REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
FOR |
BRIDGE ALUMINIUM LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
FOR |
BRIDGE ALUMINIUM LIMITED |
BRIDGE ALUMINIUM LIMITED (REGISTERED NUMBER: 09907672) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the year ended 31 October 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Statement of Income and Retained Earnings | 6 |
Balance Sheet | 7 |
Notes to the Financial Statements | 8 |
BRIDGE ALUMINIUM LIMITED |
COMPANY INFORMATION |
for the year ended 31 October 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditor |
Unit 2, Charnwood Edge Business Park |
Syston Road |
Leicestershire |
LE7 4UZ |
BRIDGE ALUMINIUM LIMITED (REGISTERED NUMBER: 09907672) |
STRATEGIC REPORT |
for the year ended 31 October 2023 |
The directors present their strategic report for the year ended 31 October 2023. |
REVIEW OF BUSINESS |
The business has performed well this year and the Directors have been pleased to see the profitable progression of the business to now cover high pressure, low pressure, gravity, sand and low pressure sand casting capabilities. Bridge now offers an unrivalled scope of products in the industry which should generate additional sales in the future. |
These changes have resulted from the reverse acquisition of the trade, assets and liabilities of GW Atkins & Sons in the previous year and during the year the purchase from administration of the assets of G&W Engineering in Worcester. These investments have come at a significant short term cost, as have the necessary restructuring associated with these changes, however the Board expect these one of costs to be completed prior to the coming financial year. |
Customer volumes have remained at a reasonably healthy level, although the picture has been mixed. Operationally the performance of the business has continued to improve and further significant investments have been made to support margins and efficiency. In particular the business has achieved market leading reductions in energy usage both improving costs as well as its carbon footprint. |
The direct Pandemic issues have abated, to be replaced by the knock on impacts of large inflationary costs, and the Russian/ Ukraine war. The management has reacted to its customers for pricing adjustments which have been agreed, although there has been a significant lag. The business has won additional business during this year which should commence in 2023/24 and as a result of this and the strong controls in place the company looks to the future with some confidence. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The key risks and uncertainties affecting the company are considered to relate to competition from overseas suppliers, global demand for our customer products and energy/ raw material costs. The company is well positioned with a number of key supplier partners, strong workforce and management team and healthy reserves to meet these challenges allowing continuing investment into the future. |
FINANCIAL KEY PERFORMANCE INDICATORS |
The Company's key performance indicators are as follows: |
Sales |
The accounts report a 40% increase (2022 - 37%) in the level of sales over the previous financial year. |
Gross Margin |
Gross margin for the year has increased from 11.9% to 15.1%. |
ON BEHALF OF THE BOARD: |
BRIDGE ALUMINIUM LIMITED (REGISTERED NUMBER: 09907672) |
REPORT OF THE DIRECTORS |
for the year ended 31 October 2023 |
The directors present their report with the financial statements of the company for the year ended 31 October 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of manufacture of specialist aluminium high integrity gravity die cast and machined components. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 November 2022 to the date of this report. |
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. |
AUDITORS |
The auditors, Magma Audit LLP (part of the Dains Group), will be proposed for re-appointment at the forthcoming Annual General Meeting. |
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BRIDGE ALUMINIUM LIMITED |
Opinion |
We have audited the financial statements of Bridge Aluminium Limited (the 'company') for the year ended 31 October 2023 which comprise the Statement of Income and Retained Earnings, Balance Sheet and 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 October 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. |
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; or |
- | the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BRIDGE ALUMINIUM LIMITED |
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 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Based on our understanding of the company and the industry, we have identified that the principal risks of non-compliance with laws and regulations related to UK Tax and legislation and breaches of health and safety, and we have considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Companies Act 2006. We evaluated 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 posting inappropriate journal entries, and management bias in accounting estimates. Audit procedures performed included: |
- Enquiries with management for consideration of known or suspected instances of non-compliance with laws and regulations and fraud. |
- Challenging assumptions made by management in their accounting estimates, particularly in relation to accruals provisions. |
- Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations, journal entries crediting revenue, and journal entries with specific defined descriptions. |
There are inherent limitations in the audit procedures described above. The more removed non-compliance with laws and regulations is, from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by forgery or intentional misrepresentation, for example, or through collusion. |
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 |
Chartered Accountants |
Statutory Auditor |
Unit 2, Charnwood Edge Business Park |
Syston Road |
Leicestershire |
LE7 4UZ |
BRIDGE ALUMINIUM LIMITED (REGISTERED NUMBER: 09907672) |
STATEMENT OF INCOME AND |
RETAINED EARNINGS |
for the year ended 31 October 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Distribution costs | ( |
) | ( |
) |
Administrative expenses | ( |
) | ( |
) |
746,085 | 1,297,207 |
Other operating income | 5 |
OPERATING PROFIT | 7 |
Interest payable and similar expenses | 8 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 9 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year |
RETAINED EARNINGS AT END OF YEAR |
BRIDGE ALUMINIUM LIMITED (REGISTERED NUMBER: 09907672) |
BALANCE SHEET |
31 October 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | ( |
) |
Tangible assets | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
BRIDGE ALUMINIUM LIMITED (REGISTERED NUMBER: 09907672) |
NOTES TO THE FINANCIAL STATEMENTS |
for the year ended 31 October 2023 |
1. | STATUTORY INFORMATION |
Bridge Aluminium Limited is a limited company, registered in England and Wales. Its registered office address is 365 Fosse Way, Syston, Leicester, England, LE7 1NL and the registered number is 09907672. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006. |
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £. |
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. |
During the year, the company purchased all of the trade and assets from Grainger and Worrall Engineering Limited. The company was in administration at the date that the trade and assets were acquired and no shares were purchased. The transfer of trade and assets was done under standard acquisition accounting rules. |
Going concern |
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have prepared financial forecasts which, including cashflow forecasts. These demonstrate that the company has sufficient resources to meet its liabilities for at least twelve months from signing these financial statements. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 3.17(d); |
• | the requirement of paragraph 33.7. |
Turnover |
Turnover represents amounts receivable for goods and services net of VAT and trade discounts. |
Revenue is recognised in the period in which the goods are despatched. |
Intangible assets |
Goodwill represents the excess of the cost of initial acquisition over the net fair value of assets. This is largely attributable to the plant and equipment and after initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
The estimated useful life of goodwill is deemed to be 10 years. |
Goodwill also represents the shortfall of the cost of the business acquisition, compared to the fair value of the net assets acquired. It is initially recognised at cost and subsequently measured at cost less any accumulated amortisation and impairment. |
Negative goodwill is credited to Statement of Comprehensive Income as the underlying assets are realised (stock and tangible fixed assets). |
BRIDGE ALUMINIUM LIMITED (REGISTERED NUMBER: 09907672) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 October 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. |
Depreciation is recognised so as to write off the cost or valuations of assets less residual values over the useful lives. |
The estimated useful lives range as follows: |
Short leasehold land & Buildings | Over the term of the lease |
Plant & equipment | 4 - 10 years |
Motor vehicles | 3 - 4 years on a straight line basis |
Fixtures & Fittings | 3 years on a straight line basis |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads. |
At each balance sheet date, stocks are assessed for impairment. If stock is 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. |
Financial instruments |
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. |
(i) Financial assets |
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. |
(ii) Financial liabilities |
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Taxation |
The tax expense for the period comprises current and deferred tax. |
Tax is recognised in profit or loss except that a change attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. |
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that: |
- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and |
- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. |
Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
BRIDGE ALUMINIUM LIMITED (REGISTERED NUMBER: 09907672) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 October 2023 |
2. | 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. |
Operating leases |
Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments 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 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. |
Finance costs |
Finance costs are charged to the statement of comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. |
Debtors |
Basic financial assets, including trade and other debtors, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment. |
Cash and cash equivalents |
Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
Creditors |
Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment. |
Provisions for liabilities |
Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. |
Provisions are charged as an expense to the statement of comprehensive income in the period that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. |
When payments are eventually made, they are charged to the provision carried in the balance sheet. |
Employee benefits |
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. |
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. |
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. |
BRIDGE ALUMINIUM LIMITED (REGISTERED NUMBER: 09907672) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 October 2023 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND 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. |
Key sources of estimation uncertainty |
The key sources of estimation and uncertainty, which have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities, are: |
i. Stock and impairments and provisions |
Stock is valued at lower of cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these estimates require judgements to be made, which include forecasting consumer demand, competitive and economic environment and stock loss trends. |
The management on a regular basis regularly reviews this.The provision for stock loss is made to ensure the accounts reflect the lowest of net realisable value or cost. The provision comprises of the loss due to ageing of stock. Historic costs are used to calculate the provision. |
ii. Useful lives of property, plant and equipment & negative goodwill |
Management reviews the useful lives of property, plant and equipment on a regular basis. Any changes in estimates may affect the carrying amounts of the respective property, plant and equipment with a corresponding effect on the related depreciation charge. This will also have an impact on the amortisation of the negative goodwill, which is in relation to the useful life of the assets. |
iii. Bad Debt Provisioning |
An allowance for the bad debts is made when collection of the full amount is no longer probable. The trade receivables balance is assesses at the end of each reporting period whether there is no objective evidence of impairment and recognises a bad debt allowance if such evidence arises. |
4. | 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 |
Rest of the World | 66,427 | 199,121 |
5. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Rents received |
BRIDGE ALUMINIUM LIMITED (REGISTERED NUMBER: 09907672) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 October 2023 |
6. | 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 |
Production | 165 | 100 |
Admin | 56 | 20 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
7. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
(Profit)/loss on disposal of fixed assets | ( |
) |
Goodwill amortisation | ( |
) | ( |
) |
Auditors' remuneration |
Foreign exchange differences | ( |
) |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Invoice discounting facility |
Finance lease |
BRIDGE ALUMINIUM LIMITED (REGISTERED NUMBER: 09907672) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 October 2023 |
9. | 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 |
Adjustment to prior years | - | (6,831 | ) |
Total current tax |
Deferred tax |
Tax on profit |
UK corporation tax was charged at 19%) in 2022. |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
Fixed asset loss on disposal | (1,055 | ) | 7,655 |
Connected company loan write off | - | (95,000 | ) |
Adjustment to taxable profit in relation to stock transfer | - | (58,022 | ) |
Origination and reversal of timing differences | - | 113,465 |
Rental income | (97,149 | ) | - |
Trade losses in relation to Kettering site | 184,805 | - |
Non-trade financial losses | 36,588 | - |
Uplift in corporation tax rate | 33,481 | - |
Total tax charge | 68,077 | 182,541 |
Tax losses of £1,680,750 are carried forward as at 31 October 2022. |
BRIDGE ALUMINIUM LIMITED (REGISTERED NUMBER: 09907672) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 October 2023 |
10. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 November 2022 | ( |
) |
Additions | ( |
) |
At 31 October 2023 | ( |
) |
AMORTISATION |
At 1 November 2022 | ( |
) |
Amortisation for year | ( |
) |
At 31 October 2023 | ( |
) |
NET BOOK VALUE |
At 31 October 2023 | ( |
) |
At 31 October 2022 |
Included within goodwill at cost is goodwill arising on business combinations of £735,114 and negative goodwill relating to stock and plant and machinery of £1,947,428. |
11. | TANGIBLE FIXED ASSETS |
Short |
leasehold | Fixtures |
land & | Plant and | and | Motor |
buildings | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 November 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 October 2023 |
DEPRECIATION |
At 1 November 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 October 2023 |
NET BOOK VALUE |
At 31 October 2023 |
At 31 October 2022 |
Included in plant and machinery are assets held under finance leases with a net book value of £1,825,455 (2022 - £2,513,607). Depreciation charged on these assets amounted to £707,734 (2022 - £714,136) |
12. | STOCKS |
2023 | 2022 |
£ | £ |
Raw materials |
Work-in-progress |
Finished goods |
BRIDGE ALUMINIUM LIMITED (REGISTERED NUMBER: 09907672) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 October 2023 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts owed by related party |
