Company registration number 04663100 (England and Wales)
NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
ANNUAL REPORT AND GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED
31 DECEMBER 2023
31 December 2023
NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
COMPANY INFORMATION
Directors
Mr D Hellings
Mr N Owen
(Appointed 4 July 2023)
Ms F Frykstrand
(Appointed 4 July 2023)
Secretary
Mr D Hellings
Company number
04663100
Registered office
820 The Crescent
Colchester Business Park
Colchester
Essex
CO4 9YQ
Auditor
Sumer Auditco Limited
820 The Crescent
Colchester Business Park
Colchester
Essex
CO4 9YQ
Business address
Bentalls Business Park
Bentalls
Basildon
SS14 3BN
NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 9
Profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Company statement of cash flows
17
Notes to the financial statements
18 - 35
NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the period ended 31 December 2023.

 

NOTE Overview

NOTE produces PCBAs, subassemblies and box build products. NOTE is a competitive EMS provider and business partner to customers with complex requirements and high standards. NOTE manufactured products are typically embedded in to complex industrial systems, MedTech devices, surveillance, security, and communications equipment, and more recently, in to emerging Greentech applications. NOTE’s business model builds on delivering high end manufacture, custom logistics solutions, global sourcing and procurement which are all wrapped around by high levels of customer service. NOTE’s offering covers the complete product lifecycles, from idea through to after-sales. Primarily, its customer base consists of large corporations operating on the global market, and enterprises whose main sales are in northern Europe. NOTE has a presence in Sweden, Finland, the UK, Estonia, Bulgaria, and China. Sales over the last 12 months were SEK 4,243 million, and the group has approximately 1,500 employees. NOTE is listed on Nasdaq Stockholm.

Fair Review of the business

 

Headlines

NOTE Basildon Limited is one of four UK Sites. Located in Basildon, Essex. NOTE Basildon primarily serves customers in the East and South of England.

 

These accounts are for nine months Starting 1st of April 2023 to bring NOTE Basildon into the same financial year as NOTE AB. The accounting period will return to twelve months from 1st January 2024.

 

In addition, the accounts include an adjustment for work in progress of £607K to prospectively align financial accounting policies with those of NOTE AB.

 

The change of ownership brings about many opportunities to accelerate NOTE Basildon growth plans. Collaboration and support from within NOTE AB will increase efficiencies in supply chain, sustainability and manufacturing.

 

This site is already well equipped with modern automated production lines, approximately 85 staff, all within a facility measuring 45,000 sq. ft. The site has additional capacity and space to accommodate significant growth.

 

NOTE Basildon revenue declined by 19.7% (2022 to 9 months 2023) due to one key customer exiting a long-term contract due to market conditions in the EV sector. NOTE Basildon are currently collaborating with new customers and are confident that the business will return to growth in 2024/2025.

 

NOTE Basildon operating profit for the 9 months period just above target, which considering restructuring of the business, is an excellent achievement. And Delivery and Quality performance was in line with previous years and remains at a proficient level.

 

Market Outlook

The UK electronics and manufacturing sector is expected to grow in the region of 20% compared to 2022 data.** This is in part due to a build-up of orders following global material shortages and in part due to increased demand for products using electronics. Sectors not performing well include electric vehicle (EV) production and charging following a shift in Government incentives and deadlines.

 

Inflation and the threat of a recession is likely to slow demand as the economy slows to reduce inflation and interest rates.

 

However, overall, contract electronics manufacturing is on track for growth above inflation.**

 

** Market data courtesy of Plimsoll reports, https://www.plimsoll.co.uk

 

NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 2 -
Principal Risks

Electronics manufacturing relies on a number of key elements. Customer retention, material supply, facilities, people, and cash control.

 

NOTE Basildon works with a limited number of customers which enables the business to build strong working relationships with each customer at varying levels within their business. However, as individual customers grow, they can become more dominant with them spend exceeding desired levels. NOTE Basildon has currently one customer that is above 29% of sales which poses a risk if their demand drops without sufficient notice.

 

Material supply has been challenging for all electronics manufacturers for the last few years. This year the supply of material has improved, meaning that lead times have reduced, and pricing is beginning to return to normal levels.

 

Facilities are well maintained, audited regularly and as can be expected are safe for all employees and visitors. Risk assessments, procedures and improvement actions are taken to prevent accidents which could cause injury or jeopardise the business. There have been no notifiable accidents or near misses during this period.

