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Registered number: 01083975









HOLROYD COMPONENTS LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2023

 
HOLROYD COMPONENTS LIMITED
 

COMPANY INFORMATION


Director
D C Taylor 




Registered number
01083975



Registered office
Shirehill Industrial Estate
Saffron Walden

Essex

CB11 3AQ




Independent auditors
Price Bailey LLP
Chartered Accountants & Statutory Auditors

Causeway House

1 Dane Street

Bishop's Stortford

Hertfordshire

CM23 3BT





 
HOLROYD COMPONENTS LIMITED
 

CONTENTS



Page
Strategic Report
 
1
Director's Report
 
2 - 3
Independent Auditors' Report
 
4 - 6
Statement of Income and Retained Earnings
 
7
Statement of Financial Position
 
8
Statement of Cash Flows
 
9
Analysis of Net Debt
 
10
Notes to the Financial Statements
 
11 - 25


 
HOLROYD COMPONENTS LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023

Introduction
 
The Company is engaged in the business of manufacturing heating elements.

Business review
 
Holroyd is a firmly established business with many elements of risk management in its business assurance systems to maintain their financial security and place in the market.
The company has had another successful year and is confident about prospects for 2024.

Principal risks and uncertainties
 
Risks and uncertainties mainly relate to market share and non-payment; these are controlled by market analysis and strict credit control. Other risks are addressed by continual monitoring, root cause analysis and management reviews to action corrective and preventive actions. This information is evident and provided in the minutes of the Company’s Annual Management Review that covers the continual improvement of business, process efficiency, employee, health, safety, environmental and social aspects.

Financial key performance indicators
 
The principal financial goals of the Company are growth, profitability and cash generation.
The Director is disappointed to note the decrease in gross margin from 50.0% to 48.1% which primarily is a result of increased materials prices suffered in the year.
Distribution expenses have decreased by 9.8% however, administrative expenses have increased by 23.1% and turnover has decreased by 2.8% leading to an overall decrease in profit before tax of 18.9%.


This Report was approved by the Director..



D C Taylor
Director

Date: 5 July 2024

Page 1

 
HOLROYD COMPONENTS LIMITED
 

 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023

The Director presents his report and the financial statements for the year ended 30 November 2023.

Results and dividends

The profit for the year, after taxation, amounted to £3,116,826 (2022 - £4,242,315).

The Director does not recommend the payment of a final dividend.

Director

The Director who served during the year was:

D C Taylor 

Future developments

The Director anticipates no significant changes in the Company's activities in the foreseeable future.

Disclosure of information to auditors

The Director at the time when this Director's Report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company's auditors are unaware, and

he has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

Under section 487(2) of the Companies Act 2006Price Bailey LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

Page 2

 
HOLROYD COMPONENTS LIMITED
 

 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023

Director's responsibilities statement

The Director is responsible for preparing the Strategic Report, the Director's 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable him to ensure that the financial statements comply with the Companies Act 2006He 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.

This report was approved by the board and signed on its behalf.
 





D C Taylor
Director

Date: 5 July 2024

Page 3

 
HOLROYD COMPONENTS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HOLROYD COMPONENTS LIMITED
 

Opinion


We have audited the financial statements of Holroyd Components Limited (the 'Company') for the year ended 30 November 2023, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position, the Statement of Cash Flows and the related notes, including a summary of significant accounting policiesThe 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 30 November 2023 and of its profit 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 United Kingdom, including the Financial Reporting Council'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 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.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Director is responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 4

 
HOLROYD COMPONENTS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HOLROYD COMPONENTS LIMITED (CONTINUED)


Opinion 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 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 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.


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:


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 Director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Director's Responsibilities Statement set out on page 3, 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 have no realistic alternative but to do so.


Page 5

 
HOLROYD COMPONENTS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HOLROYD COMPONENTS LIMITED (CONTINUED)


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 an Auditors' 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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- Enquiry of management around actual and potential litigation and claims, and any known instances
 of non-compliance;
- Performing audit work over the risk of management override of controls, including testing of journal
 entries and other adjustments for appropriateness, evaluating the business rationale of significant
   transactions outside the normal course of business and reviewing accounting estimates for bias; and
-  Reviewing our work throughout the audit file for evidence of non-compliance.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditors' Report.


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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.



