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REGISTERED NUMBER: 05465512 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 29 FEBRUARY 2024

FOR

NEWQUIP LIMITED

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

CONTENTS OF THE FINANCIAL STATEMENTS
for the year ended 29 February 2024










Page

Company Information 1

Strategic Report 2

Report of the Director 3

Report of the Independent Auditors 4

Income Statement 7

Other Comprehensive Income 8

Statement of Financial Position 9

Statement of Changes in Equity 10

Statement of Cash Flows 11

Notes to the Statement of Cash Flows 12

Notes to the Financial Statements 13


NEWQUIP LIMITED

COMPANY INFORMATION
for the year ended 29 February 2024







DIRECTOR: A S Dye





REGISTERED OFFICE: NQ House
Conygarth Way
Leeming Bar Business Park
Northallerton
North Yorkshire
DL7 9EE





REGISTERED NUMBER: 05465512 (England and Wales)

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

STRATEGIC REPORT
for the year ended 29 February 2024


The director presents his strategic report for the year ended 29 February 2024.

REVIEW OF BUSINESS
The director is accepting of the results for the year given the extremely challenging situations under which it operated.

While turnover has increased by 32% to £26.7m, compared to the previous year, gross margin has fallen to 6.3% (2023 - 11.3%) and the company has a loss before tax of £768k (2023 - £278k profit). This is due to the impact of significant supply issues and delays, leading to increased costs on multiple contracts which has significantly impacted profits this year.

The above results continue to be attributable to the broad product range, brand and support of a very strong supplier.

Net current assets have decreased to £2.3m (2023 - £3.4m) and include cash of £3.5m. Net assets were £3.0m (2023 - £4.3m) at the year end.

PRINCIPAL RISKS AND UNCERTAINTIES
Price risk
Price risk is the risk that changes in raw materials prices have the potential to impact on the profitability of the company. Management monitors price risk via consistent review of general economic indicators and key supplier prices to inform budgeting and forecasting procedures, to identify potential effect on margins ahead of time.

Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge its obligation. Company policies are aimed at minimising such losses and require customers to satisfy credit worthiness procedures prior to acceptance of contracts.

Cash flow and liquidity risk
Cash flow and liquidity risk is the risk that a company's available cash will not be be sufficient to meet its financial obligations. The company actively manages its cash flow position including collection of debts and timely payment of creditors. This, coupled with the strong cash position of the company and continued financial support of the director and entities under common control, is deemed sufficient to minimise the company's exposure to cash flow and liquidity risk.

Foreign exchange risk
Foreign exchange risk refers to the potential for loss from exposure to foreign exchange rate fluctuations. Company policies are aimed at minimising this risk. The company does not consider that it is materially exposed to foreign exchange risk.

Avian influenza risk
Avian influenza and its effects present uncertainty and its continuing impact needs to be carefully monitored to identify threats. Protocols will remain in place and constant communication undertaken with all stakeholders whilst marketplace indicators will be monitored, and any identified actions required executed promptly.

ON BEHALF OF THE BOARD:





A S Dye - Director


25 November 2024

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

REPORT OF THE DIRECTOR
for the year ended 29 February 2024


The director presents his report with the financial statements of the company for the year ended 29 February 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of retailing and installing animal feed and housing systems.

DIVIDENDS
Information relating to dividends can be found in the Notes to the Financial Statements.

FUTURE DEVELOPMENTS
The Company intends to continue operating in the areas of project management, construction of livestock buildings, climate control, lighting, feed storage and residue treatment in the poultry & pig marketplace, while additionally offering product support, servicing and spares for existing systems.

We continue to invest in improving our coverage within the sector in order to gain further market share, alongside building relationships with our symbiotic partners.

DIRECTOR
A S Dye held office during the whole of the period from 1 March 2023 to the date of this report.

FINANCIAL INSTRUMENTS
In the period covered by these financial statements, the company financed its activities with cash generated from operating activities and loans from related parties and did not have any external bank loans or overdrafts. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the company's operating activities.

GOING CONCERN
Information relating to going concern can be found in the Notes to the Financial Statements.

DIRECTOR'S RESPONSIBILITIES STATEMENT
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

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

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the director is 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 he 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 company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





A S Dye - Director


25 November 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
NEWQUIP LIMITED


Opinion
We have audited the financial statements of Newquip Limited (the 'company') for the year ended 29 February 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 29 February 2024 and of its loss 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 Director 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 Director 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 Report of the Director.

