REGISTERED NUMBER: |
Report of the Directors and |
Unaudited Financial Statements |
for the Year Ended 31 March 2023 |
for |
Architectural Bronze Limited |
REGISTERED NUMBER: |
Report of the Directors and |
Unaudited Financial Statements |
for the Year Ended 31 March 2023 |
for |
Architectural Bronze Limited |
Architectural Bronze Limited (Registered number: 09288067) |
Contents of the Financial Statements |
for the Year Ended 31 March 2023 |
Page |
Company Information | 1 |
Report of the Directors | 2 |
Chartered Accountants' Report | 4 |
Balance Sheet | 5 |
Notes to the Financial Statements | 6 |
Architectural Bronze Limited |
Company Information |
for the Year Ended 31 March 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
ACCOUNTANTS: |
Chartered Accountants & Business Advisers |
15 Newland |
Lincoln |
Lincolnshire |
LN1 1XG |
Architectural Bronze Limited (Registered number: 09288067) |
Report of the Directors |
for the Year Ended 31 March 2023 |
The directors present their report with the financial statements of the company for the year ended 31 March 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the design and manufacture of bronze windows, doors, screens and secondary glazing. |
REVIEW OF BUSINESS |
Architectural Bronze Limited is a family owned and managed business whose primary activity consists of the design and manufacture of bespoke bronze windows, doors, screens and secondary glazing, and the ancillary supply of timber frames and glass units for its product. It also offers a measuring, templating and installation service for those that require it. |
Market Conditions in 2022/23 |
There is no doubt that general economic conditions were tough during the year. Growth in UK GDP remained flat for the year to March 2023 and the economy has not yet managed to return to its pre-pandemic levels. Inflation remained consistently high during the year with annual inflation to March 2023 measured at 10.1%. Regular pay, on the other hand, only increased by 6.9% in the year to March so that household incomes diminished in real terms. Meanwhile, in an attempt to control inflation, the Bank of England increased its base lending rate from 0.75% to 4.25% during the course of the year to March with subsequent rises in May, June and August and probably more increases to come. This has further contributed to a reduction in household disposable income and has acted as a drag on economic growth. |
We were not alone in experiencing unprecedented increases in the cost of materials and labour during the year. This eased towards the end of the year but the short term outlook remains uncertain with a continuing war in Europe, high inflation and market uncertainty over interest rates. Although we are not able to exert control over these factors, we are better placed than most businesses to approach the coming year with confidence. |
Results |
Despite the economic conditions, we continued to work hard to secure a strong order book for the year ahead and continued to experience a consistent demand for our products. With a significant order book as we entered the year and with orders in the year of £3.32m, there was a regular supply of work to fully occupy both the factory throughout the year and into the new financial year. |
Our turnover for the year was £6.0m compared with £4.3m in the previous year, an increase of 39.3%. Our profit before tax also increased from £324k in 2022 to £579k in 2023, an increase of £255k. |
We remain focused on controlling overheads and, although overheads increased from £1.22m to £1.33m in the year, an increase of 9.0%, this was still below the rate of inflation. |
We carry no debt whatsoever in the company and our overall cash reserves have strengthened again during the year with cash balances at the year-end of £3.6m (2022: £2.3m). Stable cash flow is a good measure of a company's performance and the strong liquidity of the company is an indicator that the company is well placed for the coming year and has the necessary resources to withstand any extended periods of uncertainty or economic instability in the future. Our strong cash position has also allowed us to continue to hold a significant level of stock, providing our clients with long term assurances and confidence in our ability to deliver projects to them. |
Similarly, our balance sheet has strengthened in the year and at the year-end our net asset value stood at £4.1m (2022: £3.7m) |
A key reason for the strong liquidity and strong balance sheet of the business is our policy to retain and re-invest most of our profits back into the business. With corporate bankruptcies increasing significantly, it is reassuring for our clients to know that they are dealing with a financially resilient, well-run business that will be around over the long term. |
Investment in our business |
We continue to invest in state-of-the-art technology, machinery and equipment and remain focused on improving systems, manufacturing processes and streamlining production, to create greater efficiencies throughout the whole of the business. |
PRINCIPAL RISKS AND UNCERTAINTIES |
