Company registration number 2346358 (England and Wales)
SOUTH WEST STRUCTURALS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
SOUTH WEST STRUCTURALS LIMITED
COMPANY INFORMATION
Directors
Mr SJ Knowles
Mr GG Watt
Secretary
Mr PR Campbell
Company number
2346358
Registered office
Salisbury House
London Wall
London
EC2M 5PS
Auditor
Cottons Accountants LLP
The Stables
Church Walk
Daventry
Northamptonshire
UK
NN11 4BL
SOUTH WEST STRUCTURALS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
5
Directors' responsibilities statement
4
Independent auditor's report
6 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 34
SOUTH WEST STRUCTURALS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Review of the business

The principal activity of the group is that of traders of steel and associated products.

The directors consider that both the level of business and the financial position at the end of the year continue to be satisfactory. The group continues to strive to grow the customer and product base, whilst maintaining historical business relationships.

The group continues to enjoy an excellent reputation as one of few medium-sized independent steel traders able to compete with the large groups in its selected product and sale areas.

Steel by nature is a highly recyclable product. The group favours steel produced from scrap and endeavours to keep vehicle movements to a minimum. It is the policy of the group, where possible, to ship in bulk to reduce ship movements.

 

The group continues to respect the personal concerns and requirements of all staff.

 

Principal risks and uncertainties

The group is exposed to interest rate risk on its borrowings and is reliant upon facilities with its bankers (and related parties), which presents both liquidity and cash-flow risks. The directors are of the opinion that the group's bankers are currently satisfied with the group's financial performance and do not believe that there is any immediate risk of facilities being withdrawn. The group endeavours to always operate with a margin of available banking facilities.

The group is exposed to foreign exchange risk due to the nature of large foreign currency transactions. This is significantly mitigated through the use of forward exchange agreements matched to foreign currency contractual liabilities. There is a small residual risk attached to the possibility of being under or over-covered on contracts, but the directors consider this to be minimal.

Credit risk is mitigated through sales being credit insured or covered by security (either by way of letters of credit or cash deposits). The policy of the group is that all customers who wish to trade on credit terms with the group are subject to credit verification procedures. Receivables balances are monitored on an ongoing basis.

 

Commodity price risk is mitigated through the group principally operating with back-to-back trades, contractually covered with both supplier and customer.

 

Development and performance

Future developments

The directors note a satisfactory start to the new financial year, albeit with some activity constrained by interest rate increases and poor UK economic performance. Chinese slowdowns and EU reduced steel consumption have impacted the pricing and availability of steel leading to some reduction in demand for the company's products. However, the directors do not currently see a major impact upon the medium-term stability of the company and its finances.

Key performance indicators

The group's key financial and other performance indicators during the year were as follows:

 

Unit

2024

2023

Gross profit margin

%

12

13

Return on capital employed

%

14

43

Stock turnover

Days

94

91

Trade debtors

Days

73

71

Trade creditors

Days

30

15

SOUTH WEST STRUCTURALS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Slavery and Human Trafficking Statement

The Modern Slavery Act 2015 requires certain businesses to publish a statement setting out the steps taken in the previous financial year to ensure that slavery and human trafficking is not taking place in their supply chains or own business.

Our supply chain

The group is committed to working with its supply chain and customer base to ensure that they are aware of their responsibilities under the Modern Slavery Act 2015 and that all parties remain committed to tacking the problems through their own actions.

The products sold or utilised by the group are primarily sourced from long-standing suppliers located world-wide. We work closely with steel producers all over the world and aim to visit these suppliers a minimum of once a year in order to keep in close contact with all levels of management throughout the supplier and in order to understand any changes in their production or raw material procurement.

The group does not knowingly deal with any businesses that are involved in slavery or human trafficking but does understand that this is a hidden problem that must be tackled in conjunction with suppliers. It is also fully aware of the issues and the group policy is stated in this document.

Employees

All employees involved in procurement are aware if the Modern Slavery Act 2015 and understand the requirement to report any suspicions that they may have of any violations on the part of any of our suppliers. They will also be kept advised of any changes to the act in the future.

If any violation is found through our engagement processes we will take action to address the situation, taking into consideration the interests of those whose rights have been violated.

This policy will be reviewed annually unless circumstances demand a more frequent review.

 

This statement is made pursuant to section 54 of the Modern Slavery Act 2015 and constitutes the group's slavery and human trafficking statement for the year ended 31st March 2025.

