REGISTERED NUMBER: 07006110 (England and Wales) |
Group Strategic Report, |
Report of the Director and |
Consolidated Financial Statements |
for the Year Ended 31 March 2024 |
for |
Shakespeare Engineering International |
(Asia) Limited |
REGISTERED NUMBER: 07006110 (England and Wales) |
Group Strategic Report, |
Report of the Director and |
Consolidated Financial Statements |
for the Year Ended 31 March 2024 |
for |
Shakespeare Engineering International |
(Asia) Limited |
Shakespeare Engineering International |
(Asia) Limited (Registered number: 07006110) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 March 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 19 |
Shakespeare Engineering International |
(Asia) Limited |
Company Information |
for the Year Ended 31 March 2024 |
DIRECTOR: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Warden House |
37 Manor Road |
Colchester |
Essex |
CO3 3LX |
Shakespeare Engineering International |
(Asia) Limited (Registered number: 07006110) |
Group Strategic Report |
for the Year Ended 31 March 2024 |
The director presents his strategic report of the company and the group for the year ended 31 March 2024. |
REVIEW OF BUSINESS |
The principal activity of the group is that of the purchase and sale of the supply of components to its customers, performing specialist CNC machining and assembly of electro mechanical components for industry. |
In the accounting period under review, the group reported a pre-tax profits of £158,481 (2023: pre-tax profits of £682,476). |
Overall the group maintained the activity levels of the previous year. Customer demand was strong in specific areas and the group continued to invest specifically to be able to meet the demand from these higher growth areas. This additional investment in staff and equipment has led to improved gross profit margins but higher overheads and finance charges. The director is satisfied with this result. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group operates within the global international market and is therefore subject to the impact of overseas economies and foreign exchange risks. The departure of the UK from the EU and the Russian invasion of Ukraine continued to affect business confidence. Added to these is higher interest rates and the political uncertainties in the lead up to the General Election. The director continues to monitor these risks and uncertainties and is confident that the group is able to manage these risks. |
The group continues to explore new means to develop and retain the high levels of skill within the business. This is ongoing, and forms one of the high-risk issues which exists at all its operational sites. |
STRATEGIES |
Our continued collaboration with the scientific community both in the UK and USA (specifically in the area of 'superconducting') continues to generate some positive order intake. We are currently the only UK site to have this expertise, which has been borne out of years of interaction between our engineers and scientists. This will continue to form part of our strategic growth plan alongside development of our international supplier and customer network. |
To minimise disruption caused by geopolitical events the group continues to adapt its supply chain to source more materials from home and near home markets. |
OBJECTIVES AND FUTURE OUTLOOK |
Our objective is to continue to develop a 'world class' status with 'world class' customers and suppliers. With our appetite to invest in our staff and equipment, we believe this will continue to attract strong opportunities across the group. |
KEY PERFORMANCE INDICATORS |
Key performance indicators highlight maintenance of group turnover at £10.7m with an increase in the gross profits of £473,000 to £6.64m and the gross margin to 62% (2023 58%) in the current period, ended 31 March 2024. Debtor days for the period ended 31 March 2024 was 63 days, which is lower than the debtor days previously disclosed by the group in respect of the accounting period ended 31 March 2023, being 75 days. |
EBITDA of £1,236,352 fell by 10.6%. This reflects the continued investment by the group in staff and equipment to meet customer demand during the period. |
A budget is set each year and monthly performance, including the KPIs above, are monitored against historical trends and budgetary targets. For the period, the Group performed in line with expectations. The Group's employee remuneration strategy is designed to align employee remuneration with successful delivery against these and other non-financial KPIs. |
Shakespeare Engineering International |
(Asia) Limited (Registered number: 07006110) |
Group Strategic Report |
for the Year Ended 31 March 2024 |