With ongoing economic challenges and geopolitical turbulence around the world we have identified the supply of materials to the business as an ongoing risk. We have mitigated such risks by making sure our stock levels are sufficiently high and making sure that we have in place more than one supplier for our key materials. |
There are some ongoing risks of skilled labour shortages which we have mitigated by paying competitive rates for our workers, multi-skilling our teams and continuing to train and develop people. |
We continually monitor the market and, where appropriate, undertake forward buying to take advantage of favourable market conditions and minimise the risk posed by adverse swings in the exchange rate. |
Architectural Bronze Limited (Registered number: 09288067) |
Report of the Directors |
for the Year Ended 31 March 2023 |
We have invested in our IT security infrastructure to ensure that we have resilient systems in the face of any IT failures or cyber attacks, through a full disaster recovery plan and off site back up processes. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
ON BEHALF OF THE BOARD: |
Chartered Accountants' Report to the Board of Directors |
on the Unaudited Financial Statements of |
Architectural Bronze Limited |
The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies. |
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Architectural Bronze Limited for the year ended 31 March 2023 which comprise the Income Statement, Balance Sheet, Statement of Changes in Equity and the related notes from the company's accounting records and from information and explanations you have given us. |
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance. |
This report is made solely to the Board of Directors of Architectural Bronze Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Architectural Bronze Limited and state those matters that we have agreed to state to the Board of Directors of Architectural Bronze Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Architectural Bronze Limited and its Board of Directors, as a body, for our work or for this report. |
It is your duty to ensure that Architectural Bronze Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Architectural Bronze Limited. You consider that Architectural Bronze Limited is exempt from the statutory audit requirement for the year. |
We have not been instructed to carry out an audit or a review of the financial statements of Architectural Bronze Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements. |
Chartered Accountants & Business Advisers |
15 Newland |
Lincoln |
Lincolnshire |
LN1 1XG |
Architectural Bronze Limited (Registered number: 09288067) |
Balance Sheet |
31 March 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
CURRENT ASSETS |
Stocks | 5 |
Debtors | 6 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 7 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 8 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 9 |
Retained earnings |
SHAREHOLDERS' FUNDS |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
Architectural Bronze Limited (Registered number: 09288067) |
Notes to the Financial Statements |
for the Year Ended 31 March 2023 |
1. | STATUTORY INFORMATION |
Architectural Bronze Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover is represented by the value of work done on contracts during the year, where the value includes both direct costs and overheads absorbed into contracts. No profit is taken on contracts until they are complete but if a contract is showing a loss then it is recognised immediately. |
Tangible fixed assets |
Land and Buildings | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Pensions |
The pension costs charges in the financial statements represent the contribution payable by the company during the year. |
Amounts recoverable on contracts |
The amount by which recorded turnover on contracts is in excess of payments on account is classified as amounts recoverable on contracts under debtors. |
Payments on account |
The balance of payments on account in excess of amounts offset against amounts recoverable on contracts and long term contract balances is classified as payments received on account under creditors,where applicable. |
Architectural Bronze Limited (Registered number: 09288067) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | TANGIBLE FIXED ASSETS |
Fixtures |
Land and | Plant and | and | Motor |
Buildings | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
5. | STOCKS |
2023 | 2022 |
£ | £ |
Stocks |
Work-in-progress |
6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts recoverable on contracts |
Other debtors |
Prepayments and accrued income |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 181,250 | 15,427 |
Other creditors |
Payments on account | 1,397,871 | 1,227,650 |
Accrued expenses |
Architectural Bronze Limited (Registered number: 09288067) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
8. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | 21,436 | 31,517 |
Deferred |
tax |
£ |
Balance at 1 April 2022 |
Provided during year | ( |
) |
Change in deferred tax rates | 5,144 |
Balance at 31 March 2023 |
9. | CALLED UP SHARE CAPITAL |
Allotted and issued: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |