Ferguson Engineering (Northern) Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 02161479 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30TH SEPTEMBER 2021

FOR

FERGUSON ENGINEERING (NORTHERN) LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Mr R Ferguson

Mr P Williams

Mr A Coulson

Mr B T Mattison

REGISTERED OFFICE:

2 Coulton Road

Lomeshaye Industrial Estate

Nelson

Lancashire

BB9 5ST

REGISTERED NUMBER:

02161479 (England and Wales)

AUDITORS:

Ainsworths Limited

Chartered Accountants

and Statutory Auditors

Charter House

Stansfield Street

Nelson

Lancashire

BB9 9XY

FIXED ASSETS

Tangible assets

4

315,337

353,175

CURRENT ASSETS

Stocks

256,501

122,763

Debtors

5

3,427,983

1,618,248

Cash at bank and in hand

317,719

2,784,427

4,002,203

4,525,438

CREDITORS

Amounts falling due within one year

6

4,288,203

4,687,677

NET CURRENT LIABILITIES

(286,000

)

(162,239

)

TOTAL ASSETS LESS CURRENT LIABILITIES

29,337

190,936

CREDITORS

Amounts falling due after more than one year

7

(61,050

)

(94,350

)

PROVISIONS FOR LIABILITIES

(3,521

)

(28,343

)

NET (LIABILITIES)/ASSETS

(35,234

)

68,243

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

(35,334

)

68,143

SHAREHOLDERS' FUNDS

(35,234

)

68,243

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 7th December 2021 and were signed on its behalf by:

Mr R Ferguson - Director

1.	STATUTORY INFORMATION

Ferguson Engineering (Northern) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on a going concern basis which assumes that the company will be able to meet its liabilities as they fall due. The parent company, Ferguson Engineering (Holdings) Limited, has confirmed it's ongoing financial support of the company, including continued support of the company in its cash flow requirements. Accordingly, the directors have concluded that it is appropriate for these financial statements to be prepared on the going concern basis.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

The company's results are included within the consolidated financial statements of its ultimate parent company, Ferguson Engineering (Holdings) Limited, whose registered office address is 2 Coulton Road, Lomeshaye Industrial Estate, Nelson, BB9 5ST.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimations and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Contract stage of completion

Management make judgements at regular intervals as to whether revenue should be taken to the income statement for contract work. When such revenues are recognised, costs are also transferred to the income statement at the expected contract margin.

The following are the company's key sources of estimation uncertainty:

Expected contract margin

In order to determine the profit on its contracts in a particular period, management has to estimate costs to complete on such contracts. In making these assessments there is a degree of inherent uncertainty. Management have developed internal controls to assess and review carrying values and the appropriateness of the estimates made.

If estimated future costs to complete are anticipated to exceed the contract invoice price, then a full provision is made in the period in which such a loss is first foreseen.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

The company has two types of turnover, that of the manufacture and installation of industrial bakery equipment and the servicing of equipment. Turnover will only be recognised when significant risks and rewards have passed to the buyer, the amount of turnover 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 to the transaction can be measured reliably.

Turnover from manufacture and installation of bakery equipment is usually recognised on commissioning of the plant. Turnover from contracts in progress at the reporting period end will be by reference to the stage of completion. Stage of completion is measured by reference to the labour hours incurred to date as a percentage of total estimated labour hours for each contract.

Turnover from servicing of bakery equipment is recognised when the service has been provided.

Management charge income, is the recharge of shared factory overheads to other tenants of the factory. Turnover is recognised on an accruals basis.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery etc

-

25% on reducing balance, 20% on cost, 20% on reducing balance, 10% on cost and 5% on cost

Stocks and work in progress

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost of stocks is calculated using the average cost method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Contract work-in-progress is stated at cost plus attributable overheads, less provision for any known or anticipated losses and progress payments receivable on account.

Progress payments are included under trade creditors to the extent that they exceed the related work-in-progress.

Financial instruments

Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument.

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 deducting all of its liabilities.

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit and loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction the financial asset or liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

The following assets and liabilities are classified as financial instruments:

Investments in subsidiaries, trade debtors, trade creditors, hire purchase contracts, bank loans, directors' loans and inter group balances.

Trade debtors, trade creditors, and directors' loans and inter group balances (being repayable on demand) are measured at the undiscounted amount of cash or other consideration expected to be paid or received.

Hire purchase contracts and bank loans are initially measured at the present value of future payments, discounted at a market rate of interest and subsequently at amortised cost using the effective interest method.

Financial assets 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 and loss.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Employee benefit trusts

The company has established trusts for the benefit of employees and certain of their dependents. Monies held in these trusts are held by independent trustees and managed at their discretion.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 63 (2020 - 69 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1st October 2020

1,128,646

Additions

29,860

Disposals

(70,285

)

At 30th September 2021

1,088,221

DEPRECIATION

At 1st October 2020

775,471

Charge for year

67,698

Eliminated on disposal

(70,285

)

At 30th September 2021

772,884

NET BOOK VALUE

At 30th September 2021

315,337

At 30th September 2020

353,175

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

etc

£

COST

At 1st October 2020

and 30th September 2021

185,000

DEPRECIATION

At 1st October 2020

23,125

Charge for year

18,500

At 30th September 2021

41,625

NET BOOK VALUE

At 30th September 2021

143,375

At 30th September 2020

161,875

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.9.21

30.9.20

£

£

Trade debtors

734,698

395,011

Amounts owed by group undertakings

980,857

879,257

Other debtors

1,712,428

343,980

3,427,983

1,618,248

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.9.21

30.9.20

£

£

Hire purchase contracts

33,300

33,300

Trade creditors

792,948

1,166,845

Amounts owed to group undertakings

2,700,066

2,349,090

Taxation and social security

202,732

274,973

Other creditors

559,157

863,469

4,288,203

4,687,677

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

30.9.21

30.9.20

£

£

Hire purchase contracts

61,050

94,350

8.	SECURED DEBTS

The following secured debts are included within creditors:

30.9.21

30.9.20

£

£

Hire purchase contracts

94,350

-

Hire purchase contracts are secured against the assets which they relate to.

9.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Ian Dugmore (Senior Statutory Auditor)

for and on behalf of Ainsworths Limited

10.	CONTINGENT LIABILITIES

Ferguson Engineering (Northern) Limited, its parent undertaking Ferguson Engineering (Holdings) Limited and its fellow subsidiaries B.N.W Bakery Services Limited and Ferguson Laser Engineering Limited have guaranteed each others liabilities to the bank. The aggregate amount of bank borrowings outstanding at 30th September 2021 was £Nil (2020: £Nil).

11.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 30th September 2021 and 30th September 2020:

30.9.21

30.9.20

£

£

Mr R Ferguson

Balance outstanding at start of year

192,184

105,226

Amounts advanced

291,824

101,958

Amounts repaid

(144,697

)

(15,000

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

339,311

192,184

Directors loans are unsecured, interest free and are repayable on demand.