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REGISTERED NUMBER: 02223162 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

FOR

ORBITAL FABRICATIONS LIMITED

ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 16


ORBITAL FABRICATIONS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MARCH 2023







DIRECTORS: Mr I C Pearson
Mr P A Pearson



SECRETARY: Mrs S J Scrivener



REGISTERED OFFICE: Unit 1
Stephenson Road
St Ives
Cambridgeshire
PE27 3WJ



REGISTERED NUMBER: 02223162 (England and Wales)



ACCOUNTANTS: S J Kilshaw Partners Ltd
11c Kings Parade
Cambridge
Cambridgeshire
CB2 1SJ

ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

The directors present their strategic report for the year ended 31 March 2023.

REVIEW OF BUSINESS
During the financial year to the 31st of March 2023 the company has made pleasing progress in delivering against the boards strategic plan despite the challenging operating environment.

Revenue has increased by 25% to £13 million due to strong growth across the customer base. In addition to this was the successful outcome of Research and Development work undertaken in the year to 31st March 2022. In August 2022 we gained back unit 21 that was leased out on a short-term basis as we needed more manufacturing capacity. This unit underwent a complete rebuild and included a new mezzanine flooring for storage above, a new clean room was installed below with all new services. In 2022/23 we have invested a lot of time and money on new complete build projects in the semiconductor and hydrogen industries and in January 2023 we moved into unit 21 and these ongoing contracts are being manufactured there.

To support the increased demand the business has invested significantly in staff which has seen an increase in head count from 60 employees to 82 employees across all departments.

Despite the increase in staff costs arising from the increase in head count and additional spend increasing the company's office and factory capacity this growth is further reflected in operating profit which has increased from £994,598 to £2,345,511

The Boards outlook for 2023/2024 remains very positive as the company has a strong order book at the balance sheet date. Our open order book is currently running at an average of £7 million, which is pleasing. We are also currently looking at alternative energy companies as this is now the fastest growing industry sector that we can provide services for, however the operating environment is expected to remain competitive.

Whilst there are indicators that markets remain buoyant there continues to be challenges in the wider economy which will impact the trading environment as we progress through into 2024.

The year to 31st March 2023, has been a very difficult but exciting year with improvements in all areas of the company i.e., the EFACS/ERP System installed in 2021 was a massive change to all departments of Orbital and for our staff but in the last year we are now seeing all the benefits of this and couldn't have operated as we did without it, we have exceeded as a company all our targets set at the beginning of March 2022.

Overall the board feel that this year has been Orbital's best year to date and the future look very encouraging.


ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

PRINCIPAL RISKS AND UNCERTAINTIES
LIQUIDITY RISK
The company seeks to manage its financial risk by ensuring sufficient cash resources are available to meet foreseeable needs.

CREDIT RISK
Credit risk associated with trade debtors is managed by the credit control functions which continually monitors the age and size of balances due.

RECRUITMENT AND RETENTION OF STAFF
The loss of key individuals is important to the delivery of the company's strategy. The company seeks to retain its key employees by providing above market rates of compensation and benefits.

CYBER SECURITY
Cyber and data security remain a key risk as technology and third-party cloud-based applications remain susceptible to the threat of cyber-attacks. A data breach or attack could result in operational disruption which could reduce the effectiveness of company IT systems. This in turn could result in the loss of income, financial, customer or employee data resulting in reputational damage. To mitigate these risks the company employees a range of proactive and reactive security controls.

INFLATIONARY COST PRESSURES
Suppliers may look to pass on inflationary increases in their input prices. Other areas may also be subject to inflationary pressure such as utility bills, staff costs and other variable costs. Such increases may be difficult to offset or fully pass on to customer. However, the board seek to mitigate this risk through the continued negotiation with suppliers to reduce the impact of price inflation and undertake regular dialogue with customers concerning pricing.

PREMISES CAPACITY
The company has fully utilised its available office and factory floor capacity and therefore this could be a limiting factor in the ability of the company to undertake further contracts. This has been mitigated in part by taking possession of a freehold industrial unit previously let to a third party by the company.

KEY PERFORMANCE INDICATORS
The directors monitor the company's progress and strategic direction by reference to certain financial key performance indicators. A summary of key performance indicators used is set out below:

2023 2022

Turnover £13.6m £10.8m

Gross margin 34% 27%

Operating profit margin 15% 9%


ON BEHALF OF THE BOARD:





Mr P A Pearson - Director


18 October 2023

ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162)

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.

