Registered number
09273506
Element 1 Engineering Limited
Unaudited Filleted Accounts
31 October 2023
Element 1 Engineering Limited
Registered number: 09273506
Balance Sheet
as at 31 October 2023
Notes 2023 2022
£ £
Fixed assets
Intangible assets 3 45,427 47,748
Tangible assets 4 978,127 658,416
1,023,554 706,164
Current assets
Stocks 182,350 148,353
Debtors 5 2,239,000 1,159,029
Investments held as current assets 6 210,936 211,421
Cash at bank and in hand 1,757,089 1,998,281
4,389,375 3,517,084
Creditors: amounts falling due within one year 7 (1,272,347) (882,091)
Net current assets 3,117,028 2,634,993
Total assets less current liabilities 4,140,582 3,341,157
Creditors: amounts falling due after more than one year 8 (134,915) (51,526)
Net assets 4,005,667 3,289,631
Capital and reserves
Called up share capital 100 100
Revaluation reserve - 68,170
Profit and loss account 4,005,567 3,221,361
Shareholders' funds 4,005,667 3,289,631
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
Mr. B. Mahmood
Director
Approved by the board on 2 July 2024
Element 1 Engineering Limited
Notes to the Accounts
for the year ended 31 October 2023
1 Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Intangible fixed assets
Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses.
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Leasehold land and buildings over 5 years
Plant and machinery over 5 years
Fixtures, fittings, tools and equipment over 4 years
Investments
Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that 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, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Provisions
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
Foreign currency translation
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
Leased assets
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
2 Employees 2023 2022
Number Number
Average number of persons employed by the company 22 22
3 Intangible fixed assets £
Goodwill:
Cost
At 1 November 2022 53,108
Additions 3,322
Disposals -
At 31 October 2023 56,430
Amortisation
At 1 November 2022 5,360
Provided during the year 5,643
On disposals -
At 31 October 2023 11,003
Net book value
At 31 October 2023 45,427
At 31 October 2022 47,748
Goodwill is being written off in equal annual instalments over its estimated economic life of 10 years.
4 Tangible fixed assets
Land and buildings Plant and machinery Motor vehicles Total
£ £ £ £
Cost
At 1 November 2022 52,558 131,033 873,175 1,056,766
Additions 7,800 39,328 643,202 690,330
Surplus on revaluation - - - -
Disposals - - (135,826) (135,826)
At 31 October 2023 60,358 170,361 1,380,551 1,611,270
Depreciation
At 1 November 2022 16,953 96,592 284,805 398,350
Charge for the year 6,036 24,090 276,111 306,237
Surplus on revaluation - - - -
On disposals - - (71,444) (71,444)
At 31 October 2023 22,989 120,682 489,472 633,143
Net book value
At 31 October 2023 37,369 49,679 891,079 978,127
At 31 October 2022 35,605 34,441 588,370 658,416
5 Debtors 2023 2022
£ £
Trade debtors 1,060,981 362,196
Deferred tax asset 35,236 9,109
Other debtors 1,142,783 787,724
2,239,000 1,159,029
6 Investments held as current assets 2023 2022
£ £
Fair value
Unlisted investments 210,936 211,421
210,936 211,421
Increase/(decrease) in fair value included in the profit and loss account for the financial year
Listed investments - -
Unlisted investments - (128,700)
- (128,700)
7 Creditors: amounts falling due within one year 2023 2022
£ £
Bank loans and overdrafts 2,124 528
Obligations under finance lease and hire purchase contracts 15,943 25,193
Trade creditors 845,072 456,084
Taxation and social security costs 350,067 331,813
Other creditors 59,141 68,473
1,272,347 882,091
8 Creditors: amounts falling due after one year 2023 2022
£ £
Obligations under finance lease and hire purchase contracts 134,915 51,526
134,915 51,526
9 Loans 2023 2022
£ £
Creditors include:
Instalments falling due for payment after more than five years - -
- -
Secured bank loans 150,857 76,719
Security is given in the form of the motor vehicles that are being financed by the company.
10 Other information
Element 1 Engineering Limited is a private company limited by shares and incorporated in England. Its registered office is:
11 George Street West
Luton
Bedfordshire
LU1 2BJ
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