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Registered number: 08356072









STRUKTA GROUP LIMITED









GROUP ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
STRUKTA GROUP LIMITED
 
 
COMPANY INFORMATION


Directors
Adrian Diffey 
Benjamin Diffey 
Kevin Diffey 
Mark Diffey 
Lauren James Moggach 
Myles Stuart Moggach 
Piers Moggach 




Registered number
08356072



Registered office
36 Walworth Road

Andover

Hampshire

SP10 5LH




Independent auditors
Clifford Fry & Co LLP (Statutory auditors)

St Mary's House

Netherhampton

Salisbury

Wiltshire

SP2 8PU





 
STRUKTA GROUP LIMITED
 

CONTENTS



Page
Group strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Consolidated statement of income and retained earnings
9
Consolidated balance sheet
10 - 11
Company balance sheet
12 - 13
Consolidated statement of changes in equity
14 - 15
Company statement of changes in equity
16 - 17
Consolidated statement of cash flows
18 - 19
Consolidated analysis of net debt
20
Notes to the financial statements
21 - 41


 
STRUKTA GROUP LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Vision
 
We remain focused and committed to our vision of ‘Construction solutions delivered fast!’ 

Organisational Structure and Governance
 
The Board, chaired by the CEO, convenes quarterly and includes three working directors alongside non-executive directors. This diverse Board composition ensures comprehensive coverage of all commercial areas, including HR, Finance, and Professional Services. Weekly meetings with the senior leadership team feature representatives from Sales, Operations, Finance, Marketing, and IT. We conduct an annual review of our governance processes and risk register, including business continuity.

Review of the Business
 
The first half of the year mirrored 2022, with strong demand for goods. The second half proved more challenging due to interest rate impacts on the housing market. We acquired SNS Building Products Ltd on June 30, 2023, adding two trade stores to our group, a strategic fit both geographically and product-wise. Despite the economic climate, including a 44% drop in new home registrations and a 20% fall in new home completions, our turnover increased by 11.6%, reflecting our resilience and continued growth in market share.
Key Points:
- Operational net return stood at £2.9M (£2.4M operating profit plus £454K goodwill write-off), representing a 9% return on overall revenue—a market-leading performance.
- The goodwill from original partnerships and investments in Taunton and Biggleswade was fully amortised in 2023. The first-year amortisation of SNS Building Products Ltd was also completed. Directors’ Loan accounts totalled £2.02M, highlighting ongoing support by the shareholders, for the company's growth.
- Our online customer portal, launched in 2022, saw increased adoption, allowing customers to track deliveries, check stock, place orders, and manage their accounts.

Future Development
 
Our forward order book is at an all-time high, with positive signs emerging in the construction sector. Despite economic uncertainties, the directors see growth opportunities as we expand geographically. With the acquisition of SNS and additional store openings, we now operate 10 trade stores across the south of the country. We've rebranded the SNS stores to ensure consistency across the Group and expanded our sales team into the Midlands to extend our market-leading service.

Page 1

 
STRUKTA GROUP LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Operational Risk
 
Quality of Service
With extensive experience in the Building Sector, we rely on robust operational and marketing systems regularly reviewed for quality assurance (ISO9001/ISO14001/CE) and corporate governance. Continuous improvement of our procedures remains a priority.
Environmental, Social, and Governance (ESG)
We take our impact on society, the environment, and our transparency and accountability seriously. Over the past year, we measured our carbon footprint and social value, engaging employees to achieve sustainability goals.
The Market Place
Despite a decline in inflation, sustained high interest rates have affected the economy, particularly the construction sector. However, the UK returned to growth in H1 2024, and medium-term interest rate reductions are expected to boost sector confidence and growth. With the desire within Government to build 1.5M homes in the next 5 years, the industry is on a positive trajectory. The directors remain optimistic about existing opportunities and believe the business is well-positioned to capitalise on future potential.
Quality of Staff
Our staff are our priority. We continue to appraise and train our team to ensure top-quality service. Customer service is paramount, and our growth depends on our staff’s ability to meet customer needs.

