ACCOUNTS - Final Accounts

Operating profit

The operating profit is stated after charging:

HOLROYD COMPONENTS LIMITED - Company Information

Caseware UK (AP4) 2022.0.179 2022.0.179 2022-11-302022-11-30false1211082021-12-01No description of principal activityfalsefalse 01083975 2021-12-01 2022-11-30 01083975 2020-12-01 2021-11-30 01083975 2022-11-30 01083975 2021-11-30 01083975 2021-12-01 01083975 2020-12-01 01083975 4 2021-12-01 2022-11-30 01083975 4 2020-12-01 2021-11-30 01083975 5 2021-12-01 2022-11-30 01083975 5 2020-12-01 2021-11-30 01083975 d:Director1 2021-12-01 2022-11-30 01083975 d:RegisteredOffice 2021-12-01 2022-11-30 01083975 e:Buildings e:ShortLeaseholdAssets 2021-12-01 2022-11-30 01083975 e:Buildings e:ShortLeaseholdAssets 2022-11-30 01083975 e:Buildings e:ShortLeaseholdAssets 2021-11-30 01083975 e:PlantMachinery 2021-12-01 2022-11-30 01083975 e:PlantMachinery 2022-11-30 01083975 e:PlantMachinery 2021-11-30 01083975 e:PlantMachinery e:OwnedOrFreeholdAssets 2021-12-01 2022-11-30 01083975 e:MotorVehicles 2021-12-01 2022-11-30 01083975 e:MotorVehicles 2022-11-30 01083975 e:MotorVehicles 2021-11-30 01083975 e:MotorVehicles e:OwnedOrFreeholdAssets 2021-12-01 2022-11-30 01083975 e:FurnitureFittings 2021-12-01 2022-11-30 01083975 e:FurnitureFittings 2022-11-30 01083975 e:FurnitureFittings 2021-11-30 01083975 e:FurnitureFittings e:OwnedOrFreeholdAssets 2021-12-01 2022-11-30 01083975 e:OtherPropertyPlantEquipment 2021-12-01 2022-11-30 01083975 e:OtherPropertyPlantEquipment 2022-11-30 01083975 e:OtherPropertyPlantEquipment 2021-11-30 01083975 e:OtherPropertyPlantEquipment e:OwnedOrFreeholdAssets 2021-12-01 2022-11-30 01083975 e:OwnedOrFreeholdAssets 2021-12-01 2022-11-30 01083975 e:CurrentFinancialInstruments 2022-11-30 01083975 e:CurrentFinancialInstruments 2021-11-30 01083975 e:CurrentFinancialInstruments e:WithinOneYear 2022-11-30 01083975 e:CurrentFinancialInstruments e:WithinOneYear 2021-11-30 01083975 e:UKTax 2021-12-01 2022-11-30 01083975 e:UKTax 2020-12-01 2021-11-30 01083975 e:ShareCapital 2022-11-30 01083975 e:ShareCapital 2021-11-30 01083975 e:RetainedEarningsAccumulatedLosses 2021-12-01 2022-11-30 01083975 e:RetainedEarningsAccumulatedLosses 2022-11-30 01083975 e:RetainedEarningsAccumulatedLosses 2020-12-01 2021-11-30 01083975 e:RetainedEarningsAccumulatedLosses 2021-11-30 01083975 e:RetainedEarningsAccumulatedLosses 2020-12-01 01083975 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2022-11-30 01083975 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2021-11-30 01083975 e:FinancialAssetsAmortisedCost 2022-11-30 01083975 e:FinancialAssetsAmortisedCost 2021-11-30 01083975 e:FinancialLiabilitiesAmortisedCost 2022-11-30 01083975 e:FinancialLiabilitiesAmortisedCost 2021-11-30 01083975 e:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2021-12-01 2022-11-30 01083975 e:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2022-11-30 01083975 d:OrdinaryShareClass1 2021-12-01 2022-11-30 01083975 d:OrdinaryShareClass1 2022-11-30 01083975 d:OrdinaryShareClass1 2021-11-30 01083975 d:OrdinaryShareClass2 2021-12-01 2022-11-30 01083975 d:OrdinaryShareClass2 2022-11-30 01083975 d:OrdinaryShareClass2 2021-11-30 01083975 d:OrdinaryShareClass3 2021-12-01 2022-11-30 01083975 d:OrdinaryShareClass3 2022-11-30 01083975 d:OrdinaryShareClass3 2021-11-30 01083975 d:FRS102 2021-12-01 2022-11-30 01083975 d:Audited 2021-12-01 2022-11-30 01083975 d:FullAccounts 2021-12-01 2022-11-30 01083975 d:PrivateLimitedCompanyLtd 2021-12-01 2022-11-30 01083975 e:WithinOneYear 2022-11-30 01083975 e:WithinOneYear 2021-11-30 01083975 e:BetweenOneFiveYears 2022-11-30 01083975 e:BetweenOneFiveYears 2021-11-30 01083975 e:MoreThanFiveYears 2022-11-30 01083975 e:MoreThanFiveYears 2021-11-30 01083975 e:AcceleratedTaxDepreciationDeferredTax 2022-11-30 01083975 e:AcceleratedTaxDepreciationDeferredTax 2021-11-30 01083975 2 2021-12-01 2022-11-30 01083975 6 2021-12-01 2022-11-30 01083975 2 2022-11-30 01083975 2 2021-11-30 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 01083975

