Company registration number 00612062 (England and Wales)
ENL LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023
3 Acorn Business Centre
Northarbour Road
Cosham
Portsmouth
Hampshire
PO6 3TH
ENL LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 4
Director's report
5 - 6
Independent auditor's report
7 - 10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Notes to the financial statements
14 - 25
ENL LIMITED
COMPANY INFORMATION
- 1 -
Director
Mr. R Gamble
Secretary
Mr. S Colebrook
Company number
00612062
Registered office
Units 6-9 Victory Trading Estate
Kiln Road
Portsmouth
Hampshire
United Kingdom
PO3 5LP
Auditors
TC Group
3 Acorn Business Centre
Northarbour Road
Cosham
Portsmouth
Hampshire
PO6 3TH
Bankers
Handelsbanken
3 Carlton Crescent
Southampton
Hampshire
United Kingdom
SO15 2EY
ENL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The director presents the strategic report for the year ended 31 December 2023.

Review of business

The company’s principal activities during the year continued to be the manufacture of plastic injection moulded components and assemblies and related mould tooling services.

The key financial and other performance indicators during the year were as follows:

 

2023

2022

Change

 

£’000

£’000

 

Production Moulding Sales

6,409

6,148

+4%

Tooling Sales

1,029

502

+105%

Painting Sales

52

-

 

 

 

 

 

Turnover

7,506

6,657

+13%

Gross Profit %

24%

23%

 

 

 

 

 

Operating Profit

198

(184)

 

Profit before Tax

20

(292)

 

Profit after Tax

20

(292)

 

 

 

 

 

Equity shareholders’ funds

1,422

1,402

 

 

 

 

 

Current Assets as a % of Current Liabilities

119%

118%

 

Employees

84

83

 

 

 

 

 

After two years of losses the Director is pleased to report a return to profitability. The sales growth from last year was continued in 2023 and a slight increase in the gross profit margin, along with savings in overheads helped to deliver a profit for the business after two years of difficult trading since the pandemic.

The company launched a new business operation in the year with the opening of a paintshop. The sales in the year represent a modest start to the operation and during the year it made a negative contribution to profit due to initial startup costs.

Tooling sales were particularly strong, and this is an indicator of future growth in production moulding as these mould tools will form the basis of new production contracts for moulding.

ENL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

Moulding growth was modest, mainly reflecting the commencement of a period of price realignment that is continuing into 2024.

In addition to the sales growth the company made a significant reduction in administrative costs of over 6%.

These factors led to an increase in Operating Profit of over £380,000. This was negatively impacted by the continued increase in interest rates, leading to a large increase in interest charges for the business.

Nonetheless, the company successfully converted a loss in 2022 of nearly £300k to a profit in 2023 of £20k.

The average number of employees in the company was held at similar levels to the previous year.

The company’s senior management team assesses risks and uncertainty on a regular basis, in line with its obligations under its ISO 9001 and AS 9100 quality certifications.

The principal risks facing the company are as follows:

Market Risk

The company has a significant concentration in the aerospace and automotive sectors. This is subject to demand levels for new build aircraft and cars, as well as spares requirements within the aerospace sector. Although demand schedules are forecast from 1 to 5 years in advance, these are subject to change and any contraction of either sector would negatively impact the business.

To minimise this risk the company is actively diversifying its customer base into the other sectors.

Following the collapse of the global aerospace market, the company was successful in securing medical sector sales to mitigate the impact in the short term. Looking further ahead, the company has increased its marketing and business development activity and is targeting new business in growth sectors.

Price Risk

The company is reliant on certain raw materials in its manufacturing processes. These include thermoplastic polymers, aluminium and steel. Pricing of these materials is subject to fluctuations in commodity prices and presents a risk for future profitability. Wherever possible the company uses multi-sourcing to mitigate price risk and, where possible, seeks to ensure that changes in purchase pricing can be reflected in customer pricing. However, this can be delayed and complicated by our customers’ requirements.