 

People are the most important resource that the business has. The senior management have the responsibility for ensuring that all people, meaning our employees, visitors, and our wider networks through our supply chains, are treated according to our Human Rights and Modern Slavery Polices. There have been no reported breaches to our policy during this period.

 

Cash control is monitored monthly as part of the normal financial routines. Improvements to material supply means stock turns are now improving, which in turn improves cash flow. There have been no significant bad debts. However, there is always the risk that a customer gets into financial difficulty which in turn adversely affects payments and our cash position. NOTE Basildon has one particularly high-risk customer in terms of financial stability.

Performance / Data

The business uses a number of leading and lagging performance indicators to monitor and manage the business. Much of this data is commercially sensitive and as such is confidential. The three key measures that are published and discussed with customers include:

The results in 2023 are not available as currently are being implemented to align with a group strategy.

 

The business is assessed routinely to the following standards:

 

ISO 9001 – Quality Management System

ISO 13485 – Medical Devices

 

Also currently working towards ISO14001 and 45001 over next couple of years to align with a group strategy.

 

Certificates can be obtained from the NOTE UK web site.

https://note-ems.co.uk/our-sites/note-basildon/

 

The business reports environmental and sustainability data monthly. Currently this includes Scope 1, Scope 2, and some of Scope 3. The goal is to be fully compliant with Scope 3 by the end of 2030.

 

A detailed Group sustainability report can be obtained from the NOTE UK website.

 

https://note-ems.co.uk/sustainability/

NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 3 -

Senior Management

Director / Non-Statutory Director Gender Information

 

Female     2 (40%)

Male     3 (60%)

 

Development

Since ownership changes 2023 has seen minor changes in factory upgrade. Primarily strategy of the business was to manage transition from family-owned business to corporate structure and maintaining key stakeholder relationships.

 

Upgraded one of the Selective Solder machines that enables NOTE Basildon to tackle increasingly complex PCBAs.

 

Branding and marketing will continue to feature as an ongoing project as NOTE UK works to become a recognisable provider of electronics manufacturing services.

 

Outlook and Going Concern

The outlook for NOTE Basildon is good. Work is required to consolidate the growth from 2023 and to further enable new work from existing customers. There is a healthy pipeline of enquiries, and it is expected that these will be won through the year with volume production likely to start towards the end of the year or early 2025.

 

The business is in good financial health, has further improvement plans organised and is well positioned to attract new customers.

 

There are no significant doubts about going concern and no disclosures to be made.

On behalf of the board

Mr D Hellings
Director
24 September 2024
NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 4 -

The directors present their annual report and financial statements for the period ended 31 December 2023.

Principal activities

The principal activity of the company and group continued to be that of subcontractors for the electrical equipment assembling industry with the subsidiary particularly focused on fast turnaround of products.

Results and dividends

The results for the period are set out on page 10.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

Mr D Hellings
Mr R Hellings
(Resigned 4 July 2023)
Mrs V Hellings
(Resigned 4 July 2023)
Mr A O'Brien
(Resigned 4 July 2023)
Mrs E Gavrilova
(Appointed 1 April 2023 and resigned 4 July 2023)
Mr N Owen
(Appointed 4 July 2023)
Ms F Frykstrand
(Appointed 4 July 2023)
Non-Statutory Directors
Mrs E Gavrilova
(Non-Statutory Director, appointed 5 July 2023)
Mr A O'Brien
(Non-Statutory Director, appointed 5 July 2023)
Auditor

On 28 March 2024 our auditor, SB Audit LLP, merged with Sumer Auditco Limited.

 

Accordingly SB Audit LLP formally resigned as the Company’s auditor with the Directors duly appointing Sumer Auditco Limited to fill the vacancy arising. In accordance with section 485 of the Companies Act 2006, a resolution proposing that Sumer Auditco Limited be re-appointed will be put at a General Meeting.

NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 5 -
Statement of directors' responsibilities

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 auditor of the company 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 auditor of the company is aware of that information.

Change of company name

With effect from 5 May 2024, the name of the Company was changed from DVR Limited to NOTE Basildon Limited.

