REGISTERED NUMBER: NI617670 (Northern Ireland) |
Group Strategic Report, Report of the Director and |
Consolidated Financial Statements for the Year Ended 30 June 2023 |
for |
Steel Holdco Limited |
REGISTERED NUMBER: NI617670 (Northern Ireland) |
Group Strategic Report, Report of the Director and |
Consolidated Financial Statements for the Year Ended 30 June 2023 |
for |
Steel Holdco Limited |
Steel Holdco Limited (Registered number: NI617670) |
Contents of the Consolidated Financial Statements |
for the Year Ended 30 June 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 4 |
Consolidated Income Statement | 7 |
Consolidated Other 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 | 15 |
Steel Holdco Limited |
Company Information |
for the Year Ended 30 June 2023 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditors |
Thistlebank House |
2 Old Henry Street |
Enniskillen |
Co. Fermanagh |
BT74 7JX |
SOLICITORS: |
Boston Chambers |
Queen Elizabeth Road |
Enniskillen |
Co. Fermanagh |
BT74 7JA |
Steel Holdco Limited (Registered number: NI617670) |
Group Strategic Report |
for the Year Ended 30 June 2023 |
The director presents his strategic report of the company and the group for the year ended 30 June 2023. |
REVIEW OF BUSINESS |
Turnover for the year increased by 37% compared with the previous year. Gross margin has increased to 24% from 19% in the previous year. Overall, the group made a profit before tax of £4.1m compared to £2.2m in the previous year. |
The directors consider the results for the year to be satisfactory. The group operates in a competitive market place. It is anticipated that current levels of performance will be maintained or improved upon. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Principal risks |
The market for the group's products and services remains competitive. New markets and customers are continually being developed which serves to spread risk. On occasions when a large contract is being awarded substantive client due diligence is undertaken to ensure risk is minimised. |
The risks to the group are mainly credit risk, interest rate risk and foreign exchange risk. |
Credit risk |
The group's credit risk is primarily attributable to its trade debtors. Credit risk is managed by running credit checks on new customers and by monitoring customer payment patterns. |
Liquidity risk |
The group takes a proactive approach to managing financial risk by ensuring sufficient liquidity is available to meet foreseeable needs. Continuity of funding is ensured by matching the source of funding to the purpose of those funds. The group maintains a high level of cash reserves and further reserves are available should they be required. |
Interest rate risk |
The group finances its operations through a mixture of retained earnings and hire purchase agreements. The group's exposure is minimised as all finance is tied into fixed interest contracts. As the group is not dependent on external finance, any interest rate risk can be managed through the ongoing review of potential borrowing requirements. |
Foreign exchange risk |
Having an operational subsidiary based in the Republic of Ireland, constant monitoring of exchange rate is undertaken and foreign exchange risk is minimised by matching working capital, labour and other purchases within the same economic zone to provide, insofar as possible, a natural hedge. |
GOING CONCERN |
The business activities, together with factors likely to affect future development, performance and position are continuously monitored by the group's management. These include cash flow, liquidity position and borrowing facilities. Consequently, the business is deemed to be well placed to manage its business risks despite the current level of economic uncertainty. The group has adequate resources to continue its normal business for the foreseeable future and thus continues to adopt the going concern basis in preparing the annual report and financial statements. |
ON BEHALF OF THE BOARD: |
Steel Holdco Limited (Registered number: NI617670) |
Report of the Director |
for the Year Ended 30 June 2023 |
The director presents his report with the financial statements of the company and the group for the year ended 30 June 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of steel fabrication and erection. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 June 2023. |
DIRECTOR |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Dundas Gallagher, 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 |
Steel Holdco Limited |
