REGISTERED NUMBER: 07423677 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
UNITED STEELS HOLDING COMPANY LIMITED |
REGISTERED NUMBER: 07423677 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
UNITED STEELS HOLDING COMPANY LIMITED |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 18 |
UNITED STEELS HOLDING COMPANY LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
and Registered Auditors |
Admiral House |
Waterfront East |
Brierley Hill |
West Midlands |
DY5 1XG |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
Property Activities |
The holding company continues to enjoy high occupancy levels on the Gibbons site and revenue from rents and service charges has again increased. |
Other income is derived from the rental of de-coiling plant and machinery to the subsidiary company, United Steels Limited. |
Steel Trading Activities |
The trading activity continues to be the sale of slit coil and sheet product and the processing of customers own material across a wide range of processing plant and machinery that includes slitting, de-coiling and shearing. |
2023 started positively but by Q2 market conditions and supressed customer demand together with significant cost increases and interest rate rises all started to impact negatively on financial performance. Protection in 2021 and 2022 that had been possible in terms of back to back deals with suppliers/customers became more challenging and trading became more spot based hitting margins on historical stock. |
The business continues to transition in terms of market sectors and the ratio of volumes between direct sales and toll processing and the move will serve to stabilise the company for the longer term. |
PROFITABILITY |
A group profit before tax for the financial year of £63,586 is reported (2022: - £958,441). The directors consider the result to be satisfactory. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group recognises areas of risk to the business and is committed to managing those key risks. |
Void rental periods on property activities and a downturn in the performance of the steel trading subsidiary are the main areas of risk to the parent company. |
Property risks are managed by the directors adopting an active relationship with existing and potential tenants. The directors of Holdings and its subsidiary meet regularly to monitor the performance of the steel trading activities. |
Borrowing levels are controlled by disciplined stock management and tightly controlled overhead expenditure. The group has no significant exposure to movements in exchange rates or interest rates. |
The group have a debt protection policy in place with Allianz (formerly Euler Hermes). |
The group operates in a highly competitive marketplace and this risk is managed by offering an extensive range of processing capability and high service levels at competitive pricing. The directors monitor competitor activity and market trend and current affairs. |
Security of product supply is managed by forging close relationships with key suppliers and co-operating with credit agencies. |
The group undertakes a continuous improvement approach to people and processes. |
KEY PERFORMANCE INDICATORS |
The group measures business performance using key performance indicators to include turnover and gross profit. Year on year, turnover reduced by 5.7% and gross profit reduced by 4% compared to 2021. |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
HEALTH AND SAFETY |
The group is committed to achieving the highest practicable standards in health and safety management and strives to ensure environments are safe for employees and visitors. |
ENVIRONMENT |
The group recognises its corporate responsibility to carry out its operations whilst minimising environmental impacts. The directors' continued aim is to comply with all applicable environmental legislation, prevent pollution and reduce waste wherever possible. |
PARTNERS |
The group would like to take this opportunity to thanks its employees, customers, suppliers and wider business partners for their continued support. |
POST BALANCE SHEET EVENTS |
On 8 August 2023, United Steels Holding Company Limited sold its shareholding in United Steels Limited via a management buy-out, buy-in. A newly formed company, Unico Nex Gen Limited, co-owned by Mark Unitt and Glyn Costigan, acquired 100% of the share capital. |
