REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 29 FEBRUARY 2024 |
FOR |
NEWQUIP LIMITED |
REGISTERED NUMBER: |
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: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
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: |
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 |
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: |
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. |
for and on behalf of |
Statutory Auditors |
Chartered Accountants |
12 Alma Square |
Scarborough |
North Yorkshire |
YO11 1JU |
NEWQUIP LIMITED (REGISTERED NUMBER: 05465512) |
INCOME STATEMENT |
for the year ended 29 February 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING (LOSS)/PROFIT | 6 | ( |
) |
Interest receivable and similar income | 7 |
(576,992 | ) | 362,385 |
Interest payable and similar expenses | 8 |
(LOSS)/PROFIT BEFORE TAXATION | ( |
) |
Tax on (loss)/profit | 9 | ( |
) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
NEWQUIP LIMITED (REGISTERED NUMBER: 05465512) |
OTHER COMPREHENSIVE INCOME |
for the year ended 29 February 2024 |
2024 | 2023 |
Notes | £ | £ |
(LOSS)/PROFIT FOR THE YEAR | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
NEWQUIP LIMITED (REGISTERED NUMBER: 05465512) |
STATEMENT OF FINANCIAL POSITION |
29 February 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand | 14 |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 18 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Capital redemption reserve | 20 |
Retained earnings | 20 |
The financial statements were approved by the director and authorised for issue on |
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 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 28 February 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 29 February 2024 |
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 | ( |
) |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan advances in year |
Loan repayments in year | ( |
) | ( |
) |
Share capital paid up in the period |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year | 2 | 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 | ( |
) |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Finance costs | 191,009 | 84,359 |
Finance income | (66,835 | ) | (50,860 | ) |
(428,849 | ) | 432,278 |
Decrease/(increase) in stocks | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations | ( |
) |
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 | 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 |
The presentation currency of the financial statements in the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Office equipment | - |
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 |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Administration and management | 13 | 12 |
Sales and installation | 23 | 25 |
2024 | 2023 |
£ | £ |
Director's remuneration |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
6. | OPERATING (LOSS)/PROFIT |
The operating loss (2023 - operating profit) is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
Other non- audit services |
Finance charges | 9,928 | 8,318 |
(Profit)/loss on foreign currency | ( |
) | ( |
) |
Bad debt provisions made/(released) |
7. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2024 | 2023 |
£ | £ |
Deposit account interest |
Other finance income |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Other loan interest |
Interest payable on late paid VAT |
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 |
Tax - adjustment re prior years | - | (2,753 | ) |
Total current tax |
Deferred tax | ( |
) |
Tax on (loss)/profit | ( |
) |
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 | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Adjustments to tax charge in respect of previous periods | ( |
) |
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 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 29 February 2024 |
DEPRECIATION |
At 1 March 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 29 February 2024 |
NET BOOK VALUE |
At 29 February 2024 |
At 28 February 2023 |
12. | STOCKS |
2024 | 2023 |
£ | £ |
Stocks |
Work-in-progress |
13. | DEBTORS |
2024 | 2023 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Other debtors |
VAT |
Amounts recoverable on contracts |
Prepayments |
Amounts falling due after more than one year: |
Trade debtors |
Aggregate amounts |
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 |
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) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | - | 139,428 |
Other creditors |
Directors' loan accounts | 13,195 | 698 |
Deferred contract income |
Accrued expenses |
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 |
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 |
Between one and five years |
18. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax | - | 76,685 |
Deferred |
tax |
£ |
Balance at 1 March 2023 |
Credit to Income Statement during year | ( |
) |
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 | 4,164,803 |
Deficit for the year | ( |
) | ( |
) |
Dividends | ( |
) | ( |
) |
At 29 February 2024 | 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 |
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 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
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 |
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 |
2024 | 2023 |
£ | £ |
Sales |
Purchases |
Rents payable | 282,500 | 282,500 |
Dividends payable | 600,000 | 600,000 |
Interest payable | 187,012 | 84,359 |
Total amounts due to related parties |
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. |