Didsbury Engineering Co.limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 00371191 (England and Wales)

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

FOR

DIDSBURY ENGINEERING CO.LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Mr N G Harvey

Mr G W Harvey

Mr N F Smith

REGISTERED OFFICE:

Laurence Walter House

Addison Road

Chilton Industrial Estate

Sudbury

Suffolk

CO10 2YW

REGISTERED NUMBER:

00371191 (England and Wales)

AUDITORS:

Raffingers LLP, Statutory Auditor

Chartered Certified Accountants

19-20 Bourne Court

Southend Road

Woodford Green

Essex

IG8 8HD

FIXED ASSETS

Intangible assets

4

42,522

-

Tangible assets

5

107,605

128,179

150,127

128,179

CURRENT ASSETS

Stocks

696,331

988,129

Debtors

6

10,289,999

10,597,940

Cash at bank and in hand

2,649,330

1,866,149

13,635,660

13,452,218

CREDITORS

Amounts falling due within one year

7

1,015,948

1,429,719

NET CURRENT ASSETS

12,619,712

12,022,499

TOTAL ASSETS LESS CURRENT LIABILITIES

12,769,839

12,150,678

PROVISIONS FOR LIABILITIES

19,229

22,871

NET ASSETS

12,750,610

12,127,807

CAPITAL AND RESERVES

Called up share capital

82,000

82,000

Retained earnings

12,668,610

12,045,807

SHAREHOLDERS' FUNDS

12,750,610

12,127,807

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 4 May 2022 and were signed on its behalf by:

Mr G W Harvey - Director

1.	STATUTORY INFORMATION

Didsbury Engineering Co.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.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

Going concern

The directors have also considered the effects of Covid-19 on its operations for the foreseeable future. After making appropriate enquiries and assessing the support available, the directors have formed a judgement that the entity will have sufficient resources available to neutralise the effect of the pandemic.

Turnover

Turnover represents the invoiced value of goods and services supplied to external customers, excluding value added tax. Turnover is recognised and a debtor recorded as accrued income once all obligations under the sales order have been performed.

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

The company assesses at each reporting date whether tangible fixed assets are impaired.

Depreciation is charged to the profit and loss account on a straight-line basis over the estimated useful lives of each part of an item of tangible fixed assets. Leased assets are depreciated over the shorter of the lease term and their useful lives. The estimated useful lives are as follows:

Plant, equipment and vehicles 10-33.3%

Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since last annual reporting date in the pattern by which the company expects to consume an asset's future economic benefits.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Provision is made for damaged, obsolete and slow moving stock where appropriate.

Financial instruments

Basic financial assets, including trade and other receivables and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

Basic financial liabilities, including trade and other payables, bank loans and loans from fellow Group companies, are initially recognised at transaction price.

Debt instruments are recognised at initial transaction price.

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.

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.

Government grants

Government grants, including non-monetary grants shall not be recognised until there is reasonable assurance that:

(a) the entity will comply with the conditions attaching to them; and

(b) the grants will be received.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 30 (2020 - 30 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 November 2020

45,491

Additions

52,503

At 31 October 2021

97,994

AMORTISATION

At 1 November 2020

45,491

Charge for year

9,981

At 31 October 2021

55,472

NET BOOK VALUE

At 31 October 2021

42,522

At 31 October 2020

-

5.	TANGIBLE FIXED ASSETS

Short

Plant and

Computer

leasehold

machinery

equipment

Totals

£

£

£

£

COST

At 1 November 2020

92,921

353,629

128,428

574,978

Additions

10,481

-

3,027

13,508

At 31 October 2021

103,402

353,629

131,455

588,486

DEPRECIATION

At 1 November 2020

30,548

293,394

122,857

446,799

Charge for year

9,857

19,444

4,781

34,082

At 31 October 2021

40,405

312,838

127,638

480,881

NET BOOK VALUE

At 31 October 2021

62,997

40,791

3,817

107,605

At 31 October 2020

62,373

60,235

5,571

128,179

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

1,575,731

2,039,897

Amounts owed by group undertakings

7,822,994

7,747,094

Other debtors

891,274

810,949

10,289,999

10,597,940

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade creditors

292,195

607,481

Amounts owed to group undertakings

250,985

232,585

Taxation and social security

70,507

61,696

Other creditors

402,261

527,957

1,015,948

1,429,719

8.	SECURED DEBTS

Clydesdale Bank has a fixed and floating charge over the assets of the company.

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

The Report of the Auditors was unqualified.

Mr Paul Dell FCA (Senior Statutory Auditor)

for and on behalf of Raffingers LLP, Statutory Auditor

10.	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.

During the year the company supplied services to a company under common control on normal commercial terms amounting to £34,191 (2020: £12,208). The balance outstanding at the year end amounted to £9,846 (2020: £1,589).

During the year the company also received services from a company under common control amounting to £185,921 (2020: £515,456) and the balance outstanding at the year end amounted to £779 (2020:£34,838).

At the year end, total loans due to the company by related parties under common control amounted to £466,667 (2020: £466,667).

11.	FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES

In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.

12.	AUDITOR LIABILITY LIMITATION AGREEMENT

The company has entered into a liability limitation agreement with Raffingers, the statutory auditor, in respect of the statutory audit for the year ended 31 October 2021. The proportionate liability agreement follows the standard terms in Appendix B to the Financial Reporting Council's June 2008 Guidance on Auditor Liability Agreements, and was approved by the directors on 21 January 2022.

13.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Mr N F Smith and Mr G W Harvey.