Company registration number 00809228 (England and Wales)
TICKHILL ENGINEERING COMPANY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
TICKHILL ENGINEERING COMPANY LIMITED
COMPANY INFORMATION
Directors
Mr David Haith
Mr Duane Hill
Company number
00809228
Registered office
Cow House Lane
Armthorpe
Doncaster
DN3 3EE
Auditor
Warrens GBC Ltd
Chartered Certified Accountants
33 Thorne Road
Doncaster
DN1 2HD
Bankers
Barclays Bank PLC
10 Pound Walk Industrial Estate
Heavens Walk
Doncaster
DN4 5HZ
TICKHILL ENGINEERING COMPANY LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Income statement
9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 29
TICKHILL ENGINEERING COMPANY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Company strategy
The company's strategy is to meet, and where possible exceed, the requirement of customers in the agricultural, vegetable packaging and processing and bulk material handling industries, by designing and manufacturing reputable machinery and equipment at competitive prices.
Review of the business, development and performance
The principal activity of the company continues to be that of the manufacture of agricultural and food processing equipment.
The company's key performance indicators are as follows:
2023 2022 2021 2020
Turnover 16,865,306 17,822,439 18,560,754 15,334,721
Turnover Growth (5)% (4)% 21% (23)%
Gross Profit Margin 29% 17% 16% 20%
At the end of the company's financial year end, net assets totalled £16,661,711.
Turnover for the period under review has fallen slightly from that achieved in 2022 and 2021, however the nature of the product mix and favourable market conditions has resulted in significant improvements in the margins achieved from 17% in 2022 to 29% in the current year. These margins are in line with those achieved in 2018 and are a result of the reduction in direct material costs and the inclusion of several larger contracts in the sales mix. The company has also absorbed the work undertaken by Haith Engineers Limited, a fellow subsidiary company, during the year, with a view to cutting cost duplication and to help the company to better focus its resources on its core activities. The UK market remains the principal market and represents 69% (2022 - 67%) of the overall turnover achieved in the year. Trade with the European markets remain subdued due in part to the Russian invasion of the Ukraine and its impact on fuel prices and the overall economic situation in Europe. The worldwide market has remained buoyant in the year and this represented 26% of the turnover achieved in the year (2022 - 26%). The company has retained its strong links with its customers and suppliers, through maintaining and improving the company's reputation for quality and excellence. The directors continue to monitor the level of future contracts, turnover, gross profit and cash resources which they consider to be key performance indicators. In light of the above the directors are satisfied with the profit before tax of £2,437,114 achieved and the performance of the business for the year under review.
The company has continued to expand its product range through continued investment in research and development into further automation and efficiency gains within the sectors in which it operates.
Principal risks and uncertainties
Principal risks and uncertainties faced by the business are those directly related to operating in the agricultural and processing markets and the associated labour markets. Close assessment of these markets and monitoring future contracts is undertaken to identify any changes within the business sector to try to mitigate the impact of any future general business risk within the sector to the company. In addition there is the general risk and cash flow risk associated with selling goods largely on credit. The company manages this through effective credit control procedures. Given the level of export sales, the company is further exposed to foreign currency fluctuations. The company manages the risk through ensuring contracts are undertaken in sterling and mitigating exposure throughout the period. As detailed within future developments the continuing impact of Brexit represents a risk for the business which it believes it can manage to its advantage.
The directors continue to review and develop their strategic level planning by looking to identify potential factors which could impact on the business, with a view to enable them to effectively manage and mitigate the associated risks.
TICKHILL ENGINEERING COMPANY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Employees
In order to meet its objectives, it is essential that the company recruits and retains the highest calibre of employees at every level of the organisation. The employment policies of the company embody the principles of equal opportunity. The company gives full and fair consideration to employment for disabled persons. If an employee became disabled, arrangements would be made wherever practical by identifying employment suited to that person's capabilities and provide necessary training.
Future developments
The beginning of the current financial year shows that the market has remained buoyant and results to date remain healthy.
The company is still actively looking to expand its sales and service presence in the global market. The directors are also developing a programme of internal investment within the company's production and procurement facilities in order to service increased demand both at domestic (service) and international (sales and service) levels.
