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REGISTERED NUMBER: 05465512 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023

FOR

NEWQUIP LIMITED

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

CONTENTS OF THE FINANCIAL STATEMENTS
for the year ended 28 February 2023










Page

Company Information 1

Strategic Report 2

Report of the Director 3

Report of the Independent Auditors 4

Income Statement 7

Other Comprehensive Income 8

Statement of Financial Position 9

Statement of Changes in Equity 10

Statement of Cash Flows 11

Notes to the Statement of Cash Flows 12

Notes to the Financial Statements 13


NEWQUIP LIMITED

COMPANY INFORMATION
for the year ended 28 February 2023







DIRECTOR: A S Dye





REGISTERED OFFICE: NQ House
Conygarth Way
Leeming Bar Business Park
Northallerton
North Yorkshire
DL7 9EE





REGISTERED NUMBER: 05465512 (England and Wales)

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

STRATEGIC REPORT
for the year ended 28 February 2023


The director presents his strategic report for the year ended 28 February 2023.

REVIEW OF BUSINESS
The director is pleased with the results for the year given the extremely challenging market conditions and the outbreak of avian influenza in the United Kingdom.

Turnover has fallen by 12% to £20,283,156. This is largely due to the uncertainty of the requirement from the supermarkets and the very challenging conditions in relation to the granting of planning permissions.

Gross margin has increased to 11% (2022 - 7%). Profit before tax for the year increased to £278k from £9k in the preceding year, driven by the growth in gross profit noted above.

The above results continue to be attributable to the broad product range, brand and support of a very strong supplier.

Net current assets have decreased to £3.4m (2022 - £4.0m) and include cash of £937k. Net assets were £4.3m (2022 - £4.7m) at the year end.

PRINCIPAL RISKS AND UNCERTAINTIES
Price risk
Price risk is the risk that changes in raw materials prices have the potential to impact on the profitability of the company. Management monitors price risk via consistent review of general economic indicators and key supplier prices to inform budgeting and forecasting procedures, to identify potential effect on margins ahead of time.

Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge its obligation. Company policies are aimed at minimising such losses and require customers to satisfy credit worthiness procedures prior to acceptance of contracts.

Cash flow and liquidity risk
Cash flow and liquidity risk is the risk that a company's available cash will not be be sufficient to meet its financial obligations. The company actively manages its cash flow position including collection of debts and timely payment of creditors. This, coupled with the strong cash position of the company and continued financial support of the director and entities under common control, is deemed sufficient to minimise the company's exposure to cash flow and liquidity risk.

Foreign exchange risk
Foreign exchange risk refers to the potential for loss from exposure to foreign exchange rate fluctuations. Company policies are aimed at minimising this risk. The company does not consider that it is materially exposed to foreign exchange risk.

Avian influenza risk
Avian influenza and its effects present uncertainty and its continuing impact needs to be carefully monitored to identify threats. Protocols will remain in place and constant communication undertaken with all stakeholders whilst marketplace indicators will be monitored, and any identified actions required executed promptly.

ON BEHALF OF THE BOARD:





A S Dye - Director


29 November 2023

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

REPORT OF THE DIRECTOR
for the year ended 28 February 2023


The director presents his report with the financial statements of the company for the year ended 28 February 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of retailing and installing animal feed and housing systems.

DIVIDENDS
Information relating to dividends can be found in the Notes to the Financial Statements.

FUTURE DEVELOPMENTS
The Company intends to continue operating in the areas of retailing and installing animal feed and housing systems in a similar manner, as customers continue to change to alternative systems and the meat sector continues to grow.

We are continuing our investment in improving our coverage within the meat sector in order to gain further market share. We are also able to offer excellent solutions for air cleaning which continue to become a more significant part of our business and will set us apart further from many of our competitors. We are also continuing to build our relationships with Sanovo and Kletec who provide complimentary products to those in our market.

DIRECTOR
A S Dye held office during the whole of the period from 1 March 2022 to the date of this report.

FINANCIAL INSTRUMENTS
In the period covered by these financial statements, the company financed its activities with cash generated from operating activities and loans from related parties and did not have any external bank loans or overdrafts. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the company's operating activities.

GOING CONCERN
Information relating to going concern can be found in the Notes to the Financial Statements.

