Company Registration No. 02884442 (England and Wales)
5750 COMPONENTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PM+M Solutions for Business LLP
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
5750 COMPONENTS LIMITED
COMPANY INFORMATION
Directors
J S Hartley
W Tierney
Secretary
A B Sedgley
Company number
02884442
Registered office
Britannia House
Junction Street
Darwen
Lancashire
BB3 2RB
Auditor
PM+M Solutions for Business LLP
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
Bankers
Lloyds Bank Plc
Church Street
Blackburn
BB2 1JQ
5750 COMPONENTS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 22
5750 COMPONENTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Business Review

The business had another strong year, consolidating the recent growth in turnover and growing operating profit further despite increased commodity costs. There continues to be optimism around future growth opportunities. Success will continue to be grounded in upholding ongoing levels of customer service, product quality and value for money offerings in the market

 

Total headcount at year end was 85.

 

The Directors consider the business to be well placed for the future.

Principal risks and uncertainties

The principal risks to the business include the following:

 

Financial and other key performance indicators

During the year, various indicators were used to monitor and compare the company’s performance. The following are regarded as the key financial indicators of performance, all of which can be observed in the attached financial statements. The company uses other performance indicators in its day to day operations but the directors consider these commercially sensitive and they are therefore not specifically disclosed.

 

-    Turnover £17.9 million (2022: £17.2 million)

-    Gross Margin 28.1% (2022: 27.1%)

-    Operating Profit £2.1 million (2022: £1.98 million)

 

5750 COMPONENTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Stakeholder Engagement

The directors have a responsibility under S172 of the Companies Act 2006 to act in a way that promotes the company’s success for the benefit of the members as a whole, and to have regard to the long-term effects of decisions on the company and stakeholders. The following statement outlines the way in which these responsibilities are handled:

 

The company is privately held and provides employment, training and financial reward to the owners and employees, including profit sharing arrangements.

 

Strategic decisions are based on medium and long-term objectives. In particular, the policy of continued investment in latest state of the art production technologies ensures high quality and efficiency of output and provides an ongoing competitive edge in the market.

 

Key stakeholders, and the ways in which we engage with them, are as follows:

 

Employees

 

We rely on a skilled and highly motivated workforce and recruitment & retention of staff is critical to the business. We help engagement with our team by:

 

Appropriate remuneration and reward for outstanding performance through profit sharing arrangements;

    Providing industry leading training, coupled with career development opportunities.

 

Customers and suppliers

 

We invest heavily in the latest technology throughout our business so that we can continue to offer quality products at short lead times. Our customers value our high degree of expertise, reliability and value for money offerings. We have built a reputation for fair dealings with both customers and suppliers alike.

On behalf of the board

J S Hartley
Director
6 August 2024
5750 COMPONENTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activities of the company are laser cutting and the fabrication and forming of metals.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

J S Hartley
W Tierney
Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £1,000,000. The directors do not recommend payment of a final dividend.

Auditor

The auditor, PM+M Solutions for Business LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report 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:

 

 

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 of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

5750 COMPONENTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Disclosure

The ultimate shareholder has requested that the directors include the following statement

- the ultimate parent company is privately held, as is the company, and they believe the requirement to publish

private accounts is a violation of both the spirit and law under UK right to privacy legislation.

 

On behalf of the board
J S Hartley
Director
6 August 2024
5750 COMPONENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF 5750 COMPONENTS LIMITED
- 5 -
Opinion

We have audited the financial statements of 5750 Components Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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:

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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

5750 COMPONENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF 5750 COMPONENTS LIMITED (CONTINUED)
- 6 -
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 directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is 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.

Auditor's 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 an auditor's report 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

5750 COMPONENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF 5750 COMPONENTS LIMITED (CONTINUED)
- 7 -

Identifying and assessing potential risks related to irregularities

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following:

 

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of commercial income; posting of unusual journals and complex transactions; and manipulating the Company's performance profit measures and other key performance indicators to meet remuneration targets and externally communicated targets. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

 

We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, 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 UK Companies Act, employment law, health and safety, pensions legislation and tax legislation.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

5750 COMPONENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF 5750 COMPONENTS LIMITED (CONTINUED)
- 8 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's report 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 member, for our audit work, for this report, or for the opinions we have formed.

Ceri Dixon BSc (Hons) FCA
Senior Statutory Auditor
For and on behalf of PM+M Solutions for Business LLP
9 August 2024
Chartered Accountants
Statutory Auditor
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
5750 COMPONENTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
£
£
Turnover
3
17,911,120
17,238,489
Cost of sales
(12,876,928)
(12,563,409)
Gross profit
5,034,192
4,675,080
Distribution costs
(723,265)
(567,536)
Administrative expenses
(2,231,720)
(2,130,233)
Other operating income
-
0
5,908
Operating profit
4
2,079,207
1,983,219
Interest paid and similar expenses
7
(54,099)
(60,428)
Profit before taxation
2,025,108
1,922,791
Tax on profit
8
(474,521)
(356,654)
Profit for the financial year
1,550,587
1,566,137

The profit and loss account has been prepared on the basis that all operations are continuing operations.

