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Registered number: 00895927










SALOP DESIGN & ENGINEERING LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
COMPANY INFORMATION


Directors
Gillian M Homden 
Richard L Homden 
Chris Greenough (resigned 31 August 2024)
Adrian Delamere 
Benjamin Ewels 




Company secretary
A D Delamere



Registered number
00895927



Registered office
Brixton Way
Harlescott Industrial Estate

Shrewsbury

Shropshire

SY1 3LB




Independent auditors
WR Partners
Chartered Accountants & Statutory Auditors

Belmont House

Shrewsbury Business Park

Shrewsbury

Shropshire

SY2 6LG





 
SALOP DESIGN & ENGINEERING LIMITED
 

CONTENTS



Page
Strategic report
 
1
Directors' report
 
2 - 3
Independent auditors' report
 
4 - 8
Statement of comprehensive income
 
9 - 10
Balance sheet
 
10 - 11
Statement of changes in equity
 
12
Notes to the financial statements
 
13 - 32


 
SALOP DESIGN & ENGINEERING LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

Introduction
 
The directors present the strategic report for the period ended 30 September 2024. 

Business review
 
Despite the challenges arising from the unprecedented circumstances driven by the cost of living crisis, the business has demonstrated its operational and financial resilience and ability to manage business risks successfully.
The Company produced a profit before tax of £212k (2023: £22k).
The Company continues to maintain a strong balance sheet with net assets and net current assets at period end of £3.4m (2023: £3.3m) and £1.5m (2023: £1.9m) respectively.                                                           

Principal risks and uncertainties
 
The Company is in a strong financial position with continued investment being funded out of retained earnings and cash at bank. The principal risks and uncertainties are considered to be those external to the company itself such as changes in the political and economic environments. The control of risk and the management of the Company's ability to adjust to changing external and internal influences is integral to the company's business. The directors regularly review and agree policies for managing such risks.    

Financial key performance indicators
 
The Company uses various key performance indicators to monitor its financial performance and position. Key performance indicators that are relevant to the financial statements include turnover, gross profit margin, operating profit, net current assets and net assets. An analysis of the Company's performance by reference to these key performance indicators is provided in the business review above.

Other key performance indicators
 
The Company uses a number of targeted non-financial key performance indicators to monitor and measure performance on a weekly and monthly basis.


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





................................................
Richard L Homden
Director

Date: 2 May 2025

Page 1

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

The directors present their report and the financial statements for the year ended 30 September 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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

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

Results and dividends

The profit for the year, after taxation, amounted to £50,566 (2023 - £35,271).

No dividends have been paid or recommended in the current or prior year.

Directors

The directors who served during the year were:

Gillian M Homden 
Richard L Homden 
Chris Greenough (resigned 31 August 2024)
Adrian Delamere 
Benjamin Ewels 

Page 2

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024


Future developments

The organisation has invested significantly on ERP/CRM systems to enable it to enter into defence, renewables, aerospace, and energy markets.

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 auditorsWR Partnerswill 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.
 





................................................
Richard L Homden
Director

Date: 2 May 2025

Page 3

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SALOP DESIGN & ENGINEERING LIMITED
 

Opinion


We have audited the financial statements of Salop Design & Engineering Limited (the 'Company') for the year ended 30 September 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity 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 30 September 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


Conclusions relating to going concern


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


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


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


Page 4

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SALOP DESIGN & ENGINEERING LIMITED (CONTINUED)


Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

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


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Page 5

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SALOP DESIGN & ENGINEERING LIMITED (CONTINUED)


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.


Page 6

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SALOP DESIGN & 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:

The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, Health and Safety Regulations and the EU General Data Protection Regulation (GDPR). 
We understood how the Company is complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures. We also reviewed board minutes to identify any recorded instances of irregularity or non compliance that might have a material impact on the financial statements. 
We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur by meeting with key management to understand where they considered there was susceptibility to fraud. Based on our understanding our procedures involved enquiries of management and those charged with governance, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the financial statements.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


Page 7

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SALOP DESIGN & 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.






