REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
ORBITAL FABRICATIONS LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
ORBITAL FABRICATIONS LIMITED |
ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Income Statement | 9 |
Other Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Cash Flow Statement | 14 |
Notes to the Financial Statements | 16 |
ORBITAL FABRICATIONS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
ACCOUNTANTS: |
11c Kings Parade |
Cambridge |
Cambridgeshire |
CB2 1SJ |
ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2024 |
The board of directors are pleased to provide their review of the company for the year to 31st March 2024. |
REVIEW OF BUSINESS |
During the year to 31st March 2024 Orbital has made great progress in moving to the next level of growth against the boards strategic plan despite the ever changing operating environment. |
For the year under review turnover increased by 12.5% to £14.8 million following robust growth in service line delivery as well as winning some large site projects, although towards the end of the financial year sales intake has slowed as customer have moved blanket orders out. Despite the inflationary increase in costs across materials, energy and staff costs the overall operating profit has increased from £2.3 million in 2023 to £3.3 million as at 31st March 2024. |
With the increase in demand the business has managed to review its internal processes and both retain existing staff and operate more efficiently with those existing staff mitigating the need to invest significantly in additional headcount.The restructuring has enabled the expansion of the in-house installation team following the winning of some large site projects across the country which provides some exciting prospects as we move through 2024 and beyond. |
We are still currently looking at the alternative energy sector as this is now a fast growing industry that Orbital could provide services for.Unfortunately a company with which Orbital had been working with and with who the board perceived to have enormous potential went into liquidation in January 2024. However the board will continue to review and develop the company's presence in this sector. |
PRINCIPAL RISKS AND UNCERTAINTIES |
LIQUIDITY RISK |
The company seeks to manage its financial risk by ensuring sufficient cash resources are available to meet foreseeable needs. |
CREDIT RISK |
Credit risk associated with trade debtors is managed by the credit control functions which continually monitors the age and size of balances due. |
RECRUITMENT AND RETENTION OF STAFF |
The loss of key individuals is important to the delivery of the company's strategy. The company seeks to retain its key employees by providing above market rates of compensation and benefits. |
CYBER SECURITY |
Cyber and data security remain a key risk as technology and third-party cloud-based applications remain susceptible to the threat of cyber-attacks. A data breach or attack could result in operational disruption which could reduce the effectiveness of company IT systems. This in turn could result in the loss of income, financial, customer or employee data resulting in reputational damage. To mitigate these risks the company employees a range of proactive and reactive security controls. |
INFLATIONARY COST PRESSURES |
Suppliers may look to pass on inflationary increases in their input prices. Other areas may also be subject to inflationary pressure such as utility bills, staff costs and other variable costs. Such increases may be difficult to offset or fully pass on to customer. However, the board seek to mitigate this risk through the continued negotiation with suppliers to reduce the impact of price inflation and undertake regular dialogue with customers concerning pricing. |
PREMISES CAPACITY |
The company has fully utilised its available office and factory floor capacity and therefore this could be a limiting factor in the ability of the company to undertake further contracts. This has been mitigated in part by taking possession of a freehold industrial unit previously let to a third party by the company. |
ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2024 |
KEY PERFORMANCE INDICATORS |
The directors monitor the company's progress and strategic direction by reference to certain financial key performance indicators. A summary of key performance indicators used is set out below: |
2024 | 2023 |
Turnover | £14.8m | £13.6m |
Gross margin | 46% | 35% |
Operating profit margin | 22% | 17% |
FUTURE DEVELOPMENTS |
The Boards outlook for 2024/25 remains incredibly positive as the company still has a strong order book, with open orders currently running at an average of £6 - £7 million. However, the operating environment is expected to become more difficult and competitive. Whilst there are indications that markets are slowing there continues to be more challenges in the wider macro environment that will impact the trading environment.However, the company remains well placed to manage any such challenges. |
