Company registration number 02030900 (England and Wales)
SPECIAL MACHINED PRODUCTS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
PAGES FOR FILING WITH REGISTRAR
SPECIAL MACHINED PRODUCTS LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
Notes to the financial statements
2 - 5
SPECIAL MACHINED PRODUCTS LIMITED
BALANCE SHEET
AS AT 31 MAY 2023
31 May 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
Tangible assets
4
1,293,128
1,135,725
Current assets
Stocks
86,260
211,592
Debtors
5
1,531,202
1,047,210
Cash at bank and in hand
806,092
467,651
2,423,554
1,726,453
Creditors: amounts falling due within one year
6
(852,524)
(722,496)
Net current assets
1,571,030
1,003,957
Total assets less current liabilities
2,864,158
2,139,682
Provisions for liabilities
(234,000)
(172,000)
Net assets
2,630,158
1,967,682
Capital and reserves
Called up share capital
7
6
6
Profit and loss reserves
2,630,152
1,967,676
Total equity
2,630,158
1,967,682
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered 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 16 November 2023 and are signed on its behalf by:
A K Beardshaw
Director
Company Registration No. 02030900
SPECIAL MACHINED PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
- 2 -
1
Accounting policies
Company information
Special Machined Products Limited is a private company limited by shares incorporated in England and Wales. The registered office is Bacon Lane, Sheffield, S9 3NH.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The financial statements of the company are consolidated in the financial statements of Special Steel Co. Limited. These consolidated financial statements are available from its registered office, Bacon Lane, Sheffield, S9 3NH.
1.2
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.
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.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Plant and equipment
10% or 20% straight line
Motor vehicles
20% straight line
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.
1.4
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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).
1.5
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.
SPECIAL MACHINED PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 3 -
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.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
1.7
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.
1.8
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.
Deferred tax
Deferred taxation is provided at appropriate rates on all timing differences using the liability method.
1.9
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.
1.10
Leases
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
31
29
SPECIAL MACHINED PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 4 -
3
Intangible fixed assets
Goodwill
£
Cost
At 1 June 2022 and 31 May 2023
150,000
Amortisation and impairment
At 1 June 2022 and 31 May 2023
150,000
Carrying amount
At 31 May 2023
At 31 May 2022
4
Tangible fixed assets
Plant and equipment
Motor vehicles
Total
£
£
£
Cost
At 1 June 2022
3,025,459
73,653
3,099,112
Additions
289,667
84,994
374,661
Disposals
(46,903)
(46,903)
At 31 May 2023
3,315,126
111,744
3,426,870
Depreciation and impairment
At 1 June 2022
1,907,196
56,191
1,963,387
Depreciation charged in the year
193,677
12,023
205,700
Eliminated in respect of disposals
(35,345)
(35,345)
At 31 May 2023
2,100,873
32,869
2,133,742
Carrying amount
At 31 May 2023
1,214,253
78,875
1,293,128
At 31 May 2022
1,118,263
17,462
1,135,725
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
368,803
525,136
Amounts owed by group undertakings
818,136
466,747
Other debtors
344,263
55,327
1,531,202
1,047,210
SPECIAL MACHINED PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 5 -
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
546,079
448,509
Corporation tax
38,739
Other taxation and social security
97,493
153,310
Other creditors
170,213
120,677
852,524
722,496
7
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
6 Ordinary shares of £1 each
6
6
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Lisa Leighton
Statutory Auditor:
BHP LLP
9
Parent company
The immediate and ultimate parent undertaking and controlling party is Special Steel Co Limited, which prepares group financial statements.
The registered office of Special Steel Co Limited is Bacon Lane, Sheffield, South Yorkshire, S9 3NH.