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Registration number: 06623204

Stanmar Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

Stanmar Limited

Contents

Balance Sheet

1

Notes to the Financial Statements

2 to 11

 

Stanmar Limited

(Registration number: 06623204)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

6

288,283

321,966

Current assets

 

Stocks

7

883,937

573,861

Debtors

8

595,822

409,693

Cash at bank and in hand

 

6,725

14,007

 

1,486,484

997,561

Creditors: Amounts falling due within one year

9

(1,103,887)

(794,751)

Net current assets

 

382,597

202,810

Total assets less current liabilities

 

670,880

524,776

Creditors: Amounts falling due after more than one year

9

(5,305)

(66,643)

Net assets

 

665,575

458,133

Capital and reserves

 

Called up share capital

1

1

Retained earnings

665,574

458,132

Shareholders' funds

 

665,575

458,133

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 25 June 2024 and signed on its behalf by:
 

Mr P Williment
Director

   
     
 

Stanmar Limited

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

1

General information

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

The address of its registered office is:
Eagle Works London Road
Thrupp
Stroud
Gloucestershire
GL5 2BA

The principal place of business is:
Bamfurlong Industrial Estate
Staverton
Cheltenham
Gloucestershire
GL51 6SX

These financial statements were authorised for issue by the Board on 25 June 2024.

2

Accounting policies

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

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

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

Summary of significant accounting policies and key accounting estimates

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

Summary of disclosure exemptions

Stanmar Limited meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of disclosure exemptions available to it in respect of its financial statements.

Exemption has been taken in relation to financial instruments and related party transactions.

Name of parent of group

These financial statements are consolidated in the financial statements of Magnaghi (UK) Ltd.

The financial statements of Magnaghi (UK) Ltd may be obtained from Eagle Works, London Road, Thrupp, Stroud, Gloucestershire, GL5 2BA.

 

Stanmar Limited

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

Disclosure of long or short period

The financial statements presented cover the year end 31 December 2023, in line with the reporting date with that of its group. The comparative amounts cover the period from 1 April 2022 to 31 December 2022 and are therefore not comparable.

Going concern

The directors have prepared forecast information, including the company and its fellow subsidiary, Nu-Pro Limited, as these companies are managed on a unified basis, for a period of not less than 12 months from the date of approval of these financial statements. The forecasts include planned capital expenditure that the directors believe is required to enable the company to continue to trade profitably. Whilst the forecasts show an improving cash position overall, this is with significant additional funding being provided by the wider group. The group have confirmed their willingness to continue to support the company for the foreseeable future and, on this basis, the directors believe that it is appropriate for these financial statements to be prepared on a going concern basis.

Audit report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 26 June 2024 was Sarah Jenkins, who signed for and on behalf of Milsted Langdon LLP.

Key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 where the revision affects only that period or in the period of the revision and future periods where the revision affects both current and future periods.

In preparing the financial statements, management make estimates concerning the identification of obsolete stock for inclusion in the stock provision. Management have determined that all stock over two years old should be fully provided based upon its utilisation aligning it with the group policy. At 31 December 2023, a stock provision of £329,499 (2022- £397,913) was recognised. It is not practical to estimate the effects of the change in relation to future periods.

No other key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies..

Revenue recognition

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

The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits can be reliably measured, and it is probable that future economic benefits will flow to the entity. Revenue from the sale of goods is recognised when the risks and rewards of ownership are transferred to the customer. Revenue from services is recognised in the accounting periods in which the services are rendered.

 

Stanmar Limited

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

Finance income and costs policy

Interest income and expenses are recognised using the effective interest rate method.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

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

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is setup against deferred tax assets so that the net carrying amount equals the highest amount that is more likely thannot to be recovered based on current or future taxable profit.

Tangible assets

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

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

Depreciation

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

Asset class

Depreciation method and rate

Plant and machinery

10 - 33% straight line

Intangible assets

Goodwill arising on a business acquisition represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the business recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

Straight line over 10 years

 

Stanmar Limited

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

Stocks

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

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

Debtors

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

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

Cash and cash equivalents

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

Creditors

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

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

Borrowings

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

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

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

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probabale that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligations,

 

Stanmar Limited

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

Leases

Lease in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit and loss on a straight-line basis over the period of the lease.

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

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

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

Share capital

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

Defined contribution pension obligation

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

Contributions to defined contribution plans are contribution payments exceed the contribution due for service, the excess is recognised as a prepayment. If contribution payments exceed the contribution sue for service, the excess is recognised as a prepayment.