Paul Cullen (Senior Statutory Auditor)
  
for and on behalf of
Price Bailey LLP
 
Chartered Accountants
Statutory Auditors
  
Causeway House
1 Dane Street
Bishop's Stortford
Hertfordshire
CM23 3BT

30 July 2024
Page 6

 
HOLROYD COMPONENTS LIMITED
 

STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 NOVEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
16,592,484
17,071,677

Cost of sales
  
(8,611,316)
(8,540,758)

Gross profit
  
7,981,168
8,530,919

Distribution costs
  
(549,737)
(609,295)

Administrative expenses
  
(3,358,293)
(2,728,621)

Other operating income
 5 
19,789
2,571

Operating profit
 6 
4,092,927
5,195,574

Interest receivable and similar income
 10 
159,452
11,414

Interest payable and similar expenses
 11 
(32,798)
(504)

Profit before tax
  
4,219,581
5,206,484

Tax on profit
 12 
(1,102,755)
(964,169)

Profit after tax
  
3,116,826
4,242,315

  

  

Retained earnings at the beginning of the year
  
20,875,937
16,633,622

Profit for the year
  
3,116,826
4,242,315

Dividends declared and paid
  
(11,150,000)
-

Retained earnings at the end of the year
  
12,842,763
20,875,937

The notes on pages 11 to 25 form part of these financial statements.

Page 7

 
HOLROYD COMPONENTS LIMITED
REGISTERED NUMBER: 01083975

STATEMENT OF FINANCIAL POSITION
AS AT 30 NOVEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 14 
2,686,885
3,032,668

Investments
 15 
7,081
7,081

  
2,693,966
3,039,749

Current assets
  

Stocks
 16 
710,228
497,670

Debtors: amounts falling due within one year
 17 
3,485,074
6,022,020

Current asset investments
 18 
3,000,000
3,350,000

Cash at bank and in hand
 19 
5,292,190
9,369,314

  
12,487,492
19,239,004

Creditors: amounts falling due within one year
 20 
(1,722,184)
(957,980)

Net current assets
  
 
 
10,765,308
 
 
18,281,024

Total assets less current liabilities
  
13,459,274
21,320,773

Provisions for liabilities
  

Deferred tax
 22 
(316,409)
(369,734)

Other provisions
 23 
(300,000)
(75,000)

  
 
 
(616,409)
 
 
(444,734)

Net assets
  
12,842,865
20,876,039


Capital and reserves
  

Called up share capital 
 24 
102
102

Profit and loss account
  
12,842,763
20,875,937

  
12,842,865
20,876,039


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 5 July 2024.




D C Taylor
Director

The notes on pages 11 to 25 form part of these financial statements.

Page 8

 
HOLROYD COMPONENTS LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
3,116,826
4,242,315

Adjustments for:

Depreciation of tangible assets
548,257
611,073

(Profit)/loss on disposal of tangible assets
14,719
(6,518)

Interest paid
32,798
504

Interest received
(159,452)
(11,414)

Taxation charge
1,102,755
964,169

(Increase)/decrease in stocks
(212,558)
2,409

(Increase) in debtors
(3,440,761)
(1,449,431)

Increase/(decrease) in creditors
522,528
(166,826)

Increase in provisions
225,000
75,000

Corporation tax (paid)
(890,800)
(616,188)

Net cash generated from operating activities

859,312
3,645,093


Cash flows from investing activities

Purchase of tangible fixed assets
(253,757)
(878,336)

Sale of tangible fixed assets
3,667
6,900

Purchase of short-term unlisted investments
(3,000,000)
-

Interest received
159,452
11,414

Net cash from investing activities

(3,090,638)
(860,022)

Cash flows from financing activities

Dividends paid
(5,163,000)
-

Interest paid
(32,798)
(504)

Net cash used in financing activities
(5,195,798)
(504)

Net (decrease)/increase in cash and cash equivalents
(7,427,124)
2,784,567

Cash and cash equivalents at beginning of year
12,719,314
9,934,747

Cash and cash equivalents at the end of year
5,292,190
12,719,314


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
5,292,190
9,369,314

Short-term sterling fixed deposits
-
3,350,000

5,292,190
12,719,314


The notes on pages 11 to 25 form part of these financial statements.

Page 9

 
HOLROYD COMPONENTS LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 NOVEMBER 2023




At 1 December 2022
Cash flows
At 30 November 2023
£

£

£

Cash at bank and in hand

9,369,314

(4,077,124)

5,292,190

Short-term sterling fixed deposits

3,350,000

(3,350,000)

-


12,719,314
(7,427,124)
5,292,190

The notes on pages 11 to 25 form part of these financial statements.

Page 10

 
HOLROYD COMPONENTS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

1.


General information

Holroyd Components Limited is a private company limited by shares, incorporated in England and Wales
with the registered number 01083975. Its Registered Office is Shirehill Industrial Estate, Saffron Walden, Essex CB11 3AQ.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.3

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 11

 
HOLROYD COMPONENTS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

2.Accounting policies (continued)


2.3
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the straight line or reducing balance basis.