The risks to the UK economic growth still remain significant and future prospects may be influenced by the continued impact on the agricultural sector of the invasion of Ukraine by Russia. The directors are confident that the business can utilise the long term impact of Brexit for its own economic benefit. In particular the impact of Brexit on the labour markets within the industry sectors the company serves are anticipated to result in increased automation to the benefit of the company.
Company reorganisation
On the 19th December 2022 the company, and Haith Engineers Limited were acquired by Haith Group Limited following a share for share exchange as part of the group's long term strategic plan. The reorganisation has enabled the group to assess its core product streams, it has also enabled it to access key resources to help the company and group to move forward and expand into the key growth markets identified by its management team.
Mr Duane Hill
Director
19 September 2024
TICKHILL ENGINEERING COMPANY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of the manufacture of agricultural and food processing equipment.
Results and dividends
The results for the year are set out in the financial statements on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr Nigel Haith
(Resigned 12 December 2023)
Mr Stephen Haith
(Resigned 12 December 2023)
Mr Michael Haith
(Resigned 12 December 2023)
Mr Christopher Haith
(Resigned 12 December 2023)
Mrs J S Brindley
(Resigned 12 December 2023)
Mr David Haith
Mr Duane Hill
Fixed assets
In the opinion of the directors the market value of freehold land and buildings is well in excess of the balance sheet values.
Changes in fixed assets during the year are set out in the notes to the financial statements.
Research and development
The company has continued to expand and improve its product range through continued innovative research and development into further mechanisation of the sectors within it operates.
In addition the company continues to look at alternative market sectors where it is believed growth can be achieved.
Future developments
The future developments of the business have been disclosed in the Strategic Report.
Auditor
The auditors, Warrens GBC Ltd, will be proposed for re-appointment in accordance with Section 487 (2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Financial Instruments
The business's principal financial instruments comprise bank balances, investment accounts, trade debtors and trade creditors. The main purpose of these instruments is to finance the business's operational activities.
TICKHILL ENGINEERING COMPANY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Price risk, credit risk, liquidity risk and cash flow risk
In respect of bank balances, the liquidity is managed by maintaining a balance sufficient to cover the company's anticipated operating funding requirements. All of the business's cash balances are held in such a way that achieves a competitive rate of interest. The business makes use of higher rate bank deposit facilities where funds are available. Trade debtors are managed in respect of credit and cash flow risks by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debts. Trade creditors' liquidity risk is managed by ensuring sufficient bank funds are available to meet amounts due, with regular fund availability reviews undertaken. The company is also exposed to pricing risks. The directors have implemented a strong procedural system within this area and all contracts are reviewed in detail throughout the full term of the contract.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr Duane Hill
Director
19 September 2024
TICKHILL ENGINEERING COMPANY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
The directors are responsible for preparing the annual 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 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.
TICKHILL ENGINEERING COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TICKHILL ENGINEERING COMPANY LIMITED
- 6 -
Opinion
We have audited the financial statements of Tickhill Engineering Company Limited (the 'company') for the year
ended 31 December 2023 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and 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 FRS 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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.
TICKHILL ENGINEERING COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TICKHILL ENGINEERING COMPANY LIMITED
- 7 -
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 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, 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.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of our audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities including fraud
As part of designing our audit, we determined materiality and assessed the risk of material misstatement in the financial statements, including how fraud may occur by enquiring with management as to its own consideration of fraud. In particular, we looked at where management made subjective judgements, for example in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. We also considered potential financial or other pressures, opportunity and motivations for fraud. As part of the discussion we identified the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations and how management monitor these processes. Appropriate procedures included the review and testing of material adjusting journals and key estimates and judgements made by management.
We gained an understanding of the legal and regularity framework applicable to the company and the industry in which it operates, drawing on our audit experience and knowledge of the company and its sector, and considered the risk of acts by the company that were contrary to these laws and regulations, including fraud.
We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to:
The Companies Act 2006 and associated legislation
UK Tax Legislation
UK Health and Safety at Work legislation
UK Employment & Labour laws and regulations
We also made enquiries of management with regards to the compliance with the above laws and regulations and obtained any necessary evidence to corroborate the information provided, for example minutes of directors and board meetings and legal correspondence between the company and its solicitors.
TICKHILL ENGINEERING COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TICKHILL ENGINEERING COMPANY LIMITED
- 8 -
We have identified revenue recognition, management override and completeness of related party transactions as key audit matters relating to irregularities, including fraud.