SOUTH WEST STRUCTURALS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Section 172 Statement

The board of directors of South West Structurals Group consider that they have acted in good faith in a way that would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1) (a-f) of the Companies Act 2006) in the decisions taken during the year ended 31 March 2022.

 

Specific ways we addressed the needs of our stakeholders are:

 

Our customers

 

Our suppliers

 

Our people

 

Our community and environment

 

Our shareholders

On behalf of the board

Mr SJ Knowles
Director
12 August 2024
SOUTH WEST STRUCTURALS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

SOUTH WEST STRUCTURALS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company continued to be that of a holding company and for the group continued to be that of traders of steel and related products.

Results and dividends

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

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

Mr SJ Knowles
Mr GG Watt
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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Mr SJ Knowles
Director
12 August 2024
SOUTH WEST STRUCTURALS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SOUTH WEST STRUCTURALS LIMITED
- 6 -
Opinion

We have audited the financial statements of South West Structurals Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows 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 group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The 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:

SOUTH WEST STRUCTURALS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SOUTH WEST STRUCTURALS LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

SOUTH WEST STRUCTURALS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SOUTH WEST STRUCTURALS LIMITED
- 8 -

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 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 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

Richard Wilch FCCA (Senior Statutory Auditor)
For and on behalf of Cottons Accountants LLP
19 August 2024
Chartered Accountants
Statutory Auditor
The Stables
Church Walk
Daventry
Northamptonshire
UK
NN11 4BL
SOUTH WEST STRUCTURALS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
60,120,821
83,643,154
Cost of sales
(53,007,302)
(72,364,393)
Gross profit
7,113,519
11,278,761
Administrative expenses
(4,780,974)
(4,626,781)
Operating profit
4
2,332,545
6,651,980
Interest receivable and similar income
8
146,311
1,788
Interest payable and similar expenses
9
(877,203)
(647,825)
Profit before taxation
1,601,653
6,005,943
Tax on profit
10
(443,399)
(975,147)
Profit for the financial year
23
1,158,254
5,030,796
Profit for the financial year is attributable to:
- Owner of the parent company
1,128,999
5,006,926
- Non-controlling interests
29,255
23,870
1,158,254
5,030,796
SOUTH WEST STRUCTURALS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
£
£
Profit for the year
1,158,254
5,030,796
Other comprehensive income
-
-
Total comprehensive income for the year
1,158,254
5,030,796
Total comprehensive income for the year is attributable to:
- Owners of the parent company
1,128,999
5,006,926
- Non-controlling interests
29,255
23,870
1,158,254
5,030,796
SOUTH WEST STRUCTURALS LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
927,034
933,841
Current assets
Stocks
15
11,220,453
15,179,841
Debtors
16
12,558,894
16,956,190
Cash at bank and in hand
7,609,010
2,797,872
31,388,357
34,933,903
Creditors: amounts falling due within one year
17
(15,560,074)
(20,270,838)
Net current assets
15,828,283
14,663,065
Total assets less current liabilities
16,755,317
15,596,906
Provisions for liabilities
Provisions
19
80,000
80,000
(80,000)
(80,000)
Net assets
16,675,317
15,516,906
Capital and reserves
Called up share capital
22
140,000
140,000
Share premium account
23
1,485,000
1,485,000
Capital redemption reserve
23
25,000
25,000
Profit and loss reserves
23
14,735,905
13,606,906
Equity attributable to owner of the parent company
16,385,905
15,256,906
Non-controlling interests
289,412
260,000
16,675,317
15,516,906
The financial statements were approved by the board of directors and authorised for issue on 12 August 2024 and are signed on its behalf by:
12 August 2024
Mr SJ Knowles
Director
Company registration number 2346358 (England and Wales)
SOUTH WEST STRUCTURALS LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
84,552
86,178
Investments
13
554,345
554,345
638,897
640,523
Current assets
Debtors
16
21,775,096
21,804,198
Cash at bank and in hand
2,949
14,569
21,778,045
21,818,767
Creditors: amounts falling due within one year
17
(8,952,605)
(9,946,179)
Net current assets
12,825,440
11,872,588
Total assets less current liabilities
13,464,337
12,513,111
Provisions for liabilities
Provisions
19
80,000
80,000
(80,000)
(80,000)
Net assets
13,384,337
12,433,111
Capital and reserves
Called up share capital
22
140,000
140,000
Share premium account
23
1,485,000
1,485,000
Capital redemption reserve
23
25,000
25,000
Profit and loss reserves
23
11,734,337
10,783,111
Total equity
13,384,337
12,433,111

