Caseware UK (AP4) 2023.0.135 2023.0.135 2024-03-312023-05-312023-05-312024-03-31truetruetruetruetrue2023-04-01falsefalseThe principal activity of the Company throughout the year continued to be that of design, consultancy and project management services for the refining, power, oil & gas and chemical industries.10089truefalse 01612986 2023-04-01 2024-03-31 01612986 2022-04-01 2023-03-31 01612986 2024-03-31 01612986 2023-03-31 01612986 2 2023-04-01 2024-03-31 01612986 2 2022-04-01 2023-03-31 01612986 4 2023-04-01 2024-03-31 01612986 4 2022-04-01 2023-03-31 01612986 d:CompanySecretary1 2023-04-01 2024-03-31 01612986 d:Director1 2023-04-01 2024-03-31 01612986 d:Director2 2023-04-01 2024-03-31 01612986 d:Director3 2023-04-01 2024-03-31 01612986 d:Director4 2023-04-01 2024-03-31 01612986 d:Director5 2023-04-01 2024-03-31 01612986 d:Director6 2023-04-01 2024-03-31 01612986 d:Director6 2024-03-31 01612986 d:Director7 2023-04-01 2024-03-31 01612986 d:Director7 2024-03-31 01612986 d:Director8 2023-04-01 2024-03-31 01612986 d:Director8 2024-03-31 01612986 d:Director9 2023-04-01 2024-03-31 01612986 d:Director9 2024-03-31 01612986 d:Director10 2023-04-01 2024-03-31 01612986 d:Director10 2024-03-31 01612986 d:RegisteredOffice 2023-04-01 2024-03-31 01612986 d:Agent1 2023-04-01 2024-03-31 01612986 e:Buildings 2023-04-01 2024-03-31 01612986 e:Buildings 2024-03-31 01612986 e:Buildings 2023-03-31 01612986 e:Buildings e:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 01612986 e:PlantMachinery 2023-04-01 2024-03-31 01612986 e:PlantMachinery 2024-03-31 01612986 e:PlantMachinery 2023-03-31 01612986 e:PlantMachinery e:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 01612986 e:MotorVehicles 2023-04-01 2024-03-31 01612986 e:MotorVehicles 2024-03-31 01612986 e:MotorVehicles 2023-03-31 01612986 e:MotorVehicles e:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 01612986 e:FurnitureFittings 2023-04-01 2024-03-31 01612986 e:FurnitureFittings 2024-03-31 01612986 e:FurnitureFittings 2023-03-31 01612986 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 01612986 e:OfficeEquipment 2023-04-01 2024-03-31 01612986 e:OfficeEquipment 2024-03-31 01612986 e:OfficeEquipment 2023-03-31 01612986 e:OfficeEquipment e:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 01612986 e:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 01612986 e:CurrentFinancialInstruments 2024-03-31 01612986 e:CurrentFinancialInstruments 2023-03-31 01612986 e:CurrentFinancialInstruments e:WithinOneYear 2024-03-31 01612986 e:CurrentFinancialInstruments e:WithinOneYear 2023-03-31 01612986 e:ReportableOperatingSegment1 2023-04-01 2024-03-31 01612986 e:ReportableOperatingSegment1 2022-04-01 2023-03-31 01612986 e:UKTax 2023-04-01 2024-03-31 01612986 e:UKTax 2022-04-01 2023-03-31 01612986 e:ShareCapital 2024-03-31 01612986 e:ShareCapital 2023-03-31 01612986 e:CapitalRedemptionReserve 2023-04-01 2024-03-31 01612986 e:CapitalRedemptionReserve 2024-03-31 01612986 e:CapitalRedemptionReserve 2023-03-31 01612986 e:RetainedEarningsAccumulatedLosses 2023-04-01 2024-03-31 01612986 e:RetainedEarningsAccumulatedLosses 2024-03-31 01612986 e:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 01612986 e:RetainedEarningsAccumulatedLosses 2023-03-31 01612986 e:RetainedEarningsAccumulatedLosses 2022-04-01 01612986 d:OrdinaryShareClass1 2023-04-01 2024-03-31 01612986 d:OrdinaryShareClass1 2024-03-31 01612986 d:OrdinaryShareClass1 2023-03-31 01612986 d:FRS102 2023-04-01 2024-03-31 01612986 d:Audited 2023-04-01 2024-03-31 01612986 d:FullAccounts 2023-04-01 2024-03-31 01612986 d:PrivateLimitedCompanyLtd 2023-04-01 2024-03-31 01612986 e:WithinOneYear 2024-03-31 01612986 e:WithinOneYear 2023-03-31 01612986 e:BetweenOneFiveYears 2024-03-31 01612986 e:BetweenOneFiveYears 2023-03-31 01612986 f:PoundSterling 2023-04-01 2024-03-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 01612986