FUTURE DEVELOPMENTS AND RESEARCH & DEVELOPMENT |
Despite the challenging economic environment the group will continue its strategy to invest in the infrastructure, technology and human resources required to operate and grow the business to meet the expected increase in customer demand. The purchase of new machinery and technology allows the group to better respond to customer demand and to improve manufacturing techniques via related R&D projects so generating an uplift in profits and cash generation. |
ON BEHALF OF THE BOARD: |
Shakespeare Engineering International |
(Asia) Limited (Registered number: 07006110) |
Report of the Director |
for the Year Ended 31 March 2024 |
The director presents his report with the financial statements of the company and the group for the year ended 31 March 2024. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 March 2024. |
DIRECTOR |
OVERSEAS BRANCH |
The group continues to maintain a branch located in mainland China, the purpose of which is to source parts for inclusion in UK assemblies. The cost of these purchased materials is included in Cost of Sales. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and 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 group's auditors are aware of that information. |
In accordance with Section 414C (ii) Companies Act 2006, disclosures relating to Future developments and Research and development activities are set out in the Strategic report. |
Shakespeare Engineering International |
(Asia) Limited (Registered number: 07006110) |
Report of the Director |
for the Year Ended 31 March 2024 |
AUDITORS |
The auditors, Tile & Co Essex Ltd, Chartered Accountants, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Shakespeare Engineering International |
(Asia) Limited |
Opinion |
We have audited the financial statements of Shakespeare Engineering International (Asia) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion, except for the effects of the matters described in the Basis for opinion section, the financial statements: |
- give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2024 and of the group's profit for the year then ended; |
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; |
and |
- have been prepared in accordance with the requirements of the Companies Act 2006. |
- based on the work undertaken in the course of the audit, the strategic report and directors' report is consistent with the financial statements and has been prepared in accordance with applicable legal requirements. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the 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 Group 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. |
Report of the Independent Auditors to the Members of |
Shakespeare Engineering International |
(Asia) Limited |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the 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: |
- returns adequate for our audit have not been received from branches not visited by us; or |
- the financial statements are not in agreement with the accounting records and returns; or |
- certain disclosures of directors' remuneration specified by law are not made; or |
- we have not received all the information and explanations we required for our audit |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page four, 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Shakespeare Engineering International |
(Asia) Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
-the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
-we identified the laws and regulations applicable to the company through discussions with directors and other management; |
-we 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 and data protection, anti-bribery, employment, environmental and health and safety legislation; |
-identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
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 as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; 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; |
-enquiring of management as to actual and potential litigation and claims |
There are inherent limitations in our audit procedures described above. The more removed those laws and regulations are from financial transactions, the less likely it is that we would become aware 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. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
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 |
Shakespeare Engineering International |
(Asia) 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 |
Warden House |
37 Manor Road |
Colchester |
Essex |
CO3 3LX |
Shakespeare Engineering International |
(Asia) Limited (Registered number: 07006110) |
