Company No: 02871670 (England and Wales)

Contents

• Company Information
• Balance Sheet
• Notes to the Financial Statements

DIRECTORS	Jayzee Michelle Jane Boyne
	Giles Stephen Throup
	Michael Raymond Throup
	Stephanie Anne Throup

SECRETARY

Stephanie Anne Throup

REGISTERED OFFICE	Coker Close
	Heathfield Park
	Taunton
	TA2 8GR
	United Kingdom

COMPANY NUMBER

02871670 (England and Wales)

CHARTERED ACCOUNTANTS	Albert Goodman LLP
	Goodwood House
	Blackbrook Park Avenue
	Taunton
	Somerset
	TA1 2PX

	Note	2021		2020
		£		£
Fixed assets
Tangible assets	3	773,855		606,319
		773,855		606,319
Current assets
Stocks	4	168,202		304,247
Debtors	5	1,028,155		1,312,306
Cash at bank and in hand		484,921		332,182
		1,681,278		1,948,735
Creditors
Amounts falling due within one year	6	( 1,260,357)		( 540,277)
Net current assets		420,921		1,408,458
Total assets less current liabilities		1,194,776		2,014,777
Creditors
Amounts falling due after more than one year	7	( 277,206)		( 597,721)
Provisions for liabilities	8	( 63,099)		( 100,054)
Net assets		854,471		1,317,002
Capital and reserves
Called-up share capital		1,000		1,000
Profit and loss account		853,471		1,316,002
Total shareholder's funds		854,471		1,317,002

For the financial year ending 31 December 2021 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The members have not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Profit and Loss Account has not been delivered.

The financial statements of Coker Engineering Limited (registered number: 02871670) were approved and authorised for issue by the Board of Directors on 06 June 2022. They were signed on its behalf by:

Jayzee Michelle Jane Boyne Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Coker Engineering Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Coker Close, Heathfield Park, Taunton, TA2 8GR, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the company and rounded to the nearest £.

Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Balance Sheet date are reported at the rates of exchange prevailing at that date.

Exchange differences are recognised in the Profit and Loss Account in the period in which they arise except for exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.

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.

Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.

Employee benefits

Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Profit and Loss Account in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Balance Sheet.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date that are expected to apply when the timing differences reverse. Deferred tax assets and liabilities are not discounted.

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. Deferred tax liabilities are presented within provisions for liabilities on the balance sheet.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Plant and machinery	4 - 7 years straight line
Office equipment	4 - 5 years straight line
Computer equipment	3 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

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.

Leases

The Company as lessee
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Profit and Loss Account over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account as described below.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

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.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in creditors: amounts falling due within one year.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost. 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.

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.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Loans and borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Assets held under hire purchase agreements are capitalised as tangible fixed assets with the future obligation being recognised as a liability. Finance costs are recognised in the Profit and Loss Account calculated at a constant periodic rate of interest over the term of the liability.

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 other operating income over the period in which the related costs are recognised, and timing differences are presented as other debtors or deferred income within the balance sheet. 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.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Ordinary share capital

The ordinary share capital of the Company is presented as equity.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

2. Employees

	2021		2020
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	25		22

3. Tangible assets

	Plant and machinery		Office equipment		Computer equipment		Total
	£		£		£		£
Cost
At 01 January 2021	2,739,085		56,076		64,651		2,859,812
Additions	385,500		0		569		386,069
At 31 December 2021	3,124,585		56,076		65,220		3,245,881
Accumulated depreciation
At 01 January 2021	2,158,987		33,880		60,626		2,253,493
Charge for the financial year	208,942		7,874		1,717		218,533
At 31 December 2021	2,367,929		41,754		62,343		2,472,026
Net book value
At 31 December 2021	756,656		14,322		2,877		773,855
At 31 December 2020	580,098		22,196		4,025		606,319

4. Stocks

	2021		2020
	£		£
Stocks	127,102		267,047
Work in progress	41,100		37,200
	168,202		304,247

5. Debtors

	2021		2020
	£		£
Trade debtors	537,303		402,670
Amounts owed by Group undertakings	412,292		0
Other debtors	78,560		909,636
	1,028,155		1,312,306

6. Creditors: amounts falling due within one year

	2021		2020
	£		£
Trade creditors	1,021,958		335,109
Other creditors	19,299		11,814
Other taxation and social security	19,350		11,630
Obligations under finance leases and hire purchase contracts	199,750		181,724
	1,260,357		540,277

Post balance sheet events

Included in trade creditors is a balance of £385,903 owed to a supplier which predominantly relates to the purchase of plant and machinery during the year. Since the year end the company has taken out £322,500 of hire purchase finance against the assets with a 5 year repayment term to settle the liability and better match future cash outflows with the anticipated cash inflows which the Directors expect to be generated from this asset.

7. Creditors: amounts falling due after more than one year

	2021		2020
	£		£
Bank loans	0		200,000
Obligations under finance leases and hire purchase contracts (secured)	277,206		397,721
	277,206		597,721

Finance lease liabilities are secured against plant and machinery with a carrying value of £393,607 (2020 - £494,773). The finance lease liabilities are secured on the assets to which they relate.

8. Provision for liabilities

	2021		2020
	£		£
Deferred tax	63,099		100,054

9. Financial commitments

Other financial commitments

	2021		2020
	£		£
	1,382,322		1,508,584

These amounts relate to an omnibus guarantee entered into by the company with Lloyds Bank plc in respect of any liability of Coker Holdings Limited.

10. Related party transactions

Transactions with the entity's directors

Advances

J M Boyne

The directors loan account is repayable on demand and interest is charged on overdrawn balances exceeding £10,000 at the official HMRC rates.

At 1 January 2021, the balance owed by the director was £nil. During the year, £1,801 was advanced to the director, and £1,064 was repaid by the director. At 31 December 2021, the balance owed by the director was £737.

At 1 January 2020, the balance owed by the director was £nil. During the year, £nil was advanced to the director, and £nil was repaid by the director. At 31 December 2020, the balance owed by the director was £nil.

11. Government grants

During the year other income of £20,236 (2020 - £103,472) was received from the government under the coronavirus job retention scheme. In addition a further small business grant of £7,500 (2020 - £5,000) was received during the year. The amount of grants recognised in the financial statements was £27,736 (2020 - £108,472).

12. Ultimate controlling party

Parent Company:

Coker Holdings Limited

Coker Close, Heathfield Park, Taunton, Somerset, TA2 8GR

These financial statements are available upon request from Companies House, Crown Way, Cardiff, CF14 3UZ.