The transaction also included the sale of the de-coiling plant and machinery previously hired to United Steels Limited. |
A post transaction condition of the sale is a name change for United Steels Holding Company Limited which will become GCD 2024 Limited. |
ON BEHALF OF THE BOARD: |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITIES |
The principal activity of the company in the year under review was that of a holding company to a trading subsidiary and rental income derived from external tenants. |
The principal activities of the group continued to be those of steel stockists and service centre providing processing facilities for slitting, decoiling and shearing in coil, strip, blank and sheet form. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
FUTURE DEVELOPMENTS |
No alterations to the company's present position are foreseen. |
EVENTS SINCE THE END OF THE YEAR |
On 8 August 2023, United Steels Holding Company Limited sold its shareholding in United Steels Limited via a management buy-out, buy-in. A newly formed company, Unico Nex Gen Limited, co-owned by Mark Unitt and Glyn Costigan, acquired 100% of the share capital. |
The transaction also included the sale of the de-coiling plant and machinery previously hired to United Steels Limited. |
A post transaction condition of the sale is a name change for United Steels HOlding Company Limited which will become GCD 2024 Limited. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen in accordance with Companies Act 2006 a.414C(11) to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of future developments. |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
AUDITORS |
The auditors, Blackthorns, are deemed to be reappointed under section 487(2) of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
UNITED STEELS HOLDING COMPANY LIMITED |
Opinion |
We have audited the financial statements of United Steels Holding Company Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
UNITED STEELS HOLDING COMPANY LIMITED |
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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
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: |
Based on our understanding of the company and industry we did not identify any risks of non compliance with laws and regulations that would impact on the company's ability to trade or have a material impact on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and UK tax legislation. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risk was regarding completeness of income. Audit procedures performed included: |
- | discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud; |
- | reviewing correspondence for any issues of non-compliance; |
- | identifying and testing journal entries both at the year end and during the year, in particular any journal entries posted with unusual account combinations or posted by senior management; and |
- | challenging assumptions and judgements made by management in their significant accounting estimates and judgements. |
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
UNITED STEELS HOLDING COMPANY 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 |
Chartered Accountants |
and Registered Auditors |
Admiral House |
Waterfront East |
Brierley Hill |
West Midlands |
DY5 1XG |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 | 27,133,519 | 28,771,991 |
Cost of sales | 24,195,769 | 24,478,764 |
GROSS PROFIT | 2,937,750 | 4,293,227 |
Administrative expenses | 2,653,175 | 3,164,726 |
OPERATING PROFIT | 5 | 284,575 | 1,128,501 |
Other finance income | 21 | 1,000 | - |
285,575 | 1,128,501 |
Interest payable and similar expenses | 6 | 221,989 | 163,060 |
Other finance costs | 21 | - | 7,000 |
221,989 | 170,060 |
PROFIT BEFORE TAXATION | 63,586 | 958,441 |
Tax on profit | 7 | 14,947 | 220,383 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 48,639 | 738,058 |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 48,639 | 738,058 |
OTHER COMPREHENSIVE INCOME |
Actuarial gain/(loss) on pension scheme | (21,000 | ) | 441,000 |
Asset curtailments | (41,000 | ) | (84,000 | ) |