John Fletcher BA (Hons) FCA (Senior statutory auditor)
  
for and on behalf of
WR Partners
 
Chartered Accountants
Statutory Auditors
  
Belmont House
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG

2 May 2025
Page 8

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2024
2023
                                                                                                                 Note
£
£

  

Turnover
 4 
15,261,887
14,082,520

Cost of sales
  
(13,044,928)
(12,425,714)

Gross profit
  
2,216,959
1,656,806

Administrative expenses
  
(1,949,613)
(1,579,366)

Operating profit
 5 
267,346
77,440

Interest receivable and similar income
  
-
2,000

Interest payable and similar expenses
 9 
(55,799)
(57,682)

Profit before tax
  
211,547
21,758

Tax on profit
 10 
(160,981)
13,513

Profit for the financial year
  
50,566
35,271

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 13 to 32 form part of these financial statements.

Page 9

 
SALOP DESIGN & ENGINEERING LIMITED
 

BALANCE SHEET
AS AT 30 SEPTEMBER 2024

As restated
2024
2023
                                                                    Note
£
£

Fixed assets
  

Intangible assets
 11 
46,566
55,880

Tangible assets
 12 
3,726,935
3,243,440

Investments
 13 
380,875
380,875

  
4,154,376
3,680,195

Current assets
  

Stocks
 14 
1,124,287
1,187,578

Debtors
 15 
2,726,191
2,766,673

Cash at bank and in hand
 16 
548,221
379,878

  
4,398,699
4,334,129

Creditors: amounts falling due within one year
 17 
(2,903,085)
(2,393,821)

Net current assets
  
 
 
1,495,614
 
 
1,940,308

Total assets less current liabilities
  
5,649,990
5,620,503

Creditors: amounts falling due after more than one year
 18 
(1,769,149)
(1,951,209)

Provisions for liabilities
  

Deferred tax
 20 
(489,595)
(328,614)

  
 
 
(489,595)
 
 
(328,614)

Net assets
  
3,391,246
3,340,680

Page 10

 
SALOP DESIGN & ENGINEERING LIMITED
REGISTERED NUMBER: 00895927
    
BALANCE SHEET (CONTINUED)
AS AT 30 SEPTEMBER 2024

As restated
2024
2023
                                                                    Note
£
£

Capital and reserves
  

Called up share capital 
 21 
20,100
20,100

Profit and loss account
 22 
3,371,146
3,320,580

  
3,391,246
3,340,680


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




................................................
Richard L Homden
Director

Date: 2 May 2025

The notes on pages 13 to 32 form part of these financial statements.

Page 11

 
SALOP DESIGN & ENGINEERING LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 October 2022
20,100
3,285,309
3,305,409


Comprehensive income for the year

Profit for the year
-
35,271
35,271
Total comprehensive income for the year
-
35,271
35,271


Total transactions with owners
-
-
-


At 1 October 2023
20,100
3,320,580
3,340,680


Comprehensive income for the year

Profit for the year
-
50,566
50,566
Total comprehensive income for the year
-
50,566
50,566


Total transactions with owners
-
-
-


At 30 September 2024
20,100
3,371,146
3,391,246


The notes on pages 13 to 32 form part of these financial statements.

Page 12

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

1.


General information

Salop Design & Engineering Limited is a private company limited by shares. It is incorporated and domiciled in the UK and has a registered office and principal place of business at Brixton Way, Harlescott Industrial Estate, Shrewsbury, Shropshire, SY1 3LB.
The principal activity of the company is the manufacture and production of precision metal pressing and assemblies predominantly for the automotive and domestic appliance markets.

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

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d).

This information is included in the consolidated financial statements of R A Homden Limited as at 30 September 2024 and these financial statements may be obtained from Companies House.

 
2.3

Going concern

After making enquires, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements.

 
2.4

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

Page 13

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.5

Revenue

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

Sale of goods

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

 
2.6

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Amortisation will be charged so as to reduce the book value of the assets over a useful economic life of 7 years. 

