Company registration number 09670954 (England and Wales)
DARWEN TERRACOTTA LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
DARWEN TERRACOTTA LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
DARWEN TERRACOTTA LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
224,553
224,553
Tangible assets
4
486,286
440,825
Investments
5
3
3
710,842
665,381
Current assets
Stocks
369,280
394,869
Debtors
7
1,003,878
641,017
Cash at bank and in hand
519,611
519,433
1,892,769
1,555,319
Creditors: amounts falling due within one year
8
(1,185,700)
(1,367,156)
Net current assets
707,069
188,163
Total assets less current liabilities
1,417,911
853,544
Creditors: amounts falling due after more than one year
9
(257,179)
(376,998)
Provisions for liabilities
(121,572)
(109,987)
Net assets
1,039,160
366,559
Capital and reserves
Called up share capital
10
2
2
Revaluation reserve
11
11,000
11,000
Profit and loss reserves
1,028,158
355,557
Total equity
1,039,160
366,559

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

DARWEN TERRACOTTA LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 13 March 2024 and are signed on its behalf by:
Mr S Allen
Director
Company Registration No. 09670954
DARWEN TERRACOTTA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information

Darwen Terracotta Limited is a private company limited by shares incorporated in England and Wales. The registered office is Building 0, Ribble Business Park, Challenge Way, Blackburn, BB1 5QB.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company.

The financial statements have been prepared under the historical cost convention modified to include the revaluation of plant and machinery at fair value. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

1.2
Going concern

The directors are not aware of any material uncertainties affecting the company and consider that the company will have sufficient resources to continue trading for the foreseeable future. As a result the directors have continued to adopt the going concern basis in preparing the financial statements.true

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is written off in the same way unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period during which the company is expected to benefit.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
between 3% and 20% straight line
Fixtures and fittings
between 10% and 33% straight line
Computers
33% straight line
DARWEN TERRACOTTA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

1.8
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

DARWEN TERRACOTTA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.12
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.13
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Employees

The average monthly number of persons (including directors) employed by the company during the year was 53 (2022 - 50).

3
Intangible fixed assets
Development
costs
£
Cost
At 1 January 2023 and 31 December 2023
224,553
Amortisation and impairment
At 1 January 2023 and 31 December 2023
-
0
Carrying amount
At 31 December 2023
224,553
At 31 December 2022
224,553
DARWEN TERRACOTTA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost or valuation
At 1 January 2023
656,267
Additions
117,815
At 31 December 2023
774,082
Depreciation and impairment
At 1 January 2023
215,442
Depreciation charged in the year
72,354
At 31 December 2023
287,796
Carrying amount
At 31 December 2023
486,286
At 31 December 2022
440,825

The fair value of the plant and machinery has been arrived at on the basis of a valuation by the directors as at 31 December 2018. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar plant and machinery. The historic cost of the plant and machinery is £763,082 (2022 - £645,267).

The revaluation surplus is disclosed in note 11.

Plant and machinery at cost
Plant and machinery at revaluation
2023
2022
2023
2022
£
£
£
£
Cost
763,082
645,267
774,082
656,267
Accumulated depreciation
(284,796)
(213,042)
(287,796)
(215,442)
Carrying value
478,286
432,225
486,286
440,825
5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
3
3
DARWEN TERRACOTTA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
6
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Whitebirk Sink Company Limited
Building 0, Ribble Business Park, Challenge Way, Blackburn, BB1 5QB
Non-trading
Ordinary
100.00
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
805,857
477,744
Corporation tax recoverable
9,668
5,691
Other debtors
36,091
16,926
Prepayments and accrued income
152,262
140,656
1,003,878
641,017
8
Creditors: amounts falling due within one year
2023
2022
£
£
Other borrowings
162,229
140,854
Trade creditors
369,950
396,630
Amounts owed to group undertakings
1,306
13,980
Corporation tax
3,976
5,698
Other taxation and social security
76,964
140,552
Accruals and deferred income
571,275
669,442
1,185,700
1,367,156

Bank borrowings of £46,945 (2022 - £nil) are secured by way of personal guarantees provided by the directors.

 

9
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
257,179
376,998
DARWEN TERRACOTTA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Creditors: amounts falling due after more than one year
(Continued)
- 8 -

Included within Other creditors are unsecured third party loans.

10
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
11
Revaluation reserve
2023
2022
£
£
At the beginning and end of the year
11,000
11,000
12
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2023
2022
£
£
1,934,486
2,234,753
13
Directors' transactions

During the year the company operated loan accounts with its directors. At the balance sheet date Mr S Allen owed £14,354 to the company (2022 - £2,853) and Mr J R Wilson owed £14,354 to the company (2022 - £14,073).

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