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Registration number: 02412308

Sherwood Stainless And Aluminium Ltd

Annual Report and Consolidated Financial Statements

for the Year Ended 31 March 2024

 

Sherwood Stainless And Aluminium Ltd

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 8

Consolidated Statement of Comprehensive Income

9

Consolidated Statement of Comprehensive Income

10

Consolidated Statement of Financial Position

11

Statement of Financial Position

12

Consolidated Statement of Changes in Equity

13 to 14

Statement of Changes in Equity

15

Consolidated Statement of Cash Flows

16

Statement of Cash Flows

17

Notes to the Financial Statements

18 to 34

 

Sherwood Stainless And Aluminium Ltd

Company Information

Directors

Mr P Thurston

Mr T Franklin

Company secretary

Miss K Powis

Registered office

The Science Park
Mammoth Drive Stafford Road
Wolverhampton
West Midlands
WV10 9TF

Auditors

Jordan & Company
Chartered Accountants and Statutory Auditor
Knighton House
62 Hagley Road
Stourbridge
West Midlands
DY8 1QD

 

Sherwood Stainless And Aluminium Ltd

Strategic Report for the Year Ended 31 March 2024

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

Principal activity

The principal activity of the group is that of processing and distributing stainless steel and aluminium, with customers across a variety of business sectors in Europe and worldwide.

Fair review of the business

The directors are pleased to report strong results in a very difficult market. This has been a remarkably difficult business environment in which to operate and despite this, the business continues to deliver profitable growth, to innovate and to create new opportunities for value creation. The high interest rates, and cost increases in virtually every area, including employment, energy, and services, has exerted significant pressure on business costs. On the demand side, the year included the UK in technical recession and poor demand in most market sectors, particularly in construction. London Metal Exchange aluminium and steel prices were flat throughout the year providing stability in material margins, although spiralling container prices have disrupted global supply chains and costs, leading to uncertainty.

However, despite all the cost pressures and the negative market, the Company has laid the foundation for future cost reduction, growth and productivity. The new ERP system is now in the final trial phase and will go live in 2024, underpinning productivity and efficiency in every area of the business. This focus on productivity has been a major theme and can be directly seen in the volume of material being processed increasing throughout the year, while temporary labour has fallen. The focus is not just on costs though, and investment in people, specifically in building a stronger commercial capability, has led to new customer discovery and growth despite the challenging market.

The director’s and leadership are committed to sustainability and have demonstrated this with major investments in solar generation and machine efficiency. The business became a net generator of renewable electricity, aligning its environmental passion with cost and productivity gains. The commitment to sustainability, service and quality, are embodied with the development of a powder coating paint line, the most significant investment for the company in the last 20 years. This paint line sets a new standard within the industry and provides the business with a platform for growth and value creation providing a complete product offering to customers, which now includes surface finishing. The new line was commissioned in March 2024.

Productivity gains, cost reduction, renewable energy generation, strengthened commercial capability, digitalisation and powder coating paint line provide an ability to drive business transformation in the coming years. That the business can deliver changes of such magnitude, in such a difficult market, whilst sustaining profitability, with a minimal extension of borrowing, is a testament to a strong leadership team and a source of considerable pride.

Approved and authorised by the Board on 10 July 2024 and signed on its behalf by:
 

.........................................
Miss K Powis
Company secretary

 

Sherwood Stainless And Aluminium Ltd

Directors' Report for the Year Ended 31 March 2024

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

Directors of the group

The directors who held office during the year were as follows:

Mr P Thurston

Mr T Franklin

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Reappointment of auditors

The auditors Jordan & Company are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved and authorised by the Board on 10 July 2024 and signed on its behalf by:
 

.........................................
Miss K Powis
Company secretary

 

Sherwood Stainless And Aluminium Ltd

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements 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; and

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

 

Sherwood Stainless And Aluminium Ltd

Independent Auditor's Report to the Members of Sherwood Stainless And Aluminium Ltd

Opinion

We have audited the financial statements of Sherwood Stainless And Aluminium Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024, which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Statement of Financial Position, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2024 and of the group's 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Sherwood Stainless And Aluminium Ltd

Independent Auditor's Report to the Members of Sherwood Stainless And Aluminium Ltd

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and 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 our 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 and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

the parent company financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 4], 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 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.

