DAVID HARDIE ENGINEERING LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Company registration number SC162759 (Scotland)
DAVID HARDIE ENGINEERING LTD
COMPANY INFORMATION
Directors
Mr David Hardie
Mr Aaron Cordley
Mr Andrew Wilson
Mr Ian Clark
Secretary
Mrs Fiona Hardie
Company number
SC162759
Registered office
Braeside
Kirkgunzeon
Dumfries
DG2 8LA
Auditor
William Duncan + Co (Audit) Ltd
Ellersley House
30 Miller Road
Ayr
Ayrshire
KA7 2AY
Business address
No 1 Irongray Road
Dumfries
Dumfriesshire
DG2 0HS
Bankers
Bank of Scotland
91 High Street
Dumfries
DG1 2BN
Solicitors
Brazenall & Orr
104 Irish Street
Dumfries
DG1 2PB
DAVID HARDIE ENGINEERING LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 19
DAVID HARDIE ENGINEERING LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Review of the business
The 2023/24 results have been poorer than expected due to two large contracts being delayed resulting in a reduction in sales which in turn has affected the profit margin.
The company directors are closely involved in the day to day running of the business and have reacted to the reduced workload in order to maintain profitability. The company has a strong balance sheet and high levels of cash reserves so can cope with this one-off reduction in sales.
The company maintains good accounting systems to ensure that accurate financial information is available at all times. The directors have closely monitored the company's financial position throughout the period and have taken all necessary steps to streamline operations and control costs.
2023/24 had a strong order book, however due to delays, two contracts have been pushed into the financial year 2024/25. As a result, the upcoming year 2024/25 looks strong as the delayed contacts have now commenced and further quality contracts have been secured.
Principal risks and uncertainties
The main risks arising from the company's operations are trading risk and health and safety.
Trading Risk
The directors are aware that company overheads need to be covered and in order to do so a certain volume of sales are required. The directors are also aware that it is important to closely monitor all contracts for profitability and to ensure that all costs are recognized as sales within the valuations. Despite the challenges this year has raised the company continues to ensure that contracts remain profitable.
Health and Safety
The Managing Director oversees compliance with all aspects of health and safety. This also includes ensuring that the company has appropriate insurances in place to cover any losses.
Development and performance
The company has always taken a cautious approach to spending and has invested wisely over the years while maintaining the company's reserves. The company balance sheet remains strong at the year end. The directors are therefore confident that the company is well placed to work through this upcoming year.
Key performance indicators
Gross profit margin is the key performance indicator across the company. Profitability of each project is assessed at the planning stage and again at regular intervals throughout their completion. Whilst great effort is made to ensure that every contract generates a positive contribution the directors also recognise that unforeseen circumstances can arise, which will have a negative impact on margins of individual contracts. The directors always seek to minimise these risks and learn from every contract that is undertaken in order to further improve profitability going forward.
DAVID HARDIE ENGINEERING LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Mr David Hardie
Director
2 December 2024
DAVID HARDIE ENGINEERING LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activities in the year under review were those of civil engineering and construction.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr David Hardie
Mr Aaron Cordley
Mr Andrew Wilson
Mr Ian Clark
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £30,000. The directors do not recommend payment of a further dividend.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr David Hardie
Director
2 December 2024
DAVID HARDIE ENGINEERING LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
DAVID HARDIE ENGINEERING LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DAVID HARDIE ENGINEERING LTD
- 5 -
Opinion
We have audited the financial statements of David Hardie Engineering Ltd (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 31 March 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
DAVID HARDIE ENGINEERING LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DAVID HARDIE ENGINEERING LTD (CONTINUED)
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
Enquiry of management, those charged with governance and the entity’s solicitors around actual and potential litigation and claims.
Enquiry of entity staff in compliance functions to identify any instances of non-compliance with laws and regulations.
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
Because of 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. 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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
DAVID HARDIE ENGINEERING LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DAVID HARDIE ENGINEERING LTD (CONTINUED)
- 7 -
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Mr Neil Reid FCCA
Senior Statutory Auditor
For and on behalf of William Duncan + Co (Audit) Ltd
2 December 2024
Accountants
Statutory Auditor
Ellersley House
30 Miller Road
Ayr
Ayrshire
KA7 2AY
DAVID HARDIE ENGINEERING LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
10,067,804
11,972,485
Cost of sales
(8,983,898)
(10,629,645)
Gross profit
1,083,906
1,342,840
Administrative expenses
(1,044,755)
(1,076,426)
Operating profit
4
39,151
266,414
Interest receivable and similar income
7
511
1,970
Profit before taxation
39,662
268,384
Tax on profit
8
(9,327)
(52,193)
Profit for the financial year
30,335
216,191
The profit and loss account has been prepared on the basis that all operations are continuing operations.
