Company registration number 4953783 (England and Wales)
COLLINGWOOD BOAT BUILDERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
COLLINGWOOD BOAT BUILDERS LIMITED
COMPANY INFORMATION
Director
Mr A Macnaughtan
Secretary
Ms A Macnaughtan
Company number
4953783
Registered office
Trident House
105 Derby Road
Liverpool
L20 8LZ
Auditor
Whitnalls
Trident House
105 Derby Road
Liverpool
L20 8LZ
COLLINGWOOD BOAT BUILDERS LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 22
COLLINGWOOD BOAT BUILDERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -
The director presents the strategic report for the year ended 31 December 2022.
Principal activities
The principal activity of the company continued to be that of boat building.
Review of the business
The company builds canal boats for sale to individuals and business throughout the United Kingdom. It operates from purpose-built premises in Liverpool and is the largest canal boat supplier in the country. Despite the challenges of the Covid-19 pandemic and uncertainties in the UK economy, the company has managed to maintain its turnover with slightly reduced margins. The company moved to its own purpose built premises during the previous year and the director believes that margins will be restored as the build process is streamlined over forthcoming years.
Principal risks and uncertainties
The principal risks and uncertainties that the company faces is a loss of turnover as a result of a downturn in consumer confidence and economic uncertainties.
The director has considered the nature and risks of uncertainties arising and the potential impact on performance and position of the company, and is confident that the company will be able to maintain turnover and improve profit margins, in forthcoming years.
Key performance indicators
Mr A Macnaughtan
Director
COLLINGWOOD BOAT BUILDERS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
The director presents his annual report and financial statements for the year ended 31 December 2022.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £988,868. The director does not recommend payment of a further dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr A Macnaughtan
Statement of director's responsibilities
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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. He is 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.
Strategic report
In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 the company’s strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 is noted in the Strategic Report on pages 1 and 2.
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.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
COLLINGWOOD BOAT BUILDERS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
On behalf of the board
Mr A Macnaughtan
Director
19 April 2024
COLLINGWOOD BOAT BUILDERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF COLLINGWOOD BOAT BUILDERS LIMITED
- 4 -
Qualified opinion on financial statements
We have audited the financial statements of Collingwood Boat Builders Limited (the 'company') for the year ended 31 December 2022 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, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for qualified opinion
In our audit of the Collingwood Boat Builders Limited financial statements for the year ended 31 December 2022, we were unable to obtain sufficient appropriate audit evidence regarding the valuation and accuracy of work in progress (WIP) as at the year end. The company’s WIP was estimated at the year ended 31 December 2022 by the director of Collingwood Boat Builders Limited. The company’s WIP was counted on 5 January 2023, and we were able to perform necessary audit procedures to verify its existence and completeness as at 31 December 2022. However, we were unable to determine and quantify, the stock values as at 31 December 2022 due to insufficient records. As a result of this limitation in scope, the possible effects on the financial statements are material. The company’s stock valuation as at 31 December 2022, included within its balance sheet, amounted to £687,285.
The company’s year ended 31 December 2022 financial statements also include a limitation of scope relating to creditors’ balances payable by Collingwood Boat Builders Limited to trade creditors amounting to £1,798,362 as at 31 December 2022 reported within the company's balance sheet. Following an extensive review process we have not been able to verify the completeness of the year end balances, or transactions with each entity, with regards to cut-off and quantification.
In addition, were any adjustments to the WIP or trade creditors balances required, the strategic report would also need to be amended.
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 qualified opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.
COLLINGWOOD BOAT BUILDERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF COLLINGWOOD BOAT BUILDERS LIMITED
- 5 -
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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.
As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the WIP valuation in the financial statements, or the completeness of trade creditors as at 31 December 2022. We have concluded that where the other information refers to the WIP balance or trade Creditors balance or related balances such as costs, it may be materially misstated for the same reason.
Opinions on other matters prescribed by the Companies Act 2006
Except for the matter described in the basis for qualified opinion section of our report, In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In respect solely of the limitation on our work relating to stock and trade creditors, described above:
we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
we were unable to determine whether adequate accounting records had been maintained.
Except for the matters described in the basis for qualified opinion section of our report, 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 director's report.