5750 COMPONENTS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,895,922
2,285,855
Current assets
Stocks
11
568,052
464,974
Debtors
12
11,683,404
11,885,056
Cash at bank and in hand
828,523
347,073
13,079,979
12,697,103
Creditors: amounts falling due within one year
13
(5,017,212)
(5,059,482)
Net current assets
8,062,767
7,637,621
Total assets less current liabilities
9,958,689
9,923,476
Creditors: amounts falling due after more than one year
14
(1,147,765)
(1,627,820)
Provisions for liabilities
Deferred tax liability
16
(179,945)
(215,264)
(179,945)
(215,264)
Net assets
8,630,979
8,080,392
Capital and reserves
Called up share capital
18
20,000
20,000
Profit and loss reserves
8,610,979
8,060,392
Total equity
8,630,979
8,080,392
The financial statements were approved by the board of directors and authorised for issue on 6 August 2024 and are signed on its behalf by:
J S Hartley
Director
Company Registration No. 02884442
5750 COMPONENTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
20,000
6,994,255
7,014,255
Year ended 31 December 2022:
Profit and total comprehensive income
-
1,566,137
1,566,137
Dividends
9
-
(500,000)
(500,000)
Balance at 31 December 2022
20,000
8,060,392
8,080,392
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,550,587
1,550,587
Dividends
9
-
(1,000,000)
(1,000,000)
Balance at 31 December 2023
20,000
8,610,979
8,630,979
5750 COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

5750 Components Limited is a private company limited by shares incorporated in England and Wales. The registered office is Britannia House, Junction Street, Darwen, Lancashire, BB3 2RB.

 

The company's trading address is Villiers Road, Knowsley Business Park, Merseyside, L34 9ET.

1.1
Accounting convention

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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of WEC Group Holdings Limited. These consolidated financial statements are available from its registered office, Britannia House, Junction Street, Darwen, Lancashire, BB3 2RB.

1.2
Going concern

Atruet 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. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

5750 COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
10 - 20% straight line
Fixtures and fittings
15% straight line
Office equipment
33% straight line
Motor vehicles
25% straight line
S/Term Leasehold Property
20% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.6
Stocks

Stocks are stated at the lower of either cost or estimated selling price less costs to complete and sell. Cost 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, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include debtors, cash and bank balances, are measured at transaction price.

Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies are recognised at transaction price.

 

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.

5750 COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences.

 

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.10
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.11
Hire purchase and operating leases

A hire purchase arises whenever the terms of the contract transfer substantially all the risks and rewards of ownership to the company.

 

Assets held under hire purchase are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum hire purchase payments. The related liability is included in the balance sheet as a hire purchase obligation. Payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
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. The main areas of judgement that have a risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year, are in relation to stock and debtor provisions, and useful economic lives of the company's fixed assets.

5750 COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
17,907,870
17,229,885
Europe
3,250
8,604
17,911,120
17,238,489
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
82,553
86,757
Depreciation of tangible fixed assets held under hire purchase
502,020
460,896
Operating lease charges
135,000
135,000
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
6,750
6,250
For other services
Taxation compliance services
820
800
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Production
69
63
Selling and distribution
6
5
Administration
10
9
Total
85
77
5750 COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 16 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,328,439
2,964,851
Social security costs
324,519
301,338
Pension costs
62,833
41,583
3,715,791
3,307,772
7
Interest paid and similar expenses
2023
2022
£
£
Interest paid on hire purchase contracts
54,099
60,428
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
509,840
362,616
Adjustments in respect of prior periods
-
0
(4,082)
Total current tax
509,840
358,534
Deferred tax
Origination and reversal of timing differences
(35,319)
(1,429)
Changes in tax rates
-
0
(451)
Total deferred tax
(35,319)
(1,880)
Total tax charge
474,521
356,654

From the 1 April 2023 the effective tax rate is 25%. During the period the effective tax rate has changed to 23.5%.

