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REGISTERED NUMBER: 00366790 (England and Wales)












STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2023

FOR

BURROWS & SMITH LIMITED

BURROWS & SMITH LIMITED (REGISTERED NUMBER: 00366790)

CONTENTS OF THE FINANCIAL STATEMENTS
for the year ended 31 October 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Statement of Comprehensive Income 6

Balance Sheet 7

Statement of Changes in Equity 8

Notes to the Financial Statements 9


BURROWS & SMITH LIMITED

COMPANY INFORMATION
for the year ended 31 October 2023







DIRECTORS: C R F Shield
A Dyke





SECRETARY: C R F Shield





REGISTERED OFFICE: 365 Fosse Way
Syston
Leicester
Leicestershire
LE7 1NL





REGISTERED NUMBER: 00366790 (England and Wales)





AUDITORS: Magma Audit LLP (part of the Dains Group)
Chartered Accountants
Statutory Auditor
Unit 2, Charnwood Edge Business Park
Syston Road
Leicestershire
LE7 4UZ

BURROWS & SMITH LIMITED (REGISTERED NUMBER: 00366790)

STRATEGIC REPORT
for the year ended 31 October 2023


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

The principal activity of the year under review was that of the production machining of ferrous castings.

REVIEW OF BUSINESS
The business has performed reasonably this year, despite some mixed volumes from its key customers and ongoing Covid pandemic disruption. General industry volumes have been unpredictable and pricing and margins have been under pressure from labour and energy cost increases. The business has kept a tight control of costs throughout this period and the Directors are pleased to report very high levels of operational performance to its customers.

The ongoing pandemic has remained a challenge to manage but its impact has lessened through the period. The Directors are pleased with how the company has managed the risk to the workforce but also supported the customers at the same time.

Post year end the business has seen a changing customer portfolio with growth in certain areas and the phasing out of businesses in other more traditional areas. Turnover is reduced but the business is successfully winning profitable business to replace the historical work and as a result of this and the growth of new business the company looks to the future with some confidence.

PRINCIPAL RISKS AND UNCERTAINTIES
The key risks and uncertainties affecting the company annually are considered to relate to competition from overseas suppliers, global demand for our customer products and energy and raw material costs. The resolution of the Brexit position has removed one of the major risks to the business and it is hoped that this will prove positive long term. The company is well positioned to meet these challenges with a capable supply chain, strong workforce and management team and growing reserves to meet these challenges allowing continual investment into the future.

FINANCIAL KEY PERFORMANCE INDICATORS
The Company's key performance indicators are as follows:

Sales
The accounts report a 29.13% decrease (2022: 32.78%) in the level of sales over the previous financial year.

Gross Margin
Gross margin for the year has decreased from 23.12% to 21.16%.


OTHER KEY PERFORMANCE INDICATORS
There are no significant non-financial key performance indicators which are relevant to understanding the position of the business.

ON BEHALF OF THE BOARD:





C R F Shield - Director


30 July 2024

BURROWS & SMITH LIMITED (REGISTERED NUMBER: 00366790)

REPORT OF THE DIRECTORS
for the year ended 31 October 2023


The directors present their report with the financial statements of the company for the year ended 31 October 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of production machining of ferrous castings.

DIVIDENDS
Interim dividends were paid amounting to NIL (2022: NIL) The directors recommend that no final dividends will be paid.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 November 2022 to the date of this report.

C R F Shield
A Dyke

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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:

-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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Magma Audit LLP (part of the Dains Group), was appointed as auditors during the year.

ON BEHALF OF THE BOARD:





C R F Shield - Director


30 July 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BURROWS & SMITH LIMITED


Opinion
We have audited the financial statements of Burrows & Smith Limited (the 'company') for the year ended 31 October 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of 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:
-give a true and fair view of the state of the company's affairs as at 31 October 2023 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 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or 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 directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BURROWS & SMITH LIMITED


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.

Auditors' 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 a Report of the Auditors 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:

Based on our understanding of the company and the industry, we identified the principal risks of non-compliance with laws and regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements such as Companies Act 2006. We evaluated managements incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in accounting estimates. Audit procedures performed included:

- discussions with management including consideration of known or suspected instances of non-compliance with
laws and regulations and fraud;
- challenging assumptions made by management in their significant accounting estimates and judgements
formed;
- identifying and testing journal entries, in particular any journal entries posted with unusual account combinations,
journal entries crediting cash and journal entries with specific defined descriptions.

There are inherent limitations in the audit procedures described above. we are less likely to become aware of instances in the financial statements. also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, by for example, forgery or intentional misrepresentation, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.




Luke Turner FCA FCCA (Senior Statutory Auditor)
for and on behalf of Magma Audit LLP (part of the Dains Group)
Chartered Accountants
Statutory Auditor
Unit 2, Charnwood Edge Business Park
Syston Road
Leicestershire
LE7 4UZ

30 July 2024

BURROWS & SMITH LIMITED (REGISTERED NUMBER: 00366790)

STATEMENT OF COMPREHENSIVE
INCOME
for the year ended 31 October 2023

2023 2022
Notes £    £   

TURNOVER 4 5,017,119 7,079,380

Cost of sales (3,955,665 ) (5,442,600 )
GROSS PROFIT 1,061,454 1,636,780

Administrative expenses (1,322,457 ) (1,492,702 )
(261,003 ) 144,078

Other operating income 5 - 97,773
OPERATING (LOSS)/PROFIT 7 (261,003 ) 241,851

Interest receivable and similar income 48 68
(260,955 ) 241,919

Interest payable and similar expenses 8 (43,044 ) (1,137 )
(LOSS)/PROFIT BEFORE TAXATION (303,999 ) 240,782

Tax on (loss)/profit 9 4,681 (354,886 )
LOSS FOR THE FINANCIAL YEAR (299,318 ) (114,104 )

OTHER COMPREHENSIVE INCOME

Income tax relating to other comprehensive
income

-

-
OTHER COMPREHENSIVE INCOME FOR
THE YEAR, NET OF INCOME TAX

-

-
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

(299,318

)

(114,104

)

BURROWS & SMITH LIMITED (REGISTERED NUMBER: 00366790)

BALANCE SHEET
31 October 2023

2023 2022
Notes £    £   
FIXED ASSETS
Tangible assets 10 582,656 510,689

CURRENT ASSETS
Stocks 11 580,528 723,577
Debtors 12 5,723,748 6,811,481
Cash at bank 159,642 1,432,203
6,463,918 8,967,261
CREDITORS
Amounts falling due within one year 13 (1,224,666 ) (3,515,012 )
NET CURRENT ASSETS 5,239,252 5,452,249
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,821,908

5,962,938

CREDITORS
Amounts falling due after more than one
year

14

(158,288

)

-
NET ASSETS 5,663,620 5,962,938

CAPITAL AND RESERVES
Called up share capital 17 106,376 106,376
Retained earnings 18 5,557,244 5,856,562
SHAREHOLDERS' FUNDS 5,663,620 5,962,938

The financial statements were approved by the Board of Directors and authorised for issue on 30 July 2024 and were signed on its behalf by:





C R F Shield - Director


BURROWS & SMITH LIMITED (REGISTERED NUMBER: 00366790)

STATEMENT OF CHANGES IN EQUITY
for the year ended 31 October 2023

Called up Fair
share Retained value Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 November 2021 106,376 3,753,694 2,216,972 6,077,042

Changes in equity
Total comprehensive income - (114,104 ) - (114,104 )
Transfer - 2,216,972 (2,216,972 ) -
Balance at 31 October 2022 106,376 5,856,562 - 5,962,938

Changes in equity
Total comprehensive income - (299,318 ) - (299,318 )
Balance at 31 October 2023 106,376 5,557,244 - 5,663,620

BURROWS & SMITH LIMITED (REGISTERED NUMBER: 00366790)

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 October 2023


1. STATUTORY INFORMATION

Burrows & Smith Limited is a limited company, registered in England and Wales. Its registered office address is 365 Fosse Way, Syston, Leicestershire, LE7 1NL and the registered number is 00366790.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The presentation currency of the financial statements is the Pound Sterling (£).

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 33.7.

This information is included in the consolidated financial statements of Burrows and Smith Holdings Limited as at 31 October 2023.

Going concern
At 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.

Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

Revenue is recognised in the period in which the goods are despatched.

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:

Improvements to property 2.5% on a reducing balance basis
Plant & machinery20% on a reducing balance basis or over 7 years on a straight line basis
Motor vehicles25% on a reducing balance basis
Fixtures & fittings25% on a 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.

Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

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.


BURROWS & SMITH LIMITED (REGISTERED NUMBER: 00366790)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 October 2023


2. ACCOUNTING POLICIES - continued
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.

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.

Financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Taxation
The tax expense for the year comprises current and deferred tax.

Tax is recognised in profit or loss except that a change attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:
- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

BURROWS & SMITH LIMITED (REGISTERED NUMBER: 00366790)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 October 2023


2. ACCOUNTING POLICIES - continued

Hire purchase contracts
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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 the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Pension costs and other post-retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Finance costs
Finance costs are charge to the Profit and Loss Account over the term of the debt using the effective interest method so that the amounts charged is at a consistent rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Operating leases
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Cash and cash equivalents
Cash at bank and in hand 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.

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.

3. CRITICAL ACCOUNTING 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.

Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:


BURROWS & SMITH LIMITED (REGISTERED NUMBER: 00366790)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 October 2023

Depreciation of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual lives of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 11 for the carrying amount of the assets and the tangible fixed assets accounting policy for the useful economic lives for each class of asset.

Stock provisioning
Slow moving stock provisions are based on estimates of the likely recoverable amounts.

4. TURNOVER

The turnover and loss (2022 - profit) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 4,336,219 6,221,284
Rest of the World 680,900 858,096
5,017,119 7,079,380

5. OTHER OPERATING INCOME
2023 2022
£    £   
Rents received - 97,773

6. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,033,224 984,627
Social security costs 102,347 112,119
Other pension costs 22,223 24,381
1,157,794 1,121,127

The average number of employees during the year was as follows:
2023 2022

Production and technical 24 29
Management and administration 10 15
34 44

2023 2022
£    £   
Directors' remuneration 101,713 111,139
Directors' pension contributions to money purchase schemes 1,321 2,086

BURROWS & SMITH LIMITED (REGISTERED NUMBER: 00366790)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 October 2023


7. OPERATING (LOSS)/PROFIT

The operating loss (2022 - operating profit) is stated after charging/(crediting):

2023 2022
£    £   
Depreciation - owned assets 257,890 442,550
Depreciation - assets on hire purchase contracts - 47,464
Profit on disposal of fixed assets (5,660 ) (416,677 )
Auditors' remuneration 18,633 11,200
Foreign exchange differences 36,757 18,689

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
HMRC interest 32,130 598
Hire purchase interest 10,914 539
43,044 1,137

9. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the loss for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax - 578,886
Adjustment to prior years (4,681 ) -
Total current tax (4,681 ) 578,886

Deferred tax - (224,000 )
Tax on (loss)/profit (4,681 ) 354,886

BURROWS & SMITH LIMITED (REGISTERED NUMBER: 00366790)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 October 2023


9. TAXATION - continued

Reconciliation of total tax (credit)/charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
(Loss)/profit before tax (303,999 ) 240,782
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
19% (2022 - 19%)

(57,760

)

45,749

Effects of:
Expenses not deductible for tax purposes 2,220 8,097
Income not taxable for tax purposes 66,372 117,170
Capital allowances in excess of depreciation (43,708 ) (19,238 )
Utilisation of tax losses 31,836 -
Adjustments to tax charge in respect of previous periods (4,681 ) -

R&D expenditure - (20,021 )
Deferred tax on revaluation of properties - (224,000 )
Chargeable gain - 447,129
Balancing charges 1,040 -
Total tax (credit)/charge (4,681 ) 354,886

Tax effects relating to effects of other comprehensive income

2022
Gross Tax Net
£    £    £   
Gain on revaluation

10. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor
machinery fittings vehicles Totals
£    £    £    £   
COST
At 1 November 2022 11,126,535 507,560 95,929 11,730,024
Additions 338,257 - - 338,257
Disposals - - (17,000 ) (17,000 )
At 31 October 2023 11,464,792 507,560 78,929 12,051,281
DEPRECIATION
At 1 November 2022 10,644,338 506,750 68,247 11,219,335
Charge for year 252,593 202 5,095 257,890
Eliminated on disposal - - (8,600 ) (8,600 )
At 31 October 2023 10,896,931 506,952 64,742 11,468,625
NET BOOK VALUE
At 31 October 2023 567,861 608 14,187 582,656
At 31 October 2022 482,197 810 27,682 510,689