HOLROYD COMPONENTS LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2022

HOLROYD COMPONENTS LIMITED

COMPANY INFORMATION

Director	D C Taylor


Registered Number	01083975


Registered Office	Shire Hill Industrial Estate
	Saffron Walden
	Essex
	CB11 3AQ


Independent Auditors	Price Bailey LLP
	Chartered Accountants & Statutory Auditors
	Causeway House
	1 Dane Street
	Bishop's Stortford
	Hertfordshire
	CM23 3BT

HOLROYD COMPONENTS LIMITED

CONTENTS

	Page
Strategic Report	1
Director's Report	2 - 3
Independent Auditors' Report	4 - 6
Statement of Income and Retained Earnings	7
Statement of Financial Position	8
Statement of Cash Flows	9
Analysis of Net Debt	10
Notes to the Financial Statements	11 - 25

HOLROYD COMPONENTS LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 30 NOVEMBER 2022

Introduction

The Company is engaged in the business of manufacturing heating elements.

Business review

Holroyd is a firmly established business with many elements of risk management in its business assurance systems to maintain their financial security and place in the market.
The Company has had another successful year and is confident about prospects for 2023.

Principal risks and uncertainties

Risks and uncertainties mainly relate to market share and non-payment; these are controlled by market analysis and strict credit control. Other risks are addressed by continual monitoring, root cause analysis and management reviews to action corrective and preventive actions. This information is evident and provided in the minutes of the Company’s Annual Management Review that covers the continual improvement of business, process efficiency, employee, health, safety, environmental and social aspects.

Financial key performance indicators

The principal financial goals of the Company are growth, profitability and cash generation.
The Director is pleased to note the increase in gross margin from 45.5% to 50.0% which reflects on the efforts made during the year to operate more efficiently.
Distribution expenses have increased by 14.9% however, administrative expenses are flat and turnover has increased by 10.2% leading to an overall increase in profit before tax of 36.5% which highlights the success of the Company this year.

This Report was approved by the Director.

D C Taylor

Director

Date: 9 August 2023

Page 1

HOLROYD COMPONENTS LIMITED

DIRECTOR'S REPORT

FOR THE YEAR ENDED 30 NOVEMBER 2022

The Director presents his report and the financial statements for the year ended 30 November 2022.

Results and dividends

The profit for the year, after taxation, amounted to £4,242,315 (2021 - £3,122,251).

Director

The Director who served during the year was:

D C Taylor

Future developments

The Director anticipates no significant changes in the Company's activities in the foreseeable future.

