Company registration number 11730838 (England and Wales)
STRONGDOR HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
STRONGDOR HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr T F Devenish
Mr S Whiley
Mr O M Whiley
Company number
11730838
Registered office
Carnforth Business Park
Oakwood Way
Carnforth
Lancashire
LA5 9FD
Auditor
Champion Accountants LLP
2nd Floor Refuge House
33-37 Watergate Row
Chester
CH1 2LE
STRONGDOR HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 32
STRONGDOR HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Business model and principal activities

The principal activity of the group during the year continued to be manufacturing steel security and fire rated doors to subcontractors, merchants, builders and specifiers in the UK and Europe.

Key performance indicators of the group demonstrate strong growth during the year and the directors are confident the group will continue to grow with increased unit output, product innovation and investment in technology and capacity.

KPI’s

2023

2022

Change

Turnover (£,000)

17,450

15,580

1,870

Gross profit (£,000)

7,435

7,156

279

Gross profit margin %

43

46

-3

EBITDA (£,000)

4,389

3,962

427

Net assets (£,000)

7,061

5,811

1,250

 

Company strategy

The group will continue maximizing sustainable growth in 2024 by developing new innovative products, scaling up production capacity and investing in new market opportunities.

The Innovation Centre will continue to dedicate resources to Research and Development, driving innovative product and service developments in collaboration with industry stakeholders.

The group will scale up production capacity and aim to be an employer of choice, investing in personnel along with cutting-edge machinery technology to further reduce risk and increase performance.

Future growth potential has been identified and evaluated, and the group has committed to the next phase of investment into geographic expansion.

STRONGDOR HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Risks and uncertainties

The group continues to register and review material risks and uncertainties and strives to mitigate and hedge against these risks through proactive and reactive strategies.

Market risks – Risk of increased competition is mitigated through constant research and development of new and innovative products and market opportunities. Risk mitigation includes awareness of risk associated with over reliance on a single business factor, be that of a single customer, supplier, geography, product category or brand. This risk is monitored regularly and considered strategically, taking steps wherever possible to diversify and mitigate any potential impacts.

Social and legislative change - demonstrating our commitment to environmental and social responsibility, ISO14001 accreditation is under way, including product Life Cycle Assessments evaluating carbon footprint.

Material availability and price inflation – the group continues to work on procurement policy to strengthen sourcing capability in terms of pricing, availability and minimized transportation, and to maximise economies of scale, whilst retaining bespoke production capabilities.

Pandemics and human resource – productivity has improved through the year with an all-staff profit share scheme being rolled out from Jan 24. Health & Safety compliance remains a top priority with dedicated systems and processes implemented through the year, designed to minimize occupational risk and improve employee health and wellbeing.

Management, financial and cyber risks – management control is maintained through monitoring key performance indicators in structured regular meetings alongside financial and cyber controls.

The group finances operations through retained profits with limited exposure to financial instruments except for proprietary trading and reserve bank accounts. As part of the financial strategy to retain sufficient liquidity for growth whilst minimizing exposure to fluctuating interest rates on borrowings, reserve funds are invested in sterling treasury reserve deposits where appropriate, with no pricing risk exposure.

Non-financial information statement

During the year, Manufactured product remained at the desired proportion of total turnover in line with strategic objectives and units produced during the year increased.

The directors believe there is a strong foundation to build the business further and to improve on current year results.

On behalf of the board

..............................
Mr T F Devenish
Director
Date: .............................................
STRONGDOR HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the company and group continued to be that of manufacturing steel doors.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £1,437,968. 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 T F Devenish
Mr S Whiley
Mr O M Whiley
Auditor

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

Strategic report

In accordance with section 414 c(11) of the Companies Act 2006, the company has chosen to set out details of likely future developments in the business as required by schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports Regulations 2008) within the strategic report.true

Statement of disclosure to auditor

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

On behalf of the board
Mr T F Devenish
Director
19 September 2024
STRONGDOR HOLDINGS 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

STRONGDOR HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STRONGDOR HOLDINGS LIMITED
- 5 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

The 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:

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

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

 

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

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

 

The responsibility for the prevention and detection of irregularities, including fraud, lies with the directors and with those charged with governance. The objectives of our audit in respect of irregularities and fraud are to assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient, appropriate audit evidence regarding the assessed risks and to respond appropriately to fraud or suspected fraud identified during the audit.

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

Audit procedures

 

We determine significant applicable laws and regulations through discussion with those charged with governance and our own knowledge of the industry and design audit procedures to help identify instances of non-compliance with those laws and regulations that may have a material effect on the financial statements.