The cost of energy is a key component of our cost base and long-term pricing has been secured to protect the company from the current volatility in the market.

Liquidity Risk

Current and projected working capital and investment requirements are constantly reviewed. Both the aerospace and automotive sectors demand significant levels of working capital funding from the supply chain. This results in deferred payment terms on tooling and longer payment terms on production components. In addition, new tooling programs often encounter program delays, further increasing the working capital requirements of the company.

The company manages this risk by monitoring its working capital capacity for new tooling business and ensuring that growth in business is controlled within that capacity. Wherever possible, staged payments terms are sought to mitigate the working capital burden of tooling contracts. The business maintains a strong relationship with suppliers and funding providers to ensure that working capital funding is available to match the needs of the business.

ENL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

Credit Risk

We supply a wide range of customers usually on 30-90 day credit terms. Credit risk is managed through internal control procedures and external rating agencies, and the use of invoice discounting.

Currency Risk

The company buys and sells in US Dollars and Euros, as well as GBP. Our policy is to trade in GBP whenever possible. Natural hedging is used whenever possible to mitigate currency risk. Forward foreign currency cashflows are reviewed to assess any other mitigation requirements.

Future developments

2024 has continued the positive trend demonstrated in these financial statements.

Production moulding sales have seen a significant increase as the work on price realignment has continued, as well as gains from new contracts.

Tooling has continued at the same pace as 2023 with a full tooling order book through into 2025.

And finally, the paint shop is running at full capacity with a strong margin contribution.

These gains will be offset by overhead cost increases, particularly in staff costs and business rates. Nevertheless, it is expected that 2024 will deliver increased profits. And with the continued high levels of new tooling, this will underpin longer term revenues for production moulding.

 

On behalf of the board

Mr. R Gamble
Director
2 August 2024
ENL LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

The director presents his annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activities of the company are the manufacture of plastic components and associated tooling.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr. R Gamble
Results and dividends

No ordinary dividends were paid.

Statement of director's responsibilities

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ENL LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
Auditor

The auditor, TC Group, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr. R Gamble
Director
2 August 2024
ENL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ENL LIMITED
- 7 -
Opinion

We have audited the financial statements of ENL Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 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 auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

ENL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ENL LIMITED
- 8 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

ENL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ENL LIMITED
- 9 -

Our approach was as follows:

 

 

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

 

ENL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ENL LIMITED
- 10 -

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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Graham Figgins FCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
2 August 2024
Office: Portsmouth
ENL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£
£
Turnover
3
7,506,160
6,656,676
Cost of sales
(5,718,235)
(5,139,729)
Gross profit
1,787,925
1,516,947
Distribution costs
(183,688)
(154,761)
Administrative expenses
(1,638,802)
(1,745,457)
Other operating income
233,003
199,484
Operating profit/(loss)
4
198,438
(183,787)
Interest receivable and similar income
6,774
6,421
Interest payable and similar expenses
7
(184,944)
(114,991)
Profit/(loss) before taxation
20,268
(292,357)
Taxation
8
-
0
38
Profit/(loss) for the financial year
20,268
(292,319)
Other comprehensive income
-
-
Total comprehensive income for the year
20,268
(292,319)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

