REGISTERED NUMBER: |
STAINLESS STEEL SERVICES LIMITED |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 December 2023 |
REGISTERED NUMBER: |
STAINLESS STEEL SERVICES LIMITED |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 December 2023 |
STAINLESS STEEL SERVICES LIMITED (REGISTERED NUMBER: 02990634) |
Contents of the Financial Statements |
for the year ended 31 December 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 | to | 4 |
Report of the Independent Auditors | 5 | to | 8 |
Statement of Comprehensive Income | 9 |
Statement of Financial Position | 10 |
Statement of Changes in Equity | 11 |
Statement of Cash Flows | 12 |
Notes to the Statement of Cash Flows | 13 | to | 14 |
Notes to the Financial Statements | 15 | to | 27 |
STAINLESS STEEL SERVICES LIMITED |
Company Information |
for the year ended 31 December 2023 |
Directors: |
Secretary: |
Registered office: |
Registered number: |
Auditors: |
Statutory Auditor |
CUBO Birmingham |
3rd Floor |
Two Chamberlain Square |
Birmingham |
West Midlands |
B3 3AX |
Solicitors: |
Imperial House |
31 Temple Street |
Birmingham |
B2 5DB |
STAINLESS STEEL SERVICES LIMITED (REGISTERED NUMBER: 02990634) |
Strategic Report |
for the year ended 31 December 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
Review of business |
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face. |
There has been no change in the principal activity of the company during the year. |
We consider that our key performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover, gross margin and return on capital employed. |
We report a decrease of 23.5% in sales from the level achieved in 2022 and this reflects the market conditions seen across the stainless steel sector as demand dropped from the previous year. Our gross margin increased to 18.1% (2022 17.3%). |
Operating profit achieved during the year was £360,274 (2022 £786,417) and the Return on Capital employed increased from 32.44% in 2022 to 41.99% for 2023. Return on capital employed is calculated as profit on ordinary activities before intercompany management charges, interest and taxation divided by capital employed which constitutes total assets less current liabilities, less cash, plus borrowings (including invoice discounting liabilities). |
Principal risks and uncertainties |
As for many businesses, the environment remains challenging but the market is competitive and the company continues to add value to ensure we are able to maximize our market share. The business is subject to the global and local economies in which it operates, however the company remains strong and with a good order book into 2024 to give a solid base to increase upon for the rest of the trading year. |
Development and performance |
We consider that the financial position of the company at the period end shows a good strong net position with cash resources and a good net asset position. The company remains focused on future projects to continue growth in the market and feel confident that these plans alongside the current market share will continue to give a good strong financial position for the future. |
On behalf of the board: |
STAINLESS STEEL SERVICES LIMITED (REGISTERED NUMBER: 02990634) |
Report of the Directors |
for the year ended 31 December 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
Principal activity |
The principal activity of the company continued to be that of a stainless steel stockholder and processor. |
Dividends |
Interim dividends of £863,258 were paid during the year. No further dividend has been recommended for the year. |
Directors |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
Key risks |
Liquidity risk |
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business. |
Foreign currency risk |
The company’s principal foreign currency exposures arise from trading with overseas companies. Company policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. |
Credit risk |
Investments of cash surpluses are made through banks and companies which must fulfil credit rating criteria approved by the Board. |
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary. |
STAINLESS STEEL SERVICES LIMITED (REGISTERED NUMBER: 02990634) |
Report of the Directors |
for the year ended 31 December 2023 |
Statement of directors' responsibilities |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Statement as to disclosure of information to auditors |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
Auditors |
The audit business of Haines Watts Birmingham LLP was acquired by Cooper Parry Group Limited on 14 November 2023. Haines Watts Birmingham LLP has resigned as auditor and Cooper Parry Group Limited has been appointed in its place. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
Stainless Steel Services Limited |
Opinion |
We have audited the financial statements of Stainless Steel Services Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 company's affairs as at 31 December 2023 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Report of the Independent Auditors to the Members of |
Stainless Steel Services Limited |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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. |
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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors 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 Report of the Directors. |
