REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 31 August 2023 |
for |
Whitehead Alloys Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 31 August 2023 |
for |
Whitehead Alloys Limited |
Whitehead Alloys Limited (Registered number: 01518503) |
Contents of the Financial Statements |
for the Year Ended 31 August 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Statement of Comprehensive Income | 8 |
Balance Sheet | 9 |
Statement of Changes in Equity | 10 |
Cash Flow Statement | 11 |
Notes to the Cash Flow Statement | 12 |
Notes to the Financial Statements | 13 |
Whitehead Alloys Limited |
Company Information |
for the Year Ended 31 August 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Statutory Auditor |
Chartered Accountants |
3 Kingfisher Court |
Bowesfield Park |
Stockton on Tees |
TS18 3EX |
Whitehead Alloys Limited (Registered number: 01518503) |
Strategic Report |
for the Year Ended 31 August 2023 |
The directors present their strategic report for the year ended 31 August 2023. |
REVIEW OF BUSINESS |
The results for the year and financial position of the company are as shown in the annexed financial statements. |
The directors consider that the results for the year and the financial position at the end of the year were satisfactory. The company has made a pre tax profit of £811,244 (2022 - £1,794,618) and had net assets of £5,054,543 (2022 - £5,941,768). |
The company's trading performance decreased during the year in line with a reduction in tonnage output. The decrease in gross profit margin has resulted primarily from higher energy costs in the year. |
PRINCIPAL RISKS AND UNCERTAINTIES |
In common with other businesses in the metal industry sector, the company is dependent on the world metal market and would also be affected by the loss of a major customer or supplier, however the directors believe that they have taken adequate steps to mitigate these risks and continue to be profitable. |
KEY PERFORMANCE INDICATORS |
Given the straightforward nature of the business, the company's directors are of the opinion that analysis using KPI's is not necessary for an understanding of the development, performance or position of the entity, and that all relevant financial information has been disclosed within the financial statements. |
FUTURE DEVELOPMENTS |
The directors are continually exploring new opportunities in respect of new customers, new products and services and new markets. |
ON BEHALF OF THE BOARD: |
Whitehead Alloys Limited (Registered number: 01518503) |
Report of the Directors |
for the Year Ended 31 August 2023 |
The directors present their report with the financial statements of the company for the year ended 31 August 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of reclamation of alloys from scrap and there has been no significant change during the year. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 August 2023 is £1,500,000 (2022 - £1,000,000) in respect of the ordinary A shares. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 September 2022 to the date of this report. |
FINANCIAL INSTRUMENTS |
The company's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the company's policies which provide written principles on the use of financial derivatives to manage these risks. |
Cash flow risk |
The company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates. The company uses foreign exchange forward contracts to hedge these exposures. |
Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows. |
Credit risk |
The company's principal financial assets are bank balances and cash and trade and other receivables. |
The company's credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. |
The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. |
The company has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers. |
Liquidity risk |
In order to maintain liquidity to ensure sufficient funds are available for ongoing operations and future developments, the company uses a mixture of long term and short term debt finance. |
Whitehead Alloys Limited (Registered number: 01518503) |
Report of the Directors |
for the Year Ended 31 August 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Whitehead Alloys Limited |
Opinion |
We have audited the financial statements of Whitehead Alloys Limited (the 'company') for the year ended 31 August 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 August 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Whitehead Alloys Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
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. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. |
Based on our understanding of the industry, we have considered applicable laws and regulations which may be fundamental to the company's ability to operate or to avoid a material penalty, and we considered the extent to which non-compliance might have a material effect on the financial statements. We considered management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate manual journal entries to manipulate financial performance, management bias in significant accounting estimates and any significant one-off or unusual transactions. |
We discussed among the audit engagement team the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements. |
Report of the Independent Auditors to the Members of |
Whitehead Alloys Limited |
Audit procedures performed by the engagement team included: |
- Enquiry of management, those charged with governance around actual and potential litigation and claims. |
- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations. |
- Reviewing minutes of meetings of those charged with governance. |
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. |
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business. |
- Challenging estimates and judgements made by management in their significant accounting estimates. |
