Pulham Steels Limited 03069518 false 2022-08-01 2023-07-31 2023-07-31 The principal activity of the company is that of the supply of steel sections. 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Registration number: 03069518

Pulham Steels Limited

Annual Report and Financial Statements

for the Year Ended 31 July 2023

 

Pulham Steels Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3 to 4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 8

Profit and Loss Account

9

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Financial Statements

14 to 25

 

Pulham Steels Limited

Company Information

Directors

P J Cahill

T P Fayers

N J Cahill

Company secretary

B A Cahill

Registered office

Old Sawmills
Pulham
Dorchester
Dorset
DT2 7DX

Auditors

Milsted Langdon LLP
Chartered Accountants
Winchester House
Deane Gate Avenue
Taunton
Somerset
TA1 2UH

 

Pulham Steels Limited

Strategic Report for the Year Ended 31 July 2023

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

Principal activity

The principal activity of the company is that of the supply of steel sections.

Fair review of the business

Under the current financial and political circumstances the company has considered 2022/3 to be a successful year. Having navigated the effects of the war in Ukraine and Brexit which brought much volatility to the market, the current financial pressures across the whole economy have supressed the demand and selling price for our products and services. In spite of this we remain confident of our position as a flexible, reliable & competitive supplier to our customers.

The company's key financial and other performance indicators during the year were as follows:

 

Unit

2023

2022

Turnover

£

10,623,439

12,356,477

Gross profit

£

1,695,824

2,602,159

Profit before tax

£

654,876

1,534,837

We are satisfied with the results when considering the various pressures on our sector over the past year.

Principal risks and uncertainties

We consider the key business risks to be market competition, fluctuating prices and liquidity of debtors.

Market competition
Constant dialogue and feedback from customers allows us to ensure our buying price leaves a comfortable margin after processing costs.

Price volatility
Steel prices can be very volatile. The management are constantly reviewing market conditions and stock levels to ensure we are not over exposed with high price material. In the event of increasing prices sales margins are increased to cover higher stock replacement costs.

Liquidity of debtors
The management uses credit risk insurance and internal business intelligence to evaluate the extent of credit offered to customers. Any credit given is constantly monitored by these systems.

Approved and authorised by the Board on 5 February 2024 and signed on its behalf by:
 

.........................................
P J Cahill
Director

 

Pulham Steels Limited

Directors' Report for the Year Ended 31 July 2023

The directors present their report and the financial statements for the year ended 31 July 2023.

Directors of the company

The directors who held office during the year were as follows:

P J Cahill

T P Fayers

N J Cahill

Dividends

Dividends were paid amounting to £448,750.

Information included in the Strategic Report

Results can be found in the strategic report.

Financial instruments

Objectives and policies

The company’s principal financial instruments comprise bank balances, invoice discounting creditor, trade creditors, trade debtors and various types of loan finance. The main purpose of these instruments is to raise funds for the company’s operations.

Price risk, credit risk, liquidity risk and cash flow risk

Cash flow is supported by confidential invoice discounting which allows the regular flow of finances to pay and maintain sound relationships with suppliers.

Credit levels offered to customers and payment history are regularly reviewed by the management to negate the risk of over exposure to certain customers or sectors.

Selling prices are regularly reviewed in line with purchasing costs to maintain sufficient margin between the two.

Future developments

As a result of labour shortages we are seeing more demand from customers seeking an outsourced processing service and the company is therefore considering the viability of expanding our processing capability to meet the increased demand and better serve customer requirements. Our customer centric approach and ability to be more agile than some of our larger competitors appeals to the market and we therefore believe the company is well placed to capitalise on this opportunity in the future.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

The auditors Milsted Langdon LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.

 

Pulham Steels Limited

Directors' Report for the Year Ended 31 July 2023

Approved by the Board on 5 February 2024 and signed on its behalf by:

P J Cahill
Director

   
     
 

Pulham Steels Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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.

 

Pulham Steels Limited

Independent Auditor's Report to the Members of Pulham Steels Limited

Opinion

We have audited the financial statements of Pulham Steels Limited (the 'company') for the year ended 31 July 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and 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 the financial statements:

give a true and fair view of the state of the company's affairs as at 31 July 2023 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

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 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 were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Pulham Steels Limited

Independent Auditor's Report to the Members of Pulham Steels Limited

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or 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; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 5, 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 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.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework;

inquired of management, and those charged with governance, about their own identification and assessment of the risks or irregularities, including known and actual, suspected or alleged instances of fraud;

 

Pulham Steels Limited

Independent Auditor's Report to the Members of Pulham Steels Limited

discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Other matters

We have determined the matters described below to be the other matters to be communicated in our report.