ON LINE DESIGN & ENGINEERING LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

 
ON LINE DESIGN & ENGINEERING LIMITED
 
 
COMPANY INFORMATION


Directors
J Laird 
S A Laird 
A J Mitchell 
W D Warbey 
J Fox 
L N W Bush (appointed 9 October 2023)
M Renshaw (appointed 1 October 2023)
B P Conlan (resigned 31 May 2023)
A J Stevenson (resigned 29 September 2023)
C P Hamilton (appointed 10 June 2024)




Company secretary
J Fox



Registered number
01612986



Registered office
On Line House
Pelham Road

Immingham

North Lincolnshire

DN40 1AB




Independent auditors
Shorts
Chartered Accountants & Statutory Auditor

Cedar House

63 Napier Street

Sheffield

South Yorkshire

S11 8HA




Bankers
Barclays





 
ON LINE DESIGN & ENGINEERING LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 5
Independent Auditors' Report
 
6 - 9
Statement of Income and Retained Earnings
 
10
Balance Sheet
 
11
Notes to the Financial Statements
 
12 - 23

 
ON LINE DESIGN & ENGINEERING LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The directors present their strategic report for the year ended 31 March 2024.

Principal activity
 
The principal activity of the Company is design, consultancy and project management services for the refining, power, chemical, oil & gas and nuclear industries.

Business review
 
During the year ended 31 March 2024 the Company’s turnover has grown significantly by 35% following a return to investment and growth in the industries within which the company operates.
The Company has maintained strong relationships with its clients against challenging market conditions within the oil and gas sector through diversification and further improving the gross margin to 19.3%. The company has continued to provide high quality services to its blue-chip customer base throughout the year and considers the strength of its existing contracts key to future development and growth. In the coming year the Company is expected to see further return to the customer investment and industry growth.
The directors consider the net profit in the year to be encouraging with a return to profit as predicted in their previous report as the extensive efficiency and overhead savings exercises in prior years, have brought an improved profitability. 
The Company has maintained a positive Balance sheet and liquidity indicators continue to remain positive.

Hive across of trade from BPE Design and Support Ltd

On 31 March 2024, the trade, as well as the assets and liabilities of BPE Design and Support Ltd, a  fellow subsidiary, were transferred into the Company. The associated assets and liabilities were  transferred across on this date at their book value.  
The balance sheet as at 31 March 2024 presents the combined position of the two entities. The resulting intercompany loans will be settled during the year ending 31 March 2025. 
This merger allows the leadership team to gain from the synergies between the existing operating methods as well as continue to develop best in class offerings through the sharing of common goals. The merger was completed on the 31st March 2024 and the carrying values of the balance sheets of the two entities were merged at the balance sheet date. No goodwill was generated as a result of the transaction.

