Company registration number 01814640 (England and Wales)
D A BENHAM ENGINEERING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
D A BENHAM ENGINEERING LIMITED
COMPANY INFORMATION
Directors
Mr P C Benham
Mr R J Benham
Mr J Benham
Company number
01814640
Registered office
Precision House
Chapel Lane
Rushington
Southampton
Hampshire
United Kingdom
SO40 9AH
Auditor
Azets Audit Services
Athenia House
10-14 Andover Road
Winchester
Hampshire
United Kingdom
SO23 7BS
D A BENHAM ENGINEERING LIMITED
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
Notes to the financial statements
11 - 21
D A BENHAM ENGINEERING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The directors present the strategic report for the year ended 30 June 2024.

Review of the business

D A Benham Engineering Limited is an established Tier 1 supplier to aerospace and defence OEM contractors and is committed to providing a flexible and responsive service to our customers. D A Benham uses leading-edge technology including five axis prismatic and mill turn equipment technology to manufacture a broad range of complex precision-engineered components and sub-assemblies.

This is demonstrated in the results with the company achieving a profit before tax of £509,985 (2023: £689,144), achieved through efficient working practices and a concentration on margin and cost control.

The company continues to maintain a strong balance sheet with net assets of £6,378,274 (2023: £5,883,406) and the directors are confident the company will remain profitable and in a strong position during 2025.

Principal risks and uncertainties

Principle risk:

The company operates principally in the aerospace and defence sector and budgets are subject to variations in the current economic climate. The company has a strong team and reputation within the sector and is well placed to win contracts. Increased competition may have an impact on margins achievable. This is considered to be the principal risk and uncertainty for the company.

 

Financial Instruments:

The company's principle financial instrument is cash. The company has various other financial assets and liabilities such as trade debtors and creditors arising directly from its operations.

 

Liquidity risk:

The company maintains cash reserves at amounts sufficient to ensure that funds are available for operation.

 

Interest rate risk:

The company is exposed to interest rate risk on its bank deposits.

 

Credit risk:

The company's principle financial assets are cash and trade debtors and the credit risk associated with these are minimal. Customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

 

Price risk:

The directors consider that the company faces the usual risk of any other company operating in a competitive, commercial environment.

Development and performance

Sales for the period were £10,885,504, which represents an increase of 20.2%.

 

Our relationships continue to develop and mature with our strategic partners within the defence and aerospace defence sectors. Sales to the civil aerospace sector sustained 25% of turnover and sales to the aerospace defence sector represented 75% of sales.

 

Our order book remains robust with future opportunities identified.

D A BENHAM ENGINEERING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Key performance indicators

Financial key performance indicators represent the challenges facing the business, specifically customer cost down expectations, increasing costs and the extent of new business within the business.

 

 

2024

2023

Turnover

10,885,504

9,054,734

Gross Profit

2,705,362

2,845,455

Operating Profit

507,686

694,276

 

Our challenge is to remove cost from the business and ensure our commercial offering facilitates improved profitability.

 

The business continues to maintain a strong financial position at the end of the period. The on-going investment in the facility, plant and our people is continuing to provide exciting opportunities for the business.

 

The diversity in our customer base together with meeting our customers’ expectations continues to require a high level of commitment from both the management team and employees.

On behalf of the board

Mr P C Benham
Director
20 December 2024
D A BENHAM ENGINEERING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

The directors present their annual report and financial statements for the year ended 30 June 2024.

Principal activities

The principal activity of the company continued to be that of precision engineering.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr P C Benham
Mr R J Benham
Mr J Benham
Financial instruments

The company's principle financial instrument is cash. The company has various other financial assets and liabilities such as trade debtors and creditors arising directly from its operations.

Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 P C Benham
Director
20 December 2024
D A BENHAM ENGINEERING LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 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:

 

 

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.

D A BENHAM ENGINEERING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF D A BENHAM ENGINEERING LIMITED
- 5 -
Opinion

We have audited the financial statements of D A Benham Engineering Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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:

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 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The 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:

D A BENHAM ENGINEERING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF D A BENHAM ENGINEERING LIMITED
- 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:

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.

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.

D A BENHAM ENGINEERING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF D A BENHAM ENGINEERING LIMITED
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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 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.