 

We consider the applicable laws and regulations to be the financial reporting framework (FRS 102 and the Companies Act 2006), the relevant tax regulations in the UK, employment law, the Regulatory Reform (Fire Safety) Order 2005, ISO 9001: 2015 and the Health and Safety at Work Act 1974.

 

We consider the control environment and the procedures in place to address identified risks, including management override, non-compliance with laws and regulations and to prevent and detect fraud or irregularity. Our procedures are designed to provide reasonable assurance that the financial statements are free from material misstatement or error and include: enquiries of management and of staff in key compliance functions; review of reported incidents and reports from regulators; review of minutes of meetings of those charged with governance; review and testing of manual journals, relevant nominals and significant transactions outside the normal course of business; review of financial statement disclosures and testing to supporting documentation; performance of analytical procedures.

 

We are not responsible for preventing non-compliance and due to the inherent limitations of an audit, as described above, the audit cannot be relied upon to detect all instances of non-compliance with laws and regulations.

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.

Susan Harris MA ACA (Senior Statutory Auditor)
For and on behalf of Champion Accountants LLP
19 September 2024
Chartered Accountants
Statutory Auditor
2nd Floor Refuge House
33-37 Watergate Row
Chester
CH1 2LE
STRONGDOR HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
17,450,064
15,580,396
Cost of sales
(10,015,341)
(8,424,059)
Gross profit
7,434,723
7,156,337
Administrative expenses
(4,101,396)
(4,155,807)
Other operating income
30,666
144,619
Operating profit
4
3,363,993
3,145,149
Interest receivable and similar income
8
79,093
5,226
Interest payable and similar expenses
9
(96,513)
(28,510)
Profit before taxation
3,346,573
3,121,865
Tax on profit
10
(658,495)
(694,904)
Profit for the financial year
25
2,688,078
2,426,961
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
STRONGDOR HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
1,264,065
1,508,589
Other intangible assets
12
287,323
227,185
Total intangible assets
1,551,388
1,735,774
Tangible assets
13
4,140,784
3,504,024
5,692,172
5,239,798
Current assets
Stocks
16
842,171
769,371
Debtors
17
2,523,034
2,132,857
Cash at bank and in hand
3,638,875
3,081,391
7,004,080
5,983,619
Creditors: amounts falling due within one year
18
(3,251,789)
(4,015,980)
Net current assets
3,752,291
1,967,639
Total assets less current liabilities
9,444,463
7,207,437
Creditors: amounts falling due after more than one year
19
(1,886,799)
(1,042,685)
Provisions for liabilities
Deferred tax liability
22
496,874
354,072
(496,874)
(354,072)
Net assets
7,060,790
5,810,680
Capital and reserves
Called up share capital
24
3,500,000
3,500,000
Profit and loss reserves
25
3,560,790
2,310,680
Total equity
7,060,790
5,810,680
The financial statements were approved by the board of directors and authorised for issue on 19 September 2024 and are signed on its behalf by:
19 September 2024
Mr T F Devenish
Director
Company registration number 11730838 (England and Wales)
STRONGDOR HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
1,298,609
1,309,701
Investments
14
3,500,000
3,500,000
4,798,609
4,809,701
Current assets
Cash at bank and in hand
143,902
10,000
Creditors: amounts falling due within one year
18
(608,916)
(1,319,701)
Net current liabilities
(465,014)
(1,309,701)
Total assets less current liabilities
4,333,595
3,500,000
Creditors: amounts falling due after more than one year
19
(812,342)
-
Net assets
3,521,253
3,500,000
Capital and reserves
Called up share capital
24
3,500,000
3,500,000
Profit and loss reserves
25
21,253
-
Total equity
3,521,253
3,500,000