Consolidated Income Statement |
for the Year Ended 31 March 2024 |
31.3.24 | 31.3.23 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 | 10,662,341 | 10,621,797 |
Cost of sales | 4,021,007 | 4,453,737 |
GROSS PROFIT | 6,641,334 | 6,168,060 |
Distribution costs | 189,567 | 424,794 |
Administrative expenses | 6,045,078 | 4,874,798 |
6,234,645 | 5,299,592 |
406,689 | 868,468 |
Other operating income | - | 8,388 |
OPERATING PROFIT | 5 | 406,689 | 876,856 |
Interest receivable and similar income | 13 | 3 |
406,702 | 876,859 |
Interest payable and similar expenses | 6 | 248,221 | 194,383 |
PROFIT BEFORE TAXATION | 158,481 | 682,476 |
Tax on profit | 7 | 43,176 | 103,648 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 115,305 | 578,828 |
Shakespeare Engineering International |
(Asia) Limited (Registered number: 07006110) |
Consolidated Other Comprehensive Income |
for the Year Ended 31 March 2024 |
31.3.24 | 31.3.23 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 115,305 | 578,828 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
115,305 |
578,828 |
Total comprehensive income attributable to: |
Owners of the parent | 115,305 | 578,828 |
Shakespeare Engineering International |
(Asia) Limited (Registered number: 07006110) |
Consolidated Balance Sheet |
31 March 2024 |
31.3.24 | 31.3.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 | 2,494,328 | 2,769,940 |
Investments | 10 | - | - |
2,494,328 | 2,769,940 |
CURRENT ASSETS |
Stocks | 11 | 476,663 | 843,254 |
Debtors | 12 | 7,216,004 | 7,303,347 |
Cash at bank and in hand | 235,992 | 155,060 |
7,928,659 | 8,301,661 |
CREDITORS |
Amounts falling due within one year | 13 | 2,911,712 | 4,046,283 |
NET CURRENT ASSETS | 5,016,947 | 4,255,378 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
7,511,275 |
7,025,318 |
CREDITORS |
Amounts falling due after more than one year | 14 | (2,239,801 | ) | (1,912,325 | ) |
PROVISIONS FOR LIABILITIES | 18 | (252,821 | ) | (209,645 | ) |
NET ASSETS | 5,018,653 | 4,903,348 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 101 | 101 |
Retained earnings | 20 | 5,018,552 | 4,903,247 |
SHAREHOLDERS' FUNDS | 5,018,653 | 4,903,348 |
The financial statements were approved by the director and authorised for issue on 27 December 2024 and were signed by: |
N B Shakespeare - Director |
Shakespeare Engineering International |
(Asia) Limited (Registered number: 07006110) |
Company Balance Sheet |
31 March 2024 |
31.3.24 | 31.3.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 14 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 | 5,200,894 | 4,844,512 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 356,382 | 574,649 |
The financial statements were approved by the director and authorised for issue on |
Shakespeare Engineering International |
(Asia) Limited (Registered number: 07006110) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 March 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2022 | 101 | 4,324,419 | 4,324,520 |
Changes in equity |
Total comprehensive income | - | 578,828 | 578,828 |
Balance at 31 March 2023 | 101 | 4,903,247 | 4,903,348 |
Changes in equity |
Total comprehensive income | - | 115,305 | 115,305 |
Balance at 31 March 2024 | 101 | 5,018,552 | 5,018,653 |
Shakespeare Engineering International |
(Asia) Limited (Registered number: 07006110) |
Company Statement of Changes in Equity |
for the Year Ended 31 March 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 March 2023 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 March 2024 |
Shakespeare Engineering International |
(Asia) Limited (Registered number: 07006110) |
Consolidated Cash Flow Statement |
for the Year Ended 31 March 2024 |
31.3.24 | 31.3.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 416,704 | 1,133,444 |
Interest paid | (58,581 | ) | (59,628 | ) |
Interest element of hire purchase payments paid |
(189,640 |
) |
(134,755 |
) |
Net cash from operating activities | 168,483 | 939,061 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (514,177 | ) | (1,506,624 | ) |
Sale of tangible fixed assets | 65,645 | 64,354 |
Interest received | 13 | 3 |
Net cash from investing activities | (448,519 | ) | (1,442,267 | ) |
Cash flows from financing activities |
New loans in year | 1,186,090 | 829,731 |
Capital repayments in year | (763,734 | ) | (596,239 | ) |
Net cash from financing activities | 422,356 | 233,492 |
Increase/(decrease) in cash and cash equivalents | 142,320 | (269,714 | ) |
Cash and cash equivalents at beginning of year |
2 |
(703,136 |
) |
(433,422 |
) |
Cash and cash equivalents at end of year | 2 | (560,816 | ) | (703,136 | ) |
Shakespeare Engineering International |
