Company registration number 01497923 (England and Wales)
R.J. BATEMAN (ENGINEERING) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
R.J. BATEMAN (ENGINEERING) LIMITED
COMPANY INFORMATION
Director
Mr J J Bateman
Secretary
Mrs S M Bateman
Company number
01497923
Registered office
Bradbury House
Mission Court
Newport
Gwent
NP20 2DW
Auditor
UHY Hacker Young
Bradbury House
Mission Court
Newport
Gwent
United Kingdom
NP20 2DW
R.J. BATEMAN (ENGINEERING) LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 22
R.J. BATEMAN (ENGINEERING) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -
The director presents the strategic report for the year ended 31 August 2024.
REVIEW OF THE BUSINESS
The principal activity of the company during the year was that of the manufacture and supply of self propelled agricultural crop sprayers. In addition, the company continues to support and maintain customers with machines already in the marketplace.
The company has continued to improve its existing models and develop future models. The time spent on ensuring machines are reliable and built to the high standards expected by our customers has ensured that the company's reputation has remained strong in it's sector. The hard work and time expended over the last few years has continued to reap benefits for the company.
The directors are satisfied with the period's trading performance during the year and the financial position as at 31 August 2024 in the continued difficult circumstances with raw material prices rising and significant increases in direct labour costs.
Turnover increased by approximately 2.1% from £22.0m to £22.5m, and the company's margin improved from 19.4% to 19.9%; this is the company's key measure of operating effectiveness.
The profit for the financial year was £1.8m compared to £1.7m in the year ended 31 August 2023.
The company's financial position remains strong with net assets being £10.1m (2023: £8.8m).
PRINCIPAL RISKS AND UNCERTAINTIES
The company's activities expose it to a number of financial risks including price risk, credit risk, cash flow risk and liquidity risk. The use of financial instruments is monitored by the board of directors; the company does not use financial instruments for speculative purposes. The company's principal financial instruments comprise bank balances, trade creditors, trade debtors and loans to the company.
Cash flow risk
The company has no interest bearing assets and few interest bearing liabilities which minimises the uncertainty of cash flows.
Credit risk
The company's principal financial assets are bank balances and cash, trade and other receivables. The company's credit risk is primarily attributable to its trade and other receivables. The company manages credit risk in respect of trade debtors by regularly monitoring credit limits and balances outstanding. The company has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers. The credit risk on liquid funds and financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.
Liquidity risk
The company manages the liquidity risk by monitoring working capital and ensuring there are sufficient funds to meet payments.
Brexit
The Directors are aware of the potential risks which Brexit presents and have worked closely with our supply-chain to ensure continuity of supply of goods following the UK’s departure from the EU. The Directors will seek to mitigate any other risks to the business, whilst maximising any opportunities that may arise.
Mr J J Bateman
Director
27 May 2025
R.J. BATEMAN (ENGINEERING) LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -
The director presents his annual report and financial statements for the year ended 31 August 2024.
Principal activities
The principal activity of the company continued to be that of manufacturing agricultural crop spraying machinery.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £565,000. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr J J Bateman
Mr R J Bateman (Deceased)
(Resigned 10 November 2024)
It is with great sadness that we report that the company's founder and director Mr R J Bateman passed away in November 2024. Richard's vision and engineering skills together with his commitment to customers and staff laid the foundations for the company's growth and culture and is a real legacy. He is greatly missed.
Auditor
The auditor, UHY Hacker Young, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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.
On behalf of the board
Mr J J Bateman
Director
27 May 2025
R.J. BATEMAN (ENGINEERING) LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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. He is 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.
R.J. BATEMAN (ENGINEERING) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF R.J. BATEMAN (ENGINEERING) LIMITED
- 4 -
Opinion
We have audited the financial statements of R.J. Bateman (Engineering) Limited (the 'company') for the year ended 31 August 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, 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:
give a true and fair view of the state of the company's affairs as at 31 August 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 director's 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 director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
R.J. BATEMAN (ENGINEERING) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF R.J. BATEMAN (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 director's 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 director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our approach to identifying and assessing the risks of material misstatements in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the relevant sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006;
we assessed the extent of compliance with laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company's financial statements to material misstatements, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
R.J. BATEMAN (ENGINEERING) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF R.J. BATEMAN (ENGINEERING) LIMITED
- 6 -
To address risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from the financial statements, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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.
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.
