Period from 1 November 2023 to
Registration number:
Nicol & Andrew Limited
Balance Sheet
31 March 2024
Note |
31 March |
(As restated) |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Provisions for liabilities |
- |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Profit and loss account |
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Shareholders' funds |
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These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
......................................... |
Company Registration Number: 02307060
Nicol & Andrew Limited
Notes to the Financial Statements
Period from 1 November 2023 to 31 March 2024
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
England
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Nicol & Andrew Limited
Notes to the Financial Statements
Period from 1 November 2023 to 31 March 2024
Going concern
The directors have considered the suitability of preparing the Accounts on a going concern basis and acknowledges that there is significant doubt on the company's ability to continue as a going concern. The directors have concluded that while there are material uncertainties around the future trading performance of its On-Site Machining division, they are satisfied that the company will be able to meet its financial obligations as they fall due for at least the next 12 months.
In arriving at this conclusion, the directors have considered the following:
1. The On-Site Machining division made a significant loss in the year, which even with a profitable hydraulics division created a loss in the period to 31 March 2024 of £622,586.
2. A significant drop in sales in the On-Site division over the last year. Though if sales and order opportunities are followed through, this will turnaround the performance of this division to also be profitable and cash generative.
3. The opportunity to restructure operations to reduce costs and lower the break-even point for the On-Site Machining division.
4. While forecasts have not been updated for the next 12 months, due to current uncertainties over the order book for On-Site Machining the business has been significantly profitable in the recent past and the directors are confident that they can return to previously seen operations, through a significant marketing campaign as well as the development of framework agreements with a very large customer.
5. Recently cash balances have reduced significantly but are expected to recover once the On-Site Machining divisions order book recovers and operational cost improvements have been implemented.
6. The ultimate parent company, Leviathan Engineering Limited, has provided significant financial support to the group. Cash has been received from the parent to support the group since year end.
7. The covenants on the group loan that is used to help fund Nicol and Andrew Limited were breached in the year. But the group's main external funder has indicated that subject to the group’s financial performance and liquidity levels being in line with their forecasts they will not withdraw the current funding or amend the loan structure provided to the group due to the breaches in the loan covenants at the year end, and after the year end, for the foreseeable future (i.e. 12 months from the date the audit report of Leviathan Newco 3 Limited is signed for the year ended 31 March 2024).
Nicol & Andrew Limited
Notes to the Financial Statements
Period from 1 November 2023 to 31 March 2024
Prior period errors
In the prior period there was an incorrect corporation tax creditor
Prior period disclosed in these financial statements | Prior period disclosed in previous financial statements | |
Corporation tax creditor | - | 59,929 |
Profit and loss reserve | 1,375,326 | 1,315,397 |
Key sources of estimation uncertainty
In the application of the company's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate where the revision affects only that period, or in the period of the revision and future periods where the revision reflects both current and future periods.
Determining whether there are indicators of impairment of the company's tangible assets. Tangible fixed assets are depreciated over their useful life taking into account residual values, where appropriate. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset. The carrying amount is £68,629 (2023: £254,318).
Determining whether stock is held at the correct value by ensuring it is stated at the lower of cost or net realisable value, the estimate being the selling price less costs to complete and sell. Stock is assessed for impairment and potential provision is estimated. Management undertake regular stocktakes and review the ageing and selling profile of the stock. The carrying amount is £78,076 (2023: £43,387).
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services to external customers in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company. Turnover is recognised when the goods or services have been delivered to the customer.
Tax
Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation 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 taxable income.
Nicol & Andrew Limited
Notes to the Financial Statements
Period from 1 November 2023 to 31 March 2024
Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Furniture, fittings and equipment |
15% Reducing balance |
Motor vehicles |
15% Reducing balance |
Plant and Machinery |
15% Reducing balance |
Intangible assets
Intangible assets are measured at cost less accumulative amortisation and any accumulative impairment losses.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
Work in progress is recognised on the basis on the value of work completed to date, including a profit element.
Nicol & Andrew Limited
Notes to the Financial Statements
Period from 1 November 2023 to 31 March 2024
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Nicol & Andrew Limited
Notes to the Financial Statements
Period from 1 November 2023 to 31 March 2024
Financial instruments
Classification
• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.
All financial instruments are classified as basic.
Recognition and measurement
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.
Staff numbers |
The average number of persons employed by the company (including directors) during the period, was
Nicol & Andrew Limited
Notes to the Financial Statements
Period from 1 November 2023 to 31 March 2024
Tangible assets |
Furniture, fittings and equipment |
Motor vehicles |
Plant and machinery |
Total |
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Cost or valuation |
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At 1 November 2023 |
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Additions |
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- |
- |
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Disposals |
( |
( |
( |
( |
At 31 March 2024 |
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Depreciation |
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At 1 November 2023 |
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Charge for the period |
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Eliminated on disposal |
( |
( |
( |
( |
At 31 March 2024 |
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Carrying amount |
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At 31 March 2024 |
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At 31 October 2023 |
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Stocks |
31 March |
31 October |
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Work in progress |
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- |
Other inventories |
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Nicol & Andrew Limited
Notes to the Financial Statements
Period from 1 November 2023 to 31 March 2024
Debtors |
31 March |
(As restated) |
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Trade debtors |
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Amounts owed by group undertakings |
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Prepayments |
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Other debtors |
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Creditors |
Creditors: amounts falling due within one year
31 March |
31 October |
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Due within one year |
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Trade creditors |
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Amounts owed to group undertakings |
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Taxation and social security |
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Other creditors |
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Accruals and deferred income |
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Share capital |
Allotted, called up and fully paid shares
31 March |
31 October |
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No. |
£ |
No. |
£ |
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83,334 |
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83,334 |
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9,259 |
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9,259 |
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Nicol & Andrew Limited
Notes to the Financial Statements
Period from 1 November 2023 to 31 March 2024
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
31 March |
31 October |
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Not later than one year |
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Later than one year and not later than five years |
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The amount of non-cancellable operating lease payments recognised as an expense during the period was £
Related party transactions |
The company has taken advantage of the exemption in FRS 102 "Related Party Disclosures" from disclosing transactions with other wholly owned members of the group.
Nicol & Andrew Limited
Notes to the Financial Statements
Period from 1 November 2023 to 31 March 2024
Audit report |
In addition to this, we were also unable to obtain sufficient appropriate evidence concerning the existence of fixed assets at 31 October 2023, and therefore whether they were disposed of during the current period or an earlier one. As a result we were unable to determine whether any adjustment to the 31 October 2023 fixed asset balance was necessary or whether there was any consequential effect on the disposal or depreciation figures for the period ended 31 March 2024.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.
We draw attention to Note 2 in the financial statements, which indicates that the company incurred a net loss of £622,586 during the period ended 31 March 2024 in addition to breaching the covenants on the group loan that is used to help fund Nicol and Andrew Limited. As stated in Note 2, these events or conditions, along with other matters as set forth in Note 2, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern.
Our opinion is not modified in respect of this matter.
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. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Parent and ultimate parent undertaking |
The company's immediate parent is
The ultimate parent is
Nicol & Andrew Limited
Notes to the Financial Statements
Period from 1 November 2023 to 31 March 2024
Relationship between entity and parents
The parent of the smallest group in which these financial statements are consolidated is
The address of Leviathan Newco 3 Limited is: