East Bilney Coachworks Limited - Limited company accounts 23.2

REGISTERED NUMBER: 06737577 (England and Wales)

STRATEGIC REPORT, DIRECTORS' REPORT AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

EAST BILNEY COACHWORKS LIMITED

Page

Company Information

1

Strategic Report

2

Directors' Report

3

Independent Auditors' Report

4

Statement of Income and Retained Earnings

6

Balance Sheet

7

Cash Flow Statement

8

Notes to the Financial Statements

9

DIRECTORS:

Miss J Baldwin

Mr C Baldwin

Mr D Baldwin

Mr M Baldwin

SECRETARY:

Miss J Baldwin

REGISTERED OFFICE:

Fakenham Road

East Bilney

Dereham

Norfolk

NR20 4HP

REGISTERED NUMBER:

06737577 (England and Wales)

SENIOR STATUTORY AUDITOR:

Mr Christopher Glen Bidgood

AUDITORS:

CG LEE Limited

Chartered Certified Accountants

Statutory Auditors

Ingram House

Meridian Way

Norwich

Norfolk

NR7 0TA

The directors present their strategic report for the year ended 31 December 2022.

REVIEW OF BUSINESS

Throughout the 2022 financial year the company operated across 7 sites. After the challenges faced in the prior years due to the Covid-19 pandemic, the company reports an increase in turnover. The company has remained profitable in a challenging economic environment.

The directors view turnover, gross margin and overheads as the company's key financial performance indicators.

2022

2021

Turnover (£)

18,722,711

16,512,329

Gross profit %

30.16%

29.72%

Profit before tax

175,465

222,411

EBITDA

506,508

510,802

PRINCIPAL RISKS AND UNCERTAINTIES

The directors have reviewed the risks and uncertainties facing the company and the strength of the balance sheet is considered adequate for those to which the company is exposed. These include the overall economic environment and increasing levels of competition for turnover.

The principal risks facing the company include:

Liquidity and credit risk

The company funds the operational and working capital requirements through its retained profits. At 31 December 2022, the company had a cash balance which the directors believe is sufficient to maintain robust liquidity in the business as it continues to trade through the uncertainties in the global economy.

The company sells to most of its customers on customary credit terms and is, as a result, exposed to the usual credit risk and cash flow risk associated with this form of trading. It manages this risk through rigorous credit control procedures on a continual basis.

Human resource risk

Failure to maintain a sufficiently skilled workforce and retain key staff can adversely affect any business.

Economic climate risk

The company has no interest-bearing bank debt and as such the directors feel that the direct interest rate risk is minimal. However, with high levels of inflation and increasing interest rates, there is general pressure on business investment and spending. The directors continue to monitor the raw material, utilities and labour costs and supply for the business and take these factors into consideration when making pricing decisions.

OUTLOOK AND FUTURE DEVELOPMENTS

Whilst the company continues to be profitable, there is caution with higher interest rates and increasing inflation which has had an effect on raw materials and labour costs.

However, with strong demand from customers, the directors expect the general level of activity to increase in the forthcoming year and the business is well positioned to take advantage of opportunities that arise.

ON BEHALF OF THE BOARD:

Mr C Baldwin - Director

24 October 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2022.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of repairing motor vehicles.

DIVIDENDS

The company paid dividends of £240,000 during the year.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report.

Miss J Baldwin

Mr C Baldwin

Mr D Baldwin

Mr M Baldwin

MATTERS INCLUDED IN THE STRATEGIC REPORT

Details regarding a review of the business, including future developments, principal risk and uncertainties are provided in the Strategic Report on page 2.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 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 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 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.

DIRECTORS CONFIRMATIONS

In the case of each director in office at the date the Directors' Report is approved:

-

so far as each director is aware, there is no relevant audit information of which the company's auditors are unaware; and

-

they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

CG LEE Limited, having expressed their willingness to continue in office, will be deemed reappointed for the next financial year in accordance with Section 487(2) of the Companies Act 2006 unless the company receives notice under Section 488(1) of the Act.

ON BEHALF OF THE BOARD:

Mr C Baldwin - Director

24 October 2023

Opinion

We have audited the financial statements of East Bilney Coachworks Limited (the 'company') for the year ended 31 December 2022 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and 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 company's affairs as at 31 December 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 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 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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report 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 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 where 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 Statement of Directors' Responsibilities set out on page three, 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 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.

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.

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to employment laws and tax legislation, and we considered the extent to which non­ compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:

-

discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation;

-

evaluating management's controls designed to prevent and detect irregularities;

-

identifying and testing of journal entries for appropriateness and evaluating the business rationale of significant transactions outside the normal course of business; and

-

reviewing significant accounting estimates for management bias.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

Mr Christopher Glen Bidgood (Senior Statutory Auditor)

for and on behalf of CG LEE Limited

Chartered Certified Accountants

Statutory Auditors

Ingram House

Meridian Way

Norwich

Norfolk

NR7 0TA

24 October 2023

TURNOVER

18,722,711

16,512,329

Cost of sales

(13,075,671

)

(11,605,047

)

GROSS PROFIT

5,647,040

4,907,282

Administrative expenses

(5,494,710

)

(4,892,141

)

152,330

15,141

Other operating income

5

18,992

205,777

OPERATING PROFIT

7

171,322

220,918

Interest receivable and similar income

4,148

3,321

175,470

224,239

Interest payable and similar expenses

8

(5

)

(1,828

)

PROFIT BEFORE TAXATION

175,465

222,411

Tax on profit

9

(22,454

)

(86,119

)

PROFIT FOR THE FINANCIAL YEAR

153,011

136,292

Retained earnings at beginning of year

3,543,712

3,567,420

Dividends

10

(240,000

)

(160,000

)

RETAINED EARNINGS AT END OF YEAR

3,456,723

3,543,712

FIXED ASSETS

Intangible assets

11

9

9

Tangible assets

12

1,113,419

1,321,180

Investments

13

20

20

1,113,448

1,321,209

CURRENT ASSETS

Stocks

14

271,602

185,713

Debtors

15

3,962,503

3,390,823

Cash at bank and in hand

2,163,032

2,858,190

6,397,137

6,434,726

CREDITORS

Amounts falling due within one year

16

3,249,815

2,977,287

NET CURRENT ASSETS

3,147,322

3,457,439

TOTAL ASSETS LESS CURRENT LIABILITIES

4,260,770

4,778,648

CREDITORS

Amounts falling due after more than one year

17

(563,928

)

(951,665

)

PROVISIONS FOR LIABILITIES

20

(239,119

)

(282,271

)

NET ASSETS

3,457,723

3,544,712

CAPITAL AND RESERVES

Called up share capital

21

1,000

1,000

Retained earnings

22

3,456,723

3,543,712

SHAREHOLDERS' FUNDS

3,457,723

3,544,712

The financial statements were approved by the Board of Directors and authorised for issue on 24 October 2023 and were signed on its behalf by:

Mr C Baldwin - Director

Cash flows from operating activities

Cash generated from operations

26

(39,469

)

358,869

Interest paid

(5

)

(1,828

)

Tax paid

-

(195,000

)

Net cash from operating activities

(39,474

)

162,041

Cash flows from investing activities

Purchase of tangible assets

(150,108

)

(576,351

)

Sale of tangible assets

22,683

26,899

Interest received

4,148

3,321

Net cash from investing activities

(123,277

)

(546,131

)

Cash flows from financing activities

New loans in year

-

433,098

Loan repayments in year

(286,997

)

-

Amount introduced by directors

310,593

234,300

Amount withdrawn by directors

(316,003

)

(304,249

)

Equity dividends paid

(240,000

)

(160,000

)

Net cash from financing activities

(532,407

)

203,149

Decrease in cash and cash equivalents

(695,158

)

(180,941

)

Cash and cash equivalents at beginning of year

27

2,858,190

3,039,131

Cash and cash equivalents at end of year

27

2,163,032

2,858,190

1.	STATUTORY INFORMATION

East Bilney Coachworks Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The company's principal activities are set out in the Directors Report on page 3.

2.	STATEMENT OF COMPLIANCE

The financial statements of East Bilney Coachworks Limited have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, "The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland" ("FRS 102") and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The principal accounting policies of the company applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Basis of accounting

These financial statements are prepared on a going concern basis, under the historical cost convention. The financial statements are presented in pound sterling which is the company's functional currency.

The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 4.

Going concern

The financial statements have been prepared on a going concern basis as the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

Revenue

Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for services rendered, net of returns, discounts and rebates allowed by the company and value added tax.

The company recognises revenue when (a) the significant risks and rewards of ownership have been transferred to the buyer; (b) the amount of revenue can be measured reliably; (c) it is probable that the associated economic benefits will flow to the entity; and (d) the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Unbilled turnover on individual contracts is included as accrued income within debtors.

Goodwill

Goodwill arises on the acquisition of a business and represents the excess of the fair value of the consideration given over the aggregate of the fair value of the separate net assets acquired. Goodwill is capitalised and stated at cost less accumulated amortisation and provisions for impairment. Goodwill is amortised evenly over its estimated useful economic life, which in the opinion of the directors, is 5 years.

Tangible assets

Tangible assets are recorded at cost less accumulated depreciation. Cost includes the original purchase price of the asset plus costs attributable to bringing the asset to its working condition for its intended use. Land is not depreciated. Depreciation on other assets is charged from the time when tangible assets are brought into use and is calculated so as to write off the cost of fixed assets, less their estimated residual values, over the expected useful economic lives of the assets concerned. The principal annual rates used for this purpose are as follows:

Plant and machinery etc

- 25% of reducing balance, 20% on cost and 15% reducing balance

Government grants

Government grants are recognised when there is reasonable assurance that the grant conditions will be met and the grant will be received. These grants are recognised within other operating income on a systematic basis over the periods in which the related costs towards which they are intended to compensate are recognised as expenses.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Impairment of non-financial assets

At each balance sheet date non-financial assets not carried at fair value are assessed to determine whether there is an indication that the asset (or asset's cash generating unit) may be impaired. If there is such an indication the recoverable amount of the asset (or asset's cash generating unit) is compared to the carrying amount of the asset (or asset's cash generating unit).

The recoverable amount of the asset (or asset's cash generating unit) is the higher of the fair value less costs to sell and value in use. Value in use is defined as the present value of the future cash flows before interest and tax obtainable as a result of the asset's (or asset's cash generating unit) continued use. These cash flows are discounted using a pre-tax discount rate that represents the current market risk-free rate and the risks inherent in the asset.

If the recoverable amount of the asset (or asset's cash generating unit) is estimated to be lower than the carrying amount, the carrying amount is reduced to its recoverable amount. An impairment loss is recognised in profit or loss, unless the asset has been revalued when the amount is recognised in other comprehensive income to the extent of any previously recognised revaluation. Thereafter any excess is recognised in profit or loss.

If an impairment loss is subsequently reversed, the carrying amount of the asset (or asset's cash generating unit) is increased to the revised estimate of its recoverable amount, but only to the extent that the revised carrying amount does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised in prior periods. A reversal of an impairment loss is recognised in profit or loss.

Trade and other debtors

Trade and other debtors that are receivable within one year and do not constitute a financing transaction are recorded at the undiscounted amount expected to be received, net of impairment. Those that are receivable after more than one year or that constitute a financing transaction are recorded initially at fair value less transaction costs and subsequently at amortised cost, net of impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the balance sheet, bank overdrafts are shown within borrowings or current liabilities.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.

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 profit or loss.

Financial assets and liabilities are offset and the net amount reported in the statement of financial position 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.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred taxation

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development

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

Borrowing costs

All borrowing costs are recognised in the statement of Income and Retained Earnings in the year in which they are incurred.

Hire purchase and leasing commitments

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

Employee benefits

Short term benefits, including holiday pay and other similar non-monetary benefits are recognised as an expense in the period in which the service is received.

The obligations for contributions to defined contribution pension schemes are recognised as an expense in the period they are incurred. Amounts not paid at the balance sheet date are included in other creditors.

Investments

Investments held as fixed assets are stated at cost less provision for any permanent diminution in value.