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 director's remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
NEWQUIP LIMITED


Responsibilities of director
As explained more fully in the Director's Responsibilities Statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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:

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, taxation legislation, data protection, anti-bribery, employment 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 HMRC, relevant regulators including the Health and Safety Executive, 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
NEWQUIP 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.




Steven Aitken (Senior Statutory Auditor)
for and on behalf of Smailes Goldie Watson Limited
Statutory Auditors
Chartered Accountants
12 Alma Square
Scarborough
North Yorkshire
YO11 1JU

25 November 2024

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

INCOME STATEMENT
for the year ended 29 February 2024

2024 2023
Notes £    £   

TURNOVER 4 26,691,220 20,283,156

Cost of sales 25,010,015 17,986,923
GROSS PROFIT 1,681,205 2,296,233

Administrative expenses 2,325,032 1,984,708
OPERATING (LOSS)/PROFIT 6 (643,827 ) 311,525

Interest receivable and similar income 7 66,835 50,860
(576,992 ) 362,385

Interest payable and similar expenses 8 191,009 84,359
(LOSS)/PROFIT BEFORE TAXATION (768,001 ) 278,026

Tax on (loss)/profit 9 (76,685 ) 53,974
(LOSS)/PROFIT FOR THE FINANCIAL
YEAR

(691,316

)

224,052

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

OTHER COMPREHENSIVE INCOME
for the year ended 29 February 2024

2024 2023
Notes £    £   

(LOSS)/PROFIT FOR THE YEAR (691,316 ) 224,052


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

(691,316

)

224,052

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

STATEMENT OF FINANCIAL POSITION
29 February 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 11 716,466 931,242

CURRENT ASSETS
Stocks 12 2,685,852 3,691,775
Debtors 13 9,237,711 7,954,245
Cash at bank and in hand 14 3,499,591 936,933
15,423,154 12,582,953
CREDITORS
Amounts falling due within one year 15 13,150,142 9,156,716
NET CURRENT ASSETS 2,273,012 3,426,237
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,989,478

4,357,479

PROVISIONS FOR LIABILITIES 18 - 76,685
NET ASSETS 2,989,478 4,280,794

CAPITAL AND RESERVES
Called up share capital 19 115,991 115,991
Capital redemption reserve 20 41,359 41,359
Retained earnings 20 2,832,128 4,123,444
2,989,478 4,280,794

The financial statements were approved by the director and authorised for issue on 25 November 2024 and were signed by:





A S Dye - Director


NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

STATEMENT OF CHANGES IN EQUITY
for the year ended 29 February 2024

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 March 2022 115,991 4,499,392 41,359 4,656,742

Changes in equity
Dividends - (600,000 ) - (600,000 )
Total comprehensive income - 224,052 - 224,052
Balance at 28 February 2023 115,991 4,123,444 41,359 4,280,794

Changes in equity
Dividends - (600,000 ) - (600,000 )
Total comprehensive income - (691,316 ) - (691,316 )
Balance at 29 February 2024 115,991 2,832,128 41,359 2,989,478

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

STATEMENT OF CASH FLOWS
for the year ended 29 February 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,380,760 (567,799 )
Interest paid (13,004 ) (75,352 )
Tax paid (3,142 ) (17,913 )
Net cash from operating activities 1,364,614 (661,064 )

Cash flows from investing activities
Purchase of tangible fixed assets (503,211 ) (431,950 )
Sale of tangible fixed assets 216,910 284,644
Interest received 77,808 37,330
Net cash from investing activities (208,493 ) (109,976 )

Cash flows from financing activities
Loan advances in year 4,814,184 4,213,540
Loan repayments in year (3,407,647 ) (4,050,000 )
Share capital paid up in the period - 100
Equity dividends paid - (600,000 )
Net cash from financing activities 1,406,537 (436,360 )

Increase/(decrease) in cash and cash equivalents 2,562,658 (1,207,400 )
Cash and cash equivalents at beginning of year 2 936,933 2,144,333

