Company registration number 01929615 (England and Wales)
HARRY DALBY ENGINEERING LIMITED
ANNUAL REPORT AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2024
HARRY DALBY ENGINEERING LIMITED
COMPANY INFORMATION
Directors
U K Dalby
R N Lowe
A J Rollings
R B Dalby
R N Dalby
D P Carr
J H Foot
(Appointed 2 December 2024)
Secretary
D P Carr
Company number
01929615
Registered office
205 Gloucester Crescent
Wigston
Leicester
LE18 4YQ
Auditor
Newby Castleman LLP
West Walk Building
110 Regent Road
Leicester
LE1 7LT
Business address
205 Gloucester Crescent
Wigston
Leicester
LE18 4YQ
Bankers
Handelsbanken
St John's House
30 East Street
Leicester
LE1 6NB
HARRY DALBY ENGINEERING LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8
Statement of cash flows
9
Notes to the financial statements
10 - 21
HARRY DALBY ENGINEERING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Review of the business

The principal activities of the company continue to be that of design, manufacture and maintenance of paint finishing plants, vertical platform lifts and general subcontract sheet metal manufacture.

 

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and relatively non-complex nature of the company and is written in the context of the risks and uncertainties we face.

 

We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company, being turnover, gross margin percentage, operating profit and return on capital employed.

 

Sales decreased by 17% from £10.9m to £9.0m. The operating loss this year was (£558,731) with a gross margin percentage of 29.6% compared with an operating profit of £516,603 and 33.1% for the previous year.

 

Return on capital employed has been (21)% compared with 25% for the previous year. Return on capital employed is calculated as profit before interest and tax divided by capital employed, which constitutes total assets less current liabilities, less investments, less cash, plus overdrafts and other short term borrowings.

 

The principal risks and uncertainties affecting the company are continually monitored by the directors, who seek to mitigate any such risks. As for many manufacturers of our size, the business environment in which we operate continues to be challenging and highly competitive. The company responds to this risk by continually extending the product range, improving operational effectiveness, providing a strong brand identity and investing in the future of the business. As the result of sales initiatives and product developments, we are pleased to report having a strong order book.

 

Impact of inflation rates

The high inflationary rates are being offset both in reviewing the materials and processes used in manufacturing products, as well as other cost reduction schemes before passing any cost increases to customers. The directors are confident that the company will remain competitive on prices. High energy prices are somewhat offset due contract end dates. The company also generations a considerable percentage of energy used.

On behalf of the board

R B Dalby
Director
22 January 2025
HARRY DALBY ENGINEERING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

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

Results and dividends

The results for the year are set out on page 7.

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

Directors

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

U K Dalby
R N Lowe
A J Rollings
R B Dalby
R N Dalby
D P Carr
J H Foot
(Appointed 2 December 2024)
Research and development

Continued research and development is entered into by the company to ensure that innovative and new products are available to the market.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

HARRY DALBY ENGINEERING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
On behalf of the board
R B Dalby
Director
22 January 2025
HARRY DALBY ENGINEERING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HARRY DALBY ENGINEERING LIMITED
- 4 -
Opinion

We have audited the financial statements of Harry Dalby Engineering 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 notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.true

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

HARRY DALBY ENGINEERING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HARRY DALBY ENGINEERING LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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.

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

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. However, responsibility for the prevention and detection of fraud ultimately rests with both those charged with governance and management of the company.