Income tax relating to components of other comprehensive income |
- |
(81,000 |
) |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(62,000 |
) |
276,000 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(13,361 |
) |
1,014,058 |
Total comprehensive income attributable to: |
Owners of the parent | (13,361 | ) | 1,014,058 |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
CONSOLIDATED BALANCE SHEET |
31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | - | 131,072 |
Tangible assets | 10 | 6,189,648 | 6,205,648 |
Investments | 11 | - | - |
Investment property | 12 | 4,000,000 | 4,000,000 |
10,189,648 | 10,336,720 |
CURRENT ASSETS |
Stocks | 13 | 6,613,328 | 3,939,034 |
Debtors | 14 | 5,378,903 | 4,731,646 |
Cash at bank | 520,537 | 233,472 |
12,512,768 | 8,904,152 |
CREDITORS |
Amounts falling due within one year | 15 | 13,648,231 | 10,080,885 |
NET CURRENT LIABILITIES | (1,135,463 | ) | (1,176,733 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
9,054,185 |
9,159,987 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(401,575 |
) |
(469,016 |
) |
PROVISIONS FOR LIABILITIES | 19 | (325,000 | ) | (350,000 | ) |
NET ASSETS | 8,327,610 | 8,340,971 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 1,001 | 1,001 |
Revaluation reserve | 21 | 1,091,240 | 1,091,240 |
Other reserves | 21 | 5,695,628 | 5,695,628 |
Retained earnings | 21 | 1,539,741 | 1,553,102 |
SHAREHOLDERS' FUNDS | 8,327,610 | 8,340,971 |
The financial statements were approved by the Board of Directors and authorised for issue on 16 September 2024 and were signed on its behalf by: |
Mrs K Tiltman - Director |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
COMPANY BALANCE SHEET |
31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 | 1,001 | 1,001 |
Revaluation reserve | 21 | 1,091,240 | 1,091,240 |
Retained earnings | 21 | 6,119,135 | 5,030,499 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,088,636 | 1,077,830 |
The financial statements were approved by the Board of Directors and authorised for issue on |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Revaluation | Other | Total |
capital | earnings | reserve | reserves | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2022 | 1,001 | 539,044 | 1,091,240 | 5,695,628 | 7,326,913 |
Changes in equity |
Total comprehensive income | - | 1,014,058 | - | - | 1,014,058 |
Balance at 31 December 2022 | 1,001 | 1,553,102 | 1,091,240 | 5,695,628 | 8,340,971 |
Changes in equity |
Total comprehensive income | - | (13,361 | ) | - | - | (13,361 | ) |
Balance at 31 December 2023 | 1,001 | 1,539,741 | 1,091,240 | 5,695,628 | 8,327,610 |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 | 1,001 | 3,952,669 | 1,091,240 | 5,044,910 |
Changes in equity |
Total comprehensive income | - | 1,077,830 | 1,077,830 |
Balance at 31 December 2022 | 1,001 | 5,030,499 | 1,091,240 | 6,122,740 |
Changes in equity |
Total comprehensive income | - | 1,088,636 | 1,088,636 |
Balance at 31 December 2023 | 1,001 | 6,119,135 | 1,091,240 | 7,211,376 |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,185,565 | 1,595,497 |
Interest paid | (221,989 | ) | (163,060 | ) |
Tax paid | (160,000 | ) | (144,674 | ) |
Net cash from operating activities | 803,576 | 1,287,763 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (393,985 | ) | (338,295 | ) |
Sale of tangible fixed assets | 45,686 | 1,500 |
Net cash from investing activities | (348,299 | ) | (336,795 | ) |
Cash flows from financing activities |
Loan repayments in year | (193,679 | ) | (828,345 | ) |
New hire purchase finance in the year | 37,916 | - |
Capital repayments in year | 34,362 | - |
Amount introduced by directors | - | 225,428 |
Amount withdrawn by directors | (144,655 | ) | - |
Net cash from financing activities | (266,056 | ) | (602,917 | ) |
Increase in cash and cash equivalents | 189,221 | 348,051 |
Cash and cash equivalents at beginning of year |
2 |
(3,430,256 |
) |
(3,778,307 |
) |
Cash and cash equivalents at end of year | 2 | (3,241,035 | ) | (3,430,256 | ) |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.23 | 31.12.22 |
£ | £ |
Profit before taxation | 63,586 | 958,441 |
Depreciation charges | 541,056 | 527,558 |
Profit on disposal of fixed assets | (45,686 | ) | (1,500 | ) |
Pension costs | - | (73,000 | ) |