Disclosure of information to Auditors

The Director at the time when this Director's Report is approved has confirmed that:

∙so far as he is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙he 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 auditors are aware of that information.

Auditors

Under section 487(2) of the Companies Act 2006, Price Bailey LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

Page 2

HOLROYD COMPONENTS LIMITED

DIRECTOR'S REPORT (CONTINUED)

FOR THE YEAR ENDED 30 NOVEMBER 2022

Director's responsibilities statement

The Director is responsible for preparing the Strategic Report, the Director's Report 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 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 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 of the profit or loss of the Company for that period.

In preparing these financial statements, the Director is 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 Director is 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Director is responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Director's Reports may differ from legislation in other jurisdictions.

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

D C Taylor

Director

Date: 9 August 2023

Page 3

HOLROYD COMPONENTS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HOLROYD COMPONENTS LIMITED

Opinion

We have audited the financial statements of Holroyd Components Limited (the 'Company') for the year ended 30 November 2022, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position, 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 November 2022 and of its 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 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 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 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 other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Director is 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.

Page 4

HOLROYD COMPONENTS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HOLROYD COMPONENTS LIMITED (CONTINUED)

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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic Report and the Director's 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 Director's 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 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 directors

As explained more fully in the Director's Responsibilities Statement set out on page 3, 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 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 Director is 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 Director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Page 5

HOLROYD COMPONENTS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HOLROYD COMPONENTS LIMITED (CONTINUED)

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 an Auditors' 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, and any known instances of non-compliance;
- Reviewing minutes of meetings of those charged with governance;
- Performing audit work over the risk of management override of controls, including testing of journal 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; and
- Reviewing our work throughout the audit file for evidence of non-compliance.
Due to factors such as the use of judgement, sample testing and the inherent limitations of internal control, these procedures are capable of obtaining reasonable, but not absolute, assurance that irregularities have been detected.

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 Auditors' Report.

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 Auditors' 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.

Paul Cullen (Senior Statutory Auditor)

for and on behalf of

Price Bailey LLP

Chartered Accountants

Statutory Auditors

Causeway House

1 Dane Street

Bishop's Stortford

Hertfordshire

CM23 3BT

Date: 10 August 2023

Page 6

HOLROYD COMPONENTS LIMITED

STATEMENT OF INCOME AND RETAINED EARNINGS

FOR THE YEAR ENDED 30 NOVEMBER 2022

	2022	2021
Note	£	£


Turnover	4	17,071,677	15,479,078
Cost of sales		(8,540,758)	(8,437,821)
Gross profit		8,530,919	7,041,257
Distribution costs		(609,295)	(530,251)
Administrative expenses		(2,728,621)	(2,729,994)
Other operating income	5	2,571	28,630
Operating profit	6	5,195,574	3,809,642
Interest receivable and similar income	10	11,414	4,799
Interest payable and similar expenses	11	(504)	-
Profit before tax		5,206,484	3,814,441
Tax on profit	12	(964,169)	(692,190)
Profit after tax		4,242,315	3,122,251



Retained earnings at the beginning of the year	16,633,622	14,611,871
Profit for the year	4,242,315	3,122,251
Dividends declared and paid	-	(1,100,500)
Retained earnings at the end of the year	20,875,937	16,633,622

The notes on pages 11 to 25 form part of these financial statements.

Page 7

HOLROYD COMPONENTS LIMITED

REGISTERED NUMBER: 01083975

STATEMENT OF FINANCIAL POSITION

AS AT 30 NOVEMBER 2022

		2022		2021
Note		£		£

Fixed assets
Tangible assets	14		3,032,668		2,741,721
Investments	15		7,081		7,081
			3,039,749		2,748,802
Current assets
Stocks	16	497,670		500,079
Debtors: amounts falling due within one year	17	6,022,020		4,588,048
Current asset investments	18	3,350,000		-
Cash at bank and in hand	19	9,369,314		9,934,747
		19,239,004		15,022,874
Creditors: amounts falling due within one year	20	(957,980)		(864,431)
Net current assets			18,281,024		14,158,443
Total assets less current liabilities			21,320,773		16,907,245
Provisions for liabilities
Deferred tax	22	(369,734)		(273,521)
Other provisions	23	(75,000)		-
			(444,734)		(273,521)
Net assets			20,876,039		16,633,724

Capital and reserves
Called up share capital	24	102	102
Profit and loss account		20,875,937	16,633,622
		20,876,039	16,633,724

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

D C Taylor

Director

Date: 9 August 2023

The notes on pages 11 to 25 form part of these financial statements.

