Company No: 05870564 (England and Wales)

Contents

• Statement of Financial Position
• Notes to the Financial Statements

	Note	2022		2021
		£		£
Fixed assets
Intangible assets	3	5,162		0
Tangible assets	4	368,091		1,701,741
		373,253		1,701,741
Current assets
Stocks		1,400,919		1,102,692
Debtors	5	904,672		867,107
Cash at bank and in hand		469,701		902,996
		2,775,292		2,872,795
Creditors: amounts falling due within one year	6	( 600,927)		( 1,225,709)
Net current assets		2,174,365		1,647,086
Total assets less current liabilities		2,547,618		3,348,827
Creditors: amounts falling due after more than one year	7	( 99,999)		( 94,539)
Provision for liabilities		( 75,639)		( 115,055)
Net assets		2,371,980		3,139,233
Capital and reserves
Called-up share capital	9	166,667		166,667
Share premium account		102,420		102,420
Profit and loss account		2,102,893		2,870,146
Total shareholder's funds		2,371,980		3,139,233

For the financial year ending 31 October 2022 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The member has 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 and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Statement of Income and Retained Earnings has not been delivered.

The financial statements of Leafield Marine Limited (registered number: 05870564) were approved and authorised for issue by the Director on 28 February 2023. They were signed on its behalf by:

D L Dickins Director

I W Mountain 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

Leafield Marine 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 9 Atworth Business Park, Bath Road, Atworth, Melksham, SN12 8SB, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and 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 £.

Going concern

The directors have assessed the Statement of Financial Position and likely future cash flows at the date of approving these financial statements. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

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 Statement of Financial Position date are reported at the rates of exchange prevailing at that date.

Exchange differences are recognised in the Statement of Income and Retained Earnings 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.

Interest income

Interest income is recognised when it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.

Employee benefits

Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Statement of Income and Retained Earnings 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 Statement of Financial Position.

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 Statement of Financial Position date.

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 average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. 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.

Intangible assets

Intangible assets are stated at cost or valuation, net of amortisation and any provision for impairment. Amortisation is provided on all intangible assets at rates to write off the cost or valuation of each asset over its expected useful life as follows:

Trademarks, patents and licences

5 years straight line

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. Depreciation is provided on all tangible fixed assets, other than investment properties and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line basis over its expected useful life, as follows:

Land and buildings	15 years straight line
Leasehold improvements	10 years straight line
Plant and machinery	4 - 10 years straight line
Tools and equipment	4 - 10 years straight line
Office equipment	4 - 10 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.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Statement of Financial Position date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Income and Retained Earnings 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.

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.

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.

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 Statement of Financial Position 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.

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.

Research and development

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

2. Employees

	2022		2021
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	53		52

3. Intangible assets

	Trademarks, patents and licences		Total
	£		£
Cost
At 01 November 2021	0		0
Additions	5,736		5,736
At 31 October 2022	5,736		5,736
Accumulated amortisation
At 01 November 2021	0		0
Charge for the financial year	574		574
At 31 October 2022	574		574
Net book value
At 31 October 2022	5,162		5,162
At 31 October 2021	0		0

4. Tangible assets

	Land and buildings		Leasehold improve- ments		Plant and machinery		Tools and equipment		Office equipment		Total
	£		£		£		£		£		£
Cost
At 01 November 2021	1,302,092		242,529		759,158		698,925		190,332		3,193,036
Additions	0		5,250		56,244		30,086		4,811		96,391
Revaluations	512,300		0		0		0		0		512,300
Disposals	( 1,814,392)		( 247,779)		( 245,546)		( 741)		( 7,453)		( 2,315,911)
At 31 October 2022	0		0		569,856		728,270		187,690		1,485,816
Accumulated depreciation
At 01 November 2021	269,295		85,876		454,890		514,260		166,974		1,491,295
Charge for the financial year	61,107		21,890		64,844		43,297		11,203		202,341
Disposals	( 330,402)		( 107,766)		( 129,549)		( 741)		( 7,453)		( 575,911)
At 31 October 2022	0		0		390,185		556,816		170,724		1,117,725
Net book value
At 31 October 2022	0		0		179,671		171,454		16,966		368,091
At 31 October 2021	1,032,797		156,653		304,268		184,665		23,358		1,701,741

5. Debtors

	2022		2021
	£		£
Trade debtors	777,336		725,528
Prepayments	42,879		34,178
Derivative financial instruments	9,011		37,807
VAT recoverable	16,733		21,680
Other debtors	58,713		47,914
	904,672		867,107

6. Creditors: amounts falling due within one year

	2022		2021
	£		£
Trade creditors	446,541		432,678
Amounts owed to Parent undertakings	3,918		483,520
Accruals and deferred income	54,764		75,526
Corporation tax	34,020		145,918
Other taxation and social security	40,026		33,202
Other creditors	21,658		54,865
	600,927		1,225,709

Amounts owed to Group undertakings are repayable on demand and do not bear interest.

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

	2022		2021
	£		£
Other loans	99,999		94,539

There are no amounts included above in respect of which any security has been given by the small entity.

Other loans represent:

A conditional grant from the Rural Development Fund of £94,539 for England toward the company's building extension project. The grant is conditional on the long term creation of new jobs and will be treated as a liability until the conditions are met in accordance with the company's accounting policy on performance related grants.

A conditional grant from the European Regional Development Fund of £5,460 for innovation and growth. The grant is conditional on the creation of 1 new job in the business.

8. Derivative financial instruments

	Due within one year			Due after one year
	2022		2021		2022		2021
	£		£		£		£
Financial assets included at fair value (included in debtors)
Forward contracts	9,011		37,807		0		0

As at 31 October 2022 the company had outstanding derivative financial instruments (forward foreign exchange contracts). A fair value revaluation of the contracts was made as at 31 October 2022 creating a financial asset and a corresponding profit of £9,011 (2021: £37,807)

The forward currency contracts are measured at fair value, which is determined using valuation techniques that utilise observable inputs. The key assumptions used in valuing the derivatives are the forward exchange rates for GBP:DDK.

9. Called-up share capital

	2022		2021
	£		£
Allotted, called-up and fully-paid
600,000 Ordinary A shares of £ 0.25 each	150,000		150,000
66,666 Ordinary C shares of £ 0.25 each	16,667		16,667
	166,667		166,667

10. Financial commitments

Pensions

The Company operates a defined contribution pension scheme for the directors and employees. The assets of the scheme are held separately from those of the Company in an independently administered fund.

	2022		2021
	£		£
Unpaid contributions due to the fund (inc. in other creditors)	11,536		12,167

11. Related party transactions

The company has taken advantage of the exemption available under FRS 102 S1A.C.35 to not disclose transactions with other entities within a wholly owned group.