Mr John Griffiths
Senior Statutory Auditor
For and on behalf of UHY Hacker Young
27 May 2025
Chartered Accountants
Statutory Auditor
Newport
Gwent
United Kingdom
R.J. BATEMAN (ENGINEERING) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
22,501,554
22,037,400
Cost of sales
(18,027,329)
(17,772,054)
Gross profit
4,474,225
4,265,346
Distribution costs
(97,742)
(112,339)
Administrative expenses
(2,256,749)
(2,262,911)
Operating profit
4
2,119,734
1,890,096
Interest receivable and similar income
7
41,700
22,100
Profit before taxation
2,161,434
1,912,196
Tax on profit
8
(336,493)
(223,131)
Profit for the financial year
1,824,941
1,689,065
The profit and loss account has been prepared on the basis that all operations are continuing operations.
R.J. BATEMAN (ENGINEERING) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024
- 8 -
2024
2023
£
£
Profit for the year
1,824,941
1,689,065
Other comprehensive income
-
-
Total comprehensive income for the year
1,824,941
1,689,065
R.J. BATEMAN (ENGINEERING) LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2024
31 August 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
845,053
986,031
Current assets
Stocks
11
6,714,665
7,106,037
Debtors
12
1,480,806
2,147,052
Cash at bank and in hand
4,237,140
1,588,056
12,432,611
10,841,145
Creditors: amounts falling due within one year
13
(3,117,170)
(2,893,627)
Net current assets
9,315,441
7,947,518
Total assets less current liabilities
10,160,494
8,933,549
Provisions for liabilities
Deferred tax liability
15
102,851
135,847
(102,851)
(135,847)
Net assets
10,057,643
8,797,702
Capital and reserves
Called up share capital
16
10,000
10,000
Profit and loss reserves
10,047,643
8,787,702
Total equity
10,057,643
8,797,702
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 27 May 2025 and are signed on its behalf by:
Mr J J Bateman
Director
Company registration number 01497923 (England and Wales)
R.J. BATEMAN (ENGINEERING) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 September 2022
10,000
9,148,637
9,158,637
Year ended 31 August 2023:
Profit and total comprehensive income
-
1,689,065
1,689,065
Dividends
9
-
(2,050,000)
(2,050,000)
Balance at 31 August 2023
10,000
8,787,702
8,797,702
Year ended 31 August 2024:
Profit and total comprehensive income
-
1,824,941
1,824,941
Dividends
9
-
(565,000)
(565,000)
Balance at 31 August 2024
10,000
10,047,643
10,057,643
R.J. BATEMAN (ENGINEERING) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
3,324,173
801,265
Income taxes paid
(94,706)
Net cash inflow from operating activities
3,229,467
801,265
Investing activities
Purchase of tangible fixed assets
(57,083)
(212,156)
Interest received
41,700
22,100
Net cash used in investing activities
(15,383)
(190,056)
Financing activities
Dividends paid
(565,000)
(2,050,000)
Net cash used in financing activities
(565,000)
(2,050,000)
Net increase/(decrease) in cash and cash equivalents
2,649,084
(1,438,791)
Cash and cash equivalents at beginning of year
1,588,056
3,026,847
Cash and cash equivalents at end of year
4,237,140
1,588,056
R.J. BATEMAN (ENGINEERING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 12 -
1
Accounting policies
Company information
R.J. Bateman (Engineering) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Bradbury House, Mission Court, Newport, Gwent, NP20 2DW.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues 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 provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Improvements to property
2% on cost
Plant and machinery
25% on reducing balance
Computer equipment
25% on reducing balance
Motor vehicles
25% on reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
R.J. BATEMAN (ENGINEERING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 13 -
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
R.J. BATEMAN (ENGINEERING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
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. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. 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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.8
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
R.J. BATEMAN (ENGINEERING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 15 -
1.10
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.11
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
Stock valuation
At the year end the company had stock of £6,714,665 (2023: £7,106,037). As noted at 1.5 above, stocks are valued at the lower of cost and estimated selling price. The valuation of work in progress and finished goods involves the exercise of judgement as the costing is based on the stage of completion and managements estimate of direct and indirect production costs absorbed.
3
Turnover and other revenue
The whole of the turnover is attributable to the principal activity of the Company being the manufacture and supply of self propelled agricultural crop sprayers.
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
20,082,382
19,849,232
Europe
1,591,895
1,421,091
Rest of world
827,277
767,077
22,501,554
22,037,400
2024
2023
£
£
Other revenue
Interest income
41,700
22,100
R.J. BATEMAN (ENGINEERING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 16 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
26,750
19,800
Depreciation of owned tangible fixed assets
198,061
168,485
Operating lease charges
9,214
17,436
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Production
58
68
Design
6
4
Management
5
5
Office
5
5
Sales
2
2
Service
12
15
Total
88
99
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
4,100,193
3,861,648
Social security costs
464,683
529,079
Pension costs
64,711
97,660
4,629,587
4,488,387
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
204,724
178,487
Company pension contributions to defined contribution schemes
1,321
1,358
206,045
179,845
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
R.J. BATEMAN (ENGINEERING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
6
Director's remuneration
(Continued)
- 17 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
204,724
n/a
Company pension contributions to defined contribution schemes
1,321
n/a
As total directors' remuneration was less than £200,000 in the prior year, no disclosure is provided for that year.