Cash and cash equivalents at end of year 2 3,499,591 936,933

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

NOTES TO THE STATEMENT OF CASH FLOWS
for the year ended 29 February 2024


1. RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024 2023
£    £   
(Loss)/profit before taxation (768,001 ) 278,026
Depreciation charges 270,702 260,804
Profit on disposal of fixed assets (55,724 ) (140,051 )
Finance costs 191,009 84,359
Finance income (66,835 ) (50,860 )
(428,849 ) 432,278
Decrease/(increase) in stocks 1,005,923 (39,811 )
Increase in trade and other debtors (1,272,939 ) (990,482 )
Increase in trade and other creditors 2,076,625 30,216
Cash generated from operations 1,380,760 (567,799 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 29 February 2024
29.2.24 1.3.23
£    £   
Cash and cash equivalents 3,499,591 936,933
Year ended 28 February 2023
28.2.23 1.3.22
£    £   
Cash and cash equivalents 936,933 2,144,333


3. ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

Other
non-cash
At 1.3.23 Cash flow changes At 29.2.24
£    £    £    £   
Net cash
Cash at bank
and in hand 936,933 2,562,658 3,499,591
936,933 2,562,658 3,499,591
Debt
Debts falling due
within 1 year (163,540 ) (1,406,537 ) (600,000 ) (2,170,077 )
(163,540 ) (1,406,537 ) (600,000 ) (2,170,077 )
Total 773,393 1,156,121 (600,000 ) 1,329,514

4. MAJOR NON-CASH TRANSACTIONS

Non-cash transactions regarding debts due within one year relate to the reanalysis of balances due from other creditors to other loans

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 29 February 2024


1. STATUTORY INFORMATION

Newquip 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 Company Information page.

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

2. STATEMENT OF COMPLIANCE

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.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 29 February 2024


3. ACCOUNTING POLICIES - continued

Significant judgements and estimates
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 judgements (apart from those involving estimates) that management has made in the process of applying the entity's accounting policies and that could have the most significant effect on the amounts recognised in the financial statements are as follows:

Assessing indicators of impairment - In assessing whether there have been indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no indicators of impairment identified during the current financial year.

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:

Stock provision - The company has made an assumption of writing down the value of stock on items on which they expect the cost to exceed the net realisable value before it is fully sold/utilised.

The company uses the following estimation technique to account for slow moving stock:

Last purchase order date - Percentage of cost provided

6 - 12 months from year end - 25%
12 - 18 months from year end - 50%
18 - 24 months from year end - 75%
>24 months from year end - 100%

At the reporting date, the carrying amount of the provision is £1,260,223 (2023 - £2,024,547)

Impairment of debtors - The company makes an estimate of the recoverable value of the trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

Determining the stage of completion and profitability of contracts in progress - The company determines the stage of completion of contracts in progress and the revenue to be recognised in the financial statements based on historic financial information and also forecast information concerning future performance to completion of the contracts. This requires estimates and assumptions to be used by management.

Estimation of future costs on loss-making contracts - Where management assess contracts in progress at the end of a financial period will go on to be ultimately unprofitable, management assess future expected costs based on up to date assessment of contract completion and costs required to complete. These costs are then accrued in the year in which they are first foreseen.

Useful economic lives of tangible assets - The annual depreciation charge is sensitive to changes in the estimated useful lives of the asset. The useful economic lives are re-assessed annually. They are amended when necessary to reflect current estimates, future investments and economic utilisation.

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 29 February 2024


3. ACCOUNTING POLICIES - continued

Turnover
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company's activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

Contract revenue recognition

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all the following conditions are satisfied:

- The amount of the revenue can be measured reliably;
- It is probable that the company will receive the consideration due under the contract;
- The stage of completion of the contract at the end of the reporting period can be measured reliably, and;
- The cost incurred and the costs to complete the contract can be measured reliably.

Long term contracts are assessed on a contract by contract basis and reflected in the profit and loss account by recognising turnover and related costs as contract activity progresses. Profit on long term contracts is taken as the work is carried out if the outcome of each long term contract can be assessed with reasonable certainty before its conclusion. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end. Turnover is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Revenues derived from variation on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the year in which they are first foreseen.

Amounts recoverable on contracts, which are included within debtors, are stated at the net sales value of the work done less amounts billed as progress payments on account. Excess progress payments are included within creditors as payments received on account.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 20% on reducing balance and 15% on reducing balance
Fixtures and fittings - 20% on reducing balance
Motor vehicles - 33% on reducing balance
Office equipment - 20% on reducing balance

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

The company adds to the carrying value of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying value of the replaced part is derecognised. Repairs are charged to the profit and loss account during the period in which they are incurred.

