Company registration number 02110958 (England and Wales)
HARRIS PIPEWORK FABRICATIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
HARRIS PIPEWORK FABRICATIONS LIMITED
COMPANY INFORMATION
Directors
Mr S C Harris
Mrs AS Drummond
Mr R Secker
Company number
02110958
Registered office
Planetary Road
Willenhall
West Midlands
United Kingdom
WV13 3SS
Auditor
BK Plus Audit Limited
Azzurri House
Walsall Road
Aldridge
Walsall
WS9 0RB
HARRIS PIPEWORK FABRICATIONS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
11
Statement of changes in equity
10
Notes to the financial statements
12 - 23
HARRIS PIPEWORK FABRICATIONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2023
- 1 -

The directors present the strategic report for the year ended 30 April 2023.

Principal activities

The principal activity of the company continued to be that of the manufacture and fabrication of pipework.

Review of the business

Turnover has significantly increased to £15.1m in 2023 (£11.5m in 2022). This represents an increase of 30.9%, and is fuelled by both increases in trade volumes and also steel prices. The company hopes to maintain these revenues going into financial year 2024.

Gross profit has increased year on year to 33.04% (30.39% in 2022). As above, this is being fuelled by increases in steel prices.

Administrative expenditure has remained proportionate to turnover which leads through to a strong 15.83% profit before taxation.

Principal risks and uncertainties

They key business risks affecting the company at present are:

Competitive Risks

The company is reliant on certain customers for contracts which are subject to periodic review. Renewal of these contracts is uncertain and based on financial and performance criteria. Competitive pressure in the UK is putting pressure on the industry in terms of margins.

Legislative Risks

In order to operate in its chosen market, the company must comply with various UK legislation and laws. Compliance imposts costs and failure to comply with the standards could materially impact the company’s ability to operate.

Credit Risk

The company’s trade and other debtors are actively monitored to avoid significant concentrations of credit risk as well as careful reviewing of all customers, especially those with lack of an extensive credit history. Additionally, the company pays for commercial debtor insurance.

Brexit

The UKs decision to leave the EU created uncertainty regarding its overall impact on the UK economy and its impact on the free movement of labour between the EU and the UK.

Energy Risk

The company is not immune to the energy costs which have significantly increased as a result of macroeconomic pressures such as the war in Ukraine. Energy costs are continually under review and the hope that these will decrease over the next 12 months.

2023 Risk Update

No new risks have presented themselves during the year, so continued pressure on raw materials, staff and energy prices are still the main risks and uncertainties associated with the company. These costs, where possible, have been passed onto customers.

Key performance indicators

The company measures performance on a monthly basis by reviewing turnover, gross profit margin and operating profit.

HARRIS PIPEWORK FABRICATIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 2 -

On behalf of the board

Mr S C Harris
Director
20 September 2023
HARRIS PIPEWORK FABRICATIONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2023
- 3 -

The directors present their annual report and financial statements for the year ended 30 April 2023.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr S C Harris
Mrs AS Drummond
Mr R Secker
Auditor

BK Plus Audit Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

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
Mr S C Harris
Director
20 September 2023
HARRIS PIPEWORK FABRICATIONS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2023
- 4 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

HARRIS PIPEWORK FABRICATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HARRIS PIPEWORK FABRICATIONS LIMITED
- 5 -
Opinion

We have audited the financial statements of Harris Pipework Fabrications Limited (the 'company') for the year ended 30 April 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company 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 directors' 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 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 directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

HARRIS PIPEWORK FABRICATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HARRIS PIPEWORK FABRICATIONS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are 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 directors determine is 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 directors are responsible for assessing the 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 an auditor's report 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

From the preliminary stages of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of audit procedures to mitigate those risks; ensuring that the audit evidence obtained is sufficient and appropriate to support our opinion.

 

In response to the risks identified, specific to this entity, we designed procedures which included, but were not limited to:

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

HARRIS PIPEWORK FABRICATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HARRIS PIPEWORK FABRICATIONS LIMITED
- 7 -

Other matters which we are required to address

This is a first year audit engagement and as such, the comparative figures are unaudited, and we provide no assurance over them. Sufficient opening balance work has been performed to enable an unqualified opinion over the current year figures.

Christopher Hession C.A.
Senior Statutory Auditor
For and on behalf of BK Plus Audit Limited
20 September 2023
Azzurri House
Walsall Road
Aldridge
Walsall
WS9 0RB
HARRIS PIPEWORK FABRICATIONS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2023
- 8 -
Year
Unaudited Year
ended
ended
30 April
30 April
2023
2022
Notes
£
£
Turnover
15,103,923
11,536,395
Cost of sales
(10,113,803)
(8,030,763)
Gross profit
4,990,120
3,505,632
Administrative expenses
(2,599,021)
(2,297,361)
Operating profit
3
2,391,099
1,208,271
Interest receivable and similar income
7
14,596
284
Interest payable and similar expenses
8
(14,031)
(15,014)
Profit before taxation
2,391,664
1,193,541
Tax on profit
9
(431,430)
(252,606)
Profit for the financial year
1,960,234
940,935

The profit and loss account has been prepared on the basis that all operations are continuing operations.