(Asia) Limited (Registered number: 07006110) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 March 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.3.24 | 31.3.23 |
£ | £ |
Profit before taxation | 158,481 | 682,476 |
Depreciation charges | 735,866 | 476,209 |
Profit on disposal of fixed assets | (11,724 | ) | (32,141 | ) |
Finance costs | 248,221 | 194,383 |
Finance income | (13 | ) | (3 | ) |
1,130,831 | 1,320,924 |
Decrease/(increase) in stocks | 366,591 | (291,819 | ) |
Decrease/(increase) in trade and other debtors | 87,339 | (1,058,937 | ) |
(Decrease)/increase in trade and other creditors | (1,168,057 | ) | 1,163,276 |
Cash generated from operations | 416,704 | 1,133,444 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2024 |
31.3.24 | 1.4.23 |
£ | £ |
Cash and cash equivalents | 235,992 | 155,060 |
Bank overdrafts | (796,808 | ) | (858,196 | ) |
(560,816 | ) | (703,136 | ) |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 155,060 | 48,888 |
Bank overdrafts | (858,196 | ) | (482,310 | ) |
(703,136 | ) | (433,422 | ) |
Shakespeare Engineering International |
(Asia) Limited (Registered number: 07006110) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 March 2024 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.4.23 | Cash flow | At 31.3.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 155,060 | 80,932 | 235,992 |
Bank overdrafts | (858,196 | ) | 61,388 | (796,808 | ) |
(703,136 | ) | 142,320 | (560,816 | ) |
Debt |
Finance leases | (1,710,127 | ) | (642,003 | ) | (2,352,130 | ) |
Debts falling due within 1 year | (208,624 | ) | (25,533 | ) | (234,157 | ) |
Debts falling due after 1 year | (582,300 | ) | 245,186 | (337,114 | ) |
(2,501,051 | ) | (422,350 | ) | (2,923,401 | ) |
Total | (3,204,187 | ) | (280,030 | ) | (3,484,217 | ) |
Shakespeare Engineering International |
(Asia) Limited (Registered number: 07006110) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 March 2024 |
1. | STATUTORY INFORMATION |
Shakespeare Engineering International (Asia) Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The functional and presentational currency of the group is pounds sterling. Monetary amounts in these financial statements are rounded to the nearest £1, except where otherwise indicated. |
Going concern |
After reviewing the group's forecasts and projections, the members have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The group therefore continues to adopt the going concern basis in preparing its financial statements. |
Significant judgements and estimates |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Turnover |
Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances. |
Revenue from the sale of goods is recognised when the company has transferred to the buyer the significant risks and rewards of ownership of the goods. Specifically, revenue from the sale of goods is recognised when the goods are delivered and legal title has passed. |
Tangible fixed assets |
Freehold property | - |
Improvements to property | - |
Plant and machinery | - |
Motor vehicles | - |
Computer equipment | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Shakespeare Engineering International |
(Asia) Limited (Registered number: 07006110) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
A financial asset or financial liability is recognised only when the entity becomes a party to the contractual provision of the instrument. Basic financial instruments are initially recognised at the transaction price and are subsequently measured as follows: Debt instruments are subsequently measured at amortised cost and commitments to receive a loan and to make a loan to another entity are subsequently measured at amortised cost. All investments are measured at cost less impairment. All other financial instruments, including derivatives, are initially recognised at fair value, which is normally the transaction price and are subsequently measured at fair value, with any changes recognised in profit and loss. |
Financial assets are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. All equity instruments regardless of significance, and other financial assets that are individually significant, are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairments are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Shakespeare Engineering International |
(Asia) Limited (Registered number: 07006110) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Provision for liabilities |
Provisions are recognised when the group has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. |
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
31.3.24 | 31.3.23 |
£ | £ |
United Kingdom | 9,615,421 | 9,057,778 |
Europe | 904,690 | 1,443,077 |
United States of America | 142,230 | 120,942 |
