REGISTERED NUMBER: |
Straightset Limited |
Strategic Report, Report of the Directors and |
Financial Statements For The Year Ended 31 December 2023 |
REGISTERED NUMBER: |
Straightset Limited |
Strategic Report, Report of the Directors and |
Financial Statements For The Year Ended 31 December 2023 |
Straightset Limited (Registered number: 02196324) |
Contents of the Financial Statements |
For The Year Ended 31 December 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 |
Cash Flow Statement | 9 |
Notes to the Cash Flow Statement | 10 |
Notes to the Financial Statements | 11 |
Straightset Limited |
Company Information |
For The Year Ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Sidings Court |
Lakeside |
Doncaster |
South Yorkshire |
DN4 5NU |
Straightset Limited (Registered number: 02196324) |
Strategic Report |
For The Year Ended 31 December 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
The company's principal activity is supply, installation and maintenance of garage equipment. The Directors are pleased with the company's performance for the period ending December 2023, with turnover of £11,930,355 generating £1,037,766 profit before taxation. |
The company continues to be successful in attracting new customers and supporting the existing customer base. The acquisition of the assets of Supertracker Ltd have given us a large incremental customer base for wheel alignment systems we have an annualised benefit from this acquisition and growth year on year. |
We continue to invest in internal systems, processes and infrastructure to provide the best possible service to our customers. We have also increased our investment in training and development of internal staff. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Inflation has driven a significant increase in our cost base, we have absorbed some costs and had to pass some of these increases through to customers. We are actively working on projects to realise efficiencies to offset some of this impact. |
Our Customers are going through a significant period of change, and many customer groups have experienced change of ownership, acquisitions and sell offs, as well as changing business operating models which is creating some uncertainties in the market. |
Despite some challenges, there are opportunities in the market and the directors are confident of maintaining financial security. |
DEVELOPMENT AND PERFORMANCE |
The company continually monitors its performance via a live management reporting analysis tool. Actively taking decisions to ensure the business performs strongly. We continue to recruit to add depth of knowledge and experience especially since the acquisition. |
KEY PERFORMANCE INDICATORS |
Weekly financial and non-financial KPIs are prepared and reviewed by the directors and senior management team. These are discussed in senior management meetings and planning and action plans are updated ensuring alignment and singular direction of all departments. |
ON BEHALF OF THE BOARD: |
5 August 2024 |
Straightset Limited (Registered number: 02196324) |
Report of the Directors |
For The Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
DIVIDENDS |
An interim dividend of £10 per share was paid during the year. A final dividend was paid of £8 per share. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Straightset Limited |
Opinion |
We have audited the financial statements of Straightset Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 December 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 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. |
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. |
Report of the Independent Auditors to the Members of |
Straightset Limited |
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. 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: |
- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector. |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment and health and safety legislation; |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; and |
- enquiring of management as to actual and potential litigation and claims. |
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. |
for and on behalf of |
Chartered Accountants |
Sidings Court |
Lakeside |
Doncaster |
South Yorkshire |
DN4 5NU |
Straightset Limited (Registered number: 02196324) |
Statement of Comprehensive |
Income |
For The Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
806,376 | 413,631 |
Other operating income | 5 |
OPERATING PROFIT | 7 |
Gain on investments | 8 |
903,797 | 572,794 |
Income from fixed asset investments | 9 |
Interest receivable and similar income | 10 |
273,133 | 40,740 |
1,176,930 | 613,534 |
Interest payable and similar expenses | 11 |
PROFIT BEFORE TAXATION |
Tax on profit | 12 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Straightset Limited (Registered number: 02196324) |
Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 14 |
Tangible assets | 15 |
Investments | 16 |
Investment property | 17 |
CURRENT ASSETS |
Stocks | 18 |
Debtors | 19 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 20 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 21 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 24 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 25 |
