Company registration number 2187492 (England and Wales)
TUBETRADE PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
TUBETRADE PLC
COMPANY INFORMATION
Directors
Mr PA McCammon
Mr SJ Knowles
Mr GG Watt
Mr PR Wilson
Mr DA Howells
Secretary
Mr PR Campbell
Company number
2187492
Registered office
Salisbury House
London Wall
London
EC2M 5PS
Auditor
Cottons Accountants LLP
The Stables
Church Walk
Daventry
Northamptonshire
UK
NN11 4BL
TUBETRADE PLC
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
11
Statement of cash flows
12
Notes to the financial statements
13 - 26
TUBETRADE PLC
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 associated products.
The company is a 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 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 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with the company's financial performance and do not believe that there is any immediate risk of facilities being withdrawn.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.
TUBETRADE PLC
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
TUBETRADE PLC
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 PA McCammon
Mr SJ Knowles
Mr GG Watt
Mr PR Wilson
Mr DA Howells
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
TUBETRADE PLC
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.
TUBETRADE PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TUBETRADE PLC
- 5 -
Opinion
We have audited the financial statements of Tubetrade PLC (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.
TUBETRADE PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TUBETRADE PLC (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.
TUBETRADE PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TUBETRADE PLC (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 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
TUBETRADE PLC
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
12,520,140
14,201,393
Cost of sales
(9,762,622)
(10,931,658)
Gross profit
2,757,518
3,269,735
Administrative expenses
(2,068,555)
(2,789,453)
Operating profit
4
688,963
480,282
Interest receivable and similar income
7
149,874
254,040
Interest payable and similar expenses
8
(690,842)
(556,741)
Profit before taxation
147,995
177,581
Tax on profit
9
(59,217)
(17,455)
Profit for the financial year
88,778
160,126
The profit and loss account has been prepared on the basis that all operations are continuing operations.
TUBETRADE PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
£
£
Profit for the year
88,778
160,126
Other comprehensive income
-
-
Total comprehensive income for the year
88,778
160,126
TUBETRADE PLC
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
799,386
781,094
Investments
11
240
240
799,626
781,334
Current assets
Stocks
13
4,321,949
5,147,973
Debtors
15
4,119,186
5,544,117
Cash at bank and in hand
641,416
23,893
9,082,551
10,715,983
Creditors: amounts falling due within one year
16
(8,365,994)
(10,069,912)
Net current assets
716,557
646,071
Net assets
1,516,183
1,427,405
Capital and reserves
Called up share capital
20
191,463
191,463
Share premium account
21
105
105
Profit and loss reserves
1,324,615
1,235,837
Total equity
1,516,183
1,427,405
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 2187492 (England and Wales)
TUBETRADE PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2022
191,463
105
1,075,711
1,267,279
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
160,126
160,126
Balance at 31 March 2023
191,463
105
1,235,837
1,427,405
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
88,778
88,778
Balance at 31 March 2024
191,463
105
1,324,615
1,516,183
TUBETRADE PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
2,234,422
1,440,458
Interest paid
(690,842)
(556,741)
Income taxes paid
(34,682)
(33,063)
Net cash inflow from operating activities
1,508,898
850,654
Investing activities
Purchase of tangible fixed assets
(65,740)
(22,790)
Proceeds from disposal of tangible fixed assets
12,500
Interest received
149,874
254,040
Net cash generated from investing activities
96,634
231,250
Financing activities
Repayment of bank loans
(988,009)
(1,110,615)
Net cash used in financing activities
(988,009)
(1,110,615)
Net increase/(decrease) in cash and cash equivalents
617,523
(28,711)
Cash and cash equivalents at beginning of year
23,893
52,604
Cash and cash equivalents at end of year
641,416
23,893
TUBETRADE PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
1
Accounting policies
Company information
Tubetrade PLC 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.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Tubetrade PLC is a wholly owned subsidiary of South West Structurals Limited and the results of Tubetrade PLC are included in the consolidated financial statements of South West Structurals Limited which are available from Salisbury House, London Wall, London, EC2M 5PS.
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.
TUBETRADE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
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
50 years straight line
Fixtures and fittings
7 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 credited or charged to profit or loss.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
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 company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.6
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.
TUBETRADE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.7
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.
1.8
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.
1.9
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.
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.
TUBETRADE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
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.
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.
TUBETRADE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
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.
1.11
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.
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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.
TUBETRADE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
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
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales
12,520,140
14,201,393
2024
2023
£
£
Other revenue
Interest income
149,874
254,040
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
232
(433)
Fees payable to the company's auditor for the audit of the company's financial statements
11,262
8,138
Depreciation of owned tangible fixed assets
47,448
40,564
Profit on disposal of tangible fixed assets
(12,500)
-
Operating lease charges
29,793
9,414
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Sales and administration
4
7
Distribution
3
3
Directors
5
-
Total
12
10
TUBETRADE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
5
Employees
(Continued)
- 19 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
690,486
772,648
Social security costs
115,872
95,387
Pension costs
(37,471)
102,780
768,887
970,815
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
430,987
444,710
Company pension contributions to defined contribution schemes
2,642
97,321
433,629
542,031
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023: 1).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
259,000
315,833
Company pension contributions to defined contribution schemes
1,321
-
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest receivable from group companies
148,619
252,473
Other interest income
1,255
1,567
Total income
149,874
254,040
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
148,619
252,473
TUBETRADE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
375
Interest payable to group undertakings
689,129
556,366
689,129
556,741
Other finance costs:
Other interest
1,713
690,842
556,741
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
56,121
35,748
Deferred tax
Origination and reversal of timing differences
3,096
(18,293)
Total tax charge
59,217
17,455
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
147,995
177,581
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
36,999
33,740
Tax effect of expenses that are not deductible in determining taxable profit
(2,868)
656
Permanent capital allowances in excess of depreciation
(2,372)
(6,690)
Depreciation on assets not qualifying for tax allowances
11,862
7,707
Bad debt provision
335
Pension provision
12,500
Movement in deferred tax
3,096
(18,293)
Taxation charge for the year
59,217
17,455
TUBETRADE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
10
Tangible fixed assets
Freehold land and buildings
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2023
968,906
54,639
65,561
1,089,106
Additions
10,980
9,600
45,160
65,740
Disposals
(28,094)
(28,094)
At 31 March 2024
979,886
64,239
82,627
1,126,752
Depreciation and impairment
At 1 April 2023
222,489
29,329
56,194
308,012
Depreciation charged in the year
14,599
12,192
20,657
47,448
Eliminated in respect of disposals
(28,094)
(28,094)
At 31 March 2024
237,088
41,521
48,757
327,366
Carrying amount
At 31 March 2024
742,798
22,718
33,870
799,386
At 31 March 2023
746,417
25,310
9,367
781,094
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).
