Caseware UK (AP4) 2023.0.135 2023.0.135 2024-08-312024-08-31falsefalsefalseLight Manufacturing2023-09-018084false SC049122 2023-09-01 2024-08-31 SC049122 2022-09-01 2023-08-31 SC049122 2024-08-31 SC049122 2023-08-31 SC049122 2022-09-01 SC049122 1 2023-09-01 2024-08-31 SC049122 1 2022-09-01 2023-08-31 SC049122 5 2023-09-01 2024-08-31 SC049122 5 2022-09-01 2023-08-31 SC049122 d:Director1 2023-09-01 2024-08-31 SC049122 d:Director2 2023-09-01 2024-08-31 SC049122 d:Director3 2023-09-01 2024-08-31 SC049122 d:Director4 2023-09-01 2024-08-31 SC049122 d:RegisteredOffice 2023-09-01 2024-08-31 SC049122 d:Agent1 2023-09-01 2024-08-31 SC049122 e:Buildings 2023-09-01 2024-08-31 SC049122 e:Buildings 2024-08-31 SC049122 e:Buildings 2023-08-31 SC049122 e:Buildings e:OwnedOrFreeholdAssets 2023-09-01 2024-08-31 SC049122 e:PlantMachinery 2023-09-01 2024-08-31 SC049122 e:PlantMachinery 2024-08-31 SC049122 e:PlantMachinery 2023-08-31 SC049122 e:PlantMachinery e:OwnedOrFreeholdAssets 2023-09-01 2024-08-31 SC049122 e:MotorVehicles 2023-09-01 2024-08-31 SC049122 e:MotorVehicles 2024-08-31 SC049122 e:MotorVehicles 2023-08-31 SC049122 e:MotorVehicles e:OwnedOrFreeholdAssets 2023-09-01 2024-08-31 SC049122 e:FurnitureFittings 2023-09-01 2024-08-31 SC049122 e:FurnitureFittings 2024-08-31 SC049122 e:FurnitureFittings 2023-08-31 SC049122 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-09-01 2024-08-31 SC049122 e:OwnedOrFreeholdAssets 2023-09-01 2024-08-31 SC049122 e:CurrentFinancialInstruments 2024-08-31 SC049122 e:CurrentFinancialInstruments 2023-08-31 SC049122 e:CurrentFinancialInstruments e:WithinOneYear 2024-08-31 SC049122 e:CurrentFinancialInstruments e:WithinOneYear 2023-08-31 SC049122 e:ReportableOperatingSegment1 2023-09-01 2024-08-31 SC049122 e:ReportableOperatingSegment1 2022-09-01 2023-08-31 SC049122 f:UnitedKingdom 2023-09-01 2024-08-31 SC049122 f:UnitedKingdom 2022-09-01 2023-08-31 SC049122 f:RestWorldOutsideUK 2023-09-01 2024-08-31 SC049122 f:RestWorldOutsideUK 2022-09-01 2023-08-31 SC049122 e:UKTax 2023-09-01 2024-08-31 SC049122 e:UKTax 2022-09-01 2023-08-31 SC049122 e:ShareCapital 2024-08-31 SC049122 e:ShareCapital 2023-08-31 SC049122 e:CapitalRedemptionReserve 2023-09-01 2024-08-31 SC049122 e:OtherMiscellaneousReserve 2024-08-31 SC049122 e:OtherMiscellaneousReserve 2023-08-31 SC049122 e:RetainedEarningsAccumulatedLosses 2023-09-01 2024-08-31 SC049122 e:RetainedEarningsAccumulatedLosses 2024-08-31 SC049122 e:RetainedEarningsAccumulatedLosses 2022-09-01 2023-08-31 SC049122 e:RetainedEarningsAccumulatedLosses 2023-08-31 SC049122 e:RetainedEarningsAccumulatedLosses 2022-09-01 SC049122 e:AcceleratedTaxDepreciationDeferredTax 2024-08-31 SC049122 e:AcceleratedTaxDepreciationDeferredTax 2023-08-31 SC049122 e:TaxLossesCarry-forwardsDeferredTax 2024-08-31 SC049122 e:TaxLossesCarry-forwardsDeferredTax 2023-08-31 SC049122 d:OrdinaryShareClass1 2023-09-01 2024-08-31 SC049122 d:OrdinaryShareClass1 2024-08-31 SC049122 d:OrdinaryShareClass1 2023-08-31 SC049122 d:OrdinaryShareClass2 2023-09-01 2024-08-31 SC049122 d:OrdinaryShareClass2 2024-08-31 SC049122 d:OrdinaryShareClass2 2023-08-31 SC049122 d:OrdinaryShareClass3 2023-09-01 2024-08-31 SC049122 d:OrdinaryShareClass3 2024-08-31 SC049122 d:OrdinaryShareClass3 2023-08-31 SC049122 d:OrdinaryShareClass4 2023-09-01 2024-08-31 SC049122 d:OrdinaryShareClass4 2024-08-31 SC049122 d:OrdinaryShareClass4 2023-08-31 SC049122 d:FRS102 2023-09-01 2024-08-31 SC049122 d:Audited 2023-09-01 2024-08-31 SC049122 d:FullAccounts 2023-09-01 2024-08-31 SC049122 d:PrivateLimitedCompanyLtd 2023-09-01 2024-08-31 SC049122 2 2023-09-01 2024-08-31 SC049122 7 2023-09-01 2024-08-31 SC049122 g:PoundSterling 2023-09-01 2024-08-31 iso4217:GBP xbrli:shares xbrli:pure