Page 8

HOLROYD COMPONENTS LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 NOVEMBER 2022

			2022	2021
			£	£

Cash flows from operating activities
Profit for the financial year	4,242,315	3,122,251
Adjustments for:
Depreciation of tangible assets	611,073	517,636
Loss on disposal of tangible assets	(6,518)	11,325
Interest paid	504	-
Interest received	(11,414)	(4,799)
Taxation charge	964,169	692,190
Decrease in stocks	2,409	118,849
(Increase)/decrease in debtors	(1,449,431)	167,678
(Decrease)/increase in creditors	(166,826)	474,885
Increase in provisions	75,000	-
Corporation tax (paid)	(616,188)	(840,040)
Net cash generated from operating activities	3,645,093	4,259,975

Cash flows from investing activities
Purchase of tangible fixed assets	(878,336)	(1,205,034)
Sale of tangible fixed assets	6,900	8,598
Interest received	11,414	4,799
Net cash from investing activities	(860,022)	(1,191,637)
Cash flows from financing activities
Dividends paid	-	(1,100,500)
Interest paid	(504)	-
Net cash used in financing activities	(504)	(1,100,500)
Net increase in cash and cash equivalents	2,784,567	1,967,838
Cash and cash equivalents at beginning of year	9,934,747	7,966,909
Cash and cash equivalents at the end of year	12,719,314	9,934,747

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	9,369,314	9,934,747
Short-term sterling fixed deposits	3,350,000	-
	12,719,314	9,934,747

The notes on pages 11 to 25 form part of these financial statements.

Page 9

HOLROYD COMPONENTS LIMITED

ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 30 NOVEMBER 2022


At 1 December 2021	Cash flows	At 30 November 2022
£	£	£

Cash at bank and in hand	9,934,747	(565,433)	9,369,314
Short-term sterling fixed deposits	-	3,350,000	3,350,000
	9,934,747	2,784,567	12,719,314

The notes on pages 11 to 25 form part of these financial statements.

Page 10

HOLROYD COMPONENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2022

1.	General information

Holroyd Components Limited is a private company limited by shares, incorporated in England and Wales with the registered number 01083975. Its Registered Office is Shire Hill Industrial Estate, Saffron Walden, Essex CB11 3AQ.

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

Revenue

Turnover from the sale of goods is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover from the sale of goods 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 turnover is recognised:

Sale of goods

Turnover from the sale of goods 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 turnover 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.

2.3

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.

Page 11

HOLROYD COMPONENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2022

2.Accounting policies (continued)

2.3

Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following basis.

Depreciation is provided on the following basis:

Leasehold improvements	-	Over the term of the lease
Plant & machinery	-	20% per annum on the reducing balance
Motor vehicles	-	25% per annum on the reducing balance
Fixtures & fittings	-	15% & 25% respectively per annum on the reducing balance
Aircraft	-	10% per annum straight line

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.

2.4

Valuation of investments

Investments held as fixed assets are shown at cost less provision for impairment.

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 reporting 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.

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.

Page 12

HOLROYD COMPONENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2022

2.Accounting policies (continued)

2.8

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

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.

Page 13

HOLROYD COMPONENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2022

2.Accounting policies (continued)

2.10

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.

2.11

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is Pounds Sterling.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Income and Retained Earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'administrative expenses'.

2.12

Dividends

Equity dividends are recognised when they become legally payable.

2.13

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 14

HOLROYD COMPONENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2022

2.Accounting policies (continued)

2.14

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 Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

2.15

Interest income

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

2.16

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 reporting 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 Statement of Financial Position.

