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Registered number: 01932347










STEPHILL GENERATORS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

 
STEPHILL GENERATORS LIMITED
 
 
COMPANY INFORMATION


Directors
C R Perrett 
P B Livingstone 
S P Perrett 




Registered number
01932347



Registered office
5 Wallis Close
Park Farm Industrial Estate

Wellingborough

Northamptonshire

NN8 6AG




Independent auditors
MHA

Century House

The Lakes

Northampton

Northamptonshire

NN4 7HD





 
STEPHILL GENERATORS LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Statement of Income and Retained Earnings
 
9
Balance Sheet
 
10
Statement of Cash Flows
 
11
Analysis of Net Debt
 
12
Notes to the Financial Statements
 
13 - 26


 
STEPHILL GENERATORS LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

Introduction
 
The Directors present their Strategic Report for the year ended 31 March 2024.

Business review
 
The Directors are satisfied with the performance of the company and its prospects. Trading for the year ended 31 March 2024 remained in line with management expectations given the uncertainty surrounding the global markets. The overall profit before tax for the year ended 31 March 2024 was £3,236,623 (2023 - £5,086,835). The retained earnings of the company at 31 March 2024 were £7,183,552 (2023 - £8,500,268).
The Company operates in a competitive market which is subject to a variety of external factors. In the current period, the Company has responded to the reduced demand from the construction industry through changes to the product mix sold.
The Company continues to have a strong focus on the quality of operations, including improving standards and services provided to customers, growing the brand and continuing to invest in quieter generators, to ensure that it is well placed and competitive in the market.

Financial key performance indicators
 
The company uses a range of performance measures to monitor and manage the business effectively. These are both financial and non-financial and the most significant of these are the key performance indicators. 
              
 2024           2023
                  
  £       £
Gross Profit Margin                  
27.43%     32.22%
EBITDA               
3,295,609        5,173,147 
Liquidity Ratio           
   2.32       3.24 
 

The reason for the movement in key performance indicators is due to the reasons stated in the business review above.

Page 1

 
STEPHILL GENERATORS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Principal risks and uncertainties
 
The principal risks are related to a potential slowdown in the construction industry and improved infrastructure in the markets in which it works reducing the need for diesel or petrol powered generators. The directors take measures to minimise the company's exposure to these risks on an ongoing basis. The main financial risks arising from the company's activities are credit risk, interest risk, liquidity risk and foreign exchange risk. These are monitored by the board of directors and were not considered to be significant at the balance sheet date. 
Credit risk
Credit risk is the financial exposure generated by the potential default of third parties in fulfilling their obligations. Credit risk arises for the company if it is unable to recovers sums due from customers and it is mitigated by setting maximum levels of credit tolerance for more significant customers. All customers who wish to trade on credit terms are subject to credit verification procedures, receivables are monitored on an on-going basis and provision is made for doubtful debts where necessary.
Interest rate risk
The company finances its operations primarily through the reinvestment of profits made from its operations, and ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.
Liquidity risk
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and invest cash assets safely and profitably. The company seeks to maintain sufficient cash deposits to ensure the company has sufficient funds for operations. 


This report was approved by the board and signed on its behalf.



................................................
P B Livingstone
Director

Date: 5 December 2024

Page 2

 
STEPHILL GENERATORS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The directors present their report and the financial statements for the year ended 31 March 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £2,683,284 (2023 - £4,370,539).

Dividends of £4,000,000 were declared in the year (2023 - £4,000,000).

Directors

The directors who served during the year were:

C R Perrett 
P B Livingstone 
S P Perrett 

Future developments

Stephill Generators looks forward to organic growth from its product mix, despite recent economic headwinds.

Page 3

 
STEPHILL GENERATORS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
• so far as the director is aware, there is no relevant audit information of which the Company's auditor is    unaware, and
• the director has taken all the steps that ought to have been taken as a director in order to be aware of any   relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsMHAwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





P B Livingstone
Director

Date: 5 December 2024

Page 4

 
STEPHILL GENERATORS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STEPHILL GENERATORS LIMITED
 

Opinion


We have audited the financial statements of Stephill Generators Limited (the 'Company') for the year ended 31 March 2024, which comprise the Statement of Income and Retained Earnings, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policiesThe 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.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.