Jon Noble
Senior Statutory Auditor
For and on behalf of Azets Audit Services
23 December 2024
Chartered Accountants
Statutory Auditor
Athenia House
10-14 Andover Road
Winchester
Hampshire
United Kingdom
SO23 7BS
D A BENHAM ENGINEERING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
Notes
£
£
Turnover
10,885,504
9,054,734
Cost of sales
(8,180,142)
(6,209,279)
Gross profit
2,705,362
2,845,455
Administrative expenses
(2,258,014)
(2,194,765)
Other operating income
60,780
52,028
Exceptional items
3
(442)
(8,442)
Operating profit
4
507,686
694,276
Interest receivable and similar income
8
2,299
-
0
Interest payable and similar expenses
9
-
0
(5,132)
Profit before taxation
509,985
689,144
Tax on profit
10
(15,117)
(18,944)
Profit for the financial year
494,868
670,200

The profit and loss account has been prepared on the basis that all operations are continuing operations.

D A BENHAM ENGINEERING LIMITED
BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
333,057
323,381
Current assets
Stocks
12
254,434
98,292
Debtors
13
7,127,335
6,248,417
Cash at bank and in hand
788,528
809,516
8,170,297
7,156,225
Creditors: amounts falling due within one year
14
(2,050,524)
(1,536,761)
Net current assets
6,119,773
5,619,464
Total assets less current liabilities
6,452,830
5,942,845
Provisions for liabilities
Deferred tax liability
16
74,556
59,439
(74,556)
(59,439)
Net assets
6,378,274
5,883,406
Capital and reserves
Called up share capital
18
100
100
Profit and loss reserves
6,378,174
5,883,306
Total equity
6,378,274
5,883,406
The financial statements were approved by the board of directors and authorised for issue on 20 December 2024 and are signed on its behalf by:
Mr P C Benham
Director
Company Registration No. 01814640
D A BENHAM ENGINEERING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 July 2022
100
5,213,106
5,213,206
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
670,200
670,200
Balance at 30 June 2023
100
5,883,306
5,883,406
Year ended 30 June 2024:
Profit and total comprehensive income for the year
-
494,868
494,868
Balance at 30 June 2024
100
6,378,174
6,378,274
D A BENHAM ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
1
Accounting policies
Company information

D A Benham Engineering Limited is a private company limited by shares incorporated in England and Wales. The registered office is Precision House, Chapel Lane, Rushington, Southampton, Hampshire, United Kingdom, SO40 9AH.

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:

 

 

The financial statements of the company are consolidated in the financial statements of Benham Holdings Limited. These consolidated financial statements are available from its registered office, Precision House Chapel Lane, Rushington, Southampton, United Kingdom, SO40 9AH.

1.2
Going concern

At 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, because the company continues to have substantial cash reserves, a profitable outlook and a strong equity position. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.true

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 

Revenue for contracts in the course of construction are recognised by the stage of completion of the contracted work where the outcome of the contract can be estimated reliably.

 

D A BENHAM ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 12 -
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings Leasehold
2% on cost
Plant and machinery
8% on cost
Fixtures, fittings & equipment
15% on cost
Motor vehicles
25% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
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.

1.8
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. All financial instruments are considered by the directors to be basic financial instruments .

 

Financial instruments are recognised in the company's statement of financial position 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.

D A BENHAM ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
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.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

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, other loans, and loans from fellow group companies, 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 receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
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.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

D A BENHAM ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
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.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
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.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
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.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.15

Research and development

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

D A BENHAM ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
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.

 

The main areas of accounting estimate are:

 

Slow moving stock provisions - As orders are made to customer specification, any excess stock is retained but regarded as redundant with no value assigned.

 

Long term contracts - Recognition of revenue and profit is based on judgments in respect of the ultimate profitability of the product. Such judgments are arrived at through the use of estimation in relation to costs and value of work performed to date and remaining costs to bring product to completion.

 

 

3
Exceptional item
2024
2023
£
£
Expenditure
Provision for losses in related party loans
442
8,442
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
5,691
10,700
Fees payable to the company's auditor for the audit of the company's financial statements
11,915
11,400
Depreciation of owned tangible fixed assets
58,306
41,710
Profit on disposal of tangible fixed assets
(500)
-
Operating lease charges
257,476
240,083
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
11,915
11,400
D A BENHAM ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Operatives
52
48
Administration and management
31
27
Total
83
75

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,460,982
3,115,729
Social security costs
359,234
329,821
Pension costs
143,182
140,377
3,963,398
3,585,927
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
262,438
288,072
Company pension contributions to defined contribution schemes
14,534
73,690
276,972
361,762

