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REGISTERED NUMBER: 10241871 (England and Wales)


















EDI HOLDINGS LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023






EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871)

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023










Page

Company Information 1

Group Strategic Report 2 to 3

Report of the Directors 4 to 5

Report of the Independent Auditors 6 to 8

Consolidated Income Statement 9

Consolidated Other Comprehensive Income 10

Consolidated Balance Sheet 11

Company Balance Sheet 12

Consolidated Statement of Changes in Equity 13

Company Statement of Changes in Equity 14

Consolidated Cash Flow Statement 15

Notes to the Consolidated Cash Flow Statement 16

Notes to the Consolidated Financial Statements 17 to 29


EDI HOLDINGS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: R H T Davies
E T Davies
J B Pace



SECRETARY: R H T Davies



REGISTERED OFFICE: Wentwood House
Langstone Business Village
Priory Drive, Langstone
Newport
NP18 2HJ



REGISTERED NUMBER: 10241871 (England and Wales)



AUDITORS: MHA
Statutory Auditor
Swansea, United Kingdom



AUDITORS OFFICE: MHA House
Charter Court
Swansea Enterprise Park
Swansea
SA7 9FS

EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023


The directors present their strategic report of the company and the group for the year ended 31 December 2023.

REVIEW OF BUSINESS
The Income Statement and Balance Sheet for the year which includes all relevant key performance indicators is set out in the annexed financial statements.

The principal activity of the trading subsidiary of the group during the year was that of bespoke vehicle design and modification. The principal activity of the company during the year was that of a holding company.

The strategy of the business is to increase its market share by focussing on new product design and strong customer service.

The group enjoys a number of competitive advantages including strong brand recognition, where it consistently achieves a strong market share; a well-established reputation for price competitiveness; a knowledgeable and enthusiastic workforce and a strong customer focus throughout the business.

Whilst trading conditions are expected to remain competitive throughout FY'24, the board consider the group to be well positioned to manage and take on this challenge.

Key performance indicators
The group's key performance indicators (KPI's) are summarised below:

KPI's - Year ended 31 December 2023 31 December 2022
Turnover £24,049k £25,805k
Cash at bank £2,613k £2,515k
Net current assets £3,619k £2,845k
Net assets £7,626k £4,485k


EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The management of the business and the execution of the group's strategy are subject to a number of risks. The key business risks affecting the group are considered to relate to competitor activity and employee retention and are summarised as follows :

Risk Potential impact Mitigation





Competition






The market in which the group
operates is subject to intense
competition. The impact of such
competition could impact on
margins.





The group continues to invest
heavily in new product design.
Providing customers with a choice
of options, coupled with a strong
focus on customer service, results
in a high level of repeat business.






People









The business could be impacted by
the loss of key individuals.





The business looks to increase
staff engagement through (1)
opportunities to give feedback and
to influence future business
developments and (2) training and
progression opportunities.

Price risk
The group is not exposed to significant commodity price risk as a result of its operations.

Credit risk
The group's financial assets are cash and trade debtors. The group's credit risk is primarily attributable to its trade debtors which are presented in the balance sheet net of allowances for doubtful debts. The group has implemented policies that require appropriate credit checks on potential customers before sales are made.

Liquidity risk
The group actively maintains a mixture of long-term and short-term debt finance that is designed to ensure that the group has sufficient funds for operations and planned expansions.

Interest rate cash flow risk
The group has both interest bearing assets and interest-bearing liabilities. Interest bearing assets comprise only cash balances, which earn interest at floating rates. The group has a policy of maintaining debt at floating rates. The directors will revisit the appropriateness of this policy should the group's operations change in size or nature.

ON BEHALF OF THE BOARD:





J B Pace - Director


26 September 2024

EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the group in the year under review was that of bespoke vehicle design and modification. The principal activity of the company during the year was that of a holding company.

DIVIDENDS
Dividends of £100,000 was distributed for the year ended 31 December 2023 (31 December 2022 - £Nil).

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

R H T Davies
E T Davies
J B Pace

GOING CONCERN
The financial statements have been prepared on a going concern basis which assumes that the group will continue in operational existence for the foreseeable future. In making their assessment the directors have reviewed the balance sheet, the likely future cash flows of the business and have considered the facilities that are in place at the date of signing the report.

The group meets its day to day working capital requirements from its cash reserves. At the date of signing the report, sales to all key markets have continued to meet budgeted levels. With no indication that at the current time this position will change, the group's forecast and projections show that the group will be able to operate sufficiently.

At the time of approving the financial statements, the directors have reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue adopt the going concern basis of accounting in preparing the financial statements.

DISCLOSURE IN THE STRATEGIC REPORT
Included in the group's strategic report is a review of the business and description of the principal risks and uncertainties facing the group.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.


EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

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

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 group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS
The auditors, MHA, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Following a rebranding exercise on 15 May 2023 the trading name of the company's independent auditor changed from MHA Macintyre Hudson to MHA.

ON BEHALF OF THE BOARD:





J B Pace - Director


26 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
EDI HOLDINGS LIMITED


Opinion
We have audited the financial statements of EDI Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 December 2023 and of the group's 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 group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group 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
EDI HOLDINGS LIMITED


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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company 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 pages four and five, 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

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:

- Enquiry of management and those charged with governance around actual, potential or suspected litigation, claims, non-compliance with applicable laws and regulations and fraud.
- Review of legal and professional fees for evidence of legal work undertaken or fines/penalties incurred.
- Reviewing of financial statements disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Performing audit work over the risk of management override, including testing of journal entries and other adjustments for appropriateness.
- Evaluating the business rationale of significant transactions outside the normal course of business, and reviewing accounting estimates for bias;
- Discussions amongst the engagement team in relation to how and where fraud might occur in the financial statements and any potential indicators of fraud.
- Discussions with management over any potential or suspected fraud.
- Performing audit work over the recognition of revenue on deliveries of services occurring at the year end to provide assurance over cut-off.
- Performing substantive tests of detail over the completeness/existence of income within the financial system.

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
EDI HOLDINGS 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.




Brian Garland BA ACA (Senior Statutory Auditor)
for and on behalf of MHA
Statutory Auditor
Swansea, United Kingdom

26 September 2024


MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership
in England and Wales (registered number OC312313).

EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871)

CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 3 24,049,425 25,804,788

Cost of sales 12,318,448 14,701,392
GROSS PROFIT 11,730,977 11,103,396

Administrative expenses 7,259,954 8,195,262
4,471,023 2,908,134

Other operating income 36,400 218,412
OPERATING PROFIT 5 4,507,423 3,126,546


Interest payable and similar expenses 6 221,585 357,310
PROFIT BEFORE TAXATION 4,285,838 2,769,236

Tax on profit 7 1,045,006 562,093
PROFIT FOR THE FINANCIAL YEAR 3,240,832 2,207,143
Profit attributable to:
Owners of the parent 3,240,832 2,207,143

EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871)

CONSOLIDATED OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 3,240,832 2,207,143


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

3,240,832

2,207,143

Total comprehensive income attributable to:
Owners of the parent 3,240,832 2,207,143

EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871)

CONSOLIDATED BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 55,928 86,606
Tangible assets 11 6,015,246 5,459,269
Investments 12 - -
6,071,174 5,545,875

CURRENT ASSETS
Stocks 13 1,638,266 2,468,836
Debtors 14 3,042,711 2,900,212
Cash at bank and in hand 2,612,545 2,514,956
7,293,522 7,884,004
CREDITORS
Amounts falling due within one year 15 3,674,238 5,038,493
NET CURRENT ASSETS 3,619,284 2,845,511
TOTAL ASSETS LESS CURRENT
LIABILITIES

9,690,458

8,391,386

CREDITORS
Amounts falling due after more than one
year

16

(1,055,093

)

(3,103,678

)

PROVISIONS FOR LIABILITIES 20 (1,009,652 ) (802,827 )
NET ASSETS 7,625,713 4,484,881

CAPITAL AND RESERVES
Called up share capital 21 253 253
Share premium 22 999,960 999,960
Other reserves 22 336,977 336,977
Retained earnings 22 6,288,523 3,147,691
SHAREHOLDERS' FUNDS 7,625,713 4,484,881

The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2024 and were signed on its behalf by:





J B Pace - Director


EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871)

COMPANY BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 - -
Tangible assets 11 - -
Investments 12 1,000,063 1,000,063
1,000,063 1,000,063

CURRENT ASSETS
Debtors 14 100,050 50

CREDITORS
Amounts falling due within one year 15 100,000 -
NET CURRENT ASSETS 50 50
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,000,113

1,000,113

CAPITAL AND RESERVES
Called up share capital 21 253 253
Share premium 22 999,960 999,960
Retained earnings 22 (100 ) (100 )
SHAREHOLDERS' FUNDS 1,000,113 1,000,113