2.17

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 reporting 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 reporting 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 reporting date.

Page 15

HOLROYD COMPONENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2022

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable to be reasonable under the circumstances.
Critical accounting estimates and assumptions
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 13 for the carrying amount of the tangible fixed assets, and note 2.3 for the useful economic lives for each class of asset.

Turnover

In the opinion of the Director, the disclosure of turnover by geographical segment would be seriously prejudicial to the interests of the Company and therefore this information has not been disclosed.

5.	Other operating income
		2022	2021
		£	£

Government grants receivable	2,571	2,570
Coronavirus Job Retention Scheme income	-	26,060
	2,571	28,630

Research & development charged as an expense	4,100	-
Depreciation of tangible fixed assets	611,073	517,636
Exchange differences	(38,253)	128,017
Defined contribution pension cost	89,488	85,195
Government grants	(2,571)	(2,570)

Page 16

HOLROYD COMPONENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2022

Fees payable to the Company's auditors for the audit of the Company's financial statements

9,950

8,650

Wages and salaries	3,462,491	3,015,609
Social security costs	347,019	284,464
Cost of defined contribution scheme	89,488	85,195
	3,898,998	3,385,268

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

	2022	2021
	No.	No.

Administration	25	23
Production	96	85

	121	108

9.	Director's remuneration
		2022	2021
		£	£

	Director's emoluments	86,769	40,000

10.	Interest receivable
		2022	2021
		£	£

Other interest receivable

11,414

4,799

Page 17

HOLROYD COMPONENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2022

11.	Interest payable and similar expenses
		2022	2021
		£	£

Other interest payable

504

Corporation tax
Current tax on profits for the year	867,956	613,924
Adjustments in respect of previous periods	-	(44,228)

Total current tax	867,956	569,696

	Deferred tax
	Origination and reversal of timing differences	96,213	122,494


	Taxation on profit on ordinary activities	964,169	692,190

Profit on ordinary activities before tax

5,206,484

3,814,441

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)	989,232	724,744
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	2,389	1,280
Adjustments to tax charge in respect of prior periods	-	(44,228)
Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge	(61,358)	(51,990)
Changes in tax rate leading to an increase (decrease) in the tax charge	33,906	62,384
Total tax charge for the year	964,169	692,190

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 18

HOLROYD COMPONENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2022

13.	Dividends
		2022	2021
		£	£

Dividends paid on equity capital

1,100,500

Subsequent to the year end the Company paid dividends totalling £5,987,000.

Page 19


		HOLROYD COMPONENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2022

	14.	Tangible fixed assets

	Leasehold improvement	Plant & machinery	Motor vehicles	Fixtures & fittings	Aircraft	Total
	£	£	£	£	£	£
Cost or valuation
At 1 December 2021	1,630,925	3,574,879	12,557	222,188	656,164	6,096,713
Additions	316,704	541,508	-	44,190	-	902,402
Disposals	-	(20,082)	-	-	-	(20,082)
At 30 November 2022	1,947,629	4,096,305	12,557	266,378	656,164	6,979,033
Depreciation
At 1 December 2021	635,964	2,361,372	12,465	118,441	226,750	3,354,992
Charge for the year on owned assets	206,294	351,032	24	23,821	29,902	611,073
Disposals	-	(19,700)	-	-	-	(19,700)
At 30 November 2022	842,258	2,692,704	12,489	142,262	256,652	3,946,365
Net book value
At 30 November 2022	1,105,371	1,403,601	68	124,116	399,512	3,032,668
At 30 November 2021	994,961	1,213,507	92	103,747	429,414	2,741,721

Page 20

HOLROYD COMPONENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2022

15.	Fixed asset investments

		Unlisted investments
		£
	Cost or valuation
	At 1 December 2021	7,081
	At 30 November 2022	7,081

	Net book value
	At 30 November 2022	7,081
	At 30 November 2021	7,081

16.	Stocks
		2022	2021
		£	£

Raw materials and consumables	389,575	415,604
Work in progress	108,095	84,475
	497,670	500,079

17.

