REGISTERED NUMBER: 02040290 (England and Wales) |
Group Strategic Report, Report of the Director and |
Consolidated Financial Statements |
for the Year Ended 30 September 2022 |
for |
Oval (259) Limited |
REGISTERED NUMBER: 02040290 (England and Wales) |
Group Strategic Report, Report of the Director and |
Consolidated Financial Statements |
for the Year Ended 30 September 2022 |
for |
Oval (259) Limited |
Oval (259) Limited (Registered number: 02040290) |
Contents of the Consolidated Financial Statements |
for the Year Ended 30 September 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 4 |
Consolidated Income Statement | 7 |
Consolidated Other Comprehensive Income | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Financial Statements | 14 |
Oval (259) Limited |
Company Information |
for the Year Ended 30 September 2022 |
DIRECTOR: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
Oval (259) Limited (Registered number: 02040290) |
Group Strategic Report |
for the Year Ended 30 September 2022 |
The director presents his strategic report of the company and the group for the year ended 30 September 2022. |
The key objective has been to deliver the Group as a center of excellence and global player in miniature power transmission and control. At its core is a modular range of components that can be configured to meet an often unique customer specification. |
REVIEW OF BUSINESS |
The Group delivered a modest growth in turnover as it recovered from the impact of the Pandemic and benefited from an extended product range. Our manufacturing facility has been strengthened by continued investment in systems, capital equipment and training which is delivering the improved productivity essential to success. |
The business continues to review processes and overheads and reports the following KPI's for the year ended 30 September 2022: |
2022 | 2021 |
£'000000 | £'000000 |
Turnover | 9,440 | 10,321 |
Gross margin | 61.5% | 49.3% |
EBITDA | (2,222 | ) | 4,707 |
EBITDA (excluding fair value change of investments) | 1,684 | 1,599 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The market strives to recover from events with some success but understands that the global economy suffers some critical uncertainties. We benefit from the level of investment made in new product and a commitment to a strengthened sales team. Above all we remain committed to improving in the service we provide to the market. |
Retained profits invested in the stock market suffered a significant down turn during the period. The investment is however showing a significant gain overall and the strategy designed to retain access to cash will be continued. |
ON BEHALF OF THE BOARD: |
Oval (259) Limited (Registered number: 02040290) |
Report of the Director |
for the Year Ended 30 September 2022 |
The director presents his report with the financial statements of the company and the group for the year ended 30 September 2022. |
DIVIDENDS |
An interim dividend was paid on 31 January 2022 for £13.79 per share. The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 30 September 2022 was £1,000,000. |
DIRECTORS |
M E Hazell has held office during the whole of the period from 1 October 2021 to the date of this report. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Sumer Audit, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Oval (259) Limited |
Opinion |
We have audited the financial statements of Oval (259) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30 September 2022 and of the group's loss 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 group 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 director's 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 group's and the parent 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors 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 Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director. |
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Report of the Independent Auditors to the Members of |
Oval (259) Limited |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is responsible for assessing the group's and the parent 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 director either intends to liquidate the group or the parent company or to cease operations, or has 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Based on our understanding of the Group and industry, we identified that the principal risks of non-compliance with laws and regulations related to health and safety, employment law and company legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements of the Group.. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and taxation legislation. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure, and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the audit engagement team included: |
- Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud; |