Arising solely from the limitation of scope of our work relating to work in progress and trade creditors, referred to above:
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:
returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
COLLINGWOOD BOAT BUILDERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF COLLINGWOOD BOAT BUILDERS LIMITED
- 6 -
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.
Extent to which the audit was considered capable of detecting irregularities, including fraud
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and
the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
(i) The presentation of the Statement of Comprehensive Income, (ii) the accounting policy for revenue recognition, (iii) understatement of creditors and (iv) the valuation and impairment of stock. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
COLLINGWOOD BOAT BUILDERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF COLLINGWOOD BOAT BUILDERS LIMITED
- 7 -
Audit response to risks identfied
Our procedures to respond to risks identified included the following:
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations described above as having a direct effect on the financial statements;
enquiring of management and directors concerning actual and potential litigation and claims;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
reading minutes of board meetings and reviewing correspondence with relevant authorities where matters identified were significant;
in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
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.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Louise Casey
Senior Statutory Auditor
For and on behalf of Whitnalls
19 April 2024
ACA
Statutory Auditor
Trident House
105 Derby Road
Liverpool
L20 8LZ
COLLINGWOOD BOAT BUILDERS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
2022
2021
Notes
£
£
Turnover
3
11,066,593
10,337,075
Cost of sales
(9,424,948)
(8,619,010)
Gross profit
1,641,645
1,718,065
Administrative expenses
(801,390)
(930,952)
Other operating income
13,195
Operating profit
4
840,255
800,308
Interest payable and similar expenses
8
202
(12,053)
Amounts written off investments
9
(8,438)
-
Profit before taxation
832,019
788,255
Tax on profit
10
(158,243)
(153,936)
Profit for the financial year
673,776
634,319
The profit and loss account has been prepared on the basis that all operations are continuing operations.
COLLINGWOOD BOAT BUILDERS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 9 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
13
1,735,123
1,837,132
Current assets
Stocks
14
687,285
285,700
Debtors
15
371,119
1,931,174
Cash at bank and in hand
225,498
23,084
1,283,902
2,239,958
Creditors: amounts falling due within one year
16
(2,611,030)
(3,321,199)
Net current liabilities
(1,327,128)
(1,081,241)
Total assets less current liabilities
407,995
755,891
Creditors: amounts falling due after more than one year
17
(5,858)
(24,964)
Provisions for liabilities
Deferred tax liability
19
123,098
136,796
(123,098)
(136,796)
Net assets
279,039
594,131
Capital and reserves
Called up share capital
21
1
1
Profit and loss reserves
279,038
594,130
Total equity
279,039
594,131
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true
The financial statements were approved and signed by the director and authorised for issue on 19 April 2024
Mr A Macnaughtan
Director
Company registration number 4953783 (England and Wales)
COLLINGWOOD BOAT BUILDERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2021
1
559,811
559,812
Year ended 31 December 2021:
Profit and total comprehensive income
-
634,319
634,319
Dividends
11
-
(600,000)
(600,000)
Balance at 31 December 2021
1
594,130
594,131
Year ended 31 December 2022:
Profit and total comprehensive income
-
673,776
673,776
Dividends
11
-
(988,868)
(988,868)
Balance at 31 December 2022
1
279,038
279,039
COLLINGWOOD BOAT BUILDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
1
Accounting policies
Company information
Collingwood Boat Builders Limited is a private company limited by shares incorporated in England and Wales. The registered office is Trident House, 105 Derby Road, Liverpool, L20 8LZ.
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Gadbrook Holdings limited. These consolidated financial statements are available from its registered office, Trident House, 105 Derby Road, Liverpool, L20 8LZ.
1.2
Going concern
Atruet the time of approving the financial statements, and with support from the parent company Gadbrook Holdings Limited, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
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 VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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.
COLLINGWOOD BOAT BUILDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 12 -
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
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 land and buildings
5% straight line basis
Plant and equipment
25% reducing balance basis
Fixtures and fittings
25% reducing balance basis
Motor vehicles
25% reducing balance basis
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
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is attributed to stock based upon director judgement and experience. They factor in costs, level of completion and expected revenues in their calculation.
COLLINGWOOD BOAT BUILDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -
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.
1.8
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.
1.9
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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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.
COLLINGWOOD BOAT BUILDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 14 -
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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
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.
1.10
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.
COLLINGWOOD BOAT BUILDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 15 -
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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
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 are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
1.15
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.
