Severn Drives & Energy Limited 05150600 false 2024-04-01 2025-03-31 2025-03-31 The principal activity of the company is the sale of medium voltage starters, drives and energy converters. Digita Accounts Production Advanced 6.30.9574.0 true 05150600 2024-04-01 2025-03-31 05150600 2025-03-31 05150600 bus:Consolidated 2025-03-31 05150600 core:CurrentFinancialInstruments 2025-03-31 05150600 core:CurrentFinancialInstruments core:WithinOneYear 2025-03-31 05150600 core:FurnitureFittingsToolsEquipment 2025-03-31 05150600 core:MotorVehicles 2025-03-31 05150600 bus:SmallEntities 2024-04-01 2025-03-31 05150600 bus:Audited 2024-04-01 2025-03-31 05150600 bus:FilletedAccounts 2024-04-01 2025-03-31 05150600 bus:SmallCompaniesRegimeForAccounts 2024-04-01 2025-03-31 05150600 bus:RegisteredOffice 2024-04-01 2025-03-31 05150600 bus:Director1 2024-04-01 2025-03-31 05150600 bus:Director2 2024-04-01 2025-03-31 05150600 bus:Director3 2024-04-01 2025-03-31 05150600 bus:PrivateLimitedCompanyLtd 2024-04-01 2025-03-31 05150600 core:FurnitureFittingsToolsEquipment 2024-04-01 2025-03-31 05150600 core:MotorVehicles 2024-04-01 2025-03-31 05150600 core:PlantMachinery 2024-04-01 2025-03-31 05150600 core:Vehicles 2024-04-01 2025-03-31 05150600 5 2024-04-01 2025-03-31 05150600 countries:EnglandWales 2024-04-01 2025-03-31 05150600 2024-03-31 05150600 core:FurnitureFittingsToolsEquipment 2024-03-31 05150600 core:MotorVehicles 2024-03-31 05150600 2023-04-01 2024-03-31 05150600 2024-03-31 05150600 core:CurrentFinancialInstruments 2024-03-31 05150600 core:CurrentFinancialInstruments core:WithinOneYear 2024-03-31 05150600 core:FurnitureFittingsToolsEquipment 2024-03-31 05150600 core:MotorVehicles 2024-03-31 iso4217:GBP xbrli:pure

Registration number: 05150600

Prepared for the registrar
Severn Drives & Energy Limited
Annual Report and Financial Statements
for the Year Ended 31 March 2025

Severn Drives & Energy Limited

Contents

Company Information | 1
Balance Sheet | 2
Notes to the Financial Statements | 3 to 7

Severn Drives & Energy Limited

Company Information

Directors | D C Critchley M M Critchley J S Jones

Registered office | Unit 7 New Road Kibworth Beauchamp Leicester Leicestershire LE8 0LE

Auditors | Hazlewoods LLP Windsor House Bayshill Road Cheltenham GL50 3AT

Severn Drives & Energy Limited

(Registration number: 05150600)
Balance Sheet as at 31 March 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |
Tangible assets | 4 | 79,742 | 40,582
Current assets |  |  |
Stocks |  | 187,852 | 210,471
Debtors | 5 | 845,068 | 752,307
Cash at bank and in hand |  | 143,012 | 452,170
|  | 1,175,932 | 1,414,948
Creditors: Amounts falling due within one year | 6 | (564,848) | (1,354,237)
Net current assets |  | 611,084 | 60,711
Net assets |  | 690,826 | 101,293
Capital and reserves |  |  |
Called up share capital |  | 100 | 100
Profit and loss account |  | 690,726 | 101,193
Shareholders' funds |  | 690,826 | 101,293

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 14 October 2025 and signed on its behalf by:

D C Critchley
Director

Severn Drives & Energy Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

| 1 | General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 7
New Road
Kibworth Beauchamp
Leicester
Leicestershire
LE8 0LE

| 2 | Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company. The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits can be reliably measured, and it is probable that future economic benefits will flow to the entity.
The company deem that the risks and rewards of ownership pass when products are delivered to customers and it is at this point revenue is recognised.

