ACCOUNTS - Final Accounts

ACCOUNTS - Final Accounts

BOZEAT INDUSTRIAL LIMITED - Company Information

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Registered number: 01228801










BOZEAT INDUSTRIAL LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2022
 
BOZEAT INDUSTRIAL LIMITED
 

CONTENTS



Page
Company Information
 
1
Strategic Report
 
2 - 3
Directors' Report
 
4 - 5
Independent Auditor's Report
 
6 - 9
Statement of Income and Retained Earnings
 
10
Balance Sheet
 
11
Statement of Cash Flows
 
12
Analysis of Net Debt
 
13
Notes to the Financial Statements
 
14 - 24

 
BOZEAT INDUSTRIAL LIMITED
 
 
COMPANY INFORMATION


Directors
J V Matcham 
K P Matcham 
L J V Matcham 
A H V Matcham 




Company secretary
K P Matcham



Registered number
01228801



Registered office
Unit 1
Crane Close

Denington Industrial Estate

Wellingborough

Northants

NN8 2QG




Independent auditor
MHA
Chartered Accountants & Statutory Auditors

Moorgate House

201 Silbury Boulevard

Milton Keynes

Buckinghamshire

MK9 1LZ




Bankers
Barclays Bank Plc
8 Market Street

Wellingborough

Northamptonshire

NN8 1AP




Page 1
 
BOZEAT INDUSTRIAL LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2022

Introduction
 
The Directors present their report and the financial statements for the year ended 30 September 2022.

Business review
 
The company’s principal activity continues to be the design, development, manufacture and provision of systems, components, and spares, plus the refurbishment of said items, in support of the UK Defence sector.   The company also produces parts for earth moving vehicles used in the construction industry and components for coach, bus, and truck builders and commercial ground care equipment manufacturers. 
Turnover was higher this year as business activity continued to increase following the slight  market stagnation due to Covid and associated issues. Although Covid affected raw material supplies eased, there were still areas where stocks were difficult to procure combined with goods affected by the Ukraine conflict and special agreements had to be in place to secure supplies, at a reasonable rate to satisfy customer demand.  Customers were understanding of this global factor and compromises were made to ensure continuity of supply.  One mitigating factor being customer’s forward scheduling of requirements enabling the company to forward purchase raw materials in larger quantities where possible. 
Employee levels began to grow again, with training and apprenticeship schemes being a priority. Consultant aided activities were brought back totally in house during the year with the engagement of new members of staff.  Their contribution to Quality, Health, Safety, Environmental and Personnel matters is proving beneficial and will expand going forward.
It is the resolution of the Directors to increase production levels, control housekeeping and continue investment in personnel and training, new plant, equipment, and technology. The company remains flexible in the marketplace with a developing product and customer base, particularly in the commercial sector. The company is also committed to maintaining and increasing its Social Values activities and support for the benefit of the local community.

Principal risks and uncertainties
 
Changing procurement methods in the defence and commercial sectors, due to national and international influences, must be absorbed by the company but the directors are confident of the company meeting the challenges.  Supply is still a risk factor and the directors envisage it will be for some time to come, especially with regards to raw material shortages and price rises.  

Key performance indicators
 
In all instances it is the company’s intention to produce quality products, delivered on time at a competitive price.  Working alongside our customers, understanding and considering their requirements and giving the expected service is of paramount importance.    
The company had an excellent year with trading profits increasing by 97% over the prior year.  Trading profit increased from £344,409 to £679,329. The company’s cash balances have increased by 79% over the prior year to £1,865,826.
The Directors use the following measures to monitor the financial performance of the Company:

Page 2
 
BOZEAT INDUSTRIAL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022

2022
2021
£
£



Turnover
8,316,735
6,756,831

Gross profit
2,269,209
1,927,870

Administrative expenses and interest
(1,589,880)
(1,583,461)

Trading profit
679,329
344,409

Tax on (loss)/profit
(127,218)
(71,735)

Trading profit after tax
552,111
272,674

Non recurring loan waiver
(1,402,129)
-

Result after waiver
(819,718)
272,674

Turnover has increased by £1,559,904 (23%) from £6,756,831 to £8,316,735.
Gross profit has increased by £341,339 (18%) from £1,927,870 to £2,269,209.
Administrative and other expenses were held in line with the previous year at £1,590,747 (2021: £1,583,461).
Trading profit has increased by £334,053 (97%) compared to the previous year.
During year the Directors agreed to waive a loan due from a related party. This reduced profit by £1,402,129 in the year. 


