Company registration number 02065601 (England and Wales)
REYNAERS ALUMINIUM LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
REYNAERS ALUMINIUM LIMITED
COMPANY INFORMATION
Directors
Mr J P McComb
Mr Ian Clayton
Mr R Hall
Mr Bert Geerinckx
Secretary
Mr Ian Clayton
Company number
02065601
Registered office
111 Hollymoor Way
Northfield
Birmingham
B31 5HE
Auditor
CK Audit
No 4 Castle Court 2
Castlegate Way
Dudley
West Midlands
DY1 4RH
Business address
111 Hollymoor Way
Northfield
Birmingham
B31 5HE
Bankers
National Westminster Bank Plc
Birmingham City Centre
1 St Philips Place
Birmingham
B3 2PP
Solicitors
Shakespeare Martineau
1 Colmore Row
Birmingham
B4 6AA
REYNAERS ALUMINIUM LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
REYNAERS ALUMINIUM LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Fair review of the business

The principal activity of the company during the year continued to be the design, stockholding and distribution of architectural aluminium systems.

We aim to present a balanced and comprehensive review of the financial development and performance of our business during the year and at the year end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties that we face.

 

Operating solely within the UK construction industry, we design, stock and distribute aluminium systems for windows, doors and curtain walling, as well as for other types of fenestration products. These complete aluminium systems are then sold to fabricators, along with the processing and manufacturing software, machinery and technical support required to conform to rigorous performance specifications. Our sales and marketing activity is directed at the aluminium window and door fabricators who are our direct customers, as well as the installers, main contractors, developers, architects and homeowners, who are key influencers.

 

We consider that our key performance indicators are those that measure and communicate the financial performance and strength of the company as a whole - these being turnover and operating profit.

 

The aluminium systems market contracted in 2023, largely down to the sharp decline in the private housing sector – both new build and also repair, maintenance and improvement. There was a small drop in the commercial projects sector as well, however this was not to the same extent. Our commercial project sales increased in 2023, but overall Reynaers Aluminium sales dropped 7.6% to £28,788,154 due to the challenges within the private housing sector.

 

Once again, continued price inflation of commodities placed a significant pressure on gross margin, due to the full impact not being passed on to our customers. Consequently, our gross margin fell again in percentage terms compared with the previous year. Whilst overheads continued to be managed prudently, the high cost of living increases in 2023 had a significant impact on operating profit, which was a lower percentage of sales when compared with 2022.

 

Moving into 2024, we remain committed to a balanced commercial and trade and retail business model. Our strategic plan is to grow our sales in both sectors, having invested considerably in each. Our focus is on putting our customers at the heart of what we do, accelerating sustainability and investing in our people.

 

 

REYNAERS ALUMINIUM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

The largest risk to growth is the continued slowdown in the aluminium systems market. We will continue to manage our costs prudently, whilst at the same time focus on investing in areas and activities where we can differentiate, add value and continue to support our partners, whilst securing long-term profitable growth.

 

On behalf of the board

Mr R Hall
Director
5 June 2024
REYNAERS ALUMINIUM LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities
The principal activity of the company during the year continues to be the design, stockholding and distribution of architectural aluminium systems.
Results and dividends

The results for the year are set out on Page 6.

Ordinary dividends were paid amounting to £3,285,000. The directors do not recommend payment of a further dividend.

Directors

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

Mr J P McComb
Mr Ian Clayton
Mr R Hall
Mr Bert Geerinckx
Auditor

In accordance with the company's articles, a resolution proposing that CK Audit be reappointed as auditor of the company will be put at a General Meeting.

 

 

Statement of disclosure to auditor

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

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr R Hall
Director
5 June 2024
REYNAERS ALUMINIUM LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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

 

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

 

 

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

REYNAERS ALUMINIUM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF REYNAERS ALUMINIUM LIMITED
- 5 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identified and assessed the risks of material misstatement of the financial statement, in respect of irregularities whether due to fraud or error, or non compliance with laws and regulations and then designed and performed audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company by discussion and enquiry with the directors and management team and our general knowledge and experience of the manufacturing and supply sector.

We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, employment, and health and safety legislation;

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing correspondence with relevant regulators and reviewing board minutes.

