Caseware UK (AP4) 2023.0.135 2023.0.135 2023-03-0189falsetruetruetruetruefalseNo description of principal activity88true 04707053 2023-03-01 2024-02-29 04707053 2022-03-01 2023-02-28 04707053 2024-02-29 04707053 2023-02-28 04707053 2022-03-01 04707053 c:Director1 2023-03-01 2024-02-29 04707053 c:Director1 2024-02-29 04707053 c:Director2 2023-03-01 2024-02-29 04707053 c:Director2 2024-02-29 04707053 c:Director3 2023-03-01 2024-02-29 04707053 c:Director4 2023-03-01 2024-02-29 04707053 c:Director5 2023-03-01 2024-02-29 04707053 c:Director5 2024-02-29 04707053 c:RegisteredOffice 2023-03-01 2024-02-29 04707053 c:Agent1 2023-03-01 2024-02-29 04707053 d:PlantMachinery 2023-03-01 2024-02-29 04707053 d:PlantMachinery 2024-02-29 04707053 d:PlantMachinery 2023-02-28 04707053 d:PlantMachinery d:OwnedOrFreeholdAssets 2023-03-01 2024-02-29 04707053 d:MotorVehicles 2023-03-01 2024-02-29 04707053 d:MotorVehicles 2024-02-29 04707053 d:MotorVehicles 2023-02-28 04707053 d:MotorVehicles d:OwnedOrFreeholdAssets 2023-03-01 2024-02-29 04707053 d:OwnedOrFreeholdAssets 2023-03-01 2024-02-29 04707053 d:CurrentFinancialInstruments 2024-02-29 04707053 d:CurrentFinancialInstruments 2023-02-28 04707053 d:CurrentFinancialInstruments 1 2024-02-29 04707053 d:CurrentFinancialInstruments 1 2023-02-28 04707053 d:Non-currentFinancialInstruments 2024-02-29 04707053 d:Non-currentFinancialInstruments 2023-02-28 04707053 d:CurrentFinancialInstruments d:WithinOneYear 2024-02-29 04707053 d:CurrentFinancialInstruments d:WithinOneYear 2023-02-28 04707053 d:Non-currentFinancialInstruments d:AfterOneYear 2024-02-29 04707053 d:Non-currentFinancialInstruments d:AfterOneYear 2023-02-28 04707053 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2024-02-29 04707053 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2023-02-28 04707053 f:UnitedKingdom 2023-03-01 2024-02-29 04707053 f:UnitedKingdom 2022-03-01 2023-02-28 04707053 f:RestEuropeOutsideUK 2023-03-01 2024-02-29 04707053 f:RestEuropeOutsideUK 2022-03-01 2023-02-28 04707053 d:UKTax 2023-03-01 2024-02-29 04707053 d:UKTax 2022-03-01 2023-02-28 04707053 d:ShareCapital 2024-02-29 04707053 d:ShareCapital 2023-02-28 04707053 d:RetainedEarningsAccumulatedLosses 2023-03-01 2024-02-29 04707053 d:RetainedEarningsAccumulatedLosses 2024-02-29 04707053 d:RetainedEarningsAccumulatedLosses 2022-03-01 2023-02-28 04707053 d:RetainedEarningsAccumulatedLosses 2023-02-28 04707053 d:RetainedEarningsAccumulatedLosses 2022-03-01 04707053 c:OrdinaryShareClass1 2023-03-01 2024-02-29 04707053 c:OrdinaryShareClass1 2024-02-29 04707053 c:FRS102 2023-03-01 2024-02-29 04707053 c:Audited 2023-03-01 2024-02-29 04707053 c:FullAccounts 2023-03-01 2024-02-29 04707053 c:PrivateLimitedCompanyLtd 2023-03-01 2024-02-29 04707053 d:WithinOneYear 2024-02-29 04707053 d:WithinOneYear 2023-02-28 04707053 d:BetweenOneFiveYears 2024-02-29 04707053 d:BetweenOneFiveYears 2023-02-28 04707053 d:HirePurchaseContracts d:WithinOneYear 2024-02-29 04707053 d:HirePurchaseContracts d:WithinOneYear 2023-02-28 04707053 d:HirePurchaseContracts d:BetweenOneFiveYears 2024-02-29 04707053 d:HirePurchaseContracts d:BetweenOneFiveYears 2023-02-28 04707053 d:HirePurchaseContracts d:MoreThanFiveYears 2024-02-29 04707053 d:HirePurchaseContracts d:MoreThanFiveYears 2023-02-28 04707053 7 2023-03-01 2024-02-29 04707053 d:AcceleratedTaxDepreciationDeferredTax 2024-02-29 04707053 d:AcceleratedTaxDepreciationDeferredTax 2023-02-28 04707053 d:TaxLossesCarry-forwardsDeferredTax 2024-02-29 04707053 d:TaxLossesCarry-forwardsDeferredTax 2023-02-28 04707053 d:PlantMachinery d:LeasedAssetsHeldAsLessee 2024-02-29 04707053 d:PlantMachinery d:LeasedAssetsHeldAsLessee 2023-02-28 04707053 d:MotorVehicles d:LeasedAssetsHeldAsLessee 2024-02-29 04707053 d:MotorVehicles d:LeasedAssetsHeldAsLessee 2023-02-28 04707053 d:LeasedAssetsHeldAsLessee 2024-02-29 04707053 d:LeasedAssetsHeldAsLessee 2023-02-28 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 04707053