Financial Key performance Indicators for the year ending 31 December 2023
 
-Sales Growth 11.6% (Dec 2022 23%)
- Gross Profit Margin 29% (Dec 2022 30%)
- Overheads 21% (Dec 2022 17%)
- Operational Net Profit 8% (Dec 2022 14%)
- Operational Net Profit before goodwill write-off £2.9m (Dec 2022 £3.9m)
- Goodwill write off £454K (Dec 2022 £395K)
- Net Current Assets £4M (Dec 2022 £5M)


This report was approved by the board on 31 August 2024 and signed on its behalf.



................................................
Adrian Diffey
Director

Page 2

 
STRUKTA GROUP LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and 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 for the Group's financial statements 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 Group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £1,553,963 (2022 - £2,710,624).

The directors have paid dividends of £2,207,700 (2022 - £2,676,920).

Directors

The directors who served during the year and their interests in the Group's issued share capital were:

Ordinary shares
of £1 each
Ordinary 'A' shares
of £1 each

31/12/23

1/1/23


31/12/23

1/1/23


Adrian Diffey 
11,000
11,000
1
1
Benjamin Diffey 
5,500
5,500
1
1
Kevin Diffey 
5,500
5,500
1
1
Mark Diffey 
5,500
5,500
1
1
Lauren James Moggach 
5,500
5,500
1
1
Myles Stuart Moggach 
5,500
5,500
1
1
Piers Moggach 
5,500
5,500
1
1


Page 3

 
STRUKTA GROUP LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Future developments

The market for our services is expected to continue to expand into 2024. The Group will continue to develop new services to help place it in a stong position to support the continual growth.

Disclosure of information to auditors

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

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

Post balance sheet events

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

Auditors

The auditorsClifford Fry & Co LLP (Statutory auditors)will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 31 August 2024 and signed on its behalf.
 





................................................
Adrian Diffey
Director

Page 4

 
STRUKTA GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STRUKTA GROUP LIMITED
 

Opinion


We have audited the financial statements of Strukta Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated statement of income and retained earnings, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or 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.


Page 5

 
STRUKTA GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STRUKTA GROUP LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the 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 Directors' report.


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


adequate accounting records have not been kept 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 Directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the 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.


Page 6

 
STRUKTA GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STRUKTA GROUP LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

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

We gained an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates, including obtaining details on how they identify and comply with laws and regulations and whether they were aware of any non-compliance, how they detect and respond to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud, and finally the controls they have in order to mitigate risks of fraud or non-compliance with laws and regulations.
We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, intentional misrepresentations.
As a result of these procedures, we considered the opportunities and incentives that may exist within the
organisation for fraud and identified the greatest potential for fraud in the following areas: revenue and profit
recognition.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to,  the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud, reviewing minutes of meetings and enquiries with management.
We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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


Page 7

 
STRUKTA GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF STRUKTA GROUP LIMITED (CONTINUED)


Use of our report
 

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





S M Allenby FCA (Senior statutory auditor)
  
for and on behalf of
Clifford Fry & Co LLP (Statutory auditors)
 
St Mary's House
Netherhampton
Salisbury
Wiltshire
SP2 8PU

31 August 2024
Page 8

 
STRUKTA GROUP LIMITED
 
 
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
31,279,317
28,030,027

Cost of sales
  
(22,258,195)
(19,637,728)

Gross profit
  
9,021,122
8,392,299

Administrative expenses
  
(6,597,327)
(4,770,801)

Other operating income
 5 
7,510
-

Operating profit
 6 
2,431,305
3,621,498

Goodwill impairment
  
(37,082)
-

Interest receivable and similar income
 10 
75,892
5,519

Interest payable and similar expenses
 11 
(194,842)
(161,647)

Profit before tax
  
2,275,273
3,465,370

Tax on profit
 12 
(721,310)
(754,746)

Profit after tax
  
1,553,963
2,710,624

  

  

Retained earnings at the beginning of the year
  
4,199,381
4,165,677

Profit for the year attributable to the owners of the parent
  
1,553,963
2,710,624

Dividends declared and paid
 13 
(2,207,700)
(2,676,920)

Retained earnings at the end of the year
  
3,545,644
4,199,381

  

There were no recognised gains and losses for 2023 or 2022 other than those included in the consolidated statement of income and retained earnings.

The notes on pages 21 to 41 form part of these financial statements.

Page 9

 
STRUKTA GROUP LIMITED
REGISTERED NUMBER: 08356072

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 14 
1,994,661
252,015

Tangible assets
 15 
1,663,234
1,450,802

  
3,657,895
1,702,817

Current assets
  

Stocks
 17 
2,736,830
2,571,456

Debtors: amounts falling due within one year
 18 
3,831,401
3,258,256

Cash at bank and in hand
 19 
3,570,683
4,488,885

  
10,138,914
10,318,597

Creditors: amounts falling due within one year
 20 
(5,942,848)
(5,022,469)

Net current assets
  
 
 
4,196,066
 
 
5,296,128

Total assets less current liabilities
  
7,853,961
6,998,945

Creditors: amounts falling due after more than one year
 21 
(2,681,730)
(2,460,477)

Provisions for liabilities
  

Deferred taxation
 25 
(322,147)
(289,078)

  
 
 
(322,147)
 
 
(289,078)

Net assets
  
4,850,084
4,249,390


Capital and reserves
  

Called up share capital 
 26 
52,641
50,009

Other reserves
 27 
1,251,799
-

Profit and loss account
 27 
3,545,644
4,199,381

  
4,850,084
4,249,390


Page 10

 
STRUKTA GROUP LIMITED
REGISTERED NUMBER: 08356072
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 31 August 2024.




................................................
Adrian Diffey
Director

The notes on pages 21 to 41 form part of these financial statements.

Page 11

 
STRUKTA GROUP LIMITED
REGISTERED NUMBER: 08356072

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 14 
1,994,661
252,015

Tangible assets
 15 
1,663,234
1,450,802

Investments
 16 
1,213,711
250,001

  
4,871,606
1,952,818

Current assets
  

Stocks
 17 
2,736,830
2,571,456

Debtors: amounts falling due within one year
 18 
3,831,401
3,258,256

Cash at bank and in hand
 19 
3,570,682
4,488,884

  
10,138,913
10,318,596

Creditors: amounts falling due within one year
 20 
(6,243,848)
(5,272,469)

Net current assets
  
 
 
3,895,065
 
 
5,046,127

Total assets less current liabilities
  
8,766,671
6,998,945

  

Creditors: amounts falling due after more than one year
 21 
(2,681,730)
(2,460,477)

Provisions for liabilities
  

Deferred taxation
 25 
(322,147)
(289,078)

  
 
 
(322,147)
 
 
(289,078)

Net assets
  
5,762,794
4,249,390


Capital and reserves
  

Called up share capital 
 26 
52,641
50,009

Other reserves
 27 
1,251,799
-

Profit and loss account brought forward
  
4,199,381
4,165,677

Profit for the year
  
2,466,673
2,710,624

Other changes in the profit and loss account

  

(2,207,700)
(2,676,920)

Profit and loss account carried forward
  
4,458,354
4,199,381

  
5,762,794
4,249,390


Page 12

 
STRUKTA GROUP LIMITED
REGISTERED NUMBER: 08356072
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 31 August 2024.


................................................
Adrian Diffey
Director

The notes on pages 21 to 41 form part of these financial statements.

Page 13

 
STRUKTA GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Other reserves
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£
£

At 1 January 2023
50,009
-
4,199,381
4,249,390
4,249,390


Comprehensive income for the year

Profit for the year
-
-
1,553,963
1,553,963
1,553,963
Total comprehensive income for the year
-
-
1,553,963
1,553,963
1,553,963


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(2,207,700)
(2,207,700)
(2,207,700)

Shares issued during the year
2,632
-
-
2,632
2,632

Merger reserve
-
1,251,799
-
1,251,799
1,251,799


Total transactions with owners
2,632
1,251,799
(2,207,700)
(953,269)
(953,269)


At 31 December 2023
52,641
1,251,799
3,545,644
4,850,084
4,850,084


The notes on pages 21 to 41 form part of these financial statements.

Page 14

 
STRUKTA GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£

At 1 January 2022
50,000
4,165,677
4,215,677
4,215,677


Comprehensive income for the year

Profit for the year
-
2,710,624
2,710,624
2,710,624
Total comprehensive income for the year
-
2,710,624
2,710,624
2,710,624


Contributions by and distributions to owners

Dividends: Equity capital
-
(2,676,920)
(2,676,920)
(2,676,920)

Shares issued during the year
9
-
9
9


Total transactions with owners
9
(2,676,920)
(2,676,911)
(2,676,911)


At 31 December 2022
50,009
4,199,381
4,249,390
4,249,390


The notes on pages 21 to 41 form part of these financial statements.