 

Sherwood Stainless And Aluminium Ltd

Independent Auditor's Report to the Members of Sherwood Stainless And Aluminium Ltd

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

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.

We gained knowledge and understanding of the legal and regulatory framework which the company must adhere to in line with government and industry standards. An examination of company procedures and operations were undertaken in order to evaluate the risk of acting in contrast to these statutes. Such laws and regulations include: Companies Act 2006, Financial Reporting Standards and Generally Accepted Accounting Practice.

Applicable audit tests were tailored to mitigate the risk of material misrepresentation by using system interrogation methods which recognises the fact fraud is an act of deliberate concealment and deception. Audit tests undertaken included testing the accounting system for completeness, occurrence, accuracy and cut-off. Account balances were tested for existence and calculations reviewed. Sufficient and appropriate audit evidence was obtained to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.

We obtained an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.

We also evaluated the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

 

Sherwood Stainless And Aluminium Ltd

Independent Auditor's Report to the Members of Sherwood Stainless And Aluminium Ltd

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
M A Jordan (Senior Statutory Auditor)
For and on behalf of Jordan & Company, Statutory Auditor

Knighton House
62 Hagley Road
Stourbridge
West Midlands
DY8 1QD

10 July 2024

 

Sherwood Stainless And Aluminium Ltd

Consolidated Statement of Comprehensive Income for the Year Ended 31 March 2024

Note

2024
£

2023
£

Turnover

3

37,612,223

42,294,929

Cost of sales

 

(27,592,500)

(33,056,058)

Gross profit

 

10,019,723

9,238,871

Distribution costs

 

(3,359,248)

(3,473,411)

Administrative expenses

 

(4,672,385)

(4,216,146)

Other operating income

4

947

814

Operating profit

6

1,989,037

1,550,128

Other interest receivable and similar income

7

66,667

22,171

Interest payable and similar expenses

8

(356,560)

(226,373)

   

(289,893)

(204,202)

Profit before tax

 

1,699,144

1,345,926

Tax on profit

12

(432,618)

(79,492)

Profit for the financial year

 

1,266,526

1,266,434

Profit/(loss) attributable to:

 

Owners of the company

 

1,266,526

1,266,434

 

Sherwood Stainless And Aluminium Ltd

Consolidated Statement of Comprehensive Income for the Year Ended 31 March 2024

2024
£

2023
£

Profit for the year

1,266,526

1,266,434

Deficit on revaluation of other assets

(1,860)

(1,860)

Total comprehensive income for the year

1,264,666

1,264,574

Total comprehensive income attributable to:

Owners of the company

1,264,666

1,264,574

 

Sherwood Stainless And Aluminium Ltd

(Registration number: 02412308)
Consolidated Statement of Financial Position as at 31 March 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

13

1,065,069

1,205,346

Tangible assets

14

7,499,358

5,838,581

 

8,564,427

7,043,927

Current assets

 

Stocks

16

4,591,090

6,227,665

Debtors

17

6,724,050

6,855,157

Cash at bank and in hand

 

512,555

649,046

 

11,827,695

13,731,868

Creditors: Amounts falling due within one year

19

(7,895,732)

(9,336,582)

Net current assets

 

3,931,963

4,395,286

Total assets less current liabilities

 

12,496,390

11,439,213

Creditors: Amounts falling due after more than one year

19

(1,905,338)

(1,943,655)

Provisions for liabilities

20

(861,814)

(532,846)

Net assets

 

9,729,238

8,962,712

Capital and reserves

 

Called up share capital

22

25,000

25,000

Capital redemption reserve

25,000

25,000

Revaluation reserve

47,914

49,774

Retained earnings

9,631,324

8,862,938

Equity attributable to owners of the company

 

