REGISTERED NUMBER: 11214962 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 30 September 2023 |
for |
SPE Holdings Limited |
REGISTERED NUMBER: 11214962 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 30 September 2023 |
for |
SPE Holdings Limited |
SPE Holdings Limited (Registered number: 11214962) |
Contents of the Consolidated Financial Statements |
for the Year Ended 30 September 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Consolidated Statement of Comprehensive Income | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Financial Statements | 16 |
SPE Holdings Limited |
Company Information |
for the Year Ended 30 September 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
The Point |
Granite Way |
Mountsorrel |
Loughborough |
Leicestershire |
LE12 7TZ |
SPE Holdings Limited (Registered number: 11214962) |
Group Strategic Report |
for the Year Ended 30 September 2023 |
The directors present their strategic report of the company and the group for the year ended 30 September 2023. |
REVIEW OF BUSINESS |
Following the uncertainty encountered during 2022, due to projects delayed by the pandemic, 2023 rebounded significantly, as expected and forecast in last year's strategic report. |
2023 turnover increased significantly to £21.1m (previous year £11.7m) and Operating Profit consequently increased to £2,959,676 (previous year £455,460). |
Increasing input costs, due to the inflationary effects felt worldwide, put additional pressure on gross margins along with a shift towards a higher proportion of project work, which has a higher concentration of input costs. |
Gross Margin for 2023 was 36.6% (previous year 42.4%). Absolute Gross Profit generated in the year was significantly higher (up by 56% on the previous year), due to the increased level of turnover. |
Overhead costs were tightly controlled during the year, although the business was impacted by inflationary increases, particularly on energy inputs, and only increased by 12%. The strategy adopted during 2022 to retain key staff against an ever tightening labour market had a hugely positive effect in 2023. This allowed the business to respond quickly and positively to the huge increase in demand. |
We continue to invest in the very latest technologies including subtractive and additive manufacturing to maintain our commitment to continuous improvement and engineering excellence. Plant and equipment additions of £1.44m were made during the year as a result of this continued investment, which is needed to maintain our market position and ensure the company remains efficient. |
The outlook for the company subsequent to the reporting period remains positive, with customer orders at a record high. Customer orders on hand stood at £26.7m at 30 September 2023 (£13.2m previous year), significantly higher than usual. Turnover and profitability are therefore expected to be increased again for the year ending 30 September 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company's principal risks and uncertainties are as follows: |
1) As productivity starts to normalise globally and new credit systems are re-introduced, late payment by customers has a potential for risk. This could lead to high levels of stock held and is addressed through increased credit control effort, as well as increased efforts to reduce production lead times. |
2) As we enter new markets and deal with large new customers this poses a risk to increased bad debts if not managed correctly - this is addressed through a robust credit approval process and by minimising our exposure by setting realistic credit limits. |
3) Foreign exchange risk - a small amount of trade which requires foreign currency poses a risk that is currently addressed through hedging the currency prior to accepting any orders and aiming to purchase as much as possible from the UK. In addition to this the company operates a foreign currency bank account. |
4) As the global economy normalises following the pandemic, numerous logistical challenges have surfaced for certain commodities and materials. This risk is mitigated by having a wide approved supplier base enabling the business to have multiple sourcing options for many of its inputs. The ongoing conflict in Ukraine has increased these challenges although they remain under control. |
ON BEHALF OF THE BOARD: |
SPE Holdings Limited (Registered number: 11214962) |
Report of the Directors |