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 D Hellings
Director
24 September 2024
2024-09-26
NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NOTE BASILDON LIMITED
- 6 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The 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:

NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NOTE BASILDON LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

 

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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NOTE BASILDON LIMITED
- 8 -
Auditor's responsibilities for the audit of the financial statements

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

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. 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:

 

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, through discussion with the trustees (as required by auditing standards), inspection of the society's regulatory and legal correspondence and discussed with the trustees the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

 

The potential effect of these laws and regulations on the financial statements varies considerably.

 

Firstly, the group and parent company are subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

 

Secondly, the group and parent company are subject to many other laws and regulations where the consequences of noncompliance could have a material effect on amounts or disclosure in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: compliance with ISO 9001, health and safety, import and export laws, anti-bribery and corruption, human rights and employment law and GDPR compliance. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any.

 

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the group and parent company complies with such regulations; enquiries of management and those charged with governance concerning any actual or potential litigation or claims, inspection of any relevant legal documentation, testing the appropriateness of journal entries and the performance of analytical review to identify any unexpected movements in account balances which may be indicative of fraud.

 

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

 

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.

 

NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NOTE BASILDON LIMITED
- 9 -

Use of our report

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

Timothy O'Connor (Senior Statutory Auditor)
For and on behalf of Sumer Auditco Limited
26 September 2024
Statutory Auditor
820 The Crescent
Colchester Business Park
Colchester
Essex
CO4 9YQ
NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
GROUP PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 10 -
Period
Year
ended
ended
31 December
31 March
2023
2023
Notes
£
£
Turnover
3
6,726,585
11,069,200
Cost of sales
(4,551,604)
(8,118,624)
Gross profit
2,174,981
2,950,576
Administrative expenses
(2,000,724)
(2,725,299)
Other operating income
27,062
170,466
Operating profit
4
201,319
395,743
Interest receivable and similar income
7
3,803
3,121
Interest payable and similar expenses
8
(38,464)
(31,874)
Profit before taxation
166,658
366,990
Tax on profit
9
(1,054)
27,225
Profit for the financial period
165,604
394,215
Profit for the financial period is all attributable to the owners of the parent company.
NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 11 -
Period
Year
ended
ended
31 December
31 March
2023
2023
£
£
Profit for the period
165,604
394,215
Other comprehensive income
-
-
Total comprehensive income for the period
165,604
394,215
Total comprehensive income for the period is all attributable to the owners of the parent company.
NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
31 December 2023
31 March 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,675,576
1,741,245
Current assets
Stocks
14
4,474,601
4,090,639
Debtors
15
1,389,073
1,791,620
Cash at bank and in hand
508,849
568,093
6,372,523
6,450,352
Creditors: amounts falling due within one year
16
(2,598,418)
(2,779,505)
Net current assets
3,774,105
3,670,847
Total assets less current liabilities
5,449,681
5,412,092
Creditors: amounts falling due after more than one year
17
(290,341)
(403,545)
Provisions for liabilities
Deferred tax liability
20
354,259
369,070
(354,259)
(369,070)
Net assets
4,805,081
4,639,477
Capital and reserves
Called up share capital
22
1,010
1,010
Share premium account
9,990
9,990
Profit and loss reserves
4,794,081
4,628,477
Total equity
4,805,081
4,639,477

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 24 September 2024 and are signed on its behalf by:
24 September 2024
Ms F Frykstrand
Director
Company registration number 04663100 (England and Wales)
NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 13 -
31 December 2023
31 March 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,673,808
1,739,216
Investments
12
315
315
1,674,123
1,739,531
Current assets
Stocks
14
4,474,601
4,090,639
Debtors
15
1,940,611
2,194,077
Cash at bank and in hand
500,888
557,499
6,916,100
6,842,215
Creditors: amounts falling due within one year
16
(2,572,199)
(2,760,821)
Net current assets
4,343,901
4,081,394
Total assets less current liabilities
6,018,024
5,820,925
Creditors: amounts falling due after more than one year
17
(290,341)
(403,545)
Provisions for liabilities
Deferred tax liability
20
353,817
368,563
(353,817)
(368,563)
Net assets
5,373,866
5,048,817
Capital and reserves
Called up share capital
22
1,010
1,010
Share premium account
9,990
9,990
Profit and loss reserves
5,362,866
5,037,817
Total equity
5,373,866
5,048,817