9,729,238

8,962,712

Shareholders' funds

 

9,729,238

8,962,712

Approved and authorised by the Board on 10 July 2024 and signed on its behalf by:
 

Mr P Thurston
Director

Mr T Franklin
Director

 
     
 

Sherwood Stainless And Aluminium Ltd

(Registration number: 02412308)
Statement of Financial Position as at 31 March 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

14

5,613,423

3,977,604

Investments

15

2,633,050

2,633,050

 

8,246,473

6,610,654

Current assets

 

Stocks

16

3,769,708

5,435,132

Debtors

17

5,836,974

6,137,084

Cash at bank and in hand

 

245,813

14,192

 

9,852,495

11,586,408

Creditors: Amounts falling due within one year

19

(6,504,628)

(7,484,430)

Net current assets

 

3,347,867

4,101,978

Total assets less current liabilities

 

11,594,340

10,712,632

Creditors: Amounts falling due after more than one year

19

(1,747,014)

(1,690,532)

Provisions for liabilities

20

(447,500)

(180,000)

Net assets

 

9,399,826

8,842,100

Capital and reserves

 

Called up share capital

22

25,000

25,000

Capital redemption reserve

25,000

25,000

Revaluation reserve

47,914

49,774

Retained earnings

9,301,912

8,742,326

Shareholders' funds

 

9,399,826

8,842,100

The company made a profit after tax for the financial year of £1,057,726 (2023 - profit of £1,271,549).

Approved and authorised by the Board on 10 July 2024 and signed on its behalf by:
 

Mr P Thurston
Director

Mr T Franklin
Director

 
     
 

Sherwood Stainless And Aluminium Ltd

Consolidated Statement of Changes in Equity for the Year Ended 31 March 2024
Equity attributable to the parent company

Share capital
£

Capital redemption reserve
£

Revaluation reserve
£

Retained earnings
£

At 1 April 2023

25,000

25,000

49,774

8,862,938

Profit for the year

-

-

-

1,266,526

Other comprehensive income

-

-

(1,860)

-

Total comprehensive income

-

-

(1,860)

1,266,526

Dividends

-

-

-

(500,000)

Transfers

-

-

-

1,860

At 31 March 2024

25,000

25,000

47,914

9,631,324

Total
£

Total equity
£

At 1 April 2023

8,962,712

8,962,712

Profit for the year

1,266,526

1,266,526

Other comprehensive income

(1,860)

(1,860)

Total comprehensive income

1,264,666

1,264,666

Dividends

(500,000)

(500,000)

Transfers

1,860

1,860

At 31 March 2024

9,729,238

9,729,238

Share capital
£

Capital redemption reserve
£

Revaluation reserve
£

Retained earnings
£

At 1 April 2022

25,000

25,000

51,634

7,594,644

Profit for the year

-

-

-

1,266,434

Other comprehensive income

-

-

(1,860)

-

Total comprehensive income

-

-

(1,860)

1,266,434

Transfers

-

-

-

1,860

At 31 March 2023

25,000

25,000

49,774

8,862,938

 

Sherwood Stainless And Aluminium Ltd

Consolidated Statement of Changes in Equity for the Year Ended 31 March 2024
Equity attributable to the parent company

Total
£

Total equity
£

At 1 April 2022

7,696,278

7,696,278

Profit for the year

1,266,434

1,266,434

Other comprehensive income

(1,860)

(1,860)

Total comprehensive income

1,264,574

1,264,574

Transfers

1,860

1,860

At 31 March 2023

8,962,712

8,962,712

 

Sherwood Stainless And Aluminium Ltd

Statement of Changes in Equity for the Year Ended 31 March 2024

Share capital
£

Capital redemption reserve
£

Revaluation reserve
£

Retained earnings
£

At 1 April 2023

25,000

25,000

49,774

8,742,326

Profit for the year

-

-

-

1,057,726

Other comprehensive income

-

-

(1,860)

