Sunray Engineering Limited - Limited company accounts 23.2

REGISTERED NUMBER: 01480389 (England and Wales)

Sunray Engineering Limited

Strategic Report, Directors' Report and

Financial Statements

for the Year Ended 31 July 2023

Page

Company Information

1

Strategic Report

2

Directors' Report

3

Independent Auditors' Report

5

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

Directors:

S P Ballard

D J Kerry

R G Bromley

C D Browning

J McFarland

H J Warrender

M C Tailby

Registered office:

Portobello School Street

Willenhall

West Midlands

WV13 3PW

Registered number:

01480389 (England and Wales)

Auditors:

Cooper Parry Group Limited

Statutory Auditor

New Derwent House

69-73 Theobalds Road

London

WC1X 8TA

The directors present their Strategic Report of the Company for the year ended 31 July 2023.

Review of business

We aim to present a balanced and comprehensive review of the development and performance of the business during the year, and its position at the year end. The review is consistent with the size and nature of our business and is written in the context of the risks, uncertainties and challenges faced.

Sunray Engineering's principal activities during the year continued to be that of the Design, Manufacture and Installation of Steel Fire and Security Doors, Steel Louvre Systems, Steel Blast and Ballistic Doors and Panels, Security Window Bars and GRP Walkways and Platforms.

The trading conditions over the year remain competitive and in certain cases and market areas projects being very much price driven with many businesses sacrificing profit for turnover. The impact has seen a slight dilution of the mid end markers with lower pricing levels and the products being offered not always being of a like for like basis.

Despite this unusual strategy within our sectors, we have experienced continued sales growth with strong GP and net profitability.

The GP margins remain consistent with the variations according to the product type and sales mix.

The Company continues to invest with initiatives such as a new IT, ERP/MRP platform, a thorough R&D program for enhanced product performance, new machinery for manufacturing efficiencies, and Building upgrades to the operational premises.

Principal risks and uncertainties

Whilst we remain cautious on the potential impact to the business that arises from economic uncertainty, rising energy and material costs, we are confident within our respective market sectors to continue and deliver further growth to that experienced over the year and across the entire product portfolio. We continue to mitigate financial risk with a robust approach to contractual terms, strong debtor controls and adherence to budgetary costings.

Future developments

Sunray Engineering Limited continues working to a detailed 5-year strategy, which remains fluid, yet is built on tangible assumptions and the results already achieved and exceeded. Our financial stability enables us to make informed and strategic decisions such as significant business investments and ensures continuity through any periods of economic instability.

Key performance indicators

The Company monitors its performance against strategic objectives by means of key performance indicators. The primary KPI's used are sales, gross profit, operating profit and net assets.

Comparing the key KPI's for 2023 to those from 2022 as follows:

2023

2022

Movement

Movement (%)

Sales

£14,124,008

£11,586,834

£2,537,174

22%

Gross profit margin

59%

59%

-

-

Operating profit

£676,802

£2,474,422

-£1,797,620

-73%

Net assets

£7,794,996

£8,653,732

-£858,736

-10%

On behalf of the board:

S P Ballard - Director

23 April 2024

The directors present their report with the financial statements of the Company for the year ended 31 July 2023.

Dividends

The profit for the year, after taxation, amounted to £301,490 (2022: £2,125,295).

Dividends paid in the year amounted to £1,086,500 (2022: £999,999).

The directors do not recommend the payment of a further dividend.

Directors

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

S P Ballard

D J Kerry

Other changes in directors holding office are as follows:

R C E Hearn - resigned 25 July 2023

S Birrell - resigned 25 July 2023

R H Lampon - resigned 25 July 2023

R G Bromley - appointed 25 July 2023

C D Browning - appointed 25 July 2023

J McFarland - appointed 25 July 2023

H J Warrender - appointed 25 July 2023

The following directors were appointed since the year end:

M C Tailby - appointed 26 February 2024

Future developments

The directors anticipate that the Company will continue to operate with its existing service and goods offering with the same clients and the existing management team and resources.

Auditors

The audit business of Haines Watts London LLP was acquired by Cooper Parry Group Limited on 14 November 2023. Haines Watts London LLP has resigned as auditor and Cooper Parry Group Limited has been appointed in its place.

Disclosure in the Strategic Report

The Company has chosen in accordance with Section 414C(11) of the Companies Act 2006 (Strategic report and Directors' Report) Regulations 2013 to set out within the Company's Strategic Report the Company's strategic information required by schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This includes information that would have been included in the business review and details of the principal risks and uncertainties.

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 Income Statement 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;

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

Statement as to disclosure of information to auditors

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

On behalf of the board:

S P Ballard - Director

23 April 2024

Opinion

We have audited the financial statements of Sunray Engineering Limited (the 'Company') for the year ended 31 July 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 July 2023 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; or

-	the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities, 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:

We gained an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates, and considered the risk of acts by the Company that were contrary to applicable laws and regulations, including fraud. We discussed with the management the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance.