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the period was £325,049 (YE 31 March 2023 - £620,558).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 24 September 2024 and are signed on its behalf by:
24 September 2024
Ms F Frykstrand
Director
Company registration number 04663100 (England and Wales)
NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 14 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
1,010
9,990
4,366,262
4,377,262
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
394,215
394,215
Dividends
10
-
-
(132,000)
(132,000)
Balance at 31 March 2023
1,010
9,990
4,628,477
4,639,477
Period ended 31 December 2023:
Profit and total comprehensive income
-
-
165,604
165,604
Balance at 31 December 2023
1,010
9,990
4,794,081
4,805,081
NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 15 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
1,010
9,990
4,549,259
4,560,259
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
620,558
620,558
Dividends
10
-
-
(132,000)
(132,000)
Balance at 31 March 2023
1,010
9,990
5,037,817
5,048,817
Period ended 31 December 2023:
Profit and total comprehensive income
-
-
325,049
325,049
Balance at 31 December 2023
1,010
9,990
5,362,866
5,373,866
NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 16 -
Period ended
Year ended
31 December
31 March
2023
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
26
751,627
(308,756)
Interest paid
(38,464)
(31,874)
Income taxes paid
(56,116)
(128,404)
Net cash inflow/(outflow) from operating activities
657,047
(469,034)
Investing activities
Purchase of tangible fixed assets
(173,776)
(106,219)
Proceeds on disposal of tangible fixed assets
131,786
-
Interest received
3,803
3,121
Net cash used in investing activities
(38,187)
(103,098)
Financing activities
Payment of finance leases obligations
(198,977)
(286,981)
Interest paid on finance leases
13,932
20,253
Dividends paid to equity shareholders
-
(132,000)
Net cash used in financing activities
(185,045)
(398,728)
Net increase/(decrease) in cash and cash equivalents
433,815
(970,860)
Cash and cash equivalents at beginning of period
75,034
1,045,894
Cash and cash equivalents at end of period
508,849
75,034
Relating to:
Cash at bank and in hand
508,849
568,093
Bank overdrafts included in creditors payable within one year
-
(493,059)
NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
COMPANY STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 17 -
Period ended
Year ended
31 December
31 March
2023
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
27
754,260
(307,580)
Interest paid
(38,464)
(31,857)
Income taxes paid
(56,116)
(128,404)
Net cash inflow/(outflow) from operating activities
659,680
(467,841)
Investing activities
Purchase of tangible fixed assets
(173,776)
(105,053)
Proceeds on disposal of tangible fixed assets
131,786
-
0
Interest received
3,803
3,121
Net cash used in investing activities
(38,187)
(101,932)
Financing activities
Payment of finance leases obligations
(198,977)
(286,981)
Interest paid on finance leases
13,932
20,253
Dividends paid to equity shareholders
-
(132,000)
Net cash used in financing activities
(185,045)
(398,728)
Net increase/(decrease) in cash and cash equivalents
436,448
(968,501)
Cash and cash equivalents at beginning of period
64,440
1,032,941
Cash and cash equivalents at end of period
500,888
64,440
Relating to:
Cash at bank and in hand
500,888
557,499
Bank overdrafts included in creditors payable within one year
-
(493,059)
NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 18 -
1
Accounting policies
Company information

NOTE Basildon Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 820 The Crescent, Colchester Business Park, Colchester, Essex, CO4 9YQ.

 

The group consists of NOTE Basildon Limited and all of its subsidiaries.

1.1
Reporting period

The financial statements have been prepared for the period 1 April 2023 to 31 December 2023. The comparative figures are therefore not entirely comparable due to the period reported on.

1.2
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 unless otherwise stated below. The principal accounting policies adopted are set out below.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company NOTE Basildon Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods 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.

NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -

Revenue from contracts 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.

1.6
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.

1.7
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:

Long term leasehold property
Over the term of the leases
Plant and equipment
15% on writing down value
Fixtures and fittings
25% on writing down value
Motor vehicles
25% on writing down value

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

1.8
Fixed asset investments

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -

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.

1.10
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.11
Cash and cash equivalents

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

1.12
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

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.

NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
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 group 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 group 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.

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
1.13
Equity instruments

Equity instruments issued by the group 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 group.

1.14
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’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 profit and loss account, 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 if, and only if, there is 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.

1.15
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.

1.16
Retirement benefits

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

1.17
Leases

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

 

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

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

NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 23 -
1.18
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.

