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Registration number: 01479786

Malcolm Drew Limited

Unaudited Filleted Financial Statements

for the Year Ended 31 July 2023

 

Malcolm Drew Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

3 to 9

 

Malcolm Drew Limited

Company Information

Director

Mr Malcolm Drew

Registered office

United Bungalow
United Road
Redruth
Cornwall
TR16 5HT

 

Malcolm Drew Limited

(Registration number: 01479786)
Balance Sheet as at 31 July 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

5

873,273

688,689

Current assets

 

Stocks

6

957,959

519,530

Debtors

7

43,892

12,394

Cash at bank and in hand

 

444,816

1,026,332

 

1,446,667

1,558,256

Creditors: Amounts falling due within one year

8

(193,937)

(373,753)

Net current assets

 

1,252,730

1,184,503

Total assets less current liabilities

 

2,126,003

1,873,192

Creditors: Amounts falling due after more than one year

8

(498,255)

(423,679)

Provisions for liabilities

(102,980)

(44,327)

Net assets

 

1,524,768

1,405,186

Capital and reserves

 

Called up share capital

100

100

Retained earnings

1,524,668

1,405,086

Shareholders' funds

 

1,524,768

1,405,186

For the financial year ending 31 July 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 his 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 5 April 2024
 

.........................................
Mr Malcolm Drew
Director

 

Malcolm Drew Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 July 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:
United Bungalow
United Road
Redruth
Cornwall
TR16 5HT

These financial statements were authorised for issue by the director on 5 April 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.

Government grants

Government grants in relation to tangible fixed assets are credited to the profit and loss account over the useful lives of the related assets, whereas those in relation to expenditure are credited when the expenditure is charged to the profit and loss account.

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.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

 

Malcolm Drew Limited

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

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

Equipment and Machinery

15% p.a Reducing Balance

Motor Vehicles

20% p.a Reducing Balance

Freehold Buildings

2% p.a Straight Line

Improvements to Leasehold Property

25% p.a Straight Line

Office equipment

50% p.a Reducing Balance

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Positive goodwill

10% p.a Straight Line

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.

 

Malcolm Drew Limited

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

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.

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 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.

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.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 6 (2022 - 8).

 

Malcolm Drew Limited

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

4

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 August 2022

35,000

35,000

At 31 July 2023

35,000

35,000

Amortisation

At 1 August 2022

35,000

35,000

At 31 July 2023

35,000

35,000

Carrying amount

At 31 July 2023

-

-

5

Tangible assets

Land and buildings
£

Long leasehold land and buildings
£

Plant and machinery
£

Office equipment
£

Cost or valuation

At 1 August 2022

459,803

31,344

549,806

936

Additions

-

-

236,275

399

At 31 July 2023

459,803

31,344

786,081

1,335

Depreciation

At 1 August 2022

8,208

31,344

344,932

608

Charge for the year

235

-

45,210

267

At 31 July 2023

8,443

31,344

390,142

875

Carrying amount

At 31 July 2023

451,360

-

395,939

460

At 31 July 2022

451,595

-

204,874

328

 

Malcolm Drew Limited

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

Motor vehicles
 £

Total
£

Cost or valuation

At 1 August 2022

82,983

1,124,872

Additions

-

236,674

At 31 July 2023

82,983

1,361,546

Depreciation

At 1 August 2022

51,091

436,183

Charge for the year

6,378

52,090

At 31 July 2023

57,469

488,273

Carrying amount

At 31 July 2023

25,514

873,273

At 31 July 2022

31,892

688,689

Included within the net book value of land and buildings above is £451,360 (2022 - £451,595) in respect of freehold land and buildings and £Nil (2022 - £Nil) in respect of long leasehold land and buildings.
 

6

Stocks

2023
£

2022
£

Raw materials and consumables

957,959

519,530

7

Debtors

2023
£

2022
£

Trade debtors

28,047

7,443

Prepayments

15,845

2,277

Other debtors

-

2,674

43,892

12,394

 

Malcolm Drew Limited

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

8

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

9

84,357

78,190

Trade creditors

 

32,119

66,804

Taxation and social security

 

47,127

192,353

Accruals and deferred income

 

8,613

5,625

Other creditors

 

21,721

30,781

 

193,937

373,753

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

9

498,255

423,679

2023
£

2022
£

Due after more than five years

After more than five years by instalments

241,556

281,195

-

-

9

Loans and borrowings

Non-current loans and borrowings

2023
£

2022
£

Bank borrowings

368,722

413,297

Hire purchase contracts

129,533

10,382

498,255

423,679

Current loans and borrowings

2023
£

2022
£

Bank borrowings

46,400

44,312

Hire purchase contracts

33,074

6,995

Other borrowings

4,883

26,883

84,357

78,190

 

Malcolm Drew Limited

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

Included in the loans and borrowings are the following amounts due after more than five years:

Borrowings due after five years

The company has a bank loan totalling £385,956 (2022 £418,443) which is secured on the company freehold land and land owned personally by the director. The loan is repayable in instalments with £241,556 falling due after five years (2022 £281,195).