DIRECTOR'S RESPONSIBILITIES STATEMENT
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

-select suitable accounting policies and then apply them consistently;
-make judgements 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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:





A S Dye - Director


29 November 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
NEWQUIP LIMITED


Opinion
We have audited the financial statements of Newquip Limited (the 'company') for the year ended 28 February 2023 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 28 February 2023 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 Director 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 Director 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 Report of the Director.

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 director's remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
NEWQUIP LIMITED


Responsibilities of director
As explained more fully in the Director's Responsibilities Statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors.

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

The risk is also greater regarding irregularities occurring 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
NEWQUIP 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.




Steven Aitken (Senior Statutory Auditor)
for and on behalf of Smailes Goldie Watson Limited
Statutory Auditors
Chartered Accountants
12 Alma Square
Scarborough
North Yorkshire
YO11 1JU

29 November 2023

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

INCOME STATEMENT
for the year ended 28 February 2023

2023 2022
Notes £    £   

TURNOVER 4 20,283,156 22,928,135

Cost of sales 17,986,923 21,338,081
GROSS PROFIT 2,296,233 1,590,054

Administrative expenses 1,984,708 1,587,960
311,525 2,094

Other operating income 5 - 1,987
OPERATING PROFIT 7 311,525 4,081

Interest receivable and similar income 8 50,860 4,825
362,385 8,906

Interest payable and similar expenses 9 84,359 -
PROFIT BEFORE TAXATION 278,026 8,906

Tax on profit 10 53,974 3,048
PROFIT FOR THE FINANCIAL YEAR 224,052 5,858

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

OTHER COMPREHENSIVE INCOME
for the year ended 28 February 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 224,052 5,858


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

224,052

5,858

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

STATEMENT OF FINANCIAL POSITION
28 February 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 12 931,242 640,089

CURRENT ASSETS
Stocks 13 3,691,775 3,651,964
Debtors 14 7,954,245 6,950,233
Cash at bank and in hand 15 936,933 2,144,333
12,582,953 12,746,530
CREDITORS
Amounts falling due within one year 16 9,156,716 8,706,776
NET CURRENT ASSETS 3,426,237 4,039,754
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,357,479

4,679,843

PROVISIONS FOR LIABILITIES 19 76,685 23,101
NET ASSETS 4,280,794 4,656,742

CAPITAL AND RESERVES
Called up share capital 20 115,991 115,991
Capital redemption reserve 21 41,359 41,359
Retained earnings 21 4,123,444 4,499,392
4,280,794 4,656,742

The financial statements were approved by the director and authorised for issue on 29 November 2023 and were signed by:





A S Dye - Director


NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

STATEMENT OF CHANGES IN EQUITY
for the year ended 28 February 2023

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   

Balance at 1 March 2021 115,791 5,093,534 41,359 5,250,684

Changes in equity
Issue of share capital 200 - - 200
Dividends - (600,000 ) - (600,000 )
Total comprehensive income - 5,858 - 5,858
Balance at 28 February 2022 115,991 4,499,392 41,359 4,656,742

Changes in equity
Dividends - (600,000 ) - (600,000 )
Total comprehensive income - 224,052 - 224,052
Balance at 28 February 2023 115,991 4,123,444 41,359 4,280,794

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

STATEMENT OF CASH FLOWS
for the year ended 28 February 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (567,799 ) (3,213,199 )
Interest paid (75,352 ) -
Tax paid (17,913 ) (22,520 )
Net cash from operating activities (661,064 ) (3,235,719 )

Cash flows from investing activities
Purchase of tangible fixed assets (431,950 ) (210,208 )
Sale of tangible fixed assets 284,644 61,028
Interest received 37,330 4,260
Net cash from investing activities (109,976 ) (144,920 )

Cash flows from financing activities
New loans in year 4,213,540 -
Loan repayments in year (4,050,000 ) -
Share capital paid up in the period 100 -
Equity dividends paid (600,000 ) -
Net cash from financing activities (436,360 ) -

Decrease in cash and cash equivalents (1,207,400 ) (3,380,639 )
Cash and cash equivalents at beginning of year 2 2,144,333 5,524,972

