Company registration number 01468514 (England and Wales)
ASHRIDGE ENGINEERING LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
PAGES FOR FILING WITH REGISTRAR
ASHRIDGE ENGINEERING LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 11
ASHRIDGE ENGINEERING LIMITED
BALANCE SHEET
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
7
593,988
628,367
Investments
8
100
100
594,088
628,467
Current assets
Stocks
10
362,412
384,395
Debtors
11
323,276
248,466
Cash at bank and in hand
45,405
91,935
731,093
724,796
Creditors: amounts falling due within one year
12
(978,713)
(840,810)
Net current liabilities
(247,620)
(116,014)
Total assets less current liabilities
346,468
512,453
Creditors: amounts falling due after more than one year
14
(300,910)
(334,176)
Net assets
45,558
178,277
Capital and reserves
Called up share capital
16
51
51
Capital redemption reserve
49
49
Profit and loss reserves
17
45,458
178,177
Total equity
45,558
178,277
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 26 February 2024 and are signed on its behalf by:
Mr R Wyatt
Mrs Paula Ellison
Director
Director
Company Registration No. 01468514
ASHRIDGE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
- 2 -
1
Accounting policies
Company information
Ashridge Engineering Limited is a private company limited by shares incorporated in England and Wales. The registered office is Seiche Group, Bradworthy Industrial Estate, Langdon Road, Bradworthy, Devon, United Kingdom, EX22 7SF.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. As part of the regular budgeting and forecast review process, the directors have prepared cash flow forecasts covering a period in excess of 12 months from the approval of the financial statements and are satisfied the company will sufficient cash to meet its obligations as they fall due during this period. During the year the company had a loss before tax of £71,495 and cash has fallen from £100k to £45k. However, the company has started generating profits post year end, showing an unaudited profit before tax of £284k for the period ended 31 December 2023. The cash position has also improved post year end. Therefore, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue 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 revenue 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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
Supply of equipment
Turnover from the supply of equipment to costs is recognised based on an assessment of the period in which the equipment is used and that the usage period can be measured reliably.
ASHRIDGE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 3 -
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
In the event that an internally generated intangible asset arises from the company's development activities then it will be recognised only if all of the following conditions are met:
- an asset is created that can be identified (such as software and new processes);
- the project from which the asset arises meets the company's criteria for assessing technical feasibility;
- it is probable that the asset created will generate future economic benefits; and
- the development cost of the asset can be measured reliably.
Internally generated intangible assets are amortised on a straight-line basis over their useful lives. Where no internally generated intangible asset can be recognised, development expenditure is recognised as an expense in the period it is incurred.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold property
2% on cost of buildings only
Plant and machinery
20 - 33% on reducing balance or 20 - 25% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
ASHRIDGE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 4 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
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 their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
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.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and 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.
1.10
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 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. Financial assets classified as receivable within one year are not amortised.
ASHRIDGE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 5 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
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. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
ASHRIDGE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 6 -
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
The company operates a defined contribution pension plan for its employees. Contributions are recognised as an expense when they fall due. Amounts due but not yet paid are included within creditors on the balance sheet. The assets of the plan are held separately from the company in independently administered funds. Once contributions to the pension fun have been paid, there is no further obligation to the company.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
5,900
5,825
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
11
17
ASHRIDGE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 7 -
5
Directors' remuneration
No remuneration was paid to the directors.
6
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
(75,177)
(36)
Deferred tax
Origination and reversal of timing differences
5,820
(172,408)
Adjustments in respect of prior periods
130,581
Total deferred tax
136,401
(172,408)
Total tax charge/(credit)
61,224
(172,444)
7
Tangible fixed assets
Freehold property
Plant and machinery
Total
£
£
£
Cost
At 1 June 2022
614,292
383,866
998,158
Additions
7,492
7,492
At 31 May 2023
614,292
391,358
1,005,650
Depreciation and impairment
At 1 June 2022
97,892
271,899
369,791
Depreciation charged in the year
9,286
32,585
41,871
At 31 May 2023
107,178
304,484
411,662
Carrying amount
At 31 May 2023
507,114
86,874
593,988
At 31 May 2022
516,400
111,967
628,367
8
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
100
100
9
Subsidiaries
Details of the company's subsidiaries at 31 May 2023 are as follows:
ASHRIDGE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
9
Subsidiaries
(Continued)
- 8 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Ashridge Monitoring Limited
England
Ordinary
100.00
10
Stocks
2023
2022
£
£
Stocks
362,412
384,395
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
262,889
83,799
Amounts owed by group undertakings
11,985
2,445
Other debtors
7,827
Prepayments and accrued income
41,556
11,148
316,430
105,219
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset
6,846
143,247
Total debtors
323,276
248,466
12
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
15
19,354
24,628
Trade creditors
97,602
50,785
Amounts owed to group undertakings
739,692
639,459
Taxation and social security
27,065
25,607
Deferred income
67,163
65,835
Accruals
27,837
34,496
978,713
840,810
ASHRIDGE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 9 -
13
Amounts owed to group undertakings
Amounts owed to group undertakings falling due within one year are repayable on demand and interest is charged at 2.5% over bank base rate per annum in accordance with inter-group loan agreements.
14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
15
162,016
174,977
Deferred income
138,894
159,199
300,910
334,176
15
Loans
2023
2022
£
£
Bank loans
181,370
199,605
Payable within one year
19,354
24,628
Payable after one year
162,016
174,977
Bank loans are secured by a first legal charge over the company's freehold property, and a fixed charge over all fixed assets in that property.
The current long term loan held by the company expires in November 2031 and has an agreed fixed rate of interest of 3.02% until 2025.
