Company registration number 10765570 (England and Wales)
TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
COMPANY INFORMATION
Directors
I A Cunningham
M R Cunningham
J A Snelling
J J Cunningham
Secretary
W F G Glossop
Company number
10765570
Registered office
C/O Tennant Metallurgical Group Limited
Dunston Innovation Centre
Dunston Road
Chesterfield
Derbyshire
United Kingdom
S41 8NG
Auditor
BHP LLP
2 Rutland Park
Sheffield
S10 2PD
TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
12
Company statement of changes in equity
11
Group statement of cash flows
13
Notes to the financial statements
14 - 30
TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Principal Activities

The Group and Company’s principal activity continues to be associated with ferro alloys, metals and minerals used in mining, metallurgical, refractory, abrasive and related fields.

 

Business review and future developments

The Group performed well during the year in all of its business sectors in a market affected by the war in Ukraine. Demand was affected and supply chains remain disrupted, however our customers continue to operate, all be it at a reduced level of operation. The Group has delivered an operating profit £1.816 million (2022 £3.842 million). Overall sales were £36.1 million compared to previous year £54.3 million. The increase reflects the rise in prices during the period and effects of the war in Ukraine. The directors consider this to be a good performance, and above budget for the year, and the Group continues into 2024 with an adequate forecast of business. The group current assets stood at £16.6 million slightly lower than the previous year at £16.8 million, and profit and loss reserves were £13.2 million compared with prior year £13.0 million.

Derivatives and Risk Management

 

The Group uses financial instruments comprising overdrafts, stock trade debtors and trade creditors. The main purpose of these financial instruments is to finance the working capital cycle of the group. The policies for managing the risks open to the Group are summarised below and remain unchanged from the previous year.

 

Commodity price risk

 

The Group uses hedges booked on the London Metal Exchange to manage the risk of fluctuations in the market of certain metal commodities.

 

Interest rate risk

 

The Group finances its operations through a combination of overdrafts/loans secured against stock and debtors. The groups’ borrowings are linked to the bank base rate.

 

Liquidity risk

 

The Group seeks to manage liquidity risk by ensuring that sufficient liquidity is available to meet foreseeable needs. Primarily this is achieved through bank borrowings.

 

Currency risk

 

The Group is exposed to transaction foreign exchange risk. This is managed on a group basis by the use of borrowing in foreign currencies and forward exchange contracts.

 

Brexit Risk

 

The directors are continuing to monitor the potential impact on its customers and suppliers, market access and possible effects on foreign currency exchange rates. The Group continues to utilise its registered a company in Ireland, Tennant Metallurgical (Ireland) Ltd, to assist with its EU business.

 

TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Financial Key Performance Indicators

The Group’s key performance indicators include the monitoring of margins and profitability. The following table shows the key financial indicators:

                            2023        2022

Gross profit percentage                    8.8%        11.5%

Interest Cover (expressed as a factor)            14.79 31.81

 

Other Key Performance Indicators

Staff

The Group has an equal-opportunities approach to recruitment and staff turnover remains low.

Quality control

Quality control measures will be based on Lloyd’s Registered Quality Assurance (LRQA) audits. The Group retained its current Quality Assurance Status.

Relevant Laws and Regulations

The Group holds the necessary REACH Registrations. The Company’s Modern Slavery Act statement is available on its website.

On behalf of the board

I A Cunningham
Director
13 March 2024
TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Results and dividends

The profit for the year, after taxation, amounted to £1,505,792 (2022 £3,091,500)

Ordinary dividends were paid amounting to £31,939. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

I A Cunningham
M R Cunningham
J A Snelling
J J Cunningham
Auditor

The auditor, BHP LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Going Concern

As part of its budgeting process the directors prepared profit forecasts and “stress tested” cash flow statements for the group’s borrowing for 2024 and to March 2025. The bank borrowing facilities were incorporated into the forecasts which showed sufficient headroom for trading in the period.

Based on the above, the directors are satisfied that the going concern basis of preparation is appropriate.

TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
I A Cunningham
Director
13 March 2024
TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Tennant Metallurgical Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 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 entity’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

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

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
- 7 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

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.

