Company registration number 2840856 (England and Wales)
RAMSTEEL TUBES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
RAMSTEEL TUBES LIMITED
COMPANY INFORMATION
Directors
Mr SJ Knowles
Mr GG Watt
Mr PR Wilson
Secretary
Mr PR Campbell
Company number
2840856
Registered office
Salisbury House
London Wall
London
EC2M 5PS
Auditor
Cottons Accountants LLP
The Stables
Church Walk
Daventry
Northamptonshire
UK
NN11 4BL
RAMSTEEL TUBES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
12
Statement of cash flows
11
Notes to the financial statements
13 - 24
RAMSTEEL TUBES 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 company is that of traders of steel and construction products.
The company is an indirect subsidiary of South West Structurals Limited, a company registered in England and Wales - further details of which can be found within the notes to the financial statements.
The directors consider that both the level of business and the financial position at the end of the year continue to be satisfactory. The company continues to strive to grow the customer and product base, whilst maintaining historical business relationships.
The company continues to enjoy an excellent reputation as a reliable supplier of tubes and construction products.
Steel by nature is a highly recyclable product. The company favours steel produced from scrap and endeavours to keep vehicle movements to a minimum. It is the policy of the company, where possible, to ship in bulk to reduce ship movements.
The company continues to respect the personal concerns and requirements of all staff.
Principal risks and uncertainties
The company 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 company's bankers are currently satisfied with the company's financial performance and do not believe that there is any immediate risk of facilities being withdrawn. The company endeavours to always operate with a margin of available banking facilities.
The company 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 company is that all customers who wish to trade on credit terms with the company are subject to credit verification procedures. Receivables balances are monitored on an ongoing basis.
Commodity price risk is mitigated through the company 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.
RAMSTEEL TUBES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Key performance indicators
The company's key financial and other performance indicators during the year were as follows:
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Return on capital employed | | | |
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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 company 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 company 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 company 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 company 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 company's slavery and human trafficking statement for the year ended 31st March 2025.
Mr SJ Knowles
Director
12 August 2024
RAMSTEEL TUBES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
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 steel trader
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final 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
Mr PR Wilson
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr SJ Knowles
Director
12 August 2024
RAMSTEEL TUBES 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 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.
RAMSTEEL TUBES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF RAMSTEEL TUBES LIMITED
- 5 -
Opinion
We have audited the financial statements of Ramsteel Tubes Limited (the 'company') for the year ended 31 March 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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:
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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
RAMSTEEL TUBES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF RAMSTEEL TUBES LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industry;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, anti-bribery, employment, environmental and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of factual, suspected and alleged fraud;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
maintaining professional skepticism throughout the audit.
RAMSTEEL TUBES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF RAMSTEEL TUBES LIMITED (CONTINUED)
- 7 -
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC.
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.
This report is made solely to the company's member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.
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
RAMSTEEL TUBES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
9,767,678
18,345,292
Cost of sales
(8,646,239)
(15,587,253)
Gross profit
1,121,439
2,758,039
Administrative expenses
(675,657)
(2,239,961)
Operating profit
3
445,782
518,078
Interest payable and similar expenses
6
(404,582)
(457,155)
Profit before taxation
41,200
60,923
Tax on profit
7
(22,894)
(14,587)
Profit for the financial year
18,306
46,336
The profit and loss account has been prepared on the basis that all operations are continuing operations.
