Company registration number 01991306 (England and Wales)
CROSBY COMPOSITES LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
CROSBY COMPOSITES LTD
COMPANY INFORMATION
Directors
Mr P A Field
Mr N Brew
Mr A Nagwaney
Secretary
Mr M Timms
Company number
01991306
Registered office
Unit C Nigel Court, Ward Road
Buckingham Road Industrial Estate
Brackley
Northamptonshire
NN13 7LF
Auditor
Ellacotts Audit Services Limited
Countrywide House
23 West Bar
Banbury
Oxfordshire
England
OX16 9SA
Bankers
Barclays Bank PLC
36 Market Square
Bicester
Oxfordshire
OX26 6AQ
CROSBY COMPOSITES LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
9
Statement of changes in equity
8
Notes to the financial statements
10 - 20
CROSBY COMPOSITES LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
- 1 -

The directors present the strategic report for the year ended 31 August 2023.

Review of the Business

The company supports two distinct types of customers: it produces limited-volume repeat parts for high-performance automotive OEMs and it manufactures low-volume/prototype specialist components for F1 racing teams and other customers.

Key performance indicators

The key measures of performance are quality and on-time delivery. Our strong performance on those two metrics drives our sales revenue, gross profit, operating profit, cash generation, and customer pipeline.

Sales in FY23 have increased by 34% from £13m to £18m with gross profits increasing by £1.26m reflecting the increased demand post COVID-19.

Future Developments

The sales pipeline remains in a strong position with further increases to come over both FY24 and into FY25. The beginning of FY24 has seen increased pressure on our cost base from both materials and labour, but we are looking to manage this through a combination of pricing and efficiency projects.

On behalf of the board

Mr P A Field
Director
7 March 2024
CROSBY COMPOSITES LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
- 2 -

The directors present their annual report and financial statements for the year ended 31 August 2023.

Principal activities

The principal activity of the company continued to be that of the manufacture of composite carbon-fibre solutions, primarily for the automotive sector, but also prototype parts and racing components used in F1 and motorsport.

Results and dividends

The profit for the year, after taxation, amounted to £1,530,863 (2022: £789,792).

Ordinary dividends were paid amounting to £nil (2022: £nil).

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr P A Field
Mr N Brew
Mr A Nagwaney
Auditor

Ellacotts Audit Services Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the annual 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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.

CROSBY COMPOSITES LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 3 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr P A Field
Director
7 March 2024
CROSBY COMPOSITES LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CROSBY COMPOSITES LTD
- 4 -
Opinion

We have audited the financial statements of Crosby Composites Ltd (the 'company') for the year ended 31 August 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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:

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 contained within the annual report. 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. 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 course of 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 our audit:

CROSBY COMPOSITES LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CROSBY COMPOSITES LTD
- 5 -
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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement set out on page 2, 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Because of 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. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

As part of an audit in accordance with ISAs (UK),we exercise professional judgment and maintain professional scepticism throughout the audit. We also performed the following procedures:

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

 

 

 

 

CROSBY COMPOSITES LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CROSBY COMPOSITES LTD
- 6 -

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.

Charlotte Toemaes BSc FCA
Senior Statutory Auditor
For and on behalf of Ellacotts Audit Services Limited
Chartered Accountants
Statutory Auditor
Countrywide House
23 West Bar
Banbury
Oxfordshire
England
OX16 9SA
7 March 2024
CROSBY COMPOSITES LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
18,059,275
13,423,703
Cost of sales
(14,059,397)
(10,688,208)
Gross profit
3,999,878
2,735,495
Administrative expenses
(2,438,394)
(1,931,065)
Operating profit
4
1,561,484
804,430
Interest receivable and similar income
7
2,323
31
Interest payable and similar expenses
8
(85,516)
(35,115)
Profit before taxation
1,478,291
769,346
Tax on profit
9
52,572
20,446
Profit for the financial year
1,530,863
789,792

The profit and loss account has been prepared on the basis that all operations are continuing operations.