Paul Winwood (Senior Statutory Auditor)
For and on behalf of BHP LLP
13 March 2024
Chartered Accountants
Statutory Auditor
2 Rutland Park
Sheffield
S10 2PD
TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
36,076,844
54,291,004
Cost of sales
(32,893,385)
(48,047,655)
Gross profit
3,183,459
6,243,349
Distribution costs
(405,247)
(415,419)
Administrative expenses
(955,995)
(2,201,364)
Other operating income
-
215,971
Operating profit
4
1,822,217
3,842,537
Interest receivable and similar income
7
150,851
17,662
Interest payable and similar expenses
9
(122,793)
(123,927)
Amounts written back on investments
11
140,564
57,220
Profit before taxation
1,990,839
3,793,492
Tax on profit
10
(470,191)
(727,617)
Profit for the financial year
1,520,648
3,065,875
Other comprehensive income
Currency translation (loss)/gain taken to retained earnings
(6,664)
25,625
Total comprehensive income for the year
1,513,984
3,091,500
Profit for the financial year is attributable to:
- Owners of the parent company
967,148
2,541,581
- Non-controlling interests
553,500
524,294
1,520,648
3,065,875
Total comprehensive income for the year is attributable to:
- Owners of the parent company
960,484
2,562,081
- Non-controlling interests
553,500
529,419
1,513,984
3,091,500
TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
34,909
33,504
Investment property
14
275,000
275,000
Investments
16
3,710,051
1,607,703
4,019,960
1,916,207
Current assets
Stocks
18
5,385,552
5,716,417
Debtors
19
5,331,002
5,963,168
Cash at bank and in hand
5,865,862
5,094,818
16,582,416
16,774,403
Creditors: amounts falling due within one year
20
(5,140,524)
(4,008,503)
Net current assets
11,441,892
12,765,900
Total assets less current liabilities
15,461,852
14,682,107
Provisions for liabilities
Deferred tax liability
22
20,700
19,000
(20,700)
(19,000)
Net assets
15,441,152
14,663,107
Capital and reserves
Called up share capital
24
62
63
Share premium account
(736,000)
(736,000)
Capital redemption reserve
736,000
736,000
Other reserves
235,539
235,539
Profit and loss reserves
13,241,614
13,013,068
Equity attributable to owners of the parent company
13,477,215
13,248,670
Non-controlling interests
1,963,937
1,414,437
15,441,152
14,663,107
The financial statements were approved by the board of directors and authorised for issue on 13 March 2024 and are signed on its behalf by:
13 March 2024
I A Cunningham
Director
Company registration number 10765570 (England and Wales)
TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
16
600,479
127
Current assets
Debtors
19
1
-
0
Cash at bank and in hand
4,667
1,360,000
4,668
1,360,000
Net current assets
4,668
1,360,000
Total assets less current liabilities
605,147
1,360,127
Provisions for liabilities
Deferred tax liability
22
6,000
-
0
(6,000)
-
Net assets
599,147
1,360,127
Capital and reserves
Called up share capital
24
62
63
Profit and loss reserves
599,085
1,360,064
Total equity
599,147
1,360,127

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £29,041 (2022: £1,444,031 profit).