We have evaluated management's incentives for fraudulent manipulation of the financial statements, including the risk of management overriding controls, and identified that the principal risks relate to management bias in accounting estimates and judgmental areas of the financial statements such as revenue recognition.
The following audit work was undertaken in response to the risks identified:
- Enquiry of management, those charged with governance and the entity’s solicitors around actual and potential litigation and claims.
- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.
- Reviewing minutes of meetings of those charged with governance.
- Reviewing key sources of estimation uncertainty testing to supporting documentation, ensuring reasonableness of assumptions and consistently applied
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
- Identifying related parties and ensuring transactions are complete by testing to available supporting documentation.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Stephen Garbutt (Senior Statutory Auditor)
For and on behalf of Warrens GBC Ltd
19 September 2024
Chartered Certified Accountants
Statutory Auditor
33 Thorne Road
Doncaster
DN1 2HD
TICKHILL ENGINEERING COMPANY LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Year
Year
ended
ended
31 December
31 December
2023
2022
Notes
£
£
Turnover
3
16,865,306
17,822,439
Cost of sales
(12,020,618)
(14,792,755)
Gross profit
4,844,688
3,029,684
Administrative expenses
(2,711,577)
(2,492,441)
Other operating income
3
83,933
Operating profit
6
2,133,114
621,176
Interest receivable and similar income
8
163,954
32,116
Interest payable and similar expenses
7
(1,191)
(1,672)
Income from investments
10
141,237
46,853
Profit before taxation
2,437,114
698,473
Tax on profit
9
(471,865)
(84,804)
Profit for the financial year
1,965,249
613,669
The income statement has been prepared on the basis that all operations are continuing operations.
TICKHILL ENGINEERING COMPANY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Year
Year
ended
ended
31 December
31 December
2023
2022
£
£
Profit for the year
1,965,249
613,669
Other comprehensive income
-
-
Total comprehensive income for the year
1,965,249
613,669
TICKHILL ENGINEERING COMPANY LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
2,343,815
2,240,676
Current assets
Stocks
12
2,292,516
1,913,181
Debtors
14
3,977,481
5,530,125
Investments
19
3,244,774
3,114,837
Cash at bank and in hand
8,154,064
5,873,222
17,668,835
16,431,365
Creditors: amounts falling due within one year
15
(3,190,154)
(3,851,782)
Net current assets
14,478,681
12,579,583
Total assets less current liabilities
16,822,496
14,820,259
Creditors: amounts falling due after more than one year
16
(16,212)
(22,924)
Provisions for liabilities
18
(144,573)
(100,873)
Net assets
16,661,711
14,696,462
Capital and reserves
Called up share capital
21
122,000
122,000
Profit and loss reserves
16,539,711
14,574,462
Total equity
16,661,711
14,696,462
The financial statements were approved by the board of directors and authorised for issue on 19 September 2024 and are signed on its behalf by:
Mr Duane Hill
Director
Company Registration No. 00809228
TICKHILL ENGINEERING COMPANY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
122,000
13,960,793
14,082,793
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
613,669
613,669
Balance at 31 December 2022
122,000
14,574,462
14,696,462
Period ended 31 December 2023:
Profit and total comprehensive income for the period
-
1,965,249
1,965,249
Balance at 31 December 2023
122,000
16,539,711
16,661,711
TICKHILL ENGINEERING COMPANY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
26
(3,520)
3,043,560
Interest paid
(1,191)
(1,672)
Income taxes refunded/(paid)
773,012
(91,460)
Net cash inflow from operating activities
768,301
2,950,428
Investing activities
Purchase of tangible fixed assets
(355,357)
(167,625)
Proceeds on disposal of tangible fixed assets
20,900
50,050
Proceeds on disposal of investments
1,611
Loans and advances made
(15,120)
Receipts arising from loans and advances made
1,931,001
Interest received
150,726
27,222
Net cash generated from/(used in) investing activities
1,732,150
(88,742)
Financing activities
Repayment of borrowings
(213,183)
Payment of finance leases obligations
(6,426)
(6,127)
Net cash used in financing activities
(219,609)
(6,127)
Net increase in cash and cash equivalents
2,280,842
2,855,559
Cash and cash equivalents at beginning of year
5,873,222
3,017,663
Cash and cash equivalents at end of year
8,154,064
5,873,222
TICKHILL ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information
Tickhill Engineering Company Limited is a private company limited by shares incorporated in England and Wales. The company's registered number is 00809228 and registered office is Cow House Lane, Armthorpe, Doncaster, DN3 3EE.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
TICKHILL ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Contract revenue recognition
When the outcome of a machine build contract can be estimated reliably, contract revenue and contract costs are recognised as revenue and expenses respectively by reference to the stage of completion of the contract activity at the balance sheet date (percentage of completion method). When the outcome of a contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred that are likely to be recoverable. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.