Finance costs | 221,989 | 170,060 |
Finance income | (1,000 | ) | - |
779,945 | 1,581,559 |
(Increase)/decrease in stocks | (2,674,294 | ) | 2,795,596 |
(Increase)/decrease in trade and other debtors | (620,257 | ) | 685,379 |
Increase/(decrease) in trade and other creditors | 3,700,171 | (3,467,037 | ) |
Cash generated from operations | 1,185,565 | 1,595,497 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 520,537 | 233,472 |
Bank overdrafts | (3,761,572 | ) | (3,663,728 | ) |
(3,241,035 | ) | (3,430,256 | ) |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 233,472 | 712,546 |
Bank overdrafts | (3,663,728 | ) | (4,490,853 | ) |
(3,430,256 | ) | (3,778,307 | ) |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 233,472 | 287,065 | 520,537 |
Bank overdrafts | (3,663,728 | ) | (97,844 | ) | (3,761,572 | ) |
(3,430,256 | ) | 189,221 | (3,241,035 | ) |
Debt |
Finance leases | - | (34,362 | ) | (34,362 | ) |
Debts falling due within 1 year | (112,546 | ) | (360 | ) | (112,906 | ) |
Debts falling due after 1 year | (469,016 | ) | 95,124 | (373,892 | ) |
(581,562 | ) | 60,402 | (521,160 | ) |
Total | (4,011,818 | ) | 249,623 | (3,762,195 | ) |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
United Steels Holding Company Limited is a private company limited by shares and incorporated in England, registered number 07423677. Its registered office is Gibbons Industrial Park, Dudley Road, Kingswinford, West Midlands, DY6 8XF. |
The financial statements are presented in Sterling, which is the functional currency of the company. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The group accounts include the accounts of the company and all of its subsidiaries for the year ended 31 December 2023. |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Critical accounting judgements and key sources of estimation uncertainty |
The company makes estimates and assumptions concerning the future. The directors are also required to exercise judgement in the process of applying the company's accounting policies. Estimates and judgements 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 estimates and assumptions that have a significant risk of causing a material adjustment to the carrying |
amounts of assets and liabilities within the next financial year are addressed below. |
In preparing these financial statements the directors have made the following judgements: |
Recoverability of trade debtors |
Trade and other debtors are recognised to the extent that they are judged recoverable. The directors' review is performed to estimate the level of reserves required for irrecoverable debt. Provisions are made specifically |
against invoices where recoverability is uncertain. |
The directors make allowances for doubtful debts based on an assessment of the recoverability of debtors. |
Allowances are applied to debtors where events or changes in circumstances indicate that the carrying amounts may not be recoverable. The directors specifically analyse historical bad debts, customer creditworthiness, |
current economic trends and changes in customer payment terms when making a judgement to evaluate the |
adequacy of the provision for doubtful debts. Where the expectation is different from the original estimate, such differences will impact the carrying value of debtors and the charge in the statement of income and retained |
earnings. |
Leasing |
The company determines whether leases entered into by the company as a lessee are operating or finance leases. These decisions depend on the assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis based on an evaluation of the terms and conditions of the arrangements, and accordingly whether the lease requires an asset and liability to be recognised in the balance sheet. |
Provisions |
A provision is recognised when the company has a present legal or constructive obligation as a result of a past event for which it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Whether a present obligation is probable or not requires judgement. The nature and type of risks for these provisions differ and management's judgement is applied regarding the nature and extent of obligations in deciding if an outflow of resources is probable or not. |
Turnover |