1.19
Foreign exchange

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

2
Judgements and key sources of estimation uncertainty

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

 

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

 

The financial statements include an estimate by the directors of obsolescent and/or damaged stock.

3
Turnover and other revenue
Period ended
Year ended
31 December
31 March
2023
2023
£
£
Turnover analysed by class of business
Main activity
6,726,585
11,069,200
Period ended
Year ended
31 December
31 March
2023
2023
£
£
Turnover analysed by geographical market
United Kingdom
6,672,160
11,069,200
Europe
54,425
-
6,726,585
11,069,200
NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 24 -
Period ended
Year ended
31 December
31 March
2023
2023
£
£
Other revenue
Interest income
3,803
3,121
Rent received
22,200
18,600
Grants received
3,112
1,866
4
Operating profit
Period ended
Year ended
31 December
31 March
2023
2023
£
£
Operating profit for the period is stated after charging/(crediting):
Exchange gains
(164)
-
Research and development costs
136,467
298,131
Government grants
(3,112)
(1,866)
Fees payable to the group's auditor for the audit of the group's financial statements
13,775
14,525
Depreciation of owned tangible fixed assets
108,050
159,066
Depreciation of tangible fixed assets held under finance leases
110,379
169,743
Profit on disposal of tangible fixed assets
(110,770)
-
Operating lease charges
262,605
338,169
5
Employees

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

Group
Company
Period ended
Year ended
Period ended
Year ended
31 December
31 March
31 December
31 March
2023
2023
2023
2023
Number
Number
Number
Number
101
100
92
91
NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 25 -

Their aggregate remuneration comprised:

Group
Company
Period ended
Year ended
Period ended
Year ended
31 December
31 March
31 December
31 March
2023
2023
2023
2023
£
£
£
£
Wages and salaries
1,903,086
2,208,693
1,759,178
2,096,093
Social security costs
180,314
191,501
167,489
181,267
Pension costs
34,006
120,245
31,055
117,800
2,117,406
2,520,439
1,957,722
2,395,160
6
Directors' remuneration
Period ended
Year ended
31 December
31 March
2023
2023
£
£
Remuneration for qualifying services
102,463
93,363
Company pension contributions to defined contribution schemes
124
43,155
102,587
136,518
7
Interest receivable and similar income
Period ended
Year ended
31 December
31 March
2023
2023
£
£
Interest income
Interest on bank deposits
3,803
3,061
Other interest income
-
60
Total income
3,803
3,121
Period ended
Year ended
31 December
31 March
2023
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
3,803
3,061
NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 26 -
8
Interest payable and similar expenses
Period ended
Year ended
31 December
31 March
2023
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,987
11,415
Interest payable to group undertakings
20,154
-
0
22,141
11,415
Other finance costs:
Interest on finance leases and hire purchase contracts
13,932
20,253
Other interest
2,391
206
Total finance costs
38,464
31,874
9
Taxation
2023
2023
£
£
Current tax
UK corporation tax on profits for the current period
15,865
56,116
Adjustments in respect of prior periods
-
0
(7,719)
Total current tax
15,865
48,397
Deferred tax
Origination and reversal of timing differences
(14,811)
(75,622)
Total tax charge/(credit)
1,054
(27,225)
NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 27 -

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

2023
2023
£
£
Profit before taxation
166,658
366,990
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
41,665
69,728
Tax effect of expenses that are not deductible in determining taxable profit
6,992
7,743
Tax effect of income not taxable in determining taxable profit
(778)
(352)
Gains not taxable
6,490
-
0
Adjustments in respect of prior years
-
0
(7,719)
Permanent capital allowances in excess of depreciation
12,570
56,382
Research and development tax credit
(51,100)
(77,455)
Movement in pension fund
-
0
(22)
Net book value of qualifying assets
(16,417)
(55,648)
Tax written down values
1,632
(19,882)
Taxation charge/(credit)
1,054
(27,225)
10
Dividends
Period ended
Year ended
31 December
31 March
2023
2023
Recognised as distributions to equity holders:
£
£
Interim paid
-
132,000
NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 28 -
11
Tangible fixed assets
Group
Long term leasehold property
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
696,425
2,779,836
325,522
15,850
3,817,633
Additions
25,924
132,675
15,177
-
0
173,776
Disposals
-
0
(97,000)
-
0
-
0
(97,000)
At 31 December 2023
722,349
2,815,511
340,699
15,850
3,894,409
Depreciation and impairment
At 1 April 2023
449,971
1,422,874
195,495
8,048
2,076,388
Depreciation charged in the period
28,082
160,950
27,883
1,514
218,429
Eliminated in respect of disposals
-
0
(75,984)
-
0
-
0
(75,984)
At 31 December 2023
478,053
1,507,840
223,378
9,562
2,218,833
Carrying amount
At 31 December 2023
244,296
1,307,671
117,321
6,288
1,675,576
At 31 March 2023
246,454
1,356,962
130,027
7,802
1,741,245
Company
Long term leasehold property
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
696,425
2,777,747
325,095
15,850
3,815,117
Additions
25,924
132,675
15,177
-
0
173,776
Disposals
-
0
(97,000)
-
0
-
0
(97,000)
At 31 December 2023
722,349
2,813,422
340,272
15,850
3,891,893
Depreciation and impairment
At 1 April 2023
449,971
1,422,453
195,429
8,048
2,075,901
Depreciation charged in the period
28,082
160,759
27,813
1,514
218,168
Eliminated in respect of disposals
-
0
(75,984)
-
0
-
0
(75,984)
At 31 December 2023
478,053
1,507,228
223,242
9,562
2,218,085
Carrying amount
At 31 December 2023
244,296
1,306,194
117,030
6,288
1,673,808
At 31 March 2023
246,454
1,355,294
129,666
7,802
1,739,216
NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
11
Tangible fixed assets
(Continued)
- 29 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
31 December
31 March
31 December
31 March
2023
2023
2023
2023
£
£
£
£
Plant and equipment
769,475
961,877
769,475
961,877
12
Fixed asset investments
Group
Company
31 December
31 March
31 December
31 March
2023
2023
2023
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
315
315
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023 and 31 December 2023
315
Carrying amount
At 31 December 2023
315
At 31 March 2023
315
13
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Speed Assembly Services Limited
United Kingdom
Ordinary and Ordinary B
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Speed Assembly Services Limited
(568,470)
(159,445)
NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 30 -
14
Stocks
Group
Company
31 December
31 March
31 December
31 March
2023
2023
2023
2023
£
£
£
£
Raw materials and consumables
3,867,631
4,090,639
3,867,631
4,090,639
Work in progress
606,970
-
606,970
-
4,474,601
4,090,639
4,474,601
4,090,639
15
Debtors
Group
Company
31 December
31 March
31 December
31 March
2023
2023
2023
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,227,449
1,761,099
1,227,449
1,761,099
Amounts owed by group undertakings
93,557
-
646,419
402,457
Other debtors
2,212
969
888
969
Prepayments and accrued income
65,855
29,552
65,855
29,552
1,389,073
1,791,620
1,940,611
2,194,077
16
Creditors: amounts falling due within one year
Group
Company
31 December
31 March
31 December
31 March
2023
2023
2023
2023
Notes
£
£
£
£
Bank loans and overdrafts
18
-
0
493,059
-
0
493,059
Obligations under finance leases
19
170,887
242,728
170,887
242,728
Trade creditors
833,261
1,320,648
821,530
1,315,548
Amounts owed to group undertakings
979,586
-
0
979,586
-
0
Amounts owed to undertakings in which the group has a participating interest
-
0
83,955
-
0
83,955
Corporation tax payable
15,865
56,116
15,865
56,116
Other taxation and social security
297,023
274,790
290,226
268,956
Deferred income
110,296
10,576
110,296
10,576
Other creditors
30,242
217,967
29,364
217,070
Accruals
161,258
79,666
154,445
72,813
2,598,418
2,779,505
2,572,199
2,760,821

Hire purchase liabilities are secured against the assets to which they relate to.

NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 31 -
17
Creditors: amounts falling due after more than one year
Group
Company
31 December
31 March
31 December
31 March
2023
2023
2023
2023
Notes
£
£
£
£
Obligations under finance leases
19
290,341
403,545
290,341
403,545
18
Loans and overdrafts
Group
Company
31 December
31 March
31 December
31 March
2023
2023
2023
2023
£
£
£
£
Bank overdrafts
-
0
493,059
-
0
493,059
Payable within one year
-
0
493,059
-
0
493,059
19
Finance lease obligations
Group
Company
31 December
31 March
31 December
31 March
2023
2023
2023
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
170,887
242,728
170,887
242,728
In two to five years
290,341
403,545
290,341
403,545
461,228
646,273
461,228
646,273

