11h 29min, feb 27, 2025 y - Seaward Electronic Ltd Key WP Review

Description:

Manufacturing electrical safety testing equipment 80% income
Repairs, calibration, sell spares 20%
Fully substantive
PM £145k Group R&P £400k
FRS 102

Financial review
-Turnover static £24.8m
-GP 29% PY32%
-distribution costs +£700k to £2.1m due to salaries up by £1m overall
-Admin exp static £2.4m
-OP 11% vs 16%
-TFA £800k to £2m acquired IP asset externally
-Inventory -£700k to £4.5m mainly raw materials
-Receivables -£700k to £3.2m largely trade receivables
-Cash +£400k to £1.6m
-Creditors -£1m to £2.7m mainly trade suppliers

Key Audit topics
- equipment rental; should be capitalised, depreciated and lessor income
- dilapidations survey not accrued; client wants to accrue upon departure £250k total survey
- IP acquisition is software proprietory rights £730k plus directly attributanle prof fees £66k. client booked as AUC and not depreciating; evidence lack of use
-warranty provision; set up spreadsheet horizontal. focus on utilisation

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