RAMSTEEL TUBES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
£
£
Profit for the year
18,306
46,336
Other comprehensive income
-
-
Total comprehensive income for the year
18,306
46,336
RAMSTEEL TUBES LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
8
42,007
64,362
Current assets
Stocks
9
1,650,876
2,307,285
Debtors
11
2,622,423
3,909,253
Cash at bank and in hand
455,252
373,138
4,728,551
6,589,676
Creditors: amounts falling due within one year
12
(4,141,554)
(6,036,506)
Net current assets
586,997
553,170
Total assets less current liabilities
629,004
617,532
Provisions for liabilities
Deferred tax liability
14
6,834
-
(6,834)
Net assets
629,004
610,698
Capital and reserves
Called up share capital
16
12,002
12,002
Profit and loss reserves
617,002
598,696
Total equity
629,004
610,698
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:
Mr SJ Knowles
Director
Company registration number 2840856 (England and Wales)
RAMSTEEL TUBES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
580,707
2,114,364
Interest paid
(404,582)
(457,155)
Income taxes paid
(6,503)
(16,996)
Net cash inflow from operating activities
169,622
1,640,213
Investing activities
Purchase of tangible fixed assets
(84,016)
Proceeds from disposal of tangible fixed assets
25,260
Net cash used in investing activities
-
(58,756)
Financing activities
Repayment of bank loans
(87,508)
(1,337,704)
Net cash used in financing activities
(87,508)
(1,337,704)
Net increase in cash and cash equivalents
82,114
243,753
Cash and cash equivalents at beginning of year
373,138
129,385
Cash and cash equivalents at end of year
455,252
373,138
RAMSTEEL TUBES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2022
12,002
552,360
564,362
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
46,336
46,336
Balance at 31 March 2023
12,002
598,696
610,698
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
18,306
18,306
Balance at 31 March 2024
12,002
617,002
629,004
RAMSTEEL TUBES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
1
Accounting policies
Company information
Ramsteel Tubes Limited is a private company limited by shares incorporated in England and Wales. The registered office is Salisbury House, London Wall, London, EC2M 5PS.
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
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
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:
Fixtures and fittings
4 years straight line
Computers
3 years straight line
Motor vehicles
4 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
RAMSTEEL TUBES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
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.
1.6
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.
1.7
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.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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.
RAMSTEEL TUBES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
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.
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 company 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 company 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.
RAMSTEEL TUBES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company 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 company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences 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 when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
RAMSTEEL TUBES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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 leases asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
846
18,867
Fees payable to the company's auditor for the audit of the company's financial statements
8,500
7,823
Depreciation of owned tangible fixed assets
22,355
23,401
Profit on disposal of tangible fixed assets
-
(25,260)
Operating lease charges
19,738
16,530
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Sales, marketing and distribution
6
6
RAMSTEEL TUBES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
4
Employees
(Continued)
- 18 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
328,906
469,884
Social security costs
36,841
62,080
Pension costs
21,058
107,560
386,805
639,524
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
150,750
264,000
Company pension contributions to defined contribution schemes
6,347
55,995
157,097
319,995
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 0 (2023: 1).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
n/a
264,000
Company pension contributions to defined contribution schemes
n/a
55,995
As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.
6
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
680
Interest payable to group undertakings
404,485
456,475
404,485
457,155
Other finance costs:
Other interest
97
404,582
457,155
RAMSTEEL TUBES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
36,428
6,503
Deferred tax
Origination and reversal of timing differences
(13,534)
8,084
Total tax charge
22,894
14,587
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
41,200
60,923
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
10,300
11,575
Tax effect of expenses that are not deductible in determining taxable profit
18,843
5,817
Change in unrecognised deferred tax assets
(13,534)
8,084
Profit on sale of fixed assets
(4,799)
Capital Allowances
5,034
(6,090)
Pension
2,251
Taxation charge for the year
22,894
14,587
8
Tangible fixed assets
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2023 and 31 March 2024
6,525
6,994
84,016
97,535
Depreciation and impairment
At 1 April 2023
5,174
6,994
21,004
33,173
Depreciation charged in the year
1,351
21,004
22,355
At 31 March 2024
6,525
6,994
42,008
55,528
Carrying amount
At 31 March 2024
-
42,008
42,007
At 31 March 2023
1,351
-
63,012
64,362
RAMSTEEL TUBES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
8
Tangible fixed assets
(Continued)
- 20 -
9
Stocks
2024
2023
£
£
Finished goods and goods for resale
1,650,876
2,307,285
10
Financial instruments
Financial assets
Financial assets that are debt instruments measured at amortised cost comprise trade debtors and other debtors. As at 31st March 2024 these amounted to £2,453,937 (2023: £3,646,582).