- Revenue recognition; agreeing a sample of revenue transactions to gain assurance over the occurrence and accuracy of revenue and also to ensure revenue has been recognised in the correct period. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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 |
Chartered Accountants |
3 Kingfisher Court |
Bowesfield Park |
Stockton on Tees |
TS18 3EX |
Whitehead Alloys Limited (Registered number: 01518503) |
Statement of Comprehensive |
Income |
for the Year Ended 31 August 2023 |
2023 | 2022 |
Notes | £   | £   |
TURNOVER | 2 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
778,559 | 1,782,220 |
Other operating income |
OPERATING PROFIT |
Interest receivable and similar income |
811,244 | 1,794,822 |
Interest payable and similar expenses | 4 |
PROFIT BEFORE TAXATION | 5 |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Whitehead Alloys Limited (Registered number: 01518503) |
Balance Sheet |
31 August 2023 |
2023 | 2022 |
Notes | £   | £   | £   | £   |
FIXED ASSETS |
Tangible assets | 8 |
CURRENT ASSETS |
Stocks | 9 |
Debtors | 10 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 11 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
12 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Whitehead Alloys Limited (Registered number: 01518503) |
Statement of Changes in Equity |
for the Year Ended 31 August 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£   | £   | £   |
Balance at 1 September 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 August 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 August 2023 |
Whitehead Alloys Limited (Registered number: 01518503) |
Cash Flow Statement |
for the Year Ended 31 August 2023 |
2023 | 2022 |
Notes | £   | £   |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Amount introduced by directors | 712,500 | - |
Amount withdrawn by directors | (371,559 | ) | 146,268 |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
835,958 |
Cash and cash equivalents at end of year | 2 | 1,133,322 |
Whitehead Alloys Limited (Registered number: 01518503) |
Notes to the Cash Flow Statement |
for the Year Ended 31 August 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£   | £   |
Profit before taxation |
Depreciation charges |
Loss/(profit) on disposal of fixed assets | ( |
) |
Government grants | ( |
) |
Finance costs | - | 204 |
Finance income | (24,285 | ) | - |
1,381,756 | 1,965,006 |
Decrease/(increase) in stocks | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 August 2023 |
31.8.23 | 1.9.22 |
£   | £   |
Cash and cash equivalents | 2,222,933 | 1,133,322 |
Bank overdrafts | ( |
) |
2,065,026 | 1,133,322 |
Year ended 31 August 2022 |
31.8.22 | 1.9.21 |
£   | £   |
Cash and cash equivalents | 1,133,322 | 839,383 |
Bank overdrafts | ( |
) |
1,133,322 | 835,958 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.9.22 | Cash flow | At 31.8.23 |
£   | £   | £   |
Net cash |
Cash at bank and in hand | 1,133,322 | 1,089,611 | 2,222,933 |
Bank overdrafts | - | (157,907 | ) | (157,907 | ) |
1,133,322 | 2,065,026 |
Total | 1,133,322 | 931,704 | 2,065,026 |
Whitehead Alloys Limited (Registered number: 01518503) |
Notes to the Financial Statements |
for the Year Ended 31 August 2023 |
1. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Whitehead Alloys Limited is a private company, limited by shares, incorporated in the United Kingdom. The address of the registered office is given in the company information on page 1 of these financial statements. The nature of the company's operations and its principal activities are set out in the Strategic report and Report of the Directors on pages 2 to 4 . |
The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and the Republic of Ireland" (FRS102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention. The financial statements are prepared in sterling which is the functional currency of the company and rounded to the nearest £. |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. Turnover from the sale of metal is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Tangible fixed assets |
Short leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Tangible fixed assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, cost of conversion and other costs incurred in bringing stock to its present location and condition. Provision is made for damaged, obsolete and slow-moving stock where appropriate. |
Taxation |
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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. |
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset. |
Whitehead Alloys Limited (Registered number: 01518503) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
1. | ACCOUNTING POLICIES - continued |
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. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Debtors and creditors receivable/payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss in other administrative expenses. |
Derivatives |
Derivative financial instruments are initially measured at fair value at the date on which a derivative contract is entered into and are subsequently measured at fair value through profit or loss. The company uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The company does not hold or issue derivative financial instruments for speculative purposes. Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in the profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. |
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. |
Provisions |
Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated. |
Judgements and key sources of estimation uncertainty |
In the application of the companies' accounting policies, which are described above, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
Whitehead Alloys Limited (Registered number: 01518503) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
2. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£   | £   |
United Kingdom |