Company Registration Number:  SC049122



















EWART ENGINEERING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
 31 AUGUST 2024


















img09fd.png

 
EWART ENGINEERING LIMITED
 

COMPANY INFORMATION


Directors
Mr B Ewart 
Mr C J Ewart 
Mrs A E Tinning 
Mrs K J Irving 




Registered number
SC049122



Registered office
Glasgow Road

Gretna

Dumfriesshire

DG16 5JN




Independent auditors
Armstrong Watson Audit Limited
Chartered Accountants & Statutory Auditors

James Watson House

Rosehill

Carlisle

Cumbria

CA1 2UU




Bankers
Royal Bank of Scotland
151 High Street

Dumfries

Dumfriesshire

DG1 2RA




Solicitors
Harper, Robertson & Shannon
100 High Street

Annan

Dumfriesshire

DG12 6EH





 
EWART ENGINEERING LIMITED
 

CONTENTS



Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Statement of income and retained earnings
9
Statement of financial position
10
Statement of cash flows
11
Analysis of net debt
12
Notes to the financial statements
13 - 24


 
EWART ENGINEERING LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024

Introduction
 
The directors present their Strategic Report for Ewart Engineering Limited for the year ended 31 August 2024.

Business review
 
Development and financial performance during the year
As reported in the company's profit and loss account, revenue has shown a decrease from £9.9m to £7.8m in the current year. Profit before tax has fallen from £0.4m to £0.07m primarily due to additional costs incurred combined with the decrease in revenue.
Financial position at the reporting date 
The balance sheet shows that the company's net assets at the year end have stayed fairly constant, increasing slightly from £5.27m to £5.27m. The company continues to hold cash and manage working capital without external finance.

Principal risks and uncertainties
 
The directors continually monitor the key risks facing the company, together with assessing the controls used for managing these risks.
The principal risks and uncertainties facing the company are as follows:
Economic downturn - the company acknowledges the importance of maintaining close relationships with its key customers in order to be able to identify the early stages of potential difficulties. Sales trends in its major markets are constantly reviewed to enable early action to be taken in the event of sales declining. Rising inflation and interest rates will undoubtedly cause some businesses to encounter financial difficulties and customer credit terms are being carefully monitored.
Competitor pressure - the market in which the company operates is considered to be highly competitive and, therefore, competitor pressure could result in losing sales to key competitors. The company manages this risk by providing quality products and maintaining strong relationships with its key customers.
Loss of key personnel - the directors seek to ensure that key personnel are appropriately remunerated to ensure that good performance is recognised.