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, 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 Statement of Directors' Responsibilities set out on page four, 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 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. |
Report of the Independent Auditors to the Members of |
Stainless Steel Services Limited |
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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We obtained an understanding of the legal and regulatory framework applicable to both the company itself and the industry in which it operates. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience and through discussion with the directors and other management. The most significant were identified as the Companies Act 2006, UK GAAP (FRS102) and relevant tax legislation. |
We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statements. Our audit procedures included, but were not limited to: |
- | making enquires of directors and management as to where they consider there to be a susceptibility to fraud and whether they have any knowledge or suspicion of fraud; |
- | obtaining an understanding of the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; |
- | assessing the design effectiveness of the controls in place to prevent and detect fraud; |
- | assessing the risk of management override including identifying and testing journal entries; |
- | challenging the assumptions and judgements made by management in its significant accounting estimates. |
Whilst our audit did not identify any significant matters relating to the detection of irregularities including fraud, and despite the audit being planned and conducted in accordance with ISAs (UK), there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity would likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls. |
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 Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Stainless Steel Services Limited |
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 a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditor |
CUBO Birmingham |
3rd Floor |
Two Chamberlain Square |
Birmingham |
West Midlands |
B3 3AX |
STAINLESS STEEL SERVICES LIMITED (REGISTERED NUMBER: 02990634) |
Statement of Comprehensive |
Income |
for the year ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Turnover | 3 |
Cost of sales | ( |
) | ( |
) |
Gross profit |
Administrative expenses | ( |
) | ( |
) |
Operating profit | 5 |
Interest payable and similar expenses | 6 | ( |
) | ( |
) |
Profit before taxation |
Tax on profit | 7 | ( |
) | ( |
) |
Profit for the financial year |
Other comprehensive income | - | - |
Total comprehensive income for the year |
STAINLESS STEEL SERVICES LIMITED (REGISTERED NUMBER: 02990634) |
Statement of Financial Position |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 9 |
Current assets |
Stocks | 10 |
Debtors | 11 |
Cash at bank and in hand |
Creditors |
Amounts falling due within one year | 12 |
Net current assets |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year |
13 |
( |
) |
( |
) |
Provisions for liabilities | 17 | ( |
) | ( |
) |
Net assets |
Capital and reserves |
Called up share capital | 18 |
Capital redemption reserve | 19 |
Retained earnings | 19 |
Shareholders' funds |
The financial statements were approved by the Board of Directors and authorised for issue on |
STAINLESS STEEL SERVICES LIMITED (REGISTERED NUMBER: 02990634) |
Statement of Changes in Equity |
for the year ended 31 December 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
STAINLESS STEEL SERVICES LIMITED (REGISTERED NUMBER: 02990634) |
Statement of Cash Flows |
for the year ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Capital repayments in year | ( |
) | ( |
) |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
1,012,290 |
Cash and cash equivalents at end of year |
2 |
1,033,138 |
769,524 |
STAINLESS STEEL SERVICES LIMITED (REGISTERED NUMBER: 02990634) |
Notes to the Statement of Cash Flows |
for the year ended 31 December 2023 |
1. | Reconciliation of profit before taxation to cash generated from operations |
2023 | 2022 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Finance costs | 108,227 | 122,174 |
407,224 | 843,652 |
Decrease/(increase) in stocks | ( |
) |
Decrease in trade and other debtors |
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations |
2. | Cash and cash equivalents |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 December 2023 |
31/12/23 | 1/1/23 |
£ | £ |
Cash and cash equivalents | 1,033,138 | 769,524 |
Year ended 31 December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 769,524 | 1,012,290 |
STAINLESS STEEL SERVICES LIMITED (REGISTERED NUMBER: 02990634) |
Notes to the Statement of Cash Flows |
for the year ended 31 December 2023 |
3. | Analysis of changes in net funds |
At 1/1/23 | Cash flow | At 31/12/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 769,524 | 263,614 | 1,033,138 |
769,524 | 1,033,138 |
Debt |
Finance leases | (18,142 | ) | 8,708 | (9,434 | ) |
(18,142 | ) | 8,708 | (9,434 | ) |
Total | 751,382 | 272,322 | 1,023,704 |
STAINLESS STEEL SERVICES LIMITED (REGISTERED NUMBER: 02990634) |