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,459,221 (2022 - £608,134 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 19 September 2024 and are signed on its behalf by:
19 September 2024
Mr T F Devenish
Director
Company registration number 11730838 (England and Wales)
STRONGDOR HOLDINGS LIMITED
GROUP 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
3,500,000
491,853
3,991,853
Year ended 31 December 2022:
Profit and total comprehensive income
-
2,426,961
2,426,961
Dividends
11
-
(608,134)
(608,134)
Balance at 31 December 2022
3,500,000
2,310,680
5,810,680
Year ended 31 December 2023:
Profit and total comprehensive income
-
2,688,078
2,688,078
Dividends
11
-
(1,437,968)
(1,437,968)
Balance at 31 December 2023
3,500,000
3,560,790
7,060,790
STRONGDOR HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
3,500,000
-
0
3,500,000
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
608,134
608,134
Dividends
11
-
(608,134)
(608,134)
Balance at 31 December 2022
3,500,000
-
0
3,500,000
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,459,221
1,459,221
Dividends
11
-
(1,437,968)
(1,437,968)
Balance at 31 December 2023
3,500,000
21,253
3,521,253
STRONGDOR HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
2,874,996
5,204,157
Interest paid
(96,513)
(28,510)
Income taxes paid
(409,772)
(197,990)
Net cash inflow from operating activities
2,368,711
4,977,657
Investing activities
Purchase of intangible assets
(184,226)
(188,874)
Purchase of tangible fixed assets
(1,340,174)
(2,006,368)
Proceeds from disposal of tangible fixed assets
38,091
33,466
Repayment of loans
(3,942)
-
Interest received
79,093
5,226
Net cash used in investing activities
(1,411,158)
(2,156,550)
Financing activities
Proceeds from new bank loans
1,760,000
-
Repayment of bank loans
(912,156)
-
Payment of finance leases obligations
190,055
(36,876)
Dividends paid to equity shareholders
(1,437,968)
(608,134)
Net cash used in financing activities
(400,069)
(645,010)
Net increase in cash and cash equivalents
557,484
2,176,097
Cash and cash equivalents at beginning of year
3,081,391
905,294
Cash and cash equivalents at end of year
3,638,875
3,081,391
STRONGDOR HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
30
(668,217)
1,319,701
Interest paid
(54,265)
-
0
Net cash (outflow)/inflow from operating activities
(722,482)
1,319,701
Investing activities
Purchase of tangible fixed assets
-
0
(1,309,701)
Proceeds from disposal of tangible fixed assets
1,092
-
0
Interest received
7,448
-
0
Dividends received
1,437,968
608,134
Net cash generated from/(used in) investing activities
1,446,508
(701,567)
Financing activities
Proceeds from new bank loans
880,000
-
Repayment of bank loans
(32,156)
-
Dividends paid to equity shareholders
(1,437,968)
(608,134)
Net cash used in financing activities
(590,124)
(608,134)
Net increase in cash and cash equivalents
133,902
10,000
Cash and cash equivalents at beginning of year
10,000
-
0
Cash and cash equivalents at end of year
143,902
10,000
STRONGDOR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

Strongdor Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Carnforth Business Park, Oakwood Way, Carnforth, Lancashire, LA5 9FD.

 

The group consists of Strongdor Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

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

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Strongdor Holdings Limited together with all entities controlled by the parent company (its subsidiaries).

 

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

 

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

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

1.4
Going concern

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

1.5
Turnover

Turnover 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.

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

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.

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10% straight line.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.8
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation 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:

Software
33% straight line
1.9
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:

Freehold land and buildings
10% straight line
Leasehold improvements
10% straight line
Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance
Motor vehicles
25% reducing balance

Freehold land is not depreciated.

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

STRONGDOR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.10
Fixed asset investments

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

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

1.11
Impairment of fixed assets

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

 

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

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

 

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

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

1.12
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.

1.13
Cash and cash equivalents

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

STRONGDOR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.14
Financial instruments

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

 

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

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.

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

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.

Derecognition of financial liabilities

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

STRONGDOR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.15
Equity instruments

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

1.16
Taxation

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

Current tax

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

Deferred tax

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

 

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

1.17
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.

1.18
Retirement benefits

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

1.19
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

STRONGDOR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.20
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.

2
Judgements and key sources of estimation uncertainty

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

 

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

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stock valuation

Stocks are valued at the lower cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks.

Useful economic lives of fixed assets

Depreciation is provided to write down the assets over the estimated economic useful lives as set out in the Company's accounting policies. The selection of these estimated lives requires the exercise of management judgement. Useful lives are regularly reviewed and should management's assessment of useful lives change, then depreciation charges and carrying value of fixed assets in the financial statements would change accordingly.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
17,450,064
15,580,396
2023
2022
£
£
Other revenue
Interest income
79,093
5,226
STRONGDOR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
5
(1,108)
Research and development costs
240,087
207,991
Depreciation of owned tangible fixed assets
656,172
503,874
Loss/(profit) on disposal of tangible fixed assets
9,151
(11,193)
Amortisation of intangible assets
368,612
313,096
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
11,500
10,000
For other services
All other non-audit services
3,500
3,000
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
104
92
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,611,628
3,149,667
-
0
-
0
Social security costs
367,076
308,791
-
-
Pension costs
53,289
42,643
-
0
-
0
4,031,993
3,501,101
-
0
-
0
STRONGDOR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
20,218
52,249
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
79,093
5,226
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
79,093
5,226
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
54,265
-
Other finance costs:
Interest on finance leases and hire purchase contracts
42,248
28,510
Total finance costs
96,513
28,510
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
578,123
548,606
Adjustments in respect of prior periods
(62,430)
-
0
Total current tax
515,693
548,606
Deferred tax
Origination and reversal of timing differences
142,802
80,219
Changes in tax rates
-
0
65,724
Other adjustments
-
0
355
Total deferred tax
142,802
146,298
Total tax charge
658,495
694,904
STRONGDOR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 23 -