for the Year Ended 30 September 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 30 September 2023. |
DIVIDENDS |
The total distribution of dividends for the period ended 30 September 2023 will be £268,000. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 October 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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). 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Charnwood Accountants & Business Advisors LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
SPE Holdings Limited |
Opinion |
We have audited the financial statements of SPE Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30 September 2023 and of the group's 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group 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. |
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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
SPE Holdings Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 three, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
SPE Holdings 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: |
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud |
Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the Financial Statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the Financial Statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit. |
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the Financial Statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit. |
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. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs(UK).The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. As such material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment and or collusion. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We obtained an understanding of the nature of the industry and sector, including the legal and regulatory frameworks that the Company operate in and how the Company are complying with the legal and regulatory frameworks. Focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, pension legislation and UK tax legislation, including that associated with government support schemes available as a result of COVID-19.; |
We inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud; |
We 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, having obtained an understanding of the effectiveness of the control environment. |
The engagement partner assessed that the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. |
Report of the Independent Auditors to the Members of |
SPE Holdings Limited |
We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by evaluating management's incentives and opportunities for manipulation of the financial statements. This included the evaluation of the risk of management override of controls. In assessing the potential risks of material misstatement, we obtained an understanding of the company's operations, including the nature of its income and expenditure together with its objectives and strategies to understand the classes of transactions, account balances, expected financial statement disclosures and business risks that may result in risks of material misstatement. Also on the company's control environment, including the policies and procedures implemented by the company to ensure compliance with the requirements of the financial reporting framework. |
We determined that the principal risk in relation to areas of increased management judgement, which could be impacted by management bias, was through the use of journal entries that increase revenues in order to inflate results of the company and could help justify any performance related pay. |
Our audit procedures involved: |
The evaluation of the design effectiveness of controls that the company has in place to prevent and detect fraud; |
To undertake journal entry testing, with a focus on higher risk journal, such as, posted by senior management, journals with unusual attributes, journals without any descriptions, journals posted by staff not in the approved list of journals posting and closing journals posted during the preparation of the financial statements, which are material and not reoccurring or common postings which fall outside of the auditor's expectations. Together with assessing whether the judgments made in making accounting estimates are indicative of a potential bias. |