Page 15

 
STRUKTA GROUP LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Other reserves
Profit and loss account
Total equity

£
£
£
£

At 1 January 2023
50,009
-
4,199,381
4,249,390


Comprehensive income for the year

Profit for the year
-
-
2,466,673
2,466,673
Total comprehensive income for the year
-
-
2,466,673
2,466,673


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(2,207,700)
(2,207,700)

Shares issued during the year
2,632
-
-
2,632

Merger reserve
-
1,251,799
-
1,251,799


Total transactions with owners
2,632
1,251,799
(2,207,700)
(953,269)


At 31 December 2023
52,641
1,251,799
4,458,354
5,762,794


The notes on pages 21 to 41 form part of these financial statements.

Page 16

 
STRUKTA GROUP LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2022
50,000
4,165,677
4,215,677


Comprehensive income for the year

Profit for the year
-
2,710,624
2,710,624
Total comprehensive income for the year
-
2,710,624
2,710,624


Contributions by and distributions to owners

Dividends: Equity capital
-
(2,676,920)
(2,676,920)

Shares issued during the year
9
-
9


Total transactions with owners
9
(2,676,920)
(2,676,911)


At 31 December 2022
50,009
4,199,381
4,249,390


The notes on pages 21 to 41 form part of these financial statements.

Page 17

 
STRUKTA GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
1,553,963
2,710,624

Adjustments for:

Amortisation of intangible assets
454,062
394,867

Depreciation of tangible assets
431,570
393,787

Impairments of fixed assets
37,082
-

Loss on disposal of tangible assets
19,176
5,764

Interest paid
194,842
161,647

Interest received
(75,892)
(5,519)

Taxation charge
755,079
754,746

(Increase) in stocks
(165,374)
(164,751)

(Increase) in debtors
(573,145)
(481,386)

Increase in creditors
539,318
1,659,063

Corporation tax (paid)
(703,400)
(798,307)

Net cash generated from operating activities

2,467,281
4,630,535


Cash flows from investing activities

Purchase of intangible fixed assets
(2,233,790)
-

Purchase of tangible fixed assets
(695,220)
(1,005,203)

Sale of tangible fixed assets
32,042
30,699

Interest received
75,892
5,519

HP interest paid
(30,360)
(14,086)

Net cash from investing activities

(2,851,436)
(983,071)
Page 18

 
STRUKTA GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022

£
£



Cash flows from financing activities

Issue of ordinary shares
2,632
9

New secured loans
719,831
-

Repayment of/new finance leases
(136,127)
370,516

Dividends paid
(2,207,700)
(2,676,920)

Interest paid
(164,482)
(147,561)

Merger reserve
1,251,799
-

Net cash used in financing activities
(534,047)
(2,453,956)

Net (decrease)/increase in cash and cash equivalents
(918,202)
1,193,508

Cash and cash equivalents at beginning of year
4,488,885
3,295,377

Cash and cash equivalents at the end of year
3,570,683
4,488,885


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
3,570,683
4,488,885

3,570,683
4,488,885


The notes on pages 21 to 41 form part of these financial statements.

Page 19

 
STRUKTA GROUP LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

4,488,885

(918,202)

3,570,683

Debt due after 1 year

(75,000)

(557,673)

(632,673)

Debt due within 1 year

(450,000)

(112,158)

(562,158)

Finance leases

(642,780)

136,127

(506,653)


3,321,105
(1,451,906)
1,869,199

The notes on pages 21 to 41 form part of these financial statements.

Page 20

 
STRUKTA GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Strukta Group Limited was incorporated and registered  in England & Wales and is a private group limited by share capital. The Group is primarily involved in the sale of building products to the construction industry.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of income and retained earnings in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of income and retained earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 December 2014.

Page 21

 
STRUKTA GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Group's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Page 22

 
STRUKTA GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.5

Operating leases: the Group as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Borrowing costs

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

 
2.9

Pensions

Defined contribution pension plan

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

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

Page 23

 
STRUKTA GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

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

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

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

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

 
2.11

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of income and retained earnings over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Page 24

 
STRUKTA GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

Tangible fixed assets

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance and straight line basis.