-

Total comprehensive income

-

-

(1,860)

1,057,726

Dividends

-

-

-

(500,000)

Transfers

-

-

-

1,860

At 31 March 2024

25,000

25,000

47,914

9,301,912

Total
£

At 1 April 2023

8,842,100

Profit for the year

1,057,726

Other comprehensive income

(1,860)

Total comprehensive income

1,055,866

Dividends

(500,000)

Transfers

1,860

At 31 March 2024

9,399,826

Share capital
£

Capital redemption reserve
£

Revaluation reserve
£

Retained earnings
£

At 1 April 2022

25,000

25,000

51,634

7,468,917

Profit for the year

-

-

-

1,271,549

Other comprehensive income

-

-

(1,860)

-

Total comprehensive income

-

-

(1,860)

1,271,549

Transfers

-

-

-

1,860

At 31 March 2023

25,000

25,000

49,774

8,742,326

Total
£

At 1 April 2022

7,570,551

Profit for the year

1,271,549

Other comprehensive income

(1,860)

Total comprehensive income

1,269,689

Transfers

1,860

At 31 March 2023

8,842,100

 

Sherwood Stainless And Aluminium Ltd

Consolidated Statement of Cash Flows for the Year Ended 31 March 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

1,266,526

1,266,434

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

1,001,017

884,231

Profit on disposal of tangible assets

5

(123,243)

(71,446)

Finance income

(66,667)

(22,171)

Finance costs

356,560

226,373

Corporation tax expense

12

432,618

79,492

 

2,866,811

2,362,913

Working capital adjustments

 

Decrease in stocks

16

1,636,575

2,351,347

Decrease/(increase) in trade debtors

17

105,974

(1,993,824)

Decrease in trade creditors

19

(926,964)

(928,111)

Decrease in deferred income, including government grants

 

(946)

(815)

Cash generated from operations

 

3,681,450

1,791,510

Corporation tax paid

12

(26,650)

(657,508)

Net cash flow from operating activities

 

3,654,800

1,134,002

Cash flows from investing activities

 

Interest received

66,667

22,171

Acquisition of subsidiaries

15

-

(603,000)

Acquisitions of tangible assets

(2,530,812)

(1,204,134)

Proceeds from sale of tangible assets

 

132,539

127,314

Acquisition of intangible assets

13

-

(521,131)

Net cash flows from investing activities

 

(2,331,606)

(2,178,780)

Cash flows from financing activities

 

Interest paid

(356,560)

(226,373)

Proceeds from bank borrowing draw downs

 

(645,904)

990,707

Repayment of bank borrowing

 

(364,234)

(294,911)

Payments to finance lease creditors

 

397,947

264,963

Dividends paid

(500,000)

-

Net cash flows from financing activities

 

(1,468,751)

734,386

Net decrease in cash and cash equivalents

 

(145,557)

(310,392)

Cash and cash equivalents at 1 April

 

613,313

923,705

Cash and cash equivalents at 31 March

 

467,756

613,313

 

Sherwood Stainless And Aluminium Ltd

Statement of Cash Flows for the Year Ended 31 March 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

1,057,726

1,271,549

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

623,827

549,827

Profit on disposal of tangible assets

5

(62,046)

(65,422)

Finance income

(315,415)

(271,838)

Finance costs

287,849

174,450

Income tax expense

12

226,824

26,374

 

1,818,765

1,684,940

Working capital adjustments

 

Decrease in stocks

16

1,665,424

2,948,283

Decrease/(increase) in trade debtors

17

274,977

(194,212)

Decrease in trade creditors

19

(918,888)

(2,541,595)

Cash generated from operations

 

2,840,278

1,897,416

Income taxes received/(paid)

12

65,809

(600,000)

Net cash flow from operating activities

 

2,906,087

1,297,416

Cash flows from investing activities

 

Interest received

315,415

271,838

Acquisition of subsidiaries

15

-

(603,000)