Page 1

 
EWART ENGINEERING LIMITED
 

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

Financial key performance indicators
 
The directors use a range of financial performance measures to monitor and manage the business. The key performance indicators for the past three years ending 31 August are set out below and are rounded to the nearest thousandth pound.
    
  2024     2023    2022  
Turnover    7,828   9,950           11,309 
Gross profit    1,767   2,567   2,851
Profit before tax     7    400    712
Shareholder's Funds  5,267   5,262   5,245


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



................................................
Mr C J Ewart
Director

Date: 10 March 2025

Page 2

 
EWART ENGINEERING LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024

The directors present their report and the financial statements for the year ended 31 August 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 judgements and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and 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 £4,522 (2023 - £306,214).

No dividends (2023 - £288,382) were declared during the year.

Directors

The directors who served during the year were:

Mr B Ewart 
Mr C J Ewart 
Mrs A E Tinning 
Mrs K J Irving 

Page 3

 
EWART ENGINEERING LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024

Financial instruments

The company's principal financial instruments include bank balances, trade receivables and trade payables. The
principal risks in respect of these instruments are set out below.
Liquidity risk
The company manages its cash requirements to maximise interest income whilst ensuring that the company has
sufficient liquid resources to meet the operating needs of its business.
Credit risk
Investment of cash surpluses are made through banks and companies which must fulfil credit rating criteria
approved by the board. All customers who wish to trade on credit terms are subject to credit verification
procedures. Receivable balances are monitored on an on-going basis and provision is made for doubtful debts
where necessary.
Foreign currency risk
The company's principal foreign currency exposures arise from trading operations with overseas companies.
The directors ensure exposure to foreign currency risk is minimised by imposing strict payment terms on non-sterling invoices.

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 auditors are 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 auditors are aware of that information.

Auditors

The auditorsArmstrong Watson Audit Limitedwill 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.
 





................................................
Mr C J Ewart
Director

Date: 10 March 2025

Page 4

 
EWART ENGINEERING LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EWART ENGINEERING LIMITED
 

Opinion


We have audited the financial statements of Ewart Engineering Limited (the 'Company') for the year ended 31 August 2024, which comprise the Statement of income and retained earnings, the Statement of financial position, 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 August 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.


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.


Page 5

 
EWART ENGINEERING LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EWART ENGINEERING LIMITED (CONTINUED)


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

 
EWART ENGINEERING LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EWART ENGINEERING 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:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities,
including fraud and non-compliance with laws and regulations, was as follows:
• the engagement partner ensured that the engagement team collectively had the appropriate     competence, capabilities and skills to identify or recognise non-compliance with applicable laws and    regulations, such as the Health & Safety at Work Act, Factories Act 1961, Fire Precaution Act 1971,      Office, Shops and Railway Premises Act 1963 and Companies Act 2006. ; 
• we identified the laws and regulations applicable to the company through discussions with directors and    other management and from our commercial knowledge;
• we assessed the extent of compliance with the laws and regulations identified above through making    enquiries of management and inspecting legal correspondence; 
• we identified laws and regulations were communicated within the audit team regularly and the team    remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
• making enquiries of management as to where they considered there was susceptibility to fraud, their    knowledge of actual, suspected and alleged fraud;
• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and    regulations
To address the risk of fraud through management bias and override of controls, we:
• performed analytical procedures to identify any unusual or unexpected relationships;
• tested journal entries to identify unusual transactions;
• reviewed the application of accounting policies including stock overhead absorption
In response to the risk of irregularities and non-compliance with laws and regulations, we designed
procedures which included, but were not limited to:
• agreeing financial statement disclosures to underlying supporting documentation; and
• enquiring of management as to actual and potential litigation and claims;


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

 
EWART ENGINEERING LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EWART ENGINEERING 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.