In response to the risk of irregularities and non-compliance with laws and regulations our procedures included, but which were not limited to; |
Enquiring of management as to actual and potential litigation and claims against the company; |
Completing a review of relevant legal and professional costs within the accounting records for any evidence of previously un-detected or un-reported instances of non-compliance. |
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. |
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. |
for and on behalf of |
Statutory Auditor |
The Point |
Granite Way |
Mountsorrel |
Loughborough |
Leicestershire |
LE12 7TZ |
SPE Holdings Limited (Registered number: 11214962) |
Consolidated Statement of Comprehensive Income |
for the Year Ended 30 September 2023 |
30.9.23 | 30.9.22 |
Notes | £ | £ |
TURNOVER | 3 | 21,088,949 | 11,666,136 |
Cost of sales | 13,363,136 | 6,717,929 |
GROSS PROFIT | 7,725,813 | 4,948,207 |
Administrative expenses | 5,333,295 | 4,753,574 |
2,392,518 | 194,633 |
Other operating income | 44,339 | 166,582 |
Gain/loss on revaluation of tangible assets | 522,738 | 94,169 |
OPERATING PROFIT | 5 | 2,959,595 | 455,384 |
Interest receivable and similar income | 4,720 | 3,102 |
2,964,315 | 458,486 |
Interest payable and similar expenses | 6 | 537,544 | 269,174 |
PROFIT BEFORE TAXATION | 2,426,771 | 189,312 |
Tax on profit | 7 | 289,116 | (78,977 | ) |
PROFIT FOR THE FINANCIAL YEAR |
SPE Holdings Limited (Registered number: 11214962) |
Consolidated Balance Sheet |
30 September 2023 |
30.9.23 | 30.9.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | - | - |
Tangible assets | 11 | 9,552,932 | 8,587,338 |
Investments | 12 | - | - |
9,552,932 | 8,587,338 |
CURRENT ASSETS |
Stocks | 13 | 4,996,232 | 3,252,410 |
Debtors | 14 | 9,939,580 | 4,335,253 |
Cash at bank and in hand | 796 | 62,214 |
14,936,608 | 7,649,877 |
CREDITORS |
Amounts falling due within one year | 15 | 12,464,145 | 6,112,059 |
NET CURRENT ASSETS | 2,472,463 | 1,537,818 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
12,025,395 |
10,125,156 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(4,668,312 |
) |
(4,755,098 |
) |
PROVISIONS FOR LIABILITIES | 21 | (1,098,336 | ) | (980,966 | ) |
NET ASSETS | 6,258,747 | 4,389,092 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 200 | 200 |
Revaluation reserve | 23 | 1,148,511 | 625,773 |
Retained earnings | 23 | 5,110,036 | 3,763,119 |
6,258,747 | 4,389,092 |
The financial statements were approved by the Board of Directors and authorised for issue on 16 February 2024 and were signed on its behalf by: |
Mr S J Handley - Director |
SPE Holdings Limited (Registered number: 11214962) |
Company Balance Sheet |
30 September 2023 |
30.9.23 | 30.9.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Retained earnings | 23 |
Company's profit for the financial year | 753,757 | 203,613 |
The financial statements were approved by the Board of Directors and authorised for issue on |
SPE Holdings Limited (Registered number: 11214962) |
Consolidated Statement of Changes in Equity |
for the Year Ended 30 September 2023 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 October 2021 | 200 | 4,040,999 | 531,604 | 4,572,803 |
Changes in equity |
Dividends | - | (452,000 | ) | - | (452,000 | ) |
Total comprehensive income | - | 174,120 | 94,169 | 268,289 |
Balance at 30 September 2022 | 200 | 3,763,119 | 625,773 | 4,389,092 |
Changes in equity |
Dividends | - | (268,000 | ) | - | (268,000 | ) |
Total comprehensive income | - | 1,614,917 | 522,738 | 2,137,655 |
Balance at 30 September 2023 | 200 | 5,110,036 | 1,148,511 | 6,258,747 |
SPE Holdings Limited (Registered number: 11214962) |
Company Statement of Changes in Equity |
for the Year Ended 30 September 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 October 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 September 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 September 2023 |
SPE Holdings Limited (Registered number: 11214962) |
Consolidated Cash Flow Statement |
for the Year Ended 30 September 2023 |
30.9.23 | 30.9.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (4,174,145 | ) | 668,605 |
Interest paid | (170,932 | ) | (168,013 | ) |
Interest element of hire purchase payments paid |
(136,731 |
) |
(101,161 |
) |
Tax paid | 55,450 | 4,549 |
Net cash from operating activities | (4,426,358 | ) | 403,980 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (1,440,501 | ) | (980,328 | ) |