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

HARRY DALBY ENGINEERING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HARRY DALBY ENGINEERING LIMITED
- 6 -

 

Audit response to risks identified

Our procedures to respond to risks identified included the following:

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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

John Griffin FCCA (Senior Statutory Auditor)
For and on behalf of Newby Castleman LLP
22 January 2025
Chartered Accountants
Statutory Auditor
West Walk Building
110 Regent Road
Leicester
LE1 7LT
HARRY DALBY ENGINEERING LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
9,001,495
10,872,447
Cost of sales
(6,336,860)
(7,269,041)
Gross profit
2,664,635
3,603,406
Distribution costs
(1,639,095)
(1,566,921)
Administrative expenses
(1,594,543)
(1,519,882)
Other operating income
10,272
-
0
Operating (loss)/profit
4
(558,731)
516,603
Interest receivable and similar income
7
-
0
69
Interest payable and similar expenses
8
(28,354)
(8,261)
(Loss)/profit before taxation
(587,085)
508,411
Taxation
10
49,627
(38,871)
(Loss)/profit for the financial year
(537,458)
469,540
Retained earnings at 1 April 2023
2,875,065
2,905,525
Dividends
9
-
0
(500,000)
Retained earnings at 31 March 2024
2,337,607
2,875,065

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

HARRY DALBY ENGINEERING LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
3,138,972
2,364,503
Current assets
Stocks
12
933,117
944,516
Debtors
13
1,857,344
1,981,338
Cash at bank and in hand
1,189,500
2,419,979
3,979,961
5,345,833
Creditors: amounts falling due within one year
14
(3,268,086)
(3,220,130)
Net current assets
711,875
2,125,703
Total assets less current liabilities
3,850,847
4,490,206
Creditors: amounts falling due after more than one year
15
(366,109)
(418,383)
Provisions for liabilities
Deferred tax liability
18
-
0
49,627
-
0
(49,627)
Net assets
3,484,738
4,022,196
Capital and reserves
Called up share capital
20
135,000
135,000
Revaluation reserve
21
997,131
997,131
Capital redemption reserve
22
15,000
15,000
Profit and loss reserves
23
2,337,607
2,875,065
Total equity
3,484,738
4,022,196

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 22 January 2025 and are signed on its behalf by:
R B Dalby
Director
Company registration number 01929615 (England and Wales)
HARRY DALBY ENGINEERING LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
27
(194,066)
915,552
Interest paid
(28,354)
(8,261)
Income taxes refunded
-
0
12,626
Net cash (outflow)/inflow from operating activities
(222,420)
919,917
Investing activities
Purchase of tangible fixed assets
(884,934)
(181,379)
Proceeds from disposal of tangible fixed assets
3,400
7,400
Interest received
-
0
69
Net cash used in investing activities
(881,534)
(173,910)
Financing activities
Payment of finance leases obligations
(126,525)
(57,480)
Dividends paid
-
0
(500,000)
Net cash used in financing activities
(126,525)
(557,480)
Net (decrease)/increase in cash and cash equivalents
(1,230,479)
188,527
Cash and cash equivalents at beginning of year
2,419,979
2,231,452
Cash and cash equivalents at end of year
1,189,500
2,419,979
HARRY DALBY ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
1
Accounting policies
Company information

Harry Dalby Engineering Limited is a private company limited by shares incorporated in England and Wales. The registered office is 205 Gloucester Crescent, Wigston, Leicester, LE18 4YQ.

1.1
Basis of preparation

These financial statements have been prepared in accordance with applicable accounting standards including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties (in accordance with FRS 102). The principal accounting policies adopted are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

1.2
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services supplied, net of VAT and trade discounts.

 

Turnover from the sale of goods is recognised on the date of despatch as this is the point at which the significant risks and rewards of ownership of the goods are transferred to the customer.

 

Turnover from construction contracts is recognised by reference to the stage of completion of the contract activity at the end of the reporting period when the stage of completion, costs incurred and costs to complete can be estimated reliably. The “percentage of completion method” is used to determine the appropriate amount of revenue to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs.

 

Turnover from maintenance services is recognised on the date that such services are provided.