Company's profit for the financial year 100,000 -

The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2024 and were signed on its behalf by:





J B Pace - Director


EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023

Called up
share Retained Share Other Total
capital earnings premium reserves equity
£    £    £    £    £   
Balance at 1 January 2022 253 940,548 999,960 336,977 2,277,738
Total comprehensive income - 2,207,143 - - 2,207,143
Balance at 31 December 2022 253 3,147,691 999,960 336,977 4,484,881
Dividends - (100,000 ) - - (100,000 )
Total comprehensive income - 3,240,832 - - 3,240,832
Balance at 31 December 2023 253 6,288,523 999,960 336,977 7,625,713

EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1 January 2022 253 (100 ) 999,960 1,000,113
Balance at 31 December 2022 253 (100 ) 999,960 1,000,113
Dividends - (100,000 ) - (100,000 )
Total comprehensive income - 100,000 - 100,000
Balance at 31 December 2023 253 (100 ) 999,960 1,000,113

EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871)

CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 3,308,657 6,385,016
Interest paid (189,107 ) (327,083 )
Interest element of hire purchase
payments paid

(32,478

)

(30,227

)
Tax paid (50,883 ) (563 )
Net cash from operating activities 3,036,189 6,027,143

Cash flows from investing activities
Purchase of intangible fixed assets - (32,069 )
Purchase of tangible fixed assets (1,542,664 ) (2,707,594 )
Sale of tangible fixed assets - 256,912
Net cash from investing activities (1,542,664 ) (2,482,751 )

Cash flows from financing activities
New loans in year - 498,920
Loan repayments in year (1,435,684 ) (2,874,895 )
Net cashflows on hire purchase contracts 139,748 161,004
Equity dividends paid (100,000 ) -
Net cash from financing activities (1,395,936 ) (2,214,971 )

Increase in cash and cash equivalents 97,589 1,329,421
Cash and cash equivalents at
beginning of year

2

2,514,956

1,185,535

Cash and cash equivalents at end of
year

2

2,612,545

2,514,956

EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 4,285,838 2,769,236
Depreciation charges 1,017,365 1,668,828
Profit on disposal of fixed assets - (81,096 )
Government grants (36,400 ) (218,412 )
Finance costs 221,585 357,310
5,488,388 4,495,866
Decrease/(increase) in stocks 830,570 (634,607 )
(Increase)/decrease in trade and other debtors (142,499 ) 2,080,138
(Decrease)/increase in trade and other creditors (2,867,802 ) 443,619
Cash generated from operations 3,308,657 6,385,016

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31/12/23 1/1/23
£    £   
Cash and cash equivalents 2,612,545 2,514,956
Year ended 31 December 2022
31/12/22 1/1/22
£    £   
Cash and cash equivalents 2,514,956 1,185,535


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/23 Cash flow At 31/12/23
£    £    £   
Net cash
Cash at bank and in hand 2,514,956 97,589 2,612,545
2,514,956 97,589 2,612,545
Debt
Finance leases (435,983 ) (139,748 ) (575,731 )
Debts falling due within 1 year (303,651 ) 53,651 (250,000 )
Debts falling due after 1 year (1,382,033 ) 1,382,033 -
(2,121,667 ) 1,295,936 (825,731 )
Total 393,289 1,393,525 1,786,814

EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023


1. STATUTORY INFORMATION

EDI Holdings Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


Monetary amounts in these financial statements are rounded to nearest £.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern
These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the group will continue in operational existence for the foreseeable future. The directors are confident in the group's ability to continue to trade for the foreseeable future and are prepared to provide the necessary financial support to enable it to do so. The financial statements have been prepared on a going concern basis on the assumption that the directors, the parent group and associated parties will continue to support the group to meet its working capital requirements as necessary.

Financial Reporting Standard 102 - reduced disclosure exemptions
The group 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 paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and
11.48(c);
the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirement of paragraph 33.7.

Basis of consolidation
The consolidated financial statements for the group consist of the financial statements of the parent company EDI Holdings Limited and all other subsidiaries (ie. entities that the Group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes. All financial statements are made up to 31 December 2023.

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

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

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Significant judgements and estimates
In the application of the group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 which 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 if the revision only effects that period or in the period of the revision and future periods if the revision affects both current and future periods.

Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes . The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue recognition
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably.The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Development costs are being amortised evenly over their estimated useful life of four years.

Computer software is being amortised evenly over its estimated useful life of four years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Land and buildings - in accordance with the property
Plant and machinery - at varying rates on cost
Fixtures and fittings - 25% on cost
Motor vehicles - 25% on cost
Computer equipment - 20% on cost

EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Financial instruments
Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price 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.

Basic financial liabilities, including trade and other creditors and bank loans, 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.

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

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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
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.

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.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, and hire purchase contracts are capitalised in the statement of financial position and are depreciated over the shorter of the lease term and the assets' useful lives. A corresponding liability is recognised for the lower of the fair value of the leased asset and the present value of the minimum lease payments are apportioned between the reduction of the lease liability and finance charges in the income statement so as to achieve a constant rate of interest on the remaining balance of the liability.

Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

4. EMPLOYEES AND DIRECTORS


2023 2022
£ £
Wages and salaries, Social security and Other pension costs 4,593,952 5,586,367

The average number of employees during the year was as follows :

2023 2022
£ £

Production, sales and operations 87 120
Administration 16 16
Directors 4 4
107 140

2023 2022
£    £   
Directors' remuneration 576,734 552,793

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 260,298 236,925

EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£ £
Hire of plant and machinery 19,978 33,424
Other operating leases 430,444 346,279
Depreciation - owned and leased assets 986,687 1,649,772
Profit on disposal of fixed assets - (81,096 )
Development costs amortisation 1,411 2,049
Computer software amortisation 29,267 17,007
Auditors' remuneration 22,500 17,500
Foreign exchange differences 38,364 (3,930 )

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest (16,119 ) 42,755
Bank loan interest 205,226 284,328
Hire purchase 32,478 30,227
221,585 357,310

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 838,181 50,883

Deferred tax 206,825 511,210
Tax on profit 1,045,006 562,093

EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


7. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 4,285,838 2,769,236
Profit multiplied by the standard rate of corporation tax in the UK of
23.520 % (2022 - 19 %)

1,008,029

526,155

Effects of:
Expenses not deductible for tax purposes 12,071 13,815
Deferred tax calculated at future tax rates 12,063 22,123
Non qualifying depreciation 9,499 -
Superdeduction (649 ) -
Capital items expenses 1,011 -
Other differences 2,982 -
Total tax charge 1,045,006 562,093

8. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


9. DIVIDENDS

2023 2022
£    £   
Dividends 100,000


EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


10. INTANGIBLE FIXED ASSETS

Group
Development Computer
costs software Totals
£    £    £   
COST
At 1 January 2023
and 31 December 2023 162,437 117,069 279,506
AMORTISATION
At 1 January 2023 160,768 32,132 192,900
Amortisation for year 1,411 29,267 30,678
At 31 December 2023 162,179 61,399 223,578
NET BOOK VALUE
At 31 December 2023 258 55,670 55,928
At 31 December 2022 1,669 84,937 86,606

Company
The Company had no Intangible Fixed Assets at the balance sheet date.

11. TANGIBLE FIXED ASSETS

Group
Assets
Short under Plant and
leasehold construction machinery
£    £    £   
COST
At 1 January 2023 3,073,101 - 5,262,036
Additions 62,224 1,276,880 46,267
Reclassification/transfer (2,013,777 ) 2,915,669 (789,419 )
At 31 December 2023 1,121,548 4,192,549 4,518,884
DEPRECIATION
At 1 January 2023 471,589 - 3,111,745
Charge for year 162,136 - 620,723
Reclassification/transfer (696 ) - -
At 31 December 2023 633,029 - 3,732,468
NET BOOK VALUE
At 31 December 2023 488,519 4,192,549 786,416
At 31 December 2022 2,601,512 - 2,150,291

EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


11. TANGIBLE FIXED ASSETS - continued

Group

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 January 2023 232,593 344,794 524,387 9,436,911
Additions - 149,990 7,303 1,542,664
Reclassification/transfer (102,562 ) - (9,910 ) 1
At 31 December 2023 130,031 494,784 521,780 10,979,576
DEPRECIATION
At 1 January 2023 92,686 39,202 262,420 3,977,642
Charge for year 12,958 109,271 81,600 986,688
Reclassification/transfer 696 - - -
At 31 December 2023 106,340 148,473 344,020 4,964,330
NET BOOK VALUE
At 31 December 2023 23,691 346,311 177,760 6,015,246
At 31 December 2022 139,907 305,592 261,967 5,459,269

The net book value of tangible fixed assets includes £802,014 (2022 - £802,962) in respect of assets held under hire purchase contracts.