Northpoint Limited









Annual Report and Financial Statements

for the year ended 29 February 2024

 
Northpoint Limited
 
 
Company Information


Directors
P Butterworth 
P Dawson (appointed 27 March 2024)
A Holt 




Registered number
04707053



Registered office
Globe Lane

Dukinfield

Cheshire

SK16 4NY




Independent auditors
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors

3 Stockport Exchange

Stockport

SK1 3GG




Bankers
HSBC Bank PLC
4 Hardman Square

Spinningfields

Manchester

M3 3EB





 
Northpoint Limited
 

Contents



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Statement of Comprehensive Income
 
9
Balance Sheet
 
10
Statement of Changes in Equity
 
11
Notes to the Financial Statements
 
12 - 27


 
Northpoint Limited
 
 
Strategic report
for the year ended 29 February 2024

Business review
 
The Company achieved a profit after tax totalling £524k in the year ended 29 February 2024 (2023: £222k), ahead of the  profits forecast in our realistic budget.
The fence coating and pipe coating markets remained challenging throughout the year, but we continued to secure good work in these sectors. All divisions performed well and activity levels ultimately remained very good during the period.
Distribution expenses decreased by £15k and administrative expenses are £373k higher than in the prior year, mainly as a result of inflationary increases in the various cost centres that are included therein. Although prices have reduced from their highest levels, energy costs are still significantly higher for Northpoint moving into our 28 February 2025 year-end. 
Northpoint has remained profitable in the current year 2024/25, up to & including the date of this report.

Principal risks and uncertainties
 
The Company manages risk mainly through acquiring new customers.
We are constantly researching and developing new coating applications in order to best serve our existing and new customers. All Directors take an active role in this respect.
We aim to protect the cashflows generated by payments made by our customers. This is done principally by reviewing up to date financial information applicable to each customer and in the majority of cases ensuring we have full credit insurance cover against the balances owed to Northpoint by them.
Over many years we have invested heavily in our Plant and Equipment. We aim to deliver coated material back to our customers on time, and it is therefore very important that we maintain our Plant and Equipment to a very high standard.

Financial key performance indicators
 
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the Company as a whole, namely, turnover, operating profits and net assets.
In challenging markets, our Turnover has increased by £864k, from £7.642m to £8.506m. Operating profit has increased by £443k from £343k to £786k, mainly due to the increase in Gross Profit arising from low energy costs and higher turnover.
Profit before taxation has increased by £411k, from £266k to £677k.
The Net assets of the Company have increased by £204k, from £1.835m to £2.039m.

Financial Risk Management Objectives and Policies
 
The Company’s principal financial instruments continue to be invoice discounting, trade creditors, hire purchase and bank loans. The main purpose of these instruments is to raise funds for and to finance the Company and Group’s operations.
The Directors feel that the key financial risk management for the Company is best served by the monthly review of management accounts encompassing the sales reports, cash flow, bank and debtor positions, and stock levels.