Sale of tangible fixed assets | 152,906 | 684,235 |
Interest received | 4,720 | 1,969 |
Net cash from investing activities | (1,282,875 | ) | (294,124 | ) |
Cash flows from financing activities |
Loan repayments in year | (428,390 | ) | (1,059,367 | ) |
New hire purchase agreements | 1,465,117 | 1,136,828 |
Capital repayments in year | (1,072,405 | ) | (756,617 | ) |
Amount withdrawn by directors | (141,430 | ) | (450,843 | ) |
Movement on invoice discounting | 6,117,323 | 1,089,061 |
Equity dividends paid | (268,000 | ) | - |
Net cash from financing activities | 5,672,215 | (40,938 | ) |
(Decrease)/increase in cash and cash equivalents | (37,018 | ) | 68,918 |
Cash and cash equivalents at beginning of year |
2 |
(275,661 |
) |
(344,579 |
) |
Cash and cash equivalents at end of year | 2 | (312,679 | ) | (275,661 | ) |
SPE Holdings Limited (Registered number: 11214962) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 September 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30.9.23 | 30.9.22 |
£ | £ |
Profit before taxation | 2,426,771 | 189,312 |
Depreciation charges | 795,492 | 674,574 |
Loss on disposal of fixed assets | 49,245 | 10,325 |
Gain on revaluation of fixed assets | (522,738 | ) | (94,169 | ) |
Exchange rate losses/(gains) | 18 | (4,866 | ) |
Government grants | (24,357 | ) | (161,716 | ) |
Finance costs | 537,544 | 269,174 |
Finance income | (4,720 | ) | (3,102 | ) |
3,257,255 | 879,532 |
Increase in stocks | (1,743,822 | ) | (597,657 | ) |
Increase in trade and other debtors | (5,462,897 | ) | (24,878 | ) |
(Decrease)/increase in trade and other creditors | (224,681 | ) | 411,608 |
Cash generated from operations | (4,174,145 | ) | 668,605 |
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 30 September 2023 |
30.9.23 | 1.10.22 |
£ | £ |
Cash and cash equivalents | 796 | 62,214 |
Bank overdrafts | (313,475 | ) | (337,875 | ) |
(312,679 | ) | (275,661 | ) |
Year ended 30 September 2022 |
30.9.22 | 1.10.21 |
£ | £ |
Cash and cash equivalents | 62,214 | 477 |
Bank overdrafts | (337,875 | ) | (345,056 | ) |
(275,661 | ) | (344,579 | ) |
SPE Holdings Limited (Registered number: 11214962) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 September 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.10.22 | Cash flow | At 30.9.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 62,214 | (61,418 | ) | 796 |
Bank overdrafts | (337,875 | ) | 24,400 | (313,475 | ) |
(275,661 | ) | (37,018 | ) | (312,679 | ) |
Debt |
Finance leases | (3,124,266 | ) | (392,711 | ) | (3,516,977 | ) |
Debts falling due within 1 year | (321,840 | ) | 7,021 | (314,819 | ) |
Debts falling due after 1 year | (2,295,800 | ) | 421,369 | (1,874,431 | ) |
(5,741,906 | ) | 35,679 | (5,706,227 | ) |
Total | (6,017,567 | ) | (1,339 | ) | (6,018,906 | ) |
SPE Holdings Limited (Registered number: 11214962) |
Notes to the Consolidated Financial Statements |
for the Year Ended 30 September 2023 |
1. | STATUTORY INFORMATION |
SPE Holdings Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated financial statements incorporate the assets, liabilities and results of the Company and its subsidiary undertakings up to 30th September each year. |
In preparing these financial statements, merger accounting has been applied, in accordance with FRS102 s19. The financial statements therefore aggregate the results of the Company and its subsidiary undertakings for the two full years to 30th September 2018 as if the Group had been in existence for that full period. |
The financial statements of all subsidiary undertakings are prepared to the same reporting date as the Company. All subsidiary undertakings have been consolidated. |
Turnover |
Turnover represents the amounts (excluding value added tax) derived from the provision of goods and services to customers during the year. |
Revenue is recognised when the significant risks and rewards of the goods or services provided have transferred to the buyer, the amount of revenue can be measured reliably and it is probable that the economic benefits associated with the transaction will flow to the company. |
Revenue is measured at the fair value of the consideration receivable from the sale of goods and services to third parties after deducting discounts. Revenue includes duties which the company pays as principal, but excludes amounts collected on behalf of other parties, such as value added tax or other sales taxes. |