Depreciation is provided on the following basis:

Leasehold property improvements
-
over the term of the lease, 9 - 10 years
Plant and machinery
-
20% reducing balance
Motor vehicles
-
25% reducing balance
Office equipment
-
20% reducing balance
Computer equipment
-
33% straight line

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

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

 
2.13

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.15

Stocks

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

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

Page 25

 
STRUKTA GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.16

Debtors

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

 
2.17

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.18

Creditors

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

 
2.19

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.20

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Page 26

 
STRUKTA GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.21

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The directors do not believe that the financial statements are materially impacted by their use of judgements.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Sale of goods
31,279,317
28,030,027

31,279,317
28,030,027


All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Net rents receivable
7,510
-

7,510
-



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
6,107
9,977

Other operating lease rentals
773,317
565,056

Page 27

 
STRUKTA GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
22,837
15,771

Fees payable to the Company's auditors in respect of:

The auditing of accounts of subsidiaries of the Company
5,800
-


8.


Employees

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


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
4,527,863
3,350,561
4,164,246
3,350,561

Social security costs
434,825
334,667
405,294
334,667

Cost of defined contribution scheme
55,276
39,160
49,186
39,160

5,017,964
3,724,388
4,618,726
3,724,388


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



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Employees
138
100
115
100


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
88,200
149,603

88,200
149,603


Page 28

 
STRUKTA GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Interest receivable

2023
2022
£
£


Other interest receivable
75,892
5,519

75,892
5,519


11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
6,459
-

Other loan interest payable
38,982
20,299

Finance leases and hire purchase contracts
30,360
14,086

Other interest payable
119,041
127,262

194,842
161,647


12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
722,010
565,757


Total current tax
722,010
565,757

Deferred tax


Origination and reversal of timing differences
(700)
188,989

Total deferred tax
(700)
188,989


Tax on profit
721,310
754,746
Page 29

 
STRUKTA GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 19% to 31 March 2023 and 25% from 1 April 2023 (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
2,275,273
3,465,370


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
568,818
658,420

Effects of:


Non-tax deductible amortisation of goodwill and impairment
111,016
68,375

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
13,427
6,345

Capital allowances for year in excess of depreciation
11,364
(167,383)

Other timing differences leading to an increase (decrease) in taxation
(700)
188,989

Other differences leading to an increase (decrease) in the tax charge
17,385
-

Total tax charge for the year
721,310
754,746


Factors that may affect future tax charges

The increase in tax charge may affect future tax charges.


13.


Dividends

2023
2022
£
£


Dividends paid on Ordinary shares
1,250,000
1,797,500


Dividends paid on Preference shares
50,000
50,000


Dividends paid on Ordinary A shares
880,959
829,420


Dividends paid on Ordinary B shares
26,741
-

2,207,700
2,676,920

Page 30

 
STRUKTA GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Intangible assets

Group





Goodwill

£



Cost


At 1 January 2023
3,817,419


Additions
2,233,790



At 31 December 2023

6,051,209



Amortisation


At 1 January 2023
3,565,404


Charge for the year on owned assets
454,062


Impairment charge
37,082



At 31 December 2023

4,056,548



Net book value



At 31 December 2023
1,994,661



At 31 December 2022
252,015



Page 31

 
STRUKTA GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
           14.Intangible assets (continued)

Company




Goodwill

£



Cost


At 1 January 2023
3,817,419


Additions
2,216,290



At 31 December 2023

6,033,709



Amortisation


At 1 January 2023
3,565,404


Charge for the year
436,562


Impairment charge
37,082



At 31 December 2023

4,039,048



Net book value



At 31 December 2023
1,994,661



At 31 December 2022
252,015

Page 32

 
STRUKTA GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Tangible fixed assets

Group and Company






Leasehold improve - ments
Plant and machinery
Motor vehicles
Computer & office equipment
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
649,860
265,855
1,333,032
320,365
2,569,112


Additions
127,131
432,371
59,148
76,570
695,220


Disposals
-
(41,889)
(44,934)
(172,302)
(259,125)



At 31 December 2023

776,991
656,337
1,347,246
224,633
3,005,207



Depreciation


At 1 January 2023
196,909
114,941
533,820
272,640
1,118,310


Charge for the year on owned assets
77,792
49,410
27,918
40,388
195,508


Charge for the year on financed assets
-
50,526
185,536
-
236,062


Disposals
-
(5,764)
(33,430)
(168,713)
(207,907)



At 31 December 2023

274,701
209,113
713,844
144,315
1,341,973



Net book value



At 31 December 2023
502,290
447,224
633,402
80,318
1,663,234



At 31 December 2022
452,951
150,914
799,212
47,725
1,450,802

All of the Group's tangible fixed assets are held in the Parent company.

