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Company registration number: 00376609
Coborn Engineering Company Limited
Unaudited filleted financial statements
31 October 2023
Coborn Engineering Company Limited
Contents
Statement of financial position
Notes to the financial statements
Coborn Engineering Company Limited
Statement of financial position
31 October 2023
2023 2022
Note £ £ £ £
Fixed assets
Tangible assets 5 234,460 257,660
Investments 6 54,468 92,596
_______ _______
288,928 350,256
Current assets
Stocks 1,422,120 1,761,081
Debtors 7 607,593 691,788
Investments 8 11,193 11,193
Cash at bank and in hand 13,170 291
_______ _______
2,054,076 2,464,353
Creditors: amounts falling due
within one year 9 ( 2,181,439) ( 2,997,454)
_______ _______
Net current liabilities ( 127,363) ( 533,101)
_______ _______
Total assets less current liabilities 161,565 ( 182,845)
Creditors: amounts falling due
after more than one year 10 ( 126,667) ( 206,667)
_______ _______
Net assets/(liabilities) 34,898 ( 389,512)
_______ _______
Capital and reserves
Called up share capital 224 224
Share premium account 25,307 25,307
Profit and loss account 9,367 ( 415,043)
_______ _______
Shareholders funds/(deficit) 34,898 ( 389,512)
_______ _______
For the year ending 31 October 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors responsibilities:
- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.
These financial statements were approved by the board of directors and authorised for issue on 06 August 2024 , and are signed on behalf of the board by:
D. Lyons
Director
Company registration number: 00376609
Coborn Engineering Company Limited
Notes to the financial statements
Year ended 31 October 2023
1. General information
The company is a private company limited by shares, registered in England. The address of the registered office is Chesham Close, Romford, Essex, RM7 7PJ.
2. Statement of compliance
These financial statements have been prepared in compliance with the provisions of FRS 102, Section 1A, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis and are prepared in sterling, which is the functional currency of the entity.
Going concern
The company appointed a Sales, Operations and Development Director in 2023 and also appointed a new CEO after the end of the financial year. These appointments will promote the success of the company by continually focusing on growing the business. We continue to retain existing clients and win new business, demonstrating positive relationships with our customer base. We also foster close relationships with suppliers, who keep us well-informed on new offerings, ensuring we can keep pace with market trends. We always exercise good working capital management and the Board regularly review financial forecasts and cash flow projections. The business is confident that it has sufficient working capital to continue to operate for the foreseeable future. Therefore, the Company continues to adopt the going concern basis in preparing its financial statements.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current tax recognised in the reporting period. 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 capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight line basis.
Tangible assets
Tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Short leasehold property - straight line over the life of the lease
Plant and machinery - 15 % reducing balance
Fittings fixtures and equipment - 25 % reducing balance
Motor vehicles - 25 % reducing balance
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Fixed asset investments
Investments in associates are initially recorded at cost and subsequently stated at cost less any accumulated impairment losses.
Investments in associates
Investments in associates accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in associates accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the associate arising before or after the date of acquisition.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.
Financial instruments
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other receivables and payables. Debt instruments that are payable or receivable within one year are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.
Defined contribution pension plans
Contributions to defined contribution pension plans are recognised as an expense in the period to which they relate.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 37 (2022: 38 ).
5. Tangible assets
Short leasehold property Plant and machinery Fixtures, fittings and equipment Motor vehicles Total
£ £ £ £ £
Cost
At 1 November 2022 459,877 580,783 52,107 16,000 1,108,767
Additions - - 19,755 - 19,755
_______ _______ _______ _______ _______
At 31 October 2023 459,877 580,783 71,862 16,000 1,128,522
_______ _______ _______ _______ _______
Depreciation
At 1 November 2022 300,445 485,441 50,021 15,200 851,107
Charge for the year 22,993 14,302 5,460 200 42,955
_______ _______ _______ _______ _______
At 31 October 2023 323,438 499,743 55,481 15,400 894,062
_______ _______ _______ _______ _______
Carrying amount
At 31 October 2023 136,439 81,040 16,381 600 234,460
_______ _______ _______ _______ _______
At 31 October 2022 159,432 95,342 2,086 800 257,660
_______ _______ _______ _______ _______
6. Investments
Shares in group undertakings and participating interests Total
£ £
Cost
At 1 November 2022 92,596 92,596
Disposals ( 38,128) ( 38,128)
_______ _______
At 31 October 2023 54,468 54,468
_______ _______
Impairment
At 1 November 2022 and 31 October 2023 - -
_______ _______
Carrying amount
At 31 October 2023 54,468 54,468
_______ _______
At 31 October 2022 92,596 92,596
_______ _______
7. Debtors
2023 2022
£ £
Trade debtors 259,222 168,925
Amounts owed by group undertakings and undertakings in which the company has a participating interest 8,368 -
Other debtors 340,003 522,863
_______ _______
607,593 691,788
_______ _______
8. Investments
2023 2022
£ £
Other investments 11,193 11,193
_______ _______
9. Creditors: amounts falling due within one year
2023 2022
£ £
Bank loans and overdrafts 368,335 427,100
Trade creditors 343,065 620,611
Amounts owed to group undertakings and undertakings in which the company has a participating interest 959,471 1,051,920
Social security and other taxes 180,815 165,944
Other creditors 329,753 731,879
_______ _______
2,181,439 2,997,454
_______ _______
The bank overdraft is secured against the freehold property owned by the company's parent undertaking, Kilofrequency Limited.
10. Creditors: amounts falling due after more than one year
2023 2022
£ £
Bank loans and overdrafts 126,667 206,667
_______ _______
11. Operating leases
The company as lessee
The total future minimum lease payments under non-cancellable operating leases are as follows:
£ £
Not later than 1 year 30,387 30,387
Later than 1 year and not later than 5 years 3,402 4,914
_______ _______
33,789 35,301
_______ _______
12. Pension commitments
Included within 'other creditors' in the statement of financial position is £14,772 (2022: £14,304) in respect of pension contributions, which were outstanding at the year end.
13. Events after the end of the reporting period
At 31 October 2023, the company owed its parent company, Kilofrequency Limited, £959,471. At a board meeting on 3 July 2024 the directors of Kilofrequency Limited resolved to waive £640,000 of the outstanding amount. It is intended that the waiver will be effected before 31 October 2024.
14. Controlling party
The ultimate holding company is Kilofrequency Limited, a company which is also incorporated in the United Kingdom. Accounts for Kilofrequency Limited can be obtained from Companies House.