Lauren Graham (Senior statutory auditor)
for and on behalf of
Armstrong Watson Audit Limited
Chartered Accountants & Statutory Auditors
Carlisle

17 March 2025
Page 8

 
EWART ENGINEERING LIMITED
 

STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 AUGUST 2024

2024
2023
Note
£
£

  

Turnover
 4 
7,828,442
9,950,141

Cost of sales
  
(6,061,135)
(7,382,959)

Gross profit
  
1,767,307
2,567,182

Administrative expenses
  
(1,807,382)
(2,189,878)

Operating (loss)/profit
 5 
(40,075)
377,304

Interest receivable and similar income
 9 
47,093
22,437

Profit before tax
  
7,018
399,741

Tax on profit
 10 
(2,496)
(93,527)

Profit after tax
  
4,522
306,214

  

  

Retained earnings at the beginning of the year
  
5,237,462
5,219,630

Profit for the year
  
4,522
306,214

Dividends declared and paid
  
-
(288,382)

Retained earnings at the end of the year
  
5,241,984
5,237,462
The notes on pages 13 to 24 form part of these financial statements.

Page 9

 
EWART ENGINEERING LIMITED
REGISTERED NUMBER: SC049122

STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
2,565,251
2,574,939

  
2,565,251
2,574,939

Current assets
  

Stocks
 13 
488,650
500,546

Debtors: amounts falling due within one year
 14 
1,211,298
1,457,886

Cash at bank and in hand
 15 
2,110,078
2,568,212

  
3,810,026
4,526,644

Creditors: amounts falling due within one year
 16 
(795,037)
(1,509,084)

Net current assets
  
 
 
3,014,989
 
 
3,017,560

Total assets less current liabilities
  
5,580,240
5,592,499

Provisions for liabilities
  

Deferred tax
 17 
(313,256)
(330,037)

  
 
 
(313,256)
 
 
(330,037)

Net assets
  
5,266,984
5,262,462


Capital and reserves
  

Called up share capital 
 18 
15,000
15,000

Other reserves
 19 
10,000
10,000

Profit and loss account
 19 
5,241,984
5,237,462

  
5,266,984
5,262,462


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




................................................
Mr C J Ewart
................................................
Mr B Ewart
Director
Director


Date: 10 March 2025

The notes on pages 13 to 24 form part of these financial statements.

Page 10

 
EWART ENGINEERING LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
4,522
306,214

Adjustments for:

Depreciation of tangible assets
193,982
188,154

Loss on disposal of tangible assets
-
48,953

Interest received
(47,093)
(22,437)

Taxation charge
2,496
93,527

Decrease in stocks
11,896
176,122

Decrease/(increase) in debtors
246,587
(142,707)

(Decrease) in creditors
(464,120)
(334,197)

Corporation tax (paid)
(73,267)
(155,283)

Net cash generated from operating activities

(124,997)
158,346


Cash flows from investing activities

Purchase of tangible fixed assets
(184,294)
(332,012)

Sale of tangible fixed assets
-
30,078

Interest received
47,093
22,437

Net cash from investing activities

(137,201)
(279,497)

Cash flows from financing activities

Dividends paid
-
(288,382)

Net cash used in financing activities
-
(288,382)

Net (decrease) in cash and cash equivalents
(262,198)
(409,533)

Cash and cash equivalents at beginning of year
2,202,997
2,612,530

Cash and cash equivalents at the end of year
1,940,799
2,202,997


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,110,078
2,568,212

Bank overdrafts
(169,279)
(365,215)

1,940,799
2,202,997


The notes on pages 13 to 24 form part of these financial statements.

Page 11

 
EWART ENGINEERING LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 AUGUST 2024




At 1 September 2023
Cash flows
At 31 August 2024
£

£

£

Cash at bank and in hand

2,568,212

(458,134)

2,110,078

Bank overdrafts

(365,215)

195,936

(169,279)

Debt due within 1 year

(118,951)

118,951

-


2,084,046
(143,247)
1,940,799

The notes on pages 13 to 24 form part of these financial statements.

Page 12

 
EWART ENGINEERING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

1.


General information

Ewart Engineering Limited is a private company limited by shares incorporated in Scotland. The address of its registered office and principal place of business is Glasgow Road, Gretna, Dumfriesshire, DG16 5JN.

The functional and presentational currency is Pounds Sterling.