Page 1

 
Northpoint Limited
 

Strategic report (continued)
for the year ended 29 February 2024


This report was approved by the board and signed on its behalf.


A Holt
Director

Date: 16 August 2024

Page 2

 
Northpoint Limited
 
 
 
Directors' report
for the year ended 29 February 2024

The directors present their report and the financial statements for the year ended 29 February 2024.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, the directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £524 thousand (2023 -£222 thousand).

Dividends paid during the year amounted to £320 thousand (2023: £180 thousand).
The directors do not recommend the payment of a final dividend.

Directors

The directors who served during the year were:

G P Marshall (resigned 27 March 2024)
S A Quiligotti (resigned 27 March 2024)
P Butterworth 
A Holt 

Page 3

 
Northpoint Limited
 
 
 
Directors' report (continued)
for the year ended 29 February 2024

Future developments

The business remains well set to benefit from its diverse and solid customer base which yields regular repeat custom from its low cost, strategically well positioned manufacturing base just outside Manchester.
We will continue to bid for profitable business using our available production capacity. Any additional business is added to a firm and profitable core business which does not require substantial capital expenditure to meet significant extra demand.
The Directors consider the Company to be in a good financial position and will continue to work on our core activities.

Research and development activities

The Company continues to invest in research and development with the purpose of developing new products for the powder coating market.

Disclosure of information to auditors

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsHurst Accountants Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 


A Holt
Director

Date: 16 August 2024

Page 4

 
Northpoint Limited
 
 
 
Independent Auditors' Report to the Members of Northpoint Limited
 

Opinion


We have audited the financial statements of Northpoint Limited (the 'company') for the year ended 29 February 2024, which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 29 February 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our auditors' 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.


Page 5

 
Northpoint Limited
 
 
 
Independent Auditors' Report to the Members of Northpoint Limited (continued)


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the strategic report and the 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.


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 directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the directors' responsibilities statement set out on page 3, 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.


Page 6

 
Northpoint Limited
 
 
 
Independent Auditors' Report to the Members of Northpoint Limited (continued)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' 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.


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

Identifying and assessing potential risks related to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
• The nature of the industry and sector in which the company operates; the control environment and business     performance including key drivers for directors' remuneration, bonus levels and performance targets.
• The outcome of enquiries of management, including whether management  was aware of any instances of non-   compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged   fraud. 
• Supporting documentation relating to the Company's policies and procedures for:
    - Identifying, evaluating, and complying with laws and regulations
    - Detecting and responding to the risks of fraud
• The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
• The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the    financial statements and any potential indicators of fraud.
• The legal and regulatory framework in which the Company operates, particularly those laws and regulations which    have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or    which had a fundamental effect on the operations of the Company, including General Data Protection requirements,   and Anti-bribery and Corruption.
Audit response to risks identified
Our procedures to respond to the risks identified included the following:
• Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with    the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
• Discussions with management, including consideration of known or suspected instances of non-compliance with    laws and regulations and fraud.
• Evaluation of the operating effectiveness of management’s controls designed to prevent and detect irregularities.
• Enquiring of management about any actual and potential litigation and claims.
• Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of    material misstatement due to fraud.
 
Page 7

 
Northpoint Limited
 
 
 
Independent Auditors' Report to the Members of Northpoint Limited (continued)



We have also considered the risk of fraud through management override of controls by:
• Tesing the appropriateness of journal entries and other adjustments. We have used data analytics software to   identify accounting transactions which pose a heightened risk of material misstatement, whether due to fraud or                  error.
• Challenging assumptions made by management in their significant accounting estimates, and assessing whether the    judgements made in making accounting estimates are indicative of a potential bias; and
• Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of    business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them.  Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.


Use of our report
 

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our 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 auditors' 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.