Critical accounting judgements and key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 those 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 if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.

Judgements

No significant judgements have been made by management in preparing these financial statements.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Severn Drives & Energy Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

Tax

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

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

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, over their estimated useful lives, as follows:

Asset class | Depreciation method and rate
Plant and machinery | 20% on cost
Motor vehicles | 20% on cost

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stock and work in progress are valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to be completion and selling costs. Costs included all direct costs and an appropriate proportion of fixed and variable overheads.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Severn Drives & Energy Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Prior period errors
During the year ended 31 March 2021, Severn Drives and Energy Limited made a sale which was incorrectly believed to have been a commissioning project. The revenue of £119,038 and cost of sales of £73,130 was held on the balance sheet as a result.
The directors have identified that the commissioning was incorrect and therefore a prior year adjustment has been processed to recognise the revenue and cost of sales.

Financial instruments

Classification
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other receivables and payables, loans from related parties and investments in non-puttable ordinary shares.
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet, The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.
Debt instruments like loans and other receivables and payables are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms of financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of future payments discounted at a market rate of interest for a similar debt instrument.

Recognition and measurement
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss. For financial assets measured at amortised cost, the impairment loss is measured as the difference between an assets carrying value and the present value of estimated cash flows discounted at the assets original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an assets carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount recognised in the statement of financial position when there is an 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.

Impairment
At each reporting date non-financial assets not carried at fair value, such as property, plant and equipment are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets, which is the higher of value in use and the fair value less costs to sell, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit or loss.

Severn Drives & Energy Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

| 3 | Staff numbers

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

| 2025 No. | 2024 No.
Average number of employees | 9 | 7

| 4 | Tangible assets

| Plant and machinery £ | Motor vehicles £ | Total £
Cost
At 1 April 2024 | 133,143 | 8,516 | 141,659
Additions | 58,697 | 15,000 | 73,697
Disposals | (43,569) | - | (43,569)
At 31 March 2025 | 148,271 | 23,516 | 171,787
Depreciation
At 1 April 2024 | 99,114 | 1,963 | 101,077
Charge for the year | 32,584 | 1,953 | 34,537
Eliminated on disposal | (43,569) | - | (43,569)
At 31 March 2025 | 88,129 | 3,916 | 92,045
Carrying amount
At 31 March 2025 | 60,142 | 19,600 | 79,742
At 31 March 2024 | 34,029 | 6,553 | 40,582

| 5 | Debtors

| 2025 £ | 2024 £
Trade debtors | 244,423 | 293,274
Amounts owed by related parties | 528,061 | 402,502
Other debtors | 13,312 | 19,755
Prepayments | 59,272 | 22,922
Accrued income | - | 13,854
| 845,068 | 752,307

Severn Drives & Energy Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

| 6 | Creditors

| 2025 £ | 2024 £
Due within one year |  |
Trade creditors | 88,729 | 56,322
Amounts due to group undertakings | 257,318 | 1,062,625
Social security and other taxes | 176,375 | 44,837
Outstanding defined contribution pension costs | 1,695 | -
Other creditors | 24,150 | 107,571
Accrued expenses | 16,581 | 82,882
| 564,848 | 1,354,237

| 7 | Contingent liabilities

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £84,331 (2024 - £34,750).

| 8 | Related party transactions

At 31 March 2025, the company owed £nil (2023 - £nil) and was owed £37,172 (2024 - £246) from a director as director's loan accounts. The loans are interest free and there are no fixed repayment terms.

| 9 | Parent and ultimate parent undertaking

The company is controlled by Critchley Engineering Group Limited, a company registered in England and Wales. There is no ultimate controlling party.

| 10 | Disclosure under Section 444(5B) CA 2006 relating to the independent auditor's report

As permitted by Section 444 CA 2006, these accounts do not contain a copy of the company’s Profit and Loss account or a copy of the Directors’ Report. Accordingly, the Independent Auditors’ Report has also been omitted.
The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 14 October 2025 was Martin Howard, who signed for and on behalf of Hazlewoods LLP.