Capital redemption reserve | 26 |
Retained earnings | 26 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Straightset Limited (Registered number: 02196324) |
Statement of Changes in Equity |
For The Year Ended 31 December 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Total comprehensive income | - | 389,669 | - | 389,669 |
Balance at 31 December 2022 | 22,210 | 6,961,868 | 22,790 | 7,006,868 |
Changes in equity |
Dividends | - | (399,780 | ) | - | ( |
) |
Total comprehensive income | - | 781,011 | - | 781,011 |
Balance at 31 December 2023 | 22,210 | 7,343,099 | 22,790 | 7,388,099 |
Straightset Limited (Registered number: 02196324) |
Cash Flow Statement |
For The Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid | ( |
) | ( |
) |
Finance costs paid | (2 | ) | - |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Acquisition of business | - | (246,190 | ) |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
Capital repayments in year | ( |
) | ( |
) |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year | 2 | 7,573,574 |
Cash and cash equivalents at end of year | 2 | 8,335,951 | 6,743,577 |
Straightset Limited (Registered number: 02196324) |
Notes to the Cash Flow Statement |
For The Year Ended 31 December 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Gain on investments | (15,175 | ) | (35,846 | ) |
Finance costs | 139,165 | 108,734 |
Finance income | (273,133 | ) | (40,740 | ) |
1,036,958 | 739,509 |
Increase in stocks | ( |
) | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 8,335,951 | 6,743,577 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 6,743,577 | 7,573,574 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
Other |
non-cash |
At 1.1.23 | Cash flow | changes | At 31.12.23 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 6,743,577 | 1,592,374 | 8,335,951 |
6,743,577 | 8,335,951 |
Debt |
Finance leases | (238,409 | ) | 217,355 | (365,592 | ) | (386,646 | ) |
(238,409 | ) | 217,355 | (365,592 | ) | (386,646 | ) |
Total | 6,505,168 | 1,809,729 | (365,592 | ) | 7,949,305 |
4. | MAJOR NON-CASH TRANSACTIONS |
New hire purchase agreements of £365,591.62 (2022: £162,412) were entered into. |
Straightset Limited (Registered number: 02196324) |
Notes to the Financial Statements |
For The Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Straightset Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 "The Financial Reporting Standard Applicable in the UK and Republic of Ireland" (FRS 102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. 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 neared £. |
Preparation of consolidated financial statements |
The company's subsidiaries are both dormant and immaterial. Therefore consolidated accounts have not been produced and these financial statements present information about the company and not about its group. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
The policies adopted for the recognition of turnover are as follows: |
Sale of goods |
Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods. |
Rendering of services |
When the outcome of a transaction can be estimated reliably, turnover from services is recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to the work performed. |
Where the outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable. |
Construction (installation) contracts |
When the outcome of a construction contract can be estimated reliably, contract costs and turnover are recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to costs incurred for work performed to date. |
Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable. |
The amount by which recorded turnover is in excess of sales invoiced is classified as 'gross amounts due from customers for contract work' within debtors. The amount by which sales invoiced are in excess of recorded turnover is classified as a deduction from any balance on that contract in stocks, with any residual balance classified as 'payments on account' within creditors. |
When it is probable that contract costs will exceed the total contract turnover, the expected loss is recognised as an expense immediately, with a corresponding provision. |
Goodwill |
Goodwill arising on the acquisition of a business in 2022 will be amortised on a straight-line basis over its estimated useful economic life of 3 years. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Straightset Limited (Registered number: 02196324) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are stated at cost or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Depreciation is provided on all tangible assets, with the exception of investment properties, and is calculated to write off the cost less estimated residual value of each asset on a systematic basis over its useful life as follows:- |
Freehold property - 50 years |
Motor vehicles - 3 years |
Plant & machinery - 3 years |
Investments |
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes in fair value recognised through profit or loss, if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Investment property |
Investment properties are recognised initially at fair value which is normally the transaction price including transaction costs. Subsequently, they are measured at fair value through 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 items. |