1.4
Tangible fixed assets

Tangible fixed assets are 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:

Freehold buildings
No depreciation
Leasehold alterations
5% per annum of cost
Plant and machinery
14.3% per annum of cost
Fixtures, fittings and computer equipment
10% - 33% per annum of cost
Motor vehicles
25% per annum of cost
Assets under construction
No depreciation
No depreciation is provided in respect of freehold land.
HARRY DALBY ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 11 -

The estimated residual value of freehold buildings is such that their depreciable amount is insignificant. Accordingly, no depreciation is charged on freehold buildings.

 

The company has adopted the transition exemption under FRS 102 paragraph 35.10(c) and has elected to measure the freehold property held at the date of transition to FRS 102 at its fair value and use that fair value as the deemed cost for this property.

1.5
Stocks

Stocks and work in progress are stated at the lower of cost and estimated selling price. Cost comprises the direct material costs and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

1.6
Financial instruments

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Debtors and creditors with no stated interest rate and receivable or payable within one year are measured at transaction price. Any losses arising from impairment are recognised in the profit and loss account.

1.7
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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

 

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

1.8
Employee benefits

When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are recognised.

1.9
Retirement benefits

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

HARRY DALBY ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
1.10
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.

1.11
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.

1.12

Research and development

Research and development expenditure is written off to the profit and loss account in the year in which it is incurred.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Construction contracts

As explained in note 1.3, where the outcome of construction contracts can be estimated reliably, contract revenues and costs are recognised on a contract by contract basis using the percentage of completion method. The application of this accounting policy requires both the total costs and the stage of completion of contracts to be assessed. An inherent degree of judgement will exist in determining the stage of completion of a contract at the end of the reporting period.

HARRY DALBY ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover
Goods
7,230,383
9,433,245
Services
1,771,112
1,439,202
9,001,495
10,872,447
Other revenue
Interest income
-
0
69
Grants received
10,272
-
0
Turnover analysed by geographical market
2024
2023
£
£
United Kingdom
9,001,495
10,872,447

Included in turnover is revenue of £4,727,554 (2023 - £5,881,457) arising on construction contracts in the year.

4
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Government grants
(10,272)
-
0
Fees payable to the company's auditor for the audit of the company's financial statements
10,531
13,231
Depreciation of owned tangible fixed assets
94,892
101,454
Depreciation of tangible fixed assets held under finance leases
107,291
51,134
Profit on disposal of tangible fixed assets
(3,400)
(7,400)
HARRY DALBY ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
5
Employees

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

2024
2023
Number
Number
Management and administration
29
30
Production
56
77
Sales and service
22
6
Total
107
113

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,623,528
3,673,640
Social security costs
407,410
410,329
Pension costs
93,533
82,875
4,124,471
4,166,844
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
234,194
306,604
Company pension contributions to defined contribution schemes
15,684
12,641
249,878
319,245

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
127,467
153,031
Company pension contributions to defined contribution schemes
13,191
10,277
HARRY DALBY ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
-
0
69
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
-
0
69
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on finance leases
21,631
8,150
Other costs:
Other interest
6,723
111
28,354
8,261
9
Dividends
2024
2023
£
£
Interim paid
-
0
500,000
10
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
(49,627)
38,871

From 1 April 2023, the UK corporation tax rate increased from 19% to 25%.

HARRY DALBY ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Taxation
(Continued)
- 16 -