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the previous year.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within administrative expenses in the statement of comprehensive income.

Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 29 February 2024


3. ACCOUNTING POLICIES - continued

Stocks
Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the average purchase price of the actual quantities in stock.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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 is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Foreign currency transactions and balances
Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated in to the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment. If the contribution due for service exceeds contribution payments, the excess is recognised as an accrual.

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 29 February 2024


3. ACCOUNTING POLICIES - continued

Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits and other short term, highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established where there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditors for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Provisions
A provision is recognised when:
- The company has a present obligation (legal of constructive) as a result of a past event;
- It is probable that a transfer of economic benefit will be required to settle the obligation, and;
- A reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the profit and loss account in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account the relevant risks and uncertainties.

Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments.

Going concern
The financial statements have been prepared on a going concern basis.

The company has net current assets of £2,273,012 at the year end including cash of £3,499,591.

The company's forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account the continued support of key management personnel of the company, and of entities under their control.

Based on the factors set out above the director believes that there is no material uncertainty in relation to going concern and that the company has adequate financial resources to continue in operational existence for at least twelve months from the date of signing the financial statements and therefore the director believes that it remains appropriate to prepare the financial statements on a going concern basis.

4. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company, with all turnover attributable to one geographical market, being the United Kingdom.

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 29 February 2024


5. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 1,679,780 1,570,232
Social security costs 190,496 190,817
Other pension costs 98,980 47,855
1,969,256 1,808,904

The average number of employees during the year was as follows:
2024 2023

Administration and management 13 12
Sales and installation 23 25
36 37

2024 2023
£    £   
Director's remuneration 154,570 149,500

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

6. OPERATING (LOSS)/PROFIT

The operating loss (2023 - operating profit) is stated after charging/(crediting):

2024 2023
£    £   
Hire of plant and machinery 12,470 12,031
Other operating leases 285,210 282,500
Depreciation - owned assets 270,701 260,804
Profit on disposal of fixed assets (55,724 ) (140,051 )
Auditors' remuneration 20,002 14,000
Other non- audit services 2,703 540
Finance charges 9,928 8,318
(Profit)/loss on foreign currency (14,508 ) (141,420 )
Bad debt provisions made/(released) 91,155 185,354

7. INTEREST RECEIVABLE AND SIMILAR INCOME
2024 2023
£    £   
Deposit account interest 27,982 9,078
Other finance income 38,853 41,782
66,835 50,860

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Other loan interest 187,012 84,359
Interest payable on late paid VAT 3,997 -
191,009 84,359

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 29 February 2024


9. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the loss for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax - 3,143
Tax - adjustment re prior years - (2,753 )
Total current tax - 390

Deferred tax (76,685 ) 53,584
Tax on (loss)/profit (76,685 ) 53,974

Reconciliation of total tax (credit)/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:

2024 2023
£    £   
(Loss)/profit before tax (768,001 ) 278,026
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
24.492% (2023 - 19%)

(188,099

)

52,825

Effects of:
Expenses not deductible for tax purposes - 3,690
Adjustments to tax charge in respect of previous periods - (2,753 )
Depreciation on non-qualifying assets 896 1,431
Effect of different UK tax rates on deferred tax (1,559 ) 12,860
Permanent timing differences 112,077 (14,079 )
Total tax (credit)/charge (76,685 ) 53,974

10. DIVIDENDS

Dividend distribution to the company's shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

The following interim dividends per share have been declared in the period:

C Ordinary shares - £3,000 (2023 - £6,000)
D Ordinary shares - £3,000 (2023 - £nil)

The director recommends that no final dividend will be paid.

The total distribution of dividends for the year ended 29 February 2024 will be £600,000 (2023 - £600,000).

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 29 February 2024


11. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor Office
machinery fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1 March 2023 1,032,875 17,338 761,381 40,491 1,852,085
Additions - - 216,507 22,104 238,611
Disposals (211,350 ) - (230,715 ) - (442,065 )
At 29 February 2024 821,525 17,338 747,173 62,595 1,648,631
DEPRECIATION
At 1 March 2023 502,678 - 399,291 18,874 920,843
Charge for year 84,550 1,539 177,128 7,484 270,701
Eliminated on disposal (104,040 ) - (155,339 ) - (259,379 )
At 29 February 2024 483,188 1,539 421,080 26,358 932,165
NET BOOK VALUE
At 29 February 2024 338,337 15,799 326,093 36,237 716,466
At 28 February 2023 530,197 17,338 362,090 21,617 931,242