Group turnover represents amounts receivable for goods and services, net of VAT and trade discounts. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Motor vehicles | - |
Computer equipment | - |
Investment properties are properties which are held either to earn rental income or for capital appreciation or for both. Investment properties are stated at fair value. |
Any gains or losses arising from changes in the fair value are recognised in the profit or loss in the period they arise and no depreciation is provided in respect of investment properties. |
Investment property |
Investment properties are properties which are held either to earn rental income or for capital appreciation or for both.Investment properties are stated at fair value. |
Any gains or losses arising from the changes in the fair value are recognised in profit and loss in the period that they arise and no depreciation is provided in respect of investment properties. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payments is charged to the profit and loss account so as to produce a constant periodic rate of change on the net obligation outstanding in each period. |
Pension |
The group makes contributions to a number of pension scheme. The main scheme for employees was established in September 1994 and is a hybrid scheme being defined contribution in nature with benefits subject to requisite testing to guarantee minimum pensions. For this reason this scheme is accounted for as a defined benefit scheme in accordance with FRS102. |
The regular cost of providing retirement pensions and related benefits is charged to the profit and loss account over the employees' service lives on the basis of a constant percentage of earnings. Any difference between the charge to the profit and loss account and the contributions paid to the scheme is shown as an asset or liability in the balance sheet. |
The group also operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable. |
Investments |
Fixed asset investments are stated at cost less provision for diminution in value. |
Current asset investment are stated at the lower of cost and net realisable value. |
Going concern |
At the time of approving the financial statements,the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Basic financial instruments |
Basic financial liabilities, including trade and other debtors, bank loans and other loans are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future receipts discounted at a market rate of interest. |
Freehold Property |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Freehold property - not provided |
Plant and machinery - between 4% and 12.5% on cost |
Under the transitional provisions of FRS 102 (March 2018) Triennial review provisions of the company has transferred properties let to group companies out of investment property and treated them as freehold land and buildings with a transition date of 1 January 2018, using the market value at that date as deemed cost. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the group. |
No analysis of turnover by geographical market is provided as the directors are of the opinion that such disclose would be prejudicial to the interests of the group. |
4. | EMPLOYEES AND DIRECTORS |
31.12.22 | 31.12.21 |
£ | £ |
Wages and salaries | 2,475,367 | 2,120,995 |
Social security costs | 263,6074 | 214,105 |
Other pension costs | 69,774 | 54,405 |
2,808,784 | 2,389,505 |
The average number of employees during the year was as follows: |
31.12.22 | 31.12.21 |
Sales and administration | 18 | 18 |
Production | 47 | 45 |
65 | 63 |
31.12.23 | 31.12.22 |
£ | £ |
Directors' remuneration | 345,755 | 218,755 |
Directors' pension contributions to money purchase schemes | 28,400 | 24,000 |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
Information regarding the highest paid director is as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Emoluments etc | 89,714 | 86,305 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.12.23 | 31.12.22 |
£ | £ |
Other operating leases | - | 4,913 |
Depreciation - owned assets | 409,985 | 396,486 |
Profit on disposal of fixed assets | (45,686 | ) | (1,500 | ) |
Other intangible assets amortisation | 131,072 | 131,071 |