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

Going concern

At the end of the year the company had net current assets of £3.02m and net assets of £5.27m, following a profit of £6.8k in the year.
The directors have considered the position of the company, its cash reserves and forecasts of future performance and cash flows, and have concluded that the going concern basis of accounting is appropriate.
The company has significant cash reserves and forecasts that future cash generation will remain positive. The performance of the business after the year end has been such that the directors do not believe that there is a material uncertainty in relation to the ability of the company to continue as a going concern.

 
2.3

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.

Revenue from the sale of manufactured goods is generally recognised on dispatch to the customer.

Page 13

 
EWART ENGINEERING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Interest income

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

 
2.6

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
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 Statement of financial position. 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 reporting 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 reporting 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 reporting date.

Page 14

 
EWART ENGINEERING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
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.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

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

Depreciation is provided on the following basis:

Freehold property
-
2%
straight line
Plant and machinery
-
10%
reducing balance
Motor vehicles
-
20%
reducing balance
Fixtures and fittings
-
10%
reducing balance

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

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 reporting 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.

 
2.11

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.

 
2.12

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 15

 
EWART ENGINEERING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.13

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.

 
2.14

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the reporting date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the reporting date.

 
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 only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors. 

 
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 16

 
EWART ENGINEERING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of these financial statements require management to make judgements, estimates and assumptions that affect the application of policies and the reported of assets and liabilities, income and expenses.
Judgements and estimates are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:
(a) Establishing useful economic lives for depreciation purposes of property, plant and equipment 
Long-lived assets, consisting primarily of property, plant and equipment, comprise a significant proportion of total fixed assets. The annual depreciation charge depends primarily on the estimated useful economic lives and is changed as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset useful lives can have a significant impact on depreciation charges for the period. Details of the depreciation policies based on estimated useful economic lives are included in the relevant accounting policy note in these financial statements.
(b) Providing for doubtful debts 
The company establishes a provision for receivables that are not estimated to be recoverable. When assessing recoverability the directors consider factors such as the ageing of receivables, past experience of recoverability, and the credit profile of individual groups of customers.
(c) Overhead absorption 
The company absorbs costs into stock at the year end based on the total relevant costs incurred in the year divided by the number of labour hours undertaken in the year. This rate is then applied to labour hours spent on WIP in stock at the year end. 


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Manufacturing
7,828,442
9,950,141


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
7,779,999
9,904,729

Rest of the world
48,443
45,412

7,828,442
9,950,141


Page 17

 
EWART ENGINEERING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

5.


Operating (loss)/profit

The operating (loss)/profit is stated after charging:

2024
2023
£
£

Loss/(profit) on disposal of tangible fixed assets
-
48,953

Depreciation of tangible fixed assets
194,114
191,664

194,114
240,617


6.


Auditors' remuneration

2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
14,310
13,250

7.


Employees

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


2024
2023
£
£

Wages and salaries
2,781,428
2,895,462

Social security costs
273,992
282,986

Cost of defined contribution scheme
85,438
91,668

3,140,858
3,270,116


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


        2024
        2023
            No.
            No.







Production staff
73
77



Administrative staff
7
7

80
84

Page 18

 
EWART ENGINEERING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
465,253
463,822

Company contributions to defined contribution pension schemes
3,063
1,853

468,316
465,675


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

The highest paid director received remuneration of £154,413 (2023 - £169,501).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2023 - £NIL).


9.


Interest receivable

2024
2023
£
£


Other interest receivable
47,093
22,437


10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
19,277
72,315

Adjustments in respect of previous periods
-
10,523


19,277
82,838


Total current tax
19,277
82,838

Deferred tax


Origination and reversal of timing differences
(16,781)
10,689

Total deferred tax
(16,781)
10,689


Taxation on profit on ordinary activities
2,496
93,527
Page 19

 
EWART ENGINEERING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
 
10.Taxation (continued)


Factors affecting tax charge for the year

The standard rate of corporation tax was 19% to 31 March 2023 and has risen to 25% from 1 April 2023.  The average rate for this accounting period is 21.52%.
The tax assessed for the year is higher than
 (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 21.52%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
7,018
399,741


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 21.52%)
1,755
86,005

Effects of:


Fixed asset differences
3,858
1,258

Expenses not deductible for tax purposes
728
3,503

Marginal relief
(2,447)
-

Adjustments to tax charge in respect of prior periods
-
10,522

Remeasurement of deferred tax for changes in tax rates
-
2,816

Movement in deferred tax not recognised
(1,398)
(9,514)

Underprovision of current years tax charge
-
(1,063)

Total tax charge for the year
2,496
93,527

Page 20

 
EWART ENGINEERING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
 
10.Taxation (continued)


Factors that may affect future tax charges

There are no factors that may affect future tax charges.


11.


Dividends

2024
2023
£
£


Ordinary A
-
84,101


Ordinary B
-
90,930


Ordinary C
-
85,761


Ordinary D
-
27,590

-
288,382


12.


Tangible fixed assets





Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 1 September 2023
1,364,867
6,851,647
288,481
242,373
8,747,368


Additions
95,326
84,595
4,373
-
184,294



At 31 August 2024

1,460,193
6,936,242
292,854
242,373
8,931,662



Depreciation


At 1 September 2023
410,457
5,440,751
178,021
143,200
6,172,429


Charge for the year on owned assets
15,432
140,500
28,085
9,965
193,982



At 31 August 2024

425,889
5,581,251
206,106
153,165
6,366,411



Net book value



At 31 August 2024
1,034,304
1,354,991
86,748
89,208
2,565,251



At 31 August 2023
954,410
1,410,896
110,460
99,173
2,574,939

Page 21

 
EWART ENGINEERING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

13.


Stocks

2024
2023
£
£

Raw materials and consumables
206,265
190,560

Work in progress and finished goods
282,385
309,986

488,650
500,546



14.


Debtors

2024
2023
£
£


Trade debtors
1,025,278
1,451,400

Prepayments and accrued income
186,020
6,486

1,211,298
1,457,886



15.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
2,110,078
2,568,212

Less: bank overdrafts
(169,279)
(365,215)

1,940,799
2,202,997



16.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank overdrafts
169,279
365,215

Trade creditors
378,342
444,221

Corporation tax
18,325
72,315

Other taxation and social security
193,167
453,925

Other creditors
15,324
138,679

Accruals and deferred income
20,600
34,729

795,037
1,509,084


Page 22

 
EWART ENGINEERING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

17.


Deferred taxation




2024
2023


£

£






At beginning of year
(330,037)
(319,348)


Charged to profit or loss
16,781
(10,689)



At end of year
(313,256)
(330,037)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(316,301)
(334,201)

Other timing differences
3,045
4,164

(313,256)
(330,037)


18.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



5,250 (2023 - 5,250) Ordinary A shares of £1.00 each
5,250
5,250
5,250 (2023 - 5,250) Ordinary B shares of £1.00 each
5,250
5,250
2,250 (2023 - 2,250) Ordinary C shares of £1.00 each
2,250
2,250
2,250 (2023 - 2,250) Ordinary D shares of £1.00 each
2,250
2,250

15,000

15,000

The company has four classes of Ordinary shares which carry voting rights but no right to fixed income. The shares rank pari passu with the exception of dividend rights which can be varied between each class. 



19.


Reserves

Capital redemption reserve

This reserve represents the amounts recognised upon company purchase of own shares.

Profit and loss account

This reserve represents cumulative profits and losses, net of distributions.

Page 23

 
EWART ENGINEERING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

20.


Capital commitments


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

2024
2023
£
£


Contracted for but not provided in these financial statements
1,108,000
-

1,108,000
-


21.


Pension commitments

The company operates a defined contribution scheme in respect of the directors and a Group Personal Pension Scheme in respect of other employees. The pension cost charge represents contributions payable by the company to these funds amounted to £85,438 (2023 - £91,668). Accrued contributions of £12,180 (2023 – £16,657).


22.


Related party transactions

Dividends totalling £Nil (2023 - £288,382) were paid to the directors in the year. 

During the year, 14 (2023 - 18) family employees, that were not directors, were remunerated a total of £522,969 (2023 - £532,951)  
Remuneration of key management personnel
Key management personnel comprise of the directors. Their aggregate remuneration is disclosed in note 9 to the financial statements.


Page 24