12. STOCKS
2024 2023
£    £   
Stocks 1,448,997 2,168,800
Work-in-progress 1,236,855 1,522,975
2,685,852 3,691,775

13. DEBTORS
2024 2023
£    £   
Amounts falling due within one year:
Trade debtors 5,989,979 6,039,930
Other debtors 3,774 10,000
VAT 100,911 -
Amounts recoverable on contracts 880,860 1,428,910
Prepayments 197,746 84,208
7,173,270 7,563,048

Amounts falling due after more than one year:
Trade debtors 2,064,441 391,197

Aggregate amounts 9,237,711 7,954,245

14. CASH AT BANK AND IN HAND
2024 2023
£    £   
Cash at bank 3,404,608 695,201
Short term deposits 94,717 240,564
Cash in hand 266 1,168
3,499,591 936,933

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 29 February 2024


15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Other loans (see note 16) 2,170,077 163,540
Trade creditors 2,606,070 2,949,358
Tax - 3,143
Social security and other taxes 2,627 2,627
VAT - 139,428
Other creditors 601,094 600,599
Directors' loan accounts 13,195 698
Deferred contract income 3,755,383 4,964,604
Accrued expenses 4,001,696 332,719
13,150,142 9,156,716

16. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Other loans 2,170,077 163,540

Other loans are repayable on the lender's demand. Interest is charged on the loan at a mark up on Bank of England base rate.

17. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 292,500 240,000
Between one and five years 1,286,571 84,375
1,579,071 324,375

18. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax - 76,685

Deferred
tax
£   
Balance at 1 March 2023 76,685
Credit to Income Statement during year (76,685 )
Balance at 29 February 2024 -

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 29 February 2024


19. CALLED UP SHARE CAPITAL

Alloted, called up shares

2024 2023
No. £    No. £   
A Ordinary of £1 each 40,359 40,359 40,359 40,359
B Ordinary of £1 each 75,432 75,432 75,432 75,432
C Ordinary of £1 each 100 100 100 100
D Ordinary of £1 each 100 100 100 100
115,991 115,991 115,991 115,991


Rights, preferences and restrictions
The A Ordinary and B Ordinary shares carry full voting, equity and dividend rights, are non-redeemable and rank pari passu in all respects.

The C Ordinary and D Ordinary shares are non-voting and non-equity. They carry dividend rights and are non-redeemable. They rank pari passu in all respects.

20. RESERVES
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 March 2023 4,123,444 41,359 4,164,803
Deficit for the year (691,316 ) (691,316 )
Dividends (600,000 ) (600,000 )
At 29 February 2024 2,832,128 41,359 2,873,487

Profit and loss account
This reserve records retained earnings and accumulated losses.

Capital redemption reserve
This reserve records the nominal value of the share capital redeemed in 2014.

21. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £98,980 (2023 - £47,855). Amounts payable to the scheme at the reporting date were £495 (2023 - £nil).

22. CAPITAL COMMITMENTS
2024 2023
£    £   
Contracted but not provided for in the
financial statements - 212,545

NEWQUIP LIMITED (REGISTERED NUMBER: 05465512)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 29 February 2024


23. DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 29 February 2024 and 28 February 2023:

2024 2023
£    £   
A S Dye
Balance outstanding at start of year - -
Amounts advanced 207,392 11,125
Amounts repaid (207,392 ) (11,125 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - -

Interest is charged in periods where the loan account becomes overdrawn in line with H M Revenue & Customs approved rates.

24. RELATED PARTY DISCLOSURES

Key management personnel of the entity
2024 2023
£    £   
Salaries and other short term employee benefits 527,241 543,706
Interest receivable on overdrawn director's loan account 2,504 -
Amount due to related parties 13,893 1,398

Other related parties
2024 2023
£    £   
Sales - 7,736
Purchases 972,741 1,087,592
Rents payable 282,500 282,500
Dividends payable 600,000 600,000
Interest payable 187,012 84,359
Total amounts due to related parties 3,131,459 944,616

Other related parties include entities that share common control with the company.

Total amounts due to these related parties as above include trade and other creditors. It also includes short term loans payable by the company totalling £2,170,077 (2023 - £163,540) at the date of these financial statements.

25. ULTIMATE CONTROLLING PARTY

The controlling party is A S Dye.