5750 COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
(Continued)
- 17 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
2,025,108
1,922,791
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
476,305
365,330
Tax effect of expenses that are not deductible in determining taxable profit
306
1,016
Adjustments in respect of prior years
-
0
(4,082)
Fixed asset differences
-
0
(5,159)
Remeasure deferred tax for future changes in tax rates
(2,090)
(451)
Taxation charge for the year
474,521
356,654
9
Dividends
2023
2022
£
£
Interim paid
1,000,000
500,000
5750 COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
10
Tangible fixed assets
Assets under construction
Plant and equipment
Fixtures and fittings
Office equipment
Motor vehicles
S/Term Leasehold Property
Total
£
£
£
£
£
£
£
Cost
At 1 January 2023
-
0
4,766,380
127,754
6,200
137,568
189,064
5,226,966
Additions
135,730
58,910
-
0
-
0
-
0
-
0
194,640
Disposals
-
0
(2,715)
-
0
-
0
-
0
-
0
(2,715)
At 31 December 2023
135,730
4,822,575
127,754
6,200
137,568
189,064
5,418,891
Depreciation and impairment
At 1 January 2023
-
0
2,581,798
111,414
516
58,319
189,064
2,941,111
Depreciation charged in the year
-
0
545,789
10,056
3,096
25,632
-
0
584,573
Eliminated in respect of disposals
-
0
(2,715)
-
0
-
0
-
0
-
0
(2,715)
At 31 December 2023
-
0
3,124,872
121,470
3,612
83,951
189,064
3,522,969
Carrying amount
At 31 December 2023
135,730
1,697,703
6,284
2,588
53,617
-
0
1,895,922
At 31 December 2022
-
0
2,184,582
16,340
5,684
79,249
-
0
2,285,855

The net carrying value of tangible fixed assets includes the following in respect of assets held under hire purchase contracts.

2023
2022
£
£
Plant and equipment
1,502,815
1,961,875
Motor vehicles
53,617
79,249
1,556,432
2,041,124
5750 COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
11
Stock
2023
2022
£
£
Raw materials and consumables
178,384
223,163
Work in progress
389,668
241,811
568,052
464,974
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,917,736
3,980,266
Corporation tax recoverable
15,410
37,971
Amounts owed by group undertakings
7,645,962
7,798,476
Other debtors
60,500
40,000
Prepayments and accrued income
43,796
28,343
11,683,404
11,885,056
Amounts owed by group undertakings are interest free and not subject to any formal agreements.
13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under hire purchase contracts
15
480,055
486,411
Trade creditors
2,352,245
2,460,552
Amounts owed to group undertakings
242,413
242,916
Taxation and social security
407,136
437,523
Other creditors
1,328,484
1,308,074
Accruals and deferred income
206,879
124,006
5,017,212
5,059,482

The amounts owed to group undertakings are interest free and not subject to any formal agreements.

 

Included within other creditors is an amount due to related parties, £27,000 (2022 - £27,000).

 

The hire purchase contracts are secured on the assets to which they relate.

5750 COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under hire purchase contracts
15
1,147,765
1,627,820

The hire purchase contracts are secured on the assets to which they relate.

15
Hire purchase obligations
2023
2022
Future minimum hire purchase payments due under hire purchase contracts:
£
£
Within one year
518,644
540,510
In two to five years
1,186,162
1,680,783
In over five years
-
0
23,868
1,704,806
2,245,161
Less: future finance charges
(76,986)
(130,930)
1,627,820
2,114,231
16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Fixed asset timing differences
181,170
215,532
Short term timing differences
(1,225)
(268)
179,945
215,264
2023
Movements in the year:
£
Liability at 1 January 2023
215,264
Credit to profit or loss
(35,319)
Liability at 31 December 2023
179,945
5750 COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
62,833
41,583

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

At balance sheet date, these contributions outstanding totalled £13,070 (2022 - £10,070)

18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
20,000
20,000
20,000
20,000
19
Financial commitments, guarantees and contingent liabilities

On 16 June 2023, a fixed and floating charge over all assets of the company was created with Comerica Bank N.A.

20
Operating lease commitments

At the reporting date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
135,000
45,000
Between two and five years
450,000
-
0
Total
585,000
45,000
21
Related party transactions

The company has taken advantage of the exemption conferred by FRS 102 not to disclose transactions with wholly owned group companies where the voting rights are controlled by the group and the subsidiaries are included in the parent company consolidated financial statements.

 

The company made purchases from companies that are connected by common control of £533,036 (2022 - £345,415). A total of £65,329 (2022 - £71,824) was due to these companies at the year end.

 

The company made sales to companies that are connected by common control of £3,832 (2022 - £Nil). A total of £3,832 (2022 - £Nil) was due from these companies at the year end.

 

The company has purchased services from a company with a common director totalling £139,370 (2022 - £142,720 ). A total of £27,000 (2022 - £27,000) was due to this company at the year end.

5750 COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
22
Ultimate controlling party

WEC Group Holdings Limited, a company registered in the UK, is the parent company and is the smallest group which the company is consolidated into. The immediate parent company to WEC Group Holdings Ltd is Britannia Metals Holdings Ltd, a company registered in the USA. Britannia Metals Parent Company, also a company registered in the USA, is the controlling party and ultimate parent company and is the largest group which the company is consolidated into.

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