16
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
5,100
5,100
51
51
17
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
178,177
356,046
Loss for the year
(132,719)
(177,869)
At the end of the year
45,458
178,177
ASHRIDGE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 10 -
18
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Craig Yearsley FCCA and the auditor was Azets Audit Services.
19
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
Within one year
3,343
5,763
Between two and five years
1,136
1,113
4,479
6,876
20
Related party transactions
At the balance sheet date the company owed £729,471 (2022 - £613,988) to Seiche Limited , the directors Mr R Wyatt, Mrs P Ellison and Mr M J Burnett are also directors of that company. The loan is subject to an unsecured loan agreement charging interest at a rate of 2.5% over bank base rate. Interest charged from Seiche Limited during the year amounted to £34,587 (2022 - £16,430).
At the balance sheet date the company was owed £72 (2022 - £70) by Autonaut Limited , the directors Mr R Wyatt, Mr M J Burnett and Mrs P Ellison are also directors of that company. The loan is subject to an unsecured loan agreement charging interest at a rate of 2.5% over bank base rate. Interest charged to Autonaut Limited during the year amounted to £3 (2022 - £2).
At the balance sheet date the company was owed £46 (2022 - £43) by Seiche Environmental Limited , the directors Mr R Wyatt, Mr M J Burnett and Mrs P Ellison are also directors of that company. The loan is subject to an unsecured loan agreement charging interest at a rate of 2.5% over bank base rate. Interest charged to Seiche Environmental Limited during the year amounted to £2 ( 2022 - £1).
At the balance sheet date the company owed £1,399 (2022 - £245,471 (creditor)) to Seiche Training Limited , the directors Mr R Wyatt and Mrs P Ellison are also directors of that company. The loan is subject to an unsecured loan agreement charging interest at a rate of 2.5% over bank base rate. Interest charged to Seiche Training Limited during the year amounted to £1,239 ( 2022 - £596).
At the balance sheet date the company was owed £3,043 (2022 - £2,333) by Seiche Water Technology Group Limited, the parent company, the directors Mr R Wyatt, Mr M J Burnett and Mrs J Wyatt are also directors of that company. The loan is subject to an unsecured loan agreement charging interest at a rate of 2.5% over bank base rate. Interest charged to Seiche Water Technology Group Limited during the year amounted to £143 (2022 - £78).
The ultimate controlling parties are Mr R Wyatt, a director of this company, and Mrs J K Wyatt, who hold in equal number the whole of the share capital of the parent company, Seiche Water Technology Group Ltd,.
ASHRIDGE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 11 -
21
APB Ethical Standard - Provisions available for small entities
In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.
22
Ultimate Parent Company
The ultimate parent company is Seiche Water Technology Group Ltd. Copies of the parent company's accounts can be obtained from its registered office at Bradworthy Industrial Estate, Langdon Road, Bradworthy, Holsworthy, Devon, EX22 7SF.
Ashridge Engineering Limited is a wholly owned subsidiary of Seiche Water Technology Group Ltd.
2023-05-312022-06-01false29 February 2024CCH SoftwareCCH Accounts Production 2023.300No description of principal activityThis audit opinion is unqualifiedMr R WyattMr M J BurnettMiss S NicholsMrs P Ellisonfalse014685142022-06-012023-05-31014685142023-05-31014685142022-05-3101468514core:LandBuildingscore:OwnedOrFreeholdAssets2023-05-3101468514core:PlantMachinery2023-05-3101468514core:LandBuildingscore:OwnedOrFreeholdAssets2022-05-3101468514core:PlantMachinery2022-05-3101468514core:CurrentFinancialInstrumentscore:WithinOneYear2023-05-3101468514core:CurrentFinancialInstrumentscore:WithinOneYear2022-05-3101468514core:Non-currentFinancialInstrumentscore:AfterOneYear2023-05-3101468514core:Non-currentFinancialInstrumentscore:AfterOneYear2022-05-3101468514core:CurrentFinancialInstruments2023-05-3101468514core:CurrentFinancialInstruments2022-05-3101468514core:Non-currentFinancialInstruments2023-05-3101468514core:Non-currentFinancialInstruments2022-05-3101468514core:ShareCapital2023-05-3101468514core:ShareCapital2022-05-3101468514core:CapitalRedemptionReserve2023-05-3101468514core:CapitalRedemptionReserve2022-05-3101468514core:RetainedEarningsAccumulatedLosses2023-05-3101468514core:RetainedEarningsAccumulatedLosses2022-05-3101468514core:RetainedEarningsAccumulatedLosses2022-05-3101468514core:RetainedEarningsAccumulatedLosses2021-05-3101468514bus:Director12022-06-012023-05-3101468514bus:Director42022-06-012023-05-3101468514core:LandBuildingscore:OwnedOrFreeholdAssets2022-06-012023-05-3101468514core:PlantMachinery2022-06-012023-05-31014685142021-06-012022-05-3101468514core:UKTax2022-06-012023-05-3101468514core:UKTax2021-06-012022-05-3101468514core:LandBuildingscore:OwnedOrFreeholdAssets2022-05-3101468514core:PlantMachinery2022-05-31014685142022-05-3101468514core:WithinOneYear2023-05-3101468514core:WithinOneYear2022-05-3101468514core:BetweenTwoFiveYears2023-05-3101468514core:BetweenTwoFiveYears2022-05-3101468514bus:PrivateLimitedCompanyLtd2022-06-012023-05-3101468514bus:SmallCompaniesRegimeForAccounts2022-06-012023-05-3101468514bus:FRS1022022-06-012023-05-3101468514bus:Audited2022-06-012023-05-3101468514bus:Director22022-06-012023-05-3101468514bus:Director32022-06-012023-05-3101468514bus:FullAccounts2022-06-012023-05-31xbrli:purexbrli:sharesiso4217:GBP