ENL LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
1,140,884
1,027,543
Investments
10
132,883
132,883
1,273,767
1,160,426
Current assets
Stocks
11
1,349,385
1,240,019
Debtors
12
2,562,161
1,736,155
Cash at bank and in hand
16,177
31,846
3,927,723
3,008,020
Creditors: amounts falling due within one year
13
(3,304,145)
(2,543,366)
Net current assets
623,578
464,654
Total assets less current liabilities
1,897,345
1,625,080
Creditors: amounts falling due after more than one year
14
(475,318)
(223,321)
Net assets
1,422,027
1,401,759
Capital and reserves
Called up share capital
16
110,330
110,330
Share premium account
12,019
12,019
Profit and loss reserves
1,299,678
1,279,410
Total equity
1,422,027
1,401,759
The financial statements were approved and signed by the director and authorised for issue on 2 August 2024
Mr. R Gamble
Director
Company Registration No. 00612062
The notes on pages 14 to 25 form part of these financial statements
ENL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
110,330
12,019
1,571,729
1,694,078
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(292,319)
(292,319)
Balance at 31 December 2022
110,330
12,019
1,279,410
1,401,759
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
20,268
20,268
Balance at 31 December 2023
110,330
12,019
1,299,678
1,422,027
The notes on pages 14 to 25 form part of these financial statements
ENL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

ENL Limited is a private company limited by shares incorporated in England and Wales. The registered office is Units 6-9 Victory Trading Estate, Kiln Road, Portsmouth, Hampshire, United Kingdom, PO3 5LP.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of ENL Group Limited. These consolidated financial statements are available from Companies House.

1.2
Going concern

These financial statements are prepared on the going concern basis. The Directors have considered the position of the company for a period of 12 months from the date of signing these accounts. As a result of this review and particularly with regard to the EBITDA position, the Directors are satisfied that the company will be in a position for a period of at least 12 months to meet its debts as they fall due. true

 

The Directors have confirmed the company have significant sales orders for the next 12 months and if there was a downturn in the market they would aim to reduce their variable costs where possible. Profitability has significantly improved since the year end and the Directors have no reason to believe that the shareholders and finance partners will not continue to support the company.

1.3
Turnover

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

ENL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold property
Straight line over term of the lease
Plant & machinery
20% reducing balance
Equipment, fixtures & fittings
20% reducing balance
Motor vehicles
30% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.6
Stocks

Stocks and work in progress are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
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 statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

ENL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and loans from fellow group 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 receipts discounted at a market rate of interest.

 

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. Accounts 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.

ENL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Other financial liabilities

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

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

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised.

1.11
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.

ENL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

In the opinion of the directors there are no significant judgements or areas of estimation uncertainty.

 

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

ENL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 19 -
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.

Calculation of stock provisions

The company maintains a stock provision in order to maintain stock at the lower of cost and net realisable value. The provision is reviewed monthly. The company uses specific criteria to calculate stock provisions, but establishing the criteria requires significant judgement. The company estimates by providing for stock lines that have no active order or expected usage at the month end.

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 value of the assets. The useful economic lives and residual values are re-assessed annually.

3
Turnover and other revenue
Turnover analysed by geographical market
2023
2022
£
£
United Kingdom
6,529,201
5,990,688
Overseas
976,959
665,988
7,506,160
6,656,676
4
Operating profit/(loss)
2023
2022
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
9,236
737
Fees payable to the company's auditors for the audit of the company's financial statements
8,000
7,400
Depreciation of owned tangible fixed assets
97,052
98,933
Depreciation of tangible fixed assets held under hire purchase agreements
136,734
141,401
Profit on disposal of tangible fixed assets
(22,014)
(1,849)
Operating lease costs
244,814
237,977
ENL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Production Staff
58
55
Non-Production Staff
26
28
Total
84
83

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,318,990
3,129,148
Social security costs
153,425
140,674
Pension costs
51,388
51,188
3,523,803
3,321,010
6
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
136,164
178,022

The director is considered to be the key management personnel of the company.

7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
107,131
52,185
Interest on hire purchase agreements
77,813
59,273
Other interest
-
0
3,533
ENL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
8
Taxation
2023
2022
£
£
Current tax
Research and development tax credits
-
0
(38)

The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit/(loss) before taxation
20,268
(292,357)
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
3,851
(55,548)
Tax on expenses disallowed for tax purposes
-
0
3,549
Change in unrecognised deferred tax
(3,851)
64,626
Adjustments in respect of prior years
-
0
(38)
Enhanced capital allowances
-
0
(12,009)
Dividend income
-
0
(618)
Tax expense for the year
-
(38)

The company has carried forward tax losses totalling £2,109,605. No deferred taxation has been recognised on the carried forward tax losses.

