12168686
WALDENS ENGINEERING LIMITED
AUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 SEPTEMBER 2022
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WALDENS ENGINEERING LIMITED
REGISTERED NUMBER:12168686
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BALANCE SHEET
AS AT 30 SEPTEMBER 2022
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 2 to 7 form part of these financial statements.
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WALDENS ENGINEERING LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
Waldens Engineering Limited ('the Company') is a private limited company domiciled and incorporated in England and Wales.
The address of its registered office and principal place of business is Waldens Depot, Waldens Road, Orpington, Kent, BR5 4EU.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
Monetary amounts in these financial statements are stated in pounds sterling and are rounded to the nearest whole £1, except where otherwise indicated.
The following principal accounting policies have been applied:
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WALDENS ENGINEERING LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
2.Accounting policies (continued)
The financial statements have been prepared on a going concern basis. The following paragraphs set out the basis on which the director have reached their conclusion.
The Company ceased working on new contracts around the previous year-end, and worked through existing contracts during 2022 with continued financial support from the parent company, Watch It Come Down, and the group subsidiaries. At 30 September 2022, the Company has net liabilities totalling £325k (2021: £56k). Continued financial support has been confirmed by the Watch It Come Down group at the date of these financial statements being approved, as existing contracts wind down.
At 30 September 2021, the Group headed by Watch It Come Down Limited breached its bank covenants, and the breaches continued throughout the year until they were waived by the Bank in September 2022.
Subsequent to the year-end, the Group breached its bank covenants, and tax liabilities totalling £2.3m were overdue for payment.
In November 2023, the main trading company in the group, Pinden Limited, arranged a £5.5m commercial bridging loan which is enabling the tax liabilities to be paid under the terms of a payment arrangement, and Shawbrook Bank loans and invoice discounting facilities have been settled early. The bridging loan is repayable in November 2024, less than 12 months after the financial statements have been approved.
The directors believe it is appropriate, to prepare the financial statements to 30 September 2022 on a going concern basis.
The directors are expecting to agree a new Working capital facility for the Group imminently, but acknowledge that long-term bank facilities are not yet in place, and Group property assets have not yet been sold, at the date of these financial statements. This represents a material uncertainty over the group and Company’s ability to continue to trade as a going concern. However, given the significant value in the property assets held in the group headed by Watch It Come Down Limited amounting to £15m, together with further group tangible assets of £6m, the Directors are very confident that a long-term refinance will be achievable ahead of the repayment date, alongside the sale of the group’s development land asset.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Specifically, the Company recognises revenue to the extent that consultancy projects have been completed, using a stage-of-completion method.
Grants of a revenue nature are recognised in the Statement of income and retained earnings in the same period as the related expenditure.
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WALDENS ENGINEERING LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
2.Accounting policies (continued)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of income and retained earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
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 last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
Short-term creditors are measured at the transaction price.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.
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WALDENS ENGINEERING LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
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The average monthly number of employees, including directors, during the period was 5 (2021 - 9).
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Charge for the period on owned assets
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WALDENS ENGINEERING LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
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Amounts owed by group undertakings
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Contingent liabilities of a level around £2m currently exist in relation to potential claims falling under this category. No claims are currently accepted. At this time, no legal proceedings have been issued and the timing of any intimated claims is not known. The directors do not view these claims as having any validity, but in the event of the claim proceeding, they are satisfied that the Company had a professional indemnity insurance policy in place for the relevant period.
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. Contributions totaling £40 (2021: £1,237) were payable to the fund at the reporting date.
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Post balance sheet events
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The Company entered into a cross-company guarantee in favour of Shawbrook Bank Limited in December 2022. The cross-company guarantee was in relation to bank loans and invoice discounting facilities provided to the group. The Shawbrook facilities were settled early, in November 2023, and the guarantee and debenture were removed.
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WALDENS ENGINEERING LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
The Company is a wholly owned subsidiary of Watch It Come Down Limited, which is the ultimate parent of the group, which is controlled by the board of directors of this Company.
Watch It Come Down Limited is the parent of the smallest group for which consolidated financial statements are drawn up of which this Company is a member. Watch It Come Down Limited’s registered office is Waldens Road, Orpington, Kent, BR5 4EU.
The auditors' report on the financial statements for the period ended 30 September 2022 was unqualified.
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In their report, the auditors emphasised the following matter without qualifying their report:
We draw attention to note 2.2 in the financial statements, which indicates that conditions exist which indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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.
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The audit report was signed on 30 January 2024 by Anthony Woodings (Senior statutory auditor) on behalf of Hurst Accountants Limited.
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