Auditors remuneration: - audit services | 19,000 | 17,750 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.23 | 31.12.22 |
£ | £ |
Bank interest | 221,989 | 163,060 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Current tax: |
UK corporation tax | 53,000 | 175,060 |
Adjustment for prior year | (13,053 | ) | 1,323 |
Total current tax | 39,947 | 176,383 |
Deferred tax | (25,000 | ) | 44,000 |
Tax on profit | 14,947 | 220,383 |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
NOTES TO THE CONSOLIDATED 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 lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31.12.23 | 31.12.22 |
£ | £ |
Profit before tax | 63,586 | 958,441 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.520 % (2022 - 19 %) |
14,955 |
182,104 |
Effects of: |
Expenses not deductible for tax purposes | (13,442 | ) | (5,295 | ) |
Income not taxable for tax purposes | (10,746 | ) | - |
Capital allowances in excess of depreciation | - | (38,182 | ) |
Depreciation in excess of capital allowances | 31,537 | - |
Adjustments to tax charge in respect of previous periods | (13,053 | ) | 1,323 |
Deferred tax | (25,000 | ) | 44,000 |
Consolidation adjustments | 30,802 | 24,904 |
Other tax adjustments | (106 | ) | 11,529 |
Total tax charge | 14,947 | 220,383 |
Tax effects relating to effects of other comprehensive income |
31.12.23 |
Gross | Tax | Net |
£ | £ | £ |
Actuarial gain/(loss) on pension scheme | (21,000 | ) | - | (21,000 | ) |
Asset curtailments | (41,000 | ) | - | (41,000 | ) |
(62,000 | ) | - | (62,000 | ) |
31.12.22 |
Gross | Tax | Net |
£ | £ | £ |
Actuarial gain/(loss) on pension scheme | 441,000 | (81,000 | ) | 360,000 |
Asset curtailments | (84,000 | ) | - | (84,000 | ) |
357,000 | (81,000 | ) | 276,000 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Other |
intangible |
assets |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 | 655,358 |
AMORTISATION |
At 1 January 2023 | 524,286 |
Amortisation for year | 131,072 |
At 31 December 2023 | 655,358 |
NET BOOK VALUE |
At 31 December 2023 | - |
At 31 December 2022 | 131,072 |
10. | TANGIBLE FIXED ASSETS |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Plant and machinery - 20% on cost and 10% on cost |
Motor vehicles - 20% on cost |
Computer equipment - 25% on cost, 20% on cost and 10% on cost |
Cost or valuation at 31 December 2023 is represented by: |
Improvements |
Freehold | Long | to |
property | leasehold | property |
£ | £ | £ |
Valuation in 2019 | 441,240 | - | - |
Valuation in 2021 | 650,000 | - | - |
Cost | 2,408,760 | 146,623 | 96,954 |
3,500,000 | 146,623 | 96,954 |
Plant and | Motor | Computer |
machinery | vehicles | equipment | Totals |
£ | £ | £ | £ |
Valuation in 2019 | - | - | - | 441,240 |
Valuation in 2021 | - | - | - | 650,000 |
Cost | 5,142,902 | 61,152 | 156,625 | 8,013,016 |
5,142,902 | 61,152 | 156,625 | 9,104,256 |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Company |
Improvements |
Freehold | to | Plant and |
property | property | machinery | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 January 2023 |
Additions |
At 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 |
Cost or valuation at 31 December 2023 is represented by: |
Improvements |
Freehold | to | Plant and |
property | property | machinery | Totals |
£ | £ | £ | £ |
Valuation in 2019 | 441,240 | - | - | 441,240 |
Valuation in 2021 | 650,000 | - | - | 650,000 |
Cost | 2,408,760 | 96,954 | 3,254,939 | 5,760,653 |
3,500,000 | 96,954 | 3,254,939 | 6,851,893 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: Gibbons Industrial Park, Dudley Road, Kingswinford, West Midlands, DY6 8XF |
Nature of business: |
% |
Class of shares: | holding |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
12. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 January 2023 |
and 31 December 2023 | 4,000,000 |
NET BOOK VALUE |
At 31 December 2023 | 4,000,000 |
At 31 December 2022 | 4,000,000 |
Fair value at 31 December 2023 is represented by: |
£ |
Valuation in 2015 | (2,469 | ) |
Valuation in 2019 | (28,463 | ) |
Valuation in 2021 | 750,000 |
Cost | 3,280,932 |
4,000,000 |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
12. | INVESTMENT PROPERTY - continued |
Company |
Total |
£ |