Financial key performance indicators
 
The Company’s key performance indicators for the year (along with comparatives) are as follows:
- Turnover - £13,862,660 (2023: £10,335,848)
- Gross profit - £2,677,428 (2023: £1,900,996)
- Gross margin - 19.3% (2023: 18.4%)
- Profit/loss before tax - profit of £19,217 (2023: loss of £387,024)

Page 1

 
ON LINE DESIGN & ENGINEERING LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Principal risks and uncertainties
 
The directors consider the principal risks facing the Company are as follows:
Strategic and Regulatory risks
The directors consider the customers changing needs to be both opportunity and risk in a competitive market. The Company’s engineering professionalism allows the directors and employees to maintain flexibility for the customer needs thereby remaining competitive. This high-quality service creates a standout brand for the Company which will help the Company to remain stable in a difficult economic climate.
The directors monitor market intelligence and draw upon industry expertise to ensure these risks are mitigated and the brand is maintained. The Company is also registered with industry specific regulatory bodies which enables the ongoing adherence to the highest standards.
Financial and liquidity risks
The Company’s principal financial assets are trade debtors and amounts recoverable on long term contracts. The risk associated with cash is limited and the counterparties have strong credit ratings which are checked and monitored by the finance team provide realistic credit limits and implementing control procedures to monitor non-compliance.
The Company manages financial risk within a group financing policy ensuring sufficient liquidity against working capital requirements.


This report was approved by the board on 13 August 2024 and signed on its behalf.



S A Laird
Director
Page 2

 
ON LINE DESIGN & ENGINEERING LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The directors present their report and the financial statements for the year ended 31 March 2024.

Directors

The directors who served during the year were:

J Laird 
S A Laird 
A J Mitchell 
W D Warbey 
J Fox 
L N W Bush (appointed 9 October 2023)
M Renshaw (appointed 1 October 2023)
B P Conlan (resigned 31 May 2023)
A J Stevenson (resigned 29 September 2023)
C P Hamilton (appointed 10 June 2024)

Results and dividends

The profit for the year, after taxation, amounted to £166,507 (2023 - loss £321,450).

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the 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 for the Company's financial statements 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 3

 
ON LINE DESIGN & ENGINEERING LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Financial instruments

The Company uses financial instruments, other than derivatives, comprising cash and other liquid resources and various other items such as trade debtors and creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Company's operations. The main risk arising from the Company's financial instruments is liquidity risk. The directors review and agree policies for managing the risk and they are summarised below. The policy has remained unchanged from previous years.
Price risk, credit risk, liquidity risk and cash flow risk
The market has become increasingly competitive in recent years and as a result there is a constant requirement to communicate both with the client and the current workforce in order to ensure both client satisfaction and workforce stability. This is achieved by the Company's professionalism and maintaining the flexibility to react to the clients' requirements. This approach sets the Company above the competition and hence maintains market share. The directors remain vigilant in order to ensure that the Company is aware of any weaknesses that would give competitors an advantage.
As the economic climate improves and clients' requirements increase, the Company needs to be responsive and increase personnel levels at short notice. 
The Company's principal financial assets are cash and trade debtors. The credit risk associated with the cash is limited as the counterparties have high credit ratings by international credit-rating agencies. The principal credit risk arises therefore from the Company's trade debtors.
A visible effect of the difficult economic climate has been an increase in the payment days taken by clients. Fortunately the majority of clients are blue chip and not liable to default, however the Company has maintained a strategy of invoicing weekly instead of monthly wherever possible in order to minimise the cash flow effects.
In order to manage credit risk the directors set limits for clients based on a combination of payment history and third party credit references. Credit limits are reviewed by the Financial Controller on a regular basis in conjunction with debt ageing and objective history. Any indication of debtor liquidity concerns is addressed immediately and efficiently to minimise potential bad debts. 
The Company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.

Qualifying third party indemnity provisions

The directors have been granted a qualifiying third party indemnity provision under Section 234 of the Companies Act 2006. This indemnity does not provide cover in the event of a director acting fraudulently or dishonestly.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

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

Page 4

 
ON LINE DESIGN & ENGINEERING LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Auditors

The auditorsShortswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 13 August 2024 and signed on its behalf.
 





S A Laird
Director
Page 5

 
ON LINE DESIGN & ENGINEERING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ON LINE DESIGN & ENGINEERING LIMITED
 

Opinion


We have audited the financial statements of On Line Design & Engineering Limited (the 'Company') for the year ended 31 March 2024, which comprise the Statement of Income and Retained Earnings, the Balance Sheet and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 March 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the 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.