COLLINGWOOD BOAT BUILDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 16 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
Useful economic lives of fixed assets
The company depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes. Judgement is applied by the directors when determining the residual values for plant, machinery and equipment. When determining the residual value management assesses the amount that the company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.
Recoverability of debtors
Bad debts are recognised where there are indicators of non-recoverability, and appropriate action has been taken to recover the debt unsuccessfully. When assessing recoverability, the directors consider factors such as the ageing of the receivables, past experience of recoverability, and the credit profile of individual groups of customers.
Impairment of fixed assets and investments
Where an indication of impairment exists, the directors will carry out an impairment review to determine the recoverable amount, which is the higher of fair value less cost to sell and value in use. The value in use calculation requires the directors to estimate the future cash flows expected to arise from the asset or the cash generating unit and a suitable discount rate in order to calculate present value.
Stock valuation
The directors are responsible for the valuation of work in progress based on their judgement and experience. The directors assess the work in progress and consider factors such as level of completion, costs incurred and expected revenues. However, this is a highly subjective area that relies on director judgement and has no formal process or calculation. Consequently, it has been necessary to qualify this area of the accounts.
3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Sale of goods
11,066,593
10,337,075
COLLINGWOOD BOAT BUILDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
3
Turnover and other revenue
(Continued)
- 17 -
2022
2021
£
£
Other revenue
Grants received
-
13,195
All sales during the period were arising within the UK.
4
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(13,195)
Depreciation of owned tangible fixed assets
142,858
158,822
Depreciation of tangible fixed assets held under finance leases
14,745
19,660
Operating lease charges
-
195,000
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
25,220
21,610
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Production
55
58
Administration and support
3
4
Total
58
62
COLLINGWOOD BOAT BUILDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
6
Employees
(Continued)
- 18 -
Their aggregate remuneration comprised:
2022
2021
£
£
Wages and salaries
1,897,863
1,913,474
Social security costs
198,393
187,035
Pension costs
50,270
51,648
2,146,526
2,152,157
7
Director's remuneration
2022
2021
£
£
Remuneration for qualifying services
200
5,200
8
Interest payable and similar expenses
2022
2021
£
£
Interest on bank overdrafts and loans
315
-
Interest on finance leases and hire purchase contracts
1,317
1,317
Other interest
(1,834)
10,736
(202)
12,053
9
Amounts written off investments
2022
2021
£
£
Amounts written off current loans
(8,438)
-
10
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
171,941
46,189
Deferred tax
Origination and reversal of timing differences
(13,698)
107,747
Total tax charge
158,243
153,936
COLLINGWOOD BOAT BUILDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
10
Taxation
(Continued)
- 19 -
The actual charge 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:
2022
2021
£
£
Profit before taxation
832,019
788,255
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
158,084
149,768
Tax effect of expenses that are not deductible in determining taxable profit
5,218
44,802
Tax effect of income not taxable in determining taxable profit
(4,814)
Permanent capital allowances in excess of depreciation
(245)
(40,634)
Taxation charge for the year
158,243
153,936
11
Dividends
2022
2021
£
£
Final paid
988,868
600,000
12
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2022 and 31 December 2022
25,000
Amortisation and impairment
At 1 January 2022 and 31 December 2022
25,000
Carrying amount
At 31 December 2022
At 31 December 2021
COLLINGWOOD BOAT BUILDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 20 -
13
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2022
1,660,414
391,964
11,851
152,800
2,217,029
Additions
51,298
4,296
55,594
At 31 December 2022
1,711,712
391,964
16,147
152,800
2,272,623
Depreciation and impairment
At 1 January 2022
109,567
180,622
9,974
79,734
379,897
Depreciation charged in the year
85,086
52,836
1,414
18,267
157,603
At 31 December 2022
194,653
233,458
11,388
98,001
537,500
Carrying amount
At 31 December 2022
1,517,059
158,506
4,759
54,799
1,735,123
At 31 December 2021
1,550,847
211,342
1,877
73,066
1,837,132
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts is as follows:
2022
2021
£
£
Motor vehicles
44,235
58,980
14
Stocks
2022
2021
£
£
Finished goods and goods for resale
687,285
285,700
15
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
303,866
21,336
Amounts owed by group undertakings
1,838,868
Other debtors
36,151
67,298
Prepayments and accrued income
31,102
3,672
371,119
1,931,174
COLLINGWOOD BOAT BUILDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 21 -
16
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Obligations under finance leases
18
19,106
19,565
Trade creditors
1,798,362
1,707,836
Corporation tax
347,528
655,587
Other taxation and social security
378,661
902,314
Other creditors
10,825
11,335
Accruals and deferred income
56,548
24,562
2,611,030
3,321,199
17
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Obligations under finance leases
18
5,858
24,964
18
Finance lease obligations
2022
2021
Future minimum lease payments due under finance leases:
£
£
Within one year
19,106
19,565
In two to five years
5,858
24,964
24,964
44,529
Finance lease payments represent rentals payable by the company for various motor vehicles. 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 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
123,098
136,796
COLLINGWOOD BOAT BUILDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
19
Deferred taxation
(Continued)
- 22 -
2022
Movements in the year:
£
Liability at 1 January 2022
136,796
Credit to profit or loss
(13,698)
Liability at 31 December 2022
123,098
20
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
50,270
51,648
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.