This report was approved by the board and signed on its behalf.



................................................
K P Matcham
Director

Date: 29 June 2023

Page 3
 
BOZEAT INDUSTRIAL LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2022

The Directors present their report and the financial statements for the year ended 30 September 2022.

Directors' responsibilities statement

The Directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

 In preparing these financial statements, the Directors are required to:


∙select suitable accounting policies for the company's financial statements and then apply them consistently;

∙make judgments 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 Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation, amounted to £850,018 (2021 - profit £272,674).

Dividends were paid in the current year of £296,000 (2021: £255,000).

Directors

The Directors who served during the year were:

J V Matcham 
B Matcham (resigned 7 March 2023)
K P Matcham 
L J V Matcham 
A H V Matcham 

Future developments

The Company continues to trade in line with previous years, with no significant changes in the business.

Page 4
 
BOZEAT INDUSTRIAL LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022

Disclosure of information to auditor

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
 
∙so far as the Director is aware, there is no relevant audit information of which the company's auditor is unaware, and

∙the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the company's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end. 

Auditor

Following a rebranding exercise on 15 May 2023 the trading name of the company’s independent auditor changed from MHA MacIntyre Hudson to MHA. A resolution to reappoint MHA as independent auditor will be proposed at the next Annual General Meeting. 

This report was approved by the board and signed on its behalf.
 





................................................
K P Matcham
Director

Date: 29 June 2023


Page 5
 
BOZEAT INDUSTRIAL LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BOZEAT INDUSTRIAL LIMITED
 

Opinion


We have audited the financial statements of Bozeat Industrial Limited (the 'company') for the year ended 30 September 2022, which comprise the Statement of Income and Retained Earnings, the Balance Sheet, the Statement of Cash Flows and the related notes, 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 company's affairs as at 30 September 2022 and of its loss 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Directors' 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 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 Directors with respect to going concern are described in the relevant sections of this report.





Page 6
 
BOZEAT INDUSTRIAL LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BOZEAT INDUSTRIAL LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditor's Report thereon.  The Directors are responsible for the other information contained within the Annual Report.  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. 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 course of 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.


Opinion 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 Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


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


∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of Directors' remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, the Directors are 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 Directors determine is 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 Directors are responsible for assessing the 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 Directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.


Page 7
 
BOZEAT INDUSTRIAL LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BOZEAT INDUSTRIAL LIMITED (CONTINUED)


Auditor's 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 an Auditor's Report 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.


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:

•    enquiry of management around actual and potential litigation and claims;
•    performing audit work over the risk of management override of controls, including testing of journals entries
     and other adjustments for appropriateness, evaluating the business rationale of significant transactions
     outside the normal course of business and reviewing accounting estimates for bias;
•    reviewing financial statement disclosures and testing to supporting documentation to assess compliance
     with applicable laws and regulations.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditor's Report.


Page 8
 
BOZEAT INDUSTRIAL LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BOZEAT INDUSTRIAL LIMITED (CONTINUED)


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 an Auditor's Report 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.