Depreciation is provided on the following basis:

Leasehold improvements
-
Over the term of the lease
Plant & machinery
-
20% per annum on the reducing balance
Motor vehicles
-
25% per annum on the reducing balance
Fixtures & fittings
-
15% & 25% respectively per annum on the reducing balance
Aircraft
-
10% per annum straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.4

Valuation of investments

Investments held as fixed assets are shown at cost less provision for impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Statement of Income and Retained Earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.5

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.6

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.7

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

Page 12

 
HOLROYD COMPONENTS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

2.Accounting policies (continued)

 
2.8

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Statement of Financial Position 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

 
2.9

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 13

 
HOLROYD COMPONENTS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

2.Accounting policies (continued)

 
2.10

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.

 
2.11

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is Pounds Sterling.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Income and Retained Earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'administrative expenses'.

 
2.12

Dividends

Equity dividends are recognised when they become legally payable.

 
2.13

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 14

 
HOLROYD COMPONENTS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

2.Accounting policies (continued)

 
2.14

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.15

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.16

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
 
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Provision.

 
2.17

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge 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.

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting 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.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 15

 
HOLROYD COMPONENTS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable to be reasonable under the circumstances.
Critical accounting estimates and assumptions
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values 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 15 for the carrying amount of the tangible fixed assets, and note 2.3 for the useful economic lives for each class of asset.


4.


Turnover

In the opinion of the Director, the disclosure of turnover by geographical segment would be seriously prejudicial to the interests of the Company and therefore this information has not been disclosed.


5.


Other operating income

2023
2022
£
£

Government grants receivable
7,715
2,571

Sundry income
12,074
-

19,789
2,571



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Research & development charged as an expense
62,057
4,100

Exchange differences
40,809
(38,253)

Depreciation of tangible fixed assets
572,399
611,073

Defined contribution pension cost
101,890
89,488

Government grants
(7,715)
(2,571)

Page 16

 
HOLROYD COMPONENTS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
11,100
9,950

Fees payable to the Company's auditors in respect of:

All non-audit services not included above
28,005
9,337

8.


Employees

Staff costs, including Director's remuneration, were as follows:


2023
2022
£
£

Wages and salaries
3,615,161
3,491,906

Social security costs
350,692
347,019

Cost of defined contribution scheme
101,890
89,488

4,067,743
3,928,413


The average monthly number of employees, including the Director, during the year was as follows:


        2023
        2022
            No.
            No.







Administration
27
25



Production
88
96

115
121


9.


Director's remuneration

2023
2022
£
£

Director's emoluments
188,982
116,184



10.


Interest receivable

2023
2022
£
£


Other interest receivable
159,452
11,414

Page 17

 
HOLROYD COMPONENTS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

11.


Interest payable and similar expenses

2023
2022
£
£


Other loan interest payable
29,476
-

Other interest payable
3,322
504

32,798
504


12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
1,068,982
867,956

Adjustments in respect of previous periods
87,098
-

1,156,080
867,956


Deferred tax


Origination and reversal of timing differences
(53,325)
96,213


Tax on profit
1,102,755
964,169

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 23.01% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
4,219,581
5,206,484


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.01% (2022 - 19%)
970,926
989,232

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
5,380
2,389

Adjustments to tax charge in respect of prior periods
87,098
-

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
-
(61,358)

Changes in tax rate leading to an increase (decrease) in the tax charge
39,351
33,906

Total tax charge for the year
1,102,755
964,169

Page 18

 
HOLROYD COMPONENTS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
 
12.Taxation (continued)


Factors that may affect future tax charges

Future tax and 8 months of the current year have been affected by the increase in corporation tax rate from 19% to 25%.


13.


Dividends

2023
2022
£
£


Dividends paid on ordinary shares
8,150,000
-


Dividends paid on ordinary A shares
3,000,000
-

11,150,000
-

Subsequent to the year end the Company paid dividends totalling £1,000,000.

Page 19

 
HOLROYD COMPONENTS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

14.


Tangible fixed assets





Leasehold improvement
Plant and machinery
Motor vehicles
Fixtures and fittings
Aircraft
Total

£
£
£
£
£
£



Cost or valuation


At 1 December 2022
1,947,629
4,096,305
12,557
266,378
656,164
6,979,033


Additions
100,474
72,468
36,000
11,918
-
220,860


Disposals
-
(57,123)
-
(87,118)
-
(144,241)



At 30 November 2023

2,048,103
4,111,650
48,557
191,178
656,164
7,055,652



Depreciation


At 1 December 2022
842,258
2,692,704
12,489
142,262
256,652
3,946,365


Charge for the year on owned assets
224,936
295,061
9,018
19,242
-
548,257


Disposals
-
(55,835)
-
(70,020)
-
(125,855)



At 30 November 2023

1,067,194
2,931,930
21,507
91,484
256,652
4,368,767



Net book value



At 30 November 2023
980,909
1,179,720
27,050
99,694
399,512
2,686,885



At 30 November 2022
1,105,371
1,403,601
68
124,116
399,512
3,032,668

Page 20

 
HOLROYD COMPONENTS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

15.