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £951,226 (2023 - £4,568,080 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 12 August 2024 and are signed on its behalf by:
12 August 2024
Mr SJ Knowles
Director
Company registration number 2346358 (England and Wales)
SOUTH WEST STRUCTURALS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
£
Balance at 1 April 2022
140,000
1,485,000
25,000
12,399,980
14,049,980
236,130
14,286,110
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
-
5,006,926
5,006,926
23,870
5,030,796
Dividends
11
-
-
-
(3,800,000)
(3,800,000)
-
(3,800,000)
Balance at 31 March 2023
140,000
1,485,000
25,000
13,606,906
15,256,906
260,000
15,516,906
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
-
1,128,999
1,128,999
29,255
1,158,254
Other movements
-
-
-
-
-
157
157
Balance at 31 March 2024
140,000
1,485,000
25,000
14,735,905
16,385,905
289,412
16,675,317
SOUTH WEST STRUCTURALS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2022
140,000
1,485,000
25,000
10,015,031
11,665,031
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
-
4,568,080
4,568,080
Dividends
11
-
-
-
(3,800,000)
(3,800,000)
Balance at 31 March 2023
140,000
1,485,000
25,000
10,783,111
12,433,111
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
-
951,226
951,226
Balance at 31 March 2024
140,000
1,485,000
25,000
11,734,337
13,384,337
SOUTH WEST STRUCTURALS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
10,922,052
17,701,608
Interest paid
(877,203)
(647,825)
Income taxes paid
(823,332)
(970,098)
Net cash inflow from operating activities
9,221,517
16,083,685
Investing activities
Purchase of tangible fixed assets
(67,291)
(109,796)
Proceeds from disposal of tangible fixed assets
12,500
25,260
Interest received
146,311
1,788
Net cash generated from/(used in) investing activities
91,520
(82,748)
Financing activities
Repayment of borrowings
(1,340,656)
3,881,693
Repayment of bank loans
(3,161,243)
(16,505,984)
Dividends paid to equity shareholders
-
0
(3,800,000)
Net cash used in financing activities
(4,501,899)
(16,424,291)
Net increase/(decrease) in cash and cash equivalents
4,811,138
(423,354)
Cash and cash equivalents at beginning of year
2,797,872
3,221,226
Cash and cash equivalents at end of year
7,609,010
2,797,872
SOUTH WEST STRUCTURALS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
388,398
74,643
Interest paid
(817,946)
(294,122)
Income taxes paid
(701,534)
(859,998)
Net cash outflow from operating activities
(1,131,082)
(1,079,477)
Investing activities
Interest received
2,105,573
1,339,817
Net cash generated from investing activities
2,105,573
1,339,817
Financing activities
Repayment of borrowings
(986,111)
3,527,148
Dividends paid to equity shareholders
-
(3,800,000)
Net cash used in financing activities
(986,111)
(272,852)
Net decrease in cash and cash equivalents
(11,620)
(12,512)
Cash and cash equivalents at beginning of year
14,569
27,081
Cash and cash equivalents at end of year
2,949
14,569
SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
1
Accounting policies
Company information

South West Structurals Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Salisbury House, London Wall, London, England, EC2M 5PS.

 

The group consists of South West Structurals Limited and all of its subsidiaries.

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.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company South West Structurals Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
1.5
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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

1.6
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.

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:

Freehold land and buildings
Over 50 years
Leasehold land and buildings
Over the period of the lease
Fixtures and fittings
4-7 years straight line
Computers
2-3 years straight line
Motor vehicles
4 years straight line

No depreciation is provided on the land element of freehold land and buildings.

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 recognised in the profit and loss account.

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.8
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -
1.9
Stocks

Stocks are stated at the lower of cost and 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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.10
Cash and cash equivalents

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.

1.11
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 21 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 22 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.13
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 group’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 and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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 if, and only if, there is 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.

1.14
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 23 -
1.15
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.

1.16
Retirement benefits

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

1.17
Leases

Rentals payable under operating leases, including any lease incentives received, 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 leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

3
Turnover and other revenue
2024
2023
£
£
Other revenue
Interest income
146,311
1,788
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
1,078
(57,752)
Depreciation of owned tangible fixed assets
74,098
68,555
Profit on disposal of tangible fixed assets
(12,500)
(25,260)
Operating lease charges
68,316
29,850
SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
2,925
4,125
Audit of the financial statements of the company's subsidiaries
25,062
21,274
27,987
25,399
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Sales and administration
11
14
-
-
Distribution
3
3
-
-
Directors
7
7
2
2
Total
21
24
2
2