DIVIDENDS
No dividends will be distributed for the year ended 31 March 2023.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report.

Mr I C Pearson
Mr P A Pearson

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:

-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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director 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 company's auditors are aware of that information.

AUDITORS
The auditors, Thompson Taraz Rand Audit and Assurance Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:



Mrs S J Scrivener - Secretary


18 October 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ORBITAL FABRICATIONS LIMITED

Opinion
We have audited the financial statements of Orbital Fabrications Limited (the 'company') for the year ended 31 March 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 except for the matters detailed within the Basis for Qualified Opinion Paragraph the financial statements present fairly in all material respects the financial position of Orbital Fabrications Limited as at 31st March 2023.

Basis for qualified 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 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. We were appointed as auditors of the company on the 9th March 2023 and thus did not observe the counting of physical stock at the beginning of the year. We were unable to satisfy ourselves by alternative means concerning stock quantities held at the 31st March 2022.

Opening stocks effect the financial performance and cash flows for the current financial year, we were unable to determine whether adjustments might have been necessary.

We were also unable to obtain sufficient appropriate audit evidence concerning opening work in progress of £639,188 as our scope was limited due to constraints of the accounting software package.

We were also unable to obtain sufficient and appropriate audit evidence concerning the opening bank balances and how these reconciled from source data to the amounts included in the financial statements at 31st March 2022.

Consequently we were unable to determine whether any adjustment to opening bank balances, opening stock and work in progress was necessary in respect of the reported bank and cash, profit for the year and the net cash flows from operating activities reported in the cash flow statement.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ORBITAL FABRICATIONS LIMITED


Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, 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.

The comparative figures for the year ended 31st March 2022 are unaudited as the company was exempt under section 477 of the Companies Act 2006.

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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

As detailed under the basis for qualified opinion we did not receive the information and explanation considered necessary for the purpose of our audit concerning opening stock, work in progress and opening bank balances. We also identified further concerns over the accounting system as it was identified that the trial balance did not balance by £5,628 and reconciliation differences remain between source data and the financial statements of £33,247 (credit) on the Business current account and £20,482 (debit) on the Business Deposit Account. We therefore consider that adequate accounting records have not been kept.

We have nothing to report concerning the remaining 'other matters required to be reported by exception' where:

- returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ORBITAL FABRICATIONS LIMITED


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:

We obtained an understanding of the legal and regulatory frameworks applicable to the company and the industry in which it operates through our general commercial and sector experience and discussions with management. We determined that the following laws and regulations were most significant: the Companies Act 2006, FRS 102 'the Financial Reporting Standards applicable in the UK and relevant UK tax legislation. In addition, we concluded that there are certain laws and regulations that may have an effect on the determination of the amounts and disclosures within the financial statements such as Health and Safety laws and regulation and Employment Legislation.

We made inquiries with management to understand whether there were any instances of non-compliance with laws-and regulations or whether they had any knowledge of actual, or suspected fraud. From the procedures performed we did not identify any matters relating to non-compliance with laws and regulation or matters in relation to fraud.

We evaluated directors and managements incentives and opportunities for fraudulent manipulation of the financial statements (including management override of controls) and determined the principal risks were related to the posting of manual journal entries, management bias through application of judgement and assumptions in significant accounting estimates particular relating to allocation, slow moving and obsolete stock provision and revenue recognition.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and. performed our audit in accordance with auditing standards; For example, the further· removed none compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standard would identify it.

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non­compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

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
ORBITAL FABRICATIONS 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.




Andrew Rand (Senior Statutory Auditor)
for and on behalf of Thompson Taraz Rand Audit and Assurance Ltd
10 Jesus Lane
Cambridge
Cambridgeshire
CB5 8BA

18 October 2023

ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162)

INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023

31.3.23 31.3.22
(Unaudited)
Notes £    £   

TURNOVER 13,617,142 10,789,116

Cost of sales 8,818,694 7,894,460
GROSS PROFIT 4,798,448 2,894,656

Administrative expenses 2,454,301 1,946,716
2,344,147 947,940

Other operating income 1,364 46,658
OPERATING PROFIT 4 2,345,511 994,598

Interest receivable and similar income 4,253 150
2,349,764 994,748

Interest payable and similar expenses 5 538 370
PROFIT BEFORE TAXATION 2,349,226 994,378

Tax on profit 6 411,047 181,362
PROFIT FOR THE FINANCIAL YEAR 1,938,179 813,016

ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023

31.3.23 31.3.22
(Unaudited)
Notes £    £   

PROFIT FOR THE YEAR 1,938,179 813,016


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

1,938,179

813,016

ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162)

BALANCE SHEET
31 MARCH 2023

31.3.23 31.3.22
(Unaudited)
Notes £    £   
FIXED ASSETS
Tangible assets 8 754,501 719,073

CURRENT ASSETS
Stocks 9 2,165,640 1,202,420
Debtors 10 3,183,954 2,632,364
Cash at bank and in hand 1,667,170 449,820
7,016,764 4,284,604
CREDITORS
Amounts falling due within one year 11 (2,738,257 ) (1,919,736 )
NET CURRENT ASSETS 4,278,507 2,364,868
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,033,008

3,083,941

PROVISIONS FOR LIABILITIES 15 (58,625 ) (47,737 )
NET ASSETS 4,974,383 3,036,204

CAPITAL AND RESERVES
Called up share capital 16 1,000 1,000
Retained earnings 17 4,973,383 3,035,204
SHAREHOLDERS' FUNDS 4,974,383 3,036,204

The financial statements were approved by the Board of Directors and authorised for issue on 18 October 2023 and were signed on its behalf by:





Mr P A Pearson - Director


ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 April 2021 1,000 2,718,188 2,719,188

Changes in equity
Dividends - (496,000 ) (496,000 )
Total comprehensive income - 813,016 813,016
Balance at 31 March 2022 1,000 3,035,204 3,036,204

Changes in equity
Total comprehensive income - 1,938,179 1,938,179
Balance at 31 March 2023 1,000 4,973,383 4,974,383

ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023

31.3.23 31.3.22
(Unaudited)
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,270,689 984,043
Interest paid (538 ) (370 )
Provision for retentions 10,562 -
Tax paid (52,628 ) (476,046 )
Taxation refund - 103,308
Net cash from operating activities 1,228,085 610,935

Cash flows from investing activities
Purchase of tangible fixed assets (118,762 ) (194,581 )
Interest received 4,252 150
Net cash from investing activities (114,510 ) (194,431 )

Cash flows from financing activities
Amount introduced by directors (60,927 ) -
Amount withdrawn by directors - 3,200
Equity dividends paid - (496,000 )
Net cash from financing activities (60,927 ) (492,800 )

Increase/(decrease) in cash and cash equivalents 1,052,648 (76,296 )
Cash and cash equivalents at beginning of year 2 449,820 526,116

Cash and cash equivalents at end of year 2 1,502,468 449,820

ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
31.3.23 31.3.22
(Unaudited)
£    £   
Profit before taxation 2,349,226 994,378
Depreciation charges 83,334 91,885
Finance costs 538 370
Finance income (4,253 ) (150 )
2,428,845 1,086,483
Increase in stocks (963,220 ) (31,629 )
Increase in trade and other debtors (551,589 ) (1,017,564 )
Increase in trade and other creditors 356,653 946,753
Cash generated from operations 1,270,689 984,043

2. 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 31 March 2023
31.3.23 1.4.22
£    £   
Cash and cash equivalents 1,667,170 449,820
Bank overdrafts (164,702 ) -
1,502,468 449,820
Year ended 31 March 2022
31.3.22 1.4.21
(Unaudited)
£    £   
Cash and cash equivalents 449,820 765,377
Bank overdrafts - (239,261 )
449,820 526,116


ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023

3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.22 Cash flow At 31.3.23
£    £    £   
Net cash
Cash at bank and in hand 449,820 1,217,350 1,667,170
Bank overdrafts - (164,702 ) (164,702 )
449,820 1,052,648 1,502,468
Total 449,820 1,052,648 1,502,468

ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1. STATUTORY INFORMATION

Orbital Fabrications Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates
Useful economic lives of tangible fixed assets:
Tangible fixed assets are depreciated over their expected useful lives taking into consideration residual values, where appropriate. The actual lives of the assets and residual values are assessed and amended when necessary to reflect the current estimates based on economic utilisation and physical condition of the assets.

