REGISTERED NUMBER: |
Econ Engineering Limited |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31st March 2024 |
REGISTERED NUMBER: |
Econ Engineering Limited |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31st March 2024 |
Econ Engineering Limited (Registered number: 00644062) |
Contents of the Financial Statements |
for the year ended 31st March 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Notes to the Financial Statements | 13 |
Econ Engineering Limited |
Company Information |
for the year ended 31st March 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditor |
Regent's Court |
Princess Street |
Hull |
East Yorkshire HU2 8BA |
Econ Engineering Limited (Registered number: 00644062) |
Strategic Report |
for the year ended 31st March 2024 |
The directors present their strategic report for the year ended 31st March 2024. |
REVIEW OF THE BUSINESS |
Econ has had another successful year of trading, with increased operations at Ripon from the introduction of new technology and additional plant and machinery purchased, to maximise production of our products and improve efficiency. |
Sowerby Service centre continues to operate at full capacity servicing the hire fleet and preparing vehicles for the Secondhand market. In addition to the Sowerby site further hire fleet servicing is taking place at our depots in Alloa, Cardiff and Halesworth. This has allowed the company to expand the hire fleet and continue to provide excellent customer service across the country. |
RESEARCH AND DEVELOPMENT |
The technical development team at Econ have been working hard developing our next generation of electric vehicles including the Electric QCB (EQCB), and work is still ongoing to ensure we develop our product range further. Electrification of commercial vehicles are becoming more important with the environmental targets set by the government and we are committed to be able to offer electric winter maintenance vehicles to our customers. Econ continues to research the use of other environmentally friendly vehicle solutions in conjunction with our current electric range. |
Ongoing development of navigational aids to assist drivers and the routes to be gritted are of upmost importance to our customers and Econ are continuing to develop control systems which are driver friendly whilst increasing the performance and accuracy of the gritter bodies. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the business and the execution of the Company's strategy are subject to a number of risks. The key business risks include but not limited to rising costs for materials used in production, availability of components and labour, increase in energy costs, delays and disruption to the company's supply chain, wars and other conflict between Russia and Ukraine. |
The company reviews its performance on a monthly basis by reviewing sales, human resources, supply chain, health and safety and market share as well as financial performance. |
The company effectively monitors its risk and has systems in place that seeks to limit the effect on financial performance. The company is ISO 9001-2015 accredited and ensures that quality is maintained, and systems are in place to deal with supply chain and production issues. |
The company also seeks to protect itself from exposure to regulatory risks in particular in areas of product liability and health and safety legislation by closely monitoring technical and regulatory developments. |
KPI's |
The company's key performance indicators used by Econ are the hire utilisation rates exceeding the 90% barrier, to maintain a market share of 80% of the winter maintenance market (excluding the Highways England Contract), warranty costs being less than 2% of turnover, production rework being less than 1% of production hours, and monitoring the manufacturing routes to increase efficiencies in the manufacturing process. |
Econ Engineering Limited (Registered number: 00644062) |
Strategic Report |
for the year ended 31st March 2024 |
SECTION 172(1) STATEMENT |
The Directors have considered the matters set out in s172 part (1) (a) to (f) when performing their duty to promote the success of the company and actively consider the strategy most likely to promote success for its investors for the long term. This strategy has regard to the interests of the company's employees and other stakeholders, including the impact of its activities on our community, the environment and the company's reputation when making key decisions. |
We recognise that our employees are an invaluable asset to the company and make every effort to regularly cascade relevant information to them and give an opportunity to them to provide feedback. As a responsible employer, we consider the implications of decisions on our colleagues and strive to provide a safe and rewarding working environment for all employed by the company. We actively encourage participation in Health & Safety training and ensure all colleagues receive training appropriate to their role and responsibilities. This training is available throughout the organisation to enable the company's employees to continue to develop their skill set. |
The Directors, and all employees, value our customers, and the provision of high-quality service is at the forefront of our decision making. Our relationship with our suppliers is also highly important to both our strategic goals and our ways of working. We aim to develop long term working relationships with both customers and suppliers by trading with them fairly and transparently, and promoting our mutual success. |