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
122,653
154,398
Company pension contributions to defined contribution schemes
770
60,000
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
2,299
-
0
D A BENHAM ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
9
Interest payable and similar expenses
2024
2023
£
£
Other interest on financial liabilities
-
0
5,132
10
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
15,117
15,534
Changes in tax rates
-
0
3,410
Total deferred tax
15,117
18,944

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
509,985
689,144
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
127,496
141,275
Tax effect of expenses that are not deductible in determining taxable profit
7
-
0
Group relief
(22,825)
-
0
Research and development tax credit
(89,561)
(89,786)
Under/(over) provided in prior years
-
0
(35,494)
Change in deferred tax rate
-
0
3,410
Super deduction element of capital allowances
-
0
(461)
Taxation charge for the year
15,117
18,944
D A BENHAM ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
11
Tangible fixed assets
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2023
12,029
2,608,426
490,958
24,585
3,135,998
Additions
-
0
49,112
18,870
-
0
67,982
Disposals
-
0
(424,944)
-
0
(14,441)
(439,385)
At 30 June 2024
12,029
2,232,594
509,828
10,144
2,764,595
Depreciation and impairment
At 1 July 2023
20
2,352,426
435,586
24,585
2,812,617
Depreciation charged in the year
241
42,459
15,606
-
0
58,306
Eliminated in respect of disposals
-
0
(424,944)
-
0
(14,441)
(439,385)
At 30 June 2024
261
1,969,941
451,192
10,144
2,431,538
Carrying amount
At 30 June 2024
11,768
262,653
58,636
-
0
333,057
At 30 June 2023
12,009
256,000
55,372
-
0
323,381
12
Stocks
2024
2023
£
£
Raw materials and consumables
254,434
98,292
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,036,743
2,392,790
Gross amounts owed by contract customers
3,902,695
3,543,961
Corporation tax recoverable
-
0
80,097
Amounts owed by group undertakings
-
0
50,063
Other debtors
47,289
46,185
Prepayments and accrued income
140,608
135,321
7,127,335
6,248,417
D A BENHAM ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Other borrowings
15
-
0
19,097
Trade creditors
1,018,343
1,044,824
Amounts owed to group undertakings
502,142
-
0
Corporation tax
2,140
-
0
Other taxation and social security
445,687
350,263
Other creditors
34,754
38,962
Accruals
47,458
83,615
2,050,524
1,536,761
15
Loans and overdrafts
2024
2023
£
£
Other loans
-
0
19,097
Payable within one year
-
0
19,097

Other loans relate to a 5 year loan, which was paid off during 2024. Quarterly interest was charged at 2.53%.

16
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
74,556
71,676
Losses carried forward
-
(12,237)
74,556
59,439
2024
Movements in the year:
£
Liability at 1 July 2023
59,439
Charge to profit or loss
15,117
Liability at 30 June 2024
74,556
D A BENHAM ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
16
Deferred taxation
(Continued)
- 20 -

The deferred tax liability set out above relates to accelerated capital allowances and losses carried forward that are expected to reverse in due course.

17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
143,182
140,377

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.

18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
19
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
31,459
59,251
Between two and five years
48,858
65,067
80,317
124,318
20
Related party transactions

During the year, the company paid related parties, excluding directors, a total of £59,491 (2023: £34,953) in wages and salaries (including benefits).

 

During the year, the group was charged rent of £31,900 (2023: £29,600) by Benham Engineering Limited (1994) Retirement Benefit Scheme, a pension fund owned by the directors. At the year end there was a balance of £9,570 (2023: £9,750) due to Benham Engineering Limited (1994) in relation to this rent charge.

 

There was a net debtor balance owed from Newturn CNC Machining of £855,796 (2023 - £852,733) net of VAT, which has been fully provided for as Newturn CNC Machining is loss making.

21
Directors' transactions

During the year the company was charged rent of £16,313 (2023: £14,500) by the directors. At the year end there was a balance of £5,438 (2023: £nil) due to the directors in relation to the rent charge.

D A BENHAM ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
22
Ultimate controlling party

The company's immediate parent is Benham Holdings Limited, a company incorporated in England and Wales.

The ultimate controlling party is considered to be Mr P C Benham, due to his majority shareholding in the parent company.

The results on D A Benham Limited are consolidated by Benham Holdings Limited. Copies of the group accounts can be obtained from companies house.

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