Revenue of the company comprises the following key streams: |
Sale of goods |
Revenue on the sale of goods delivered is recognised when goods have been dispatched to the customer for collection or have been delivered to the location specified by the customer. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
SPE Holdings Limited (Registered number: 11214962) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, |
if held under a finance lease, over the lease term, whichever is the shorter. |
Freehold property - 10% to 25% on cost |
Plant and machinery - 10% to 33% on cost and 15% on reducing balance |
Fixtures and fittings - 15% to 20% on cost and 15% to 20% on reducing balance |
Motor vehicles - 15% to 33% on cost and 25% on reducing balance |
Freehold properties are shown, using the revaluation basis, at their market value. |
In the opinion of the directors it is correct that no depreciation is charged on freehold property as the amounts involved are immaterial having regard to useful life and residual value. |
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 Consolidated Statement of Comprehensive Income, 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. |
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. |
SPE Holdings Limited (Registered number: 11214962) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Share based payment arrangements |
From time to time the company grants share options to certain key employees, which are exercisable in cash only under certain conditions and which lapse 10 years from their date of grant. These are recognised in the accounts at their fair value. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
30.9.23 | 30.9.22 |
£ | £ |
United Kingdom | 18,382,025 | 10,161,947 |
Europe | 412,101 | 336,695 |
United States of America | 10,935 | 29,873 |
South America | 1,234,323 | 924,776 |
Asia | 579,664 | 125,433 |
Africa | 440,087 | 71,202 |
Australia | 29,814 | 16,210 |
21,088,949 | 11,666,136 |
4. | EMPLOYEES AND DIRECTORS |
30.9.23 | 30.9.22 |
£ | £ |
Wages and salaries | 4,339,696 | 4,036,506 |
Social security costs | 408,731 | 334,053 |
Other pension costs | 142,318 | 145,248 |
4,890,745 | 4,515,807 |
The average number of employees during the year was as follows: |
30.9.23 | 30.9.22 |
Production | 57 | 60 |
Non production | 58 | 60 |
SPE Holdings Limited (Registered number: 11214962) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
30.9.23 | 30.9.22 |
£ | £ |
Directors' remuneration | 23,812 | 21,536 |
Directors' pension contributions to money purchase schemes | 42,000 | 42,000 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
30.9.23 | 30.9.22 |
£ | £ |
Hire of plant and machinery | 61,656 | 67,779 |
Depreciation - owned assets | 535,070 | 289,002 |
Depreciation - assets on hire purchase contracts | 260,424 | 385,573 |
Loss on disposal of fixed assets | 49,245 | 10,325 |
Auditors' remuneration | 9,000 | 8,000 |
Foreign exchange differences | 18 | (4,866 | ) |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.9.23 | 30.9.22 |
£ | £ |
Bank loan interest | 171,824 | 120,902 |
Factoring charges | 229,881 | 46,959 |
Other interest | (892 | ) | 152 |
Hire purchase | 136,731 | 101,161 |
537,544 | 269,174 |
7. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
30.9.23 | 30.9.22 |
£ | £ |
Current tax: |
UK corporation tax | 171,746 | - |
Prior period adjustment | - | (177,013 | ) |
Total current tax | 171,746 | (177,013 | ) |
Deferred tax | 117,370 | 98,036 |
Tax on profit | 289,116 | (78,977 | ) |
SPE Holdings Limited (Registered number: 11214962) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge/(credit) 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: |
30.9.23 | 30.9.22 |
£ | £ |
Profit before tax | 2,426,771 | 189,312 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
606,693 |
35,969 |
Effects of: |
Expenses not deductible for tax purposes | 2,104 | 1,774 |
Capital allowances in excess of depreciation | (187,094 | ) | (87,333 | ) |
Utilisation of tax losses | (95,144 | ) | - |
Change in tax rate | (36,379 | ) | - |
Deferred tax movement | 117,310 | 98,036 |
Prior year adjustment | - | (177,013 | ) |
Loss on disposal of Fixed Assets | 12,311 | 1,962 |
Unrealised gain on revaluation | (130,685 | ) | (17,892 | ) |
Tax losses in year not utilised | - | 65,520 |
Total tax charge/(credit) | 289,116 | (78,977 | ) |
8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