Opinion |
We have audited the financial statements of Steel Holdco Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise the Consolidated Income Statement, Consolidated Other 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 June 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 director's 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Director 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 Director have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the 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 Director. |
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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Report of the Independent Auditors to the Members of |
Steel Holdco Limited |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the officers and other management (as required by auditing standards). |
We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting and taxation legislation. |
We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items. |
With the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to enquiry of the officers. |
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. |
We addressed the risk of fraud through management override of controls, by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Steel Holdco Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
Thistlebank House |
2 Old Henry Street |
Enniskillen |
Co. Fermanagh |
BT74 7JX |
Steel Holdco Limited (Registered number: NI617670) |
Consolidated Income Statement |
for the Year Ended 30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ |
TURNOVER | 3 | 24,874,618 | 18,107,016 |
Cost of sales | 18,834,307 | 14,627,036 |
GROSS PROFIT | 6,040,311 | 3,479,980 |
Administrative expenses | 1,943,617 | 1,268,243 |
4,096,694 | 2,211,737 |
Other operating income | 6,136 | 17,040 |
OPERATING PROFIT | 6 | 4,102,830 | 2,228,777 |
Interest receivable and similar income | 39,334 | 250 |
4,142,164 | 2,229,027 |
Interest payable and similar expenses | 8 | 8,180 | 8,028 |
PROFIT BEFORE TAXATION | 4,133,984 | 2,220,999 |
Tax on profit | 9 | 646,903 | 290,604 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 3,487,081 | 1,930,395 |
Steel Holdco Limited (Registered number: NI617670) |
Consolidated Other Comprehensive Income |
for the Year Ended 30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 3,487,081 | 1,930,395 |
OTHER COMPREHENSIVE INCOME |
Unrealised exchange gains | (1,103 | ) | 5,187 |
Income tax relating to other comprehensive income |
210 |
(986 |
) |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(893 |
) |
4,201 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
3,486,188 |
1,934,596 |
Total comprehensive income attributable to: |
Owners of the parent | 3,486,188 | 1,934,596 |
Steel Holdco Limited (Registered number: NI617670) |
Consolidated Balance Sheet |
30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 12 | 1,428,379 | 1,556,325 |
Investments | 13 |
Interest in associate | 2,074 | 2,074 |
1,430,453 | 1,558,399 |
CURRENT ASSETS |
Stocks | 14 | 3,052,924 | 2,059,020 |
Debtors | 15 | 6,929,401 | 5,084,442 |
Prepayments and accrued income | 399,151 | 1,373,452 |
Cash at bank | 10,657,221 | 7,797,458 |
21,038,697 | 16,314,372 |
CREDITORS |
Amounts falling due within one year | 16 | 4,596,684 | 3,275,962 |
NET CURRENT ASSETS | 16,442,013 | 13,038,410 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
17,872,466 |
14,596,809 |
CREDITORS |
Amounts falling due after more than one year | 17 | (48,544 | ) | (261,046 | ) |
PROVISIONS FOR LIABILITIES | 20 | (204,351 | ) | (202,380 | ) |
NET ASSETS | 17,619,571 | 14,133,383 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 1,000 | 1,000 |
Retained earnings | 22 | 17,618,571 | 14,132,383 |
SHAREHOLDERS' FUNDS | 17,619,571 | 14,133,383 |
The financial statements were approved by the director and authorised for issue on 27 March 2024 and were signed by: |
J Rooney - Director |
Steel Holdco Limited (Registered number: NI617670) |
Company Balance Sheet |
30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Debtors | 15 |
Prepayments and accrued income |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 20 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 615,940 | 4,025,180 |
The financial statements were approved by the director and authorised for issue on |
Steel Holdco Limited (Registered number: NI617670) |
Consolidated Statement of Changes in Equity |
for the Year Ended 30 June 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2021 | 1,000 | 12,227,887 | 12,228,887 |
