Don Valley Engineering Company Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 00439915 (England and Wales)

Don Valley Engineering Company Limited

Financial Statements For The Year Ended 31 July 2021

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

R Baker

I Trotter

L Ashurst

S Doleman

A Priestley

REGISTERED OFFICE:

Sandall Stones Road

Kirk Sandall

Doncaster

DN3 1QR

REGISTERED NUMBER:

00439915 (England and Wales)

SENIOR STATUTORY AUDITOR:

Steven Pepper FCA

AUDITORS:

Allotts Business Services Ltd, Statutory Auditor

Chartered Accountants

Sidings Court

Lakeside

Doncaster

South Yorkshire

DN4 5NU

BANKERS:

Barclays Bank plc

14 Commercial Street

Sheffield

South Yorkshire

S1 2AT

FIXED ASSETS

Intangible assets

4

-

-

Tangible assets

5

101,066

95,708

Investments

6

-

185,830

101,066

281,538

CURRENT ASSETS

Stocks

7

652,609

685,982

Debtors

8

4,131,791

2,091,465

Cash at bank and in hand

1,759,752

903,787

6,544,152

3,681,234

CREDITORS

Amounts falling due within one year

9

4,819,589

2,502,218

NET CURRENT ASSETS

1,724,563

1,179,016

TOTAL ASSETS LESS CURRENT LIABILITIES

1,825,629

1,460,554

CREDITORS

Amounts falling due after more than one year

10

232,384

931

NET ASSETS

1,593,245

1,459,623

CAPITAL AND RESERVES

Called up share capital

12

180,500

180,500

Retained earnings

1,412,745

1,279,123

SHAREHOLDERS' FUNDS

1,593,245

1,459,623

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 17 January 2022 and were signed on its behalf by:

A Priestley - Director

1.	STATUTORY INFORMATION

Don Valley Engineering Company 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.

Turnover

Turnover is the total value of work completed in the year together with the value of incomplete contracts for the supply and installation of goods. Maintenance works, manufactured goods and commissions are recognised upon completion and delivery as appropriate.

In assessing the likely outcome of contracts, account is taken of overhead recovery and any expected costs to complete the contract and for subsequent works necessary under the contract to cover warranty and reworking.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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 & machinery

-

33.33% on cost, 20% on cost and 10% on cost

Motor vehicles

-

33.33% on reducing balance

Fixed assets are valued at their cost less accumulated depreciation. Depreciation is charged following the month of acquisition.

Investments in associates

Investments in associate undertakings are recognised at cost less any provision for impairment.

Stock and work in progress

Stock is valued at cost less a deduction for slow moving, damaged or obsolete stock. The directors consider the obsolescence policy annually in the light of the company's current operations and stockholding strategy. Materials stocks are written down by up to 100% of the cost of each item depending upon the sales of each item within the previous 24 months. The current provisions are considered adequate to reduce its value to that which will be recoverable in the ordinary course of its present and future activities taking into account the period of holding and the expected future sales.

Work in progress represents the cost of labour and materials expended, plus an appropriate charge for overheads in respect of the manufacture of products and work undertaken over short periods which the company has not completed or delivered at the balance sheet date.

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 in respect of the directors and the employees. The assets of the scheme are held by trustees separately from the company's assets. The charge for pensions in the accounts represents the amount payable by the company in the year.

Grants

Grants received in respect of revenue expenditure are credited to the profit and loss account in the year to which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 36 (2020 - 32 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 August 2020

and 31 July 2021

72,510

AMORTISATION

At 1 August 2020

and 31 July 2021

72,510

NET BOOK VALUE

At 31 July 2021

-

At 31 July 2020

-

5.	TANGIBLE FIXED ASSETS

Plant &

Motor

machinery

vehicles

Totals

£

£

£

COST

At 1 August 2020

577,439

175,333

752,772

Additions

33,851

17,291

51,142

Disposals

(67,012

)

(25,294

)

(92,306

)

At 31 July 2021

544,278

167,330

711,608

DEPRECIATION

At 1 August 2020

515,785

141,279

657,064

Charge for year

24,129

11,439

35,568

Eliminated on disposal

(57,975

)

(24,115

)

(82,090

)

At 31 July 2021

481,939

128,603

610,542

NET BOOK VALUE

At 31 July 2021

62,339

38,727

101,066

At 31 July 2020

61,654

34,054

95,708

6.	FIXED ASSET INVESTMENTS

Interest

in

associate

£

COST

At 1 August 2020

and 31 July 2021

371,661

PROVISIONS

At 1 August 2020

185,831

Impairments

185,830

At 31 July 2021

371,661

NET BOOK VALUE

At 31 July 2021

-

At 31 July 2020

185,830

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Associated company

Beijing Don Valley Technology Corporation

Registered office: No.7 Juyuan West Road, Mapo Town, Shunyi District, Beijing, China.