21
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Class A shares of £1 each
1
1
1
1
22
Directors' transactions
Dividends totalling £0 (2021 - £0) were paid in the year in respect of shares held by the company's directors.
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Mr A Macnaughtan
-
61,285
346,614
(352,636)
55,263
61,285
346,614
(352,636)
55,263
23
Ultimate controlling party
The Company's immediate parent is Gadbrook Holdings Limited, incorporated in England.
2022-12-312022-01-01falseCCH SoftwareCCH Accounts Production 2023.200Mr A MacnaughtanMs A Macnaughtan67377649537832022-01-012022-12-314953783bus:Director12022-01-012022-12-314953783bus:CompanySecretary12022-01-012022-12-314953783bus:RegisteredOffice2022-01-012022-12-3149537832022-12-3149537832021-01-012021-12-314953783core:RetainedEarningsAccumulatedLosses2021-01-012021-12-314953783core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3149537832021-12-314953783core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-314953783core:PlantMachinery2022-12-314953783core:FurnitureFittings2022-12-314953783core:MotorVehicles2022-12-314953783core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-12-314953783core:PlantMachinery2021-12-314953783core:FurnitureFittings2021-12-314953783core:MotorVehicles2021-12-314953783core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-314953783core:CurrentFinancialInstrumentscore:WithinOneYear2021-12-314953783core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-314953783core:Non-currentFinancialInstrumentscore:AfterOneYear2021-12-314953783core:CurrentFinancialInstruments2022-12-314953783core:CurrentFinancialInstruments2021-12-314953783core:ShareCapital2022-12-314953783core:ShareCapital2021-12-314953783core:RetainedEarningsAccumulatedLosses2022-12-314953783core:RetainedEarningsAccumulatedLosses2021-12-314953783core:ShareCapital2020-12-314953783core:RetainedEarningsAccumulatedLosses2020-12-314953783core:Goodwill2022-01-012022-12-314953783core:LandBuildingscore:LongLeaseholdAssets2022-01-012022-12-314953783core:PlantMachinery2022-01-012022-12-314953783core:FurnitureFittings2022-01-012022-12-314953783core:MotorVehicles2022-01-012022-12-31495378312022-01-012022-12-31495378312021-01-012021-12-314953783core:UKTax2022-01-012022-12-314953783core:UKTax2021-01-012021-12-314953783core:Goodwill2021-12-314953783core:Goodwill2022-12-314953783core:Goodwill2021-12-314953783core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-12-314953783core:PlantMachinery2021-12-314953783core:FurnitureFittings2021-12-314953783core:MotorVehicles2021-12-3149537832021-12-314953783core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-01-012022-12-314953783core:Non-currentFinancialInstruments2022-12-314953783core:Non-currentFinancialInstruments2021-12-314953783core:WithinOneYear2022-12-314953783core:WithinOneYear2021-12-314953783core:BetweenTwoFiveYears2022-12-314953783core:BetweenTwoFiveYears2021-12-314953783bus:PrivateLimitedCompanyLtd2022-01-012022-12-314953783bus:FRS1022022-01-012022-12-314953783bus:Audited2022-01-012022-12-314953783bus:FullAccounts2022-01-012022-12-31xbrli:purexbrli:sharesiso4217:GBP