Cash and cash equivalents at end of year 2 936,933 2,144,333

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

NOTES TO THE STATEMENT OF CASH FLOWS
for the year ended 28 February 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 278,026 8,906
Depreciation charges 260,804 243,329
Profit on disposal of fixed assets (140,051 ) (38,360 )
Finance costs 84,359 -
Finance income (50,860 ) (4,825 )
432,278 209,050
Increase in stocks (39,811 ) (1,157,094 )
Increase in trade and other debtors (990,482 ) (1,233,507 )
Increase/(decrease) in trade and other creditors 30,216 (1,031,648 )
Cash generated from operations (567,799 ) (3,213,199 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 28 February 2023
28.2.23 1.3.22
£    £   
Cash and cash equivalents 936,933 2,144,333
Year ended 28 February 2022
28.2.22 1.3.21
£    £   
Cash and cash equivalents 2,144,333 5,524,972


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.3.22 Cash flow At 28.2.23
£    £    £   
Net cash
Cash at bank and in hand 2,144,333 (1,207,400 ) 936,933
2,144,333 (1,207,400 ) 936,933
Debt
Debts falling due within 1 year - (163,540 ) (163,540 )
- (163,540 ) (163,540 )
Total 2,144,333 (1,370,940 ) 773,393

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 28 February 2023


1. STATUTORY INFORMATION

Newquip Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements in the Pound Sterling (£).

2. STATEMENT OF COMPLIANCE

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

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The judgements (apart from those involving estimates) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:

Assessing indicators of impairment - In assessing whether there have been indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no indicators of impairment identified during the current financial year.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

Stock provision - The company has made an assumption of writing down the value of stock on items in which they expect the cost to exceed the net realisable value before it is fully sold/utilised.

The company uses the following estimation technique to account for slow moving stock:

Last purchase order date - Percentage of cost provided

6 - 12 months from year end - 25%
12 - 18 months from year end - 50%
18 - 24 months from year end - 75%
>24 months from year end - 100%

At the reporting date, the carrying amount of the provision is £2,024,547 (2022 - £1,558,839)

Impairment of debtors - The company makes an estimate of the recoverable value of the trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

Determining the stage of completion and profitability of contracts in progress - The company determines the stage of completion of contracts in progress and the revenue to be recognised in the financial statements based on historic financial information and also forecast information concerning future performance to completion of the contracts and this required estimates and assumptions to be used by management.

Useful economic lives of tangible assets - The annual depreciation charge is sensitive to changes in the estimated useful lives of the asset. The useful economic lives are re-assessed annually. They are amended when necessary to reflect current estimates, future investments and economic utilisation.

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 28 February 2023


3. ACCOUNTING POLICIES - continued

Turnover
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 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.

Contract revenue recognition

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all the following conditions are satisfied:

- The amount of the revenue can be measured reliably;
- It is probable that the company will receive the consideration due under the contract;
- The stage of completion of the contract at the end of the reporting period can be measured reliably, and;
- The cost incurred and the costs to complete the contract can be measured reliably.

Long term contracts are assessed on a contract by contract basis and reflected in the profit and loss account by recognising turnover and related costs as contract activity progresses. Profit on long term contracts is taken as the work is carried out if the outcome of each long term contract can be assessed with reasonable certainty before its conclusion. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end. Turnover 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 variation 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.

Amounts recoverable on contracts, which are included within debtors, are stated at the net sales value of the work done less amounts billed as progress payments on account. Excess progress payments are included within creditors as payments received on account.

Commissions are accounted for when the company is informed that they are due and payable by the entity paying the commission.

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 28 February 2023


3. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 20% on reducing balance and 15% on reducing balance
Fixtures and fittings - 20% on reducing balance
Motor vehicles - 33% on reducing balance
Office equipment - 20% on reducing balance

Tangible assets are stated in the statement of financial position 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.

The company adds to the carrying value of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying value of the replaced part is derecognised. Repairs are charged to the profit and loss account during the period in which they are incurred.

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the previous year.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within administrative expenses in the statement of comprehensive income.

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 are largely independent of the cash inflows from other assets or groups of assets.

Stocks
Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the average purchase price of the actual quantities in stock.

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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 have been enacted or substantively enacted by the statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 28 February 2023


3. ACCOUNTING POLICIES - continued

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 in to 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 rates prevailing on the initial transaction dates. Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

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.