During the audit we focused on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.

Our procedures in relation to fraud included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. Our tests include agreeing the financial statement disclosures to underlying supporting documentation.

In assessing the potential risks of material misstatement we obtained an understanding of; the entities operations, including the nature of its revenue sources and services and of its objectives and strategies to understand the classes of transactions, account balances, expected financial statement disclosures and business risks that may result in risks of material misstatement. We did not identify any matters relating to non-compliance with laws and regulations relating to fraud.

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

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

Chris Evans FCA (Senior Statutory Auditor)

for and on behalf of Cooper Parry Group Limited

Statutory Auditor

New Derwent House

69-73 Theobalds Road

London

WC1X 8TA

23 April 2024

Turnover

4

14,124,008

11,586,834

Cost of sales

(5,755,128

)

(4,736,127

)

Gross profit

8,368,880

6,850,707

Administrative expenses

(7,692,078

)

(4,376,285

)

Operating profit

676,802

2,474,422

Interest receivable and similar income

54,138

7,570

730,940

2,481,992

Interest payable and similar expenses

7

(21,174

)

(17,397

)

Profit before taxation

8

709,766

2,464,595

Tax on profit

9

(408,276

)

(339,300

)

Profit for the financial year

301,490

2,125,295

Profit for the year

301,490

2,125,295

Other comprehensive income

Revaluation

-

542,862

Income tax relating to other comprehensive income

(73,726

)

(233,468

)

Other comprehensive income for the year, net of income tax

(73,726

)

309,394

Total comprehensive income for the year

227,764

2,434,689

Fixed assets

Intangible assets

11

176,930

235,907

Tangible assets

12

4,970,101

3,882,307

5,147,031

4,118,214

Current assets

Stocks

13

506,203

724,151

Debtors

14

1,635,487

2,455,395

Cash at bank and in hand

4,393,415

4,664,457

6,535,105

7,844,003

Creditors

Amounts falling due within one year

15

3,225,831

2,688,635

Net current assets

3,309,274

5,155,368

Total assets less current liabilities

8,456,305

9,273,582

Creditors

Amounts falling due after more than one year

16

(163,031

)

(223,806

)

Provisions for liabilities

18

(498,278

)

(396,044

)

Net assets

7,794,996

8,653,732

Capital and reserves

Called up share capital

19

100

100

Other reserves

20

1,076,307

1,150,033

Retained earnings

20

6,718,589

7,503,599

Shareholders' funds

7,794,996

8,653,732

The financial statements were approved by the Board of Directors and authorised for issue on 23 April 2024 and were signed on its behalf by:

S P Ballard - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 August 2021

100

6,378,303

840,639

7,219,042

Changes in equity

Dividends

-

(999,999

)

-

(999,999

)

Total comprehensive income

-

2,125,295

309,394

2,434,689

Balance at 31 July 2022

100

7,503,599

1,150,033

8,653,732

Changes in equity

Dividends

-

(1,086,500

)

-

(1,086,500

)

Total comprehensive income

-

301,490

(73,726

)

227,764

Balance at 31 July 2023

100

6,718,589

1,076,307

7,794,996

1.	Statutory information

Sunray Engineering 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 presentation currency of the financial statements is the Pound Sterling (£), rounded to the nearest £1.

2.	Accounting policies

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirement of paragraph 33.7.

Related party exemption

The Company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value-added taxes. Turnover includes revenue earned from the sale of goods and from rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs on the accruals basis of accounting.

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 four years.

Tangible fixed assets

Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:

Freehold buildings

In accordance with the property

Improvements to property

10% on cost

Motor vehicles

25% on reducing balance

Plant & machinery

25% on reducing balance

Fixtures, fittings, tools and equipment

25% on reducing balance

Freehold land and buildings

Freehold land and buildings is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure, and then subsequently stated at its fair value at the reporting date. It was valued on an open market basis on 29 July 2022 by Stafford Perkins. The value has been prepared on a Market Value and Market Rental basis in accordance with the RICS Valuation- Professional Standards published by the Royal Institution of Chartered Surveyors and effective from 31 January 2022. Gains or losses arising from changes in the fair value of freehold land and buildings are included in the Statement of Comprehensive Income for the period in which they arise. No depreciation is provided on freehold land and buildings.

Impairment of assets

Assets that are subject to depreciation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of the asset's fair value less costs to sell and value in use.

Stocks

Stocks are measured at the lower of cost and estimated selling prices less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related turnover is recognised.

Financial instruments

Financial assets and liabilities are recognised when the Company becomes party to the contractual provisions of the financial instrument. The Company holds financial instruments which comprise cash and cash equivalents, trade and other receivables, equity investments, trade and other payables, loans and borrowings.The Company has chosen to apply the provisions of Section 11 Basic Financial Instruments in full.