10,662,341 | 10,621,797 |
4. | EMPLOYEES AND DIRECTORS |
31.3.24 | 31.3.23 |
£ | £ |
Wages and salaries | 3,006,908 | 2,610,203 |
Social security costs | 309,051 | 283,355 |
Other pension costs | 292,149 | 249,096 |
3,608,108 | 3,142,654 |
Shakespeare Engineering International |
(Asia) Limited (Registered number: 07006110) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
31.3.24 | 31.3.23 |
Employees |
The average number of employees by undertakings that were proportionately consolidated during the year was 80 (2023 - 73 ) . |
31.3.24 | 31.3.23 |
£ | £ |
Director's remuneration | - | - |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.3.24 | 31.3.23 |
£ | £ |
Hire of plant and machinery | 39,769 | 42,582 |
Depreciation - owned assets | 77,796 | 160,967 |
Depreciation - assets on hire purchase contracts | 658,072 | 315,241 |
Profit on disposal of fixed assets | (11,724 | ) | (32,141 | ) |
Auditors' remuneration | 26,000 | 14,500 |
Foreign exchange differences | 26,070 | 98 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.3.24 | 31.3.23 |
£ | £ |
Bank loan interest | 55,731 | 59,278 |
HMRC interest | 2,850 | 350 |
Hire purchase | 189,640 | 134,755 |
248,221 | 194,383 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.3.24 | 31.3.23 |
£ | £ |
Deferred tax | 43,176 | 103,648 |
Tax on profit | 43,176 | 103,648 |
Shakespeare Engineering International |
(Asia) Limited (Registered number: 07006110) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST |
At 1 April 2023 | 229,803 | 76,578 | 6,398,089 |
Additions | - | - | 365,263 |
Disposals | - | - | (50,000 | ) |
At 31 March 2024 | 229,803 | 76,578 | 6,713,352 |
DEPRECIATION |
At 1 April 2023 | 85,703 | 44,591 | 4,042,911 |
Charge for year | 6,989 | 7,657 | 645,237 |
Eliminated on disposal | - | - | (50,000 | ) |
At 31 March 2024 | 92,692 | 52,248 | 4,638,148 |
NET BOOK VALUE |
At 31 March 2024 | 137,111 | 24,330 | 2,075,204 |
At 31 March 2023 | 144,100 | 31,987 | 2,355,178 |
Shakespeare Engineering International |
(Asia) Limited (Registered number: 07006110) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
9. | TANGIBLE FIXED ASSETS - continued |
Group |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 April 2023 | 414,877 | 14,593 | 7,133,940 |
Additions | 148,914 | - | 514,177 |
Disposals | (85,138 | ) | - | (135,138 | ) |
At 31 March 2024 | 478,653 | 14,593 | 7,512,979 |
DEPRECIATION |
At 1 April 2023 | 177,954 | 12,841 | 4,364,000 |
Charge for year | 75,293 | 692 | 735,868 |
Eliminated on disposal | (31,217 | ) | - | (81,217 | ) |
At 31 March 2024 | 222,030 | 13,533 | 5,018,651 |
NET BOOK VALUE |
At 31 March 2024 | 256,623 | 1,060 | 2,494,328 |
At 31 March 2023 | 236,923 | 1,752 | 2,769,940 |
Shakespeare Engineering International |
(Asia) Limited (Registered number: 07006110) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
9. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 April 2023 | 2,431,962 | 320,982 | 2,752,944 |
Additions | 305,382 | 148,914 | 454,296 |
Disposals | - | (85,138 | ) | (85,138 | ) |
Transfer to ownership | (31,027 | ) | - | (31,027 | ) |
At 31 March 2024 | 2,706,317 | 384,758 | 3,091,075 |
DEPRECIATION |
At 1 April 2023 | 983,965 | 94,760 | 1,078,725 |
Charge for year | 586,852 | 71,220 | 658,072 |
Eliminated on disposal | - | (31,217 | ) | (31,217 | ) |
Transfer to ownership | (557,115 | ) | - | (557,115 | ) |
At 31 March 2024 | 1,013,702 | 134,763 | 1,148,465 |
NET BOOK VALUE |
At 31 March 2024 | 1,692,615 | 249,995 | 1,942,610 |
At 31 March 2023 | 1,447,997 | 226,222 | 1,674,219 |
Shakespeare Engineering International |
(Asia) Limited (Registered number: 07006110) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
9. | TANGIBLE FIXED ASSETS - continued |
Company |
Improvements |
Freehold | to | Plant and | Motor |
property | property | machinery | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2023 |
Additions |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 April 2023 |
Additions |
Transfer to ownership | 298,450 | - | 298,450 |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
Transfer to ownership | (305,204 | ) | - | (305,204 | ) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
Shakespeare Engineering International |
(Asia) Limited (Registered number: 07006110) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
10. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 April 2023 |
and 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 91 Haltwhistle Road,South Woodham Ferrers, Essex. CM3 5ZA. |
Nature of business: |
% |
Class of shares: | holding |
31.3.24 | 31.3.23 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: 91 Haltwhistle Road,South Woodham Ferrers, Essex. CM3 5ZA. |
Nature of business: |
% |
Class of shares: | holding |