The comparative financial statements are unaudited and therefore the corresponding figures are unaudited.

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 an auditor’s report 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.

......................................
Mr Robert Cadwallader (Senior Statutory Auditor)
For and on behalf of Milsted Langdon LLP, Statutory Auditor
Winchester House
Deane Gate Avenue
Taunton
Somerset
TA1 2UH

6 February 2024

 

Pulham Steels Limited

Profit and Loss Account for the Year Ended 31 July 2023

Note

2023
£

2022
£

Turnover

3

10,623,439

12,356,477

Cost of sales

 

(8,927,615)

(9,754,318)

Gross profit

 

1,695,824

2,602,159

Administrative expenses

 

(1,035,629)

(1,060,034)

Other operating income

4

-

29,443

Operating profit

6

660,195

1,571,568

Other interest receivable and similar income

7

36,965

220

Interest payable and similar expenses

8

(42,284)

(36,951)

   

(5,319)

(36,731)

Profit before tax

 

654,876

1,534,837

Tax on profit

12

(113,181)

(286,836)

Profit for the financial year

 

541,695

1,248,001

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Pulham Steels Limited

Statement of Comprehensive Income for the Year Ended 31 July 2023

2023
£

2022
£

Profit for the year

541,695

1,248,001

Total comprehensive income for the year

541,695

1,248,001

 

Pulham Steels Limited

(Registration number: 03069518)
Balance Sheet as at 31 July 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

13

620,995

365,574

Current assets

 

Stocks

14

1,405,117

1,110,269

Debtors

15

2,313,646

2,889,286

Cash at bank and in hand

16

2,971,661

2,595,022

 

6,690,424

6,594,577

Creditors: Amounts falling due within one year

17

(4,104,423)

(3,884,608)

Net current assets

 

2,586,001

2,709,969

Total assets less current liabilities

 

3,206,996

3,075,543

Creditors: Amounts falling due after more than one year

17

(251,988)

(267,593)

Provisions for liabilities

18

(154,286)

(100,173)

Net assets

 

2,800,722

2,707,777

Capital and reserves

 

Called up share capital

20

2

2

Profit and loss account

2,800,720

2,707,775

Total equity

 

2,800,722

2,707,777

Approved and authorised by the Board on 5 February 2024 and signed on its behalf by:
 

P J Cahill
Director

   
     
 

Pulham Steels Limited

Statement of Changes in Equity for the Year Ended 31 July 2023

Share capital
£

Retained earnings
£

Total
£

At 1 August 2022

2

2,707,775

2,707,777

Profit for the year

-

541,695

541,695

Dividends

-

(448,750)

(448,750)

At 31 July 2023

2

2,800,720

2,800,722

Share capital
£

Retained earnings
£

Total
£

At 1 August 2021

2

1,761,441

1,761,443

Profit for the year

-

1,248,001

1,248,001

Dividends

-

(301,667)

(301,667)

At 31 July 2022

2

2,707,775

2,707,777

 

Pulham Steels Limited

Statement of Cash Flows for the Year Ended 31 July 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

541,695

1,248,001

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

211,041

126,603

Profit on disposal of tangible assets

5

(22,738)

(123)

Finance income

7

(36,965)

(220)

Finance costs

8

42,284

36,951

Income tax expense

12

113,181

286,836

 

848,498

1,698,048

Working capital adjustments

 

Increase in stocks

14

(294,848)

(251,750)

Decrease in trade debtors

15

575,640

93,581

Increase/(decrease) in trade creditors

17

890,037

(89,989)

Cash generated from operations

 

2,019,327

1,449,890

Income taxes paid

12

(283,902)

(260,009)

Net cash flow from operating activities

 

1,735,425

1,189,881

Cash flows from investing activities

 

Interest received

7

36,965

220

Acquisitions of tangible assets

(483,474)

(129,235)

Proceeds from sale of tangible assets

 

39,750

7,000

Net cash flows from investing activities

 

(406,759)