ON BEHALF OF THE BOARD: |
Econ Engineering Limited (Registered number: 00644062) |
Report of the Directors |
for the year ended 31st March 2024 |
The directors present their report with the financial statements of the company for the year ended 31st March 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the manufacture and maintenance of commercial vehicle bodies for highway maintenance, principally salt spreaders, snow ploughs and Hot Boxes and the hiring out of salt spreaders and snow ploughs. |
DIVIDENDS |
Interim dividends of £1,884,960 were paid during the year. |
Subsequent to the year end, the Directors approved a dividend of £0.074p a share in relation to financial year 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st April 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
GOING CONCERN |
The financial statements have been prepared on the going concern basis. In making their assessment, the Directors have considered the financial position of the company and the forecasts and funding available to it over the going concern assessment period to September 2025. The Directors have concluded that there are no indications of material uncertainties that may cast doubt on the company's ability to continue to trade as a going concern and therefore continue to adopt the going concern basis of preparation. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | 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. |
Econ Engineering Limited (Registered number: 00644062) |
Report of the Directors |
for the year ended 31st March 2024 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Smailes Goldie, will be deemed re-appointed under Section 487 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Econ Engineering Limited |
Opinion |
We have audited the financial statements of Econ Engineering Limited (the 'company') for the year ended 31st March 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31st March 2024 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Econ Engineering Limited |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page four, 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 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. |
Report of the Independent Auditors to the Members of |
Econ Engineering Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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. |
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 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, tax legislation, data protection, anti-bribery, employment, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management 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; |
- | tested journal entries to identify unusual transactions; |
- | assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- | investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- | agreeing financial statement disclosures to underlying supporting documentation; |
- | reading the minutes of meetings of those charged with governance; |
- | enquiring of management as to actual and potential litigation and claims; and |
- | reviewing correspondence with relevant regulators and the company's legal advisors. |
Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances 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. |
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Econ Engineering Limited |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants |
Statutory Auditor |
Regent's Court |
Princess Street |
Hull |
East Yorkshire HU2 8BA |
Econ Engineering Limited (Registered number: 00644062) |
Statement of Comprehensive Income |
for the year ended 31st March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
3,154,477 | 2,414,387 |
11,954,462 | 9,607,191 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
13,000,926 | 10,114,713 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Econ Engineering Limited (Registered number: 00644062) |
Balance Sheet |
31st March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
Investment property | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors: amounts falling due within one year |
13 |
Debtors: amounts falling due after more than one year |
13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Capital redemption reserve | 19 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Econ Engineering Limited (Registered number: 00644062) |
Statement of Changes in Equity |
for the year ended 31st March 2024 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1st April 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31st March 2023 | 19,312 | 65,675,846 | 65,703,741 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31st March 2024 |
Econ Engineering Limited (Registered number: 00644062) |
Notes to the Financial Statements |
for the year ended 31st March 2024 |
1. | STATUTORY INFORMATION |
Econ Engineering Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
Going concern |
The financial statements have been prepared on the going concern basis. In making their assessment, the Directors have considered the financial position of the company and the forecasts and funding available to it over the going concern assessment period to September 2025. The Directors have concluded that there are no indications of material uncertainties that may cast doubt on the company's ability to continue to trade as a going concern and therefore continue to adopt the going concern basis of preparation. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 3.17(d); |