Changes in equity |
Dividends | - | (30,100 | ) | (30,100 | ) |
Total comprehensive income | - | 1,934,596 | 1,934,596 |
Balance at 30 June 2022 | 1,000 | 14,132,383 | 14,133,383 |
Changes in equity |
Total comprehensive income | - | 3,486,188 | 3,486,188 |
Balance at 30 June 2023 | 1,000 | 17,618,571 | 17,619,571 |
Steel Holdco Limited (Registered number: NI617670) |
Company Statement of Changes in Equity |
for the Year Ended 30 June 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 June 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 June 2023 |
Steel Holdco Limited (Registered number: NI617670) |
Consolidated Cash Flow Statement |
for the Year Ended 30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 3,598,891 | (392,899 | ) |
Interest element of hire purchase payments paid | (8,180 | ) | (8,028 | ) |
Tax paid | (400,696 | ) | (597,745 | ) |
Net cash from operating activities | 3,190,015 | (998,672 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (95,715 | ) | (180,443 | ) |
Sale of tangible fixed assets | 12,380 | 2,750 |
Interest received | 39,334 | 250 |
Net cash from investing activities | (44,001 | ) | (177,443 | ) |
Cash flows from financing activities |
Loan repayments in year | (213,542 | ) | - |
Capital repayments in year | (77,743 | ) | (78,522 | ) |
Amount introduced by directors | - | 941 |
Equity dividends paid | - | (30,100 | ) |
Net cash from financing activities | (291,285 | ) | (107,681 | ) |
Increase/(decrease) in cash and cash equivalents | 2,854,729 | (1,283,796 | ) |
Cash and cash equivalents at beginning of year | 2 | 7,797,458 | 8,785,316 |
Effect of foreign exchange rate changes | 5,034 | 295,938 |
Cash and cash equivalents at end of year | 2 | 10,657,221 | 7,797,458 |
Steel Holdco Limited (Registered number: NI617670) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 June 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30.6.23 | 30.6.22 |
£ | £ |
Profit before taxation | 4,133,984 | 2,220,999 |
Depreciation charges | 211,531 | 233,009 |
(Profit)/loss on disposal of fixed assets | (251 | ) | 5,977 |
Government grants | (6,136 | ) | (17,040 | ) |
Finance costs | 8,180 | 8,028 |
Finance income | (39,334 | ) | (250 | ) |
4,307,974 | 2,450,723 |
Increase in stocks | (993,904 | ) | (495,229 | ) |
Increase in trade and other debtors | (870,658 | ) | (2,267,164 | ) |
Increase/(decrease) in trade and other creditors | 1,155,479 | (81,229 | ) |
Cash generated from operations | 3,598,891 | (392,899 | ) |
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 June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 10,657,221 | 7,797,458 |
Year ended 30 June 2022 |
30.6.22 | 1.7.21 |
£ | £ |
Cash and cash equivalents | 7,797,458 | 8,785,316 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.7.22 | Cash flow | At 30.6.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 7,797,458 | 2,859,763 | 10,657,221 |
7,797,458 | 2,859,763 | 10,657,221 |
Debt |
Finance leases | (193,098 | ) | 77,743 | (115,355 | ) |
Debts falling due within 1 year | (62,496 | ) | 62,496 | - |
Debts falling due after 1 year | (151,046 | ) | 151,046 | - |
(406,640 | ) | 291,285 | (115,355 | ) |
Total | 7,390,818 | 3,151,048 | 10,541,866 |
Steel Holdco Limited (Registered number: NI617670) |
Notes to the Consolidated Financial Statements |
for the Year Ended 30 June 2023 |
1. | STATUTORY INFORMATION |
Steel Holdco Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. |
Basis of consolidation |
The consolidated financial statements incorporate the financial statements of the company and all group undertakings. These are adjusted, where appropriate, to conform to group accounting policies. Acquisitions are accounted for under the merger method and as such the assets of each company are stated at their original cost. The results of companies acquired or disposed of are included in the profit and loss account as if they had been a part of the group throughout the period reflected in the accounts. As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006. |
Significant judgements and estimates |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The following judgements (apart from those involving estimates) have been made in the process of applying the accounting policies that have had the most significant effect on amounts recognised in the financial statements: |
Amounts recoverable on contract |