The year to March 2024 has been a very different but exciting year, we have exceeded as a company all of our targets set a the beginning of March 2023. A significant event was our decision as directors and shareholders to sell 80% of the company to Bergman and Beving (B&B), a company incorporated in Sweden and listed on the Swedish stock exchange. This will provide Orbital the backing it needs and the best chance of succeeding with the objective to pursue the next level of growth and achieve a £25 million turnover within the next five years. |
Following the move into unit 21 which provided additional manufacturing capacity various ongoing contracts are continuing to be manufactured in this space. The board have further made the decision not to re-let unit 31 to a third party tenant, but convert this into additional manufacturing capacity. This will provide additional capacity to support the continued growth of the business as it seeks to expand into developing market sectors in 2024 and beyond. |
Following the sale to B&B Ian Pearson retained a minority interest in the business but relinquished his position as Managing Director and undertook a part time contract and will now retire and leave the business at the end of July 2024. I remain CEO and have also retained a minority share of the business. We are currently looking for my successor as CEO and once this position has been filled, following a period of handover I will look to slowly move away from the business and when confident with the new CEO I will look to hand over full day to day control and retire from the business. |
The year has been Orbital's best year to date and the future looks very encouraging as the foundations are put into place to take the business forward to greater things. |
ON BEHALF OF THE BOARD: |
5 July 2024 |
ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2024 |
The directors present their report with the financial statements of the company for the year ended 31 March 2024. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 March 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
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. |
ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2024 |
AUDITORS |
The auditors, Thompson Taraz Rand Audit and Assurance Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ORBITAL FABRICATIONS LIMITED |
Opinion |
We have audited the financial statements of Orbital Fabrications Limited (the 'company') for the year ended 31 March 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ORBITAL FABRICATIONS LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ORBITAL FABRICATIONS LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
We obtained an understanding of the legal and regulatory frameworks applicable to the company and the industry in which it operates through our general commercial and sector experience and discussions with management. We determined that the following laws and regulations were most significant: the Companies Act 2006, FRS 102 'the Financial Reporting Standards applicable in the UK and relevant UK tax legislation. In addition, we concluded that there are certain laws and regulations that may have an effect on the determination of the amounts and disclosures within the financial statements such as Health and Safety laws and regulations. Employment Legislation |
We made inquiries with management to understand whether there were any instances of non-compliance with laws-and regulations or whether they had any knowledge of actual, or suspected fraud. From the procedures performed we did not identify any matters relating to non-compliance with laws and regulation or matters in relation to fraud. |
We evaluated directors and managements incentives and opportunities for fraudulent manipulation of the financial statements (including management override of controls) and determined the principal risks were related to the posting of manual journal entries, management bias through application of judgement and assumptions in significant accounting estimates particular relating to allocation, slow moving and obsolete stock provision and revenue recognition. |
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 none compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standard would identify it. |
In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing noncompliance or fraud and cannot be expected to detect non-compliance with all laws and regulations. |
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 |
10 Jesus Lane |
Cambridge |
Cambridgeshire |
CB5 8BA |
ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2024 |
31.3.24 | 31.3.23 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
3,349,851 | 2,344,147 |
Other operating income |
OPERATING PROFIT | 4 |
Interest receivable and similar income |
3,415,050 | 2,349,764 |
Interest payable and similar expenses | 5 |
PROFIT BEFORE TAXATION |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL YEAR |
ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MARCH 2024 |
31.3.24 | 31.3.23 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162) |
BALANCE SHEET |
31 MARCH 2024 |
31.3.24 | 31.3.23 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 7 |
CURRENT ASSETS |
Stocks | 8 |
Debtors | 9 |
Cash and cash equivalents |
CREDITORS |
Amounts falling due within one year | 10 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 13 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 14 |