Finance lease payments represent rentals payable by the company or group 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 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 32 -
20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
31 December
31 March
2023
2023
Group
£
£
Accelerated capital allowances
353,311
368,148
Retirement benefit obligations
948
922
354,259
369,070
Liabilities
Liabilities
31 December
31 March
2023
2023
Company
£
£
Accelerated capital allowances
352,869
367,641
Retirement benefit obligations
948
922
353,817
368,563
Group
Company
Period ended
Period ended
31 December
31 December
2023
2023
Movements in the period:
£
£
Liability at 1 April 2023
369,070
368,563
Credit to profit or loss
(14,811)
(14,746)
Liability at 31 December 2023
354,259
353,817

 

21
Retirement benefit schemes
Period ended
Year ended
31 December
31 March
2023
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
34,006
120,245

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 33 -
22
Share capital
31 December
31 March
31 December
31 March
Group and company
2023
2023
2023
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
1,010
1,010
1,010
1,010
23
Operating lease commitments
Lessee

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

Group
Company
31 December
31 March
31 December
31 March
2023
2023
2023
2023
£
£
£
£
Within one year
336,522
355,189
336,522
355,189
Between two and five years
1,289,792
1,298,182
1,289,792
1,298,182
In over five years
640,496
880,682
640,496
880,682
2,266,810
2,534,053
2,266,810
2,534,053
24
Controlling party

The immediate parent company is NOTE UK Holding Limited, a company registered in England and Wales, and the ultimate parent company and ultimate controlling entity is Note AB, a company incorporated in Sweden and which is registered on Nasdaq Stockholm.

 

NOTE UK Holding Limited acquired the shares in the company on 4 July 2023. The company was previously controlled by R and V Hellings up until the change in ownership.

25
Subsidiary audit exemption

In accordance with section 479A of the Companies Act 2006 the subsidiary company Speed Assembly Services Limited, has taken advantage of the exemption from audit. In order to take advantage of the exemptions available to the subsidiary company, NOTE Basildon Limited, has guaranteed the liabilities of this subsidiary company.

NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 34 -
26
Cash generated from/(absorbed by) group operations
Period ended
Year ended
31 December
31 March
2023
2023
£
£
Profit for the period after tax
165,604
394,215
Adjustments for:
Taxation charged/(credited)
1,054
(27,225)
Finance costs
38,464
31,874
Investment income
(3,803)
(3,121)
Gain on disposal of tangible fixed assets
(110,770)
-
Depreciation and impairment of tangible fixed assets
218,429
328,809
Movements in working capital:
Increase in stocks
(383,962)
(569,022)
Decrease in debtors
402,547
1,115,843
Increase/(decrease) in creditors
324,344
(1,578,263)
Increase/(decrease) in deferred income
99,720
(1,866)
Cash generated from/(absorbed by) operations
751,627
(308,756)
27
Cash generated from/(absorbed by) operations - company
Period ended
Year ended
31 December
31 March
2023
2023
£
£
Profit for the period after tax
325,049
620,558
Adjustments for:
Taxation charged/(credited)
1,119
(27,426)
Finance costs
38,464
31,857
Investment income
(3,803)
(3,121)
Gain on disposal of tangible fixed assets
(110,770)
-
Depreciation and impairment of tangible fixed assets
218,168
328,449
Movements in working capital:
Increase in stocks
(383,962)
(569,253)
Decrease in debtors
253,466
898,617
Increase/(decrease) in creditors
316,809
(1,585,395)
Increase/(decrease) in deferred income
99,720
(1,866)
Cash generated from/(absorbed by) operations
754,260
(307,580)
NOTE BASILDON LIMITED
(FORMERLY DVR LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 35 -
28
Analysis of changes in net funds/(debt) - group
1 April 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
568,093
(59,244)
508,849
Bank overdrafts
(493,059)
493,059
-
0
75,034
433,815
508,849
Obligations under finance leases
(646,273)
185,045
(461,228)
(571,239)
618,860
47,621
29
Analysis of changes in net funds/(debt) - company
1 April 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
557,499
(56,611)
500,888
Bank overdrafts
(493,059)
493,059
-
0
64,440
436,448
500,888
Obligations under finance leases
(646,273)
185,045
(461,228)
(581,833)
621,493
39,660
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