When the outcome of a construction contract can be estimated reliably and it is probable that the contract will be profitable, contract revenue and costs are recognised over the period of the contract by reference to the stage of completion using the 'percentage-of-completion method' to determine the appropriate amount to recognise in a given period. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised immediately. |
Turnover |
Turnover comprises revenue recognised by the group in respect of goods and services supplied during the year, exclusive of value added tax and trade discounts. In respect of construction contracts and contracts for ongoing services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of construction contracts and contracts for ongoing services is recognised by reference to the stage of completion. |
Tangible fixed assets |
Tangible fixed assets are stated at cost or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
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 shorter. |
Long leasehold | - 5% on cost and 2% on cost |
Plant and machinery | - 15% on reducing balance |
Motor vehicles | - 15% on reducing balance |
Computer equipment | - 15% on reducing balance |
Government grants |
Capital grants received and receivable are treated as deferred income and amortised to the profit and loss account over the useful economic life of the asset to which it relates. Revenue grants are credited to the profit and loss account when received. |
Investments in associates |
Investments in associate undertakings are recognised at cost. |
Steel Holdco Limited (Registered number: NI617670) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are stated at the lower of cost, using the weighted average method, and net realisable value. |
At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified item is reduced to its selling price less costs to complete and sell, and an impairment charge is recognised in the profit and loss account. The selling price is deemed to be scrap value. Where a reversal of the impairment is recognised, the impairment charge is reversed up to the original impairment loss, and is recognised as a credit in the profit and loss account. |
Financial instruments |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of it's financial liabilities. |
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. |
Where contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
These financial statements have been produced in sterling as this is the primary operating currency for the group. |
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. |
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. |
Steel Holdco Limited (Registered number: NI617670) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
2. | ACCOUNTING POLICIES - continued |
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. |
Impairment |
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease. |
Going concern |
The financial statements have been prepared on a going concern basis. This is deemed appropriate given the group's profitability, strong net asset position, low level of gearing with minimal levels of external finance and the fact that the group has significant cash reserves available. Management accounts to 31 December 2023 and projections to 31 March 2025 indicate continued sales growth while maintaining current margins and low overhead base. |
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: |
30.6.23 | 30.6.22 |
£ | £ |
United Kingdom | 2,707,124 | 616,470 |
Europe | 22,167,494 | 17,490,546 |
24,874,618 | 18,107,016 |
4. | EMPLOYEES AND DIRECTORS |
30.6.23 | 30.6.22 |
£ | £ |
Wages and salaries | 2,419,379 | 2,365,238 |
Social security costs | 158,302 | 143,231 |
Other pension costs | 34,236 | 32,213 |
2,611,917 | 2,540,682 |
The average number of employees during the year was as follows: |
30.6.23 | 30.6.22 |
Administration | 24 | 21 |
Production | 52 | 57 |
The average number of employees by undertakings that were proportionately consolidated during the year was 73 (2022 - 76 ) . |
5. | DIRECTORS' EMOLUMENTS |
30.6.23 | 30.6.22 |
£ | £ |
Director's remuneration | 47,401 | 43,340 |
Steel Holdco Limited (Registered number: NI617670) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
30.6.23 | 30.6.22 |
£ | £ |
Hire of plant and machinery | 424,427 | 332,189 |
Depreciation - owned assets | 193,981 | 215,459 |
Depreciation - assets on hire purchase contracts | 17,551 | 17,551 |
(Profit)/loss on disposal of fixed assets | (251 | ) | 5,977 |
Foreign exchange differences | 153,901 | (451,119 | ) |
7. | AUDITORS' REMUNERATION |
30.6.23 | 30.6.22 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
15,796 |