Europe |
3. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£   | £   |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 2 | 2 |
Production | 14 | 14 |
Administration | 2 | 2 |
2023 | 2022 |
£   | £   |
Directors' remuneration |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
4. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£   | £   |
Interest on corporation tax |
Whitehead Alloys Limited (Registered number: 01518503) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
5. | PROFIT BEFORE TAXATION |
The profit is stated after charging/(crediting): |
2023 | 2022 |
£   | £   |
Depreciation - owned assets |
Loss/(profit) on disposal of fixed assets | ( |
) |
Auditors remuneration |
Operating leases - land & buildings |
Foreign exchange (gain)/loss | ( |
) |
(Gain)/loss on derivative | ( |
) |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£   | £   |
Current tax: |
UK corporation tax |
Under/(over) provided in |
previous year | (8,331 | ) | (2,775 | ) |
Total current tax |
Deferred taxation |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£   | £   |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Adjustments to tax charge in respect of previous periods | ( |
) | ( |
) |
Movement in over provision | (102 | ) | 4,697 |
Enhanced capital allowances | (31,314 | ) | (5,404 | ) |
Corporation tax rate difference | 12,656 | - |
Deferred tax rate movement | 45,435 | - |
Rounding in amount provided | (7 | ) | - |
Total tax charge | 198,469 | 342,225 |
Whitehead Alloys Limited (Registered number: 01518503) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
7. | DIVIDENDS |
2023 | 2022 |
£   | £   |
Ordinary A shares of £1 each |
Dividends paid |
8. | TANGIBLE FIXED ASSETS |
Fixtures |
Short | Plant and | and | Motor |
leasehold | machinery | fittings | vehicles | Totals |
£   | £   | £   | £   | £   |
COST |
At 1 September 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 August 2023 |
DEPRECIATION |
At 1 September 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 August 2023 |
NET BOOK VALUE |
At 31 August 2023 |
At 31 August 2022 |
9. | STOCKS |
2023 | 2022 |
£   | £   |
Stocks |
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£   | £   |
Trade debtors |
Other debtors |
Social security and other taxes |
Prepayments and accrued income |
Derivative asset | 10,895 | - |
Whitehead Alloys Limited (Registered number: 01518503) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£   | £   |
Bank loans and overdrafts (see note 13) |
Trade creditors |
Social security and other taxes |
Other creditors |
Directors' current accounts | 592,318 | 251,377 |
Accruals and deferred income |
Derivative liability | - | 86,144 |
12. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£   | £   |
Other creditors |
Deferred government grants |
13. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£   | £   |
Amounts falling due within one year or on demand: |
Bank overdrafts |
14. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£   | £   |
Within one year |
Between one and five years |
15. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£   | £   |
Bank overdraft |
The bank facilities are secured by a debenture, incorporating a fixed and floating charge over the assets of the company. |
Whitehead Alloys Limited (Registered number: 01518503) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
16. | FINANCIAL INSTRUMENTS |
The carrying amounts of the company's financial instruments are as follows: |
2023 | 2022 |
£ | £ |
Financial assets/(liabilities) |
Measured at fair value through profit or loss |
- Derivative financial assets/(liabilities) | 10,895 | (86,144 | ) |
The expenses, gains and losses attributable to the company's financial instruments are summarised as follows: |
2023 | 2022 |
£ | £ |
Interest income and expense |
Total interest expenses for financial liabilities measured at amortised cost | 12,935 | 14,550 |
Fair value (gains)/losses |
On derivative financial assets/liabilities | (97,040 | ) | 126,771 |
(84,105 | ) | 141,321 |
Forward foreign currency contracts are valued using quoted forward exchange rates matching maturities of the contracts. The contracts are all short term and mature within 6 months following the year end. |
17. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£   | £   |
Deferred tax |
Accelerated capital allowances | 272,000 | 144,000 |
Deferred |
tax |
£   |
Balance at 1 September 2022 |
Provided during year |
Balance at 31 August 2023 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £   | £   |
Ordinary A | £1 | 5,000 | 5,000 |
Ordinary S | £100 | 100 | 100 |
5,100 | 5,100 |
Whitehead Alloys Limited (Registered number: 01518503) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
18. | CALLED UP SHARE CAPITAL - continued |
The 'S' Ordinary Share carries rights to participate in income, profits and distributions either as a single class of share, or together with all existing shares in the company (as if the same constituted a single class of shares), as the board may recommend from time to time. It is a non-voting share and is non-redeemable. |
The 'S' Ordinary Shareholder is not entitled to a return of assets (whether in liquidation, capital reduction or otherwise) beyond its nominal value. |
19. | RESERVES |
Retained |
earnings |
£   |
At 1 September 2022 |
Profit for the year |
Dividends | ( |
) |
At 31 August 2023 |
Retained earnings represents cumulative profits and losses net of dividends and other adjustments. |
20. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme. The charge for the year was £10,216 (2022 - £9,062). Contributions outstanding at the year end amounted to £643 (2022 - £506). |
21. | CAPITAL COMMITMENTS |
2023 | 2022 |
£   | £   |
Contracted but not provided for in the |
financial statements |
22. | RELATED PARTY DISCLOSURES |
The total remuneration for key management personnel for the year totalled £23,300 (2022 - £21,958), being remuneration disclosed in note 3. |