Acquisitions of tangible assets

(2,261,050)

(1,067,584)

Proceeds from sale of tangible assets

 

63,450

83,423

Net cash flows from investing activities

 

(1,882,185)

(1,315,323)

Cash flows from financing activities

 

Interest paid

(287,849)

(174,450)

Proceeds from bank borrowing draw downs

 

(438,739)

783,542

Repayment of other borrowing

 

84,478

(985,367)

Payments to finance lease creditors

 

340,763

309,193

Dividends paid

(500,000)

-

Net cash flows from financing activities

 

(801,347)

(67,082)

Net increase/(decrease) in cash and cash equivalents

 

222,555

(84,989)

Cash and cash equivalents at 1 April

 

(21,541)

63,448

Cash and cash equivalents at 31 March

 

201,014

(21,541)

 

Sherwood Stainless And Aluminium Ltd

Notes to the Financial Statements for the Year Ended 31 March 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
The Science Park
Mammoth Drive Stafford Road
Wolverhampton
West Midlands
WV10 9TF
United Kingdom

These financial statements were authorised for issue by the Board on 10 July 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 March 2024.

No Statement of Comprehensive Income is presented for the company as permitted by section 408 of the Companies Act 2006. The company made a profit after tax for the financial year of £1,057,726 (2023 - profit of £1,271,549).

 

Sherwood Stainless And Aluminium Ltd

Notes to the Financial Statements for the Year Ended 31 March 2024

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

The results of subsidiaries acquired or disposed of during the year are included in the Statement of Comprehensive Income from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.

The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

 

Sherwood Stainless And Aluminium Ltd

Notes to the Financial Statements for the Year Ended 31 March 2024

Tax

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

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

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold property

2% straight line

Long leasehold property

apportioned over 15 year lease on a straight line basis

Plant and machinery

12% straight line, 20% and 25% reducing balance basis

Fixtures and fittings

12% straight line, 20% and 25% reducing balance basis

Motor vehicles

25% straight line and 25% reducing balance basis

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

 

Sherwood Stainless And Aluminium Ltd

Notes to the Financial Statements for the Year Ended 31 March 2024

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Intangible assets

Separately acquired trademarks and licences are shown at historical cost.

Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.

Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

over 10 years

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.

 

Sherwood Stainless And Aluminium Ltd

Notes to the Financial Statements for the Year Ended 31 March 2024

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the statement of comprehensive income over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.

Lease payments are apportioned between finance costs in the statement of comprehensive income and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

 

Sherwood Stainless And Aluminium Ltd

Notes to the Financial Statements for the Year Ended 31 March 2024

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Turnover

The analysis of the group's turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods

37,612,223

42,294,929

4

Other operating income

The analysis of the group's other operating income for the year is as follows:

2024
£

2023
£

Miscellaneous other operating income

947

814

5

Other gains and losses

The analysis of the group's other gains and losses for the year is as follows:

2024
£

2023
£

Gain on disposal of tangible assets

123,243

71,446

 

Sherwood Stainless And Aluminium Ltd

Notes to the Financial Statements for the Year Ended 31 March 2024

6

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

860,739

743,954

Amortisation expense

140,277

140,277

Foreign exchange losses

5,808

189

Operating lease expense - plant and machinery

158,954

147,082

Operating lease expense - other

19,151

37,791

Profit on disposal of property, plant and equipment

(123,243)

(71,446)

7

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

1,252

333

Other finance income

65,415

21,838

66,667

22,171

8

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

163,121

94,087

Interest on obligations under finance leases and hire purchase contracts

43,928

20,206

Interest expense on other finance liabilities

24,297

31,137

Other finance costs

125,214

80,943

356,560

226,373

9

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

6,954,774

6,203,782

Social security costs

510,599

495,694

Other short-term employee benefits

7,791

5,852

Pension costs, defined contribution scheme

207,855

181,219

Other employee expense

99,291

92,955

7,780,310

6,979,502

 

Sherwood Stainless And Aluminium Ltd

Notes to the Financial Statements for the Year Ended 31 March 2024

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Production

125

132

Administration and support

58

47

Distribution

20

14

203

193

10

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

70,477

77,080

Contributions paid to money purchase schemes

-

7,833

70,477

84,913

11

Auditors' remuneration

2024
£

2023
£

Audit of these financial statements

25,250

23,750


 

12

Taxation

Tax charged/(credited) in the consolidated statement of comprehensive income

2024
£

2023
£

Current taxation

UK corporation tax

193,513

101,162

UK corporation tax adjustment to prior periods

(89,863)

(130,582)

103,650

(29,420)

Deferred taxation

Arising from origination and reversal of timing differences

328,968

108,912

Tax expense in the income statement

432,618

79,492

 

Sherwood Stainless And Aluminium Ltd

Notes to the Financial Statements for the Year Ended 31 March 2024

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of 25% (2023 - 19%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

1,699,144

1,345,926

Corporation tax at standard rate

424,786

255,726

Decrease in UK and foreign current tax from adjustment for prior periods

(89,862)

(163,254)

Tax increase/(decrease) from effect of capital allowances and depreciation

64,073

(17,236)

Effect of expense not deductible in determining taxable profit (tax loss)

5,078

4,256

Effect of tax losses

(71,390)

-

Tax increase from changes in tax provisions due to legislation

99,933

-

Total tax charge

432,618

79,492

Deferred tax

Group

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

-

861,814

-

861,814

2023

Asset
£

Liability
£

-

532,846

-

532,846

Company

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

-

447,500

-

447,500

2023

Asset
£

Liability
£

-

180,000

-

180,000

 

Sherwood Stainless And Aluminium Ltd

Notes to the Financial Statements for the Year Ended 31 March 2024

13

Intangible assets

Group

Goodwill
 £

Trademarks, patents and licenses
 £

Total
£

Cost or valuation

At 1 April 2023

1,402,774

4,960

1,407,734

At 31 March 2024

1,402,774

4,960

1,407,734

Amortisation

At 1 April 2023

202,388

-

202,388

Amortisation charge

140,277

-

140,277

At 31 March 2024

342,665

-

342,665

Carrying amount

At 31 March 2024

1,060,109

4,960

1,065,069

At 31 March 2023

1,200,386

4,960

1,205,346

 

Sherwood Stainless And Aluminium Ltd

Notes to the Financial Statements for the Year Ended 31 March 2024

14

Tangible assets

Group

Land and buildings
£

Long leasehold land and buildings
£

Short leasehold land and buildings
£

Fixtures and fittings
£

Cost or valuation

At 1 April 2023

4,962,347

77,359

2,435

1,487,102

Additions

533,722

-

-

286,841

Disposals

-

-

(2,435)

(1,925)

At 31 March 2024

5,496,069

77,359

-

1,772,018

Depreciation

At 1 April 2023

1,175,097

56,826

1,159

1,297,731

Charge for the year

120,596

5,157

49

132,613

Eliminated on disposal

-

-

(1,208)

(521)

At 31 March 2024

1,295,693

61,983

-

1,429,823

Carrying amount

At 31 March 2024

4,200,376

15,376

-

342,195

At 31 March 2023

3,787,250

20,533

1,276

189,371

Plant and machinery
£

Office equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 April 2023

7,123,243

71,213

722,091

14,445,790

Additions

1,439,758

-

270,491

2,530,812

Disposals

(210,239)

(1,648)

(84,267)

(300,514)

At 31 March 2024

8,352,762

69,565

908,315

16,676,088

Depreciation

At 1 April 2023

5,644,399

60,809

371,188

8,607,209

Charge for the year

412,785

2,080

187,459

860,739

Eliminated on disposal

(203,608)

(1,614)

(84,267)

(291,218)

At 31 March 2024

5,853,576

61,275

474,380

9,176,730

Carrying amount

At 31 March 2024

2,499,186

8,290

433,935

7,499,358

At 31 March 2023

1,478,844

10,404

350,903

5,838,581

 

Sherwood Stainless And Aluminium Ltd

Notes to the Financial Statements for the Year Ended 31 March 2024

Included within the net book value of land and buildings above is £4,200,376 (2023 - £3,787,250) in respect of freehold land and buildings, £15,376 (2023 - £20,533) in respect of long leasehold land and buildings and £Nil (2023 - £1,276) in respect of short leasehold land and buildings.
 