Anthony Woodings (Senior Statutory Auditor)
for and on behalf of
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors
3 Stockport Exchange
Stockport
SK1 3GG

16 August 2024
Page 8

 
Northpoint Limited
 
 
Statement of comprehensive income
for the year ended 29 February 2024

2024
2023
Note
£000
£000

  

Turnover
 4 
8,506
7,642

Cost of sales
  
(5,209)
(5,146)

Gross profit
  
3,297
2,496

Distribution costs
  
(536)
(551)

Administrative expenses
  
(1,975)
(1,602)

Operating profit
 5 
786
343

Interest payable and similar expenses
 9 
(109)
(77)

Profit before tax
  
677
266

Tax on profit
 10 
(153)
(44)

Profit for the financial year
  
524
222

There was no other comprehensive income for 2024 (2023: £NIL).

The notes on pages 12 to 27 form part of these financial statements.

Page 9

 
Northpoint Limited
Registered number: 04707053

Balance sheet
as at 29 February 2024

29 February
28 February
2024
2023
Note
£000
£000

Fixed assets
  

Tangible assets
 12 
650
722

Current assets
  

Stocks
 13 
363
328

Debtors: amounts falling due within one year
 14 
4,514
4,483

Cash at bank and in hand
 15 
29
55

  
4,906
4,866

Creditors: amounts falling due within one year
 16 
(3,143)
(3,168)

Net current assets
  
 
 
1,763
 
 
1,698

Total assets less current liabilities
  
2,413
2,420

Creditors: amounts falling due after more than one year
 17 
(270)
(430)

Provisions for liabilities
  

Deferred tax
 20 
(104)
(155)

Net assets
  
2,039
1,835


Capital and reserves
  

Called up share capital 
 21 
-
-

Profit and loss account
 22 
2,039
1,835

  
2,039
1,835


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




A Holt
Director

Date: 16 August 2024

The notes on pages 12 to 27 form part of these financial statements.

Page 10

 
Northpoint Limited
 

Statement of changes in equity
for the year ended 29 February 2024


Profit and loss account
Total equity

£000
£000


At 1 March 2022
1,793
1,793


Comprehensive income for the year

Profit for the year
222
222
Total comprehensive income for the year
222
222


Contributions by and distributions to owners

Dividends: Equity capital
(180)
(180)


Total transactions with owners
(180)
(180)



At 1 March 2023
1,835
1,835


Comprehensive income for the year

Profit for the year
524
524
Total comprehensive income for the year
524
524


Contributions by and distributions to owners

Dividends: Equity capital
(320)
(320)


Total transactions with owners
(320)
(320)


At 29 February 2024
2,039
2,039


The notes on pages 12 to 27 form part of these financial statements.

Page 11

 
Northpoint Limited
 
 
 
Notes to the financial statements
for the year ended 29 February 2024

1.


General information

Northpoint Limited is a private company limited by share capital, incorporated in England. The address of the registered office and principal place of business is Globe Lane, Dukinfield, Cheshire, SK16 4UY.  The company's registered number is 04707053.  
The nature of the company's operations and its principal activity is the powder coating of fences and pipes.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).
The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Northpoint Group Limited as at 29 February 2024 and these financial statements may be obtained from Registrar of Companies, Companies House, Crown Way, Cardiff, CF4 3UZ.

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. 
Revenue from coating services is recognised in line with the coating service being performed, which is when the amount of revenue can be measured reliably and it is probable that the company will receive the consideration due, and the associated costs incurred can be measured reliably.

 
2.4

Operating leases: the company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Page 12

 
Northpoint Limited
 
 
 
Notes to the financial statements
for the year ended 29 February 2024

2.Accounting policies (continued)

 
2.5

Research and development

Research and development costs are written off in the period in which they are incurred.

 
2.6

Finance costs

Finance costs are charged to the statement of comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount.

 
2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.8

Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 13

 
Northpoint Limited
 
 
 
Notes to the financial statements
for the year ended 29 February 2024

2.Accounting policies (continued)

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line or reducing balance method.

Depreciation is provided on the following basis:

Plant and machinery
-
15% - 33% reducing balance
Motor vehicles
-
20% - 33% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.11

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. 

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.13

Cash

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. 