DAVID HARDIE ENGINEERING LTD
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Current assets
Debtors
10
1,625,054
2,146,454
Cash at bank and in hand
637,520
1,090,351
2,262,574
3,236,805
Creditors: amounts falling due within one year
11
(1,263,738)
(2,238,304)
Net current assets
998,836
998,501
Capital and reserves
Called up share capital
13
60,000
60,000
Profit and loss reserves
938,836
938,501
Total equity
998,836
998,501
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 2 December 2024 and are signed on its behalf by:
Mr David Hardie
Director
Company registration number SC162759 (Scotland)
DAVID HARDIE ENGINEERING LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
50,000
1,012,310
1,062,310
Year ended 31 March 2023:
Profit and total comprehensive income
-
216,191
216,191
Issue of share capital
13
60,000
-
60,000
Dividends
9
-
(290,000)
(290,000)
Reduction of shares
13
(50,000)
(50,000)
Balance at 31 March 2023
60,000
938,501
998,501
Year ended 31 March 2024:
Profit and total comprehensive income
-
30,335
30,335
Dividends
9
-
(30,000)
(30,000)
Balance at 31 March 2024
60,000
938,836
998,836
DAVID HARDIE ENGINEERING LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
16
(371,150)
(1,870,455)
Income taxes (paid)/refunded
(52,192)
30,015
Net cash outflow from operating activities
(423,342)
(1,840,440)
Investing activities
Interest received
511
1,970
Net cash generated from investing activities
511
1,970
Financing activities
Proceeds from issue of shares
10,000
Dividends paid
(30,000)
(290,000)
Net cash used in financing activities
(30,000)
(280,000)
Net decrease in cash and cash equivalents
(452,831)
(2,118,470)
Cash and cash equivalents at beginning of year
1,090,351
3,208,821
Cash and cash equivalents at end of year
637,520
1,090,351
DAVID HARDIE ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information
David Hardie Engineering Ltd is a private company limited by shares incorporated in Scotland. The registered office is Braeside, Kirkgunzeon, Dumfries, DG2 8LA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’ – Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Hardie Holdings Limited. These consolidated financial statements are available from its registered office, Braeside, Kirkgunzeon, Dumfries, DG2 8LA.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents amounts receivable for services provided in the period net of VAT and trade discounts.
In addition, profit is recognised on long-term contracts, if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs to date bear to total expected costs for that contract.
DAVID HARDIE ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
1.4
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.5
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.6
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
DAVID HARDIE ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.7
Taxation
The tax expense represents the sum of the tax currently payable.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
1.8
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Civil engineering and construction
10,067,804
11,972,485
DAVID HARDIE ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
3
Turnover and other revenue
(Continued)
- 15 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
10,067,804
11,972,485
2024
2023
£
£
Other revenue
Interest income
511
1,970
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
8,750
8,250
Operating lease charges
24,000
24,000
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
69
70
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,506,080
2,514,794
Social security costs
279,534
275,779
Pension costs
56,267
53,793
2,841,881
2,844,366
DAVID HARDIE ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
226,906
202,469
Company pension contributions to defined contribution schemes
3,882
3,125
230,788
205,594
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
97,651
100,852
Company pension contributions to defined contribution schemes
1,169
1,220
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
511
92
Other interest income
1,878
Total income
511
1,970
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
9,327
52,193
DAVID HARDIE ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
8
Taxation
(Continued)
- 17 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
39,662
268,384
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2023: 19.00%)
7,536
50,993
Tax effect of expenses that are not deductible in determining taxable profit
495
1,200
Effect of change in corporation tax rate
1,296
Taxation charge for the year
9,327
52,193
9
Dividends
2024
2023
£
£
Final paid
30,000
220,000
Interim paid
70,000
30,000
290,000
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
721,195
842,570
Gross amounts owed by contract customers
778,476
1,281,216
Other debtors
49,410
6,000
Prepayments and accrued income
75,973
16,668
1,625,054
2,146,454
DAVID HARDIE ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
11
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
678,636
1,038,568
Amounts owed to group undertakings
430,145
734,984
Corporation tax
9,328
52,193
Other taxation and social security
82,359
247,842
Other creditors
4
91,255
Accruals and deferred income
63,266
73,462
1,263,738
2,238,304
12
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
56,267
53,793
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
13
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
'A' Ordinary shares of £1 each
54,000
54,000
54,000
54,000
'B' Ordinary shares of £1 each
3,000
3,000
3,000
3,000
'C' Ordinary shares of £1 each
3,000
3,000
3,000
3,000
60,000
60,000
60,000
60,000
14
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
2024
2023
£
£
Plant and management charges
616,169
780,972
DAVID HARDIE ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
14
Related party transactions
(Continued)
- 19 -
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due to related parties
£
£
Plant and management charges
430,145
734,984
15
Ultimate controlling party
The parent company of David Hardie Engineering Ltd is Hardie Holdings Ltd and its registered office is Braeside, Kirkgunzeon, Dumfries, DG2 8LA.
16
Cash absorbed by operations
2024
2023
£
£
Profit for the year after tax
30,335
216,191
Adjustments for:
Taxation charged
9,327
52,193
Investment income
(511)
(1,970)
Movements in working capital:
Decrease/(increase) in debtors
521,400
(918,425)
Decrease in creditors
(931,701)
(1,218,444)
Cash absorbed by operations
(371,150)
(1,870,455)
17
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
1,090,351
(452,831)
637,520
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