• | the requirement of paragraph 33.7. |
Preparation of consolidated financial statements |
At the balance sheet date the company's only subsidiary undertaking was Econ (Scotland) Limited. The company remained dormant throughout the current and prior periods and holds no material assets or liabilities. The directors consider the effect of including Econ (Scotland) Limited in the company's financial statements not to be necessary for the purpose of giving a true and fair view of those financial statements. These financial statements therefore present information about the company as an individual undertaking and not about its group. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Turnover |
Turnover represents net invoiced amounts in respect of sale and hire of goods, excluding value added tax. |
Econ Engineering Limited (Registered number: 00644062) |
Notes to the Financial Statements - continued |
for the year ended 31st March 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Freehold property | - 2% to 25% on cost |
Leasehold property | - Over the period of the lease |
Plant and machinery | - 10% to 50% on cost |
Motor vehicles | - 25% on cost |
Impairment |
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Investment property |
Investment properties were subject to valuation by the directors who are not professionally qualified valuers. Any changes in fair value recognised in profit and loss. At the year end, the directors are of the opinion that the fair value of the investment property does not differ substantially from the current carrying value. |
Stocks |
Stock and work in progress is stated at the lower of cost and net realisable value, with due allowance for any obsolete or slow moving items. Cost represents that expenditure which has been incurred in the normal course of business in bringing the product or service to its present location and condition. |
In the case of consumable stores, cost means purchase price including transport and handling costs, less trade discounts, calculated on a current replacement cost basis. In the case of work in progress and finished goods, cost consists of direct materials, direct labour and attributable production and other overheads based on normal levels of activity. |
Net realisable value means estimated selling price less all further costs to completion and all costs to be incurred in marketing, selling and distribution. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Econ Engineering Limited (Registered number: 00644062) |
Notes to the Financial Statements - continued |
for the year ended 31st March 2024 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to the profit and loss account as incurred. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Debtors and creditors receivable / payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
3. | TURNOVER |
The whole of the turnover is attributable to the principal activity of the company being the production, sale and hiring out of commercial vehicles for highway maintenance. |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 9,019,052 | 7,483,939 |
Social security costs | 1,179,681 | 1,000,505 |
Other pension costs | 387,904 | 235,127 |
10,586,637 | 8,719,572 |
The average monthly number of employees during the year was as follows: |
2024 | 2023 |
Office and management | 44 | 46 |
Manufacturing | 206 | 198 |
250 | 244 |
Econ Engineering Limited (Registered number: 00644062) |
Notes to the Financial Statements - continued |
for the year ended 31st March 2024 |
2024 | 2023 |
£ | £ |
Directors' remuneration |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director for the year ended 31st March 2024 is as follows: |
2024 |
£ |
Emoluments etc |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Other interest payable |
Hire purchase |
Econ Engineering Limited (Registered number: 00644062) |
Notes to the Financial Statements - continued |
for the year ended 31st March 2024 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
(Over)/under provision in |
previous year | (610,402 | ) | - |
Total current tax |
Deferred tax: |
Deferred tax |
(Over)/under provision in |
previous year | 422,485 | - |
Total deferred tax |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Tax on chargeable gains | 91,731 | 14,397 |
Overprovision in previous year | (187,916 | ) | - |
Adjustment for tax calculated at increased rate | - | 49,871 |
Super deduction enhanced expenditure | - | (103,872 | ) |
Fixed asset differences | 106,803 | - |
Other tax differences | (126,010 | ) | - |
Movements in deferred tax not recognised | 71,971 | - |
Total tax charge | 2,875,756 | 1,959,902 |
8. | DIVIDENDS |
The Directors recommend a final dividend for the year of £1,884,960. |
Econ Engineering Limited (Registered number: 00644062) |
Notes to the Financial Statements - continued |
for the year ended 31st March 2024 |
9. | TANGIBLE FIXED ASSETS |
Freehold | Short | Plant and | Motor |
property | leasehold | machinery | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1st April 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) |
At 31st March 2024 |
DEPRECIATION |
At 1st April 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31st March 2024 |
NET BOOK VALUE |
At 31st March 2024 |