At the balance sheet date, the cumulative costs incurred plus recognised profit (less retained losses) on each contract is compared against the progressed billings. Where the cumulative costs incurred plus the recognised profits (less recognised losses) exceed progress billings, the balance is presented as due from customers on contracts within debtors. Where progressed billings exceed the cumulative costs incurred plus recognised profits (less recognised losses), the balance is presented as payments on account of contracts within creditors. Costs incurred in connection with future activity on a contract are shown as contract work in progress on the balance sheet unless it is not probable that such costs are recoverable from the customers, in which case, such costs are recognised as an expense immediately.
Progress billings not yet paid by customers and retentions by customers are included within trade debtors. Advances received are included within trade creditors.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% per annum on cost
Plant and equipment
25% per annum reducing balance basis and 16.67% to 20% per annum on straight line basis
Motor vehicles
25% to 30% per annum reducing balance basis
Freehold land is not depreciated.
The assets’ residual values and useful lives are reviewed and adjusted if necessary, at the end of each reporting period. The effect of any change is accounted for prospectively.
Tangible assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs and borrowing costs capitalised.
Tangible assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in the profit and loss account
TICKHILL ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Fair value measurement of financial instruments
Current asset investments are measured at fair value (FVTPL) as detailed in the accounting policy notes. All other financial instruments are measured as detailed below.
TICKHILL ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
TICKHILL ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
TICKHILL ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Contributions in respect of the company's defined contribution pension scheme are charged to the profit and loss account for the year in which they are payable to the scheme. Differences between contributions payable and contributions actually paid in the year are shown as either accruals or prepayments at the year end.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.15
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
TICKHILL ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.17
Current asset investments
Investments within current assets are bank deposit accounts that are held on terms whereby they do not meet the criteria to be treated as cash at bank and in hand.
The current asset investments are classified at fair value through the profit and loss account (FVTPL).
Financial assets classified at their FVTPL are initially recognised at the fair value of the consideration paid. They are subsequently measured at fair value with any resultant gain or loss recognised in the statement of income and retained earnings.
2
Judgements and key sources of estimation uncertainty
The preparation of financial statements in conformity with FRS 102 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The actual outcome may diverge from these estimates if other assumptions are made, or other conditions arise.
Significant judgements
In the course of preparing the financial statements, no significant judgements have been made in the process of applying the company's accounting policies, other than those involving estimations that have had a significant effect on the amounts recognised in the financial statements.
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and by their nature, will rarely equal the related actual outcome. The company does not have any key assumptions concerning the future, or other key sources of estimation or uncertainty in the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Notwithstanding this, the following matters should be noted;
A significant proportion of the company's activities relate to projects which are accounted for using long term contract work in progress principles. The company is required to make estimates for revenue and margins. These estimates may depend upon the outcome of future events and may need to be revised as circumstances change.
In relation to the company's property, plant and equipment useful economic lives and residual value of assets have been established using historical experience and an assessment of the nature of the assets involved, again these estimates may need to be revised as circumstances and technology change.