2024
2023
£
£
Freehold
742,798
746,416
11
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
12
240
240
12
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
Ramsteel Tubes Limited
Salisbury House, London Wall, London, EC2M 5PS
Ordinary
100.00
TUBETRADE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
13
Stocks
2024
2023
£
£
Finished goods and goods for resale
4,321,949
5,147,973
14
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 £2,835,914 (2023: £3,006,249).
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 £924,436 (2023: £1,877,977).
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,735,590
2,877,679
Other debtors
1,289,022
2,569,979
Prepayments and accrued income
57,530
56,319
4,082,142
5,503,977
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 18)
37,044
40,140
Total debtors
4,119,186
5,544,117
Included within other debtors is an invoice discounting facility with balance at the year end of £601,080 (2023: £NIL). There is a charge recognised against this facility with HSBC which covers all assets of the entity.
TUBETRADE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
988,009
Trade creditors
346,810
170,686
Corporation tax
55,683
34,244
Other taxation and social security
375,648
395,740
Other creditors
7,019,727
7,761,564
Accruals and deferred income
568,126
719,669
8,365,994
10,069,912
17
Loans and overdrafts
2024
2023
£
£
Bank loans and overdrafts
988,009
Payable within one year
988,009
The bank loans and overdraft were secured by a debenture in favour of the company's bankers
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
17,121
8,535
Retirement benefit obligations
-
24,000
Provisions
19,923
7,605
37,044
40,140
2024
Movements in the year:
£
Asset at 1 April 2023
(40,140)
Charge to profit or loss
3,096
Asset at 31 March 2024
(37,044)
TUBETRADE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
(37,471)
102,780
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.
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
190,985
190,985
190,985
190,986
B Ordinary of 10p each
47,746
47,746
478
477
238,731
238,731
191,463
191,463
The company has two classes of ordinary shares, both of 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. Both classes of ordinary shares carry rights to participate in a vote of the members, whether by poll or show of hands.
21
Share premium account
The share premium account represents the excess of amounts subscribed above the nominal value of allotted shares.
22
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
26,292
26,292
Between two and five years
80,172
75,211
In over five years
10,418
106,464
111,921
23
Capital commitments
The total amount contracted for but not provided in the financial statements was £NIL (2023: £NIL).
TUBETRADE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
24
Related party transactions
Summary of transactions with group companies
The company sold goods to Kromat Trading Limited (a wholly owned subsidiary of South West Structurals Limited) during the year amounting to £Nil (2023: £54). It also purchased goods and recharged services during the year amounting to £2,154,396 (2023: £6,655,176). At 31 March 2024 the company owed Kromat Trading Limited a total of £220,898 (2023: was owed £57).
The company received loan interest during the year from Ramsteel Tubes Limited (a wholly owned subsidiary of Tubetrade PLC) of £302,490 (2023: £50,703). At 31 March 2024 the amount due by Ramsteel Tubes Limtied was £1,188,698 (2023: £2,441,355).
The company paid interest on loans and management charges from South West Structurals Limited (the parent company of Tubetrade PLC) during the year of £689,129 (2023: £556,366). At 31 March 2024 the amount owing to South West Structurals Limited was £6,789,329 (2023: £7,461,566).
25
Ultimate controlling party
The company's 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.
26
Directors' transactions
During the year the company provided advances and loans to certain directors. Details are as below:
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Mr PA McCammon - Director Advance
-
50,000
478
-
(30,478)
20,000
Mr DA Howells - Director Advance
-
7,500
9,500
-
(11,500)
5,500
57,500
9,978
-
(41,978)
25,500
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Mr DA Howells - Director Loan
2.00
71,070
-
1,255
(10,000)
62,325
71,070
-
1,255
(10,000)
62,325
TUBETRADE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
27
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
88,778
160,126
Adjustments for:
Taxation charged
59,217
17,455
Finance costs
690,842
556,741
Investment income
(149,874)
(254,040)
Gain on disposal of tangible fixed assets
(12,500)
-
Depreciation and impairment of tangible fixed assets
47,448
40,564
Movements in working capital:
Decrease/(increase) in stocks
826,024
(2,266,834)
Decrease in debtors
1,421,835
4,260,572
Decrease in creditors
(737,348)
(1,074,126)
Cash generated from operations
2,234,422
1,440,458
28
Analysis of changes in net funds/(debt)
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
23,893
617,523
641,416
Borrowings excluding overdrafts
(988,009)
988,009
-
(964,116)
1,605,532
641,416
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