Page 5

 
STEPHILL GENERATORS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STEPHILL GENERATORS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic Report and the 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.


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 directors' 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 set out on page 3, 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.


Page 6

 
STEPHILL GENERATORS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STEPHILL GENERATORS LIMITED (CONTINUED)


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 an Auditors' 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.


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 around actual and potential litigation and claims;
-  Performing audit work over the risk of management override of controls, including testing of journal    entries and other adjustments for appropriateness, evaluating the business rationale of significant     transactions outside the normal course of business and review of accounting estimates for      bias;
-  Reviewing financial statement disclosures and testing supporting documentation to assess compliance    with applicable laws and regulations.


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 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 Auditors' Report.


Page 7

 
STEPHILL GENERATORS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STEPHILL GENERATORS LIMITED (CONTINUED)


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 2006Our 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 Auditors' 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.





Adam Young ACA (Senior Statutory Auditor)
  
for and on behalf of
MHA
 
Statutory Auditors
  
Northampton, United Kingdom

Date: 31 January 2025
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
Page 8

 
STEPHILL GENERATORS LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£
£

  

Turnover
 4 
16,368,234
20,093,577

Cost of sales
  
(11,877,793)
(13,618,826)

Gross profit
  
4,490,441
6,474,751

Distribution costs
  
(248,221)
(367,145)

Administrative expenses
  
(1,050,109)
(1,026,771)

Other operating income
 5 
7,200
6,000

Operating profit
 6 
3,199,311
5,086,835

Interest receivable and similar income
 10 
37,312
-

Profit before tax
  
3,236,623
5,086,835

Tax on profit
 11 
(553,339)
(716,296)

Profit after tax
  
2,683,284
4,370,539

  

  

Retained earnings at the beginning of the year
  
8,500,268
8,129,729

Profit for the year
  
2,683,284
4,370,539

Dividends declared and paid
  
(4,000,000)
(4,000,000)

Retained earnings at the end of the year
  
7,183,552
8,500,268
Page 9

 
STEPHILL GENERATORS LIMITED
REGISTERED NUMBER: 01932347

BALANCE SHEET
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 13 
1,212,269
1,173,538

Investments
 14 
28,765
28,765

  
1,241,034
1,202,303

Current assets
  

Stocks
 15 
5,553,971
5,838,088

Debtors: amounts falling due within one year
 16 
3,801,671
3,373,544

Cash at bank and in hand
 17 
1,227,929
1,738,127

  
10,583,571
10,949,759

Creditors: amounts falling due within one year
 18 
(4,565,981)
(3,560,918)

Net current assets
  
 
 
6,017,590
 
 
7,388,841

Total assets less current liabilities
  
7,258,624
8,591,144

Provisions for liabilities
  

Deferred tax
 19 
(25,072)
(40,876)

Net assets
  
7,233,552
8,550,268


Capital and reserves
  

Called up share capital 
 20 
50,000
50,000

Profit and loss account
 21 
7,183,552
8,500,268

  
7,233,552
8,550,268


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
P B Livingstone
Director

Date: 5 December 2024

The notes on pages 13 to 26 form part of these financial statements.