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
3,346,573
3,121,865
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
787,114
593,154
Tax effect of expenses that are not deductible in determining taxable profit
8,861
4,133
Depreciation on assets not qualifying for tax allowances
2,352
-
0
Amortisation on assets not qualifying for tax allowances
57,512
46,460
Research and development tax credit
(114,431)
-
0
Under/(over) provided in prior years
(62,430)
-
0
Tax at marginal rate
(961)
-
0
Capital allowances in excess of depreciation
(162,324)
(95,141)
Change in deferred tax liabilities
142,802
146,298
Taxation charge
658,495
694,904
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
1,437,968
608,134
12
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 1 January 2023
2,445,243
375,729
2,820,972
Additions - internally developed
-
0
184,226
184,226
At 31 December 2023
2,445,243
559,955
3,005,198
Amortisation and impairment
At 1 January 2023
936,654
148,544
1,085,198
Amortisation charged for the year
244,524
124,088
368,612
At 31 December 2023
1,181,178
272,632
1,453,810
STRONGDOR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Intangible fixed assets
(Continued)
- 24 -
Carrying amount
At 31 December 2023
1,264,065
287,323
1,551,388
At 31 December 2022
1,508,589
227,185
1,735,774
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
13
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
1,309,701
518,929
2,476,904
218,139
382,207
4,905,880
Additions
-
0
54,425
774,924
291,206
219,619
1,340,174
Disposals
(1,092)
-
0
(10,930)
(27,152)
(41,560)
(80,734)
At 31 December 2023
1,308,609
573,354
3,240,898
482,193
560,266
6,165,320
Depreciation and impairment
At 1 January 2023
-
0
103,086
1,141,957
122,021
34,792
1,401,856
Depreciation charged in the year
10,000
54,704
455,809
30,462
105,197
656,172
Eliminated in respect of disposals
-
0
-
0
(6,001)
(24,099)
(3,392)
(33,492)
At 31 December 2023
10,000
157,790
1,591,765
128,384
136,597
2,024,536
Carrying amount
At 31 December 2023
1,298,609
415,564
1,649,133
353,809
423,669
4,140,784
At 31 December 2022
1,309,701
415,843
1,334,947
96,118
347,415
3,504,024
STRONGDOR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Tangible fixed assets
(Continued)
- 25 -
Company
Freehold land and buildings
£
Cost
At 1 January 2023
1,309,701
Disposals
(1,092)
At 31 December 2023
1,308,609
Depreciation and impairment
At 1 January 2023
-
0
Depreciation charged in the year
10,000
At 31 December 2023
10,000
Carrying amount
At 31 December 2023
1,298,609
At 31 December 2022
1,309,701
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
3,500,000
3,500,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
3,500,000
Carrying amount
At 31 December 2023
3,500,000
At 31 December 2022
3,500,000
15
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Strongdor Limited
Carnforth Business Park, Oakwood Way, Carnforth, Lancashire, LA5 9FD
Ordinary shares
100.00
STRONGDOR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Subsidiaries
(Continued)
- 26 -
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Strongdor Limited
5,775,472
2,911,349
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
842,171
769,371
-
-
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,218,169
1,867,690
-
0
-
0
Corporation tax recoverable
-
0
404
-
0
-
0
Other debtors
57,790
112,472
-
0
-
0
Prepayments and accrued income
247,075
152,291
-
0
-
0
2,523,034
2,132,857
-
-
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
20
35,502
-
0
35,502
-
0
Obligations under finance leases
21
516,861
358,578
-
0
-
0
Trade creditors
933,359
940,032
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
410,870
136,000
Corporation tax payable
654,123
548,606
8,355
-
0
Other taxation and social security
527,445
508,382
5,000
-
Other creditors
376,158
192,930
149,189
-
0
Accruals and deferred income
208,341
1,467,452
-
0
1,183,701
3,251,789
4,015,980
608,916
1,319,701
STRONGDOR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
812,342
-
0
812,342
-
0
Obligations under finance leases
21
1,074,457
1,042,685
-
0
-
0
1,886,799
1,042,685
812,342
-
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
847,844
-
0
847,844
-
0
Payable within one year
35,502
-
0
35,502
-
0
Payable after one year
812,342
-
0
812,342
-
0

The long-term loans are secured against assets of the Group and Company.