Page 6

 
ON LINE DESIGN & ENGINEERING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ON LINE DESIGN & ENGINEERING LIMITED (CONTINUED)


Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 Directors' Responsibilities Statement set out on page 3, 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 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 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.


Page 7

 
ON LINE DESIGN & ENGINEERING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ON LINE DESIGN & ENGINEERING LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

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


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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
through discussions with the directors and other management and from our commercial knowledge and experience of the sectors that the Company operates in, we identified the laws and regulations applicable to the Company; and
focusing on the specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, we assessed the extent of compliance with those laws and regulations identified above through making enquiries of management and inspecting relevant correspondence.

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;
considered 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;
reading the minutes of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing any correspondence with HMRC, relevant regulators and the Company’s legal advisors

There are inherent limitations in our audit procedures described above. The more removed that laws and
Page 8

 
ON LINE DESIGN & ENGINEERING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ON LINE DESIGN & ENGINEERING LIMITED (CONTINUED)


regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
 
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.


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


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Andy Irvine (Senior Statutory Auditor)
  
for and on behalf of
Shorts
 
Chartered Accountants
Statutory Auditor
  
Cedar House
63 Napier Street
Sheffield
South Yorkshire
S11 8HA

13 August 2024
Page 9

 
ON LINE DESIGN & ENGINEERING LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£
£

  

Turnover
 4 
13,862,660
10,325,848

Cost of sales
  
(11,185,232)
(8,424,852)

Gross profit
  
2,677,428
1,900,996

Administrative expenses
  
(2,685,219)
(2,313,708)

Other operating income
 5 
4,500
-

Operating loss
 6 
(3,291)
(412,712)

Interest receivable and similar income
 10 
23,451
27,599

Interest payable and similar expenses
 11 
(943)
(1,911)

Profit/(loss) before tax
  
19,217
(387,024)

Tax on profit/(loss)
 12 
147,290
65,574

Profit/(loss) after tax
  
166,507
(321,450)

  

  

Retained earnings at the beginning of the year
  
1,932,292
2,253,742

Profit/(loss) for the year
  
166,507
(321,450)

Dividends declared and paid
  
(15,000)
-

Retained earnings at the end of the year
  
2,083,799
1,932,292
The notes on pages 12 to 23 form part of these financial statements.
Page 10

 
ON LINE DESIGN & ENGINEERING LIMITED
REGISTERED NUMBER: 01612986

BALANCE SHEET
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 13 
95,452
43,625

Current assets
  

Stocks
 14 
33,555
38,333

Debtors: amounts falling due within one year
 15 
5,991,267
3,500,426

Cash at bank and in hand
  
74,041
28,546

  
6,098,863
3,567,305

Creditors: amounts falling due within one year
 16 
(4,109,334)
(1,677,456)

Net current assets
  
 
 
1,989,529
 
 
1,889,849

Total assets less current liabilities
  
2,084,981
1,933,474

  

Net assets
  
2,084,981
1,933,474


Capital and reserves
  

Called up share capital 
 17 
362
362

Capital redemption reserve
 18 
820
820

Profit and loss account
 18 
2,083,799
1,932,292

  
2,084,981
1,933,474


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 13 August 2024.




J Fox
S A Laird
Director
Director

The notes on pages 12 to 23 form part of these financial statements.
Page 11

 
ON LINE DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

On Line Design & Engineering Limited is a private company limited by shares, incorporated in England and  Wales  (registered  number:  01612986).  Its  registered  office  is  On  Line  House,  Pelham  Road, Immingham,  North  Lincolnshire  DN40  1AB.  The  principal  activity  of  the  Company  throughout  the  year continued  to  be  that  of  design,  consultancy  and  project  management  services  to  the  refining,  power, nuclear, oil & gas and chemical industries.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of On Line Group Limited as at 31 March 2024 and these financial statements may be obtained from Companies House.