The financial statements were approved by the board of directors and authorised for issue on 13 March 2024 and are signed on its behalf by:
13 March 2024
I A Cunningham
Director
Company registration number 10765570 (England and Wales)
TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
63
33
96
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
1,444,031
1,444,031
Dividends
12
-
(84,000)
(84,000)
Balance at 31 December 2022
63
1,360,064
1,360,127
Year ended 31 December 2023:
Profit and total comprehensive income
-
(29,041)
(29,041)
Dividends
12
-
(31,939)
(31,939)
Own shares acquired
-
(700,000)
(700,000)
Reduction of shares
24
(1)
1
-
0
Balance at 31 December 2023
62
599,085
599,147
TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Share premium account
Capital redemption reserve
Other reserves
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
£
£
Balance at 1 January 2022
63
(736,000)
736,000
235,539
10,534,987
10,770,589
1,288,018
12,058,607
Year ended 31 December 2022:
Profit for the year
-
-
-
-
2,541,581
2,541,581
524,294
3,065,875
Other comprehensive income:
Currency translation differences
-
-
-
-
25,625
25,625
-
25,625
Amounts attributable to non-controlling interests
-
-
-
-
(5,125)
(5,125)
5,125
-
Total comprehensive income
-
-
-
-
2,562,081
2,562,081
529,419
3,091,500
Dividends
12
-
-
-
-
(84,000)
(84,000)
(403,000)
(487,000)
Balance at 31 December 2022
63
(736,000)
736,000
235,539
13,013,068
13,248,670
1,414,437
14,663,107
Year ended 31 December 2023:
Profit for the year
-
-
-
-
967,148
967,148
553,500
1,520,648
Other comprehensive income:
Currency translation differences
-
-
-
-
(6,664)
(6,664)
-
(6,664)
Total comprehensive income
-
-
-
-
960,484
960,484
553,500
1,513,984
Dividends
12
-
-
-
-
(31,939)
(31,939)
(4,000)
(35,939)
Own shares acquired
-
-
-
-
(700,000)
(700,000)
-
(700,000)
Reduction of shares
24
(1)
-
-
-
1
-
0
-
-
Balance at 31 December 2023
62
(736,000)
736,000
235,539
13,241,614
13,477,215
1,963,937
15,441,152
TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
2,202,516
6,920,315
Interest paid
(122,793)
(123,927)
Income taxes paid
(182,241)
(1,337,748)
Net cash inflow from operating activities
1,897,482
5,458,640
Investing activities
Purchase of tangible fixed assets
(9,607)
(31,164)
Purchase of investments
(1,961,784)
(1,216,533)
Loans made
(248,676)
(82,232)
Interest received
127,346
17,662
Dividends received
23,505
-
0
Net cash used in investing activities
(2,069,216)
(1,312,267)
Financing activities
Purchase of own shares
(700,000)
-
0
Dividends paid to equity shareholders
(31,939)
(84,000)
Dividends paid to non-controlling interests
(4,000)
(403,000)
Net cash used in financing activities
(735,939)
(487,000)
Net (decrease)/increase in cash and cash equivalents
(907,673)
3,659,373
Cash and cash equivalents at beginning of year
4,849,325
1,164,327
Effect of foreign exchange rates
(6,664)
25,625
Cash and cash equivalents at end of year
3,934,988
4,849,325
Relating to:
Cash at bank and in hand
5,865,862
5,094,818
Bank overdrafts included in creditors payable within one year
(1,930,874)
(245,493)
TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

Tennant Metallurgical Group Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is C/O Tennant Metallurgical Group Limited, Dunston Innovation Centre, Dunston Road, Chesterfield, Derbyshire, United Kingdom, S41 8NG.

 

The group consists of Tennant Metallurgical Group Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Tennant Metallurgical Group Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.

 

Turnover relating to the sale of stocks, other than stocks on consignment, is recognised in the period in which the stock items are dispatched. Turnover relating to consignment stocks is recognised in the period in which usage is declared by the customer. Commission receivable is recognised in the period in which the related goods are dispatched.

 

Sale of goods

 

 

TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -

 

1.6
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 equipment
1 - 5 years straight line
Fixtures and fittings
20% Reducing balance
IT equipment
20% Reducing balance

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 recognised in the profit and loss account.

1.7
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.12
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.18
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 in the period are included in profit or loss.

TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
2
Judgements and key sources of estimation uncertainty

The preparation of financial information required management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Judgements and estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates may differ from the related actual results.

 

Directors have exercised judgement, valuing the investment property at £275,000, which is the same as the purchase price. The decision which is integral to the financial statements, reflects the directors' view on the property's current market value however, inherent estimation uncertainty exists.

3
Turnover and other revenue
2023
2022
£
£
Other significant revenue
Interest income
127,346
17,662
Dividends received
23,505
-
Grants received
-
2,667
Rental income arising from investment properties
17,524
-

The directors consider there to be more than one geographical segment and only one class of business. As permitted by the Companies Act 2006 the directors' have not disclosed any information by geographical segment as they consider it would be seriously prejudicial to the interests of the company.

4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
21,313
(184,772)
Government grants
-
(2,667)
Depreciation of owned tangible fixed assets
8,202
5,073
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
27,550
25,750
For other services
Taxation compliance services
5,350
5,000
TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Sales and administration
13
13
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
789,544
827,119
-
0
-
0
Social security costs
87,514
118,914
-
-
Pension costs
103,776
82,265
-
0
-
0
980,834
1,028,298
-
0
-
0
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
86,726
4,993
Other interest income
40,620
12,669
Total interest revenue
127,346
17,662
Other income from investments
Dividends received
23,505
-
0
Total income
150,851
17,662
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
80,589
108,549

 

TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
122,793
117,633
Interest payable to group undertakings
-
0
6,294
Total finance costs
122,793
123,927
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
432,543
673,194
Adjustments in respect of prior periods
35,948
40,421
Total current tax
468,491
713,615
Deferred tax
Origination and reversal of timing differences
1,700
14,002
Total tax charge
470,191
727,617

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,990,839
3,793,492
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
468,245
720,763
Tax effect of expenses that are not deductible in determining taxable profit
21,748
1,557
Tax effect of income not taxable in determining taxable profit
(79,027)
-
0
Gains not taxable
3,734
-
0
Change in unrecognised deferred tax assets
16,241
(39,397)
Adjustments in respect of prior years
35,948
40,421
Effect of change in corporation tax rate
(1,280)
3,360
Double tax relief
(287)
-
0
Permanent capital allowances in excess of depreciation
-
0
(28)
Adjustments in respect of financial assets
4,005
(421)
Foreign exchange differences
864
1,362
Taxation charge
470,191
727,617
TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
11
Amounts written back to investments
2023
2022
£
£
Fair value gains/(losses) on financial instruments
Change in value of financial assets held at fair value through profit or loss
125,673
57,220
Other gains/(losses)
Gain on disposal of investments held at fair value
14,891
-
140,564
57,220
12
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
31,939
84,000
13
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
IT equipment
Total
£
£
£
£
Cost
At 1 January 2023
335,842
26,934
1,509
364,285
Additions
9,607
-
0
-
0
9,607
At 31 December 2023
345,449
26,934
1,509
373,892
Depreciation and impairment
At 1 January 2023
325,600
4,841
340
330,781
Depreciation charged in the year
3,550
4,418
234
8,202
At 31 December 2023
329,150
9,259
574
338,983
Carrying amount
At 31 December 2023
16,299
17,675
935
34,909
At 31 December 2022
10,242
22,093
1,169
33,504
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
14
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 January 2023 and 31 December 2023
275,000
-
TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Investment property
(Continued)
- 25 -

The investment properties are held at open market value at the date of purchase. The directors believe the valuation is appropriate as at 31 December 2023. The historical cost of the investment property is £275,000.

 

15
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Tennant Metallurgical Holdings Limited
Dunston Innovation Centre, Dunston Road, Chesterfield, Derbyshire, United Kingdom, S41 8NG
Ordinary
100.00
-
Tennant Metallurgical Group Limited
Dunston Innovation Centre, Dunston Road, Chesterfield, Derbyshire, United Kingdom, S41 8NG
Ordinary
-
61.17
NEWCOE Limited
Dunston Innovation Centre, Dunston Road, Chesterfield, Derbyshire, United Kingdom, S41 8NG
Ordinary
-
61.17
NEWCOU Limited
Dunston Innovation Centre, Dunston Road, Chesterfield, Derbyshire, United Kingdom, S41 8NG
Ordinary
-
61.17
TM (Developments) Limited**
Dunston Innovation Centre, Dunston Road, Chesterfield, Derbyshire, United Kingdom, S41 8NG
Ordinary
-
61.17
Tennant Metallurgical Limited**
Dunston Innovation Centre, Dunston Road, Chesterfield, Derbyshire, United Kingdom, S41 8NG
Ordinary
-
61.17
Watsons Alloys & Metals Limited**
Dunston Innovation Centre, Dunston Road, Chesterfield, Derbyshire, United Kingdom, S41 8NG
Ordinary
-
61.17
Tennant Metallurgical (Ireland) Limited
c/o Jpa Brenson Lawlor Limited, Brenson Lawlor House, Argyle Square, Morehampton Road, Dublin
Ordinary
-
61.17
Ferrovest Limited
Dunston Innovation Centre, Dunston Road, Chesterfield, Derbyshire, United Kingdom, S41 8NG
Ordinary
-
100.00
Smastein Limited
Dunston Innovation Centre, Dunston Road, Chesterfield, Derbyshire, United Kingdom, S41 8NG
Ordinary
-
100.00
St Jarna 72 Limited
Dunston Innovation Centre, Dunston Road, Chesterfield, Derbyshire, United Kingdom, S41 8NG
Ordinary
-
100.00