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. If the contribution due for service exceeds contribution payments, the excess is recognised as an accrual.

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 where there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

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 creditors 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.

Provisions
A provision is recognised when:
- The company has a present obligation (legal of constructive) as a result of a past event;
- It is probable that a transfer of economic benefit will be required to settle the obligation, and;
- A reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the profit and loss account in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account the relevant risks and uncertainties.

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.

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 28 February 2023


3. ACCOUNTING POLICIES - continued

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

The company has net current assets of £3,426,237 at the year end including cash of £936,933.

The company's forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account the continued support of key management personnel of the company, and of entities under their control.

Based on the factors set out above the director believes that there is no material uncertainty in relation to going concern and that the company has adequate financial resources to continue in operational existence for at least twelve months from the date of signing the financial statements and therefore the director believes that it remains appropriate to prepare the financial statements on a going concern basis.

4. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company, with all turnover attributable to one geographical market, being the United Kingdom.

5. OTHER OPERATING INCOME
2023 2022
£    £   
Government grants - 1,987

Other operating income in the comparative year consisted solely of Coronavirus Job Retention Scheme income

6. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,570,232 1,741,058
Social security costs 190,817 193,653
Other pension costs 47,855 119,222
1,808,904 2,053,933

The average number of employees during the year was as follows:
2023 2022

Administration and management 12 13
Sales and installation 25 28
37 41

2023 2022
£    £   
Director's remuneration 149,500 151,360

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 28 February 2023


7. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Hire of plant and machinery 12,031 9,025
Other operating leases 282,500 282,500
Depreciation - owned assets 260,804 243,329
Profit on disposal of fixed assets (140,051 ) (38,360 )
Auditors' remuneration 14,000 14,000
Other non- audit services 540 -
Finance charges 8,318 6,060
(Profit)/loss on foreign currency (141,420 ) (201,606 )
Bad debt provisions made/(released) 185,354 (288,871 )

8. INTEREST RECEIVABLE AND SIMILAR INCOME
2023 2022
£    £   
Deposit account interest 9,078 4,260
Other finance income 41,782 565
50,860 4,825

9. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Other loan interest 84,359 -

10. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 3,143 20,666
Tax - adjustment re prior years (2,753 ) -
Total current tax 390 20,666

Deferred tax 53,584 (17,618 )
Tax on profit 53,974 3,048

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 28 February 2023


10. 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:

2023 2022
£    £   
Profit before tax 278,026 8,906
Profit multiplied by the standard rate of corporation tax in the UK of 19% (2022 -
19%)

52,825

1,692

Effects of:
Expenses not deductible for tax purposes 3,690 (5,072 )
Adjustments to tax charge in respect of previous periods (2,753 ) -
Depreciation on non-qualifying assets 1,431 884
Effect of different UK tax rates on deferred tax 12,860 5,544
Permanent timing differences (14,079 ) -
Total tax charge 53,974 3,048

11. 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.

The following interim dividends per share have been declared in the period:

C Ordinary shares - £6,000 (2022 - £3,000)
D Ordinary shares - £nil (2022 - £3,000)

The director recommends that no final dividend will be paid.

The total distribution of dividends for the year ended 28 February 2023 will be £600,000 (2022 - £600,000).

12. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor Office
machinery fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1 March 2022 733,975 6,423 768,116 20,984 1,529,498
Additions 298,900 17,338 360,805 19,507 696,550
Disposals - (6,423 ) (367,540 ) - (373,963 )
At 28 February 2023 1,032,875 17,338 761,381 40,491 1,852,085
DEPRECIATION
At 1 March 2022 429,713 6,423 437,488 15,785 889,409
Charge for year 72,965 - 184,750 3,089 260,804
Eliminated on disposal - (6,423 ) (222,947 ) - (229,370 )
At 28 February 2023 502,678 - 399,291 18,874 920,843
NET BOOK VALUE
At 28 February 2023 530,197 17,338 362,090 21,617 931,242
At 28 February 2022 304,262 - 330,628 5,199 640,089