(122,015)

Cash flows from financing activities

 

Interest paid

8

(42,284)

(36,951)

Repayment of bank borrowing

 

(111,111)

(111,112)

Proceeds from finance lease draw downs

 

165,022

63,476

(Decrease)/increase in invoice discounting creditor

 

(475,399)

359,232

Payments to finance lease creditors

 

(39,505)

(38,077)

Dividends paid

23

(448,750)

(301,667)

Net cash flows from financing activities

 

(952,027)

(65,099)

Net increase in cash and cash equivalents

 

376,639

1,002,767

Cash and cash equivalents at 1 August

 

2,595,022

1,592,255

Cash and cash equivalents at 31 July

 

2,971,661

2,595,022

 

Pulham Steels Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
Old Sawmills
Pulham
Dorchester
Dorset
DT2 7DX

These financial statements were authorised for issue by the Board on 5 February 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in sterling, which is the functional currency of the company, and rounded to the nearest £.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

 

Pulham Steels Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the Balance Sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

25% reducing balance

Motor vehicles

25% reducing balance

Furniture, fittings and equipment

33% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct costs that have been incurred in bringing the stocks to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

Pulham Steels Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

A dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

Pulham Steels Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

2023
£

2022
£

Sale of goods

10,623,439

12,356,477

All sales are to customers located in the UK.

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
£

2022
£

Miscellaneous other operating income

-

29,443

5

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

2023
£

2022
£

Gain on disposal of tangible fixed assets

22,738

123

6

Operating profit

Arrived at after charging/(crediting):

2023
£

2022
£

Depreciation expense

211,041

126,603

Operating lease expense - property

157,332

157,332

Profit on disposal of property, plant and equipment

(22,738)

(123)

Hire of plant and machinery

13,025

33,600

Auditor's remuneration

12,800

-

 

Pulham Steels Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

7

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

36,623

211

Other finance income

342

9

36,965

220

8

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

11,884

6,589

Interest on obligations under finance leases and hire purchase contracts

8,745

4,856

Other finance costs

21,655

25,506

42,284

36,951

9

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

701,027

727,293

Social security costs

60,041

64,483

Other short-term employee benefits

3,967

1,263

Pension costs, defined contribution scheme

134,489

255,772

Other employee expense

5,466

8,284

904,990

1,057,095

The average number of persons employed by the company (including directors) during the year, analysed by category, was as follows:

2023
No.

2022
No.

Production

8

9

Administration and support

4

4

Sales

1

2

Distribution

9

8

Directors

3

3

25

26

 

Pulham Steels Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

10

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

102,335

115,367

Contributions paid to money purchase schemes

62,639

122,634

164,974

238,001

During the year the number of directors who were receiving benefits and share incentives was as follows:

2023
No.

2022
No.

Accruing benefits under money purchase pension schemes

3

3

11

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

12,800

-


 

 

Pulham Steels Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

12

Taxation

Tax charged/(credited) in the income statement:

2023
£

2022
£

Current taxation

UK corporation tax

59,068

276,795

Deferred taxation

Arising from origination and reversal of timing differences

54,113

10,041

Tax expense in the income statement

113,181

286,836

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of 21.01% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

654,876

1,534,837

Corporation tax at standard rate

137,560

291,619

Effect of expense not deductible in determining taxable profit (tax loss)

84

17

Decrease in UK and foreign current tax from adjustment for prior periods

-

(7,275)

Tax (decrease)/increase from effect of capital allowances and depreciation

(24,514)

2,453

Tax increase from other short-term timing differences

51

22

Total tax charge

113,181

286,836

Deferred tax

Deferred tax assets and liabilities

2023

Asset
£

Liability
£

Accelerated capital allowances

-

155,249

Other short-term timing differences

963

-

963

155,249

2022

Asset
£

Liability
£

Accelerated capital allowances

-

101,085

Other short-term timing differences

912

-

912

101,085

 

Pulham Steels Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

13

Tangible assets

Furniture, fittings and equipment
 £

Plant and machinery
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 August 2022

98,401

785,740

926,780

1,810,921

Additions

1,633

122,669

359,172

483,474

Disposals

-

(57,033)

(161,778)

(218,811)

At 31 July 2023

100,034

851,376

1,124,174

2,075,584

Depreciation

At 1 August 2022

93,099

695,558

656,690

1,445,347

Charge for the year

4,761

51,789

154,491

211,041

Eliminated on disposal

-

(51,324)