Nature of business: Mechanical, structural and general engineering

%

Class of shares:

holding

Ordinary

20.00

A joint venture agreement was entered into on 12 September 2012. The value of the company's investment was $520,000 with a share premium of $78,449.

Don Valley Engineering Company Limited served notice on the Chinese JV partners to terminate the JV agreement. A resolution with the JV partners was agreed to liquidate the JV company and current advice is that the JV company has been liquidated. The company is in the course of recovery of its share of the distribution from the JV partners. Prudently the directors have impaired the book value further in the year.

7.

STOCKS

2021

2020

£

£

Raw materials & consumables

13,020

13,048

Work-in-progress

267,113

319,614

Finished goods

372,476

353,320

652,609

685,982

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

3,588,784

926,942

Other debtors

860

310,761

Amounts recoverable on contracts

499,971

803,661

Prepayments and accrued income

42,176

50,101

4,131,791

2,091,465

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Bank loans and overdrafts

17,616

-

Hire purchase contracts

931

3,724

Trade creditors

2,402,471

1,364,875

Amounts owed to group undertakings

244,445

513,362

Social security and other taxes

385,242

26,447

Other creditors

281,474

439,550

Payments on account

1,401,103

68,054

Accrued expenses

86,307

86,206

4,819,589

2,502,218

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Bank loans - 1-2 years

56,081

-

Bank loans - 2-5 years

176,303

-

Hire purchase contracts

-

931

232,384

931

11.	SECURED DEBTS

The following secured debts are included within creditors:

2021

2020

£

£

Hire purchase contracts

931

4,655

The hire purchase contracts are secured on the assets to which the contracts relate.

12.	CALLED UP SHARE CAPITAL

Allotted and issued:

Number:

Class:

Nominal

2021

2020

value:

£

£

3,610,000

Ordinary

£0.05

180,500

180,500

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

The Report of the Auditors was unqualified.

Steven Pepper FCA (Senior Statutory Auditor)

for and on behalf of Allotts Business Services Ltd, Statutory Auditor

14.	CONTINGENT LIABILITIES

The company has a contingent liability in respect of performance guarantees given, with recourse, by the bank to customers of this company. The maximum amount of the liability not provided for in these accounts is £494,992 in total, consisting of £171,800 expiring in August 2021, £50,375 expiring in June 2022, £12,471 expiring in July 2022 and £260,346 expiring in March 2023 (2020: £24,942). No liability had arisen at the date of approval of these financial statements.

There is in place a cross guarantee and debenture between the company and the parent undertaking, Don Valley Engineering Group Limited and four other subsidiaries of the parent undertaking, Don Valley Engineering Construction Limited, Cleeve Materials Handling Limited, Don Valley Engineering Holdings Limited and Don Valley Materials Handling Limited dated 27 March 2019. At the balance sheet date there was there was a total indebtedness to the group's bankers of £1,194,165 (2020:£1,220,475). Against this debt, at the balance sheet date the group had total cash deposits with the group's bankers of £2,103,244 (2020:£1,520,938).

15.	RELATED PARTY DISCLOSURES

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.

16.	PARENT UNDERTAKING AND ULTIMATE HOLDING COMPANY

The parent undertaking and ultimate holding company is Don Valley Engineering Group Limited, a private company, limited by shares, registered in England and Wales. The registered office is; Sandall Stones Road, Kirk Sandall, Doncaster, DN3 1QR.

17.

COVID-19

Continued measures of covid rules are regularly announced by the UK government. The directors consider that the measures they have implemented and the continual revision of these measures in line with government guidelines will enable the business to continue to operate as safely as possible. The continued success and support of the DVE group in addition to government support will enable DVE to continue to deal with future potential lockdown measures.