REGISTERED NUMBER: NI014144 (Northern Ireland) |
SPERRIN HOLDINGS LIMITED |
Group Strategic Report, Director's Report and |
Consolidated Financial Statements for the Year Ended 31 December 2023 |
REGISTERED NUMBER: NI014144 (Northern Ireland) |
SPERRIN HOLDINGS LIMITED |
Group Strategic Report, Director's Report and |
Consolidated Financial Statements for the Year Ended 31 December 2023 |
SPERRIN HOLDINGS LIMITED (REGISTERED NUMBER: NI014144) |
Contents of the Consolidated Financial Statements |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Director's Report | 3 |
Independent Auditors' Report | 5 |
Consolidated Income Statement | 8 |
Consolidated Statement of Financial Position | 9 |
Company Statement of Financial Position | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Statement of Cash Flows | 13 |
Notes to the Consolidated Statement of Cash Flows |
14 |
Notes to the Consolidated Financial Statements | 15 |
SPERRIN HOLDINGS LIMITED |
Company Information |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
Chartered Accountants and Statutory Auditors |
36-38 Northland Row |
Dungannon |
Co. Tyrone |
BT71 6AP |
BANKERS: | Danske Bank |
North Business Centre |
1-2 Broadway |
Ballymena |
Co. Antrim |
BT43 7AA |
SOLICITORS: |
34 Upper Queen Street |
Belfast |
BT1 6FD |
SPERRIN HOLDINGS LIMITED (REGISTERED NUMBER: NI014144) |
Group Strategic Report |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The director presents his strategic report of the Company and the Group for the year ended 31 December 2023. |
REVIEW OF BUSINESS AND FUTURE DEVELOPMENTS |
The group reported a profit for the financial year of £2,407,270 (2022: £1,172,316). The directors consider the results of the financial year and the position of the group and company at the year end to be satisfactory. The group will continue to invest in people, product development and facilities to ensure its ongoing development and will continue to seek every opportunity to increase profitable turnover. |
Key performance indicators |
The group's key performance indicators are as follows: |
2023 | 2022 | 2021 |
Net cash | £7.8m | £5.9m | £2.98m |
Gross margin profit | 26.9% | 15.9% | 13.8% |
PRINCIPAL RISKS AND UNCERTAINTIES |
Business operations and execution of the group's strategic plan are subject to several risks and |
uncertainties: |
Inflationary cost pressures: manufacturers continue to be exposed to pressures created by Brexit, rising |
energy costs, supply chain disruption and the war in Ukraine. The business remains vigilant to the |
potential headwinds experienced by all aspects of the project cycle and seeks to mitigate these risks |
through robust commercial and risk management, on-going dialogue with key stakeholders, including |
customers and supply chain. |
Human resources: recruitment, retention and development of key employees is paramount in the current |
economic climate, and the business continues to invest in employment training and development, |
together with appropriate incentive and career progression arrangements. |
ENVIRONMENT |
The group recognises its corporate responsibility to carry out its operations whilst minimising environmental impacts. The directors' continued aim is to comply with all applicable environmental legislation, prevent pollution and reduce waste wherever possible. |
HEALTH AND SAFETY |
The group is committed to achieving the highest practicable standards in health and safety management and strives to make all sites and offices safe environments for employees and customers alike. |
HUMAN RESOURCES |
The group's most important resource is its people; their knowledge and experience is crucial to meeting customer requirements. Retention of key staff is critical. |
FUTURE DEVELOPMENTS |
The Group is committed to long term creation of shareholder value. The Group aims to maintain revenue and operating profits. The Group will continue to develop relations with suppliers and generate new business where possible. |
ON BEHALF OF THE BOARD: |
SPERRIN HOLDINGS LIMITED (REGISTERED NUMBER: NI014144) |
Director's Report |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the audited financial statements of the Company and the group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The group's principal activity during the year was that of the manufacture, supply and installation of metal racking, shelving and related storage products. The principal activity of the company is that of a holding company. |
DIVIDENDS |
An interim dividend of £100,000, £1,000 per ordinary share was paid during the year (2022: £75,000). No final dividend is proposed (2022: £Nil). |
FUTURE DEVELOPMENTS |
The section on future developments which is detailed in the Strategic report is included in this report by cross reference. |
DIRECTOR |
FINANCIAL RISK MANAGEMENT |
The group's operations expose it to a variety of financial risks which include the effects of credit risk, foreign exchange risk and price risk. Given the size of the group, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the group's finance department. |
Credit risk |
The group has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit, which is reassessed regularly by management. |
Foreign exchange risk |
While the greater part of the group's revenues and expenses are denominated in sterling, the group is exposed to some foreign exchange risk in the normal course of business, principally on payments received in Euro. While the group has not used financial instruments to date to hedge foreign exchange exposure, this position is kept constantly under review. |
Price risk |
The group is exposed to commodity price risk as a result of its operations. However, given the size of the group's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the group's operations change in size or nature. The group has no exposure to equity securities price risk as it holds no listed or other equity investments. |
Research and Development |
The company is currently undertaking research and development projects covering new products and |
