Pike Hall Developments Limited - Limited company accounts 22.3

PIKE HALL DEVELOPMENTS LIMITED - Company Information

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REGISTERED NUMBER: 10596503 (England and Wales)

PIKE HALL DEVELOPMENTS LIMITED

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022

Page

Company Information

Group Strategic Report

Report of the Director

Report of the Independent Auditors

Consolidated Income Statement

Consolidated Other Comprehensive Income

Consolidated Statement of Financial Position

Company Statement of Financial Position

Consolidated Statement of Changes in Equity

Company Statement of Changes in Equity

Consolidated Statement of Cash Flows

Notes to the Consolidated Statement of Cash Flows

Notes to the Consolidated Financial Statements

DIRECTOR:

T R Docker

REGISTERED OFFICE:

The Exchange

5 Bank Street

Bury

BL9 0DN

REGISTERED NUMBER:

10596503 (England and Wales)

AUDITORS:

DTE Business Advisers Limited

Chartered Accountants

Statutory Auditors

The Exchange

5 Bank Street

Bury

BL9 0DN

The director presents his strategic report of the company and the group for the year ended 31 October 2022.

REVIEW OF BUSINESS

The results for the period and financial position of the group are shown in the annexed financial statements.

The director is satisfied with the relative stable turnover and results achieved in the year. These have been achieved despite the continuing difficulties facing the GRP and motor industry. As in the prior year, the sales are generated from a mix between customers and the company's own brands.

The group's gross profit margin fluctuates year on year due to a number of factors including:

- Raw materials prices impacting the purchase price of goods

- The sales mix of product type sold

- Competition discounted prices

Going forward, the director believes that it will be very difficult to sustain the current year's results but they will aim to do so by improving the product range and building on strong relationships with customers.

PRINCIPAL RISKS AND UNCERTAINTIES

The main ongoing risks facing the group are falling demand, wage rises and bad debts.

The GRP and motor industry is highly competitive and if vehicle chassis are being under-supplied a general downturn in trade quickly occurs, along with increased pressure from customers in relation to prices. The current downturn in consumer spending will continue to put sales under pressure over the next twelve months. Demand may be further impacted by unseasonal weather patterns.

Falling demand - the director aims to work closely with main customers to mitigate this risk and to source new customers, and also to continually offer new product designs.

Rising cost of raw materials and manufacturing cost - price increases will be passed on to customers where possible to help mitigate against this risk.

Bad debt risk - As higher manufacturing costs have taken effect customers continue to suffer and the risk of bad debts is expected to increase in the coming year. The directors operate a strong credit control function, impose strict credit limits and continually monitor balances owed.

KEY PERFORMANCE INDICATORS

The key performance indicators used by the directors are:

i) Monthly sales data - which is compared to results in the prior year

ii) Monthly sales ledger - which is is analysed by age of balance

iii) Profit margins on a product by product basis

FUTURE DEVELOPMENTS

Trading since the year end has continued to be challenging, in light of the war in Ukraine and the cost of living crisis. However the group has taken steps to mitigate the effects of these challenges.

ON BEHALF OF THE BOARD:

T R Docker - Director

8 March 2023

The director presents his report with the financial statements of the company and the group for the year ended 31 October 2022.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the manufacture of specialist commercial vehicle, engineering and general fibreglass mouldings. The principal activity of the company is as a holding company to the trading subsidiary.

DIVIDENDS

No dividends will be distributed for the year ended 31 October 2022.

DIRECTOR

T R Docker held office during the whole of the period from 1 November 2021 to the date of this report.

DISCLOSURE IN THE STRATEGIC REPORT

Identification of the information for which the company has chosen, in accordance with s414C(11) of the Companies Act, to set out in the company's strategic report which would otherwise be required by Schedule 7 of the 'Large and Medium-sized Companies and groups (Accounts and Reports) regulations 2008' to be contained in the director's report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

DTE Business Advisers Limited has indicated its willingness to be reappointed for another term and appropriate arrangements are being made for it to be deemed reappointed as auditor in the absence of an Annual General Meeting.