Company

Land and buildings
£

Fixtures and fittings
£

Plant and machinery
£

Motor vehicles
 £

Cost or valuation

At 1 April 2023

3,685,812

1,469,761

2,908,071

592,940

Additions

533,722

285,039

1,174,998

267,291

Disposals

-

(1,925)

(72,272)

(84,267)

At 31 March 2024

4,219,534

1,752,875

4,010,797

775,964

Depreciation

At 1 April 2023

998,562

1,288,041

2,066,546

325,831

Charge for the year

95,065

130,363

232,622

165,777

Eliminated on disposal

-

(521)

(72,272)

(84,267)

At 31 March 2024

1,093,627

1,417,883

2,226,896

407,341

Carrying amount

At 31 March 2024

3,125,907

334,992

1,783,901

368,623

At 31 March 2023

2,687,250

181,720

841,525

267,109

Total
£

Cost or valuation

At 1 April 2023

8,656,584

Additions

2,261,050

Disposals

(158,464)

At 31 March 2024

10,759,170

Depreciation

At 1 April 2023

4,678,980

Charge for the year

623,827

Eliminated on disposal

(157,060)

At 31 March 2024

5,145,747

Carrying amount

At 31 March 2024

5,613,423

At 31 March 2023

3,977,604

 

Sherwood Stainless And Aluminium Ltd

Notes to the Financial Statements for the Year Ended 31 March 2024

Included within the net book value of land and buildings above is £3,125,907 (2023 - £2,687,250) in respect of freehold land and buildings.
 

Impairment of non-financial assets

Assets are reviewed for impairment if there is an indication that the carrying value of the asset may have been impaired. Where there are indicators of impairment of individual assets, the Company performs impairment tests based on fair value less costs to sell or a value in use calculation. Where an impairment review is required, the carrying value of the assets is measured against their value in use based on future estimated cash flows, discounted by the appropriate cost of capital, resulting from the use of those assets. Assets are grouped at the lowest level for which there is a separately identifiable cash flow (cash generating unit). An impairment loss is recognised for the amount at which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use.

15

Investments

Group

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

2024

2023

Subsidiary undertakings

Neville Precision Engineering Limited*

Sherwood Stainless and Aluminium Ltd,
The Science Park,
Mammoth Drive,
Wolverhampton,
WV10 9TF

2 ordinary £1 shares

100%

100%

England

UB Plastics Limited*

Centenary Works,
Little Burton West,
Burton on Trent,
Staffordshire,
DE14 1PP

2,450 ordinary £1 shares

50%

50%

England

A&S Holdings Burton Limited*

Centenary Works,
Little Burton West,
Burton on Trent,
Staffordshire,
DE14 1PP

2 ordinary £1 shares

100%

100%

England

 

Sherwood Stainless And Aluminium Ltd

Notes to the Financial Statements for the Year Ended 31 March 2024

* indicates direct investment of the company

Subsidiary undertakings

Neville Precision Engineering Limited

The principal activity of Neville Precision Engineering Limited is complete solutions for the supply of long length CNC.

UB Plastics Limited

The principal activity of UB Plastics Limited is plastic injection moulding company manufacturing specialised products for a diverse range of industries.

A&S Holdings Burton Limited

The principal activity of A&S Holdings Burton Limited is dormant holding company.