Debtors

					2022	2021
					£	£


Trade debtors	2,641,642	2,378,854
Other debtors	3,364,919	2,124,398
Prepayments and accrued income	15,459	84,796
	6,022,020	4,588,048

18.	Current asset investments
		2022	2021
		£	£

	Short-term sterling fixed deposits	3,350,000	-

Page 21

HOLROYD COMPONENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2022

19.	Cash and cash equivalents
		2022	2021
		£	£

	Cash at bank and in hand	9,369,314	9,934,747

20.	Creditors: Amounts falling due within one year
		2022	2021
		£	£

Trade creditors	510,511	529,583
Corporation tax	418,700	166,932
Other creditors	7,712	54,171
Accruals and deferred income	21,057	113,745
	957,980	864,431

21.	Financial instruments
		2022	2021
		£	£

Financial assets
Financial assets measured at fair value through profit or loss	9,369,314	9,934,747
Financial assets that are debt instruments measured at amortised cost	9,307,110	4,423,980
	18,676,424	14,358,727

	Financial liabilities
	Financial liabilities measured at amortised cost	(539,280)	(697,499)

	Financial assets measured at fair value through profit or loss comprise bank and cash balances. Fair value of bank and cash balances is measured as the balance of cash held at the year end, as translated into the presentational currency.
	Financial assets that are debt instruments measured at amortised cost comprise trade debtors, certain other debtors and current asset investments.
	Financial liabilities measured at amortised cost comprise trade creditors, bank overdrafts, other creditors and accruals.

Page 22

HOLROYD COMPONENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2022

22.	Deferred taxation

	2022	2021
	£	£

At beginning of year	273,521	151,027
Utilised in year	96,213	122,494
At end of year	369,734	273,521

The provision for deferred taxation is made up as follows:
	2022	2021
	£	£

Accelerated capital allowances

369,734

273,521

23.	Provisions

		Dilapidations provision
		£

	Charged to profit or loss	75,000
	At 30 November 2022	75,000

The above represents a provision for future costs, required under contract with the landlord, to restore the property to its condition prior to vacancy by the Company.

24.	Share capital
		2022	2021
		£	£

Allotted, called up and fully paid

100 (2021 - 100) Ordinary shares of £1 each	100	100
1 (2021 - 1) Ordinary 'A' share of £1	1	1
1 (2021 - 1) Ordinary 'B' share of £1	1	1

	102	102

Page 23

HOLROYD COMPONENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2022

Contracted for but not provided in these financial statements

225,789

26.	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 £ 89,488 (2021 - £ 85,195). Contributions totalling £NIL (2021 - £NIL) were payable to the fund at the reporting date and are included in creditors.

Not later than 1 year	256,960	209,000
Later than 1 year and not later than 5 years	908,740	811,000
Later than 5 years	307,333	491,333
	1,473,033	1,511,333

28.	Transactions with Directors

At 1 December 2021, the Company owed £51,171 to the Director (2021 - £71,839 owed by the Director). During the year, the Director made withdrawals of £4,674,975 (2021 - £119,343) and repayments of £1,916,666 (2021 - £245,353), leaving a balance of £2,704,138 due from him as at 30 November 2022 (2021 - £51,171 due to him).
The loan was interest free and repayable on demand.

Page 24

HOLROYD COMPONENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2022

29.

Related party transactions

During the year, the Company were charged rent of £ 184,000 (2021 - £ 220,800) by an entity of which the Director is a member.
The amount due to them at the year end was £NIL (2021 - £NIL).
The Company was owed £NIL (2021 - £2,000,000) by a Company under common control.
During the year amounts totalling £NIL (2021 - £29,396) were paid on behalf of a Company controlled by a close relative of the Director.
The amount due from them at the year end was £24,669 (2021 - £24,669).
During the year dividends of £NIL (2021 - £1,100,500) were paid to the Director.

Page 25