ON BEHALF OF THE BOARD:

T R Docker - Director

8 March 2023

Opinion

We have audited the financial statements of Pike Hall Developments Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 October 2022 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the director is responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of our planning process:

- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud.

- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, and Health & Safety legislation including that relating to fire safety and hazardous substances.

- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.

Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

- Identifying and testing journal entries, in particular those that were significant and unusual.

- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to depreciation and fair value of investment properties.

- Assessing the extent of compliance with, or lack thereof, relevant laws and regulations.

- Testing key revenue lines for evidence of management bias, and cut-off testing for completeness of income.

- Performing walkthrough testing to test controls and for evidence of management bias.

- Performing a physical verification of key assets, including stock.

- Obtaining third-party confirmation of material bank and loan balances.

- Documenting and verifying all significant related party balances and transactions.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors of the entity.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Richard Taylor (Senior Statutory Auditor)

for and on behalf of DTE Business Advisers Limited

Chartered Accountants

Statutory Auditors

The Exchange

5 Bank Street

Bury

BL9 0DN

9 March 2023

PIKE HALL DEVELOPMENTS LIMITED (REGISTERED NUMBER: 10596503)

CONSOLIDATED

INCOME STATEMENT

FOR THE YEAR ENDED 31 OCTOBER 2022

2022

2021

(Unaudited)

Notes

REVENUE

6,977,359

6,166,024

Cost of sales

(4,018,361

)

(3,399,822

)

GROSS PROFIT

2,958,998

2,766,202

Administrative expenses

(1,190,038

)

(929,518

)

1,768,960

1,836,684

Other operating income

35,220

22,717

OPERATING PROFIT

1,804,180

1,859,401

Interest receivable and similar income

5,072

1,726

1,809,252

1,861,127

Gain/loss on revaluation of investments

(112,428

)

109,497

1,696,824

1,970,624

Interest payable and similar expenses

(24,944

)

(9,762

)

PROFIT BEFORE TAXATION

1,671,880

1,960,862

Tax on profit

(356,926

)

(308,893

)

PROFIT FOR THE FINANCIAL YEAR

1,314,954

1,651,969

Profit attributable to:

Owners of the parent

1,314,954

1,651,969

PIKE HALL DEVELOPMENTS LIMITED (REGISTERED NUMBER: 10596503)

CONSOLIDATED

OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 OCTOBER 2022

2022

2021

(Unaudited)

Notes

PROFIT FOR THE YEAR

1,314,954

1,651,969

OTHER COMPREHENSIVE INCOME

TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,314,954

1,651,969

Total comprehensive income attributable to:

Owners of the parent

1,314,954

1,651,969

FIXED ASSETS

Intangible assets

(115,453

)

Tangible assets

482,071

493,969

Investments

1,014,456

Investment property

585,955

171,032

2,082,482

549,548

CURRENT ASSETS

Inventories

103,138

180,051

Debtors

2,157,018

1,608,346

Investments

1,126,884

Cash at bank and in hand

4,730,208

4,258,826

6,990,364

7,174,107

CREDITORS

Amounts falling due within one year

(1,490,982

)

(1,496,367

)

NET CURRENT ASSETS

5,499,382

5,677,740

TOTAL ASSETS LESS CURRENT
LIABILITIES

7,581,864

6,227,288

PROVISIONS FOR LIABILITIES

(91,593

)

(51,971

)

NET ASSETS

7,490,271

6,175,317

CAPITAL AND RESERVES

Called up share capital

100

Retained earnings

7,490,171

6,175,217

SHAREHOLDERS' FUNDS

7,490,271

6,175,317

The financial statements were approved by the director and authorised for issue on 8 March 2023 and were signed by:

T R Docker - Director

FIXED ASSETS

Intangible assets

Tangible assets

Investments

1,014,523

Investment property

585,955

171,032

1,600,478

171,099

CURRENT ASSETS

Debtors

349,150

Investments

1,126,884

Cash at bank

3,569,343

3,469,322

3,918,493

4,945,356

CREDITORS

Amounts falling due within one year

(8,836

)