 

Stanmar Limited

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

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes afinancing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.




 

Stanmar Limited

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

3

Staff numbers

The average number of persons employed by the company (including directors) during the year was 21 (2022 - 20).

4

Exceptional items

Exceptional expenditure of £79,864 in the period ended 31 December 2022 represents the loss of stock held at a third party sub-contractor due to a fire at their premises. Exceptional income of £163,376 represents the insurance claim for the loss of stock and the interruption to the operations of the company.

5

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 January 2023

195,458

195,458

At 31 December 2023

195,458

195,458

Amortisation

At 1 January 2023

195,458

195,458

At 31 December 2023

195,458

195,458

Carrying amount

At 31 December 2023

-

-

At 31 December 2022

-

-

 

Stanmar Limited

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

6

Tangible assets

Plant and machinery
£

Total
£

Cost or valuation

At 1 January 2023

676,229

676,229

Additions

41,773

41,773

Disposals

(27,473)

(27,473)

At 31 December 2023

690,529

690,529

Depreciation

At 1 January 2023

354,263

354,263

Charge for the year

75,456

75,456

Eliminated on disposal

(27,473)

(27,473)

At 31 December 2023

402,246

402,246

Carrying amount

At 31 December 2023

288,283

288,283

At 31 December 2022

321,966

321,966

7

Stocks

2023
£

2022
£

Raw materials and consumables

128,991

90,285

Work in progress

624,191

396,299

Finished goods and goods for resale

130,755

87,277

883,937

573,861

8

Debtors

2023
£

2022
£

Trade debtors

510,794

358,575

Other debtors

-

6,138

Prepayments

85,028

44,980

595,822

409,693

 

Stanmar Limited

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

9

Creditors

Due within one year

Note

2023
£

2022
£

 

Loans and borrowings

10

363,013

139,992

Trade creditors

 

286,229

166,361

Amounts due to related parties

364,114

405,165

Social security and other taxes

 

62,828

55,686

Other creditors

 

13,280

12,432

Accruals

 

14,423

15,115

 

1,103,887

794,751

Due after one year

 

Loans and borrowings

10

5,305

66,643

10

Loans and borrowings

Current loans and borrowings

2023
£

2022
£

Hire purchase contracts

61,338

57,241

Other borrowings

301,675

82,751

363,013

139,992

Non-current loans and borrowings

2023
£

2022
£

Hire purchase contracts

5,305

66,643

Finance lease Liabilities
Obligations under finance lease and hire purchase contracts are secured over the related asset.

Other borrowings
Other borrowings are secured by way of a fixed and floating charge over the assets of the company including book debts.

 

Stanmar Limited

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

11

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £Nil (2022 - £91,102).

The total amount of guarantees not included in the balance sheet in relation to the bank and other borrowings of a fellow subsidiary is £1,529,218 (2022 - £1,447,330). These are secured by a fixed and floating charge over the assets of the company.

The total amount of contingencies not included in the balance sheet is £4,320,352 (2022 - £Nil). During the period ended 31 December 2022 the company suffered a loss of stock held by a third party sub-contractor due to a fire at their premises. An insurance claim for the loss of stock and the interruption to operations was received during the year end 31 December 2023. After the balance sheet date the company received notification from the customer regarding compensation for business interruption at a cost of US $5,452,800 (£4,320,352).

12

Parent and ultimate parent undertaking

The company's immediate parent is Magnaghi (Uk) Ltd, incorporated in England and Wales.

 The ultimate parent is Invesco S.p.A., incorporated in Italy.

  These financial statements are available upon request from Via dei Mille, 1, 80121, Naples Italy
 

The parent of the largest group in which these financial statements are consolidated is Magnaghi Holding S.p.A., incorporated in Italy.

The address of Magnaghi Holding S.p.A. is:
Via dei Mille, 1, 80121, Naples, Italy

The parent of the smallest group in which these financial statements are consolidated is Magnaghi (Uk) Limited, incorporated in England and Wales.

The address of Magnaghi (Uk) Limited is:
Eagle Works, London Road, Thrupp, Stroud, Gloucestershire, GL5 2BA

13

Non adjusting events after the financial period

The directors intend to transfer the trade, assets and liabilities of the company to Nu-Pro Limited, a fellow subsidiary undertaking, on 30 June 2024. At the date of approval of these financial statements, some of the processes involved with this transfer were already underway.