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


2023
2022
£
£



Plant and machinery
202,104
78,324

Motor vehicles
586,521
744,301

788,625
822,625

Page 33

 
STRUKTA GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
250,001


Additions
963,710



At 31 December 2023
1,213,711






Net book value



At 31 December 2023
1,213,711



At 31 December 2022
250,001

On 30.06.2023, Strukta Group Limited acquired a 100% owned subsidiary, SNS Building Products Limited accounted for under the merger method of accounting for £3,180,000, consisting of issuing new B Shares valued at £1,300,000, cash consideration and deferred consideration to be paid off with monthly installments.


Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Strukta (Taunton) Limited
36 Walworth Road, Andover, Hampshire, SP10 5LH
Ordinary
100%
Tychon (SP) Limited
36 Walworth Road, Andover, Hampshire, SP10 5LH
Ordinary
100%
SNS Building Products Limited
36 Walworth Road, Andover, Hampshire, SP10 5LH
Ordinary
100%

Page 34

 
STRUKTA GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Subsidiary undertakings (continued)

The aggregate of the share capital and reserves as at 31 December 2023 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Strukta (Taunton) Limited
250,000
-

Tychon (SP) Limited
1
-

SNS Building Products Limited
51,000
(31,924)


17.


Stocks

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Finished goods and goods for resale
2,736,830
2,571,456
2,736,830
2,571,456

2,736,830
2,571,456
2,736,830
2,571,456



18.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
3,383,834
2,857,047
3,383,834
2,857,047

Other debtors
61,874
32,450
61,874
32,450

Prepayments and accrued income
385,693
368,759
385,693
368,759

3,831,401
3,258,256
3,831,401
3,258,256



19.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
3,570,683
4,488,885
3,570,682
4,488,884

3,570,683
4,488,885
3,570,682
4,488,884


Page 35

 
STRUKTA GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
162,158
-
162,158
-

Trade creditors
3,008,631
3,220,119
3,008,631
3,220,119

Amounts owed to group undertakings
-
-
301,000
250,000

Corporation tax
207,057
188,447
207,057
188,447

Other taxation and social security
463,267
253,831
463,267
253,831

Obligations under finance lease and hire purchase contracts
289,599
290,093
289,599
290,093

Other creditors
1,562,430
981,657
1,562,430
981,657

Accruals and deferred income
249,706
88,322
249,706
88,322

5,942,848
5,022,469
6,243,848
5,272,469





The following liabilities were secured:
Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Hire purchase contracts
289,599
290,093
289,599
290,093

289,599
290,093
289,599
290,093

Details of security provided:

The hire purchase contracts are secured on the assets concerned.

Page 36

 
STRUKTA GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

21.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
557,673
-
557,673
-

Net obligations under finance leases and hire purchase contracts
217,054
352,687
217,054
352,687

Other creditors
1,832,003
2,032,790
1,832,003
2,032,790

Share capital treated as debt
75,000
75,000
75,000
75,000

2,681,730
2,460,477
2,681,730
2,460,477


Disclosure of the terms and conditions attached to the non-equity shares is made in note 26.


The following liabilities were secured:
Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Hire purchase contracts
217,054
352,687
217,054
352,687

217,054
352,687
217,054
352,687

Details of security provided:

The hire purchase contracts are secured on the assets concerned.




22.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Amounts falling due within one year

Bank loans
162,158
-
162,158
-

Amounts falling due 1-2 years

Bank loans
557,673
-
557,673
-



719,831
-
719,831
-


Page 37

 
STRUKTA GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

23.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Within one year
289,599
290,093
289,599
290,093

Between 1-5 years
217,054
352,687
217,054
352,687

506,653
642,780
506,653
642,780

Certain plant and machinery and motor vehicles are held under hire purchase arrangements. Hire purchase liabilities are secured by the related assets held under hire purchase. The lease agreements generally include fixed payments and a purchase option at the end of the term.