HARRIS PIPEWORK FABRICATIONS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2023
- 9 -
Year
Unaudited Year
ended
ended
2023
2022
£
£
Profit for the year
1,960,234
940,935
Other comprehensive income
-
-
Total comprehensive income for the year
1,960,234
940,935
HARRIS PIPEWORK FABRICATIONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 May 2021
5
95
2,411,045
2,411,145
Period ended 30 April 2022:
Profit and total comprehensive income
-
-
940,935
940,935
Dividends
10
-
-
(102,000)
(102,000)
Balance at 30 April 2022
5
95
3,249,980
3,250,080
Year ended 30 April 2023:
Profit and total comprehensive income
-
-
1,960,234
1,960,234
Dividends
10
-
-
(106,000)
(106,000)
Balance at 30 April 2023
5
95
5,104,214
5,104,314
HARRIS PIPEWORK FABRICATIONS LIMITED
BALANCE SHEET
AS AT
30 APRIL 2023
30 April 2023
- 11 -
Unaudited
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
988,128
787,950
Current assets
Stocks
12
774,929
453,487
Debtors
13
4,386,012
4,164,223
Cash at bank and in hand
2,940,779
2,263,986
8,101,720
6,881,696
Creditors: amounts falling due within one year
14
(3,649,560)
(3,729,971)
Net current assets
4,452,160
3,151,725
Total assets less current liabilities
5,440,288
3,939,675
Creditors: amounts falling due after more than one year
15
(202,724)
(542,074)
Provisions for liabilities
Deferred tax liability
18
133,250
147,521
(133,250)
(147,521)
Net assets
5,104,314
3,250,080
Capital and reserves
Called up share capital
20
5
5
Capital redemption reserve
95
95
Profit and loss reserves
5,104,214
3,249,980
Total equity
5,104,314
3,250,080

These financial statements have been prepared 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 20 September 2023 and are signed on its behalf by:
Mr S C Harris
Director
Company Registration No. 02110958
HARRIS PIPEWORK FABRICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
- 12 -
1
Accounting policies
Company information

Harris Pipework Fabrications Limited is a private company limited by shares incorporated in England and Wales. The registered office is , Planetary Road, Willenhall, West Midlands, United Kingdom, WV13 3SS.

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.

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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet 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. 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.

 

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.

1.4
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 land and buildings
4% per annum of cost
Leasehold land and buildings
20% per annum on cost
Plant and equipment
7.5% per annum on cost
Fixtures and fittings
15% per annum on cost
Motor vehicles
12.5% per annum on reducing balance
HARRIS PIPEWORK FABRICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 13 -

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.

1.5
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.

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.

1.6
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.

1.7
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.

HARRIS PIPEWORK FABRICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 14 -
1.8
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.

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.

1.9
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.

1.10
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.

HARRIS PIPEWORK FABRICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 15 -
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.

1.11
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.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

HARRIS PIPEWORK FABRICATIONS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
1,701,443
1,258,664
Interest paid
(14,031)
(15,014)
Income taxes paid
(225,168)
(4,767)
Net cash inflow from operating activities
1,462,244
1,238,883
Investing activities
Purchase of tangible fixed assets
(377,110)
(243,632)
Proceeds from disposal of tangible fixed assets
46,034
59,590
Repayment of loans
(19,618)
-
0
Interest received
14,596
284
Net cash used in investing activities
(336,098)
(183,758)
Financing activities
Repayment of bank loans
(377,479)
(124,438)
Payment of finance leases obligations
34,126
(6,390)
Dividends paid
(106,000)
(102,000)
Net cash used in financing activities
(449,353)
(232,828)
Net increase in cash and cash equivalents
676,793
822,297
Cash and cash equivalents at beginning of year
2,263,986
1,441,689
Cash and cash equivalents at end of year
2,940,779
2,263,986
HARRIS PIPEWORK FABRICATIONS LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 17 -
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
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
150,095
123,472
Profit on disposal of tangible fixed assets
(19,197)
(20,052)
Operating lease charges
17,342
10,011
4
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
8,000
-
0
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
68
67