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
(Loss)/profit before taxation
(587,085)
508,411
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(146,771)
96,598
Depreciation on assets not qualifying for tax allowances
1,399
1,063
Research and development tax credit
-
0
(35,815)
Deferred tax adjustments in respect of prior years
100,697
-
0
Super-deduction relief
-
0
(32,304)
Change in deferred tax rate
(4,952)
9,329
Taxation (credit)/charge for the year
(49,627)
38,871
11
Tangible fixed assets
Freehold buildings
Leasehold alterations
Assets under construction
Plant and machinery
Fixtures, fittings and computer equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost or valuation
At 1 April 2023
1,370,000
125,994
-
0
2,151,799
492,298
488,493
4,628,584
Additions
-
0
-
0
835,653
-
0
65,101
75,898
976,652
Disposals
-
0
-
0
-
0
-
0
-
0
(53,835)
(53,835)
At 31 March 2024
1,370,000
125,994
835,653
2,151,799
557,399
510,556
5,551,401
Depreciation and impairment
At 1 April 2023
-
0
51,426
-
0
1,471,457
448,405
292,793
2,264,081
Depreciation charged in the year
-
0
6,299
-
0
107,441
16,967
71,476
202,183
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
-
0
(53,835)
(53,835)
At 31 March 2024
-
0
57,725
-
0
1,578,898
465,372
310,434
2,412,429
Carrying amount
At 31 March 2024
1,370,000
68,269
835,653
572,901
92,027
200,122
3,138,972
At 31 March 2023
1,370,000
74,568
-
0
680,342
43,893
195,700
2,364,503
HARRY DALBY ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
11
Tangible fixed assets
(Continued)
- 17 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases.

2024
2023
£
£
Motor vehicles
538,569
570,744

The company has adopted the transition exemption under FRS 102 paragraph 35.10(c) and has elected to measure the freehold property held at the date of transition to FRS 102 at its fair value and use that fair value as the deemed cost for this property.

 

The freehold property was last revalued in 2015 on the basis of existing use value by independent qualified valuers. The resulting revaluation adjustments were taken to the revaluation reserve.

The freehold property has been pledged as security for the bank borrowings of the parent undertaking, further details of which are disclosed in note 24.

If revalued assets were stated on a historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

2024
2023
£
£
Cost
613,762
613,762
Accumulated depreciation
(240,894)
(240,894)
Carrying value
372,868
372,868
12
Stocks
2024
2023
£
£
Raw materials and consumables
371,279
356,441
Work in progress
204,095
235,816
Finished goods and goods for resale
357,743
352,259
933,117
944,516
HARRY DALBY ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,788,752
1,886,212
Amount due from parent undertaking
230
115
Amounts due from fellow group undertakings
491
12,590
Prepayments and accrued income
67,871
82,421
1,857,344
1,981,338
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
16
115,316
97,849
Payments received on account
709,770
1,534,597
Trade creditors
1,512,812
735,520
Amounts due to fellow subsidiaries
7,943
-
0
Other taxation and social security
458,473
223,426
Other creditors
9,294
5,880
Accruals and deferred income
454,478
622,858
3,268,086
3,220,130

The aggregate amount of creditors for which security has been given amounts to £481,425 (2023: £516,232). Finance leases are secured on the assets to which they relate.

15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
16
366,109
418,383
16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
115,316
97,849
In two to five years
320,885
305,307
In over five years
45,224
113,076
481,425
516,232

Finance leases relate to motor vehicles and plant and machinery.

HARRY DALBY ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
17
Provisions for liabilities
Notes
2024
2023
£
£
Deferred tax liabilities
18
-
0
49,627
-
0
49,627
18
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
363,863
166,483
Tax losses
(354,486)
(112,428)
Other differences
(9,377)
(4,428)
-
0
49,627
2024
Movements in the year:
£
Liability at 1 April 2023
49,627
Credit to profit or loss
(49,627)
Liability at 31 March 2024
-
0
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
93,533
82,875

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

HARRY DALBY ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
20
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
135,000 Ordinary shares of £1 each
135,000
135,000

There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.

21
Revaluation reserve

The revaluation reserve comprises a revaluation surplus for the freehold property offset by the related deferred tax liability.

22
Capital redemption reserve

The capital redemption reserve represents the purchase of own shares by the company.

23
Profit and loss reserves

The profit and loss reserve comprises retained profits and losses for the current and prior periods.