Company

2024
£

2023
£

Investments in subsidiaries

2,633,050

2,633,050

Subsidiaries

£

Cost or valuation

At 1 April 2023

2,633,050

Provision

Carrying amount

At 31 March 2024

2,633,050

At 31 March 2023

2,633,050

16

Stocks

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Raw materials and consumables

3,769,708

5,435,132

3,769,708

5,435,132

Work in progress

22,899

43,967

-

-

Other inventories

798,483

748,566

-

-

4,591,090

6,227,665

3,769,708

5,435,132

 

Sherwood Stainless And Aluminium Ltd

Notes to the Financial Statements for the Year Ended 31 March 2024

17

Debtors

   

Group

Company

Current

Note

2024
£

2023
£

2024
£

2023
£

Trade debtors

 

6,172,905

6,169,948

4,874,805

4,815,103

Amounts owed by related parties

-

-

415,275

642,775

Other debtors

 

122,250

115,437

122,248

115,435

Prepayments

 

178,895

294,639

174,646

288,638

Corporation tax asset

12

250,000

275,133

250,000

275,133

   

6,724,050

6,855,157

5,836,974

6,137,084

18

Cash and cash equivalents

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Cash on hand

1,083

1,288

1,000

1,000

Cash at bank

511,472

647,758

244,813

13,192

512,555

649,046

245,813

14,192

Bank overdrafts

(44,799)

(35,733)

(44,799)

(35,733)

Cash and cash equivalents in statement of cash flows

467,756

613,313

201,014

(21,541)

19

Creditors

   

Group

Company

Note

2024
£

2023
£

2024
£

2023
£

Due within one year

 

Loans and borrowings

23

1,360,268

1,925,832

1,003,872

1,064,786

Trade creditors

 

4,744,612

6,001,777

4,170,442

5,299,830

Amounts due to related parties

492,711

151,000

492,711

151,000

Social security and other taxes

 

742,115

701,320

580,727

584,937

Outstanding defined contribution pension costs

 

35,269

33,611

35,269

33,611

Other payables

 

106,806

113,533

100,000

100,000

Accruals

 

269,680

316,916

121,607

250,266

Corporation tax liability

12

143,513

91,646

-

-

Deferred income

 

758

947

-

-

 

7,895,732

9,336,582

6,504,628

7,484,430

 

Sherwood Stainless And Aluminium Ltd

Notes to the Financial Statements for the Year Ended 31 March 2024

   

Group

Company

Note

2024
£

2023
£

2024
£

2023
£

Due after one year

 

Loans and borrowings

23

1,902,307

1,939,867

1,747,014

1,690,532

Deferred income

 

3,031

3,788

-

-

 

1,905,338

1,943,655

1,747,014

1,690,532

20

Provisions for liabilities

Group

Deferred tax
£

Total
£

At 1 April 2023

532,846

532,846

Increase (decrease) in existing provisions

328,968

328,968

At 31 March 2024

861,814

861,814

Company

Deferred tax
£

Total
£

At 1 April 2023

180,000

180,000

Increase (decrease) in existing provisions

267,500

267,500

At 31 March 2024

447,500

447,500

21

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £207,855 (2023 - £181,219).

Contributions totalling £35,269 (2023 - £33,611) were payable to the scheme at the end of the year and are included in creditors.

22

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

25,000

25,000

25,000

25,000

       
 

Sherwood Stainless And Aluminium Ltd

Notes to the Financial Statements for the Year Ended 31 March 2024

23

Loans and borrowings

Non-current loans and borrowings

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Bank borrowings

1,096,359

1,427,410

1,096,359

1,285,098

Hire purchase contracts

805,948

512,457

650,655

405,434

1,902,307

1,939,867

1,747,014

1,690,532

Current loans and borrowings

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Bank borrowings

198,444

513,297

198,444

448,444

Bank overdrafts

44,799

35,733

44,799

35,733

Hire purchase contracts

317,929

213,472

203,277

107,735

Other borrowings

799,096

1,163,330

557,352

472,874

1,360,268

1,925,832

1,003,872

1,064,786