Amounts owed by/to group undertakings | 312,000 | 316,668 |
Other debtors | 253,422 | 13,145 |
Prepayments and accrued income |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Hire purchase contracts (see note 16) |
Trade creditors |
Amounts owed to related party |
Tax |
Social security and other taxes |
VAT | 701,068 | 399,232 |
Invoice discount facility |
Other creditors | 386,954 | 380,000 |
Accruals and deferred income |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Hire purchase contracts (see note 16) |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
BRIDGE ALUMINIUM LIMITED (REGISTERED NUMBER: 09907672) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 October 2023 |
16. | LEASING AGREEMENTS - continued |
Obligations under finance leases and hire purchase contracts are secured upon the asset concerned. Finance lease payments represent rentals payable by the company for plant and machinery. |
Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is more then 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payment. |
Operating leases relate to rent payable for the buildings in which the company operates. |
Lessor |
The company sub-leases property. Rental income earned on the specific property under non-cancellable agreements during the year was £412,813 (2022 - £97,062). The total period of the lease is 5 years. |
At the reporting end date the company had contracted with customers for the following minimum lease payments: |
Non-cancellable |
operating leases |
2023 | 2022 |
£ | £ |
Within one year | 412,813 | 390,058 |
Between one ad five years | 321,720 | 647,083 |
734,533 | 1,037,140 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Hire purchase contracts | 1,149,701 | 1,332,870 |
Invoice discount facility | 839,381 | 1,304,444 |
The hire purchase creditors are secured against the assets financed. |
The invoice discount facility is guaranteed by a fixed and floating charge over the assets of the company. |
18. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Deferred |
tax |
£ |
Balance at 1 November 2022 |
Balance at 31 October 2023 |
BRIDGE ALUMINIUM LIMITED (REGISTERED NUMBER: 09907672) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 October 2023 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary shares of £1 each | 1 | 900,001 | 900,001 |
The company's ordinary shares carry full rights with respect to voting, dividends and distributions. |
20. | PENSION COMMITMENTS |
The company operates a defined contributions scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £252,305 (2022 - £133,967). |
21. | CONTINGENT LIABILITIES |
On 19 August 2020, G W Atkins & Sons Limited entered in to an agreement to purchase the assets of a competitor. Included in these assets were £1,480,000 of Plant and Machinery and the competitor's order book at £795,500. As part of the agreement, there is £1,175,500 of deferred consideration payable within 24 months of the completion date. |
At the point of approving these financial statements, the agreement is in legal dispute and the Company has not made any payments towards the deferred consideration. The directors of G W Atkins & Sons Limited are doubtful that the deferred consideration attributable to the order book of £795,500 will be payable once the case is settled. The exact amount is currently being negotiated. |
Due to the trade and assets of G W Atkins & Sons Limited being transferred to Bridge Aluminium Limited in the year the contingent liabilities have also transferred. |
22. | CAPITAL COMMITMENTS |
2023 | 2022 |
£ | £ |
Contracted but not provided for in the |
financial statements |
BRIDGE ALUMINIUM LIMITED (REGISTERED NUMBER: 09907672) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 October 2023 |
23. | RELATED PARTY DISCLOSURES |
Bridge Aluminium Limited is related to the below companies in the period by virtue of being ultimately controlled by C R F Shield. During the period, the company had transactions with these companies as follows: |
2023 | 2022 |
£ | £ |
Purchases from Spaw Engineering Limited | (23,479 | ) | (25,992 | ) |
Sales to Spaw Engineering Limited | 3,528,983 | 3,775,643 |
Amounts due from Spaw Engineering Limited | 280,650 | 290,012 |
Purchases from Shield Engineering (Syston) Limited | (402,494 | ) | (184,823 | ) |
Sales to Shield Engineering (Syston) Limited | 3,472,340 | 1,523,283 |
Amounts due to Shield Engineering (Syston) Limited | (2,037,194 | ) | (1,769,917 | ) |
Purchases from Shield Properties Limited | (78,000 | ) | (71,100 | ) |
Amounts due to Shield Properties Limited | - | (19,500 | ) |
Purchases from Burrows & Smith Limited | (1,710 | ) | (1,365 | ) |
Sales to Burrows & Smith Limited | 319,853 | 164,212 |
Amount due to Burrows & Smith Limited | (392,783 | ) | (295,755 | ) |
Purchases from Woolley GMC Engineering Limited | (191,853 | ) | (4,860 | ) |
Sales to Woolley GMC Engineering Limited | 7,283 | 91,800 |
Amount due from Woolley GMC Engineering Limited | 161,586 | 324,765 |
Sales to Shield Manufacturing Technologies Limited | 10,579 | - |
Sales to O.L.D. Engineering Company Limited | 7,270 | - |
Amounts due to O.L.D Engineering Company Limited | 500,000 | - |
During the prior year there was a related party loan payable of £500,000 written off to the Income Statement. |
24. | ULTIMATE CONTROLLING PARTY |
The company is controlled by its parent company GW Atkins and Sons Holdings Limited, which is controlled by C R F Shield. |