Interim dividends were paid during the year as follows: |
Ordinary A shares: £48,000 |
Ordinary B shares: £172,000 |
Ordinary E shares: £48,000 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 October 2022 |
and 30 September 2023 | 80,000 |
AMORTISATION |
At 1 October 2022 |
and 30 September 2023 | 80,000 |
NET BOOK VALUE |
At 30 September 2023 | - |
At 30 September 2022 | - |
SPE Holdings Limited (Registered number: 11214962) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 October 2022 | 3,888,280 | 7,923,278 | 370,922 | 142,257 | 12,324,737 |
Additions | 63,714 | 1,167,543 | 180,249 | 28,995 | 1,440,501 |
Disposals | - | (365,151 | ) | - | (34,660 | ) | (399,811 | ) |
Revaluations | 522,738 | - | - | - | 522,738 |
At 30 September 2023 | 4,474,732 | 8,725,670 | 551,171 | 136,592 | 13,888,165 |
DEPRECIATION |
At 1 October 2022 | 17,688 | 3,425,731 | 218,226 | 75,754 | 3,737,399 |
Charge for year | 28,343 | 705,496 | 45,187 | 16,468 | 795,494 |
Eliminated on disposal | - | (172,456 | ) | - | (25,204 | ) | (197,660 | ) |
At 30 September 2023 | 46,031 | 3,958,771 | 263,413 | 67,018 | 4,335,233 |
NET BOOK VALUE |
At 30 September 2023 | 4,428,701 | 4,766,899 | 287,758 | 69,574 | 9,552,932 |
At 30 September 2022 | 3,870,592 | 4,497,547 | 152,696 | 66,503 | 8,587,338 |
Cost or valuation at 30 September 2023 is represented by: |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
Valuation in 2017 | 100,830 | - | - | - | 100,830 |
Valuation in 2018 | 449,678 | - | - | - | 449,678 |
Valuation in 2023 | 522,738 | - | - | - | 522,738 |
Cost | 3,401,486 | 8,725,670 | 551,171 | 136,592 | 12,814,919 |
4,474,732 | 8,725,670 | 551,171 | 136,592 | 13,888,165 |
If freehold property had not been revalued it would have been included at the following historical cost: |
30.9.23 | 30.9.22 |
£ | £ |
Cost | 3,401,486 | 3,337,772 |
Freehold property was valued on an open market basis on 30 September 2023 by the directors . |
SPE Holdings Limited (Registered number: 11214962) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 October 2022 | 55,356 | 4,834,556 | 52,754 | 55,396 | 4,998,062 |
Additions | 57,514 | 1,098,280 | 152,500 | 28,995 | 1,337,289 |
Disposals | - | (314,500 | ) | - | - | (314,500 | ) |
Reclassification/transfer | - | (583,442 | ) | - | - | (583,442 | ) |
At 30 September 2023 | 112,870 | 5,034,894 | 205,254 | 84,391 | 5,437,409 |
DEPRECIATION |
At 1 October 2022 | 12,916 | 1,588,501 | 42,203 | 12,855 | 1,656,475 |
Charge for year | 11,072 | 227,231 | 12,140 | 9,981 | 260,424 |
Eliminated on disposal | - | (127,271 | ) | - | - | (127,271 | ) |
Transfer to ownership | - | (300,880 | ) | - | - | (300,880 | ) |
At 30 September 2023 | 23,988 | 1,387,581 | 54,343 | 22,836 | 1,488,748 |
NET BOOK VALUE |
At 30 September 2023 | 88,882 | 3,647,313 | 150,911 | 61,555 | 3,948,661 |
At 30 September 2022 | 42,440 | 3,246,055 | 10,551 | 42,541 | 3,341,587 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 October 2022 |
Disposals | ( |
) |
At 30 September 2023 |
NET BOOK VALUE |
At 30 September 2023 |
At 30 September 2022 |
SPE Holdings Limited (Registered number: 11214962) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Swiftool House, Brookside Way, Huthwaite, Sutton in Ashfield, Nottinghamshire, NG17 2NL |
Nature of business: |
% |
Class of shares: | holding |
30.9.23 | 30.9.22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Swiftool House, Brookside Way, Huthwaite, Sutton in Ashfield, Nottinghamshire, NG17 2NL |
Nature of business: |
% |
Class of shares: | holding |
30.9.23 | 30.9.22 |
£ | £ |
Aggregate capital and reserves |
13. | STOCKS |
Group |
30.9.23 | 30.9.22 |
£ | £ |
Stocks | 782,046 | 651,123 |
Raw materials | 1,359,418 | 1,060,135 |
Goods in transit | 340,229 | - |
Work-in-progress | 2,514,539 | 1,541,152 |
4,996,232 | 3,252,410 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.9.23 | 30.9.22 | 30.9.23 | 30.9.22 |
£ | £ | £ | £ |
Trade debtors | 9,284,688 | 4,005,287 |
Amounts owed by group undertakings | - | - |
Other debtors | 160,978 | 44,448 |
Directors' current accounts | 298,488 | 157,058 | 298,488 | 157,058 |
Prepayments | 195,426 | 128,460 |
9,939,580 | 4,335,253 |
SPE Holdings Limited (Registered number: 11214962) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.9.23 | 30.9.22 | 30.9.23 | 30.9.22 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 628,294 | 653,327 |
Other loans (see note 17) | - | 6,388 |