 
2.7

Tangible fixed assets

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

Page 14

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)


2.7
Tangible fixed assets (continued)

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

Depreciation is provided on the following basis:

Plant & Machinery
-
7.5-25% reducing balance
Motor Vehicles
-
25% straight-line

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.

 
2.8

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.9

Stocks

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

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

 
2.10

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.

Page 15

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.11

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

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

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
 
Page 16

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)


2.11
Financial instruments (continued)


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

Financial liabilities

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

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Page 17

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
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.

 
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

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

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

 
2.15

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 18

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.16

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.

 
2.17

Pensions

Defined contribution pension plan

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

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

 
2.18

Interest income

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

 
2.19

Borrowing costs

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

 
2.20

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.

Page 19

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.21

Current and deferred taxation

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

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

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

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


 
2.22

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations or 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 relates actual results. In the opinion of the directors there are no estimates nor assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Page 20

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

4.


Turnover

The whole of the turnover is attributable to the manufacture and production of precision metal pressing and assemblies predominantly for the automotive and domestic appliance industries.

Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
13,499,390
10,992,694

Rest of Europe
1,762,497
3,089,826

15,261,887
14,082,520



5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Exchange differences
(123)
(512)

Other operating lease rentals
73,205
86,125


6.


Auditors' remuneration

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


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
12,750
11,425

Page 21

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

7.


Employees

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


As restated
2024
2023
£
£

Wages and salaries
3,033,559
2,949,887

Social security costs
280,894
269,932

Cost of defined contribution scheme
67,945
65,225

3,382,398
3,285,044


Prior year wages and salaries have been restated to remove agency labour costs.

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


        2024
        2023
            No.
            No.







Production
93
90



Administration
14
16



Directors
4
5

111
111


8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
315,496
266,729

Company contributions to defined contribution pension schemes
9,852
10,082

325,348
276,811


During the year retirement benefits were accruing to 4 directors (2023 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £85,000 (2023 - £85,000).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £4,321 (2023 - £NIL).

Page 22

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

9.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
51,393
55,068

Other loan interest payable
4,406
2,614

55,799
57,682


10.


Taxation


2024
2023
£
£

Corporation tax


Adjustments in respect of previous periods
-
(84,943)


-
(84,943)


Total current tax
-
(84,943)

Deferred tax


Origination and reversal of timing differences
160,981
71,430

Total deferred tax
160,981
71,430


Taxation on profit/(loss) on ordinary activities
160,981
(13,513)
Page 23

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 22%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
211,547
21,758


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 22%)
52,887
4,787

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
2,329
4,032

Utilisation of tax losses
74,185
98,355

Adjustments to tax charge in respect of prior periods
-
(84,943)

Non-taxable income
-
(2,272)

Book profit on chargeable assets
(35)
(702)

Timing differences net of movement in tax rates
31,615
(32,770)

Total tax charge for the year
160,981
(13,513)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 24

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

11.


Intangible assets




Licence Option
Other intangible assets
Total

£
£
£



Cost


At 1 October 2023
50,000
43,135
93,135



At 30 September 2024

50,000
43,135
93,135



Amortisation


At 1 October 2023
15,000
22,255
37,255


Charge for the year on owned assets
5,000
4,314
9,314


Amortisation transfer
5,000
(5,000)
-



At 30 September 2024

25,000
21,569
46,569



Net book value



At 30 September 2024
25,000
21,566
46,566



At 30 September 2023
35,000
20,880
55,880



Page 25

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

12.


Tangible fixed assets





Plant & Machinery
Motor Vehicles
Total

£
£
£



Cost or valuation


At 1 October 2023
8,664,223
3,500
8,667,723


Additions
711,949
-
711,949



At 30 September 2024

9,376,172
3,500
9,379,672



Depreciation


At 1 October 2023
5,422,752
1,531
5,424,283


Charge for the year on owned assets
227,579
875
228,454



At 30 September 2024

5,650,331
2,406
5,652,737



Net book value



At 30 September 2024
3,725,841
1,094
3,726,935



At 30 September 2023
3,241,471
1,969
3,243,440

Page 26

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

13.


