
Leasehold Property |
- |
33% straight line |
|
Plant & Machinery |
- |
|
|
Fixtures & Fittings |
- |
|
|
Motor Vehicles |
- |
25% reducing balance |
|
|
|
|
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4.
Turnover
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5.
Operating profit
Operating profit or loss is stated after charging:
|
2023 |
2022 |
|
£ |
£ |
Depreciation of tangible assets |
194,171 |
147,280 |
Loss on disposal of tangible assets |
1,550 |
– |
Impairment of trade debtors |
8,206 |
148,812 |
|
--------- |
--------- |
|
|
|
6.
Auditor's remuneration
|
2023 |
2022 |
|
£ |
£ |
Fees payable for the audit of the financial statements |
3,500 |
5,500 |
|
------- |
------- |
|
|
|
7.
Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
|
2023 |
2022 |
|
No. |
No. |
Production staff |
23 |
20 |
Management staff |
4 |
4 |
|
---- |
---- |
|
27 |
24 |
|
---- |
---- |
|
|
|
The aggregate payroll costs incurred during the year, relating to the above, were:
|
2023 |
2022 |
|
£ |
£ |
Wages and salaries |
656,752 |
565,948 |
Social security costs |
57,836 |
51,472 |
Other pension costs |
15,069 |
12,439 |
|
--------- |
--------- |
|
729,657 |
629,859 |
|
--------- |
--------- |
|
|
|
8.
Other interest receivable and similar income
|
2023 |
2022 |
|
£ |
£ |
Interest on cash and cash equivalents |
– |
23,250 |
|
---- |
-------- |
|
|
|
9.
Interest payable and similar expenses
|
2023 |
2022 |
|
£ |
£ |
Interest on obligations under finance leases and hire purchase contracts |
31,759 |
13,431 |
|
-------- |
-------- |
|
|
|
10.
Tax on profit
Major components of tax expense
Current tax:
UK current tax (income)/expense |
(
117,641) |
30,506 |
Adjustments in respect of prior periods |
– |
(
1,810) |
|
--------- |
-------- |
Total current tax |
(
117,641) |
28,696 |
|
--------- |
-------- |
|
|
|
Deferred tax:
Origination and reversal of timing differences |
168,530 |
(
12,467) |
|
--------- |
-------- |
Tax on profit |
50,889 |
16,229 |
|
--------- |
-------- |
|
|
|
11.
Dividends
12.
Tangible assets
|
Land and buildings |
Plant and machinery |
Fixtures and fittings |
Motor vehicles |
Total |
|
£ |
£ |
£ |
£ |
£ |
Cost |
|
|
|
|
|
At 1 April 2022 |
21,752 |
1,104,862 |
254,438 |
8,800 |
1,389,852 |
Additions |
– |
754,288 |
12,488 |
– |
766,776 |
Disposals |
– |
(
6,000) |
– |
– |
(
6,000) |
|
-------- |
------------ |
--------- |
------- |
------------ |
At 31 March 2023 |
21,752 |
1,853,150 |
266,926 |
8,800 |
2,150,628 |
|
-------- |
------------ |
--------- |
------- |
------------ |
Depreciation |
|
|
|
|
|
At 1 April 2022 |
21,750 |
664,869 |
207,793 |
5,880 |
900,292 |
Charge for the year |
– |
152,005 |
41,436 |
730 |
194,171 |
Disposals |
– |
(
2,250) |
– |
– |
(
2,250) |
|
-------- |
------------ |
--------- |
------- |
------------ |
At 31 March 2023 |
21,750 |
814,624 |
249,229 |
6,610 |
1,092,213 |
|
-------- |
------------ |
--------- |
------- |
------------ |
Carrying amount |
|
|
|
|
|
At 31 March 2023 |
2 |
1,038,526 |
17,697 |
2,190 |
1,058,415 |
|
-------- |
------------ |
--------- |
------- |
------------ |
At 31 March 2022 |
2 |
439,993 |
46,645 |
2,920 |
489,560 |
|
-------- |
------------ |
--------- |
------- |
------------ |
|
|
|
|
|
|
There is a hire purchase creditor secured over the assets above of £612,447 (March 2023: £699,936).
13.
Stocks
|
2023 |
2022 |
|
£ |
£ |
Raw materials and consumables |
307,741 |
260,121 |
|
--------- |
--------- |
|
|
|
14.