31.3.24 | 31.3.23 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year | ( |
) | ( |
) |
Shakespeare Engineering International |
(Asia) Limited (Registered number: 07006110) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
11. | STOCKS |
Group | Company |
31.3.24 | 31.3.23 | 31.3.24 | 31.3.23 |
£ | £ | £ | £ |
Stocks | 476,663 | 843,254 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.3.24 | 31.3.23 | 31.3.24 | 31.3.23 |
£ | £ | £ | £ |
Trade debtors | 1,850,896 | 2,193,616 |
Amounts owed by group undertakings | - | - |
Other debtors | 5,308,652 | 5,104,391 |
Prepayments and accrued income | 56,456 | 5,340 |
7,216,004 | 7,303,347 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.3.24 | 31.3.23 | 31.3.24 | 31.3.23 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 15) | 1,030,965 | 1,066,820 |
Hire purchase contracts (see note 16) | 449,443 | 380,102 |
Trade creditors | 837,347 | 2,093,580 |
Amounts owed to group undertakings | - | - |
Social security and other taxes | 96,888 | 85,892 |
Pensions | 8,046 | 6,787 | 8,046 | 6,787 |
VAT | 308,414 | 257,094 | 150,413 | 98,509 |
Other creditors | 20,262 | 12,954 |
Accrued expenses | 160,347 | 143,054 |
2,911,712 | 4,046,283 |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
31.3.24 | 31.3.23 | 31.3.24 | 31.3.23 |
£ | £ | £ | £ |
Bank loans (see note 15) | 337,114 | 582,300 |
Hire purchase contracts (see note 16) | 1,902,687 | 1,330,025 |
2,239,801 | 1,912,325 |
Shakespeare Engineering International |
(Asia) Limited (Registered number: 07006110) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
15. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
31.3.24 | 31.3.23 | 31.3.24 | 31.3.23 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 796,808 | 858,196 |
Bank loans | 234,157 | 208,624 |
1,030,965 | 1,066,820 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 241,148 | 215,436 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 93,251 | 343,945 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 2,715 | 22,919 | 2,715 | 22,919 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
31.3.24 | 31.3.23 |
£ | £ |
Net obligations repayable: |
Within one year | 449,443 | 380,102 |
Between one and five years | 1,902,687 | 1,330,025 |
2,352,130 | 1,710,127 |
Shakespeare Engineering International |
(Asia) Limited (Registered number: 07006110) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
16. | LEASING AGREEMENTS - continued |
Company |
Hire purchase contracts |
31.3.24 | 31.3.23 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
31.3.24 | 31.3.23 | 31.3.24 | 31.3.23 |
£ | £ | £ | £ |
Bank overdraft | 796,808 | 858,196 |
Bank loans | 571,271 | 790,924 |
Hire purchase contracts | 2,352,130 | 1,710,127 | 670,882 | 104,657 |
3,720,209 | 3,359,247 |
The bank loans and overdraft are secured by way of a fixed and floating charge over all assets of the company and a legal charge over a freehold property owned by the company. |
The hire purchase liability is secured on the asset to which they relate. |
18. | PROVISIONS FOR LIABILITIES |
Group | Company |
31.3.24 | 31.3.23 | 31.3.24 | 31.3.23 |
£ | £ | £ | £ |
Deferred tax | 252,821 | 209,645 | 174,195 | 165,695 |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2023 | 209,645 |
Charge to Income Statement during year | 43,176 |
Balance at 31 March 2024 | 252,821 |
Shakespeare Engineering International |
(Asia) Limited (Registered number: 07006110) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
18. | PROVISIONS FOR LIABILITIES - continued |
Company |
Deferred |
tax |
£ |
Balance at 1 April 2023 |
Charge to Income Statement during year |
Balance at 31 March 2024 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.3.24 | 31.3.23 |
value: | £ | £ |
Ordinary | £1 | 101 | 101 |
20. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 April 2023 | 4,903,247 |
Profit for the year | 115,305 |
At 31 March 2024 | 5,018,552 |
Company |
Retained |
earnings |
£ |
At 1 April 2023 | 4,844,512 |
Profit for the year |
At 31 March 2024 |
Shakespeare Engineering International |
(Asia) Limited (Registered number: 07006110) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
21. | CAPITAL COMMITMENTS |
31.3.24 | 31.3.23 |
£ | £ |
Contracted but not provided for in the |
financial statements | - | 143,100 |
22. | RELATED PARTY DISCLOSURES |
As at 31 March 2024 Shakespeare Engineering International (Asia) Limited was owed £5,296,627 (2023: £5,068,966) from a company controlled by key management personnel, which is unsecured, interest free and repayable on demand. |
Related party transactions are at arm's length. |
The company does not have a parent undertaking. The ultimate controlling party of the group is N B Shakespeare. |