Page 12

 
ON LINE DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

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

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

 
2.4

Revenue

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

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Operating leases: the Company as lessee

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

Page 13

 
ON LINE DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.6

Pensions

Defined contribution pension plan

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

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

 
2.7

Taxation

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

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

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

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

 
2.8

Tangible fixed assets

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

Page 14

 
ON LINE DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.8
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as follows:

Depreciation is provided on the following basis:

Plant and machinery
-
25%
reducing balance
Motor vehicles
-
25%
reducing balance
Office equipment
-
25%
straight line

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

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

 
2.9

Stocks

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

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

 
2.10

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 debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured,  nitially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or  received.  However,  if  the  arrangements  of  a  short-term  instrument  constitute  a  financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial  assets  that  are  measured  at  cost  and  amortised  cost  are  assessed  at  the  end  of  each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Income and Retained Earnings.


 
Page 15

 
ON LINE DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.10
Financial instruments (continued)

Financial  assets  and  liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

 
2.11

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical judgements in applying the entity's accounting policies
No significant judgements have had to be made by management in preparing these financial statements.
Critical accounting estimates and assumptions
Preparation of the financial statements requires management to make significant judgements and estimates. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that will have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: 
Impairment of debtors
The Company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors, and historical experience. See note 15 for the net carrying amounts of trade debtors, stated after the associated impairment provision.
Amounts recoverable on long term contracts
The  Company  makes  an  estimate  of  the  recoverable  value  of  work  performed  on  long  term contracts where invoices have not yet been raised. This is done based on the levels of costs incurred, both from detailed  timesheet  records  and  other  purchase  invoices  received  and  the  contractual  terms  with customers. See note 15 for the net carrying amounts recoverable on long term contracts, stated after the associated impairment provision.

Page 16

 
ON LINE DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Rendering of services
13,862,660
10,325,848


All turnover arose within the United Kingdom.


5.


Other operating income

2024
2023
£
£

Sundry income
4,500
-



6.


Operating loss

The operating loss is stated after charging:

2024
2023
£
£

Depreciation charge
24,786
15,727

Operating lease rentals - properties
354,691
298,653

Operating lease rentals - plant and machinery
147,043
76,968


7.


Auditors' remuneration

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


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
17,390
15,260

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 17

 
ON LINE DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

8.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
4,977,872
3,921,924

Social security costs
508,009
426,127

Cost of defined contribution scheme
92,819
76,710

5,578,700
4,424,761


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


        2024
        2023
            No.
            No.







Sales, marketing and distribution, design team and engineers
96
84



Other departments
4
5

100
89


9.


Directors' remuneration

Total  directors'  emoluments  for  2024  were  £260,738  (2023:  £124,105)  with  Company  contributions  to defined contribution pension schemes of £27,197 (2023: £10,677).
During the year retirement benefits were accruing for one director (2023 - one director) in respect of defined contribution pension schemes.
The  highest  paid  director  received  remuneration  of  £137,424  (2023  -  £124,105).  The  value  of  the
Company's  contributions  paid  to  defined  contribution  pension  schemes  in  respect  of  the  highest  paid director amounted to £10,798 (2023 - £10,677).


10.


Interest receivable

2024
2023
£
£


Interest receivable from group companies
22,230
27,230

Other interest receivable
1,221
369

23,451
27,599

Page 18

 
ON LINE DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
27
-

Interest payable to group companies
916
1,911

943
1,911


12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
(147,290)
(65,574)



Tax on profit/(loss)
(147,290)
(65,574)

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 -19%). The differences are explained below:

2024
2023
£
£


Profit/(loss) on ordinary activities before tax
19,217
(387,024)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
4,804
(73,535)

Effects of:


Expenses not deductible for tax purposes
1,830
-

Capital allowances for year in excess of depreciation
60
(76)

Other tax adjustments, reliefs and transfers
8,398
-

Other permanent differences
125
-

Remeasurement of deferred tax for changes in tax rates
-
(168,819)

Adjustments to tax charge in respect of previous periods
17,040
-

Movement in deferred tax not recognised
(179,547)
176,856

Group relief
164,330
65,574

Receipt for group relief
(164,330)
(65,574)

Total tax charge for the year
(147,290)
(65,574)

Page 19

 
ON LINE DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
12.Taxation (continued)


Factors that may affect future tax charges

Tax losses carried forward at 31 March 2024 total £2,143,391 (2023: £2,929,684). No deferred tax asset
has been recognised in respect of these losses as they do not meet the criteria for recognition. There is
no other material unprovided deferred tax.