Debtors
|
2023 |
2022 |
|
£ |
£ |
Trade debtors |
744,905 |
664,912 |
Amounts owed by group undertakings |
90,243 |
– |
Prepayments and accrued income |
29,488 |
110,562 |
Corporation tax repayable |
27,398 |
– |
Other debtors |
– |
140 |
|
--------- |
--------- |
|
892,034 |
775,614 |
|
--------- |
--------- |
|
|
|
15.
Creditors:
amounts falling due within one year
|
2023 |
2022 |
|
£ |
£ |
Trade creditors |
501,916 |
633,335 |
Accruals and deferred income |
32,818 |
53,471 |
Corporation tax |
– |
30,506 |
Social security and other taxes |
103,064 |
59,260 |
Obligations under finance leases and hire purchase contracts |
227,825 |
124,626 |
Credit card |
|
|
|
--------- |
--------- |
|
865,723 |
901,674 |
|
--------- |
--------- |
|
|
|
16.
Creditors:
amounts falling due after more than one year
|
2023 |
2022 |
|
£ |
£ |
Obligations under finance leases and hire purchase contracts |
472,111 |
80,600 |
|
--------- |
-------- |
|
|
|
17.
Finance leases and hire purchase contracts
18.
Provisions
|
Deferred tax (note 19) |
|
£ |
At 1 April 2022 |
48,583 |
Additions |
168,530 |
|
--------- |
At 31 March 2023 |
217,113 |
|
--------- |
|
|
19.
Deferred tax
The deferred tax included in the statement of financial position is as follows:
|
2023 |
2022 |
|
£ |
£ |
Included in provisions (note 18) |
217,113 |
48,583 |
|
--------- |
-------- |
|
|
|
20.
Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £
15,069
(2022: £
12,439
).
21.
Called up share capital
Issued, called up and fully paid
|
2023 |
2022 |
|
No. |
£ |
No. |
£ |
Ordinary shares of £ 1 each |
100 |
100 |
100 |
100 |
A Ordinary shares of £ 1 each |
15 |
15 |
15 |
15 |
B Ordinary shares of £ 1 each |
15 |
15 |
15 |
15 |
C Ordinary shares of £ 1 each |
70 |
70 |
70 |
70 |
D Ordinary shares of £ 1 each |
1 |
1 |
1 |
1 |
E Ordinary shares of £1 each |
1 |
1 |
1 |
1 |
|
---- |
---- |
---- |
---- |
|
202 |
202 |
202 |
202 |
|
---- |
---- |
---- |
---- |
|
|
|
|
|
22.
Reserves
23.
Analysis of changes in net debt
|
At 1 Apr 2022 |
Cash flows |
At 31 Mar 2023 |
|
£ |
£ |
£ |
Cash at bank and in hand |
83,406 |
100,159 |
183,565 |
Debt due within one year |
(124,626) |
(103,199) |
(227,825) |
Debt due after one year |
(80,600) |
(391,511) |
(472,111) |
|
--------- |
--------- |
--------- |
|
(
121,820) |
(
394,551) |
(
516,371) |
|
--------- |
--------- |
--------- |
|
|
|
|
Notes to the Financial Statements (continued) |
|
Year ended 31 March 2023
24.
Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
|
2023 |
2022 |
|
£ |
£ |
Not later than 1 year |
39,600 |
43,960 |
Later than 1 year and not later than 5 years |
158,400 |
175,840 |
|
--------- |
--------- |
|
198,000 |
219,800 |
|
--------- |
--------- |
|
|
|
25.
Related party transactions
The company was under the control of Mr
G Peel
and Mr S Young
by virtue of their interests in the share capital of the company's parent company, Impress North East Limited, which holds 100% of the company's ordinary share capital. Trading within the group on normal commercial terms was as follows: Sales Purchases £ £ Impress North East Ltd 210,731 (March 2023: 678,017) 32,400 (March 2023: 62,836) Impressive Welding Ltd 59,435 (March 2023: 88,032) 63 (March 2023: 3,022) North Eastern Powder Coating Ltd 249 (March 2023: NIL) 146 (March 2023: 3,380) Balances outstanding at the year end to the group were as follows: £ Impress North East Ltd 383 Dr (March 2023: 90,243 Dr) Impressive Welding Ltd 58,521 (March 2023: NIL) North Eastern Powder Coating Ltd NIL (March 2023: NIL) No transactions with related parties were undertaken such as are required to be disclosed under FRS102.
26.
Controlling party
The ultimate parent company is Impress North East Limited, Registered office Ryton Industrial Estate, Blaydon on Tyne, NE21 4SQ.