REYNAERS ALUMINIUM LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF REYNAERS ALUMINIUM LIMITED
- 7 -
Audit response to risks identified

We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed included but were not limited to:

 

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

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

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

Use of our report

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

Wendy Davies
Senior Statutory Auditor
For and on behalf of CK Audit
5 June 2024
Chartered Accountants
Statutory Auditor
No 4 Castle Court 2
Castlegate Way
Dudley
West Midlands
DY1 4RH
REYNAERS ALUMINIUM LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
28,788,154
31,142,009
Cost of sales
(18,861,851)
(19,691,066)
Gross profit
9,926,303
11,450,943
Distribution costs
(843,250)
(1,102,671)
Administrative expenses
(6,124,592)
(6,179,684)
Operating profit
4
2,958,461
4,168,588
Interest receivable and similar income
7
37,820
6,519
Profit before taxation
2,996,281
4,175,107
Tax on profit
8
(637,339)
(888,565)
Profit for the financial year
2,358,942
3,286,542

The profit and loss account has been prepared on the basis that all operations are continuing operations.

REYNAERS ALUMINIUM LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
£
£
Profit for the year
2,358,942
3,286,542
Other comprehensive income
-
-
Total comprehensive income for the year
2,358,942
3,286,542
REYNAERS ALUMINIUM LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
9,265,704
9,620,114
Current assets
Stocks
12
2,420,948
2,313,221
Debtors
13
4,900,025
5,827,554
Cash at bank and in hand
1,408,910
1,795,654
8,729,883
9,936,429
Creditors: amounts falling due within one year
14
(3,510,238)
(4,145,136)
Net current assets
5,219,645
5,791,293
Total assets less current liabilities
14,485,349
15,411,407
Provisions for liabilities
Deferred tax liability
15
207,836
207,836
(207,836)
(207,836)
Net assets
14,277,513
15,203,571
Capital and reserves
Called up share capital
17
400,000
400,000
Profit and loss reserves
18
13,877,513
14,803,571
Total equity
14,277,513
15,203,571

The notes on pages 12 to 23 form part of these financial statements.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 5 June 2024 and are signed on its behalf by:
Mr R Hall
Mr Bert Geerinckx
Director
Director
Company registration number 02065601 (England and Wales)
REYNAERS ALUMINIUM LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
400,000
14,417,029
14,817,029
Year ended 31 December 2022:
Profit and total comprehensive income
-
3,286,542
3,286,542
Dividends
9
-
(2,900,000)
(2,900,000)
Balance at 31 December 2022
400,000
14,803,571
15,203,571
Year ended 31 December 2023:
Profit and total comprehensive income
-
2,358,942
2,358,942
Dividends
9
-
(3,285,000)
(3,285,000)
Balance at 31 December 2023
400,000
13,877,513
14,277,513
REYNAERS ALUMINIUM LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

Reynaers Aluminium Limited is a private company limited by shares incorporated in England and Wales. The registered office is 111 Hollymoor Way, Northfield, Birmingham, B31 5HE.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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

 

 

The financial statements of the company are consolidated in the financial statements of Reynaers Aluminium N.V. These consolidated financial statements are available from the National Bank of Belgium at Boulevard de Berlaimont 14, 1000 Brussels, Belgium VAT BE 0203.201.340, RLP Brussels.

1.2
Going concern

Atruet 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.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

REYNAERS ALUMINIUM LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings Freehold
25 years
Plant and machinery
2 to 5 years
Fixtures, fittings & equipment
3 to 10 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

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

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

 

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

1.6
Stocks

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

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

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

REYNAERS ALUMINIUM LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

REYNAERS ALUMINIUM LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities

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

 

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

 

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

Other financial liabilities

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

 

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.8
Equity instruments

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

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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

REYNAERS ALUMINIUM LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.10
Employee benefits

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

 

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

 

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

1.11
Retirement benefits

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

1.12
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.13
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

REYNAERS ALUMINIUM LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Useful economic lives of non-current assets

The useful economic lives of non-current assets have been derived from the judgement of the Directors, using their best estimate of write-down period.

Stock

Inventories are valued at the lower cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made, which include forecast consumer demand, the promotional, competitive and economic environment and inventory loss trends.

Bad debt provision

A bad debt provision is set up when the likelihood of recovering the debt is diminished. The level of provision will be based on any current repayment plan entered into and which is being adhered to by the debtor, together with an estimate of the likelihood of the amounts due being fully recovered.