Doubtful debts:
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade debtors, management considers factors including the current credit rating of the debtor, the ageing of the debtor and historical experience regarding payment history.

Slow moving stock:
Management apply judgement in evaluating stock movement and possible obsolescence. This judgement is based on managements' knowledge of the stock, customer demand as well as stock age. At each balance sheet date stocks are reviewed for potential impairment and written down where appropriate.

Provision for retentions:
The company recognises a provision based on management judgement against possible remedial costs to be incurred during a period that usually covers 12 months from the date of completion.

Turnover
Turnover shown in the profit and loss account represents the value of outstanding retentions withheld by customers for completed but unvoiced work, applications for payment in respect of the value of work completed, together with amounts invoiced during the year for the manufacture of spool assemblies, gas delivery systems as well as Orbital and TIG welding. Revenue is recognised in relation to engineering concept design services, leak testing and CNC machining services once the right to consideration has been earnt . All revenue is recognised exclusive of Value Added Tax and after adjusting for any 'work in progress' at the year end.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Freehold property - 2% on cost
Improvements to property - 20% on reducing balance
Plant and machinery - 33% on cost and 20% on reducing balance
Motor vehicles - 20% on reducing balance

ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

2. ACCOUNTING POLICIES - continued

Stocks
Stocks 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.

Work in progress is valued at the cost of materials, plus direct labour and an apportionment of overheads.

Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets or financial liabilities or equity instruments.

Basic financial assets:
Basic financial assets which include assets and such as debtors, 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 constitute a financing transaction, where the transaction is measured at the present value of future receipts are discounted at a market rate of interest. Assets receivable within one year are not discounted.

Basic financial liabilities:
Basic financial liabilities. including creditors, are initially measured at transaction price net of transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not discounted.

Taxation
Taxation for the year comprises current and deferred tax. 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.

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 material 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.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Provisions
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

3. EMPLOYEES AND DIRECTORS
31.3.23 31.3.22
(Unaudited)
£    £   
Wages and salaries 3,504,475 2,656,164
Social security costs 197,101 158,395
Other pension costs 58,668 46,739
3,760,244 2,861,298

The average number of employees during the year was as follows:
31.3.23 31.3.22
(Unaudited)

Admin 27 21
Production 53 37
80 58

31.3.23 31.3.22
(Unaudited)
£    £   
Directors' remuneration 509,399 440,550
Directors' pension contributions to money purchase schemes 2,642 2,642

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

3. EMPLOYEES AND DIRECTORS - continued

Information regarding the highest paid director is as follows:
31.3.23 31.3.22
(Unaudited)
£    £   
Emoluments etc 321,316 257,864
Pension contributions to money purchase schemes 1,321 1,321

4. OPERATING PROFIT

The operating profit is stated after charging:

31.3.23 31.3.22
(Unaudited)
£    £   
Hire of plant and machinery 11,734 49,965
Other operating leases 49,750 49,875
Depreciation - owned assets 83,334 91,885
Auditors' remuneration 9,000 -

5. INTEREST PAYABLE AND SIMILAR EXPENSES
31.3.23 31.3.22
(Unaudited)
£    £   
Bank interest 538 370

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.3.23 31.3.22
(Unaudited)
£    £   
Current tax:
UK corporation tax 452,812 157,330
R & D tax refund for 2021 (42,091 ) -
Total current tax 410,721 157,330

Deferred tax 326 24,032
Tax on profit 411,047 181,362

ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

6. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

31.3.23 31.3.22
(Unaudited)
£    £   
Profit before tax 2,349,226 994,378
Profit multiplied by the standard rate of corporation tax in the UK of 19% (2022 -
19%)

446,353

188,932

Effects of:
Expenses not deductible for tax purposes 7,743 571
Capital allowances in excess of depreciation (1,284 ) (32,173 )
R & D tax refund for 2021 (42,091 ) -
Deferred tax 326 24,032
Total tax charge 411,047 181,362

