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COMPANY REGISTRATION NUMBER: 01144914
J A Harvey (Bassingham) Limited
Financial Statements
For the year ended
30 April 2024
J A Harvey (Bassingham) Limited
Financial Statements
Year ended 30 April 2024
Contents
Page
Officers and professional advisers
1
Strategic report
2
Directors' report
4
Independent auditor's report to the members
6
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
J A Harvey (Bassingham) Limited
Officers and Professional Advisers
The board of directors
P E Harvey
D Harvey
Company secretary
A Harvey
Registered office
The Old Dairy
Navenby Lane
Bassingham
Lincoln
LN5 9JF
Auditor
Streets Audit LLP
Chartered Accountants & statutory auditor
Enterprise House
38 Tyndall Court
Commerce Road
Lynch Wood
Peterborough
Cambridgeshire
PE2 6LR
Bankers
Barclays
City Office Park
Tritton Road
Lincoln
LN6 7AR
J A Harvey (Bassingham) Limited
Strategic Report
Year ended 30 April 2024
The directors present their strategic report for the year ended 30 April 2024. Review of the business The directors aim to present a balanced and comprehensive review of the development and performance of the company during the year and its position at the year end. The review is consistent with the size and non complex nature of the company and is written in the context of the risks and uncertainties that it faces. The company has continued to operate at its site in Bassingham with strong growth in the UK for its products. The directors consider that the key performance indicators are those that best communicate the the financial performance and strength of the company as a whole, these being turnover and gross profit. Turnover has decreased by 2.6% on the previous year to £9.8m. The gross profit percentage for the year has increased when compared to the previous year at 36% and £3.6m (2023 - 28%, £2.8m) which is in line with the directors' expectations. As for many businesses of this size, the business environment in which the company operates continues to be challenging, however the business has, once again, delivered satisfactory results for the year. Results and dividends The profit for the year, before taxation, amounted to £2.4m (2023 - £1.8m). Particulars of dividends paid are detailed in the notes to the financial statements. Principal risks and uncertainties Competitive pressures within the market is the main risk facing the company. The company manages this risk by focusing on product differentiation, quality, efficiency, market knowledge and customer service to give it a competitive advantage. Future developments The company intends to continue to serve its core markets with its existing product range and develop complimentary new products where opportunities present themselves. The company's principal financial instruments comprise cash and various items, such as trade debtors and trade creditors, that arise directly from its operations. The main purpose of these financial instruments is to provide finance for the company's operations. The existence of these financial instruments exposes the company to a number of financial risks. The main risks arising from the company's financial risks are credit risk, liquidity risk and interest rate risk. The directors review and agree policies for managing each of these risks and they are summarised below. These policies have remained unchanged from previous years. Credit risk The company seeks to manage its credit risk by dealing with established customers or otherwise checking the credit-worthiness of new customers, establishing clear and contractual relationships with those customers and by identifying and addressing any credit issues arising in a timely manner. Liquidity risk The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitability.
This report was approved by the board of directors on 25 September 2024 and signed on behalf of the board by:
D Harvey
Director
Registered office:
The Old Dairy
Navenby Lane
Bassingham
Lincoln
LN5 9JF
J A Harvey (Bassingham) Limited
Directors' Report
Year ended 30 April 2024
The directors present their report and the financial statements of the company for the year ended 30 April 2024 .
Directors
The directors who served the company during the year were as follows:
P E Harvey
D Harvey
Dividends
The directors do not recommend the payment of a dividend.
Disclosure of information in the strategic report
The company has chosen to set out in the Strategic Report information about the future developments of the company and the financial instruments.
Directors' responsibilities statement
The directors are responsible for preparing the directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 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 judgments 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. A resolution to reappoint Streets Audit LLP as auditors will be proposed at the forthcoming Annual General Meeting.
This report was approved by the board of directors on 25 September 2024 and signed on behalf of the board by:
D Harvey
Director
Registered office:
The Old Dairy
Navenby Lane
Bassingham
Lincoln
LN5 9JF
J A Harvey (Bassingham) Limited
Independent Auditor's Report to the Members of J A Harvey (Bassingham) Limited
Year ended 30 April 2024
Opinion
We have audited the financial statements of J A Harvey (Bassingham) Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, 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 30 April 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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.