13.


Tangible fixed assets





Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Office equipment
Total

£
£
£
£
£
£



Cost


At 1 April 2023
-
112,301
3,187
-
585,729
701,217


Additions
-
10,856
-
-
28,830
39,686


Transfers intra group
5,108
-
-
26,346
5,473
36,927



At 31 March 2024

5,108
123,157
3,187
26,346
620,032
777,830



Depreciation


At 1 April 2023
-
70,988
3,187
-
583,417
657,592


Charge for the year on owned assets
-
13,197
-
-
11,589
24,786



At 31 March 2024

-
84,185
3,187
-
595,006
682,378



Net book value



At 31 March 2024
5,108
38,972
-
26,346
25,026
95,452



At 31 March 2023
-
41,313
-
-
2,312
43,625




The net book value of land and buildings may be further analysed as follows:


2024
2023
£
£

Freehold
5,108
-


The transfers intra group during the year represent the book value of the assets hived across from fellow  subsidiary, BPE Design and Support Ltd, on 31 March 2024. 

Page 20

 
ON LINE DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

14.


Stocks

2024
2023
£
£

Raw materials and consumables
33,555
38,333



15.


Debtors

2024
2023
£
£


Trade debtors
2,921,984
1,586,508

Amounts owed by group undertakings
929,066
863,413

Other debtors
11,714
17,074

Prepayments and accrued income
356,356
258,824

Amounts recoverable on long-term contracts
1,772,147
774,607

5,991,267
3,500,426



16.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
548,351
193,256

Amounts owed to group undertakings
2,731,818
1,042,608

Other taxation and social security
522,104
349,759

Other creditors
62,333
11,912

Accruals and deferred income
244,728
79,921

4,109,334
1,677,456



17.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



362 (2023 - 362) Ordinary shares of £1.00 each
362
362


Page 21

 
ON LINE DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

18.


Reserves

Capital redemption reserve

The  capital  redemption  reserve  is  made  up  of  the  par  value  of  shares  previously  purchased  by  the Company, in a purchase of own shares.

Profit and loss account

The profit and loss account consists of profits made by the Company attributable to the shareholders of the Company.


19.


Pension commitments

The  Company  operates  a  defined  contributions  pension  scheme.  The  assets  of  the  scheme  are  held separately from those of the Company in an independently administered fund. The pension cost charge represents  contributions  payable  by  the  Company  to  the  fund  and  amounted  to  £84,661  (2023 - £147,838). Contributions totalling £25,404 (2023 - £11,910) were payable to the fund at the balance sheet date and are included in creditors.


20.


Commitments under operating leases

At 31 March 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
74,826
-

Later than 1 year and not later than 5 years
35,871
-

110,697
-


21.Other financial commitments

The Company is subject to a fixed and floating charge over all assets of the Company, providing a cross guarantee  against  an  overdraft  held  in  another  Group  company.  The  value  of  the  potential  liability  is subject to variation depending on the amount of overdraft being utilised.


22.


Related party transactions

The  Company  has  taken  advantage  of  the  exemption  in  section  33  of  FRS  102  from  disclosing transactions with other members of the Group in which any subsidiary which is a party to the transaction is wholly owned by the Group.
In respect of other companies within the Group that are not wholly owned, the Company made purchases of £10,966 (2023: £15,621). At the year end the Company owed £1,004 (2023: £4,054) to this entity.

Page 22

 
ON LINE DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

23.


Controlling party

The ultimate parent is On Line Group Limited, incorporated in England and Wales.
On  Line  Group  Limited  is  the  Company's  controlling  related  party  by  virtue  of  its  100%  interest  in  the Company.
These  financial  statements  are  available  upon  request  from  Companies  House,  Crown  Way,  Cardiff, CF14 3UZ and are the largest and smallest group of undertakings for which group accounts have been drawn up.
 
Page 23