3
Turnover
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
11,674,747
11,921,954
Europe
757,191
1,259,000
Rest of World
4,433,368
4,641,485
16,865,306
17,822,439
TICKHILL ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Administration
5
5
Production
96
98
Management
8
7
Total
109
110
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
4,183,549
3,984,189
Social security costs
454,039
450,845
Pension costs
230,954
172,484
4,868,542
4,607,518
5
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
582,557
621,986
Company pension contributions to defined contribution schemes
148,589
89,125
731,146
711,111
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 7).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
185,567
144,853
Company pension contributions to defined contribution schemes
69,917
31,525
TICKHILL ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
6
Operating profit
2023
2022
Operating profit for the period is stated after charging/(crediting):
£
£
Exchange losses/(gains)
2
(18)
Government grants
-
(1,847)
Fees payable to the company's auditor for the audit of the company's financial statements
44,780
46,670
Depreciation of owned tangible fixed assets
287,506
247,602
Depreciation of tangible fixed assets held under finance leases
6,669
8,754
Profit on disposal of tangible fixed assets
(12,669)
(17,920)
Hire of equipment
41,829
56,575
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
182
Other finance costs:
Interest on finance leases and hire purchase contracts
1,191
1,490
1,191
1,672
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
143,315
30,147
Other interest income
20,639
1,969
Total income
163,954
32,116
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
143,315
30,147
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
428,164
62,304
Adjustments in respect of prior periods
1
52,757
Total current tax
428,165
115,061
TICKHILL ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
2023
2022
£
£
(Continued)
- 23 -
Deferred tax
Origination and reversal of timing differences
43,700
(30,257)
Total tax charge
471,865
84,804
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
2,437,114
698,473
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
573,223
132,710
Tax effect of expenses that are not deductible in determining taxable profit
2,852
1,038
Adjustments in respect of prior years
1
52,757
Permanent capital allowances in excess of depreciation
(1,006)
Permanent timing differences
8,688
6,317
Provision for research & development
(115,486)
(99,750)
Difference in tax rates - Deferred Tax
2,587
(7,262)
Taxation charge for the period
471,865
84,804
10
Other gains and losses - income from Investments
2023
2022
Interest
£
£
Interest on financial assets held at fair value through profit or loss
141,237
46,853
The above interest relates to interest receivable on current asset investments which are made up of bank deposits whose terms are such that they do not fall to be treated as cash at bank.
TICKHILL ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
11
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
1,905,615
2,637,245
474,803
5,017,663
Additions
275,545
130,000
405,545
Disposals
(60,475)
(60,475)
At 31 December 2023
1,905,615
2,912,790
544,328
5,362,733
Depreciation and impairment
At 1 January 2023
361,611
2,143,239
272,137
2,776,987
Depreciation charged in the year
37,735
170,029
86,411
294,175
Eliminated in respect of disposals
(52,244)
(52,244)
At 31 December 2023
399,346
2,313,268
306,304
3,018,918
Carrying amount
At 31 December 2023
1,506,269
599,522
238,024
2,343,815
At 31 December 2022
1,544,004
494,006
202,666
2,240,676
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Plant and equipment
19,591
26,261
Freehold land and buildings includes non depreciated land amounting to £18,489 .
12
Stocks
2023
2022
£
£
Raw materials and consumables
2,193,816
1,801,253
Work in progress
-
35,540
Finished goods and goods for resale
98,700
76,388
2,292,516
1,913,181
TICKHILL ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
13
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
3,501,609
3,663,829
Instruments measured at fair value through profit or loss
3,244,774
3,114,837
Carrying amount of financial liabilities
Measured at amortised cost
2,275,920
3,598,350
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,370,787
1,617,126
Amounts recoverable on contracts
69,679
186,834
Corporation tax recoverable
238,887
1,057,627
Amounts owed by group undertakings
15,120
Other debtors
115,702
2,245,453
Prepayments and accrued income
167,306
251,612
3,977,481
5,358,652
2023
2022
Amounts falling due after more than one year:
£
£
Corporation tax recoverable
171,473
Total debtors
3,977,481
5,530,125
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases - secured
17
6,712
6,426
Payments received on account
808,651
1,527,863
Trade creditors
1,051,963
1,383,610
Amounts owed to group undertakings
339,591
Corporation tax
328,164
117,200
Other taxation and social security
602,282
159,156
Other creditors
552,773
Accruals and deferred income
52,791
104,754
3,190,154
3,851,782
TICKHILL ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases - secured
17
16,212
22,924
17
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
6,712
6,426
In two to five years
16,212
22,924
22,924
29,350
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 6 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The amounts due in respect of finance lease and hire purchase contracts are secured on the underlying assets financed.
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
144,573
100,873
2023
Movements in the year:
£
Liability at 1 January 2023
100,873
Charge to profit or loss
43,700
Liability at 31 December 2023
144,573
There is expected to be no material reversal of deferred tax charge in the following financial period.