FAIR VALUE |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The trading estate owned by the company was revalued by surveyors at market value on an existing use basis. This has been split across invest,emt property let out by the company and freehold property utilised by the group. |
Fair value at 31 December 2023 is represented by: |
£ |
Valuation in 2015 | (2,469 | ) |
Valuation in 2019 | (28,463 | ) |
Valuation in 2021 | 750,000 |
Cost | 3,280,932 |
4,000,000 |
13. | STOCKS |
Group |
31.12.23 | 31.12.22 |
£ | £ |
Stocks | 6,613,328 | 3,939,034 |
The current replacement cost of stock is not materially different from the historic cost. |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Trade debtors | 5,161,610 | 4,610,366 |
Other debtors | - | 18,433 |
Directors' current accounts | 47,000 | - | - | - |
Tax | - | 20,000 |
VAT | - | - |
Prepayments | 170,293 | 82,847 |
5,378,903 | 4,731,646 |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 3,771,860 | 3,673,656 |
Other loans (see note 17) | 102,618 | 102,618 |
Hire purchase contracts (see note 18) | 6,679 | - |
Trade creditors | 8,871,853 | 5,002,976 |
Amounts owed to group undertakings | - | - |
Tax | (15,053 | ) | 125,000 |
Social security and other taxes | 73,386 | 100,772 |
VAT | 331,186 | 359,473 | - | 7,277 |
Other creditors | 61,511 | 70,986 |
No description | (2 | ) | - | - | - |
Directors' current accounts | 187,773 | 285,428 | 187,773 | 285,428 |
Accrued expenses | 256,420 | 359,976 |
13,648,231 | 10,080,885 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Bank loans (see note 17) | 16,380 | 26,545 |
Other loans (see note 17) | 357,512 | 442,471 |
Hire purchase contracts (see note 18) | 27,683 | - |
401,575 | 469,016 |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 3,761,572 | 3,663,728 |
Bank loans | 10,288 | 9,928 |
Other loans | 102,618 | 102,618 |
3,874,478 | 3,776,274 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 10,288 | 10,288 |
Other loans - 1-2 years | 102,618 | 102,618 | 102,618 |
112,906 | 112,906 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 6,092 | 16,257 |
Other loans - 1-2 years | 254,894 | 339,853 |
260,986 | 356,110 |
The group's bankers hold a fixed and floating charge over the group's assets and a legal charge over the property at Gibbons Industrial Park, Kingswinsford. Hire purchase liabilities are secured on the assets financed. |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
31.12.23 | 31.12.22 |
£ | £ |
Net obligations repayable: |
Within one year | 6,679 | - |
Between one and five years | 27,683 | - |
34,362 | - |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
19. | PROVISIONS FOR LIABILITIES |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 325,000 | 350,000 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 350,000 |
Credit to Income Statement during year | (25,000 | ) |
Balance at 31 December 2023 | 325,000 |
Company |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Credit to Income Statement during year | ( |
) |
Movement in the year |
Balance at 31 December 2023 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £ | £ |
Ordinary shares | £1 | 1,001 | 1,001 |
21. | RESERVES |
Group |
Retained | Revaluation | Other |
earnings | reserve | reserves | Totals |
£ | £ | £ | £ |
At 1 January 2023 | 1,553,102 | 1,091,240 | 5,695,628 | 8,339,970 |
Profit for the year | 48,639 | - | - | 48,639 |
Actuarial gains or losses on |
pension scheme assets | (21,000 | ) | - | - | (21,000 | ) |
Curtailment assets | (41,000 | ) | - | - | (41,000 | ) |
At 31 December 2023 | 1,539,741 | 1,091,240 | 5,695,628 | 8,326,609 |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
21. | RESERVES - continued |
Company |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2023 | 6,121,739 |
Profit for the year |
At 31 December 2023 | 7,210,375 |
22. | EMPLOYEE BENEFIT OBLIGATIONS |
The group makes contributions to a number of pension schemes. The main scheme for employees was established in September 1994 and is a hybrid scheme, being defined contribution in nature with benefits subject to requisite testing to guarantee minimum pensions. Since 31 December 1999 the scheme has ceased future accrual of benefits and no employees' contributions have been received in the scheme. |
An executive scheme is also operated and is a defined contribution scheme. |