- Understanding of management's internal controls designed to prevent and detect irregularities, and fraud; |
- Reviewing the Group's legal costs to check for non-compliance with laws and regulations and fraud; |
- Review of tax compliance with the involvement of our tax specialists in the audit; |
- Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing of expenses; |
- Testing transactions entered into outside of the normal course of the Group's business; and |
- Identifying and testing journal entries, in particular any journal entries with fraud characteristics such as journals with round numbers. |
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Oval (259) Limited |
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 a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditors |
Hermes House |
Fire Fly Avenue |
Swindon |
Wiltshire |
SN2 2GA |
Oval (259) Limited (Registered number: 02040290) |
Consolidated |
Income Statement |
for the Year Ended 30 September 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
TURNOVER | 5 | 9,439,884 | 10,321,268 |
Raw materials and consumables | 3,574,716 | 5,113,916 |
Other external expenses | 63,673 | 122,326 |
3,638,389 | 5,236,242 |
5,801,495 | 5,085,026 |
Staff costs | 6 | 2,614,563 | 2,235,429 |
Depreciation | 213,316 | 293,588 |
Other operating expenses | 1,909,322 | 1,556,064 |
4,737,201 | 4,085,081 |
OPERATING PROFIT | 7 | 1,064,294 | 999,945 |
Profit/loss on sale of |
investments | 8 | (367 | ) | 31,751 |
Fair value adjustments | 8 | (3,906,876 | ) | 3,108,323 |
(2,842,949 | ) | 4,140,019 |
Income from fixed asset investments | 322,323 | 271,735 |
Interest receivable and similar income | - | 8 |
322,323 | 271,743 |
(LOSS)/PROFIT BEFORE TAXATION | (2,520,626 | ) | 4,411,762 |
Tax on (loss)/profit | 9 | 203,113 | 136,947 |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR | ( |
) |
(Loss)/profit attributable to: |
Owners of the parent | (2,723,739 | ) | 4,274,815 |
Oval (259) Limited (Registered number: 02040290) |
Consolidated |
Other Comprehensive Income |
for the Year Ended 30 September 2022 |
2022 | 2021 |
Notes | £ | £ |
(LOSS)/PROFIT FOR THE YEAR | (2,723,739 | ) | 4,274,815 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(2,723,739 |
) |
4,274,815 |
Total comprehensive income attributable to: |
Owners of the parent | (2,723,739 | ) | 4,274,815 |
Oval (259) Limited (Registered number: 02040290) |
Consolidated Balance Sheet |
30 September 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 12 | 1,357,259 | 1,289,102 |
Investments | 13 | - | - |
1,357,259 | 1,289,102 |
CURRENT ASSETS |
Stocks | 14 | 1,801,244 | 1,422,900 |
Debtors | 15 | 2,999,456 | 2,617,760 |
Investments | 16 | 13,436,097 | 17,154,804 |
Cash at bank and in hand | 1,581,566 | 2,027,068 |
19,818,363 | 23,222,532 |
CREDITORS |
Amounts falling due within one year | 17 | 2,722,840 | 2,386,153 |
NET CURRENT ASSETS | 17,095,523 | 20,836,379 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
18,452,782 |
22,125,481 |
PROVISIONS FOR LIABILITIES | 20 | 213,740 | 162,700 |
NET ASSETS | 18,239,042 | 21,962,781 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 40,000 | 40,000 |
Capital redemption reserve | 22 | 20,000 | 20,000 |
Other reserves | 22 | 72,499 | 72,499 |
Retained earnings | 22 | 18,106,543 | 21,830,282 |
SHAREHOLDERS' FUNDS | 18,239,042 | 21,962,781 |
The financial statements were approved by the director and authorised for issue on 19 June 2023 and were signed by: |
M E Hazell - Director |
Oval (259) Limited (Registered number: 02040290) |
Company Balance Sheet |
30 September 2022 |
2022 | 2021 |
Notes | £ | £ |
CURRENT ASSETS |
Debtors | 15 |
Investments | 16 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Capital redemption reserve |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,000,000 | 1,000,000 |
The financial statements were approved by the director and authorised for issue on |
Oval (259) Limited (Registered number: 02040290) |
Consolidated Statement of Changes in Equity |
for the Year Ended 30 September 2022 |
Called up | Capital |
share | Retained | redemption | Other | Total |
capital | earnings | reserve | reserves | equity |
£ | £ | £ | £ | £ |
Balance at 1 October 2020 | 40,000 | 18,555,467 | 20,000 | 72,499 | 18,687,966 |
Changes in equity |
Dividends | - | (1,000,000 | ) | - | - | (1,000,000 | ) |
Total comprehensive income | - | 4,274,815 | - | - | 4,274,815 |
Balance at 30 September 2021 | 40,000 | 21,830,282 | 20,000 | 72,499 | 21,962,781 |
Changes in equity |
Dividends | - | (1,000,000 | ) | - | - | (1,000,000 | ) |
Total comprehensive income | - | (2,723,739 | ) | - | - | (2,723,739 | ) |
Balance at 30 September 2022 | 40,000 | 18,106,543 | 20,000 | 72,499 | 18,239,042 |
Oval (259) Limited (Registered number: 02040290) |
Company Statement of Changes in Equity |