process improvement. |
SPERRIN HOLDINGS LIMITED (REGISTERED NUMBER: NI014144) |
Director's Report |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTOR'S RESPONSIBILITIES STATEMENT |
The director is responsible for preparing the Group Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period. In preparing these financial statements, the director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's and the Group's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the Group's auditors are aware of that information. |
AUDITORS |
The auditors, CavanaghKelly, have indicated their willingness to continue in office in accordance with the provision of Section 485 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
Independent Auditors' Report to the Members of |
Sperrin Holdings Limited |
Opinion |
We have audited the financial statements of Sperrin Holdings Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the Group's and of the Parent Company affairs as at 31 December 2023 and of the Group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's and the Parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Director's Report, but does not include the financial statements and our Auditors' Report thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements. |
Independent Auditors' Report to the Members of |
Sperrin Holdings Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Director's Report. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the Parent Company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Director's Responsibilities Statement set out on page four, the director is 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 director determines 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 director is responsible for assessing the Group's and the Parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the Group or the Parent Company or to cease operations, or has no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
- We obtained understanding of the legal and regulatory requirements applicable to the company's financial statements and considered the most significant are the Companies Act 2006, Financial Reporting Standards (FRS102), Grant funding bodies regulation and UK taxation legislation; |
- We have assessed the risk of material misstatement of the financial statements, including risk of material misstatement due to fraud and how it might occur by holding discussions with management and those charged with governance; |
- We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations; |
- Understanding the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; and |
- Discussions amongst the audit engagement team regarding how fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur: timing of revenue recognition, recognition of grant income and management override. |
The audit response to risks identified included: |
- Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the relevant laws and regulations above; |
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud; |
- In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report. |
Independent Auditors' Report to the Members of |
Sperrin Holdings Limited |
Use of our report |
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
36-38 Northland Row |
Dungannon |
Co. Tyrone |
BT71 6AP |
SPERRIN HOLDINGS LIMITED (REGISTERED NUMBER: NI014144) |
Consolidated |
Income Statement |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
REVENUE | 5 | 16,707,283 | 16,283,539 |
Cost of sales | (12,423,325 | ) | (13,694,812 | ) |
GROSS PROFIT | 4,283,958 | 2,588,727 |
Distribution costs | (612,539 | ) | (637,083 | ) |
Administrative expenses | (590,855 | ) | (508,196 | ) |
3,080,564 | 1,443,448 |
Other operating income | 6,050 | 1,650 |
OPERATING PROFIT | 7 | 3,086,614 | 1,445,098 |
Finance income | 72,326 | 4,699 |
PROFIT BEFORE TAXATION | 3,158,940 | 1,449,797 |
Tax on profit | 8 | (751,670 | ) | (277,481 | ) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
2,407,270 |
1,172,316 |
Profit attributable to: |
Owners of the parent | 2,407,270 | 1,172,316 |
Total comprehensive income attributable to: |
Owners of the parent | 2,407,270 | 1,172,316 |
SPERRIN HOLDINGS LIMITED (REGISTERED NUMBER: NI014144) |
Consolidated Statement of Financial Position |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
NON-CURRENT ASSETS |
Property, plant and equipment | 11 | 2,963,732 | 2,795,459 |
Investments | 12 | - | - |
2,963,732 | 2,795,459 |
CURRENT ASSETS |
Inventories | 13 | 1,262,418 | 1,694,750 |
Receivables: amounts falling due within one year |
14 |
1,552,656 |
2,057,186 |
Cash at bank | 7,833,903 | 5,979,682 |
10,648,977 | 9,731,618 |
PAYABLES |
Amounts falling due within one year | 15 | (2,886,913 | ) | (4,372,071 | ) |
NET CURRENT ASSETS | 7,762,064 | 5,359,547 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
10,725,796 |
8,155,006 |
PROVISIONS FOR LIABILITIES | 17 | (670,861 | ) | (386,466 | ) |
GOVERNMENT GRANTS | 18 | (97,418 | ) | (118,293 | ) |
NET ASSETS | 9,957,517 | 7,650,247 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 100 | 100 |
Retained earnings | 9,957,417 | 7,650,147 |
SHAREHOLDERS' FUNDS | 9,957,517 | 7,650,247 |
The financial statements were approved by the director and authorised for issue on 12 August 2024 and were signed by: |
Peter Francis Gormley - Director |
SPERRIN HOLDINGS LIMITED (REGISTERED NUMBER: NI014144) |
Company Statement of Financial Position |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
NON-CURRENT ASSETS |
Property, plant and equipment | 11 |
Investments | 12 |
CURRENT ASSETS |
Receivables: amounts falling due within one year |
14 |
Cash at bank |
PAYABLES |
Amounts falling due within one year | 15 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 17 | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,508,628 | 499,402 |
The financial statements were approved by the director and authorised for issue on |
SPERRIN HOLDINGS LIMITED (REGISTERED NUMBER: NI014144) |