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 28 February 2023


13. STOCKS
2023 2022
£    £   
Stocks 2,168,800 2,615,814
Work-in-progress 1,522,975 1,036,150
3,691,775 3,651,964

14. DEBTORS
2023 2022
£    £   
Amounts falling due within one year:
Trade debtors 6,039,930 4,924,187
Other debtors 10,000 1,374
Amounts recoverable on contracts 1,428,910 1,134,122
Prepayments 84,208 890,550
7,563,048 6,950,233

Amounts falling due after more than one year:
Trade debtors 391,197 -

Aggregate amounts 7,954,245 6,950,233

15. CASH AT BANK AND IN HAND
2023 2022
£    £   
Cash at bank 695,201 104,307
Short term deposits 240,564 2,037,357
Cash in hand 1,168 2,669
936,933 2,144,333

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Other loans (see note 17) 163,540 -
Trade creditors 2,949,358 3,732,935
Tax 3,143 20,666
Social security and other taxes 2,627 20,400
VAT 139,428 43,274
Other creditors 600,599 587,086
Directors' loan accounts 698 -
Deferred contract income 4,964,604 4,051,141
Accrued expenses 332,719 251,274
9,156,716 8,706,776

17. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Other loans 163,540 -

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 28 February 2023


17. LOANS - continued

Other loans are repayable on the lender's demand. Interest is charged on the loan at a mark up on Bank of England base rate and total interest of £84,359 is recognised as payable in the period covered by these financial statements.

18. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 240,000 170,000
Between one and five years 84,375 127,500
324,375 297,500

19. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 76,685 23,101

Deferred
tax
£   
Balance at 1 March 2022 23,101
Charge to Income Statement during year 53,584
Balance at 28 February 2023 76,685

20. CALLED UP SHARE CAPITAL

Alloted, called up shares

2023 2022
No. £    No. £   
A Ordinary of £1 each 40,359 40,359 40,359 40,359
B Ordinary of £1 each 75,432 75,432 75,432 75,432
C Ordinary of £1 each 100 100 100 100
D Ordinary of £1 each 100 100 100 100
115,991 115,991 115,991 115,991


Rights, preferences and restrictions
The A Ordinary and B Ordinary shares carry full voting, equity and dividend rights, are non-redeemable and rank pari passu in all respects.

The C Ordinary and D Ordinary shares are non-voting and non-equity. They carry dividend rights and are non-redeemable. They rank pari passu in all respects.

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 28 February 2023


21. RESERVES
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 March 2022 4,499,392 41,359 4,540,751
Profit for the year 224,052 224,052
Dividends (600,000 ) (600,000 )
At 28 February 2023 4,123,444 41,359 4,164,803

Profit and loss account
This reserve records retained earnings and accumulated losses.

Capital redemption reserve
This reserve records the nominal value of the share capital redeemed in 2014.

22. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £47,855 (2022 - £119,222). Amounts payable to the scheme at the reporting date were £nil (2022 - £nil).

23. CAPITAL COMMITMENTS
2023 2022
£    £   
Contracted but not provided for in the
financial statements 212,545 52,000

24. DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 28 February 2023 and 28 February 2022:

2023 2022
£    £   
A S Dye
Balance outstanding at start of year - 234,556
Amounts advanced 11,125 226,774
Amounts repaid (11,125 ) (461,330 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - -

Interest is charged in periods where the loan account becomes overdrawn in line with H M Revenue & Customs approved rates.

25. RELATED PARTY DISCLOSURES

Key management personnel of the entity or its parent (in the aggregate)
2023 2022
£    £   
Salaries and other short term employee benefits 543,706 664,792
Amount due to related party 1,398 -

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 28 February 2023


25. RELATED PARTY DISCLOSURES - continued

Other related parties
2023 2022
£    £   
Sales 7,736 16,983
Purchases 1,087,592 1,097,870
Rents payable 282,500 282,500
Dividends payable 600,000 600,000
Interest payable 84,359 -
Total amounts due from related parties - 1,923
Total amounts due to related parties 944,616 1,086,812

Other related parties include entities that share common control with the company.

Total amounts due to these related parties as above include trade and other creditors. It also includes short term loans payable by the company totalling £163,540 (2022 - £nil) at the date of these financial statements. Interest totalling £84,359 (2022 - £nil) has been charged on this loan in the period.

26. ULTIMATE CONTROLLING PARTY

The controlling party is A S Dye.