Company
The Company had no Tangible Fixed Assets at the balance sheet date.

12. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 January 2023
and 31 December 2023 1,000,063
NET BOOK VALUE
At 31 December 2023 1,000,063
At 31 December 2022 1,000,063

EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


12. FIXED ASSET INVESTMENTS - continued

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiary

Edward Davies Commercials Limited
Registered office: United Kingdom
Nature of business: Bespoke vehicle design and modification
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 7,625,663 4,484,831
Profit for the year 3,240,832 2,207,143


13. STOCKS

Group
2023 2022
£    £   
Stocks 1,606,183 2,323,880
Work-in-progress 32,083 144,956
1,638,266 2,468,836

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade debtors 537,991 1,856,329 - -
Amounts owed by group undertakings - - 100,000 -
Other debtors 50 50 50 50
Corporation tax recoverable 21,728 21,728 - -
VAT 19,386 - - -
Prepayments 2,463,556 1,022,105 - -
3,042,711 2,900,212 100,050 50

EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans and overdrafts (see note 17) 250,000 303,651 - -
Hire purchase contracts (see note 18) 219,312 111,685 - -
Trade creditors 1,300,937 2,549,573 - -
Corporation tax 838,181 50,883 - -
Social security and other taxes 108,643 135,725 - -
VAT - 1,035,797 - -
Other creditors 263,711 37,172 100,000 -
Accruals and deferred income 693,454 814,007 - -
3,674,238 5,038,493 100,000 -

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group
2023 2022
£    £   
Bank loans (see note 17) - 1,382,033
Hire purchase contracts (see note 18) 356,419 324,298
Directors' loan accounts 698,674 1,397,347
1,055,093 3,103,678

Directors' loan accounts are unsecured. Interest is paid at a rate of 10%.

17. LOANS

An analysis of the maturity of loans is given below:

Group
2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 250,000 303,651
Amounts falling due between two and five years:
Bank loans - 2-5 years - 1,382,033

EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


18. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 219,312 111,685
Between one and five years 356,419 324,298
575,731 435,983

Group
Non-cancellable operating leases
2023 2022
£    £   
Within one year 879,754 632,500
Between one and five years 3,617,888 3,637,500
In more than five years 1,522,756 2,242,500
6,020,398 6,512,500

19. SECURED DEBTS

The following secured debts are included within creditors:

Group
2023 2022
£    £   
Bank loans 250,000 1,685,684
Hire purchase contracts 575,731 435,983
825,731 2,121,667

Bank loans and overdrafts are secured by way of a fixed and floating charge over the assets of the company.

Obligations under hire purchase contracts are secured on the assets to which they relate.

20. PROVISIONS FOR LIABILITIES

Group
2023 2022
£    £   
Deferred tax 1,009,652 802,827

EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


20. PROVISIONS FOR LIABILITIES - continued

Group
Deferred
tax
£   
Balance at 1 January 2023 802,827
Charge to Income Statement during year 206,825
Balance at 31 December 2023 1,009,652

Company
The Company had no provisions at the balance sheet date.

21. CALLED UP SHARE CAPITAL

Number: Class: Nominal 2023 2022
value: £ £
1,455 A Ordinary £0.10 146 146
507 B Ordinary £0.10 51 51
113 C Ordinary £0.10 11 11
204 D Ordinary £0.10 20 20
254 E Ordinary £0.10 25 25
253 253


22. RESERVES

Group
Retained Share Other
earnings premium reserves Totals
£    £    £    £   

At 1 January 2023 3,147,691 999,960 336,977 4,484,628
Profit for the year 3,240,832 3,240,832
Dividends (100,000 ) (100,000 )
At 31 December 2023 6,288,523 999,960 336,977 7,625,460

Company
Retained Share
earnings premium Totals
£    £    £   

At 1 January 2023 (100 ) 999,960 999,860
Profit for the year 100,000 100,000
Dividends (100,000 ) (100,000 )
At 31 December 2023 (100 ) 999,960 999,860


EDI HOLDINGS LIMITED (REGISTERED NUMBER: 10241871)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


23. PENSION COMMITMENTS

The Group's subsidiary company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. £30,857 (2022 - £38,278) contributions were outstanding at the balance sheet date.

24. ULTIMATE CONTROLLING PARTY

The parent company is EDI Holdings Limited, a company registered in England and Wales. The registered office is Wentwood House, Langstone Business Park, Newport, NP18 2HJ.

The ultimate controlling party is the director, Mr E Davies.