11,465 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.6.23 | 30.6.22 |
£ | £ |
Hire purchase | 8,180 | 8,028 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
30.6.23 | 30.6.22 |
£ | £ |
Current tax: |
UK corporation tax | 643,577 | 169,511 |
Foreign corporation tax | 1,145 | 175,079 |
Total current tax | 644,722 | 344,590 |
Deferred tax | 2,181 | (53,986 | ) |
Tax on profit | 646,903 | 290,604 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
30.6.23 | 30.6.22 |
£ | £ |
Profit before tax | 4,133,984 | 2,220,999 |
Profit multiplied by the standard rate of corporation tax in the UK of 20.501 % (2022 - 19 %) |
847,508 |
421,990 |
Effects of: |
Capital allowances in excess of depreciation | (16,291 | ) | - |
Depreciation in excess of capital allowances | - | 2,563 |
Utilisation of tax losses | (1,785 | ) | - |
Deferred tax movement | 2,181 | (53,986 | ) |
Overseas tax impact | (184,710 | ) | (89,537 | ) |
Tax losses carried forward | - | 9,574 |
Total tax charge | 646,903 | 290,604 |
Steel Holdco Limited (Registered number: NI617670) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
9. | TAXATION - continued |
Tax effects relating to effects of other comprehensive income |
30.6.23 |
Gross | Tax | Net |
£ | £ | £ |
Unrealised exchange gains | (1,103 | ) | 210 | (893 | ) |
30.6.22 |
Gross | Tax | Net |
£ | £ | £ |
Unrealised exchange gains | 5,187 | (986 | ) | 4,201 |
10. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
11. | DIVIDENDS |
30.6.23 | 30.6.22 |
£ | £ |
Ordinary shares shares of £1 each |
Final | - | 30,100 |
12. | TANGIBLE FIXED ASSETS |
Group |
Long | Plant and | Motor | Computer |
leasehold | machinery | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 July 2022 | 311,519 | 3,249,930 | 231,335 | 100,386 | 3,893,170 |
Additions | - | 24,515 | 71,200 | - | 95,715 |
Disposals | - | - | (19,750 | ) | - | (19,750 | ) |
At 30 June 2023 | 311,519 | 3,274,445 | 282,785 | 100,386 | 3,969,135 |
DEPRECIATION |
At 1 July 2022 | 37,868 | 2,148,475 | 94,474 | 56,028 | 2,336,845 |
Charge for year | 6,231 | 168,896 | 29,751 | 6,654 | 211,532 |
Eliminated on disposal | - | - | (7,621 | ) | - | (7,621 | ) |
At 30 June 2023 | 44,099 | 2,317,371 | 116,604 | 62,682 | 2,540,756 |
NET BOOK VALUE |
At 30 June 2023 | 267,420 | 957,074 | 166,181 | 37,704 | 1,428,379 |
At 30 June 2022 | 273,651 | 1,101,455 | 136,861 | 44,358 | 1,556,325 |
Steel Holdco Limited (Registered number: NI617670) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
12. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST |
At 1 July 2022 |
and 30 June 2023 | 316,684 |
DEPRECIATION |
At 1 July 2022 | 234,781 |
Charge for year | 17,551 |
At 30 June 2023 | 252,332 |
NET BOOK VALUE |
At 30 June 2023 | 64,352 |
At 30 June 2022 | 81,903 |
Company |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 July 2022 |
and 30 June 2023 |
DEPRECIATION |
At 1 July 2022 |
Charge for year |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
13. | FIXED ASSET INVESTMENTS |
Group |
Interest |
in |
associate |
£ |
COST |
At 1 July 2022 |
and 30 June 2023 | 2,074 |
NET BOOK VALUE |
At 30 June 2023 | 2,074 |
At 30 June 2022 | 2,074 |
Steel Holdco Limited (Registered number: NI617670) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
13. | FIXED ASSET INVESTMENTS - continued |
Company |
Shares in | Interest |
group | in |
undertakings | associate | Totals |
£ | £ | £ |
COST |
At 1 July 2022 |
and 30 June 2023 | 606,222 |
NET BOOK VALUE |
At 30 June 2023 | 606,222 |
At 30 June 2022 | 606,222 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 125 Tullyneevin Road, Slushill, Lisnaskea, Co. Fermanagh, BT92 0FZ |
Nature of business: |
% |
Class of shares: | holding |
30.6.23 | 30.6.22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Derrylin Enterprise Park, Main Street, Derrylin, Enniskillen, Co. Fermanagh, BT92 9LA |
Nature of business: |
% |
Class of shares: | holding |
30.6.23 | 30.6.22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Thistlebank House, 2 Old Henry Street, Enniskillen, Co. Fermanagh, BT74 7JX |
Nature of business: |
% |
Class of shares: | holding |
30.6.23 | 30.6.22 |
£ | £ |
Aggregate capital and reserves |
Steel Holdco Limited (Registered number: NI617670) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
13. | FIXED ASSET INVESTMENTS - continued |
Registered office: Fermanagh Street, Clones, Co. Monaghan, Ireland |
Nature of business: |
% |
Class of shares: | holding |
30.6.23 | 30.6.22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Associated companies |
Registered office: 47 Church Street, Cavan, Co. Cavan, Ireland |