24
Financial commitments, guarantees and contingent liabilities

Under the terms of interlocking guarantees, Dalby Holdings Limited, Harry Dalby Engineering Limited, Regent Engineers Limited and Phoenix Aluminium Limited jointly and severally undertook to satisfy on demand all sums owing to finance providers by the other parties to the agreements. At 31 March 2024 the net amount owing to these finance providers by the other group undertakings was £1,905,116 (2023 - £1,087,481).

25
Related party transactions
Transactions with related parties

The company has taken advantage of the exemption offered by FRS 102 from the requirement to disclose transactions with other group companies that are wholly owned.true

26
Ultimate controlling party

The parent undertaking for which consolidated accounts are prepared is Dalby Holdings Limited, a company registered in England and Wales. Consolidated accounts are publicly available from Companies House, Cardiff.

 

The registered address of Dalby Holdings Limited is the same as the company's registered office address as given in the company information page of these financial statements.

HARRY DALBY ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
27
Cash (absorbed by)/generated from operations
2024
2023
£
£
(Loss)/profit for the year after tax
(537,458)
469,540
Adjustments for:
Taxation (credited)/charged
(49,627)
38,871
Finance costs
28,354
8,261
Investment income
-
0
(69)
Gain on disposal of tangible fixed assets
(3,400)
(7,400)
Depreciation and impairment of tangible fixed assets
202,183
152,588
Movements in working capital:
Decrease/(increase) in stocks
11,399
(194,883)
Decrease in debtors
123,994
181,595
Increase in creditors
30,489
267,049
Cash (absorbed by)/generated from operations
(194,066)
915,552
28
Analysis of changes in net funds
1 April 2023
Cash flows
New finance leases
31 March 2024
£
£
£
£
Cash at bank and in hand
2,419,979
(1,230,479)
-
1,189,500
Obligations under finance leases
(516,232)
126,525
(91,718)
(481,425)
1,903,747
(1,103,954)
(91,718)
708,075
2024-03-312023-04-01falsefalseCCH SoftwareCCH Accounts Production 2024.301No description of principal activityU K DalbyR N LoweA J RollingsR B DalbyR N DalbyJ H FootJ H FootD P Carr019296152023-04-012024-03-3101929615bus:Director12023-04-012024-03-3101929615bus:Director22023-04-012024-03-3101929615bus:Director32023-04-012024-03-3101929615bus:Director42023-04-012024-03-3101929615bus:Director52023-04-012024-03-3101929615bus:CompanySecretaryDirector12023-04-012024-03-3101929615bus:Director62023-04-012024-03-3101929615bus:CompanySecretary12023-04-012024-03-3101929615bus:Director72023-04-012024-03-3101929615bus:RegisteredOffice2023-04-012024-03-3101929615bus:Agent12023-04-012024-03-31019296152024-03-31019296152022-04-012023-03-3101929615countries:UnitedKingdom2023-04-012024-03-3101929615countries:UnitedKingdom2022-04-012023-03-3101929615core:RetainedEarningsAccumulatedLosses2023-03-3101929615core:RetainedEarningsAccumulatedLosses2022-03-3101929615core:RetainedEarningsAccumulatedLosses2024-03-3101929615core:RetainedEarningsAccumulatedLosses2023-03-3101929615core:ShareCapital2024-03-3101929615core:ShareCapital2023-03-3101929615core:RevaluationReserve2024-03-3101929615core:RevaluationReserve2023-03-3101929615core:CapitalRedemptionReserve2024-03-3101929615core:CapitalRedemptionReserve2023-03-31019296152023-03-3101929615core:LandBuildingscore:OwnedOrFreeholdAssets2024-03-3101929615core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-03-3101929615core:ConstructionInProgressAssetsUnderConstruction