BURROWS & SMITH LIMITED (REGISTERED NUMBER: 00366790)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 October 2023


10. TANGIBLE FIXED ASSETS - continued

The net book value of assets held under finance leases or hire purchases contract included above,
are as follows

20232022
£   £   
Plant and Machinery 330,760-
Motor Vehicles 7,34718,562

The disposals of assets held under finance leases or hire purchases contract, included above are as follows:



20232022
£   £   
Motor vehicles(17,000)-

The depreciation charge for the year on assets held under finance leases or hire purchases contract, included above are as follows:



20232022
£   £   
Plant and machinery 44,697-
Motor vehicles2,4506,188
Motor vehicles (eliminated on disposal)(8,600)-

11. STOCKS
2023 2022
£    £   
Raw materials 298,645 653,423
Finished goods 281,883 70,154
580,528 723,577

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,076,739 2,254,156
Amounts owed by group undertakings 4,631,142 4,539,327
Prepayments and accrued income 15,867 17,998
5,723,748 6,811,481

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 15) 103,562 7,622
Trade creditors 390,957 2,379,811
Corporation tax 602,641 786,599
Social security and other taxes 56,749 274,542
Other creditors 79 120
Accruals and deferred income 70,678 66,318
1,224,666 3,515,012

BURROWS & SMITH LIMITED (REGISTERED NUMBER: 00366790)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 October 2023


14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 15) 158,288 -

15. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 103,562 7,622
Between one and five years 158,288 -
261,850 7,622

Non-cancellable operating leases
2023 2022
£    £   
Within one year 120,000 -
Between one and five years 360,000 -
480,000 -

Finance lease payments represent rentals payable by the company for certain tangible fixed assets. Leases include plant and machinery on which capital and interest is payable. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

16. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Hire purchase contracts 261,850 7,622

The hire purchase contracts are secured on the assets concerned.

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
100,000 Ordinary £1 100,000 100,000
6,376 Non cumulative preference
shares £1 6,376 6,376
106,376 106,376

The company's ordinary shares carry full rights with respect to voting, dividends and distributions.

BURROWS & SMITH LIMITED (REGISTERED NUMBER: 00366790)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 October 2023


18. RESERVES

Fair value reserve
The fair value reserve reflects the surplus on the revaluation of investment property.

Retained earnings
Retained earnings includes all current and prior period retained profits and losses less dividends paid.

19. PENSION COMMITMENTS

The company operates a defined contributions scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £22,223 (2022 - £24,381). Contributions totalling £Nil (2022 - £Nil) were payable to the fund at the balance sheet date and are included within creditors.

20. RELATED PARTY DISCLOSURES

During the year the company had transactions with the following related companies, all ultimately controlled by C R F Shield:


2023 2022
£ £

Purchases from Shield Engineering (Syston) Limited (126,958 ) -
Sales to Shield Engineering (Syston) Limited 55,649 7,548
Amounts due from/(to) Shield Engineering (Syston) Limited 3,866,200 3,768,468
Sales to O.L.D Engineering Company Limited 9,004 -
Purchases from O.L.D Engineering Company Limited - -
Amounts due from O.L.D Engineering Company Limited 192 12,300
Sales to Shield Properties Limited 356
Purchases from Shield Properties Limited (110,000 )
Amounts due from/(to) Shield Properties Limited 299,592 424,616
Sales to Spaw Engineering Limited 34,423 -
Purchases from Spaw Engineering Limited - -
Amounts due from/(to) Spaw Engineering Limited 35,536 12,989
Sales to Bridge Aluminium Limited 6,233
Purchases from Bridge Aluminium Limited (248,867 ) (74,553 )
Amounts due from/(to) Bridge Aluminium Limited 403,963 295,755
Amounts due from/(to) R A Shield Holdings Limited 25,200 25,200
Sales to Woolley GMC Engineering Company Limited 1,890 -
Purchases from Woolley GMC Engineering Company Limited - (644,343 )
Amounts due from/(to) Woolley GMC Engineering Company Limited 306 -

Key management personnel consists solely of the directors.

21. ULTIMATE CONTROLLING PARTY

The company is controlled by its parent company, Burrows & Smith Holdings Limited which is controlled by C R F Shield.