Holywell Engineering Limited - Period Ending 2021-06-30

Holywell Engineering Limited

Contents

Balance Sheet	1
Notes to the Unaudited Financial Statements	2 to 7

Holywell Engineering Limited

(Registration number: 00993860)
Balance Sheet as at 30 June 2021

	Note	2021 £	2020 £
Fixed assets
Tangible assets	4	71	96
Current assets
Debtors	5	674,903	673,045
Cash at bank and in hand		13,859	6,289
		688,762	679,334
Creditors: Amounts falling due within one year	6	(471)	(149)
Net current assets		688,291	679,185
Total assets less current liabilities		688,362	679,281
Creditors: Amounts falling due after more than one year	6	(3,688,501)	(3,688,501)
Net liabilities		(3,000,139)	(3,009,220)
Capital and reserves
Called up share capital	9	201	201
Profit and loss account		(3,000,340)	(3,009,421)
Total equity		(3,000,139)	(3,009,220)

For the financial year ending 30 June 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Directors' Report or the Profit and Loss Account has been taken.

Approved and authorised by the director on 28 March 2022

.........................................

A D Little
Director

Holywell Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2021

1	General information

The company is a private company limited by share capital, incorporated in England and Wales. The company's registration number is 00993860.

The address of its registered office is:
C/o Bissell & Brown
Charter House
56 High Street
Sutton Coldfield
West Midlands
B72 1UJ
United Kingdom

The principal place of business is:
Backworth Mining Office
Shiremoor
Newcastle upon Tyne
NE27 0AE

These financial statements were authorised for issue by the director on 28 March 2022.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

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.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

Going concern

The accounts are drawn up on a going concern basis on the assumption that the funders, trade creditors and shareholders continue to support the company.

The directors have undertaken not to seek repayment of the loan for £3,530,156 within the next 12 months.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Holywell Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2021 (continued)

2	Accounting policies (continued)

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Plant and machinery	25% reducing balance
Fixtures, fittings and equipment	25% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Financial instruments

Trade debtors

Trade debtors which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price. Trade debtors are subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.

Where the arrangement with a trade debtor constitutes a financing transaction, the debtor is initially and subsequently measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument.

A provision for impairment of trade debtors is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in profit or loss for the excess of the carrying value of the trade debtor over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in profit or loss.

Holywell Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2021 (continued)

2	Accounting policies (continued)

Financial liabilities and equity

Financial instruments are classified as liabilities and equity instruments 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.

Trade creditors

Trade creditors payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

Where the arrangement with a trade creditor constitutes a financing transaction, the creditor is initially and subsequently measured at the present value of future payments discounted at a market rate of interest for a similar instrument.

Borrowings

Borrowings are initially recognised at the transaction price, including transaction costs, and subsequently measured at amortised cost using the effective interest method. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and other similar charges.

Commitments to receive a loan are measured at cost less impairment.

Derecognition of financial assets and liabilities

A financial asset is derecognised only when the contractual rights to cash flows expire or are settled, or substantially all the risks and rewards of ownership are transferred to another party, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. A financial liability (or part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled or expires.

3	Staff numbers

The average number of persons employed (including the director) during the year was 1 (2020 - 1).

Holywell Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2021 (continued)

4	Tangible assets

	Fixtures and fittings £	Plant and machinery £	Total £
Cost or valuation
At 1 July 2020	3,429	13,979	17,408
At 30 June 2021	3,429	13,979	17,408
Depreciation
At 1 July 2020	3,429	13,883	17,312
Charge for the year	-	25	25
At 30 June 2021	3,429	13,908	17,337
Carrying amount
At 30 June 2021	-	71	71
At 30 June 2020	-	96	96

5

Debtors

	Note	2021  £	2020  £
Amounts owed by group undertakings and undertakings in which the company has a participating interest	8	673,815	671,815
Other debtors		1,088	1,230
Total current trade and other debtors		674,903	673,045

Holywell Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2021 (continued)

6

Creditors

Creditors: amounts falling due within one year

	Note	2021 £	2020 £
Due within one year
Trade creditors		14	149
Taxation and social security		457	-
		471	149

Creditors: amounts falling due after more than one year

	2021 £	2020 £
Due after one year
Amounts owed to group undertakings and undertakings in which the company has a participating interest	3,688,501	3,688,501

7	Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of guarantees not included in the balance sheet is £Nil (2020 - £2,000). The company is party to an unlimited multilateral guarantee to its bankers HSBC together with its associated companies Holywell Mining Group Limited, Holywell Group International Limited and Holywell Engineering Group Limited. The guarantee is dated 28 November 1991 and is in favour of HM Revenue and Customs.

Holywell Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2021 (continued)

8	Related party transactions

Income and receivables from related parties

2021	Associates £
Provision for doubtful debts	673,815

2020	Associates £
Provision for doubtful debts	671,815

Expenditure with and payables to related parties

2021	Associates £
Amounts payable to related party	3,688,501

2020	Associates £
Amounts payable to related party	3,688,501

9	Share capital

Allotted, called up and fully paid shares

	2021		2020
	No.	£	No.	£
Ordinary shares share of £1 each	201	201	201	201

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions: Holders of the ordinary share capital have a right to vote and receive dividends.