2024-03-3101929615core:PlantMachinery2024-03-3101929615core:FurnitureFittings2024-03-3101929615core:MotorVehicles2024-03-3101929615core:LandBuildingscore:OwnedOrFreeholdAssets2023-03-3101929615core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-03-3101929615core:ConstructionInProgressAssetsUnderConstruction2023-03-3101929615core:PlantMachinery2023-03-3101929615core:FurnitureFittings2023-03-3101929615core:MotorVehicles2023-03-3101929615core:MotorVehiclescore:LeasedAssetsHeldAsLessee2024-03-3101929615core:MotorVehiclescore:LeasedAssetsHeldAsLessee2023-03-3101929615core:CurrentFinancialInstruments2024-03-3101929615core:CurrentFinancialInstruments2023-03-31019296152023-03-3101929615core:CurrentFinancialInstrumentscore:WithinOneYear2024-03-3101929615core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3101929615core:Non-currentFinancialInstrumentscore:AfterOneYear2024-03-3101929615core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-31019296152022-03-3101929615core:Buildingscore:OwnedOrFreeholdAssets2023-04-012024-03-3101929615core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-04-012024-03-3101929615core:PlantMachinery2023-04-012024-03-3101929615core:FurnitureFittings2023-04-012024-03-3101929615core:MotorVehicles2023-04-012024-03-3101929615core:ConstructionInProgressAssetsUnderConstruction2023-04-012024-03-3101929615core:Landcore:OwnedOrFreeholdAssets2023-04-012024-03-310192961512023-04-012024-03-3101929615core:OwnedAssets2023-04-012024-03-3101929615core:OwnedAssets2022-04-012023-03-3101929615core:LeasedAssets2023-04-012024-03-3101929615core:LeasedAssets2022-04-012023-03-3101929615bus:HighestPaidDirector2023-04-012024-03-3101929615bus:HighestPaidDirector2022-04-012023-03-3101929615core:UKTax2023-04-012024-03-3101929615core:UKTax2022-04-012023-03-310192961512023-04-012024-03-310192961512022-04-012023-03-310192961522023-04-012024-03-310192961522022-04-012023-03-310192961532023-04-012024-03-310192961532022-04-012023-03-3101929615core:LandBuildingscore:OwnedOrFreeholdAssets2023-03-3101929615core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-03-3101929615core:ConstructionInProgressAssetsUnderConstruction2023-03-3101929615core:PlantMachinery2023-03-3101929615core:FurnitureFittings2023-03-3101929615core:MotorVehicles2023-03-3101929615core:LandBuildingscore:OwnedOrFreeholdAssets2023-04-012024-03-3101929615core:Buildings2023-04-012024-03-3101929615core:Buildings2024-03-3101929615core:Buildings2023-03-3101929615core:Non-currentFinancialInstruments2024-03-3101929615core:Non-currentFinancialInstruments2023-03-3101929615core:Secured2024-03-3101929615core:Secured2023-03-3101929615core:WithinOneYear2024-03-3101929615core:WithinOneYear2023-03-3101929615core:BetweenTwoFiveYears2024-03-3101929615core:BetweenTwoFiveYears2023-03-3101929615core:MoreThanFiveYears2024-03-3101929615core:MoreThanFiveYears2023-03-3101929615core:AcceleratedTaxDepreciationDeferredTax2024-03-3101929615core:AcceleratedTaxDepreciationDeferredTax2023-03-3101929615core:TaxLossesCarry-forwardsDeferredTax2024-03-3101929615core:TaxLossesCarry-forwardsDeferredTax2023-03-3101929615core:OtherDeferredTax2024-03-3101929615core:OtherDeferredTax2023-03-3101929615core:RevaluationReserve2023-04-012024-03-3101929615core:CapitalRedemptionReserve2023-04-012024-03-3101929615core:RetainedEarningsAccumulatedLosses2023-04-012024-03-3101929615bus:PrivateLimitedCompanyLtd2023-04-012024-03-3101929615bus:FRS1022023-04-012024-03-3101929615bus:Audited2023-04-012024-03-3101929615bus:FullAccounts2023-04-012024-03-31xbrli:purexbrli:sharesiso4217:GBP