ENL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
9
Tangible fixed assets
Leasehold property
Plant & machinery
Equipment, fixtures & fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
43,069
3,822,277
588,523
161,150
4,615,019
Additions
-
0
299,680
18,389
50,989
369,058
Disposals
-
0
(168,999)
-
0
(79,980)
(248,979)
At 31 December 2023
43,069
3,952,958
606,912
132,159
4,735,098
Depreciation and impairment
At 1 January 2023
27,048
2,902,046
515,748
142,635
3,587,477
Depreciation charged in the year
3,004
193,909
17,847
16,022
230,782
Eliminated in respect of disposals
-
0
(150,458)
-
0
(73,587)
(224,045)
At 31 December 2023
30,052
2,945,497
533,595
85,070
3,594,214
Carrying amount
At 31 December 2023
13,017
1,007,461
73,317
47,089
1,140,884
At 31 December 2022
16,021
920,232
72,775
18,515
1,027,543

The net carrying value of tangible fixed assets includes the following in respect of assets held under hire purchase agreements. The depreciation charge in respect of such assets amounted to £133,730 (2022 - £141,401 for the year.

2023
2022
£
£
Plant & machinery
732,024
603,053
Motor vehicles
39,021
6,589
Other assets
13,017
16,021
784,062
625,663
ENL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
10
Fixed asset investments
2023
2022
£
£
Listed investments
61,883
61,883
Unlisted investments
71,000
71,000
132,883
132,883
Listed investments carrying amount
61,883
61,883
Market value if different from carrying amount
37,970
37,189
11
Stocks
2023
2022
£
£
Raw materials and consumables
419,341
396,138
Work in progress
442,555
335,002
Finished goods
487,489
508,879
1,349,385
1,240,019
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,757,468
1,087,770
Amounts due from group undertakings
619,802
531,486
Other debtors
-
0
629
Prepayments and accrued income
184,891
116,270
2,562,161
1,736,155
ENL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
13
Creditors: amounts falling due within one year
2023
2022
£
£
Commercial finance loan
1,198,505
688,800
Other loans
45,463
54,593
Hire purchase agreements
267,725
240,236
Trade creditors
551,063
553,979
Amounts due to associate undertakings
464,123
250,408
Other taxation and social security
408,350
297,993
Other creditors
59,058
74,116
Accruals and deferred income
309,858
383,241
3,304,145
2,543,366

Hire purchase agreements are secured on the assets to which they relate. The commercial finance loan is secured on the trade debtors of the company.

14
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other loans
-
0
35,984
Hire purchase agreements
475,318
187,337
475,318
223,321

Hire purchase agreements are secured on the assets to which they relate. The rates of interest vary depending on the type of finance involved between 4.5% and 11%.

 

15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
51,388
51,188

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

ENL LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
16
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
110,330 Ordinary shares of £1 each
110,330
110,330
17
Related party transactions

Delta Developments Limited, a company in which ENL Limited has a participating interest, charged interest on a loan totalling £18,715 (2022 - £5,426). At the balance sheet date the amount due to Delta Developments Limited was £406,700 (2022 - £192,985).

 

At the balance sheet date, the company owed Axelton s.r.o, a subsidiary of Delta Developments Limited, £57,423 (2022 - £57,423).

18
Operating lease commitments
Lessee

 

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
239,739
239,739
Between two and five years
719,218
719,218
In over five years
539,413
779,153
1,498,370
1,738,110
19
Ultimate parent company

The company is controlled by ENL Group Limited, a company incorporated in England and Wales. Consolidated group accounts incorporating the results of ENL Limited are available from Companies House. The ultimate controlling party is Mr R Gamble.

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