Notes to the Financial Statements |
for the year ended 31 December 2023 |
1. | Statutory information |
Stainless Steel Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is Middlemore Road, Birmingham, West Midlands, B21 0BH. |
2. | Accounting policies |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006. |
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £. |
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. |
Stainless Steel Services Limited is a wholly owned subsidiary of Irestal Europe, S.L., a company incorporated in Spain. The ultimate parent company is Irestal Europe, S.L. and the results of Stainless Steel Services Limited are included in the consolidated financial statements of that company. The contact address of Irestal Group is Carretera Olesa A Martorell, KM 4,5, 08630, Abrera, Barcelona, Spain. |
Going concern |
At the time of approval of these financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. In making this assessment the directors are required to consider a period of at least 12 months from the date of approval of the financial statements. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover is recognised as earned when, and to the extent that, the company obtains the right to consideration in exchange for the delivery of goods and services. |
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
STAINLESS STEEL SERVICES LIMITED (REGISTERED NUMBER: 02990634) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
2. | Accounting policies - continued |
Tangible fixed assets |
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. |
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: |
Plant and machinery | 10-33% on cost |
Fixtures, fittings & equipment | 33% on cost |
Motor vehicles | 33% on cost |
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss. |
Impairment of fixed assets |
At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). |
STAINLESS STEEL SERVICES LIMITED (REGISTERED NUMBER: 02990634) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
2. | Accounting policies - continued |
Stocks |
Stocks are stated at the lower of cost and net realisable value. Cost comprises direct materials. |
Cost is calculated using the weighted average method. |
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss. |
Cash at bank and in hand |
Cash and cash equivalents include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. |
Financial instruments |
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. |
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Basic financial assets |
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. |
Other financial assets |
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment. |
STAINLESS STEEL SERVICES LIMITED (REGISTERED NUMBER: 02990634) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
2. | Accounting policies - continued |
Taxation |
The tax expense represents the sum of the tax currently payable and deferred tax. |
Current tax |
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date. |
Deferred tax |
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit. |
Foreign exchange |
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period. |
Leases |
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases. |
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability. |
Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed. |
STAINLESS STEEL SERVICES LIMITED (REGISTERED NUMBER: 02990634) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
2. | Accounting policies - continued |
Retirement benefits |
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. |
Employee benefits |
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. |
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. |
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. |
Judgements and key sources of estimation uncertainty |
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
Key sources of estimation uncertainty |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows. |
Stock valuation |
Inventories are valued at the lower cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made, which include forecast consumer demand, the promotional, competitive and economic environment and inventory loss trends. |
Financial asset valuation |
The impairment and derecognition of financial assets such as trade debtors depends on the exercise of judgement which is influenced by factors such as the age profiling of trade debtors, general trading conditions and management knowledge regarding the solvency of customers. |
STAINLESS STEEL SERVICES LIMITED (REGISTERED NUMBER: 02990634) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
3. | Turnover |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom |
EU sales | 229,275 | 234,757 |
4. | Employees and directors |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Administration | 7 | 8 |
Production/Warehouse | 12 | 13 |
Sales | 6 | 6 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
STAINLESS STEEL SERVICES LIMITED (REGISTERED NUMBER: 02990634) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
4. | Employees and directors - continued |
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022: 2). Company contributions to directors' defined contribution benefits in the period were £22,872 (2022: £21,000). |