 

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sale of goods
28,571,155
30,983,692
Services
216,999
158,317
28,788,154
31,142,009
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
28,296,463
30,719,159
Europe
491,691
422,850
28,788,154
31,142,009
REYNAERS ALUMINIUM LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 18 -
2023
2022
£
£
Other revenue
Interest income
37,820
6,519
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Exchange losses
759
597
Fees payable to the company's auditor for the audit of the company's financial statements
23,070
16,368
Depreciation of owned tangible fixed assets
484,608
455,824
Impairment of stocks recognised or reversed
236,559
187,267
Operating lease charges
207,560
206,742

 

5
Employees

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

2023
2022
Number
Number
Office and management
51
54
Warehouse
16
18
Total
67
72

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,404,917
3,617,403
Social security costs
363,045
367,015
Pension costs
160,090
137,355
3,928,052
4,121,773
REYNAERS ALUMINIUM LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
399,164
479,678
Company pension contributions to defined contribution schemes
23,616
18,087
422,780
497,765

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 3).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
209,142
253,467
Company pension contributions to defined contribution schemes
10,000
10,000
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
32,722
6,519
Other interest income
5,098
-
0
Total income
37,820
6,519
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
784,423
827,890
Adjustments in respect of prior periods
(147,084)
-
0
Total current tax
637,339
827,890
Deferred tax
Origination and reversal of timing differences
-
0
60,675
Total tax charge
637,339
888,565
REYNAERS ALUMINIUM LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
(Continued)
- 20 -

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

2023
2022
£
£
Profit before taxation
2,996,281
4,175,107
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
704,725
793,270
Tax effect of expenses that are not deductible in determining taxable profit
7,694
8,908
Permanent capital allowances in excess of depreciation
-
0
(11,548)
Depreciation on assets not qualifying for tax allowances
38,268
45,246
Other timing differences
(1,004)
2,807
Deferred tax calculated at 25%
(12,304)
49,882
Deferred tax not recognised
(100,040)
-
0
Taxation charge for the year
637,339
888,565
9
Dividends
2023
2022
£
£
Final paid
3,285,000
2,900,000
10
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Stocks
12
236,559
187,267
Recognised in:
Cost of sales
236,559
187,267
REYNAERS ALUMINIUM LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
11
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 1 January 2023
10,895,720
742,532
331,332
11,969,584
Additions
94,015
18,724
17,459
130,198
At 31 December 2023
10,989,735
761,256
348,791
12,099,782
Depreciation and impairment
At 1 January 2023
1,539,681
558,233
251,556
2,349,470
Depreciation charged in the year
351,869
99,313
33,426
484,608
At 31 December 2023
1,891,550
657,546
284,982
2,834,078
Carrying amount
At 31 December 2023
9,098,185
103,710
63,809
9,265,704
At 31 December 2022
9,356,039
184,299
79,776
9,620,114
12
Stocks
2023
2022
£
£
Finished goods and goods for resale
2,420,948
2,313,221
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
4,473,954
5,614,384
Amounts owed by group undertakings
110,473
49,879
Prepayments and accrued income
315,598
163,291
4,900,025
5,827,554
REYNAERS ALUMINIUM LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
14
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
448,537
329,865
Amounts owed to group undertakings
2,217,338
2,407,875
Corporation tax
267,270
392,890
Other taxation and social security
365,311
711,528
Accruals and deferred income
211,782
302,978
3,510,238
4,145,136
15
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
£
£
ACAs
207,836
207,836
There were no deferred tax movements in the year.
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
160,090
137,355

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
400,000
400,000
400,000
400,000
REYNAERS ALUMINIUM LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
18
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
14,803,571
14,417,029
Profit for the year
2,358,942
3,286,542
Dividends declared and paid in the year
(3,285,000)
(2,900,000)
At the end of the year
13,877,513
14,803,571
19
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the company for certain of its properties and motor vehicles.

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

2023
2022
£
£
Within one year
263,054
221,166
Between two and five years
244,235
217,494
507,289
438,660
20
Capital commitments

Amounts contracted for but not provided in the financial statements:

2023
2022
£
£
Acquisition of tangible fixed assets
-
69,605
21
Ultimate controlling party

The directors regard Reynaers Aluminium N.V., a company incorporated in Belgium, as the ultimate parent undertaking.

The ultimate controlling party is the Reynaers family.

Reynaers Aluminium N.V. is the parent undertaking of the largest and only group of which the company is a member and for which group financial statements are drawn up.

 

Group accounts can be obtained from the National Bank of Belgium at Boulevard de Berlaimont 14, 1000 Brussels, Belgium, VAT BE 0203.201.340, RLP Brussels.

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