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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company and sector in which it operates; - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, employment, environmental and health and safety legislation; - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected relationships; - assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 3 were indicative of potential bias; and - investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; - enquiring of management as to actual and potential litigation and claims; and - reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
Jonathan Day
(Senior Statutory Auditor)
For and on behalf of
Streets Audit LLP
Chartered Accountants & statutory auditor
Enterprise House
38 Tyndall Court
Commerce Road
Lynch Wood
Peterborough
Cambridgeshire
PE2 6LR
25 September 2024
J A Harvey (Bassingham) Limited
Statement of Comprehensive Income
Year ended 30 April 2024
2024
2023
Note
£
£
Turnover
4
9,810,236
10,071,758
Cost of sales
6,247,633
7,240,883
------------
-------------
Gross profit
3,562,603
2,830,875
Administrative expenses
1,201,768
1,056,171
Other operating income
5
6,000
12,165
------------
------------
Operating profit
6
2,366,835
1,786,869
Other interest receivable and similar income
10
14,529
Interest payable and similar expenses
11
14,587
23,018
------------
------------
Profit before taxation
2,366,777
1,763,851
Tax on profit
12
532,497
223,791
------------
------------
Profit for the financial year and total comprehensive income
1,834,280
1,540,060
------------
------------
All the activities of the company are from continuing operations.
J A Harvey (Bassingham) Limited
Statement of Financial Position
30 April 2024
2024
2023
Note
£
£
£
Fixed assets
Tangible assets
13
1,463,767
1,653,142
Current assets
Stocks
14
559,284
558,604
Debtors
15
3,244,656
2,861,990
Cash at bank and in hand
4,952,156
3,475,990
------------
------------
8,756,096
6,896,584
Creditors: amounts falling due within one year
16
2,688,580
2,539,993
------------
------------
Net current assets
6,067,516
4,356,591
------------
------------
Total assets less current liabilities
7,531,283
6,009,733
Creditors: amounts falling due after more than one year
17
93,900
331,576
Provisions
Taxation including deferred tax
19
230,644
305,698
------------
------------
Net assets
7,206,739
5,372,459
------------
------------
Capital and reserves
Called up share capital
22
51,000
51,000
Profit and loss account
23
7,155,739
5,321,459
------------
------------
Shareholders funds
7,206,739
5,372,459
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 25 September 2024 , and are signed on behalf of the board by:
D Harvey
Director
Company registration number: 01144914
J A Harvey (Bassingham) Limited
Statement of Changes in Equity
Year ended 30 April 2024
Called up share capital
Profit and loss account
Total
£
£
£
At 1 May 2022
51,000
3,781,399
3,832,399
Profit for the year
1,540,060
1,540,060
--------
------------
------------
Total comprehensive income for the year
1,540,060
1,540,060
At 30 April 2023
51,000
5,321,459
5,372,459
Profit for the year
1,834,280
1,834,280
--------
------------
------------
Total comprehensive income for the year
1,834,280
1,834,280
--------
------------
------------
At 30 April 2024
51,000
7,155,739
7,206,739
--------
------------
------------
J A Harvey (Bassingham) Limited
Statement of Cash Flows
Year ended 30 April 2024
2024
2023
£
£
Cash flows from operating activities
Profit for the financial year
1,834,280
1,540,060
Adjustments for:
Depreciation of tangible assets
325,036
350,609
Other interest receivable and similar income
( 14,529)
Interest payable and similar expenses
14,587
23,018
Loss/(gains) on disposal of tangible assets
15,493
( 3,966)
Tax on profit
532,497
223,791
Accrued expenses/(income)
3,515
( 1,891)
Changes in:
Stocks
( 680)
153,946
Trade and other debtors
( 382,666)
102,944
Trade and other creditors
151,968
( 38,877)
------------
------------
Cash generated from operations
2,479,501
2,349,634
Interest paid
( 14,587)
( 23,018)
Interest received
14,529
Tax paid
( 607,551)
( 291,371)
------------
------------
Net cash from operating activities
1,871,892
2,035,245
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 169,332)
( 100,347)
Proceeds from sale of tangible assets
18,178
5,450
------------
------------
Net cash used in investing activities
( 151,154)
( 94,897)
------------
------------