(150,475)

(201,799)

At 31 July 2023

97,860

696,023

660,706

1,454,589

Carrying amount

At 31 July 2023

2,174

155,353

463,468

620,995

At 31 July 2022

5,302

90,182

270,090

365,574

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

 

2023
£

2022
£

Motor vehicles

328,007

165,343

     

14

Stocks

2023
£

2022
£

Stocks

1,505,117

1,185,269

Stock provision

(100,000)

(75,000)

1,405,117

1,110,269

Impairment of stocks

The amount of impairment loss included in profit or loss is £25,000 (2022 - £25,000).

 

Pulham Steels Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

15

Debtors

Current

2023
£

2022
£

Trade debtors

1,463,418

2,029,148

Other debtors

790,000

790,000

Prepayments

60,228

70,138

 

2,313,646

2,889,286

16

Cash and cash equivalents

2023
£

2022
£

Cash at bank

139,737

94,720

Short-term deposits

2,831,924

2,500,302

2,971,661

2,595,022

17

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

21

1,442,028

1,887,416

Trade creditors

 

2,315,715

1,326,322

Amounts due to related parties

24

134,941

64,587

Social security and other taxes

 

108,963

258,905

Outstanding defined contribution pension costs

 

3,587

3,451

Other creditors

 

868

(300)

Accruals

 

39,254

60,326

Corporation tax liability

12

59,067

283,901

 

4,104,423

3,884,608

Due after one year

 

Loans and borrowings

21

251,988

267,593

18

Provisions for liabilities

Deferred tax
£

Total
£

At 1 August 2022

100,173

100,173

Increase in existing provisions

54,113

54,113

At 31 July 2023

154,286

154,286

 

Pulham Steels Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

19

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £134,489 (2022 - £255,772).

Contributions totalling £3,587 (2022 - £3,451) were payable to the scheme at the end of the year and are included in creditors.

20

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

A Ordinary of £0.01 each

102

1

102

1

B Ordinary of £0.01 each

88

1

88

1

C Ordinary of £0.01 each

10

-

10

-

 

200

2

200

2

Shareholders of all classes of ordinary shares have full voting rights, rights to capital and rights on a winding up.

 

Pulham Steels Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

21

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

83,333

194,444

Hire purchase contracts

168,655

73,149

251,988

267,593

2023
£

2022
£

Current loans and borrowings

Bank borrowings

111,111

111,111

Hire purchase contracts

60,641

30,630

Other borrowings

1,270,276

1,745,675

1,442,028

1,887,416

The bank loan is secured by way on an unlimited debenture against the company's assets. Interest is payable on the loan at base rate + 1.34%.
The hire purchase liabilities are secured against the assets to which they relate.
The invoice discounting creditor is secured against the trade debtors to which it relates.

22

Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

74,886

34,932

Later than one year and not later than five years

188,747

77,161

263,633

112,093

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

188,798

188,798

Later than one year and not later than five years

188,798

377,597

377,596

566,395

The amount of non-cancellable operating lease payments recognised as an expense during the year was £157,332 (2022 - £157,332).

 

Pulham Steels Limited

Notes to the Financial Statements for the Year Ended 31 July 2023

23

Dividends

Interim dividends paid

   

2023
£

 

2022
£

Interim dividend of £1,495.10 (2022 - £941.18) per each A Ordinary

 

152,500

 

96,000

Interim dividend of £1,732.95 (2022 - £1,090.91) per each B Ordinary

 

152,500

 

96,000

Interim dividend of £14,375.00 (2022 - £10,967.00) per each C Ordinary

 

143,750

 

109,667

   

448,750

 

301,667

24

Related party transactions

Transactions with directors

Summary of transactions with other related parties

During the year the company continued to make available a loan to another company owned by the directors. The loan is interest free and repayable on demand. At the balance sheet date the amount owed from this company was £790,000 (2022 - £790,000).
 

Loans from related parties

2023

Key management
£

Total
£

At start of period

64,587

64,587

Advanced

70,354

70,354

At end of period

134,941

134,941

2022

Key management
£

Total
£

At start of period

117,841

117,841

Repaid

(53,254)

(53,254)

At end of period

64,587

64,587

The above loan is interest free and repayable on demand.