Financial assets / liabilities - classified as basic financial instruments

(i) Cash and cash equivalents

This includes cash in hand, deposits held with banks, and other short-term highly liquid investments with original maturities of three months or less.

(ii) Trade and other receivables

Trade and other receivables are initially recognised at the transaction price, including any transaction costs, and subsequently measured at amortised cost including the effective interest method, less any provision for impairment. Amounts that are receivable within one year are measured at the undiscounted amount of the cash expected to be received, net of any impairment.

At the end of each reporting period, the Company assesses whether there is objective evidence that an receivable amount may be impaired. A provision for impairment is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables.The amount of the provision is the difference between the asset's carrying amount and the present value of the estimated future cash flows, discounted at the effective interest rate. The amount of the provision is recognised immediately in the Income Statement.

(iii) Trade and other payables and loans and borrowings

Trade and other payables and loans and borrowings are initially measured at the transaction price, including any transaction costs, and subsequently measured at amortised cost using the effective interest method.

Leased assets

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases.The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the Company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.

Pension costs and other post-retirement benefits

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 the Income Statement when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Provisions

Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.

Going concern

These financial statements have been prepared on a going concern basis. The current economic conditions present increased risks for all businesses. In response to such conditions, the directors have carefully considered these risks including an assessment on uncertainty on future trading projection for a period of at least 12 months from the date of signing the financial statements, and the extent to which they might affect the preparation of the financial statements on a going concern basis.

The directors have tested their cash flow analysis to take into account the impact on their business of possible scenarios alongside measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

3.	Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Significant judgements

The management do not consider there to be any significant judgements made in the process of applying the entity's accounting policies.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by the nature, will rarely equal the related actual outcome. the directors do not consider there to be any key assumptions or other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

4.

Turnover

The turnover and profit before taxation are attributable to the one principal activity of the Company.

An analysis of turnover by class of business is given below:

2023

2022

£

£

Sale of goods

14,124,008

11,586,834

14,124,008

11,586,834

An analysis of turnover by geographical market is given below:

2023

2022

£

£

United Kingdom

14,124,008

11,586,834

14,124,008

11,586,834

5.	Employees and directors

2023

2022

£

£

Wages and salaries

5,727,422

3,223,392

Social security costs

636,180

365,964

Other pension costs

189,007

184,831

6,552,609

3,774,187

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

2023

2022

Administration

14

14

Development

8

5

Distribution

5

5

Manufacturing

36

31

Sales

13

7

76

62

6.	Directors' emoluments

2023

2022

£

£

Directors' remuneration

2,735,869

894,232

Directors' pension contributions to money purchase schemes

35,067

33,793

Information regarding the highest paid director is as follows:

2023

2022

£

£

Emoluments etc

764,838

535,691

Pension contributions to money purchase schemes

4,000

4,000

7.

Interest payable and similar expenses

2023

2022

£

£

Hire purchase

21,174

17,397

8.	Profit before taxation

The profit is stated after charging:

2023

2022

£

£

Hire of plant and machinery

329

1,771

Other operating leases

80,111

53,061

Depreciation - owned assets

217,451

218,677

Computer software amortisation

58,977

78,635

Auditors' remuneration

33,750

38,250

9.

Taxation

Analysis of the tax charge

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

2023

2022

£

£

Current tax:

UK corporation tax

253,125

262,650

Prior year tax adjustment

126,643

(2,136

)

Total current tax

379,768

260,514

Deferred tax

28,508

78,786

Tax on profit

408,276

339,300

UK corporation tax was charged at 19%) in 2022.

Reconciliation of total tax charge included in profit and loss

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

2023

2022

£

£

Profit before tax

709,766

2,464,595

Profit multiplied by the standard rate of corporation tax in the UK of 21% (2022 - 19%)

149,051

468,273

Effects of:

Expenses not deductible for tax purposes

112,048

(315

)

Income not taxable for tax purposes

(11,369

)

(16,847

)

Capital allowances in excess of depreciation

(29,786

)

(190,997

)

Adjustments to tax charge in respect of previous periods

126,643

-

Other timing differences leading to an increase/(decrease) in the tax

61,689

79,186

Total tax charge

408,276

339,300

Tax effects relating to effects of other comprehensive income

2023

Gross

Tax

Net

£

£

£

Revaluation

-

(73,726

)

(73,726

)

2022

Gross

Tax

Net

£

£

£

Revaluation

542,862

(233,468

)

309,394

10.

Dividends

2023

2022

£

£

Ordinary shares shares of £1 each each

Interim

1,086,500

999,999

11.	Intangible fixed assets

Computer

software

£

Cost

At 1 August 2022

and 31 July 2023

314,542

Amortisation

At 1 August 2022

78,635

Amortisation for year

58,977

At 31 July 2023

137,612

Net book value

At 31 July 2023

176,930

At 31 July 2022

235,907

The net book value of assets held under hire purchase contracts, included above are £176,930 (2022: £235,907).