Cash flows from financing activities
Proceeds from borrowings
( 5,118)
Payments of finance lease liabilities
( 244,572)
( 245,905)
------------
------------
Net cash used in financing activities
( 244,572)
( 251,023)
------------
------------
Net increase in cash and cash equivalents
1,476,166
1,689,325
Cash and cash equivalents at beginning of year
3,475,990
1,786,665
------------
------------
Cash and cash equivalents at end of year
4,952,156
3,475,990
------------
------------
J A Harvey (Bassingham) Limited
Notes to the Financial Statements
Year ended 30 April 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is The Old Dairy, Navenby Lane, Bassingham, Lincoln, LN5 9JF.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on 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 The directors do not consider there to be any significant judgements recognised within 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 key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: (i) Depreciation charge The annual depreciation charge for tangible assets is sensitive to changes in the useful economic lives and residual values of the assets. These are reviewed periodically by the Directors to ensure that they reflect both external and internal factors. See note 6 for the carrying value of property plant and equipment, and accounting policy note for the useful economic lives for each class of asset.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all material timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold Property
-
2% straight line
Plant & Machinery
-
15% straight line
Fixtures & Fittings
-
15% straight line
Motor Vehicles
-
25% reducing balance
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. The entity uses the percentage of completion method to determine the amounts to be recognised in the period in respect of manufacturing contracts.
Finance leases and hire purchase contracts
Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.
Financial instruments
The company holds basic financial instruments as defined in FRS102. The financial assets and financial liabilities of the company and their measurement basis are as follows: Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments. Cash at bank is classified as a basic financial instrument and is measured at amortised cost. Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. Turnover
Turnover arises from:
2024
2023
£
£
Sale of goods
9,810,236
10,071,758
------------
-------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
2024
2023
£
£
Other operating income
6,000
12,165
-------
--------
6. Operating profit
Operating profit or loss is stated after charging/crediting:
2024
2023
£
£
Depreciation of tangible assets
325,036
350,609
Loss/(gains) on disposal of tangible assets
15,493
( 3,966)
Impairment of trade debtors
31,108
(3)
---------
---------
7. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
12,625
12,000
--------
--------
8. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Production staff
48
51
Administrative staff
2
2
Management staff
2
2
----
----
52
55
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
1,938,310
1,814,198
Social security costs
193,608
186,590
Other pension costs
46,237
43,217
------------
------------
2,178,155
2,044,005
------------
------------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
142,772
136,966
Company contributions to defined contribution pension plans
1,320
1,321
---------
---------
144,092
138,287
---------
---------
The number of directors who accrued benefits under company pension plans was as follows:
2024
2023
No.
No.
Defined contribution plans
2
2
----
----
10. Other interest receivable and similar income
2024
2023
£
£
Interest on cash and cash equivalents
14,529
--------
----
11. Interest payable and similar expenses
2024
2023
£
£
Interest on obligations under finance leases and hire purchase contracts
14,587
23,018
--------
--------
12. Tax on profit
Major components of tax expense
2024
2023
£
£
Current tax:
UK current tax expense
671,172
392,870
Adjustments in respect of prior periods
( 63,621)
( 101,499)
---------
---------
Total current tax
607,551
291,371
---------
---------
Deferred tax:
Origination and reversal of timing differences
( 75,054)
( 67,580)
---------
---------
Tax on profit
532,497
223,791
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2023: lower than) the standard rate of corporation tax in the UK of 25 % (2023: 19.50 %).