5. | Operating profit |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Auditors' remuneration for non audit work |
Foreign exchange differences | ( |
) |
6. | Interest payable and similar expenses |
2023 | 2022 |
£ | £ |
Invoice finance interest payable |
Interest on overdue taxation |
7. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Prior year tax adjustment | (614 | ) | 88 |
Total current tax |
Deferred tax | ( |
) |
Tax on profit |
STAINLESS STEEL SERVICES LIMITED (REGISTERED NUMBER: 02990634) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
7. | Taxation - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
Change in deferred tax rate |
Total tax charge | 61,653 | 129,004 |
8. | Dividends |
2023 | 2022 |
£ | £ |
Ordinary shares shares of £1 each |
Interim |
STAINLESS STEEL SERVICES LIMITED (REGISTERED NUMBER: 02990634) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
9. | Tangible fixed assets |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
Cost |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
Depreciation |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
Net book value |
At 31 December 2023 |
At 31 December 2022 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
Cost |
At 1 January 2023 |
and 31 December 2023 |
Depreciation |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
Net book value |
At 31 December 2023 |
At 31 December 2022 |
10. | Stocks |
2023 | 2022 |
£ | £ |
Finished goods |
STAINLESS STEEL SERVICES LIMITED (REGISTERED NUMBER: 02990634) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
11. | Debtors: amounts falling due within one year |
2023 | 2022 |
£ | £ |
Trade debtors |
Corporation tax repayable |
Prepayments |
12. | Creditors: amounts falling due within one year |
2023 | 2022 |
£ | £ |
Hire purchase contracts (see note 14) |
Trade creditors |
Amounts owed to group undertakings |
Corporation tax payable |
Social security and other taxes |
VAT | 127,226 | 458,909 |
Other creditors |
Accruals and deferred income |
Included in other creditors is a balance for invoice discounting facility of £1,790,702 (2022: £3,118,261) which is secured by a fixed and floating charge over the assets of the company. |
13. | Creditors: amounts falling due after more than one year |
2023 | 2022 |
£ | £ |
Hire purchase contracts (see note 14) |
Liabilities within finance lease agreements are secured on the assets concerned. |
14. | Leasing agreements |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
STAINLESS STEEL SERVICES LIMITED (REGISTERED NUMBER: 02990634) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
14. | Leasing agreements - continued |
Non-cancellable |
operating leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
Operating lease payments represent rentals payable by the company for its business premises and company vehicles. Vehicle leases are negotiated for an average term of 3 years and property rentals are fixed for an average of 5 years. Lease payments totalling £117,973 (2022 £128,942) were recognised as an expense in the year. |
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. |
15. | Secured debts |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Hire purchase | 9,434 | 18,142 |
Invoice finance facility | 1,790,702 | 3,118,261 |
16. | Financial instruments |
The carrying amount of financial assets (debt instruments) carried at amortised cost is £2,319,750 (2022 £3,830,094). |
The carrying amount of financial liabilities measured at amortised cost is £3,373,484 (2022 £4,526,059). |
17. | Provisions for liabilities |
2023 | 2022 |
£ | £ |
Deferred tax - accelerated |
capital allowances | 13,483 | 19,797 |
13,483 | 19,797 |
STAINLESS STEEL SERVICES LIMITED (REGISTERED NUMBER: 02990634) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
17. | Provisions for liabilities - continued |
Deferred tax |
£ |
Balance at 1 January 2023 |
Credit to Statement of Comprehensive Income during year | ( |
) |
Balance at 31 December 2023 |
18. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary shares | £1 | 150,000 | 150,000 |
19. | Reserves |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2023 | 3,270,309 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 December 2023 | 2,597,445 |
20. | Pension commitments |
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The charge to profit and loss in the period in respect of company defined benefit contributions was £51,942 (2022 £50,267). |
21. | Ultimate parent company |
Irestal Europe S.L (incorporated in Spain ) is regarded by the directors as being the company's ultimate parent company. |
The results of Stainless Steel Services Limited are included in the consolidated accounts prepared by the ultimate parent company. The contact address for the Irestal Group is Carretera Olesa A Martorell, KM 4,5, 08630, Abrera, Barcelona, Spain. |
STAINLESS STEEL SERVICES LIMITED (REGISTERED NUMBER: 02990634) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
22. | Related party disclosures |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
The directors are the only key management personnel. The remuneration of key management personnel is therefore disclosed in aggregate in note 4 to the financial statements. |
There were no other related party transactions during the year, nor were there in the previous year. |