7. DIVIDENDS
31.3.23 31.3.22
(Unaudited)
£    £   
Final - 361,000
Interim - 135,000
- 496,000

8. TANGIBLE FIXED ASSETS
Improvements
Freehold to Plant and
property property machinery
£    £    £   
COST
At 1 April 2022 422,083 159,606 886,072
Additions - 54,926 39,588
At 31 March 2023 422,083 214,532 925,660
DEPRECIATION
At 1 April 2022 50,650 131,261 672,717
Charge for year 8,442 5,669 45,845
At 31 March 2023 59,092 136,930 718,562
NET BOOK VALUE
At 31 March 2023 362,991 77,602 207,098
At 31 March 2022 371,433 28,345 213,355

ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

8. TANGIBLE FIXED ASSETS - continued

Fixtures
and Motor
fittings vehicles Totals
£    £    £   
COST
At 1 April 2022 514,631 93,614 2,076,006
Additions 24,248 - 118,762
At 31 March 2023 538,879 93,614 2,194,768
DEPRECIATION
At 1 April 2022 441,753 60,552 1,356,933
Charge for year 16,930 6,448 83,334
At 31 March 2023 458,683 67,000 1,440,267
NET BOOK VALUE
At 31 March 2023 80,196 26,614 754,501
At 31 March 2022 72,878 33,062 719,073

9. STOCKS
31.3.23 31.3.22
(Unaudited)
£    £   
Stocks 1,128,757 563,232
Work-in-progress 1,036,883 639,188
2,165,640 1,202,420

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.3.23 31.3.22
(Unaudited)
£    £   
Trade debtors 3,153,373 2,601,275
Other debtors 1,507 2,325
Prepayments 29,074 28,764
3,183,954 2,632,364

ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.3.23 31.3.22
(Unaudited)
£    £   
Bank loans and overdrafts (see note 12) 164,702 -
Trade creditors 1,522,371 1,235,773
Corporation Tax 396,172 38,079
Social security and other taxes 127,551 119,481
VAT 205,280 88,112
Other creditors 73,915 88,529
Directors' loan accounts 139,308 200,235
Accrued expenses 108,958 149,527
2,738,257 1,919,736

12. LOANS

An analysis of the maturity of loans is given below:

31.3.23 31.3.22
(Unaudited)
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 164,702 -

13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.3.23 31.3.22
(Unaudited)
£    £   
Within one year 10,234 38,004
Between one and five years 84,455 -
94,689 38,004

14. SECURED DEBTS

On the 4th February 2019 a Fixed charge was registered by Barclays Bank Plc over the assets of the company.

15. PROVISIONS FOR LIABILITIES
31.3.23 31.3.22
(Unaudited)
£    £   
Deferred tax
Accelerated capital allowances 326 24,032
Provision b/fwd 47,737 23,705
48,063 47,737

ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

31.3.23 31.3.22
(Unaudited)
£    £   
Other provisions
Provision for retentions 10,562 -

Aggregate amounts 58,625 47,737

Deferred
tax
£   
Balance at 1 April 2022 47,737
Provided during year 326
Balance at 31 March 2023 48,063

Deferred tax has been recognised in respect of the excess of capital allowances over depreciation.

A provision has been recognised regarding funds held on retention (included in 'trade debtors'), The company provides a 12 month guarantee against all material, labour and component costs and as such a provision has been recognised, based on an estimate of future costs to be incurred against this guarantee.

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.3.23 31.3.22
value: £    £   
1,000 Ordinary £1 1,000 1,000

17. RESERVES
Retained
earnings
£   

At 1 April 2022 3,035,204
Profit for the year 1,938,179
At 31 March 2023 4,973,383

ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

18. RELATED PARTY DISCLOSURES

Key management personnel of the entity or its parent (in the aggregate).

During the year under review the directors loaned the company £290,000. These amounts were interest free and repaid in full during the year under review. Further advances of £60,927 were paid to the directors. The balance outstanding at the end of the year amounted to £139,307 (2022: £200,234) and is repayable to the directors on demand, and disclosed within other creditors due in less than 1 year.

Included in other creditors is a loan provided by a shareholder and employee of the business amounting to £70,117 (2022: £49,607). This is interest free and repayable on demand and disclosed within other creditors due in less than 1 year.

During the year under review the company paid rent of £49,750 (2022: £49,750) to a pension scheme of which the directors are beneficiaries.

During the year, a total of key management personnel compensation of £1,220,765 was paid.