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

4.	CRITICAL ACCOUNTING JUDGEMENTS 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 under the circumstances.

Critical judgements in applying the company's accounting policies

There are no critical judgements in applying the company's accounting policies.

Key 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.

Depreciation of tangible assets

An allowance for depreciation is made against tangible assets and charged to profit or loss over the useful economic lives of the assets. The useful economic life assessment of an asset is based on the time in which benefits of the asset are realised to the company. See note 12 for the net carrying value of the tangible assets, and note 3 for the useful economic lives for each class of assets.

Impairment of stocks

The company makes an estimate of the recoverable value of stocks. When calculating the stock provision, management considers the nature and condition of the stock as well as applying assumptions around anticipated saleability of goods held for resale. See note 14 for the net carrying amount of stocks.

Impairment of debtors

The directors make an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, the directors consider factors including the credit worthiness and financial conditions of customers. See note 15 for the net carrying amount of the debtors and associated impairment provision.

Going concern

The directors make an estimate of the future performance of the company in order to prepare the financial statements under the going concern methodology. When assessing the future performance, the directors considers financial projections which reflect the current and expected market conditions, operational cash flow requirements and financing opportunities. See note 3 for the directors' conclusion on going concern.

5.	OTHER OPERATING INCOME

2022

2021

£

£

Sundry receipts

18,183

3,500

Grant income

809

202,277

18,992

205,777

6.	EMPLOYEES AND DIRECTORS

2022

2021

£

£

Wages and salaries

4,786,761

4,495,660

Social security costs

490,743

432,365

Other pension costs

93,077

87,282

5,370,581

5,015,307

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

2022

2021

Staff

181

177

Directors

4

4

185

181

2022

2021

£

£

Directors' remuneration

119,664

111,349

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

4

4

Key management compensation

All key management personnel are considered to be directors. As such, the key management compensation is equivalent to the directors' emoluments above.

7.	OPERATING PROFIT

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

2022

2021

£

£

Hire of plant and machinery

11,876

15,812

Other operating leases

346,304

344,054

Depreciation - owned assets

343,606

301,225

Profit on disposal of fixed assets

(8,420

)

(11,341

)

Auditors' remuneration

18,750

16,250

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2022

2021

£

£

Bank interest

5

1

Other interest

-

1,827

5

1,828

9.

TAXATION

Analysis of the tax charge

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

2022

2021

£

£

Current tax:

UK corporation tax

32,880

-

Adjustments in respect of prior periods

32,726

(34,927

)

Total current tax

65,606

(34,927

)

Deferred tax

(43,152

)

121,046

Tax on profit

22,454

86,119

UK corporation tax has been charged at 19% (2021 - 19%).

Reconciliation of total tax charge included in profit and loss

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

2022

2021

£

£

Profit before tax

175,465

222,411

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

33,338

42,258

Effects of:

Expenses not deductible for tax purposes

5,235

4,776

Utilisation of tax losses

(32,726

)

-

Adjustments to tax charge in respect of previous periods

32,726

(2,219

)

Re-measurement of deferred tax for change in UK tax rate

-

67,745

Other tax adjustments

(16,119

)

(26,441

)

Total tax charge

22,454

86,119

Factors that may affect current and future tax charges

In the Spring Budget 2021, it was announced that from 1 April 2023 the main rate of UK corporation tax would increase from 19% to 25%. This rate was substantively enacted on 24 May 2021. Deferred taxes at the balance sheet date have been measured using the applicable enacted tax rates and reflected in these financial statements.

10.

DIVIDENDS

2022

2021

£

£

Ordinary A shares of £1 each

Interim

60,000

40,000

Ordinary B shares of £1 each

Interim

60,000

40,000

Ordinary C shares of £1 each

Interim

60,000

40,000

Ordinary D shares of £1 each

Interim

60,000

40,000

240,000

160,000

11.	INTANGIBLE ASSETS

Goodwill

£

COST

At 1 January 2022

and 31 December 2022

13,586

AMORTISATION

At 1 January 2022

and 31 December 2022

13,577

NET BOOK VALUE

At 31 December 2022

9

At 31 December 2021

9