Steven Moore BA ACA (Senior Statutory Auditor)
for and on behalf of
MHA
Statutory Auditors
Milton Keynes, United Kingdom

Date: 
 
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)29 June 2023
Page 9
 
BOZEAT INDUSTRIAL LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

2022
2021
Note
£
£

  

Turnover
 4 
8,316,735
6,756,831

Cost of sales
  
(6,047,526)
(4,828,961)

Gross profit
  
2,269,209
1,927,870

Distribution costs
  
(30,116)
(36,056)

Administrative expenses - reoccuring
  
(1,560,631)
(1,547,537)

Administrative expenses - nonrecurring
 8 
(1,402,129)
-

Operating (loss)/profit
  
(723,667)
344,277

Interest receivable and similar income
  
867
132

(Loss)/profit before tax
  
(722,800)
344,409

Tax on (loss)/profit
 9 
(127,218)
(71,735)

(Loss)/profit after tax
  
(850,018)
272,674

  

  

Retained earnings at the beginning of the year
  
4,876,637
4,858,963

(Loss)/profit for the year
  
(850,018)
272,674

Dividends declared and paid
  
(296,000)
(255,000)

Retained earnings at the end of the year
  
3,730,619
4,876,637
There were no recognised gains and losses for 2022 or 2021 other than those included in the statement of income and retained earnings.

The notes on pages 14 to 24 form part of these financial statements.

Page 10
 
BOZEAT INDUSTRIAL LIMITED
REGISTERED NUMBER: 01228801

BALANCE SHEET
AS AT 30 SEPTEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Tangible assets
 11 
1,175,235
1,102,610

Current assets
  

Stocks
 12 
887,683
994,364

Debtors: amounts falling due within one year
 13 
1,161,841
3,194,160

Cash at bank and in hand
 14 
1,865,826
1,041,389

  
3,915,350
5,229,913

Creditors: amounts falling due within one year
 15 
(1,322,442)
(1,417,885)

Net current assets
  
 
 
2,592,908
 
 
3,812,028

Total assets less current liabilities
  
3,768,143
4,914,638

Provisions for liabilities
  

Deferred tax
 16 
(29,524)
(30,001)

  
 
 
(29,524)
 
 
(30,001)

Net assets
  
3,738,619
4,884,637


Capital and reserves
  

Called up share capital 
 17 
8,000
8,000

Profit and loss account
 18 
3,730,619
4,876,637

  
3,738,619
4,884,637


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 



................................................
J V Matcham
................................................
K P Matcham
Director
Director


Date: 29 June 2023

The notes on pages 14 to 24 form part of these financial statements.

Page 11
 
BOZEAT INDUSTRIAL LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

2022
2021
£
£

Cash flows from operating activities

(Loss)/profit for the financial year
(850,018)
272,674

Adjustments for:

Depreciation of tangible assets
184,418
159,278

Loss on disposal of tangible assets
(31,367)
(19,004)

Interest received
(867)
(132)

Taxation charge
127,218
71,735

Decrease/(increase) in stocks
106,681
(338,832)

Decrease/(increase) in debtors
2,032,319
(800,596)

(Decrease) in creditors
(146,330)
(406,443)

Corporation tax (paid)
(76,808)
(104,020)

Net cash generated from operating activities

1,345,246
(1,165,340)


Cash flows from investing activities

Purchase of tangible fixed assets
(313,649)
(111,935)

Sale of tangible fixed assets
87,973
509,004

Interest received
867
132

Net cash from investing activities

(224,809)
397,201

Cash flows from financing activities

Dividends paid
(296,000)
(255,000)

Net cash used in financing activities
(296,000)
(255,000)

Net increase/(decrease) in cash and cash equivalents
824,437
(1,023,139)

Cash and cash equivalents at beginning of year
1,041,389
2,064,528

Cash and cash equivalents at the end of year
1,865,826
1,041,389


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,865,826
1,041,389


The notes on pages 14 to 24 form part of these financial statements.

Page 12
 
BOZEAT INDUSTRIAL LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 SEPTEMBER 2022




At 1 October 2021
Cash flows
At 30 September 2022
£

£

£

Cash at bank and in hand

1,041,389

824,437

1,865,826

Directors loan accounts

(62,755)

(24,325)

(87,080)


The notes on pages 14 to 24 form part of these financial statements.

Page 13
 
BOZEAT INDUSTRIAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

1.


