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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: Mr S J Handley
Mrs SJ Handley





REGISTERED OFFICE: Swiftool House
Brookside Way
Huthwaite
Sutton in Ashfield
Nottinghamshire
NG17 2NL





REGISTERED NUMBER: 11214962 (England and Wales)





AUDITORS: Charnwood Accountants & Business Advisors LLP
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:





Mr S J Handley - Director


16 February 2024

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.

Mr S J Handley
Mrs SJ Handley

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:





Mr S J Handley - Director


16 February 2024

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.




Anna Brocklehurst (Senior Statutory Auditor)
for and on behalf of Charnwood Accountants & Business Advisors LLP
Statutory Auditor
The Point
Granite Way
Mountsorrel
Loughborough
Leicestershire
LE12 7TZ

16 February 2024

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 2,137,655 268,289

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 12 200 300
200 300

CURRENT ASSETS
Debtors 14 748,386 261,494
Cash at bank 14,611 14,692
762,997 276,186
CREDITORS
Amounts falling due within one year 15 103,405 102,451
NET CURRENT ASSETS 659,592 173,735
TOTAL ASSETS LESS CURRENT
LIABILITIES

659,792

174,035

CAPITAL AND RESERVES
Called up share capital 22 200 200
Retained earnings 23 659,592 173,835
659,792 174,035

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 16 February 2024 and were signed on its behalf by:





Mr S J Handley - Director


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 200 422,222 422,422

Changes in equity
Dividends - (452,000 ) (452,000 )
Total comprehensive income - 203,613 203,613
Balance at 30 September 2022 200 173,835 174,035

Changes in equity
Dividends - (268,000 ) (268,000 )
Total comprehensive income - 753,757 753,757
Balance at 30 September 2023 200 659,592 659,792

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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

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 under the historical cost convention as modified by the revaluation of certain assets.

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
Goodwill, being the amount paid in connection with the acquisition of a business in 2001, is being amortised evenly over its estimated useful life of twenty years.

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
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 - 20% on cost, 10% on cost and not provided
Plant and machinery - 20% on cost, 15% on reducing balance and 10% on cost
Fixtures and fittings - 15% on cost and 15% on reducing balance
Motor vehicles - 25% on cost and 25% on reducing balance

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
115 120

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 300
Disposals (100 )
At 30 September 2023 200
NET BOOK VALUE
At 30 September 2023 200
At 30 September 2022 300

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

Swiftool Precision Engineering Ltd
Registered office: Swiftool House, Brookside Way, Huthwaite, Sutton in Ashfield, Nottinghamshire, NG17 2NL
Nature of business: Precision engineering
%
Class of shares: holding
Ordinary A,B,C,D & E 100.00
30.9.23 30.9.22
£    £   
Aggregate capital and reserves 5,599,155 4,215,257
Profit for the year 2,133,898 264,676

iSPE Ltd
Registered office: Swiftool House, Brookside Way, Huthwaite, Sutton in Ashfield, Nottinghamshire, NG17 2NL
Nature of business: Software development and consultancy
%
Class of shares: holding
Ordinary 100.00
30.9.23 30.9.22
£    £   
Aggregate capital and reserves - 100


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 - - 449,898 104,436
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 4,335,253 748,386 261,494

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 - - - 100
Tax 171,746 (55,450 ) 881 -
Social security and other taxes 123,678 119,957 - -
VAT 631,082 140,414 - -
Other creditors 152,320 128,697 102,524 102,351
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 6,112,059 103,405 102,451

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 173,835
Profit for the year 753,757
Dividends (268,000 )
At 30 September 2023 659,592


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.