(5,685

)

NET CURRENT ASSETS

3,909,657

4,939,671

TOTAL ASSETS LESS CURRENT
LIABILITIES

5,510,135

5,110,770

CAPITAL AND RESERVES

Called up share capital

100

Retained earnings

5,510,035

5,110,670

SHAREHOLDERS' FUNDS

5,510,135

5,110,770

Company's profit for the financial year

399,365

2,107,814

The financial statements were approved by the director and authorised for issue on 8 March 2023 and were signed by:

T R Docker - Director

Called up

Retained

Total

capital

earnings

equity

Balance at 1 November 2020

100

4,523,248

4,523,348

Changes in equity

Total comprehensive income

1,651,969

Balance at 31 October 2021

100

6,175,217

6,175,317

Changes in equity

Total comprehensive income

1,314,954

Balance at 31 October 2022

100

7,490,171

7,490,271

Called up

Retained

Total

capital

earnings

equity

Balance at 1 November 2020

100

3,002,856

3,002,956

Changes in equity

Total comprehensive income

2,107,814

Balance at 31 October 2021

100

5,110,670

5,110,770

Changes in equity

Total comprehensive income

399,365

Balance at 31 October 2022

100

5,510,035

5,510,135

Cash flows from operating activities

Cash generated from operations

1,296,833

1,624,294

Interest paid

(24,944

)

(9,762

)

Tax paid

(350,009

)

(167,763

)

Net cash from operating activities

921,880

1,446,769

Cash flows from investing activities

Purchase of tangible fixed assets

(49,686

)

(117,809

)

Purchase of fixed asset investments

(500,000

)

Purchase of investment property

(414,923

)

Sale of tangible fixed assets

4,000

Interest received

5,072

1,726

Net cash from investing activities

(459,537

)

(612,083

)

Cash flows from financing activities

Amount introduced by director

9,039

540,187

Net cash from financing activities

9,039

540,187

Increase in cash and cash equivalents

471,382

1,374,873

Cash and cash equivalents at beginning of
year

4,258,826

2,883,953

Cash and cash equivalents at end of year

4,730,208

4,258,826

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2022

2021

(Unaudited)

Profit before taxation

1,671,880

1,960,862

Depreciation charges

(53,869

)

(158,990

)

Profit on disposal of fixed assets

(331

)

Loss/(gain) on revaluation of fixed assets

112,428

(109,497

)

Finance costs

24,944

9,762

Finance income

(5,072

)

(1,726

)

1,750,311

1,700,080

Decrease/(increase) in inventories

76,913

(86,094

)

Increase in trade and other debtors

(548,672

)

(197,727

)

Increase in trade and other creditors

18,281

208,035

Cash generated from operations

1,296,833

1,624,294

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 October 2022

31.10.22

1.11.21

Cash and cash equivalents

4,730,208

4,258,826

Year ended 31 October 2021

31.10.21

1.11.20

(Unaudited)

Cash and cash equivalents

4,258,826

2,883,953

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.11.21

Cash flow

At 31.10.22

Net cash

Cash at bank and in hand

4,258,826

471,382

4,730,208

4,258,826

471,382

4,730,208

Liquid resources

Current asset investments

1,126,884

(1,126,884

)

1,126,884

(1,126,884

)

Total

5,385,710

(655,502

)

4,730,208

1.	STATUTORY INFORMATION

Pike Hall Developments Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 10596503 and its registered office address is The Exchange, 5 Bank Street, Bury, BL9 0DN.

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Basis of consolidation

The financial statements consolidate Pike Hall Developments Group and its subsidiary undertaking Hilton Docker Mouldings Limited.

The subsidiary undertaking is included in the group accounts using the acquisition method.

Significant judgements and estimates

In the application of the group's accounting policies, the director is required to make estimates and judgements. The estimates are based on historical experience and other relevant factors. Actual results may differ from these estimates.

The estimates are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Estimating the useful economic life of an asset and the anticipated residual value are considered a key judgement in calculating an appropriate depreciation and amortisation charge.