At 31st March 2023 |
Included in cost of land and buildings is freehold land of £ 6,231,118 (2023 - £ 6,231,118 ) which is not depreciated. |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1st April 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
Transfer to ownership | (7,036,844 | ) | (143,634 | ) | (7,180,478 | ) |
At 31st March 2024 |
DEPRECIATION |
At 1st April 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
Transfer to ownership | (4,456,788 | ) | (131,673 | ) | (4,588,461 | ) |
At 31st March 2024 |
NET BOOK VALUE |
At 31st March 2024 |
At 31st March 2023 |
Econ Engineering Limited (Registered number: 00644062) |
Notes to the Financial Statements - continued |
for the year ended 31st March 2024 |
10. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakin |
£ |
COST |
At 1st April 2023 |
and 31st March 2024 |
NET BOOK VALUE |
At 31st March 2024 |
At 31st March 2023 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Name of company |
Country of registration and operation |
Nature of business |
Proportion of voting rights and shares held |
Econ (Scotland) Limited | Scotland | Dormant | 100% |
11. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1st April 2023 |
and 31st March 2024 |
NET BOOK VALUE |
At 31st March 2024 |
At 31st March 2023 |
12. | STOCKS |
2024 | 2023 |
£ | £ |
Raw materials |
Work-in-progress |
Finished goods |
Econ Engineering Limited (Registered number: 00644062) |
Notes to the Financial Statements - continued |
for the year ended 31st March 2024 |
13. | DEBTORS |
2024 | 2023 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Prepayments and accrued income |
Amounts falling due after more than one year: |
Related parties | 4,715,103 | 4,540,022 |
Prepayments and accrued income |
Aggregate amounts |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Hire purchase contracts (see note 16) |
Trade creditors |
Corporation tax |
Social security and other taxes |
Other creditors |
Amounts due to related parties |
Accrued expenses |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Hire purchase contracts (see note 16) |
Amounts due to related parties | 937,470 | 964,634 |
Econ Engineering Limited (Registered number: 00644062) |
Notes to the Financial Statements - continued |
for the year ended 31st March 2024 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase | contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Certain plant and machinery and motor vehicles are held under hire purchase arrangements. Hire purchase liabilities are secured by the related asset held under hire purchase. |
Non-cancellable | operating leases |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
17. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 2,256,314 | 1,539,471 |
Deferred |
tax |
£ |
Balance at 1st April 2023 |
Provided during year |
Under provision in prior year | 422,485 |
Balance at 31st March 2024 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 19,312 | 19,312 |
Econ Engineering Limited (Registered number: 00644062) |
Notes to the Financial Statements - continued |
for the year ended 31st March 2024 |
19. | RESERVES |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1st April 2023 | 65,684,429 |
Profit for the year | - |
Dividends | ( |
) | - | ( |
) |
At 31st March 2024 | 72,482,594 |
a) Retained earnings |
The retained earning account represents cumulative profits and losses net of dividends and other adjustments. |
b) Capital redemption reserve |
The capital redemption reserve represents non-distributable reserves. |
20. | PENSION COMMITMENTS |
The company operates defined contribution pension schemes. The assets of the schemes are held separately from those of the company in independently administered funds. The pension cost charge represents contributions payable by the company to the funds and amounted to £387,904 (2023 £235,127). At the year end there were contributions outstanding of £nil. (2023: £nil). |
21. | ULTIMATE PARENT COMPANY |
The company's immediate and ultimate parent company is Econ Engineering Group Limited, whose group accounts the results of the company are consolidated within. |
Mr J Lupton is the ultimate controlling party through his majority shareholding in Econ Engineering Group Limited. |
The consolidated financial statements of the group are available to the public and may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ. |
22. | CONTINGENT LIABILITIES |
The company has made a guarantee over a financial obligation of its parent, Econ Engineering Group Limited. At 31st March 2024 the maximum potential liability was £3,000,000. |
23. | CAPITAL COMMITMENTS |
At 31 March 2024, the company had capital commitments for future capital expenditure not provided in the financial statements as follows £271,630 |
24. | RELATED PARTY DISCLOSURES |
2024 | 2023 |
£ | £ |
Amounts due from related party | 6,566,961 | 3,566,961 |
Econ Engineering Limited (Registered number: 00644062) |
Notes to the Financial Statements - continued |
for the year ended 31st March 2024 |
24. | RELATED PARTY DISCLOSURES - continued |
2024 | 2023 |
£ | £ |
Consultancy Fees | 10,500 | - |
2024 | 2023 |
£ | £ |
Management charges received |
Rents paid | ( |
) | ( |
) |
Interest received | 44,531 | 89,042 |
Interest paid | (148,504 | ) | (209,898 | ) |
Amounts due from other related parties |
Amount due to other related parties | ( |
) | ( |
) |
Consultancy costs from director before start of their appointment |