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
41,700
22,100
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
41,700
22,100
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
575,658
391,341
Adjustments in respect of prior periods
(206,169)
(185,441)
Total current tax
369,489
205,900
Deferred tax
Origination and reversal of timing differences
(32,996)
17,819
Adjustment in respect of prior periods
(588)
Total deferred tax
(32,996)
17,231
Total tax charge
336,493
223,131
R.J. BATEMAN (ENGINEERING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
8
Taxation
(Continued)
- 18 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
2,161,434
1,912,196
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.52%)
540,359
411,409
Tax effect of expenses that are not deductible in determining taxable profit
173
50
Adjustments in respect of prior years
(206,169)
(186,029)
Effect of change in corporation tax rate
3,557
Permanent capital allowances in excess of depreciation
(7,689)
Depreciation on assets not qualifying for tax allowances
2,130
1,833
Taxation charge for the year
336,493
223,131
9
Dividends
2024
2023
£
£
Interim paid
565,000
2,050,000
R.J. BATEMAN (ENGINEERING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 19 -
10
Tangible fixed assets
Improvements to property
Assets under construction
Plant and machinery
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 September 2023
430,684
11,345
1,239,176
300,433
889,734
2,871,372
Additions
6,327
50,232
524
57,083
At 31 August 2024
437,011
11,345
1,289,408
300,957
889,734
2,928,455
Depreciation and impairment
At 1 September 2023
192,922
944,967
171,233
576,219
1,885,341
Depreciation charged in the year
8,614
78,951
32,344
78,152
198,061
At 31 August 2024
201,536
1,023,918
203,577
654,371
2,083,402
Carrying amount
At 31 August 2024
235,475
11,345
265,490
97,380
235,363
845,053
At 31 August 2023
237,762
11,345
294,209
129,200
313,515
986,031
11
Stocks
2024
2023
£
£
Raw materials and consumables
4,997,377
5,328,859
Work in progress
1,502,288
1,509,178
Finished machines
215,000
268,000
6,714,665
7,106,037
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,402,458
2,081,450
Other debtors
12,043
Prepayments and accrued income
78,348
53,559
1,480,806
2,147,052
R.J. BATEMAN (ENGINEERING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 20 -
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Trade creditors
1,407,617
1,511,128
Corporation tax
575,658
300,875
Other taxation and social security
344,801
171,580
Deferred income
14
482,380
574,604
Other creditors
27,779
20,173
Accruals
278,935
315,267
3,117,170
2,893,627
14
Deferred income
2024
2023
£
£
Other deferred income
482,380
574,604
Deferred income relates to machines invoiced in advance.
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
106,269
137,782
Bad debt provision
(3,418)
(1,935)
102,851
135,847
2024
Movements in the year:
£
Liability at 1 September 2023
135,847
Credit to profit or loss
(32,996)
Liability at 31 August 2024
102,851
The deferred tax liability set out above relates predominantly to accelerated capital allowances and is expected to reverse over the useful economic lives of the related assets.
R.J. BATEMAN (ENGINEERING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 21 -
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10,000
10,000
10,000
10,000
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
64,711
97,660
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.
18
Directors' transactions
Transactions with directors were as follows:
Dividends totalling £565,000 (2023 - £2,050,000) were paid in the year in respect of shares held by Mr R J Bateman and Mrs S M Bateman.
19
Ultimate controlling party
The company is ultimately controlled by Mrs S M Bateman by virtue of her shareholding and the estate of Mr R J Bateman.
20
Cash generated from operations
2024
2023
£
£
Profit after taxation
1,824,941
1,689,065
Adjustments for:
Taxation charged
336,493
223,131
Investment income
(41,700)
(22,100)
Depreciation and impairment of tangible fixed assets
198,061
168,485
Movements in working capital:
Decrease/(increase) in stocks
391,372
(905,057)
Decrease/(increase) in debtors
666,246
(463,184)
Increase/(decrease) in creditors
40,984
(272,511)
(Decrease)/increase in deferred income
(92,224)
383,436
Cash generated from operations
3,324,173
801,265
R.J. BATEMAN (ENGINEERING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 22 -
21
Analysis of changes in net funds
1 September 2023
Cash flows
31 August 2024
£
£
£
Cash at bank and in hand
1,588,056
2,649,084
4,237,140
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