 

There is no comprehensive income or expense other than the profit for the financial year and the preceding financial year.

CROSBY COMPOSITES LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2023
- 8 -
Share capital
Capital redemption reserve
Capital contribution reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 September 2021
90
10
2,588,328
745,171
3,333,599
Year ended 31 August 2022:
Profit and total comprehensive income
-
-
-
789,792
789,792
Balance at 31 August 2022
90
10
2,588,328
1,534,963
4,123,391
Year ended 31 August 2023:
Profit and total comprehensive income
-
-
-
1,530,863
1,530,863
Balance at 31 August 2023
90
10
2,588,328
3,065,826
5,654,254
CROSBY COMPOSITES LTD
BALANCE SHEET
AS AT
31 AUGUST 2023
31 August 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,146,678
1,321,364
Current assets
Stocks
11
3,286,318
2,432,566
Debtors
12
3,854,975
3,500,011
Cash at bank and in hand
389,126
54,751
7,530,419
5,987,328
Creditors: amounts falling due within one year
13
(2,791,911)
(3,011,884)
Net current assets
4,738,508
2,975,444
Total assets less current liabilities
5,885,186
4,296,808
Creditors: amounts falling due after more than one year
14
(38,885)
-
0
Provisions for liabilities
Provisions
16
75,000
-
0
Deferred tax liability
17
117,047
173,417
(192,047)
(173,417)
Net assets
5,654,254
4,123,391
Capital and reserves
Called up share capital
19
90
90
Capital redemption reserve
10
10
Capital contribution reserve
2,588,328
2,588,328
Profit and loss reserves
3,065,826
1,534,963
Total equity
5,654,254
4,123,391
The financial statements were approved by the board of directors and authorised for issue on 7 March 2024 and are signed on its behalf by:
Mr P A Field
Director
Company Registration No. 01991306
CROSBY COMPOSITES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
- 10 -
1
Accounting policies
Company information

Crosby Composites Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit C Nigel Court, Ward Road, Buckingham Road Industrial Estate, Brackley, Northamptonshire, NN13 7LF.

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.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
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 sales/value added tax returns, rebates and discounts.

 

The Company recognises revenue when goods are dispatched from the company's premises.

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 capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

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:

Leasehold improvements
2% Straight line
Plant and machinery
15% Straight line
Fixtures and fittings
15% Straight line
Office equipment
33% Straight line
Motor vehicles
25% Straight line

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.

CROSBY COMPOSITES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 11 -
1.6
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. Cost is based on the cost of purchase on a first in, first out basis.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

 

Work is progress is valued based on the stage of completion based of the product derived from the materials used in production.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

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.

1.8
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

CROSBY COMPOSITES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 12 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
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.

1.10
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.

CROSBY COMPOSITES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 13 -
1.11
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
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. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

 

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

 

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

1.15
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.

CROSBY COMPOSITES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 14 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Work In Progress

Using the information available at the balance sheet date, the directors make judgements based on experience regarding the value of work in progress based on stage of completion and selling price.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
18,059,275
13,423,703
2023
2022
£
£
Other revenue
Interest income
2,323
31

In the opinion of the directors, none of the turnover is attributable to markets outside the UK.

4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
-
0
(5,883)
Fees payable to the company's auditor for the audit of the company's financial statements
16,330
14,850
Depreciation of owned tangible fixed assets
333,473
391,504
Depreciation of tangible fixed assets held under finance leases
2,130
-
Loss on disposal of tangible fixed assets
3,526
3,808
Operating lease charges
360,000
360,000
CROSBY COMPOSITES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 15 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Directors
3
3
Administration
7
9
Production
225
182
Total
235
194

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
7,191,288
5,381,792
Social security costs
665,989
523,557
Pension costs
239,897
143,038
8,097,174
6,048,387
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
237,214
182,510
Company pension contributions to defined contribution schemes
3,388
22,699
240,602
205,209