for the Year Ended 30 September 2022 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 October 2020 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 30 September 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 30 September 2022 |
Oval (259) Limited (Registered number: 02040290) |
Consolidated Cash Flow Statement |
for the Year Ended 30 September 2022 |
2022 | 2021 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 25 | 733,027 | 881,192 |
Tax refunded / (paid) | (28,256 | ) | 40,194 |
Net cash from operating activities | 704,771 | 921,386 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (336,471 | ) | (131,159 | ) |
Purchase of current asset investments | (641,388 | ) | (811,817 | ) |
Sale of tangible fixed assets | 54,998 | 49,886 |
Sale of current asset investments | 453,220 | 595,856 |
Interest received | - | 8 |
Dividends received | 322,323 | 271,735 |
Net cash from investing activities | (147,318 | ) | (25,491 | ) |
Cash flows from financing activities |
Amount introduced by directors | 1,016,214 | 19,496 |
Amount withdrawn by directors | (1,019,169 | ) | (18,331 | ) |
Equity dividends paid | (1,000,000 | ) | (1,000,000 | ) |
Net cash from financing activities | (1,002,955 | ) | (998,835 | ) |
Decrease in cash and cash equivalents | (445,502 | ) | (102,940 | ) |
Cash and cash equivalents at beginning of year |
26 |
2,027,068 |
2,130,008 |
Cash and cash equivalents at end of year | 26 | 1,581,566 | 2,027,068 |
Oval (259) Limited (Registered number: 02040290) |
Notes to the Consolidated Financial Statements |
for the Year Ended 30 September 2022 |
1. | GENERAL INFORMATION |
The principle activities of the Group and the nature of the Group's operations are set out in the strategic report on page 2. |
2. | STATUTORY INFORMATION |
Oval (259) Limited is a |
3. | STATEMENT OF COMPLIANCE |
The financial statements of the Company and Group have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, "The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland ("FRS 102") and the Companies Act 2006. |
4. | ACCOUNTING POLICIES |
Summary of significant accounting policies |
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. |
Basis of preparation |
These financial statements are prepared under the historical cost convention, as modified by the recognition of certain financial assets and liabilities measured at fair value. |
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 2 to the financial statements. |
Basis of consolidation |
The consolidated financial statements incorporate the financial statements of the company and entities controlled by the company. Subsidiaries are all entities over which the group has control. Control is the power to govern the financial and operating policies and activities of an entity so as to obtain benefit from its activities. Consolidation has been performed on the acquisition basis of accounting. Uniform accounting policies are adopted throughout the group. |
Significant judgements and estimates |
In the application of the company's accounting policies which are described above, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experiences 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below: |
(i) Useful economic life of tangible assets |
The annual depreciation charge for tangible assets is sensitive to changes in the estimates useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. |
(ii) Stock provisioning |
The company's products are subject to changing industry demands and market trends. As a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability of stock and work in progress. |
(iii) Impairment of debtors |
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. |
Oval (259) Limited (Registered number: 02040290) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2022 |
4. | ACCOUNTING POLICIES - continued |
Revenue recognition |
Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of returns, discounts and rebates allowed by the company and value added taxes. |
The Company bases its estimate of returns on historical results, taking into consideration the type of customer, the type of transaction and specifics of each arrangement. |
Where the consideration receivable in cash or cash equivalents is deferred, and the arrangement constitutes a financing transactions, the fair value of the consideration is measured as the present value of all future receipts using the inputed rate of interest. |
The Company recognises revenue when the following conditions are satisfied: |
i) the Company has transferred to the buyer the significant risks and rewards of ownership of the goods; |
ii) the Company retains neither continuing managerial involvement to the degree associated with ownership nor effective control over the goods sold; |
iii) the amount of revenue can be measured reliably; |
iv) it is probable that the economic benefits associated with the transaction can be measured reliably. |
Sale of goods |