General information

Bozeat Industrial Limited is a private Company limited by shares incorporated and domiciled in England and Wales.
The Company's registered number is 01228801 and its registered office and principal place of business is Unit 1, Crane Close, Denington Road Industrial Estate, Wellingborough, Northamptonshire, NN8 2QG.
The financial statements are presented in Sterling, which is also the functional currency of the Company, and rounded to the nearest whole £1.
The principal activity of the Company is the design, development, manufacture and refurbishment of systems and components for the coach, truck, bus and construction vehicle industries and the defence sector.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).

The following principal accounting policies have been applied:

  
2.2

Going concern

The financial statements have been prepared on a going concern basis. The Directors have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. 
Based on these assessments and having regard to the resources available to the entity, the Directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and accounts.

Page 14
 
BOZEAT INDUSTRIAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙the company has transferred the significant risks and rewards of ownership to the buyer;
∙the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.4

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
over 50 years
Plant and machinery
-
over 7 years
Motor vehicles
-
over 4 years
Office equipment
-
over 7 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.5

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 15
 
BOZEAT INDUSTRIAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

2.Accounting policies (continued)

 
2.6

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.7

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

 
2.8

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

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 Statement of Income and Retained Earnings.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

 
2.9

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.10

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.11

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.

Page 16
 
BOZEAT INDUSTRIAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

2.Accounting policies (continued)

 
2.12

Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the company in independently administered funds.

 
2.13

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.14

Provisions for liabilities

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

 
2.15

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 17
 
BOZEAT INDUSTRIAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

2.Accounting policies (continued)

 
2.16

Administrative expenses - nonrecurring

Nonrecurring items are transactions that do not fall within the ordinary activities of the company.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies management is required to make judgments, estimates and assumptions about the carrying values of assets and liabilities that are not readily separated from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis and revisions are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
There are no key judgments. The key estimates are depreciation and percentage completion of work in progress. 


4.


Turnover

Turnover is attributable to the principal activity of the Company, and arose within the United Kingdom.


5.


Auditor's remuneration

2022
2021
£
£

Fees payable to the company's auditor for the audit of the company's financial statements
23,000
23,000

.


Fees payable to the company's auditor in respect of:

Taxation compliance services

2,780

2,000
 
Other services relating to taxation

3,708

3,678
 
All other assurance services

3,150

3,000
 
All other services

19,069

25,877
 
28,707

34,555
 

Page 18
 
BOZEAT INDUSTRIAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

6.


Employees

Staff costs, including Directors' remuneration, were as follows:


2022
2021
£
£

Wages and salaries
2,386,047
2,113,537

Social security costs
231,926
188,710

Cost of defined contribution scheme
49,082
60,890

2,667,055
2,363,137


The average monthly number of employees, including the Directors, during the year was as follows:


        2022
        2021
            No.
            No.







Weekly employees
71
65



Monthly employees
19
20

90
85


7.


Directors' remuneration

2022
2021
£
£

Directors' emoluments
305,468
304,074


The highest paid Director received remuneration of £104,998 (2021 - £105,700).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £NIL (2021 - £NIL).

The Directors consider that there are no members of key management personnel, other than the Directors.


8.


Administrative expenses - nonrecurring

2022
2021
£
£


Loan waiver
1,402,129
-

Page 19
 
BOZEAT INDUSTRIAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

9.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
127,695
76,808


Deferred tax


Origination and reversal of timing differences
(477)
(5,073)


Taxation on profit on ordinary activities
127,218
71,735

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2021 - higher than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:

2022
2021
£
£


(Loss)/profit on ordinary activities before tax
(722,800)
344,409


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
(137,332)
65,438

Effects of:


Capital allowances for year in excess of depreciation
4,587
14,981

Non-trade items added back
266,405
-

Movement in deferred tax
(477)
(5,073)

Non-taxable income
(5,965)
(3,611)

Total tax charge for the year
127,218
71,735


Factors that may affect future tax charges

The UK tax rate will increase to 25% from 1 April 2023.


10.


Dividends

2022
2021
£
£


Dividends paid
296,000
255,000

Page 20
 
BOZEAT INDUSTRIAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

11.