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 3).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
118,881
112,550
Company pension contributions to defined contribution schemes
1,541
21,554
CROSBY COMPOSITES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 16 -
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
2,323
31
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
85,516
35,115
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
(158,524)
Adjustments in respect of prior periods
3,798
101,870
Total current tax
3,798
(56,654)
Deferred tax
Origination and reversal of timing differences
(56,370)
36,208
Total tax credit
(52,572)
(20,446)

The actual credit for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,478,291
769,346
Expected tax charge based on the standard rate of corporation tax in the UK of 21.40% (2022: 19.00%)
316,354
146,176
Tax effect of expenses that are not deductible in determining taxable profit
-
0
4,912
Tax effect of utilisation of tax losses not previously recognised
(7,508)
-
0
Group relief
(788)
-
0
Permanent capital allowances in excess of depreciation
49,829
(28,947)
Research and development tax credit
(357,887)
(178,795)
Under/(over) provided in prior years
3,798
-
0
Deferred tax charge
(56,370)
36,208
Taxation credit for the year
(52,572)
(20,446)
CROSBY COMPOSITES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 17 -
10
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures and fittings
Office equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 September 2022
387,872
3,020,487
303,259
195,167
84,853
3,991,638
Additions
8,005
30,106
9,183
8,566
108,583
164,443
Disposals
-
0
-
0
-
0
-
0
(3,526)
(3,526)
At 31 August 2023
395,877
3,050,593
312,442
203,733
189,910
4,152,555
Depreciation and impairment
At 1 September 2022
16,374
2,222,377
233,735
153,654
44,134
2,670,274
Depreciation charged in the year
7,750
246,386
32,719
27,812
20,936
335,603
At 31 August 2023
24,124
2,468,763
266,454
181,466
65,070
3,005,877
Carrying amount
At 31 August 2023
371,753
581,830
45,988
22,267
124,840
1,146,678
At 31 August 2022
371,498
798,110
69,524
41,513
40,719
1,321,364

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2023
2022
£
£
Motor vehicles
100,120
-
0
11
Stocks
2023
2022
£
£
Raw materials and consumables
1,344,749
1,102,032
Work in progress
1,941,569
1,330,534
3,286,318
2,432,566
CROSBY COMPOSITES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 18 -
12
Debtors: amounts falling due within one year
2023
2022
£
£
Trade debtors
3,411,405
3,042,857
Corporation tax recoverable
199,060
349,805
Other debtors
899
-
0
Prepayments and accrued income
243,611
107,349
3,854,975
3,500,011
13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
15
19,496
-
0
Trade creditors
956,547
962,587
Amounts owed to group undertakings
547,988
1,000,781
Taxation and social security
803,463
519,472
Other creditors
41,293
395,969
Accruals and deferred income
423,124
133,075
2,791,911
3,011,884
14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
15
38,885
-
0
15
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
19,496
-
0
In two to five years
38,885
-
0
58,381
-
0

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is three years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

CROSBY COMPOSITES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 19 -
16
Provisions for liabilities
2023
2022
£
£
Insurance provision
75,000
-
Movements on provisions:
Insurance provision
£
Additional provisions in the year
75,000
17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
117,047
173,417
2023
Movements in the year:
£
Liability at 1 September 2022
173,417
Credit to profit or loss
(56,370)
Liability at 31 August 2023
117,047
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
239,897
143,038

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
90
90
90
90
CROSBY COMPOSITES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 20 -
20
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
360,000
360,000
Between two and five years
1,440,000
1,800,000
In over five years
2,520,000
2,520,000
4,320,000
4,680,000
21
Ultimate controlling party

The company's immediate parent company is Wycke H Limited. The company's ultimate parent undertaking is Wycke H1 Limited (companies incorporated in England & Wales).

 

Copies of the consolidated financial statements may be obtained from the registered office of Wycke H1 Limited.

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