Page 14

 
Northpoint Limited
 
 
 
Notes to the financial statements
for the year ended 29 February 2024

2.Accounting policies (continued)

 
2.14

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.15

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

 
2.16

Financial instruments

The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date. 
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
 
Page 15

 
Northpoint Limited
 
 
 
Notes to the financial statements
for the year ended 29 February 2024

2.Accounting policies (continued)


2.16
Financial instruments (continued)


Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the company will continue to recognise the value of the portion of the risks and rewards retained.

 
2.17

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make judgements and estimates that affect amounts recognised for assets and liabilities at the reporting date and the amounts of revenue and expenses incurred during the reporting period. Actual outcomes may differ from these judgements, estimates and assumptions. 
The directors believe that judgements, estimates and assumptions do not have a significant risk of causing a material difference to the carrying amounts of the assets and liabilities within the next financial year.


4.


Turnover

The whole of the turnover is attributable to the coating of fences and pipes.

Analysis of turnover by country of destination:

2024
2023
£000
£000

United Kingdom
8,439
7,295

Rest of Europe
67
347

8,506
7,642


Page 16

 
Northpoint Limited
 
 
 
Notes to the financial statements
for the year ended 29 February 2024

5.


Operating profit

The operating profit is stated after charging:

2024
2023
£000
£000

Depreciation of tangible fixed assets - owned
106
88

Depreciation of tangible fixed assets - held under finance lease
56
77

Operating lease rentals - land and buildings
86
86

Other operating lease rentals
155
139

Defined contribution pension costs
138
119


6.


Auditors' remuneration

During the year, the company obtained the following services from the company's auditors:


2024
2023
£000
£000

Fees payable to the company's auditors for the audit of the company's financial statements

15
15

The company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent company.


7.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£000
£000

Wages and salaries
3,110
2,800

Social security costs
258
227

Cost of defined contribution scheme
138
119

3,506
3,146


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Production
77
76



Management
12
12

89
88

Page 17

 
Northpoint Limited
 
 
 
Notes to the financial statements
for the year ended 29 February 2024

8.


Directors' remuneration

2024
2023
£000
£000

Directors' emoluments
348
291

Company contributions to defined contribution pension schemes
75
63

423
354


During the year retirement benefits were accruing to 4 directors (2023 -4) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £110 thousand (2023 - £102 thousand).
The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £42 thousand (2023 - £42 thousand).


9.


Interest payable and similar expenses

2024
2023
£000
£000


Bank interest payable
32
21

Finance leases and hire purchase contracts
7
9

Other interest payable
70
47

109
77


10.


Taxation


2024
2023
£000
£000

Corporation tax


Current tax on profits for the year
204
15


Total current tax
204
15

Deferred tax


Origination and reversal of timing differences
(51)
29

Total deferred tax
(51)
29


Taxation on profit on ordinary activities
153
44
Page 18

 
Northpoint Limited
 
 
 
Notes to the financial statements
for the year ended 29 February 2024
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 -lower than) the standard rate of corporation tax in the UK of 24.5% (2023 -19%). The differences are explained below:

2024
2023
£000
£000


Profit on ordinary activities before tax
677
266


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 24.5% (2023 -19%)
166
51

Effects of:


Expenses not deductible for tax purposes
12
3

Adjustment in research and development tax credit leading to a decrease in the tax charge
(15)
(15)

Utilisation of tax losses
-
(13)

Changes in provisions leading to an increase/(decrease) in the tax charge
(2)
(3)

Other differences leading to an increase/(decrease) in the tax charge
(7)
-

Group relief
-
(6)

Change in deferred tax rate
(1)
27

Total tax charge for the year
153
44

From 1 April 2023 the main rate of corporation tax increased to 25%. The 24.5% rate used above reflects 11 months of the new rate and 1 month of the previous rate of 19%.


11.


Dividends

29 February
28 February
2024
2023
£000
£000


Dividends paid on equity capital
320
180

Page 19

 
Northpoint Limited
 
 
 
Notes to the financial statements
for the year ended 29 February 2024

12.