21
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
516,861
358,578
-
0
-
0
In two to five years
1,074,457
1,042,685
-
0
-
0
1,591,318
1,401,263
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

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

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
496,874
354,072
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
354,072
-
Charge to profit or loss
142,802
-
Liability at 31 December 2023
496,874
-
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
53,289
42,643

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

STRONGDOR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
24
Share capital
Group and company
2023
2022
Ordinary share capital
£
£
Issued and fully paid
595,000 A Ordinary of £1 each
595,000
1,191,205
595,000 B Ordinary of £1 each
595,000
280,008
420,000 C Ordinary of £1 each
420,000
53,335
175,000 D Ordinary of £1 each
175,000
53,335
875,000 E Ordinary of £1 each
875,000
53,335
175,000 F Ordinary of £1 each
175,000
53,335
175,000 G Ordinary of £1 each
175,000
53,335
70,000 H Ordinary of £1 each
70,000
280,008
175,000 I Ordinary of £1 each
175,000
280,008
70,000 J Ordinary of £1 each
70,000
80,002
0 K Ordinary of £1 each
-
280,008
175,000 L Ordinary of £1 each
175,000
142,226
0 M Ordinary of £1 each
-
524,860
0 N Ordinary of £1 each
-
175,000
3,500,000
3,500,000
25
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
2,310,680
491,853
-
-
Profit for the year
2,688,078
2,426,961
1,459,221
608,134
Dividends
(1,437,968)
(608,134)
(1,437,968)
(608,134)
At the end of the year
3,560,790
2,310,680
21,253
-
26
Operating lease commitments

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
256,502
232,274
-
-
Between two and five years
275,634
400,847
-
-
532,136
633,121
-
-
STRONGDOR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
27
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Group
Other related parties
14,965
528
6,142
68,160

During the year sponsorship payments amounting to £61,000 (2022: £nil) and purchases amounting to £85,406 (2022: £21,271) were made to a company in which two members of the key management personnel (including a  director) of Strongdor Limited have a significant influence. No amounts were outstanding at 31 December 2023.

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Other related parties
4,200
6,000

 

28
Directors' transactions

Dividends totalling £435,852 (2022 - £143,025) were paid in the year in respect of shares held by the company's directors.

 

At the year end there was an amount of £Nil (2022 - £289) outstanding from director's of the company. There is no fixed repayment terms and no interest is payable.

 

During the year, £Nil (2022 - £1,800) was charged to a director of the company in respect of services, equipment provided and expenditure incurred on behalf of the company.

STRONGDOR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
29
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
2,688,078
2,426,961
Adjustments for:
Taxation charged
658,495
694,904
Finance costs
96,513
28,510
Investment income
(79,093)
(5,226)
Loss/(gain) on disposal of tangible fixed assets
9,151
(11,193)
Amortisation and impairment of intangible assets
368,612
313,096
Depreciation and impairment of tangible fixed assets
656,172
503,874
Movements in working capital:
Increase in stocks
(72,800)
(141,074)
(Increase)/decrease in debtors
(386,639)
38,644
(Decrease)/increase in creditors
(1,063,493)
1,355,661
Cash generated from operations
2,874,996
5,204,157
30
Cash (absorbed by)/generated from operations - company
2023
2022
£
£
Profit for the year after tax
1,459,221
608,134
Adjustments for:
Taxation charged
8,355
-
0
Finance costs
54,265
-
0
Investment income
(1,445,416)
(608,134)
Depreciation and impairment of tangible fixed assets
10,000
-
Movements in working capital:
(Decrease)/increase in creditors
(754,642)
1,319,701
Cash (absorbed by)/generated from operations
(668,217)
1,319,701
31
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
3,081,391
557,484
3,638,875
Borrowings excluding overdrafts
-
(847,844)
(847,844)
Obligations under finance leases
(1,401,263)
(190,055)
(1,591,318)
1,680,128
(480,415)
1,199,713
STRONGDOR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
32
Analysis of changes in net funds/(debt) - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
10,000
133,902
143,902
Borrowings excluding overdrafts
-
(847,844)
(847,844)
10,000
(713,942)
(703,942)
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