TICKHILL ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
19
Current asset investments
2023
2022
£
£
Other investments
3,244,774
3,114,837
The current asset investment are bank term deposits.
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
230,954
172,484
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
Monthly employee contributions collected and paid over immediately after the financial year end amounted to £22,955 (2022 - £22,146).
21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
122,000
122,000
122,000
122,000
22
Capital commitments
Amounts contracted for but not provided in the financial statements:
2023
2022
£
£
Acquisition of tangible fixed assets
-
201,120
23
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2023
2022
£
£
Aggregate compensation
954,642
843,592
Employers NIC contributions costs of £100,346 (2022 - £97,503) were met on behalf of the key management personnel in addition to the above remuneration costs.
Other information
TICKHILL ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
23
Related party transactions
(Continued)
- 28 -
During the year the company purchased goods and services, on normal commercial terms, from companies under common control of the Haith family directors of £175 (2022: £21,206). In 2022 a vehicle was acquired from a company under common control of the Haith family directors at its then market value of £27,000, no transactions of this nature were undertaken in 2023.
The company sold goods and services and re-charged costs, on normal commercial terms, to companies under common control of the Haith family directors amounting to £Nil (2022: £263).
At the year end, creditors and accruals included amounts owing to companies under common control of the Haith family directors of £Nil (2022: £58,425). The amounts owing are interest free and repayable on demand.
Included in debtors are amounts due from companies under common control of the Haith family directors of £Nil (2022 - £1,380,115). The amounts due are interest free and repayable on demand.
During the year the company acquired goods and services from Haith Engineers Limited, a fellow subsidiary effective from the 1st January 2023, on normal commercial terms amounting to £190,000 (2022 - £447,000) and sold goods and services and recharged costs to them on normal commercial terms amounting to £90,600 (2022 - £208.722). At the 31st December 2023 Tickhill Engineering Company Limited owed Haith Engineers Limited £339,591 (2022 - £477,348). The amount owing is interest free and repayable on demand.
At the 31st December 2023 the company was owed £15,120 by its parent undertaking, Haith Group Limited, in respect of costs paid on its behalf The amount owed is interest free and repayable on demand.
The balance outstanding on directors loans owed to the company at the 31st December 2023 was £Nil (2022: £521,353) following the repayment of all loans outstanding during the year. The loans were interest free and repayable on demand. .
The company acquired goods and services from a company under the control of one of the Haith family director / shareholder's immediate family amounting to £190,193 (2022: £179,811). At the 31st December 2023 £31,937 was owed by Tickhill Engineering Limited to the company (2022: £22,480) on normal trading terms.
At the 31st December 2023 the company was owed £74,257, interest free on extended trading terms, by a fellow subsidiary of a company holding a participating interest in Haith Group Limited at that date.
There is a cross guarantee and debenture with Haith Engineers Limited in favour of Barclays Bank PLC in respect of the loan account and overdraft facilities of Haith Engineers Limited, securing any future borrowings that this company may negotiate. At the balance sheet date there were no outstanding liabilities under the cross guarantee and debenture.
24
Parent undertaking
On the 1st January 2023 following the share for share exchange undertaken on the19th December 2022 with Haith Group Limited the company became a wholly owned subsidiary of Haith Group Limited. Haith Group Limited is the company's ultimate parent undertaking
TICKHILL ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
25
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
5,873,222
2,280,842
8,154,064
Obligations under finance leases
(29,350)
6,426
(22,924)
5,843,872
2,287,268
8,131,140
26
Cash (absorbed by)/generated from operations
2023
2022
£
£
Profit for the year after tax
1,965,249
613,669
Adjustments for:
Taxation charged
471,865
84,804
Finance costs
1,191
1,672
Interest received
(163,954)
(32,116)
Gain on disposal of tangible fixed assets
(12,669)
(17,920)
Depreciation and impairment of tangible fixed assets
294,175
256,356
Interest received and fair value gains on current asset investments
(141,237)
(46,853)
Movements in working capital:
(Increase) in stocks
(379,335)
(192,138)
(Increase)/decrease in debtors
(1,379,110)
2,292,946
(Decrease)/increase in creditors
(659,695)
83,140
Cash (absorbed by)/generated from operations
(3,520)
3,043,560
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