Turnover from the sale of goods is recognised when the goods are physically delivered to the customer. |
Oval (259) Limited (Registered number: 02040290) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2022 |
4. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs and borrowing costs capitalised. |
Depreciation and residual values |
Depreciation is provided on all tangible fixed assets, other than investment properties and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset over its expected useful life as follows: |
Freehold building - 2% on cost |
Improvements to property - 15% on cost |
Plant and machinery - 15% on cost |
Fixtures and fittings - 20% on cost and 10% on cost |
Motor vehicles - 33% on cost |
Computer equipment - 33% on cost |
The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any changes is accounted for prospectively. |
Deemed cost |
The Company previously adopted a policy of revaluing freehold land and buildings and they were stated at their revalued amount less any subsequent depreciation and accumulated impairment losses. The Company has adopted the transition exemption under FRS 102 paragraph 35.10(d) and has elected to use the previous revaluation as deemed cost. |
Subsequent additions and major components |
Subsequent costs are included in the assets carrying amount or recognised as a separate asset, as appropriate, only when it is probable that economic benefits associated with the item will flow to the company and the cost can be measured reliably. |
The carrying amount of any replaced component is derecognised. Major components are treated as a separate asset when they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life. |
Repairs and maintenance costs are expensed as incurred. |
Assets in the course of construction |
Assets in the course of construction are stated at cost. These assets are not depreciated until they are available for use. |
Derecognition |
Tangible assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in profit or loss. |
Impairment of assets |
Assets, other than those measured at fair value, as assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below: |
Non-financial assets |
At each balance sheet date non-financial assets not carried at fair value are assessed to determine whether there is an indication that the asset (or asset's cash generating unit) may be impaired. If there is such an indication the recoverable amount of the asset (or asset's cash generating unit) is compared to the carrying amount of the asset (or asset's cash generating unit). |
The recoverable amount of the asset (or asset's cash generating unit) is the higher of the fair value less costs to sell and value in use. Value is use is defined as the present value of the future cash flows before interest and tax obtainable as a result of the asset's (or asset's cash generating unit) continued use. These cash flows are discounted using a pre-tax discount rate that represents the current market risk-free rate and risks inherent in the asset. |
Oval (259) Limited (Registered number: 02040290) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2022 |
4. | ACCOUNTING POLICIES - continued |
If the recoverable amount of the asset (or asset's cash generating unit) is estimated to be lower than the carrying amount, the carrying amount is reduced to its recoverable amount. An impairment loss is recognised in the profit and loss account, unless the asset has been revalued when the amount is recognised in other comprehensive income to the extent of any previously recognised revaluation. Thereafter an excess is recognised in profit or loss. |
If an impairment loss is subsequently reversed, the carrying amount of the asset (or asset's cash generating unit) is increased to the revised estimate of its recoverable amount, but only to the extent that the revised carrying amount does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised in prior periods. A reversal of an impairment loss is recognised in the profit and loss account. |
Financial assets |
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate. |
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset's carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the report date. |
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial assets to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. |
Fixed asset investments |
Investment in subsidiary/associate company is held at cost less accumulated impairment losses. |
Stocks |
Stock is stated at the lower of cost and estimated selling price less costs to complete and sell. Stock is recognised as an expense in the period in which the related revenue is recognised. |
Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads. |
At the end of each reporting period stock is assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment is recognised in the profit and loss account. Where a reversal of the impairment is recognised the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account. |