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,135,991
2,989,431
1,250,000
601,109
Social security costs
434,733
363,825
171,244
80,436
Pension costs
56,737
639,140
-
0
-
0
3,627,461
3,992,396
1,421,244
681,545
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
600,000
601,109
SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
7
Directors' remuneration
(Continued)
- 25 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
600,000
601,109
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Bank interest received
107,490
-
0
Other interest income
38,821
1,788
Total income
146,311
1,788
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
57,328
353,703
Other interest on financial liabilities
818,065
294,122
875,393
647,825
Other finance costs:
Other interest
1,810
-
Total finance costs
877,203
647,825
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
444,242
1,081,086
Deferred tax
Origination and reversal of timing differences
(843)
(105,939)
Total tax charge
443,399
975,147
SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Taxation
(Continued)
- 26 -

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:

2024
2023
£
£
Profit before taxation
1,601,653
6,005,943
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
400,413
1,141,129
Tax effect of expenses that are not deductible in determining taxable profit
23,774
(55,858)
Change in unrecognised deferred tax assets
33,561
(87,645)
Permanent capital allowances in excess of depreciation
(2,092)
(11,893)
Depreciation on assets not qualifying for tax allowances
11,862
7,707
Tax (decrease)/increase from effect of capital allowances and depreciation
(47,000)
-
0
Profit adjustments from director bonus c/fwd
17,534
-
0
5,347
(18,293)
Taxation charge
443,399
975,147
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
-
3,800,000
SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2023
968,906
131,712
66,366
29,258
149,577
1,345,819
Additions
10,980
-
0
9,600
1,551
45,160
67,291
Disposals
-
0
-
0
-
0
-
0
(28,094)
(28,094)
At 31 March 2024
979,886
131,712
75,966
30,809
166,643
1,385,016
Depreciation and impairment
At 1 April 2023
222,489
45,534
39,013
27,744
77,198
411,978
Depreciation charged in the year
14,599
1,626
13,945
2,267
41,661
74,098
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(28,094)
(28,094)
At 31 March 2024
237,088
47,160
52,958
30,011
90,765
457,982
Carrying amount
At 31 March 2024
742,798
84,552
23,008
798
75,878
927,034
At 31 March 2023
746,417
86,178
27,353
1,514
72,379
933,841
Company
Leasehold land and buildings
£
Cost
At 1 April 2023 and 31 March 2024
131,712
Depreciation and impairment
At 1 April 2023
45,534
Depreciation charged in the year
1,626
At 31 March 2024
47,160
Carrying amount
At 31 March 2024
84,552
At 31 March 2023
86,178
SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
12
Tangible fixed assets
(Continued)
- 28 -

The carrying value of land and buildings comprises freehold land at net book value of £250,000 (2023: £250,000) and freehold buildings and improvements at net book value of £492,798 (2023: £496,416).

Group
Company
2024
2023
2024
2023
£
£
£
£
Freehold
742,798
746,416
-
0
-
0
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
554,345
554,345
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023 and 31 March 2024
554,345
Carrying amount
At 31 March 2024
554,345
At 31 March 2023
554,345
14
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Kromat Trading Limited
Salisbury House, London Wall, London, EC2M 5PS
Ordinary
76.00
-
Tubetrade PLC
As above
Ordinary
85.86
-
Ramsteel Tubes Limited
As above
Ordinary
-
85.86

During the financial year, Kromat Trading Limited issued new B shares to a minority interest. The shareholding in Kromat Trading Limited therefore decreased from 100% to 76%.

15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
11,220,453
15,179,841
-
0
-
0
SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 29 -
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
11,994,793
16,355,982
-
0
-
0
Corporation tax recoverable
132,383
4,809
132,383
-
0
Other debtors
127,323
163,570
21,642,658
21,804,140
Prepayments and accrued income
174,673
302,950
55
58
12,429,172
16,827,311
21,775,096
21,804,198
Amounts falling due after more than one year:
Deferred tax asset (note 20)
129,722
128,879
-
0
-
0
Total debtors
12,558,894
16,956,190
21,775,096
21,804,198
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
18
-
0
3,161,243
-
0
-
0
Other borrowings
18
7,526,086
8,866,742
7,526,086
8,512,197
Trade creditors
4,012,305
2,929,030
-
0
-
0
Corporation tax payable
114,803
366,319
-
0
251,533
Other taxation and social security
1,016,863
1,748,515
171,244
575,824
Other creditors
79,500
-
0
-
0
-
0
Accruals and deferred income
2,810,517
3,198,989
1,255,275
606,625
15,560,074
20,270,838
8,952,605
9,946,179
18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans and overdrafts
-
0
3,161,243
-
0
-
0
Other loans
7,526,086
8,866,742
7,526,086
8,512,197
7,526,086
12,027,985
7,526,086
8,512,197
Payable within one year
7,526,086
12,027,985
7,526,086
8,512,197