24.


Financial instruments

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Financial assets

Financial assets measured at fair value through profit or loss
3,570,683
4,488,885
3,570,682
4,488,884




Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.


25.


Deferred taxation


Group





2023


£






At beginning of year
(289,078)


Charged to profit or loss
(33,069)



At end of year
(322,147)

Page 38

 
STRUKTA GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
25.Deferred taxation (continued)

Company




2023


£






At beginning of year
(289,078)


Charged to profit or loss
(33,069)



At end of year
(322,147)

The provision for deferred taxation is made up as follows:

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
(322,147)
(289,078)
(322,147)
(289,078)

(322,147)
(289,078)
(322,147)
(289,078)


26.


Share capital

2023
2022
£
£
Shares classified as equity

Allotted, called up and fully paid



50,000 (2022 - 50,000) Ordinary shares of £1 each
50,000
50,000
9 (2022 - 9) Ordinary 'A' shares of £1 each
9
9
2,632 (2022 - nil) Ordinary 'B' shares of £1 each
2,632
-

52,641

50,009

2023
2022
£
£
Shares classified as debt

Allotted, called up and fully paid



75,000 (2022 - 75,000) Preference shares of £1 each
75,000
75,000


The 75,000 £1 Preference shares bear interest of 5% over base rate over a five year period which commenced in 2021.

Page 39

 
STRUKTA GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

26.Share capital (continued)

During the year, 2,632 Ordinary 'B' shares of £1 were issued and £493.92 was paid per share.


27.


Reserves

Merger Reserve

Includes all monies above the nominal value of the shares issued as part of the consideration paid for the
subsidiary company SNS Building Products Limited and the subsequent impairment of the value of this
company due to the hive up within the parent company.

Profit and loss account

Includes all current and prior year retained profits and losses.


28.


Pension commitments

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group  in an independently administered fund. The pension cost charge represents contributions payable by the Group  to the fund and amounted to £55,276 (2022 - £39,160). Contributions totalling £11,804 (2022 - £7,916) were payable to the fund at the balance sheet date and are included in creditors.


29.


Commitments under operating leases

At 31 December 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Not later than 1 year
802,585
521,071
802,585
521,071

Later than 1 year and not later than 5 years
1,534,388
1,049,837
1,534,388
1,049,837

Later than 5 years
127,014
40,300
127,014
40,300

2,463,987
1,611,208
2,463,987
1,611,208

Page 40

 
STRUKTA GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

30.


Related party transactions

During the year the Company paid rent to the following directors for premises which they own and the Company leases from them:-        
Adrian Diffey £16,875 (2022 - £14,916)        
Mark Diffey £16,875 (2022 - £14,916)        
Benjamin Diffey £16,875 (2022 - £14,916)        
Kevin Diffey £16,875 (2022 - £14,916)       
             
The Company entered into the following transactions with Masonport LLP, a business in which the  directors Adrian Diffey, Mark Diffey, Benjamin Diffey and Kevin Diffey are all partners. Masonport LLP advanced the Company £390,000 as a loan in 2016. Interest of £19,500 (2022 - £19,500) was paid to Masonport LLP in respect of this loan. The balance of £390,000 was outstanding at the year end (2022 - £390,000). This balance is included in Other creditors.                      
The Company owns 100% of the ordinary shares of Strukta (Taunton) Limited, a dormant company. At the year end Strukta (Taunton) Ltd  was owed £250,000 by the Company (2022 - £250,000) included within Creditors.
Strukta Group Limited obtained 100% of the share capital of SNS Building Products Limited on 30 June 2023. During the year, the Company sold goods amounting to £213,761 and charged a management fee/recharge of costs of £194,537 to  SNS Building Products Limited. The Company purchased goods from SNS Building Products Limited amounting to £575,633. At the year end, the Company owed £51,000 to SNS Building Products Limited.                     
Key management personnel compensation during the year was £25,200 (2022 - £83,109).


31.


Controlling party

There is no ultimate controlling party.

Page 41