Functional and presentation currency |
The company's functional and presentation currency is the pound sterling. |
Foreign currency transactions and balances |
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. |
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. |
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account except when deferred in other comprehensive income as qualifying cash flow hedges. |
Oval (259) Limited (Registered number: 02040290) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2022 |
4. | ACCOUNTING POLICIES - continued |
Employee benefits |
The company provides a range of benefits to employees, including paid holiday arrangements and defined benefit and defined contribution pension plans. |
Short term benefits |
Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received. |
Defined contribution pension plans |
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 obligations are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds. |
Oval (259) Limited (Registered number: 02040290) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2022 |
4. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case tax is also recognised in other comprehensive income or directly in equity respectively. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax |
Current tax is the amount of income tax payable in respect of the taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end. |
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amount expected to be paid to the tax authorities. |
Deferred tax |
Deferred tax arises from timing differences that are differences between taxable profit and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessment in periods different from those in which are recognised in financial statements. |
Deferred tax is recognised on all timing differences at the reporting date except for certain exceptions. Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
Trade debtors |
Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts. |
Cash and cash equivalent |
Cash and cash equivalents includes cash in hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less. |
Current asset investments |
Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measured) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment. |
Trade and other creditors |
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. |
Provisions |
Provisions are recognised when the company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably. |
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one time included in the same class of obligations may be small. |
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as a finance cost. |
Oval (259) Limited (Registered number: 02040290) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2022 |
4. | ACCOUNTING POLICIES - continued |
Contingencies |
Contingent liabilities are not recognised. Contingent liabilities arise as a result of past events when (a) it is not probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date or (b) when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the company's control. Contingent liabilities are disclosed in the financial statements unless the probability of an outflow of resources is remote. |
Contingent assets are not recognised. Contingent assets are disclosed in the financial statements when an inflow of economic benefit is probable. |
Share capital |
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds. |
Distributions to equity holders |
Dividends and other distributions to company's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the company's shareholders. These amounts are recognised in the statement of changes in equity. |
Related party transactions |
The company discloses transactions with related parties which are not wholly owned with the same group. It does not disclose transactions with members of the same group that are wholly owned. |
For the purposes of these financial statements, a party is considered to be related to the company if: |
i) the party has the ability, directly or indirectly, through one or more intermediaries, to control the Company or exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the company; |
ii) the company and the party are subject to common control; |
iii) the party is an associate of the company or a joint venture in which the company is a venturer; |
iv) the party is a member of key management personnel of the company or the company's parent, or a close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals; |
v) the party is a close family member of a party referred to in (i) or is an entity under the control, joint control or significant influence of such individuals; or the party is a post-employment benefit plan which is for the benefit of employees of the company or of any entity that is a related party of the company. |
Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity. |
5. | TURNOVER |
The turnover and loss (2021 - profit) before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
2022 | 2021 |
£ | £ |
United Kingdom | 62,141 | 2,298,519 |
Europe | 7,044,647 | 6,874,442 |
Rest of World | 2,333,096 | 1,148,307 |
9,439,884 | 10,321,268 |
6. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries | 2,353,845 | 1,993,244 |
Social security costs | 201,438 | 170,189 |
Other pension costs | 59,280 | 71,996 |
2,614,563 | 2,235,429 |
Oval (259) Limited (Registered number: 02040290) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2022 |
6. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2022 | 2021 |
Production | 42 | 43 |
Selling and marketing | 13 | 10 |
Administration | 2 | 2 |
2022 | 2021 |
£ | £ |
Directors' remuneration | 130,500 | 183,550 |
Directors' pension contributions to money purchase schemes | 22,550 | 40,877 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 3 |
7. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2022 | 2021 |
£ | £ |
Depreciation - owned assets | 298,192 | 295,398 |
Profit on disposal of fixed assets | (84,876 | ) | (1,811 | ) |
Auditors' remuneration | 18,599 | 16,409 |
Foreign exchange differences | 261 | 3,575 |
Rentals under operating leases | 49,663 | 52,445 |
8. | EXCEPTIONAL ITEMS |
2022 | 2021 |
£ | £ |
Profit/loss on sale of |
investments | (367 | ) | 31,751 |
Fair value adjustments | (3,906,876 | ) | 3,108,323 |
(3,907,243 | ) | 3,140,074 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the loss for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax | 152,073 | 243,354 |
R&D Claims | - | (96,722 | ) |
Total current tax | 152,073 | 146,632 |
Deferred tax | 51,040 | (9,685 | ) |
Tax on (loss)/profit | 203,113 | 136,947 |
Oval (259) Limited (Registered number: 02040290) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2022 |
9. | TAXATION - continued |
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: |
2022 | 2021 |
£ | £ |
(Loss)/profit before tax | (2,520,626 | ) | 4,411,762 |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
(478,919 |
) |
838,235 |
Effects of: |
Income not taxable for tax purposes | (61,241 | ) | (51,630 | ) |
Capital allowances in excess of depreciation | (26,952 | ) | - |
Depreciation in excess of capital allowances | - | 21,141 |
Chargeable gains | - | 14 |
Movement on stock provision | (11,482 | ) | 4,511 |
investment income |
R & D claims for prior years | - | (96,722 | ) |
Fair value adjustment | 742,306 | (590,581 | ) |
Adjustment to profit/loss on disposal of investments | (16,056 | ) | (6,377 | ) |
Deferred tax movement | 51,040 | (9,685 | ) |
Adjustment for disallowed provisions | 169 | 26,600 |
Foreign company tax paid | 4,248 | 1,441 |
Total tax charge | 203,113 | 136,947 |
10. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
11. | DIVIDENDS |
2022 | 2021 |
£ | £ |
Ordinary shares of £1 each |
Interim | 1,000,000 | 1,000,000 |
Oval (259) Limited (Registered number: 02040290) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2022 |
12. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST |
At 1 October 2021 | 380,000 | 30,270 | 3,193,777 |
Additions | - | - | 255,155 |
Disposals | - | - | (517,939 | ) |
At 30 September 2022 | 380,000 | 30,270 | 2,930,993 |
DEPRECIATION |
At 1 October 2021 | 138,700 | 30,270 | 2,537,766 |
Charge for year | 7,600 | - | 224,989 |
Eliminated on disposal | - | - | (547,817 | ) |
At 30 September 2022 | 146,300 | 30,270 | 2,214,938 |
NET BOOK VALUE |
At 30 September 2022 | 233,700 | - | 716,055 |
At 30 September 2021 | 241,300 | - | 656,011 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 October 2021 | 1,938,076 | 77,243 | 117,530 | 5,736,896 |
Additions | 44,225 | 37,091 | - | 336,471 |
Disposals | - | - | - | (517,939 | ) |
At 30 September 2022 | 1,982,301 | 114,334 | 117,530 | 5,555,428 |
DEPRECIATION |
At 1 October 2021 | 1,546,285 | 77,243 | 117,530 | 4,447,794 |
Charge for year | 61,482 | 4,121 | - | 298,192 |
Eliminated on disposal | - | - | - | (547,817 | ) |
At 30 September 2022 | 1,607,767 | 81,364 | 117,530 | 4,198,169 |
NET BOOK VALUE |
At 30 September 2022 | 374,534 | 32,970 | - | 1,357,259 |
At 30 September 2021 | 391,791 | - | - | 1,289,102 |
Oval (259) Limited (Registered number: 02040290) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2022 |
13. | FIXED ASSET INVESTMENTS |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Cropmead, Crewkerne,Somerset, TA18 7HQ |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves |
(Loss)/profit for the year | ( |
) |
Registered office: Germany |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Rotalink Gmbh is a 100% owned subsidiary of Rotalink Limited, which is based in Germany. The results of the company have been consolidated in the group accounts. |