Tangible fixed assets





Freehold property
Plant and machinery
Motor vehicles
Office equipment
Total

£
£
£
£
£



Cost


At 1 October 2021
1,150,936
1,069,037
422,662
65,860
2,708,495


Additions
-
73,606
220,060
19,983
313,649


Disposals
-
-
(135,473)
(12,465)
(147,938)



At 30 September 2022

1,150,936
1,142,643
507,249
73,378
2,874,206



Depreciation


At 1 October 2021
404,119
880,840
282,323
38,603
1,605,885


Charge for the year
18,984
68,836
87,000
9,627
184,447


Disposals
-
-
(78,896)
(12,465)
(91,361)



At 30 September 2022

423,103
949,676
290,427
35,765
1,698,971



Net book value



At 30 September 2022
727,833
192,967
216,822
37,613
1,175,235



At 30 September 2021
746,817
188,197
140,339
27,257
1,102,610

Included in freehold property is land costing £200,000 (2021 - £200,000) which is not depreciated.

Page 21
 
BOZEAT INDUSTRIAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

12.


Stocks

2022
2021
£
£

Raw materials
446,527
477,954

Work in progress
441,156
516,410

887,683
994,364



13.


Debtors

2022
2021
£
£


Trade debtors
911,438
1,495,051

Other debtors
168,545
1,633,969

Prepayments and accrued income
81,858
65,140

1,161,841
3,194,160



14.


Cash and cash equivalents

2022
2021
£
£

Cash at bank and in hand
1,865,826
1,041,389



15.


Creditors: Amounts falling due within one year

2022
2021
£
£

Trade creditors
777,522
971,341

Corporation tax
127,695
76,808

Other taxation and social security
230,804
70,177

Other creditors
157,792
195,967

Accruals and deferred income
28,629
103,592

1,322,442
1,417,885


Page 22
 
BOZEAT INDUSTRIAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

16.


Deferred taxation




2021
2021


£

£






At beginning of year
(30,001)
(35,074)


Charged to profit or loss
477
5,073



At end of year
(29,524)
(30,001)

The provision for deferred taxation is made up as follows:

2022
2021
£
£


Accelerated capital allowances
29,524
30,001


17.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



8,000 (2021 - 8,000) Ordinary shares of £1 each
8,000
8,000



18.


Reserves

Profit and loss account

The profit and loss account contains all current and prior year retained profits and losses less dividends paid.


19.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund.
The pension cost charge represents contributions payable by the Company to the fund and amounted to £49,082 (2021 - £60,890). There were no contributions outstanding at either period end date.

Page 23
 
BOZEAT INDUSTRIAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022

20.


Transactions with directors

At the Balance Sheet date the following balances were due from / (due to) Directors by way of directors' loan accounts and are included in other debtors / (other creditors):
J V & K P Matcham  £137,243 (2021 - £162,587). 
B Matcham £(7,580) (2021 - £2,049). 
A H V Matcham £16,802 (2021 - £42,359). 
L J V Matcham £(79,500) (2021 - £(62,755)). 
No interest is charged and there are no set terms for repayment.


21.


Related party transactions

Woodford House Estate Limited - Company with common Directors
Costs of £332 (2021 - £1,464) were recharged by the Company to Woodford House Estate Limited during the year.
The amount due to the Company at the year end was £-nil (2021 - £3,694) and is included within other debtors. There is no interest charged and no set terms for repayment.

Burfield Investments Limited - Company with common Directors
At 30 September 2021 Other debtors included £1,408,889 due from Burfield Investments Limited. An amount of £1,402,129 was waived during the year ended 30 September 2022. The closing balance at 30 September 2022 outstanding is £-nil.

Bozeat Industrial Directors Retirement Plan - Directors pension scheme
Rent of £30,718 (2021 - £30,718) was paid by the Company to the Bozeat Industrial Directors Retirement Plan during the year.
The amount due from the Company at the year end was £-nil (2021 - £-nil). 

Dividends to Directors
During the year dividends amounting to £296,000 (2021 - £255,000) were paid to Directors in their capacity as Shareholders.


22.


Controlling party

The ultimate controlling party is J V Matcham and K P Matcham by virtue of their majority share holding ownership of the Company. 

 
Page 24