** Dormant subsidiaries which are all exempt from audit

16
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
127
127
Other investments
3,710,051
1,607,703
600,352
-
0
3,710,051
1,607,703
600,479
127
TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Fixed asset investments
(Continued)
- 26 -
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 January 2023
1,607,703
Additions
3,128,299
Valuation changes
125,673
Portfolio fees
(9,638)
Income received
17,980
Disposals
(1,159,966)
At 31 December 2023
3,710,051
Carrying amount
At 31 December 2023
3,710,051
At 31 December 2022
1,607,703
Movements in fixed asset investments
Company
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2023
127
-
127
Additions
-
876,304
876,304
Valuation changes
-
26,419
26,419
Portfolio fees
-
(1,190)
(1,190)
Disposals
-
(301,181)
(301,181)
At 31 December 2023
127
600,352
600,479
Carrying amount
At 31 December 2023
127
600,352
600,479
At 31 December 2022
127
-
127
17
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
3,610,051
1,607,703
600,352
-
TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
18
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
5,385,552
5,716,417
-
-
19
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,366,290
5,306,062
1
-
0
Corporation tax recoverable
199,310
84,005
-
0
-
0
Other debtors
548,543
298,117
-
0
-
0
Prepayments and accrued income
216,859
274,984
-
0
-
0
5,331,002
5,963,168
1
-
20
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
1,930,874
245,493
-
0
-
0
Trade creditors
2,303,917
2,304,843
-
0
-
0
Corporation tax payable
401,555
-
0
-
0
-
0
Other taxation and social security
159,614
1,022,228
-
-
Other creditors
9,834
-
0
-
0
-
0
Accruals and deferred income
334,730
435,939
-
0
-
0
5,140,524
4,008,503
-
0
-
0
21
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank overdrafts
1,930,874
245,493
-
0
-
0
Payable within one year
1,930,874
245,493
-
0
-
0

The bank borrowings are secured by a fixed and floating charge over the assets of the company.

TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Fixed asset timing differences
20,700
6,000
Capital gains/(losses)
-
20,000
Losses and other deductions
-
(7,000)
20,700
19,000
Liabilities
Liabilities
2023
2022
Company
£
£
Fixed asset timing differences
6,000
-
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
19,000
-
Charge to profit or loss
1,700
6,000
Liability at 31 December 2023
20,700
6,000

 

23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
103,776
82,265

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A1 Ordinary Shares of 0.0005p each
35,408
39,368
18
19
A2 Ordinary Shares of 0.0005p each
2,000
2,000
1
1
B1 Ordinary Shares of 0.0005p each
42,816
42,816
21
21
B2 Ordinary Shares of 0.0005p each
21,408
21,408
11
11
B3 Ordinary Shares of 0.0005p each
21,408
21,408
11
11
123,040
127,000
62
63

On 25 April 2023 3,960 Ordinary A1 shares with a par value of £0.0005 were redeemed by the company.

25
Operating lease commitments

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
24,172
37,500
-
-
Between two and five years
-
24,172
-
-
24,172
61,672
-
-
26
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
586,979
607,979
Other information

At 31 December there were balances outstanding with related parties. £30,000 (2022: £30,000) relating to a loan due from W Glossop. £516,535 relating to a loan due from M R Cunningham (2022: £185,392). £2,959 relating to a loan due to J A Snelling (2022: £82,466 owed from). £6,876 relating to a loan due to I A Cunningham (2022: £nil).

 

The Company has taken advantage of the exemption in FRS 102 and has not disclosed transactions or balances with entities which are wholly owned members of Tennant Metallurgical Group Holdings Limited.

TENNANT METALLURGICAL GROUP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
27
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
1,520,648
3,065,875
Adjustments for:
Taxation charged
470,191
727,617
Finance costs
122,793
123,927
Investment income
(150,851)
(17,662)
Depreciation and impairment of tangible fixed assets
8,202
5,073
Other gains and losses
(140,564)
(57,220)
Movements in working capital:
Decrease/(increase) in stocks
330,865
(521,416)
Decrease in debtors
996,147
5,101,475
Decrease in creditors
(954,915)
(1,507,354)
Cash generated from operations
2,202,516
6,920,315
28
Analysis of changes in net funds - group
1 January 2023
Cash flows
Exchange rate movements
31 December 2023
£
£
£
£
Cash at bank and in hand
5,094,818
777,708
(6,664)
5,865,862
Bank overdrafts
(245,493)
(1,685,381)
-
(1,930,874)
4,849,325
(907,673)
(6,664)
3,934,988
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