2024
2023
£
£
Profit on ordinary activities before taxation
2,366,777
1,763,851
------------
------------
Profit on ordinary activities by rate of tax
591,694
343,951
Adjustment to tax charge in respect of prior periods
( 63,621)
( 101,499)
Effect of expenses not deductible for tax purposes
5,205
24
Effect of capital allowances and depreciation
( 781)
( 18,546)
Effect of change in tax rate
( 139)
------------
------------
Tax on profit
532,497
223,791
------------
------------
13. Tangible assets
Land and buildings
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2023
568,099
2,985,276
12,774
98,873
3,665,022
Additions
22,332
147,000
169,332
Disposals
( 214,586)
( 2,500)
( 217,086)
---------
------------
--------
---------
------------
At 30 April 2024
568,099
2,793,022
12,774
243,373
3,617,268
---------
------------
--------
---------
------------
Depreciation
At 1 May 2023
106,555
1,845,806
12,319
47,200
2,011,880
Charge for the year
12,417
286,348
210
26,061
325,036
Disposals
( 181,137)
( 2,278)
( 183,415)
---------
------------
--------
---------
------------
At 30 April 2024
118,972
1,951,017
12,529
70,983
2,153,501
---------
------------
--------
---------
------------
Carrying amount
At 30 April 2024
449,127
842,005
245
172,390
1,463,767
---------
------------
--------
---------
------------
At 30 April 2023
461,544
1,139,470
455
51,673
1,653,142
---------
------------
--------
---------
------------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Plant and machinery
£
At 30 April 2024
494,493
---------
At 30 April 2023
685,998
---------
14. Stocks
2024
2023
£
£
Finished goods and goods for resale
559,284
558,604
---------
---------
15. Debtors
2024
2023
£
£
Trade debtors
2,770,524
2,513,145
Prepayments and accrued income
47,798
59,149
Directors loan account
298,017
207,185
Other debtors
128,317
82,511
------------
------------
3,244,656
2,861,990
------------
------------
16. Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,382,635
1,515,696
Accruals and deferred income
29,636
26,121
Social security and other taxes
972,983
710,231
Obligations under finance leases and hire purchase contracts
231,569
244,465
Other creditors
71,757
43,480
------------
------------
2,688,580
2,539,993
------------
------------
Hire purchase creditors of £231,569 (2023 - £244,465) are secured against assets to which they relate.
17. Creditors: amounts falling due after more than one year
2024
2023
£
£
Obligations under finance leases and hire purchase contracts
89,900
321,576
Other creditors
4,000
10,000
--------
---------
93,900
331,576
--------
---------
Hire purchase creditors of £89,900 (2023 - £321,576) are secured against assets to which they relate.
18. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2024
2023
£
£
Not later than 1 year
231,569
244,465
Later than 1 year and not later than 5 years
89,900
321,576
---------
---------
321,469
566,041
---------
---------
19. Provisions
Deferred tax (note 20)
£
At 1 May 2023
305,698
Charge against provision
( 75,054)
---------
At 30 April 2024
230,644
---------
20. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 19)
230,644
305,698
---------
---------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
230,644
305,698
---------
---------
21. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 46,237 (2023: £ 43,217 ).
22. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 0.01 (2023 - £ 1) each
100,000
1,000
1,000
1,000
Preference shares of £ 1 each
50,000
50,000
50,000
50,000
---------
--------
--------
--------
150,000
51,000
51,000
51,000
---------
--------
--------
--------
The Ordinary shares rank equally for voting purposes and dividends. The preference shareholders are not entitled to dividends.
23. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
24. Analysis of changes in net debt
At 1 May 2023
Cash flows
At 30 Apr 2024
£
£
£
Cash at bank and in hand
3,475,990
1,476,166
4,952,156
Debt due within one year
(244,465)
12,896
(231,569)
Debt due after one year
(321,576)
231,676
(89,900)
------------
------------
------------
2,909,949
1,720,738
4,630,687
------------
------------
------------
25. Directors' advances, credits and guarantees
During the year the company operated loan accounts with the directors. The year end balances were as follows:- Director A owed to the company £42,724 (2023 - £25,055 owed by the company) Director B owed to the company £255,293 (2023 - £182,130 owed to the company) The company also operated a loan account with the spouse of one of the directors. The balance owed by the company at the year end was £16,313 owed to the company (2023 - £4,986 owed to the company). No interest has been charged and the loans are repayable on demand.
26. Related party transactions
PE Harvey is a Director of the company and A Harvey is the Company Secretary. They are both Trustees of The Harvey Engineering Pension Trust. Rent of £36,000 (2023 - £36,000) was paid during the year to The Harvey Engineering Pension Trust and PE Harvey respectively, in respect of use of trading premises. Electricity costs of £10,228 (2023 - £14,286) was paid during the year to the Directors in respect of Solar power. The directors consider key management remuneration to be the directors remuneration.