Retained earnings | 15 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 March 2023 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 March 2024 |
ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2024 |
31.3.24 | 31.3.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Provision for retentions | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Amount introduced by directors | 60,692 | 390,000 |
Amount withdrawn by directors | (200,000 | ) | (450,927 | ) |
Net cash from financing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year | 2 | 1,502,468 | 449,820 |
Cash and cash equivalents at end of year | 2 | 3,547,470 |
ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.3.24 | 31.3.23 |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss on disposal of fixed assets |
Finance costs | 2,146 | 538 |
Finance income | (43,138 | ) | (4,253 | ) |
3,468,982 | 2,428,845 |
Increase in stocks | ( |
) | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2024 |
31.3.24 | 1.4.23 |
£ | £ |
Cash and cash equivalents | 3,547,470 | 1,667,170 |
Bank overdrafts | ( |
) |
3,547,470 | 1,502,468 |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 1,667,170 | 449,820 |
Bank overdrafts | ( |
) |
1,502,468 | 449,820 |
Included in 'cash and cash equivalents' is £1m (2023: NIL) held in group treasury which is available to the company at short notice. |
ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2024 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.4.23 | Cash flow | At 31.3.24 |
£ | £ | £ |
Net cash |
Cash and cash equivalents | 1,667,170 | 1,880,300 | 3,547,470 |
Bank overdrafts | (164,702 | ) | 164,702 | - |
1,502,468 | 3,547,470 |
Total | 1,502,468 | 2,045,002 | 3,547,470 |
ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
1. | STATUTORY INFORMATION |
Orbital Fabrications Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Significant judgements and estimates |
Useful economic lives of tangible fixed assets: |
Tangible fixed assets are depreciated over their expected useful lives taking into consideration residual values, where appropriate. The actual lives of the assets and residual values are assessed and amended when necessary to reflect the current estimates based on economic utilisation and physical condition of the assets. |
Doubtful debts: |
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade debtors, management considers factors including the current credit rating of the debtor, the ageing of the debtor and historical experience regarding payment history. |
Slow moving stock: |
Management apply judgement in evaluating stock movement and possible obsolescence. This judgement is based on managements' knowledge of the stock, customer demand as well as stock age. At each balance sheet date stocks are reviewed for potential impairment and written down where appropriate. |
Provision for retentions: |
The company recognises a provision based on management judgement against possible remedial costs to be incurred during a period that usually covers 12 months from the date of completion. |
Turnover |
Turnover shown in the profit and loss account represents the value of outstanding retentions withheld by customers for completed but unvoiced work, applications for payment in respect of the value of work completed, together with amounts invoiced during the year for the manufacture of spool assemblies, gas delivery systems as well as Orbital and TIG welding. Revenue is recognised in relation to engineering concept design services, leak testing and CNC machining services once the right to consideration has been earnt . All revenue is recognised exclusive of Value Added Tax. |
Tangible fixed assets |
Freehold property | - |
Improvements to property | - |
Plant and machinery | - |
Motor vehicles | - |
ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
Work in progress is valued at the cost of materials, plus direct labour and an apportionment of overheads. |
Slow moving stock: |
Management apply judgement in evaluating stock movement and possible obsolescence concerning stock items that have been held for a period of 2 years. This judgement is based on managements' knowledge of the stock, customer demand as well as stock age. At each balance sheet date stocks are reviewed for potential impairment and written down where appropriate using management best estimate of the likely usage of the stock line. |
Financial instruments |
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets or financial liabilities or equity instruments. |
Basic financial assets: |
Basic financial assets which include assets and such as debtors, 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 constitute a financing transaction, where the transaction is measured at the present value of future receipts are discounted at a market rate of interest. Assets receivable within one year are not discounted. |
Basic financial liabilities: |
Basic financial liabilities. including creditors, are initially measured at transaction price net of transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not discounted. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all material timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
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. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The 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. |
Provisions |
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 profit or loss in the year 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. |
Cash and cash equivalents |
Cash equivalents represent ‘short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value’, and,shall include any investments with a maturity of three months or less from acquisition. |
3. | EMPLOYEES AND DIRECTORS |
31.3.24 | 31.3.23 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.3.24 | 31.3.23 |
Admin | 28 | 27 |
Production | 59 | 53 |
ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
3. | EMPLOYEES AND DIRECTORS - continued |
31.3.24 | 31.3.23 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
31.3.24 | 31.3.23 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
31.3.24 | 31.3.23 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Auditors' remuneration |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.3.24 | 31.3.23 |
£ | £ |
Bank interest |
HMRC interest |
ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.3.24 | 31.3.23 |
£ | £ |
Current tax: |
UK corporation tax |
R & D tax refund for 2021 | - | (42,091 | ) |
Total current tax |
Deferred tax |
Tax on profit |
UK corporation tax has been charged at 25% . |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.3.24 | 31.3.23 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
R & D tax refund for 2021 | - | (42,091 | ) |
Deferred tax | 13,822 | 326 |
Total tax charge | 883,664 | 411,047 |
ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
7. | TANGIBLE FIXED ASSETS |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST |
At 1 April 2023 |
Additions |
Disposals | ( |
) |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
Eliminated on disposal |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 April 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
8. | STOCKS |
31.3.24 | 31.3.23 |
£ | £ |
Stocks |
Work-in-progress |
9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.24 | 31.3.23 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.24 | 31.3.23 |
£ | £ |
Bank loans and overdrafts (see note 11) |
Trade creditors |
Corporation Tax |
Social security and other taxes |
VAT | 163,771 | 205,280 |
Other creditors |
Directors' loan accounts | - | 139,308 |
Accrued expenses |
11. | LOANS |
An analysis of the maturity of loans is given below: |
31.3.24 | 31.3.23 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
12. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.3.24 | 31.3.23 |
£ | £ |
Within one year |
Between one and five years |
ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
13. | PROVISIONS FOR LIABILITIES |
31.3.24 | 31.3.23 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Provision b/fwd | 48,063 | 47,737 |
61,885 | 48,063 |
Other provisions |
Provision for retentions | 8,660 | 10,562 |
Aggregate amounts | 70,545 | 58,625 |
Deferred |
tax |
£ |
Balance at 1 April 2023 |
Provided during year |
Balance at 31 March 2024 |
Deferred tax has been recognised in respect of the excess of capital allowances over depreciation. |
A provision has been recognised regarding funds held on retention (included in 'trade debtors'), The company provides a 12 month guarantee against all material, labour and component costs and as such a provision has been recognised, based on an estimate of future costs to be incurred against this guarantee. |
14. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.3.24 | 31.3.23 |
value: | £ | £ |
Ordinary | £1 | 1,000 | 1,000 |
During the year under review 'Bergman and Beving' acquired 80% of the company's share capital. |
15. | RESERVES |
Retained |
earnings |
£ |
At 1 April 2023 |
Profit for the year |
At 31 March 2024 |
ORBITAL FABRICATIONS LIMITED (REGISTERED NUMBER: 02223162) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
16. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 March 2024 and 31 March 2023: |
31.3.24 | 31.3.23 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
17. | RELATED PARTY DISCLOSURES |
Key management personnel of the entity or its parent (in the aggregate) |
During the year under review the directors were repaid £139,307 of loans and were subsequently advanced £200,000. These amounts were interest free and repaid to the business in full during the year under review. The balance outstanding at the end of the year amounted to £NIL (2023: £139,307). |
During the year the company advanced £70,000 to a shareholder and employee of the business. The outstanding loan at the year end was £NIL (2023: £49,608 Cr). This was interest free and repayable on demand. |
During the year under review the company paid rent of £49,750 (2023: £49,750) to a pension scheme of which the directors are beneficiaries. |
During the year, a total of key management personnel compensation of £ |
18. | CONTROLLING PARTY |
The ultimate controlling party at the end of the year was 'Bergman and Beving', a company incorporated in Sweden (company number: 556034-8590). The group consolidated financial statements are available from Box 10024 100 55 Stockholm Sweden. |