Nature of business: |
% |
Class of shares: | holding |
Steel Holdco Limited purchased 42% of the share capital of Charton Homes Limited on 19 August 2014. This represents 4,200 of the 10,000 issued ordinary shares at €1 per share. |
Registered office: 77 Redrock Road, Collone, Co. Armagh, BT60 2BL |
Nature of business: |
% |
Class of shares: | holding |
Steel Holdco Limited purchased 50% of the share capital of SRS Mobile Ltd on 5 October 2016. This represents 50 of the 100 issued ordinary shares at £1 per share. |
14. | STOCKS |
Group |
30.6.23 | 30.6.22 |
£ | £ |
Stocks | 3,052,924 | 2,059,020 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.6.23 | 30.6.22 | 30.6.23 | 30.6.22 |
£ | £ | £ | £ |
Trade debtors | 2,523,643 | 959,697 |
Other debtors | 3,651,339 | 3,696,311 |
VAT | 754,419 | 428,434 |
6,929,401 | 5,084,442 |
Steel Holdco Limited (Registered number: NI617670) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.6.23 | 30.6.22 | 30.6.23 | 30.6.22 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | - | 62,496 |
Hire purchase contracts (see note 19) | 66,811 | 83,098 |
Trade creditors | 3,661,056 | 2,120,610 |
Amounts owed to group undertakings | - | - |
Tax | 427,344 | 183,318 |
Social security and other taxes | 108,575 | 115,525 |
Other creditors | 58,581 | 67,935 |
Amounts invoiced in excess of amounts recoverable on contract |
- |
364,516 |
- |
- |
Directors' current accounts | 8,320 | 8,320 | 18 | 18 |
Accruals and deferred income | 265,997 | 270,144 |
4,596,684 | 3,275,962 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
30.6.23 | 30.6.22 |
£ | £ |
Bank loans (see note 18) | - | 151,046 |
Hire purchase contracts (see note 19) | 48,544 | 110,000 |
48,544 | 261,046 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
30.6.23 | 30.6.22 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | - | 62,496 |
Amounts falling due between one and two years: |
Bank loans - 1-2 years | - | 62,496 |
Amounts falling due between two and five years: |
Bank loans - 2-5 years | - | 88,550 |
Steel Holdco Limited (Registered number: NI617670) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
30.6.23 | 30.6.22 |
£ | £ |
Gross obligations repayable: |
Within one year | 71,186 | 90,978 |
Between one and five years | 54,375 | 120,206 |
125,561 | 211,184 |
Finance charges repayable: |
Within one year | 4,375 | 7,880 |
Between one and five years | 5,831 | 10,206 |
10,206 | 18,086 |
Net obligations repayable: |
Within one year | 66,811 | 83,098 |
Between one and five years | 48,544 | 110,000 |
115,355 | 193,098 |
20. | PROVISIONS FOR LIABILITIES |
Group | Company |
30.6.23 | 30.6.22 | 30.6.23 | 30.6.22 |
£ | £ | £ | £ |
Deferred tax | 204,351 | 202,380 | 15,134 | 7,923 |
Group |
Deferred |
tax |
£ |
Balance at 1 July 2022 | 202,380 |
Utilised during year | 1,971 |
Balance at 30 June 2023 | 204,351 |
Company |
Deferred |
tax |
£ |
Balance at 1 July 2022 |
Provided during year |
Balance at 30 June 2023 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.6.23 | 30.6.22 |
value: | £ | £ |
Ordinary shares | £1 | 1,000 | 1,000 |
Steel Holdco Limited (Registered number: NI617670) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
22. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 July 2022 | 14,132,383 |
Profit for the year | 3,487,081 |
Unrealised exchange gains | (893 | ) |
At 30 June 2023 | 17,618,571 |
Company |
Retained |
earnings |
£ |
At 1 July 2022 |
Profit for the year |
Unrealised exchange gains | (893 | ) |
At 30 June 2023 |
23. | DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 30 June 2023 and 30 June 2022: |
30.6.23 | 30.6.22 |
£ | £ |
J Rooney |
Balance outstanding at start of year | (8,320 | ) | (7,379 | ) |
Amounts advanced | - | 29,159 |
Amounts repaid | - | (30,100 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | (8,320 | ) | (8,320 | ) |
24. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Common ownership |
30.6.23 | 30.6.22 |
£ | £ |
Sales | 36,484 | 83,137 |
Purchases | - | 444 |
Transfers | - | 637,000 |
Amount due from related party | 1,644,090 | 1,661,463 |
Amount due to related party | 286 | 11,059 |
Steel Holdco Limited (Registered number: NI617670) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
24. | RELATED PARTY DISCLOSURES - continued |
Other related parties |
30.6.23 | 30.6.22 |
£ | £ |
Sales | 21,057 | - |
Transfers | - | (55,270 | ) |
Rent | 180,000 | 130,000 |
Amount due from related party | 1,815,848 | 1,794,791 |
25. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is J Rooney. |