Tangible fixed assets







Plant and machinery
Motor vehicles
Total

£000
£000
£000



Cost or valuation


At 1 March 2023
2,414
244
2,658


Additions
90
-
90



At 29 February 2024

2,504
244
2,748



Depreciation


At 1 March 2023
1,834
102
1,936


Charge for the year
119
43
162



At 29 February 2024

1,953
145
2,098



Net book value



At 29 February 2024
551
99
650



At 28 February 2023
580
142
722

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


29 February
28 February
2024
2023
£000
£000



Plant and machinery
99
167

Motor vehicles
68
137

167
304

Page 20

 
Northpoint Limited
 
 
 
Notes to the financial statements
for the year ended 29 February 2024

13.


Stocks

29 February
28 February
2024
2023
£000
£000

Raw materials and consumables
310
302

Finished goods and goods for resale
53
26

363
328


The carrying value of stocks are stated net of impairment losses totalling £28 thousand (2023 - £29 thousand). 


14.


Debtors

29 February
28 February
2024
2023
£000
£000


Trade debtors
1,520
1,549

Amounts owed by group undertakings
2,813
2,813

Other debtors
1
-

Prepayments and accrued income
180
121

4,514
4,483


Impairment losses in relation to debtors totalling £15 thousand were accounted for in administration expenses during the year ended 29 February 2024 (2023: Reversal of previous impairment losses recognised in relation to debtors totalling £14 thousand).


15.


Cash and cash equivalents

29 February
28 February
2024
2023
£000
£000

Cash at bank and in hand
29
55


Page 21

 
Northpoint Limited
 
 
 
Notes to the financial statements
for the year ended 29 February 2024

16.


Creditors: Amounts falling due within one year

29 February
28 February
2024
2023
£000
£000

Bank loans
96
96

Trade creditors
704
619

Amounts owed to group undertakings
959
978

Corporation tax
204
15

Other taxation and social security
245
244

Obligations under finance lease and hire purchase contracts
63
86

Invoice discounting advances
633
989

Other creditors
13
36

Accruals and deferred income
226
105

3,143
3,168


The Bank loan agreement was made under the Coronavirus Business Interruption Loan Scheme ('CBILS'). The loan is secured by a guarantee from a director (limited to £48 thousand  in total) and under the CBILS, the Secretary of State for Business, Energy, Industrial Strategy has agreed to provide the Bank with a Partial Guarantee. The Partial Guarantee is given to the Bank and not to the Company and the Company remains liable for all sums payable under the CBILS agreement in the event of a default.
Post year-end the CBILS facility was refinanced and replaced with a new 15 year agreement. The new loan facility is held within Northpoint Limited's parent, Esprit Fini Limited, and is secured over the freehold property of Esprit Fini Limited.
Invoice discounting balances are secured by way of floating charge on the property or undertaking of the company.
Obligations under finance lease and hire purchase contracts are secured over the assets to which they relate.

Page 22

 
Northpoint Limited
 
 
 
Notes to the financial statements
for the year ended 29 February 2024

17.


Creditors: Amounts falling due after more than one year

29 February
28 February
2024
2023
£000
£000

Bank loans
216
312

Net obligations under finance leases and hire purchase contracts
54
118

270
430


The Bank loan agreement was made under the Coronavirus Business Interruption Loan Scheme ('CBILS'). The loan is secured by a guarantee from a director (limited to £48 thousand  in total) and under the CBILS, the Secretary of State for Business, Energy, Industrial Strategy has agreed to provide the Bank with a Partial Guarantee. The Partial Guarantee is given to the Bank and not to the Company and the Company remains liable for all sums payable under the CBILS agreement in the event of a default.
Post year-end the CBILS facility was refinanced and replaced with a new 15 year agreement. The new loan facility is held within Northpoint Limited's parent, Esprit Fini Limited, and is secured over the freehold property of Esprit Fini Limited.
Obligations under finance lease and hire purchase contracts are secured over the assets to which they relate..


18.