Hire purchase contracts (see note 18) | 858,323 | 801,056 |
Trade creditors | 3,929,426 | 2,458,322 |
Amounts owed to group undertakings | - | - |
Tax | 171,746 | (55,450 | ) |
Social security and other taxes | 123,678 | 119,957 |
VAT | 631,082 | 140,414 | - | - |
Other creditors | 152,320 | 128,697 |
Discounting account | 4,614,437 | 1,502,886 | - | - |
Accrued expenses | 1,308,967 | 287,094 |
Deferred government grants | 45,872 | 69,368 |
12,464,145 | 6,112,059 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
30.9.23 | 30.9.22 |
£ | £ |
Bank loans (see note 17) | 1,874,431 | 2,295,800 |
Hire purchase contracts (see note 18) | 2,658,654 | 2,323,210 |
Deferred government grants | 135,227 | 136,088 |
4,668,312 | 4,755,098 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
30.9.23 | 30.9.22 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 313,475 | 337,875 |
Bank loans | 314,819 | 315,452 |
Other loans | - | 6,388 |
628,294 | 659,715 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 260,803 | 315,452 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 1,613,628 | 1,980,348 |
SPE Holdings Limited (Registered number: 11214962) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
30.9.23 | 30.9.22 |
£ | £ |
Net obligations repayable: |
Within one year | 858,323 | 801,056 |
Between one and five years | 2,658,654 | 2,323,210 |
3,516,977 | 3,124,266 |
Group |
Non-cancellable operating | leases |
30.9.23 | 30.9.22 |
£ | £ |
Within one year | 59,031 | 42,343 |
Between one and five years | 65,499 | 57,323 |
124,530 | 99,666 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
30.9.23 | 30.9.22 |
£ | £ |
Bank overdraft | 313,475 | 337,875 |
Bank loans | 2,189,250 | 2,611,252 |
Hire purchase contracts | 3,516,977 | 3,124,266 |
6,019,702 | 6,073,393 |
The bank loans, overdraft and discounting account are secured by way of legal first charges on freehold property and also a fixed and floating charge over other assets of the company. |
The hire purchase loans are secured on the assets to which they relate. |
20. | FINANCIAL INSTRUMENTS |
Financial assets measured at amortised cost amount to £9,284,688 (2022: £4,005,287) and comprise trade debtors. |
Financial liabilities measured at amortised cost amount to £12,355,555 (2022: £7,203,817) and comprise bank & other loans (including overdrafts), trade creditors, accruals & the discounting account balance. |
No other financial assets or liabilities are held. |
SPE Holdings Limited (Registered number: 11214962) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
21. | PROVISIONS FOR LIABILITIES |
Group |
30.9.23 | 30.9.22 |
£ | £ |
Deferred tax | 1,098,336 | 980,966 |
Group |
Deferred |
tax |
£ |
Balance at 1 October 2022 | 980,966 |
Provided during year | 117,370 |
Balance at 30 September 2023 | 1,098,336 |
22. | CALLED UP SHARE CAPITAL |
The following shares, representing the entire share capital of the company, were issued and fully paid-up as part of a share for share exchange: |
100 Ordinary A shares of £1 each |
80 Ordinary B shares of £1 each |
16 Ordinary C shares of £1 each |
2 Ordinary D shares of £1 each |
2 Ordinary E shares of £1 each |
All share classes rank pari passu in all respects other than dividend rights. |
23. | RESERVES |
Group |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1 October 2022 | 3,763,119 | 625,773 | 4,388,892 |
Profit for the year | 2,137,655 | 2,137,655 |
Dividends | (268,000 | ) | (268,000 | ) |
Property revaluation transfer | (522,738 | ) | 522,738 | - |
At 30 September 2023 | 5,110,036 | 1,148,511 | 6,258,547 |
Company |
Retained |
earnings |
£ |
At 1 October 2022 |
Profit for the year |
Dividends | ( |
) |
At 30 September 2023 |
SPE Holdings Limited (Registered number: 11214962) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 September 2023 |
24. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 30 September 2023 and 30 September 2022: |
30.9.23 | 30.9.22 |
£ | £ |
S J Handley and Mrs SJ Handley |
Balance outstanding at start of year | 157,058 | 135,082 |
Amounts advanced | 337,429 | 301,976 |
Amounts repaid | (196,000 | ) | (280,000 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 298,487 | 157,058 |
The above balance has interest charged and was repaid within 9 months of the year-end. |
25. | RELATED PARTY DISCLOSURES |
In the current year, there are no key management personnel other than directors, transactions with whom have been disclosed elsewhere in the accounts. |