Fixed asset investments





Unlisted investments

£



Cost or valuation


At 1 December 2022
7,081



At 30 November 2023

7,081






Net book value



At 30 November 2023
7,081



At 30 November 2022
7,081


16.


Stocks

2023
2022
£
£

Raw materials and consumables
600,847
389,575

Work in progress
109,381
108,095

710,228
497,670



17.


Debtors

2023
2022
£
£


Trade debtors
2,809,304
2,641,642

Other debtors
636,021
3,364,919

Prepayments and accrued income
39,749
15,459

3,485,074
6,022,020


Page 21

 
HOLROYD COMPONENTS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

18.


Current asset investments

2023
2022
£
£

Gilt-edged securities
3,000,000
-

Short term sterling fixed deposits
-
3,350,000

3,000,000
3,350,000



19.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
5,292,190
9,369,314



20.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
339,788
510,511

Corporation tax
668,983
418,700

Other taxation and social security
130,214
-

Other creditors
502,561
7,712

Accruals and deferred income
80,638
21,057

1,722,184
957,980


Page 22

 
HOLROYD COMPONENTS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

21.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
5,292,190
9,369,314

Financial assets that are debt instruments measured at amortised cost
3,445,325
9,307,110

8,737,515
18,676,424


Financial liabilities


Financial liabilities measured at amortised cost
(922,987)
(539,280)


Financial assets measured at fair value through profit or loss comprise bank and cash balancess. Fair value of bank and cash balances is measured as the balance of cash held at the year end, as translated into the presentational currency.


Financial assets that are debt instruments measured at amortised cost comprise trade debtors, certain
other debtors and current asset investments.


Financial liabilities measured at amortised cost comprise trade creditors, bank overdrafts, other creditors and accruals.


22.


Deferred taxation




2023
2022


£

£






At beginning of year
(369,734)
(273,521)


Utilised in year
53,325
(96,213)



At end of year
(316,409)
(369,734)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(316,409)
(369,734)

Page 23

 
HOLROYD COMPONENTS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

23.


Provisions




Dilapidations provision

£





At 1 December 2022
75,000


Charged to profit or loss
225,000



At 30 November 2023
300,000

The above represents a provision for future costs, required under contract with the landlord, to restore the property to its condition prior to vacancy by the Company.


24.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



100 (2022 - 100) Ordinary shares of £1 each
100
100
1 (2022 - 1) Ordinary 'A' share of £1
1
1
1 (2022 - 1) Ordinary 'B' share of £1
1
1

102

102



25.


Pension commitments

The Company operates a defined contributions pension 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 £101,890 (2022 - £89,488). Contributions totalling £NIL (2022 - £NIL) were payable to the fund at the reporting date and are included in creditors.


26.


Commitments under operating leases

At 30 November 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
256,969
256,960

Later than 1 year and not later than 5 years
835,780
908,740

Later than 5 years
123,333
307,333

1,216,082
1,473,033

Page 24

 
HOLROYD COMPONENTS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023

27.


Transactions with directors

At 1 December 2022, the Company was owed £2,704,138 from the Director (2022 - £51,171 owed to the Director). During the year, the Director made withdrawals of £4,784,253 (2022 - £4,674,975) and repayments of £7,990,953 (2022 - £1,916,666), leaving a balance of £502,561 due to him as at 30 November 2023 (2022 - £2,704,138 due from him).
The loan was interest free and repayable on demand.


28.


Related party transactions

During the year, the Company were charged rent of £184,000 (2022 - £184,000) by an LLP  of which the Director is a member.
The amount due to them at the year end was £NIL (2022 - £NIL).
During the year amounts totalling £32,746 (2022 - £NIL) were paid to companies controlled by a close relative of the Director.
The amount due to them at the year end was £210 (2022 - £24,699).
During the year amounts totalling £7,043 (2022 - £NIL) were received as interest on a loan to a close relative  of the Director.
The amount due from them at the year end was £325,544 (2022 as restated - £325,544).
During the year dividends of £8,150,000 (2022 - £NIL) were paid to the Director.
During the year dividends of £3,000,000 (2022 - £NIL) were paid to a Company under common control.


Page 25