The bank indebtedness is secured by a debenture in favour of the group's bankers

SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
19
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Foreign exchange
80,000
80,000
80,000
80,000
Movements on provisions:
Foreign exchange
Group
£
Additional provisions in the year
80,000
Foreign exchange
Company
£
Additional provisions in the year
80,000

The provision represents the Directors' prudent estimate of the potential foreign exchange difference arising from the repayment of the the loan provided by Mr S Knowles, repayable in euros to the equivalent of £4,800,000.

20
Deferred taxation

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

Assets
Assets
2024
2023
Group
£
£
Accelerated capital allowances
15,049
1,524
Retirement benefit obligations
40,000
111,000
Other
74,673
16,355
129,722
128,879
The company has no deferred tax assets or liabilities.
SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
20
Deferred taxation
(Continued)
- 31 -
Group
Company
2024
2024
Movements in the year:
£
£
Asset at 1 April 2023
(128,879)
-
Credit to profit or loss
(843)
-
Asset at 31 March 2024
(129,722)
-
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
56,737
639,140

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
140,000
140,000
140,000
140,000

The company has one class of ordinary shares which carry no right to fixed income. The shares carry the right to participate in any distribution of the company with respects both capital and dividends. The shares carry rights to participate in a vote of the members, whether by poll or show of hands.

23
Reserves
Share premium

The share premium account represents the excess of amounts subscribed above the nominal value of allotted shares.

Capital redemption reserve

The capital redemption reserve represents the nominal value of own shares purchased and cancelled in 2006.

SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 32 -
24
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
37,992
37,992
-
-
Between two and five years
95,772
102,511
-
-
In over five years
-
10,418
-
-
133,764
150,921
-
-
25
Directors' transactions

During the year, Tubetrade plc provided advances and loans to certain directors.

 

As at 31 March 2024, Mr P McCammon owed the company £20,000 (2023: £50,000). This balance is interest free and repayable on demand.

 

As at 31 March 2024, Mr D Howells owed the company £5,500 (2023: £7,500). This balance is interest free and repayable on demand.

 

As at 31 March 2024, Mr D Howells owed the company £62,325 (2023: £71,070). This loan is subject to 2% interest. The interest charged during the year was £1,255 (2023: £1,567). This loan is repayable on demand.

At 31 March 2024 a balance was payable by South West Structurals Limited to a director of £7,526,086 (2023: £8,218,491). Interest arose on the loan during the year of £817,946 (2023: £293,706).

26
Controlling party

The ultimate controlling party is Mr S J Knowles, a director of the company.

SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 33 -
27
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,158,253
5,030,796
Adjustments for:
Taxation charged
443,399
975,147
Finance costs
877,203
647,825
Investment income
(146,311)
(1,788)
Gain on disposal of tangible fixed assets
(12,500)
(25,260)
Depreciation and impairment of tangible fixed assets
74,098
68,555
Decrease in provisions
-
(404,658)
Movements in working capital:
Decrease in stocks
3,959,389
5,864,144
Decrease in debtors
4,525,870
7,963,873
Increase/(decrease) in creditors
42,651
(2,417,026)
Cash generated from operations
10,922,052
17,701,608
28
Cash generated from operations - company
2024
2023
£
£
Profit for the year after tax
951,226
4,568,080
Adjustments for:
Taxation charged
317,618
958,221
Finance costs
817,946
294,122
Investment income
(2,105,573)
(1,339,817)
Depreciation and impairment of tangible fixed assets
1,626
1,626
Decrease in provisions
-
(404,658)
Movements in working capital:
Decrease/(increase) in debtors
161,485
(4,890,080)
Increase in creditors
244,070
887,149
Cash generated from operations
388,398
74,643
29
Analysis of changes in net funds/(debt) - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
2,797,872
4,811,138
7,609,010
Borrowings excluding overdrafts
(12,027,985)
4,501,899
(7,526,086)
(9,230,113)
9,313,037
82,924
SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 34 -
30
Analysis of changes in net debt - company
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
14,569
(11,620)
2,949
Borrowings excluding overdrafts
(8,512,197)
986,111
(7,526,086)
(8,497,628)
974,491
(7,523,137)
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