Determining the fair value of investment properties is considered a key judgement.

Revenue

Revenue comprises the aggregate of the fair value of the sale of goods, net of value-added tax.

Revenue is recognised when the company has delivered products to the customer, the customer has accepted the products and collection of the related receivables is anticipated. For moulds retained for production, revenue is recognised when the company has carried out an appropriate level of testing on the mould and has deemed it satisfactorily completed for use in production.

Rental income

Rental income comprises the aggregate of the fair value of the rental services provided. Rental income is recognised as those services are provided to the occupants of the property.

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.

Negative goodwill are being amortised evenly over their estimated useful life of five years.

Property, plant and equipment

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

2% on cost

Improvements to property

2% on cost

Plant and machinery

20% on reducing balance

Fixtures and fittings

20% on reducing balance

Motor vehicles

25% on reducing balance

Computer equipment

33% on reducing balance

The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in the income statement when the change arises.

Included in land and buildings is freehold land which is not depreciated.

Government grants

Grants are accounted for under the accruals model as permitted by FRS 102.

During the year the group has benefitted from the Government 'Made Smarter' grant scheme for the development of industrial design technologies. This income has been recognised in "other income" in the same period as the related fixed assets additions costs.

The company has not directly benefitted from any other forms of government assistance.

Investment property

Investment property is shown at fair value determined by the director using observable market data and external valuations. Any aggregate surplus or deficit arising from changes in fair value is recognised in the income statement.

Inventories

Raw materials and consumables are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is calculated on the first in, first out basis and includes all direct expenditure and an appropriate proportion of fixed and variable overheads. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

Amounts recoverable on contract

Goods in production comprising amounts recoverable on contract are valued at between 25-80% of anticipated sales price, depending on their stage of completion and including estimates of impairment.

Financial instruments

The group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable.

Financial assets that are measured at cost and amortised cost 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 the income statement.

Basic financial liabilities are initially measured at transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Leasing commitments

Rentals paid under operating leases are charged to the income statement as incurred.

REVENUE

The revenue and profit before taxation are attributable to the one principal activity of the group, and arose entirely within the UK.

4.	EMPLOYEES AND DIRECTORS

2022

2021

(Unaudited)

Wages and salaries

2,339,265

2,137,935

Other pension costs

76,965

42,094

2,416,230

2,180,029

The average number of employees during the year was as follows:

2022

2021

(Unaudited)

Production

Administration

Director

2022

2021

(Unaudited)

Director's remuneration

69,515

58,284

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2022

2021

(Unaudited)

Depreciation - owned assets

61,584

71,918

Profit on disposal of fixed assets

(331

)

Negative goodwill amortisation

(115,453

)

(230,908

)

Auditors' remuneration

14,500

Government grants

(19,568

)

(12,367

)

Other operating leases

220,411

185,910

INTEREST PAYABLE AND SIMILAR EXPENSES

2022

2021

(Unaudited)

Interest on director's

current account

24,944

9,762

24,944

9,762

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2022

2021

(Unaudited)

Current tax:

UK corporation tax

317,304

301,700

Over provision in prior year

(830

)

Total current tax

317,304

300,870

Deferred tax:

Accelerated capital allowances

39,622

8,023

Tax on profit

356,926

308,893

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2022

2021

(Unaudited)

Profit before tax

1,671,880

1,960,862

Profit multiplied by the standard rate of corporation tax in the UK of 19 %
(2021 - 19 %)

317,657

372,564

Effects of:

Expenses not deductible for tax purposes

(2,816

)

(41,597

)

Income not taxable for tax purposes

(20,485

)

Capital allowances in excess of depreciation

(759

)

Depreciation in excess of capital allowances

2,463

Adjustments to tax charge in respect of previous periods

(830

)

Movement in deferred tax

39,622

Total tax charge

356,926

308,893

8.	INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.

9.	INTANGIBLE FIXED ASSETS

Group

Negative

goodwill

COST

At 1 November 2021

and 31 October 2022

(1,154,538

)

AMORTISATION

At 1 November 2021

(1,039,085

)