Financial liabilities
Financial liabilities that are debt instruments measured at amortised cost comprise trade creditors, bank loans and overdrafts, other creditors and accruals. As at 31st March 2024 these amounted to £586,067 (2023: £1,073,977).
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,426,939
3,611,582
Corporation tax recoverable
4,809
Other debtors
99,377
208,438
Prepayments and accrued income
89,407
84,424
2,615,723
3,909,253
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 14)
6,700
Total debtors
2,622,423
3,909,253
RAMSTEEL TUBES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
12
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
13
87,508
Trade creditors
458,203
660,028
Corporation tax
25,045
(71)
Other taxation and social security
23,519
60,871
Other creditors
3,506,923
4,901,357
Accruals and deferred income
127,864
326,813
4,141,554
6,036,506
13
Loans and overdrafts
2024
2023
£
£
Bank loans and overdrafts
87,508
Payable within one year
87,508
The bank loans and overdraft are secured by a debenture in favour of the company's bankers.
14
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
-
6,834
(1,800)
-
Deferred tax
-
-
8,500
-
-
6,834
6,700
-
2024
Movements in the year:
£
Liability at 1 April 2023
6,834
Credit to profit or loss
(13,534)
Asset at 31 March 2024
(6,700)
RAMSTEEL TUBES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
21,058
107,560
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
12,002
12,002
12,002
12,002
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.
17
Capital commitments
The total amount contracted for but not provided in the financial statements was £NIL (2023: £NIL).
18
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
11,700
11,700
Between two and five years
15,600
27,300
27,300
39,000
RAMSTEEL TUBES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
19
Related party transactions
Summary of transactions with group companies
The company purchased goods and services from Kromat Trading Limited (a wholly owned subsidiary of South West Structurals Limited) during the year amounting to £85,823 (2023: £463,211). The company made sales to Kromat Trading Limited during the year amounting to £179,207 (2023: £Nil). At 31st March 2024 Kromat Trading Limited owed Ramsteel a balance of £10,019 (2023:173,438).
The company paid loan interest during the year to Tubetrade PLC (the immediate parent company of Ramsteel Tubes Limited) of £302,490 (2023: £50,703). At 31st March 2024 the total amount owed to Tubetrade plc amounted to £1,188,698 (2023: £2,441,355).
The company paid interest on loans from South West Structurals Limited (the ultimate parent company of Ramsteel Tubes Limited) during the year of £101,995 (2023: £204,002). There was also a management charge paid to South West Structurals Ltd of £57,500 (2023: £1,329,000). At 31 March 2024 the amount owing to South West Structurals Limited was £2,255,866 (2023: £2,460,002).
20
Directors' transactions
Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Mr PR Wilson - Loan
-
35,000
(15,000)
20,000
35,000
(15,000)
20,000
21
Ultimate controlling party
The company's immediate parent company is Tubetrade PLC, a company incorporated in England and Wales. The registered office of Tubetrade PLC is: Salisbury House, London Wall, London, England, EC2M 5PS.
The company's ultimate parent company and both the largest and smallest group of undertakings for which group accounts are prepared is South West Structurals Limited, a company incorporated in England and Wales. The registered office of South West Structurals Limited is: Salisbury House, London Wall, London, England, EC2M 5PS.
The ultimate controlling party is Mr S J Knowles, a director of the company.
RAMSTEEL TUBES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
22
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
18,305
46,336
Adjustments for:
Taxation charged
22,894
14,587
Finance costs
404,582
457,155
Gain on disposal of tangible fixed assets
-
(25,260)
Depreciation and impairment of tangible fixed assets
22,355
23,401
Movements in working capital:
Decrease in stocks
656,409
3,450,538
Decrease in debtors
1,288,721
5,665,856
Decrease in creditors
(1,832,560)
(7,518,249)
Cash generated from operations
580,706
2,114,364
Difference
1
-
Per cash flow statement page
580,707
2,114,364
23
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
373,138
82,114
455,252
Borrowings excluding overdrafts
(87,508)
87,508
-
285,630
169,622
455,252
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