Company registration number 02021691 (England and Wales)
ROWE HANKINS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
PAGES FOR FILING WITH REGISTRAR
ROWE HANKINS LIMITED
CONTENTS
Page
Balance sheet
2 - 3
Statement of changes in equity
4
Notes to the financial statements
5 - 11
ROWE HANKINS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2023
- 1 -
The directors present their annual report and financial statements for the year ended 31 July 2023.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were:
L C Crawford
P Briscoe
A R Emmerson
(Appointed 1 August 2022)
M S Nolan
(Appointed 1 August 2022)
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
P Briscoe
Director
12 March 2024
ROWE HANKINS LIMITED
BALANCE SHEET
- 2 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
43,868
74,892
Current assets
Stocks
374,001
331,020
Debtors
5
1,353,036
1,420,798
Cash at bank and in hand
310,650
618,579
2,037,687
2,370,397
Creditors: amounts falling due within one year
7
(516,030)
(586,378)
Net current assets
1,521,657
1,784,019
Total assets less current liabilities
1,565,525
1,858,911
Creditors: amounts falling due after more than one year
6
(22,435)
(32,387)
Provisions for liabilities
(5,206)
(7,714)
Net assets
1,537,884
1,818,810
Capital and reserves
Called up share capital
4,500
4,500
Share premium account
1,900
1,900
Other reserves
400
400
Profit and loss reserves
1,531,084
1,812,010
Total equity
1,537,884
1,818,810
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 July 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
ROWE HANKINS LIMITED
BALANCE SHEET (CONTINUED)
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 12 March 2024 and are signed on its behalf by:
P Briscoe
Director
Company registration number 02021691 (England and Wales)
ROWE HANKINS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023
- 4 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 August 2021
4,500
1,900
400
1,980,318
1,987,118
Year ended 31 July 2022:
Profit and total comprehensive income
-
-
-
131,692
131,692
Dividends
-
-
-
(300,000)
(300,000)
Balance at 31 July 2022
4,500
1,900
400
1,812,010
1,818,810
Year ended 31 July 2023:
Profit and total comprehensive income
-
-
-
19,074
19,074
Dividends
-
-
-
(300,000)
(300,000)
Balance at 31 July 2023
4,500
1,900
400
1,531,084
1,537,884
ROWE HANKINS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
- 5 -
1
Accounting policies
Company information
Rowe Hankins Limited is a private company limited by shares incorporated in England and Wales. The registered office is Power House, Mason Street, Bury, Lancashire, BL9 0RH.
The principal activity of the company continued to be that of design, manufacture, distribution, service and maintenance of railway electrical and electronic systems.
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
Atruet the time of approving the financial statements, taking into account the forecasts, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus 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.
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 are recoverable.
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.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost, net of depreciation and any impairment losses.
ROWE HANKINS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 6 -
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Building alterations
10% straight line
Plant and machinery
15% / 20% straight line
Fixtures, fittings & equipment
10% / 33% straight line
Motor vehicles
20% straight line
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
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.
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.
1.7
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.
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.
1.8
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.
1.9
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.
ROWE HANKINS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 7 -
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.
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 and loans from fellow group, 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.
1.10
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.
1.11
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.
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.
ROWE HANKINS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 8 -
1.12
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.
1.13
Retirement benefits
The company operates a defined contribution pension scheme, the assets of which are held separately from those of the company in independently administered funds.
Contributions to the deferred contribution pension scheme are charged to profit or loss in the year to which the contributions relate.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease.
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.
ROWE HANKINS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 9 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Depreciation
The depreciation expense is the recognition of the decline in the value of the asset and allocation of the cost of the asset over the periods in which the asset will be used. Judgments are made on the estimated useful life of the assets which are regularly reviewed to reflect the changing environment.
Stock provision
The provision is based on a review of old/slow moving stock lines and the estimated recoverability of those stock lines. The estimated recoverability is based on past experience and subsequent recoverability after the year end. Judgements are made on the estimated recoverability of the stock lines which are regularly reviewed to reflect the changing environment.
Debtors
The trade debtors balance is the amounts receivable from customers at the year end. A review has been performed to identify any potential bad debts and the recoverability of debtors at the year end. Judgements are made to determine the ability of customers to pay their outstanding balance.
3
Employees
2023
2022
Number
Number
Total
28
32
ROWE HANKINS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 10 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 August 2022
185,545
427,461
613,006
Additions
17,349
17,349
Disposals
(21,323)
(21,323)
At 31 July 2023
185,545
423,487
609,032
Depreciation and impairment
At 1 August 2022
173,258
364,856
538,114
Depreciation charged in the year
7,054
28,212
35,266
Eliminated in respect of disposals
(8,216)
(8,216)
At 31 July 2023
180,312
384,852
565,164
Carrying amount
At 31 July 2023
5,233
38,635
43,868
At 31 July 2022
12,287
62,605
74,892
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
461,303
524,086
Amounts owed by group undertakings
818,951
818,951
Other debtors
72,782
77,761
1,353,036
1,420,798
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
22,435
32,387
ROWE HANKINS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 11 -
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
9,952
9,707
Trade creditors
207,145
149,286
Corporation tax
18,185
Other taxation and social security
18,277
89,252
Other creditors
280,656
319,948
516,030
586,378
Net obligations under finance lease and hire purchase contracts, included within Other creditors, are secured by fixed charges on the assets concerned.
The invoice discounting facility, included within bank and cash, is secured over the book debts of the company.
Included within other creditors is a balance of £50,000 (2022: £100,000) due to the Rowe Hankins (1988) Retirement Benefits Scheme. This is a 60 month fixed term secured loan facility agreement at a fixed interest rate of 4% per annum.
There is a debenture charge over the assets of the company, effective from 11 February 1993.
8
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
283,782
309,809
9
Parent company
The immediate parent company is Rowe Hankins (Holdings) Limited, a company incorporated in England & Wales.
The ultimate controlling party is Rowe Hankins EOT Trustees Limited, by virtue of its majority shareholding in the parent company's issued ordinary share capital .