Loans


Analysis of the maturity of loans is given below:


29 February
28 February
2024
2023
£000
£000

Amounts falling due within one year

Bank loans
96
96

Amounts falling due 1-2 years

Bank loans
216
312


312
408


The Company entered into a loan agreement in respect of  a loan totalling £480 thousand from HSBC Bank Plc and this was drawn down during March 2021. The lending facility is supported by the Coronavirus Business Interruption Loan Scheme, with interest due during the first 12 months being payable by the UK Government under the terms of the Scheme. An interest rate of 3.99% per annum above Base rate is applicable. Northpoint Limited is repaying the loan by monthly repayments of £8 thousand. The first instalment was due 13 months after the date on which the loan was drawn and the final instalment is due 60 months after the loan was drawn.
Post year-end the loan facility was refinanced and replaced with a new 15 year agreement. The new loan facility is held within Northpoint Limited's parent, Esprit Fini Limited, and is secured over the freehold property of Esprit Fini Limited.

Page 23

 
Northpoint Limited
 
 
 
Notes to the financial statements
for the year ended 29 February 2024

19.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

29 February
28 February
2024
2023
£000
£000


Within one year
63
86

Between 1-5 years
51
52

Over 5 years
3
66

117
204


20.


Deferred taxation






2024


£000






Liability at beginning of year
155


Charged to the profit or loss
(51)



Liability at end of year
104

The provision for deferred taxation is made up as follows:

29 February
28 February
2024
2023
£000
£000


Accelerated capital allowances
143
167

Other timing differences
(39)
(12)

104
155


21.


Share capital

29 February
28 February
2024
2023
£
£
Allotted, called up and fully paid



1 Ordinary share of £1.00
1
1


Page 24

 
Northpoint Limited
 
 
 
Notes to the financial statements
for the year ended 29 February 2024

22.


Reserves

Profit and loss account
Profit and loss account - includes all current period retained profits, net of dividends.


23.


Share based payments

On 18 October 2019, the parent company Northpoint Group Limited granted EMI share options in respect of 4,286 B Ordinary shares to key management personnel of Northpoint Limited.
The share options shall become capable of exercise on the earlier of an Exercise event, the repayment in full of Deferred Consideration associated with the change in ownership of the Group during 2019, and the the fifth anniversary of the date of grant at any time until the date of an exercise event, subject to the option holder having been in continuous employment with the Company.
The share options vested immediately on grant and may be exercised subject to the option holder having been in continuous employment with the Company until the date of an exercise event.
None of the options had been exercised at the balance sheet date.
The fair value of the options has been estimated by management to be immaterial and therefore no equity-settled share-based payment expense has been accounted for in the Statement of Comprehensive Income.

Weighted average exercise price (pence)
2024
Number
2024

Outstanding at the beginning of the year

438

4,286

Granted during the year

-

-

Outstanding at the end of the year
438

4,286





24.


Contingent liabilities

The company is party to a cross guarantee with HSBC to secure borrowings in respect of other companies in the group. At 29 February 2024, the potential liability was £732 thousand (2023: £777 thousand)

Page 25

 
Northpoint Limited
 
 
 
Notes to the financial statements
for the year ended 29 February 2024

25.


Capital commitments


At 29 February 2024 the company had capital commitments as follows:

29 February
28 February
2024
2023
£000
£000


Contracted for but not provided in these financial statements
171
-


26.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £138 thousand (2023 - £119 thousand). Contributions totalling £13 thousand (2023 - £12 thousand) were payable to the fund at the balance sheet date.


27.


Commitments under operating leases

At 29 February 2024 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

29 February
28 February
2024
2023
£000
£000


Not later than 1 year
151
212

Later than 1 year and not later than 5 years
245
203

396
415




28.Directors' personal guarantees

A director has given a personal guarantee totalling £48 thousand in respect of the Bank loan.


29.


Related party transactions

The company has taken advantage of the exemption conferred by Financial Reporting Standard 102 paragraph 33.1A 'Related Party Disclosures' not to disclose transactions with wholly owned group undertakings.
Key management are considered to be the directors of the company.  Directors' remuneration is disclosed at Note 8.

Page 26

 
Northpoint Limited
 
 
 
Notes to the financial statements
for the year ended 29 February 2024

30.


Controlling party

The intermediate parent undertaking is Esprit Fini Limited, a company registered in England & Wales.
The ultimate parent company is Northpoint Group Limited, company number 06272179, incorporated in England & Wales. Northpoint Group Limited produces consolidated financial statements and these are available from Companies House.
The ultimate controlling party is the Northpoint Group Employee Ownership Trust.

Page 27