Page 10

 
STEPHILL GENERATORS LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
2,683,284
4,370,539

Adjustments for:

Depreciation of tangible assets
96,298
86,312

Loss on disposal of tangible assets
(5,500)
(1,450)

Interest received
(37,312)
-

Taxation charge
553,339
716,296

Decrease/(increase) in stocks
284,117
(991,860)

(Increase)/decrease in debtors
(428,127)
652,592

Increase/(decrease) in creditors
1,083,562
(579,006)

Corporation tax (paid)
(647,641)
(879,278)

Net cash generated from operating activities

3,582,020
3,374,145


Cash flows from investing activities

Purchase of tangible fixed assets
(135,030)
(99,667)

Sale of tangible fixed assets
5,500
1,450

Interest received
37,312
-

Net cash from investing activities

(92,218)
(98,217)

Cash flows from financing activities

Dividends paid
(4,000,000)
(4,000,000)

Net cash used in financing activities
(4,000,000)
(4,000,000)

Net (decrease) in cash and cash equivalents
(510,198)
(724,072)

Cash and cash equivalents at beginning of year
1,738,127
2,462,199

Cash and cash equivalents at the end of year
1,227,929
1,738,127


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,227,929
1,738,127


The notes on pages 13 to 26 form part of these financial statements.

Page 11

 
STEPHILL GENERATORS LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2024




At 1 April 2023
Cash flows
At 31 March 2024
£

£

£

Cash at bank and in hand

1,738,127

(510,198)

1,227,929

Debt due within 1 year

(1,286,104)

(815,221)

(2,101,325)


452,023
(1,325,419)
(873,396)

The notes on pages 13 to 26 form part of these financial statements.

Page 12

 
STEPHILL GENERATORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

Stephill Generators Limited is a company limited by shares, domiciled in England and Wales, registered number 01932347. The registered office and principal place of business is 5 Wallis Close, Park Farm Industrial Estate, Wellingborough, Northants, NN8 6AG.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Exemption from preparing consolidated financial statements

The Company is exempt from the requirement to prepare consolidated financial statements as all of its subsidiaries are required to be excluded from consolidation by section 402 of the Companies Act 2006.

 
2.3

Going concern

The financial statements have been prepared on a going concern basis. The Directors have considered relevant information, including the annual budget, and the impact of subsequent events in making their assessment.
Based on these assessments and having regard to the resources available to the entity, the Directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and accounts.

Page 13

 
STEPHILL GENERATORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP, the accounts are rounded to the nearest whole £.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Income and Retained Earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 14

 
STEPHILL GENERATORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 15

 
STEPHILL GENERATORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.9
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
2%
Motor vehicles
-
25%
Fixtures and fittings
-
25%

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

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.10

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.11

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

Page 16

 
STEPHILL GENERATORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.14

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.15

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.16

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Page 17

 
STEPHILL GENERATORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.16
Financial instruments (continued)


Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.17

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 18

 
STEPHILL GENERATORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, which are described in note 2, management have been required to make judgments, estimates and assumptions. These estimates which relate to the carrying value of assets and liabilities, where not readily available from other sources, are based on underlying assumptions and experience. Actual results may differ from these estimates. These estimates and assumption are reviewed on an on-going basis.
Sources of estimation uncertainty:
Depreciation rates are based on estimates of the useful lives and residual values of the associated
assets.
Bad debt provisions are based on the likely recovery of debtor balances.
Stock provisions are based on the likelihood of being able to sell the goods above cost or use them during production.


4.


Turnover

The whole of the turnover is attributable to the principal activity of the Company.

Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
15,517,581
18,824,807

Rest of Europe
836,307
1,163,072

Rest of the world
14,346
105,698

16,368,234
20,093,577



5.


Other operating income

2024
2023
£
£

Net rents receivable
7,200
6,000


Page 19

 
STEPHILL GENERATORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Exchange differences
(260)
301

Depreciation
96,298
86,312

(Profit)/loss on sale of fixed assets
(5,500)
(1,450)


7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
15,000
12,000


8.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
1,894,086
2,049,488

Social security costs
186,701
209,326

Cost of defined contribution scheme
67,564
106,882

2,148,351
2,365,696


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Production
42
50



Selling and distribution
1
1



Administration
13
13

56
64

Page 20

 
STEPHILL GENERATORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
97,810
101,209

Company contributions to defined contribution pension schemes
22,200
21,000

120,010
122,209


During the year retirement benefits were accruing to 2 directors (2023 - 2) in respect of defined contribution pension schemes.