Stock is costed on a first in first out basis. Work in progress and finished goods include labour and attributable overheads. |
Current taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred taxation |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Monetary 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. |
Straightset Limited (Registered number: 02196324) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
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. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Employee benefits |
When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. |
The company sponsors two defined contribution pension schemes. Contributions payable for the year are charged in the profit and loss account. |
Debtors and creditors receivable / payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses |
Impairment |
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease. |
Provisions |
Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated. |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
Estimated used life of tangible fixed assets |
At the date of capitalising tangible fixed assets, the company estimates the useful economic life of the asset based on management’s judgement and experience. Due to the significance of the capital investment to the company, variance between actual and estimated useful economic lives could impact results both positively and negatively. |
Stock provisioning |
The carrying value of stock, at the lower of cost and net realisable value, is dependent on key judgements and estimates that are made by management. The judgements relating to stock include an estimation of future expected average sales prices and disposal costs. These judgements also include consideration of specific factors and the developments in the market that have been identified throughout the year and subsequent to the year end. Actual outcomes could be different to the assumptions used in determining the estimates |
Valuation of investment properties |
Investment properties are professionally valued using a yield methodology. This uses market rental values capitalised at a market capitalisation rate. The last professional valuation was completed in 2017. Since then a revaluation has occured, which was calculated on the rental income received during the year. There is inevitably a degree of judgement and actual property valuations may differ from the assumptions used in determining this estimate. |
4. | TURNOVER |
The analysis of turnover by activity is as follows: |
2023 | 2022 |
£ | £ |
Goods | 16,639 | 237,621 |
Services | 5,190,430 | 4,633,908 |
Installation contracts | 6,723,286 | 5,169,451 |
11,930,355 | 10,040,980 |
Straightset Limited (Registered number: 02196324) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
5. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Rents received |
Sundry receipts | - | 30,427 |
82,246 | 123,317 |
6. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Administration | 21 | 21 |
Sales | 2 | 1 |
Engineering | 58 | 63 |
Directors | 4 | 3 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
7. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Car leasing |
Other operating leases |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Goodwill amortisation |
Auditors' remuneration |
Foreign exchange differences | ( |
) |
Stock impairment |
8. | GAIN ON INVESTMENTS |
2023 | 2022 |
£ | £ |
Gain on investments |
Straightset Limited (Registered number: 02196324) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
9. | INCOME FROM FIXED ASSET INVESTMENTS |
2023 | 2022 |
£ | £ |
Investment income | 646 | 547 |
10. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2023 | 2022 |
£ | £ |
Bank interest |
11. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Directors' loan interest |
Hire purchase |
12. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax: |
Deferred tax |
Property revaluation | - | 16,848 |
Total deferred tax |
Tax on profit |
UK corporation tax has been charged at 25% . |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) | ( |
) |
General provisions | 2,149 | 900 |
Fair value adjustments to investments | (3,794 | ) | (4,865 | ) |
Depreciation of ineligible assets | 3,797 | 2,886 |
Superdeduction | (1,590 | ) | (12,097 | ) |
Change of tax rate | (4,072 | ) | 15,098 |
Deferred tax on investment property gain | - | 16,848 |
Total tax charge | 256,754 | 115,131 |
Straightset Limited (Registered number: 02196324) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
13. | DIVIDENDS |
An interim dividend of £222,100 was paid during the year. A final dividend of £177,680 was also paid during the year (2019: £355,360). |
14. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
AMORTISATION |
Amortisation for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
15. | TANGIBLE FIXED ASSETS |
Freehold | Plant and | Motor |
property | machinery | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Included in cost of land and buildings is freehold land of £ 109,287 (2022 - £ 109,287 ) which is not depreciated. |
Straightset Limited (Registered number: 02196324) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
15. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Transfer to ownership | - | (138,223 | ) | (138,223 | ) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Transfer to ownership | - | (129,165 | ) | (129,165 | ) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
16. | FIXED ASSET INVESTMENTS |
Shares in |
group | Listed |
undertakings | investments | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 January 2023 | 96,416 |
Additions | 646 |
Change in market value | - | 15,177 | 15,177 |
At 31 December 2023 | 112,239 |
NET BOOK VALUE |
At 31 December 2023 | 112,239 |
At 31 December 2022 | 96,416 |
Cost or valuation at 31 December 2023 is represented by: |
Shares in |
group | Listed |
undertakings | investments | Totals |
£ | £ | £ |
Valuation in 2023 | - | 112,237 | 112,237 |
Cost | 2 | - | 2 |
2 | 112,237 | 112,239 |
Straightset Limited (Registered number: 02196324) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
16. | FIXED ASSET INVESTMENTS - continued |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: Sidings Court, Lakeside, Doncaster, DN4 5NU |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Registered office: Stadium Close, Dukeries Industrial Estate, Claylands Avenue, Worksop, Nottinghamshire, S81 7BT |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Listed investments are stated at fair value. |
17. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Fair value at 31 December 2023 is represented by: |
£ |
Valuation in 2017 | 6,784 |
Valuation in 2022 | 60,609 |
Cost | 825,607 |
893,000 |
If investment property had not been revalued it would have been included at the following historical cost: |
2023 | 2022 |
£ | £ |
Cost | 825,607 | 825,607 |
Investment property was valued on an open market basis on 8 February 2017 by Brown & Co Surveyors . |
It was updated by the directors in 2022 based on the comparative increase in rentals from 2017. |
Straightset Limited (Registered number: 02196324) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
18. | STOCKS |
2023 | 2022 |
£ | £ |
Raw materials |
This value does not differ materially from the replacement cost of the stocks. |
19. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Gross amounts due from |
customers for contract work | 102,972 | 94,388 |
Prepayments and accrued income |
20. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Hire purchase contracts (see note 22) |
Trade creditors |
Taxation |
Social security and other taxes |
Other creditors |
Payments on account | 340,241 | 245,555 |
Accruals and deferred income | 316,289 | 280,441 |
21. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Hire purchase contracts (see note 22) |
22. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
The above represents total future minimum lease payments under non-cancellable operating leases. |
Straightset Limited (Registered number: 02196324) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
22. | LEASING AGREEMENTS - continued |
Finance leases are hire purchase agreements on the company's van fleet and machinery. |
23. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Hire purchase contracts | 386,646 | 238,409 |
The company's hire purchase creditors are secured on the assets to which they relate. |
24. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 121,042 | 75,626 |
Short-term timing differences | (1,553 | ) | (1,148 | ) |
Deferred tax on investment property revaluation | 16,848 | 16,848 |
136,337 | 91,326 |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Charge for year | 45,011 |
Balance at 31 December 2023 |
The amount of the above expected to reverse in the next year is £62,000 (2022: £57,000). |
25. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal value: | 2022 | 2021 |
£ | £ |
22,210 | Ordinary | £1 | 22,210 | 22,210 |
26. | RESERVES |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2023 | 6,961,868 | 22,790 | 6,984,658 |
Profit for the year | 781,011 | 781,011 |
Dividends | (399,780 | ) | (399,780 | ) |
At 31 December 2023 | 7,343,099 | 22,790 | 7,365,889 |
Included in retained earnings is £121,858 (2022: £106,683) of profits which are not available for distribution as they are unrealised. |
Straightset Limited (Registered number: 02196324) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
27. | PENSION COMMITMENTS |
The company sponsors two individual personal pension schemes. The company's current contributions are between 1% and 5% for employees and 5% and 10% for some of the directors. |
28. | RELATED PARTY DISCLOSURES |
During the year, total dividends of £397,980 were paid to the directors . |
There are no key management personnel except the directors. |
Related party transactions with key management personnel and their close family members were as follows: |
Loans | Interest on loans | Dividends |
£ | £ | £ |
2023 | 3,040,024 | 122,608 | (397,980 | ) |
2022 | 2,195,654 | 92,168 | - |
The loans are subject to interest, have no formal repayment terms and are unsecured. |
29. | ULTIMATE CONTROLLING PARTY |
30. | OPERATING LEASES AS LESSOR |
Non-cancellable operating lease receipts from operating leases on the company's property are: |
2023 | 2022 |
£ | £ |
Within one year | 68,528 | 77,882 |
Within the second to fifth years | 148,856 | 217,384 |
217,384 | 295,266 |