Company registration number 00541377 (England and Wales)
ASHTEAD ENGINEERING COMPANY LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
PAGES FOR FILING WITH REGISTRAR
ASHTEAD ENGINEERING COMPANY LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
ASHTEAD ENGINEERING COMPANY LIMITED
BALANCE SHEET
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
4
35,525
3,465
Tangible assets
5
1,296,662
1,372,738
Current assets
Stocks
447,554
445,248
Debtors
6
666,262
639,038
Cash at bank and in hand
1,960
29,065
1,115,776
1,113,351
Creditors: amounts falling due within one year
7
(1,062,194)
(1,156,208)
Net current assets/(liabilities)
53,582
(42,857)
Total assets less current liabilities
1,385,769
1,333,346
Creditors: amounts falling due after more than one year
8
(445,519)
(656,244)
Provisions for liabilities
9
(263,371)
(154,254)
Net assets
676,879
522,848
Capital and reserves
Called up share capital
50,122
50,122
Profit and loss reserves
626,757
472,726
Total equity
676,879
522,848
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 30 June 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
ASHTEAD ENGINEERING COMPANY LIMITED
BALANCE SHEET (CONTINUED)
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 3 February 2025 and are signed on its behalf by:
Mr N Harvey
Director
Company Registration No. 00541377
ASHTEAD ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
1
Accounting policies
Company information
Ashtead Engineering Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 2 - 3, Camphill Industrial Estate, Camphill Road, West Byfleet, Surrey, KT14 6EW.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 £1.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
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.
1.3
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation 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:
Software
20% or 25% straight line
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:
Plant and machinery
15% per annum on a reducing balance basis
Fixtures, fittings and equipment
25% per annum on a reducing balance basis
Vehicles
25% per annum on a reducing balance basis
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.
ASHTEAD ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 4 -
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. 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.
1.6
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.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
ASHTEAD ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 5 -
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
1.9
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.12
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.13
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.
1.14
The company operates an invoice discounting facility over its trade debts. The accounting policy is to include debts invoice discounted with recourse within trade debtors due within one year and the returnable element of proceeds is recorded as a bank loan due within one year. Invoice discounting fees and interest charged to the profit and loss account in the year to which they relate. Bad debts borne by the company are charged to the profit and loss account when incurred.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
21
23
ASHTEAD ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 6 -
3
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
109,117
29,134
4
Intangible fixed assets
Software
£
Cost
At 1 July 2023
32,316
Additions - internally developed
39,796
At 30 June 2024
72,112
Amortisation and impairment
At 1 July 2023
28,851
Amortisation charged for the year
7,736
At 30 June 2024
36,587
Carrying amount
At 30 June 2024
35,525
At 30 June 2023
3,465
5
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 July 2023
2,210,605
Additions
147,416
Disposals
(14,748)
At 30 June 2024
2,343,273
Depreciation and impairment
At 1 July 2023
837,867
Depreciation charged in the year
223,492
Eliminated in respect of disposals
(14,748)
At 30 June 2024
1,046,611
Carrying amount
At 30 June 2024
1,296,662
At 30 June 2023
1,372,738
ASHTEAD ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
618,790
631,170
Other debtors
20,784
1,162
Prepayments and accrued income
26,688
6,706
666,262
639,038
7
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
334,300
349,698
Obligations under finance leases
321,494
291,219
Trade creditors
240,781
287,572
Amounts owed to group undertakings
3,743
Taxation and social security
97,601
68,756
Deferred income
18,592
136,412
Other creditors
9,060
11,481
Accruals and deferred income
36,623
11,070
1,062,194
1,156,208
The bank loan represents the amount owed to a factoring company under a confidential invoice discounting agreement, secured by fixed and floating charge over all the assets of the company.
Obligations under finance leases include £321,494 (2023: £291,219 ) due under Hire Purchase agreements secured on the assets acquired.
8
Creditors: amounts falling due after more than one year
2024
2023
£
£
Other creditors
445,519
656,244
Other creditors include £445,369 (2023: £656,244) due under Hire Purchase or finance lease agreements secured on the assets acquired.
9
Provisions for liabilities
2024
2023
£
£
Deferred tax liabilities
10
263,371
154,254
ASHTEAD ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
10
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
263,371
154,254
2024
Movements in the year:
£
Liability at 1 July 2023
154,254
Charge to profit or loss
109,117
Liability at 30 June 2024
263,371
The deferred tax liability set out above relates to accelerated capital allowances that are expected to mature within the foreseeable future.