10.


Interest receivable

2024
2023
£
£


Other interest receivable
37,312
-


11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
830,435
959,187

Adjustments in respect of previous periods
(261,292)
(265,456)


Total current tax
569,143
693,731

Deferred tax


Origination and reversal of timing differences
(15,804)
22,565


Tax on profit
553,339
716,296
Page 21

 
STEPHILL GENERATORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
3,236,623
5,086,835


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
809,156
966,499

Effects of:


Other timing differences leading to an increase (decrease) in taxation
5,475
15,253

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
(261,292)
(265,456)

Total tax charge for the year
553,339
716,296


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


12.


Dividends

2024
2023
£
£


Dividends
4,000,000
4,000,000

Page 22

 
STEPHILL GENERATORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

13.


Tangible fixed assets





Freehold property
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 April 2023
1,465,372
230,386
826,819
2,522,577


Additions
125,810
-
9,220
135,030


Disposals
-
(14,295)
-
(14,295)



At 31 March 2024

1,591,182
216,091
836,039
2,643,312



Depreciation


At 1 April 2023
488,238
127,260
733,541
1,349,039


Charge for the year on owned assets
21,719
44,526
30,054
96,299


Disposals
-
(14,295)
-
(14,295)



At 31 March 2024

509,957
157,491
763,595
1,431,043



Net book value



At 31 March 2024
1,081,225
58,600
72,444
1,212,269



At 31 March 2023
977,134
103,126
93,278
1,173,538


14.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 April 2023
28,765



At 31 March 2024
28,765




Page 23

 
STEPHILL GENERATORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Stephill Generators (Wellingborough) Limited
5 Wallis Close, Park Farm Industrial Estate, Wellingborough, NN8 6AG
Dormant
Ordinary
100%

The aggregate of the share capital and reserves as at 31 March 2024 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)

Stephill Generators (Wellingborough) Limited
28,765
-


15.


Stocks

2024
2023
£
£

Raw materials and consumables
4,644,873
5,105,942

Finished goods and goods for resale
909,098
732,146

5,553,971
5,838,088



16.


Debtors

2024
2023
£
£


Trade debtors
3,763,928
3,359,046

Other debtor
13,378
-

Prepayments and accrued income
24,365
14,498

3,801,671
3,373,544


Page 24

 
STEPHILL GENERATORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

17.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
1,227,929
1,738,127



18.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
1,680,834
1,571,226

Amounts owed to group undertakings
28,765
28,765

Corporation tax
165,601
244,100

Other taxation and social security
483,823
323,601

Other creditors
2,072,560
1,257,339

Accruals and deferred income
134,398
135,887

4,565,981
3,560,918



19.


Deferred taxation




2024
2023


£

£






At beginning of year
40,876
18,311


Charged to profit or loss
(15,804)
22,565



At end of year
25,072
40,876

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
25,072
40,876

Page 25

 
STEPHILL GENERATORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

20.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



50,000 (2023 - 50,000) Ordinary shares of £1.00 each
50,000
50,000



21.


Reserves

Profit and loss account

The profit and loss reserve includes all current and prior year retained profits and losses. All amounts are distributable.


22.


Capital commitments


At 31 March 2024 the Company had capital commitments as follows:

2024
2023
£
£


Contracted for but not provided in these financial statements
849,190
-


23.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £67,564 (2023 - £106,882). No contributions were payable to the fund at the balance sheet date.


24.


Related party transactions

The directors were paid interim dividends in the year of £4,000,000 (2023 - £4,000,000).
As at 31 March 2024, £2,072,560 (2023 - £1,257,339) was owed to a director. No interest was due on this balance and amounts are repayable on demand. This balance is included in other creditors.
There were no other transactions during the year such as are required to be disclosed under section 33 of FRS102.


25.


Controlling party

The ultimate controlling party of the Company during the year was C R Perrett by virtue of his majority shareholding.

 
Page 26