Fixed asset investments





Investments in Subsidiary Companies

£



Cost or valuation


At 1 October 2023
380,875



At 30 September 2024
380,875





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Class of shares

Holding

Salop Haulage Limited
Ordinary
75%


14.


Stocks

2024
2023
£
£

Raw materials and consumables
614,538
861,915

Work in progress
243,782
156,790

Finished goods and goods for resale
265,967
168,873

1,124,287
1,187,578



Page 27

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

15.


Debtors

As restated
2024
2023
£
£

Due within one year

Trade debtors
2,530,433
2,343,751

Amounts owed by group undertakings
-
99,875

Other debtors
92,033
210,087

Prepayments and accrued income
98,776
108,011

Tax recoverable
4,949
4,949

2,726,191
2,766,673


The prior year balance sheet has been restated to remove deferred tax assets of £426,037 from debtors to provisions to reflect the legal right of offset between the deferred tax asset and deferred tax liability. There is no impact on the previous reported profit or net assets. 


16.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
548,221
379,878

548,221
379,878



17.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank loans
200,000
200,000

Trade creditors
1,232,714
1,375,760

Amounts owed to group undertakings
118,434
192,136

Other taxation and social security
178,753
65,286

Other creditors
323,428
310,578

Accruals and deferred income
849,756
250,061

2,903,085
2,393,821


Page 28

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

18.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
316,666
516,666

Amounts owed to group undertakings
1,452,483
1,434,543

1,769,149
1,951,209



19.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
200,000
200,000


200,000
200,000

Amounts falling due 1-2 years

Bank loans
200,000
200,000


200,000
200,000

Amounts falling due 2-5 years

Bank loans
116,666
316,666


116,666
316,666


516,666
716,666


Included within bank loans is a Coronavirus Business Interruption Loan, provided by Barclay's Bank Plc. Interest is charged at 2.95% plus the base rate and the balance is expected to be repaid in full by October 2026. The loan is secured by a fixed and floating charge over the assets of the Company.

Page 29

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

20.


Deferred taxation




2024


£






At beginning of year
(328,614)


Charged to the profit or loss
(160,981)



At end of year
(489,595)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(889,299)
(756,684)

Other short term timing differences
2,856
2,033

Unused taxable losses
396,848
426,037

(489,595)
(328,614)


21.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



20,100 (2023 - 20,100) Ordinary shares of £1.00 each
20,100
20,100


Page 30

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

22.


Reserves

Profit & loss account

The profit and loss account represents the cumulative retained profits and losses of the Company since incorporation, less distributions made to shareholders.


23.


Contingent liabilities

There is a cross guarantee and between between the Company, its parent R A Homden Limited and its subsidiary Salop Haulage Limited. 


24.


Capital commitments


At 30 September 2024 the Company had capital commitments as follows:

2024
2023
£
£


Contracted for but not provided in these financial statements
-
428,321

-
428,321


25.


Pension commitments

The Company operates a defined contribution pension scheme for the benefit of directors and senior employees. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £20,418 (2023: £25,900). Contributions outstanding at the balance sheet date amounted to £11,423 (2023: £8,130). 

Page 31

 
SALOP DESIGN & ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024


26.


Commitments under operating lease

At 30 September 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
38,988
38,596

Later than 1 year and not later than 5 years
77,976
155,520

116,964
194,116


27.


Transactions with directors

During the year the Company has operated a loan account with a director. At the end of the year the loan amount outstanding was £37,260 (2023: £23,143) and this amount is included within other debtors, interest has been charged on this loan account of £nil (2023: £nil). 


28.


Related party transactions

As the Company is a wholly owned subsidiary of R A Homden Limited, the Company has taken advantage of the exemption contained in FRS102 and has therefore not disclosed transactions or balances with its parent. 


29.


Controlling party

The immediate and ultimate parent undertaking is R A Homden Limited, a company registered in England. The Company is under control of R L Homden, a director, due to his controlling interest in the voting share capital of R A Homden Limited.

 
Page 32