The assets of the schemes are held separately to those of the group in independently administered funds. |
Hybrid scheme |
Contributions of £73,000 were made during the year (2021 - £57,000) to the scheme. |
A qualified independent actuary has updated the results of the valuation as at 31 December 2021 to 31 December 2022 to obtain the following figures in accordance with Financial Reporting Standard No. 102 ("FRS 102"). |
The amounts recognised in profit or loss are as follows: |
Defined benefit |
pension plans |
31.12.23 | 31.12.22 |
£ | £ |
Current service cost | - | - |
Net interest from net defined benefit asset/liability |
(5,000 |
) |
7,000 |
Past service cost | - | - |
Gains/losses on settlements and curtailments | 4,000 | - |
(1,000 | ) | 7,000 |
Actual return on plan assets | 75,000 | (298,000 | ) |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
22. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
Changes in the present value of the defined benefit obligation are as follows: |
Defined benefit |
pension plans |
31.12.23 | 31.12.22 |
£ | £ |
Opening defined benefit obligation | 901,000 | 1,520,000 |
Interest cost | 62,000 | 38,000 |
Actuarial losses/(gains) | 29,000 | (621,000 | ) |
Benefits paid | (177,000 | ) | (36,000 | ) |
815,000 | 901,000 |
Changes in the fair value of scheme assets are as follows: |
Defined benefit |
pension plans |
31.12.23 | 31.12.22 |
£ | £ |
Opening fair value of scheme assets | 901,000 | 1,097,000 |
Contributions by employer | 61,000 | 73,000 |
Expected return | 67,000 | 31,000 |
Actuarial gains/(losses) | 8,000 | (180,000 | ) |
Benefits paid | (177,000 | ) | (36,000 | ) |
Curtailments | (45,000 | ) | (84,000 | ) |
815,000 | 901,000 |
The amounts recognised in other comprehensive income are as follows: |
Defined benefit |
pension plans |
31.12.23 | 31.12.22 |
£ | £ |
Actuarial gains/(losses) on pensions scheme assets |
(62,000 |
) |
441,000 |
Movement on deferred tax relating to pension scheme assets |
- |
(81,000 |
) |
(62,000 | ) | 360,000 |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
22. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
The major categories of scheme assets as amounts of total scheme assets are as follows: |
Defined benefit |
pension plans |
31.12.23 | 31.12.22 |
£ | £ |
Equities | 161,000 | 143,000 |
Bonds | 448,000 | 434,000 |
Other assets | 251,000 | 408,000 |
Asset curtailments | (45,000 | ) | (84,000 | ) |
815,000 | 901,000 |
Principal actuarial assumptions at the balance sheet date (expressed as weighted averages): |
31.12.23 | 31.12.22 |
Discount rate | 4.80% | 5.05% |
Future pension increases | - | 3.00% |
Inflation | 3.05% | 3.15% |
To determine defined benefit obligations: |
Discount rate | 4.80% | 5.05% |
Duration used to set discount rate (in years) | 14.00 | 14.00 |
Price inflation rate (RPI) | 3.05% | 3.15% |
To determine cost relating to defined benefit plans: |
Discount rate | 5.05% | 1.85% |
Price inflation rate (RPI) | 3.15% |
3.35% |
23. | CONTINGENT LIABILITIES |
Group |
At the balance sheet date there were no contingent liabilities. |
Company |
The company is party to a group multilateral guarantee with its bankers. At the balance sheet date the liability under this guarantee amounted to £3,761,572 (2022 - £3,663,728). |
The company is also part of a group VAT registration. At the balance sheet date the liability arising under the group registration amounted to £337,321 (2022 - £352,196). |
UNITED STEELS HOLDING COMPANY LIMITED (REGISTERED NUMBER: 07423677) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
24. | POST BALANCE SHEET EVENTS |
On 8 August 2023, United Steels HOlding Company Limited sold its shareholding in United Steels Limited via a management buy-out, buy-in. A newly formed company, Unico Nex Gen Limited, co-owned by Mark Unitt and Glyn Costigan, acquired 100% of the share capital. |
The transaction also included the sale of the de-coiling plant and machinery previously hired to United Steels Limited. |
A post transaction condition of the sale is a name change for United Steels HOlding Company Limited which will become GCD 2024 Limited. |
25. | CONTROL |
The company is controlled by The Estate of G J Cashmore who owns 100% of the issued shared capital. |