Amortisation for year

(115,453

)

At 31 October 2022

(1,154,538

)

NET BOOK VALUE

At 31 October 2022

At 31 October 2021

(115,453

)

10.	PROPERTY, PLANT AND EQUIPMENT

Group

Improvements

Freehold

Plant and

property

machinery

COST

At 1 November 2021

220,441

32,076

363,620

Additions

8,266

At 31 October 2022

220,441

32,076

371,886

DEPRECIATION

At 1 November 2021

12,069

252,213

Charge for year

642

22,880

At 31 October 2022

12,711

275,093

NET BOOK VALUE

At 31 October 2022

220,441

19,365

96,793

At 31 October 2021

220,441

20,007

111,407

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

COST

At 1 November 2021

94,300

272,047

52,109

1,034,593

Additions

2,414

39,006

49,686

At 31 October 2022

96,714

272,047

91,115

1,084,279

DEPRECIATION

At 1 November 2021

81,950

153,027

41,365

540,624

Charge for year

2,832

29,755

5,475

61,584

At 31 October 2022

84,782

182,782

46,840

602,208

NET BOOK VALUE

At 31 October 2022

11,932

89,265

44,275

482,071

At 31 October 2021

12,350

119,020

10,744

493,969

Included in cost of land and buildings is freehold land of £25,547 (2021 - £25,547) which is not depreciated.

11.	FIXED ASSET INVESTMENTS

The company's investment in its subsidiary is recognised at cost less any permanent diminution in value.

The fixed asset investments portfolio is held at fair value. Any aggregate surplus or deficit arising from changes in fair value is recognised in the income statement.

12.	INVESTMENT PROPERTY

Group

Total

FAIR VALUE

At 1 November 2021

171,032

Additions

414,923

At 31 October 2022

585,955

NET BOOK VALUE

At 31 October 2022

585,955

At 31 October 2021

171,032

Company

Total

FAIR VALUE

At 1 November 2021

171,032

Additions

414,923

At 31 October 2022

585,955

NET BOOK VALUE

At 31 October 2022

585,955

At 31 October 2021

171,032

The investment properties have been valued by the director at fair value using observable market data as at 31 October 2022. The historic cost of the investment properties is £585,955 (2021: £171,032).

13.	INVENTORIES

Group

2022

2021

(Unaudited

Inventories

103,138

180,051

14.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2022

2021

2022

2021

(Unaudited)

Trade debtors

2,003,326

1,538,101

Amounts owed by group undertakings

349,150

Amounts recoverable on contracts

96,600

Other debtors

1,679

20,507

Prepayments

55,413

49,738

2,157,018

1,608,346

349,150

15.	CURRENT ASSET INVESTMENTS

Group

Company

2022

2021

2022

2021

(Unaudited)

Listed investments

1,126,884

The current assets have been transferred to fixed asset investments following a change to investment strategy. In the prior year investments were valued by the director at fair value using market value as at 31 October 2021.

The original cost of the current asset investment was £1,000,000.

16.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2022

2021

2022

2021

(Unaudited)

Trade creditors

381,006

396,936

Corporation tax

164,000

196,705

Social security and other taxes

261,008

231,219

Other creditors

42,313

50,405

Director's current account

558,954

549,915

5,086

5,085

Accrued expenses

83,701

71,187

3,750

600

1,490,982

1,496,367

8,836

5,685

17.	SECURED DEBTS

The following secured debts are included within creditors:

Group

2022

2021

(Unaudited

Director's current account

558,954

549,915

The director's current account is secured by way of a fixed charge over the goodwill of the group and a floating charge over all the assets of the company.

18.	PROVISIONS FOR LIABILITIES

Group

2022

2021

(Unaudited

Deferred tax

Accelerated capital allowances

91,593

51,971

Group

Deferred

tax

Balance at 1 November 2021

51,971

Provided during year

39,622

Balance at 31 October 2022

91,593

19.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

100

Ordinary

£1

100

20.	ULTIMATE CONTROLLING PARTY

The controlling party is T R Docker.