Delapena Honing Equipment Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 01879464 (England and Wales)

Unaudited Financial Statements

For The Year Ended 30 June 2023

for

Delapena Honing Equipment Limited

Page

Company Information

1

Abridged Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

D R Arthur

M P Elliott

Mrs S M Arthur

REGISTERED OFFICE:

The Runnings

Cheltenham

Gloucestershire

GL51 9NJ

REGISTERED NUMBER:

01879464 (England and Wales)

ACCOUNTANTS:

Kingscott Dix Limited

Chartered Accountants

Goodridge Court

Goodridge Avenue

Gloucester

Gloucestershire

GL2 5EN

FIXED ASSETS

Intangible assets

4

14,380

-

Tangible assets

5

344,158

127,388

358,538

127,388

CURRENT ASSETS

Stocks

919,884

599,989

Debtors

752,548

510,568

Cash at bank and in hand

70,938

14,249

1,743,370

1,124,806

CREDITORS

Amounts falling due within one year

1,411,426

696,434

NET CURRENT ASSETS

331,944

428,372

TOTAL ASSETS LESS CURRENT LIABILITIES

690,482

555,760

CREDITORS

Amounts falling due after more than one year

224,802

105,030

NET ASSETS

465,680

450,730

CAPITAL AND RESERVES

Called up share capital

100

100

Revaluation reserve

52,200

69,600

Retained earnings

413,380

381,030

465,680

450,730

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2023 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

All the members have consented to the preparation of an abridged Income Statement and an abridged Balance Sheet for the year ended 30 June 2023 in accordance with Section 444(2A) of the Companies Act 2006.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 15 January 2024 and were signed on its behalf by:

D R Arthur - Director

M P Elliott - Director

1.	STATUTORY INFORMATION

Delapena Honing Equipment 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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of nil years.

Tangible fixed assets

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

Improvements to property

-

33% on reducing balance and 20% on cost

Plant and machinery

-

20% on cost

Office equipment

-

33% on cost

Motor vehicles

-

25% on cost

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

Basic financial liabilities

Basic financial liabilities, including trade and other creditors, bank loans, and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year. If not, they are presented as creditors falling due after more than one year. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company's obligations are discharged, cancelled, or they expire.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Management charges

Revenue from management charges to subsidiary undertakings is recognised on a straight-line accruals basis and represent the recharge of costs incurred in respect of the transaction.

Grant income

Grants are recognised on an accruals basis and are measured at the fair value of the asset received or receivable. Grants are classified as relating to either revenue or assets. Grants relating to revenue are recognised as income in the period in which the related costs are incurred. Grants relating to assets are recognised over the expected useful life of the asset. The element of a grant that is deferred to future periods is presented in as deferred income on the balance sheet.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 27 (2022 - 24 ) .

4.	INTANGIBLE FIXED ASSETS

Totals

£

COST

Additions

15,407

At 30 June 2023

15,407

AMORTISATION

Amortisation for year

1,027

At 30 June 2023

1,027

NET BOOK VALUE

At 30 June 2023

14,380

5.	TANGIBLE FIXED ASSETS

Totals

£

COST OR VALUATION

At 1 July 2022

1,100,683

Additions

276,945

At 30 June 2023

1,377,628

DEPRECIATION

At 1 July 2022

973,295

Charge for year

60,175

At 30 June 2023

1,033,470

NET BOOK VALUE

At 30 June 2023

344,158

At 30 June 2022

127,388

Cost or valuation at 30 June 2023 is represented by:

Totals

£

Valuation in 2021

87,000

Cost

1,290,628

1,377,628

Plant and machinery was revalued by the Directors on an open market basis as at 30 June 2021.

Included in tangible fixed assets are assets held under hire purchase agreements with a net book value £248,250 and a depreciation charge £10,900.

6.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

30.6.23

30.6.22

£

£

Net obligations repayable:

Within one year

64,037

30,264

Between one and five years

156,136

-

220,173

30,264

Non-cancellable operating

leases

30.6.23

30.6.22

£

£

Within one year

105,000

119,278

Between one and five years

420,000

420,000

In more than five years

78,750

183,750

603,750

723,028

7.	SECURED DEBTS

The following secured debts are included within creditors:

30.6.23

30.6.22

£

£

Bank loans

361,106

337,698

Hire purchase contracts

220,173

30,264

581,279

367,962

The bank facilities are secured by a fixed and floating charge over the company's assets.