14. | STOCKS |
Group |
2022 | 2021 |
£ | £ |
Stocks | 1,521,313 | 1,029,640 |
Work-in-progress | 113,960 | 185,061 |
Finished goods | 165,971 | 208,199 |
1,801,244 | 1,422,900 |
Stocks are stated after provisions for impairment of £459,905 (2021 - £689,764). |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Trade debtors | 2,467,707 | 2,387,210 |
Amounts owed by group undertakings | - | - |
Other Debtors | 1,197 | 488 | - | - |
Directors' current accounts | 3,729 | 774 | - | - |
Tax | 8,407 | 35,100 |
VAT | 138,108 | 87,685 | - | - |
Prepayments and accrued income | 380,308 | 106,503 |
2,999,456 | 2,617,760 |
Trade debtors are stated after provisions for impairment Nil (2021- Nil). |
Oval (259) Limited (Registered number: 02040290) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2022 |
16. | CURRENT ASSET INVESTMENTS |
Group | Company |
2020 | 2019 | 2022 | 2021 |
£ | £ | £ | £ |
Shares in group undertakings | - | - | 1 | 1 |
Listed investments | 13,436,097 | 17,154,804 | - | - |
13,436,097 | 17,154,804 | 1 | 1 |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2022 | 2021 |
£ | £ |
Trade creditors | 1,474,342 | 1,436,187 |
Tax | 147,547 | - |
Social security and other taxes | 104,205 | 57,853 |
Other creditors | 29,796 | 10,836 |
Accrued expenses | 966,950 | 881,277 |
2,722,840 | 2,386,153 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
2022 | 2021 |
£ | £ |
Within one year | 49,663 | 49,856 |
Between one and five years | 116,356 | 146,019 |
In more than five years | 20,000 | - |
186,019 | 195,875 |
Oval (259) Limited (Registered number: 02040290) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2022 |
19. | FINANCIAL INSTRUMENTS |
The company has the following financial instruments: |
2022 | 2021 |
£ | £ |
Financial assets at fair value through profit or loss |
Listed investments | 13,436,097 | 17,154,804 |
13,436,097 | 17,154,804, |
Financial assets that are debt instruments measured at amortised cost |
Trade debtors | 2,467,707 | 2,387,210 |
Directors' loan accounts | 3,729 | 774, |
2,473,435 | 2,387,984 |
Financial liabilities measured at amortised cost |
Trade creditors | 1,474,342 | 1,436,187 |
Other creditors | 29,796 | 10,836 |
1,504,138 | 1,447,023 |
20. | PROVISIONS FOR LIABILITIES |
Group |
2022 | 2021 |
£ | £ |
Deferred tax | 213,740 | 162,700 |
Group |
Deferred |
tax |
£ |
Balance at 1 October 2021 | 162,700 |
Provided during year | 51,040 |
Balance at 30 September 2022 | 213,740 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | £1 | 40,000 | 40,000 |
22. | RESERVES |
Group |
Capital |
Retained | redemption | Other |
earnings | reserve | reserves | Totals |
£ | £ | £ | £ |
At 1 October 2021 | 21,830,282 | 20,000 | 72,499 | 21,922,781 |
Deficit for the year | (2,723,739 | ) | (2,723,739 | ) |
Dividends | (1,000,000 | ) | (1,000,000 | ) |
At 30 September 2022 | 18,106,543 | 20,000 | 72,499 | 18,199,042 |
Oval (259) Limited (Registered number: 02040290) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2022 |
22. | RESERVES - continued |
23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 30 September 2022 and 30 September 2021: |
2022 | 2021 |
£ | £ |
M E Hazell |
Balance outstanding at start of year | 774 | 1,939 |
Amounts advanced | 1,019,169 | 18,331 |
Amounts repaid | (1,016,214 | ) | (19,496 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 3,729 | 774 |
24. | ULTIMATE CONTROLLING PARTY |
Mr Hazell is the ultimate controlling party. |
25. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2022 | 2021 |
£ | £ |
(Loss)/profit before taxation | (2,520,626 | ) | 4,411,762 |
Depreciation charges | 298,192 | 295,399 |
Profit on disposal of fixed assets | (84,876 | ) | (1,811 | ) |
(Profit)/Loss on sale of investment | - | (31,751 | ) |
Fair value loss (gain) on investment | 3,906,875 | (3,128,867 | ) |
Finance income | (322,323 | ) | (271,743 | ) |
1,277,242 | 1,272,989 |
Increase in stocks | (378,344 | ) | (601,109 | ) |
Increase in trade and other debtors | (355,011 | ) | (704,963 | ) |
Increase in trade and other creditors | 189,140 | 914,275 |
Cash generated from operations | 733,027 | 881,192 |
26. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 September 2022 |
30.9.22 | 1.10.21 |
£ | £ |
Cash and cash equivalents | 1,581,566 | 2,027,068 |
Year ended 30 September 2021 |
30.9.21 | 1.10.20 |
£ | £ |
Cash and cash equivalents | 2,027,068 | 2,130,008 |
Oval (259) Limited (Registered number: 02040290) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2022 |
27. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.10.21 | Cash flow | At 30.9.22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,027,068 | (445,502 | ) | 1,581,566 |
2,027,068 | (445,502 | ) | 1,581,566 |
Liquid resources |
Current asset investments | 17,154,804 | (3,718,707 | ) | 13,436,097 |
17,154,804 | (3,718,707 | ) | 13,436,097 |
Total | 19,181,872 | (4,164,209 | ) | 15,017,663 |