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Registration number: 04560444

Knowles-Wilkins Engineering (KWE) Limited

Unaudited Filleted Financial Statements

for the Year Ended 31 August 2023

 

Knowles-Wilkins Engineering (KWE) Limited

Contents

Company Information

1

Chairman's Statement

2

Balance Sheet

3 to 4

Notes to the Unaudited Financial Statements

5 to 10

 

Knowles-Wilkins Engineering (KWE) Limited

Company Information

Chairman

Mr Christopher Stephen Philip Knowles

Chief executive

Mr Christopher Stephen Philip Knowles

Director

Mrs Theresa Maria Knowles

Company secretary

Mrs Theresa Maria Knowles

Registered office

Unit 3, Piper's Court
Berkshire Drive
Thatcham
Berkshire
RG19 4ER

Accountants

Opus Accounting Limited
Chartered Certified Accountants
Lindenmuth House
37 Greenham Business Park
Greenham
Thatcham
Berkshire
RG19 6HW

 

Knowles-Wilkins Engineering (KWE) Limited

CHAIRMAN'S STATEMENT

Order intake for 22-23 was very good at over £840k - a 10.8% increase, reflecting our growing reputation, since we did no extra marketing. At the end of the FY we commenced a substantial increase in marketing, with major photographic spreads in several relevant magazines, including their online presences. We worked harder at our own online work with dedicated graphic design, frequent newsletters and some social media work.

Sales at £786k were slightly down on previous year (3%), but gross profit was up by nearly 5% on less revenue - a pleasing result.

Operating profit was vastly improved from a £50k loss to a £12k profit, though other financial costs reduced this to £3.6k, and then a write-off of £31k in this FY for the EV project which had to be cancelled left us with a loss of £27k

Capacity was reduced by the loss of a skilled technician (1 of 3) in March 23. Recruiting suitable technicians is becoming increasingly difficult.

Seeking to de-sensitise the company to my future retirement, we recruited a potential Operations Manager, who commenced with some workshop training.

We also sought further external funding, through share sales, to boost our marketing initiative. But though we had around 15 interested (in writing) parties, none took the plunge - largely I believe because the FY 21-22 profit was so negative, even though this was a one-time blip. Had we timed this better, with 22-23 results showing our bounce-back being published, we would have been more successful. Lack of extra funding will slow our marketing results, but not stop them.

KWE remains less affected than many companies by the unstable world situation, and the UK Government’s travails. Our primary demographic is still older, HNW individuals, relatively insulated from short-term issues.

The future for classic car restoration continues to improve, with the CEBR reporting turnover of over £18bn in the UK. KWE is at the forefront!



 

Chris Knowles

Chairman & CEO

January 2024

 

Knowles-Wilkins Engineering (KWE) Limited

(Registration number: 04560444)
Balance Sheet as at 31 August 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

22,884

26,908

Current assets

 

Stocks

5

93,917

92,206

Debtors

6

89,076

121,584

Cash at bank and in hand

 

802

32,557

 

183,795

246,347

Creditors: Amounts falling due within one year

7

(147,114)

(158,635)

Net current assets

 

36,681

87,712

Total assets less current liabilities

 

59,565

114,620

Creditors: Amounts falling due after more than one year

7

(83,198)

(110,215)

Provisions for liabilities

(4,348)

(5,112)

Net liabilities

 

(27,981)

(707)

Capital and reserves

 

Called up share capital

8

24,000

24,000

Capital redemption reserve

(2,262)

(2,262)

Retained earnings

(49,719)

(22,445)

Shareholders' deficit

 

(27,981)

(707)

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

Director's responsibilities:

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

The director acknowledges her responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

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

Approved and authorised by the director on 30 January 2024
 

 

Knowles-Wilkins Engineering (KWE) Limited

(Registration number: 04560444)
Balance Sheet as at 31 August 2023 (continued)

.........................................
Mr Christopher Stephen Philip Knowles
Chairman and chief executive

 

Knowles-Wilkins Engineering (KWE) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2023

1

General information

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

The address of its registered office is:
Unit 3, Piper's Court
Berkshire Drive
Thatcham
Berkshire
RG19 4ER
England

These financial statements were authorised for issue by the director on 30 January 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

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

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

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

Tax

The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

 

Knowles-Wilkins Engineering (KWE) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2023 (continued)

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery etc

25% on reducing balance, 20% on cost and over 15 years

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

Knowles-Wilkins Engineering (KWE) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2023 (continued)

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

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.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Knowles-Wilkins Engineering (KWE) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2023 (continued)

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 8 (2022 - 8).

4

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 September 2022

142,590

16,500

159,090

Additions

3,329

-

3,329

At 31 August 2023

145,919

16,500

162,419

Depreciation

At 1 September 2022

119,343

12,839

132,182

Charge for the year

6,437

916

7,353

At 31 August 2023

125,780

13,755

139,535

Carrying amount

At 31 August 2023

20,139

2,745

22,884

At 31 August 2022

23,247

3,661

26,908

5

Stocks

2023
£

2022
£

Other inventories

93,917

92,206

6

Debtors

Current

2023
£

2022
£

Trade debtors

21,780

17,455

Prepayments

23,965

24,516

Other debtors

43,331

79,613

 

89,076

121,584

 

Knowles-Wilkins Engineering (KWE) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2023 (continued)

7

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

9

49,498

51,194

Trade creditors

 

49,889

48,956

Taxation and social security

 

17,226

38,839

Accruals and deferred income

 

23,062

11,265

Other creditors

 

7,439

8,381

 

147,114

158,635

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

9

83,198

110,215

8

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary of £1 each

24,000

24,000

24,000

24,000

         
 

Knowles-Wilkins Engineering (KWE) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2023 (continued)

9

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

83,198

110,215

2023
£

2022
£

Current loans and borrowings

Bank borrowings

39,750

39,750

Bank overdrafts

9,748

11,444

49,498

51,194

10

Related party transactions

Transactions with the director

2023

At 1 September 2022
£

Advances to director
£

At 31 August 2023
£

Mr Christopher Stephen Philip Knowles

Loan

-

17,497

17,497

       
     

 

Director's remuneration

The director's remuneration for the year was as follows:

2023
£

2022
£

Remuneration

90,000

92,000

Contributions paid to money purchase schemes

12,000

10,500

102,000

102,500