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,990,064
1,636,442
Social security costs
191,889
162,389
Pension costs
642,949
463,599
2,824,902
2,262,430
HARRIS PIPEWORK FABRICATIONS LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 18 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
161,111
165,155
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
14,596
284
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
14,596
284
8
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
14,031
15,014
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
445,701
202,550
Deferred tax
Origination and reversal of timing differences
(14,271)
50,056
Total tax charge
431,430
252,606
HARRIS PIPEWORK FABRICATIONS LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
9
Taxation
(Continued)
- 19 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
2,391,664
1,193,541
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
454,416
226,773
Tax effect of expenses that are not deductible in determining taxable profit
953
991
Effect of change in corporation tax rate
11,560
-
0
Permanent capital allowances in excess of depreciation
(46,099)
(44,834)
Depreciation on assets not qualifying for tax allowances
24,871
19,650
Other non-reversing timing differences
(14,271)
50,026
Taxation charge for the year
431,430
252,606
10
Dividends
2023
2022
£
£
Final paid
106,000
102,000
HARRIS PIPEWORK FABRICATIONS LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 20 -
11
Tangible fixed assets
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 May 2022
11,522
199,179
1,442,646
261,239
397,605
2,312,191
Additions
-
0
-
0
106,269
55,802
215,039
377,110
Disposals
-
0
-
0
-
0
-
0
(106,938)
(106,938)
At 30 April 2023
11,522
199,179
1,548,915
317,041
505,706
2,582,363
Depreciation and impairment
At 1 May 2022
-
0
199,179
924,898
246,798
153,366
1,524,241
Depreciation charged in the year
-
0
-
0
61,328
8,266
80,501
150,095
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(80,101)
(80,101)
At 30 April 2023
-
0
199,179
986,226
255,064
153,766
1,594,235
Carrying amount
At 30 April 2023
11,522
-
0
562,689
61,977
351,940
988,128
At 30 April 2022
11,522
-
0
517,748
14,441
244,239
787,950
12
Stocks
2023
2022
£
£
Raw materials and consumables
708,745
426,632
Work in progress
66,184
26,855
774,929
453,487
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,551,244
2,269,058
Other debtors
1,746,291
1,825,235
Prepayments and accrued income
88,477
69,930
4,386,012
4,164,223
HARRIS PIPEWORK FABRICATIONS LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 21 -
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
16
118,083
124,000
Obligations under finance leases
17
102,955
101,041
Trade creditors
2,059,569
2,123,738
Corporation tax
465,125
244,592
Other taxation and social security
252,093
301,258
Other creditors
620,248
804,006
Accruals and deferred income
31,487
31,336
3,649,560
3,729,971
15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16
-
0
371,562
Obligations under finance leases
17
202,724
170,512
202,724
542,074
16
Loans and overdrafts
2023
2022
£
£
Bank loans
118,083
495,562
Payable within one year
118,083
124,000
Payable after one year
-
0
371,562

The long-term loans are secured by a fixed and floating charge over the assets of the company.

17
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
102,955
101,041
In two to five years
202,724
170,512
305,679
271,553

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

HARRIS PIPEWORK FABRICATIONS LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 22 -
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
133,250
147,521
2023
Movements in the year:
£
Liability at 1 May 2022
147,521
Credit to profit or loss
(14,271)
Liability at 30 April 2023
133,250

The deferred tax liability set out above is expected to reverse within [12 months] and relates to accelerated capital allowances that are expected to mature within the same period.

19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
642,949
463,599

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
5
5
5
5
21
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Name of related party
Nature of relationship
Other related parties
HARRIS PIPEWORK FABRICATIONS LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
21
Related party transactions
(Continued)
- 23 -
Description of
Income
Payments
transaction
2023
2022
2023
2022
£
£
£
£
Other related parties
Rent
-
0
-
0
55,000
55,000

Annual rental £55,000 (2022 - £55,000) is payable to the Director's pension fund for use of commercial premises on normal commercial terms.

The company gave an interest free loan to Harris Property Associated Limited, a company in which Mr S C Harris is also a director. At the balance sheets date £1,716,972 (2022 - £1,815,535) was included in other debtors.

 

22
Directors' transactions

Dividends totalling £6,000 (2022 - £2,000) were paid in the year in respect of shares held by the company's directors.

23
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
1,960,234
940,935
Adjustments for:
Taxation charged
431,430
252,606
Finance costs
14,031
15,014
Investment income
(14,596)
(284)
Gain on disposal of tangible fixed assets
(19,197)
(20,052)
Depreciation and impairment of tangible fixed assets
150,095
123,472
Movements in working capital:
Increase in stocks
(321,442)
(219,293)
Increase in debtors
(202,171)
(1,224,254)
(Decrease)/increase in creditors
(296,941)
1,390,520
Cash generated from operations
1,701,443
1,258,664
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