Consolidated Statement of Changes in Equity |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 | 100 | 6,552,831 | 6,552,931 |
Changes in equity |
Dividends | - | (75,000 | ) | (75,000 | ) |
Total comprehensive income | - | 1,172,316 | 1,172,316 |
Balance at 31 December 2022 | 100 | 7,650,147 | 7,650,247 |
Changes in equity |
Dividends | - | (100,000 | ) | (100,000 | ) |
Total comprehensive income | - | 2,407,270 | 2,407,270 |
Balance at 31 December 2023 | 100 | 9,957,417 | 9,957,517 |
SPERRIN HOLDINGS LIMITED (REGISTERED NUMBER: NI014144) |
Company Statement of Changes in Equity |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
SPERRIN HOLDINGS LIMITED (REGISTERED NUMBER: NI014144) |
Consolidated Statement of Cash Flows |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,797,920 | 3,581,071 |
Tax paid | (437,002 | ) | (32,432 | ) |
Net cash from operating activities | 2,360,918 | 3,548,639 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (630,023 | ) | (493,121 | ) |
Sale of tangible fixed assets | 151,000 | 8,500 |
Interest received | 72,326 | 4,699 |
Net cash from investing activities | (406,697 | ) | (479,922 | ) |
Cash flows from financing activities |
Equity dividends paid | (100,000 | ) | (75,000 | ) |
Net cash from financing activities | (100,000 | ) | (75,000 | ) |
Increase in cash and cash equivalents | 1,854,221 | 2,993,717 |
Cash and cash equivalents at beginning of year |
2 |
5,979,682 |
2,985,965 |
Cash and cash equivalents at end of year |
2 |
7,833,903 |
5,979,682 |
SPERRIN HOLDINGS LIMITED (REGISTERED NUMBER: NI014144) |
Notes to the Consolidated Statement of Cash Flows |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 3,158,940 | 1,449,797 |
Depreciation charges | 331,591 | 293,125 |
Profit on disposal of fixed assets | (20,841 | ) | (8,500 | ) |
Movement in warranty provision | 201,982 | - |
Government grants | (20,875 | ) | (20,875 | ) |
Finance income | (72,326 | ) | (4,699 | ) |
3,578,471 | 1,708,848 |
Decrease in inventories | 432,332 | 292,245 |
Decrease in trade and other debtors | 504,530 | 79,563 |
(Decrease)/increase in trade and other creditors | (1,717,413 | ) | 1,500,415 |
Cash generated from operations | 2,797,920 | 3,581,071 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 December 2023 |
31/12/23 | 1/1/23 |
£ | £ |
Cash and cash equivalents | 7,833,903 | 5,979,682 |
Year ended 31 December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 5,979,682 | 2,985,965 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/1/23 | Cash flow | At 31/12/23 |
£ | £ | £ |
Net cash |
Cash at bank | 5,979,682 | 1,854,221 | 7,833,903 |
5,979,682 | 1,854,221 | 7,833,903 |
Total | 5,979,682 | 1,854,221 | 7,833,903 |
SPERRIN HOLDINGS LIMITED (REGISTERED NUMBER: NI014144) |
Notes to the Consolidated Financial Statements |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Sperrin Holdings Limited is a private company limited by shares and is incorporated and domiciled in Northern Ireland, within the United Kingdom. The address of its registered office is Cahore Road, Draperstown, Co. Londonderry, BT45 7AP. |
2. | STATEMENT OF COMPLIANCE |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared on a going concern basis under the historical cost convention and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland and the Companies Act 2006. |
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the group and company's accounting policies (see note 4). |
The following principal accounting policies have been applied consistently unless otherwise stated: |
Financial Reporting Standard 102 - reduced disclosure exemptions |
FRS 102 allows a qualifying entity certain disclosure exemptions, subject to certain conditions, which have been complied with, including no objection to the use of exemptions by the company's shareholders. |
The company has take advantage of the following exemptions: |
- | from disclosing the company's key management personnel compensation as required by FRS 102 para 33.7; and |
- | from disclosing related party transactions that are wholly owned within the same group under paragraph 33.1A from the provisions of FRS 102, on the grounds that at 31 December 2023 it was a wholly owned subsidiary. |
Consolidation |
The consolidated financial statements present the results of the company and its own subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. |
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of income and retained earnings from the date on which control is obtained. They are deconsolidated from the date control ceases. |
SPERRIN HOLDINGS LIMITED (REGISTERED NUMBER: NI014144) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Revenue |
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the group and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised: |
Sale of goods |
Turnover from the sale of goods is recognised when all of the following conditions are satisfied: |
i) | the group has transferred the significant risks and rewards of ownership to the buyer; |
ii) | the group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
iii) | the amount of turnover can be measured reliably; |
iv) | it is probable that the group will receive the consideration due under the transaction; and |
v) | the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Property, plant and equipment |
Property, plant and equipment under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
The group adds to the carrying amount of an item of assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the Consolidated statement of income and retained earnings during the period in which they are incurred. |
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives. Depreciation is provided on the following bases: |
Freehold buildings | - 2% straight line |
Plant and machinery | - 15% reducing balance |
Motor vehicles | - 25% straight line |
Canteen and office equipment | - 25% straight line |
Freehold land is not depreciated. |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within the Consolidated statement of income and retained earnings. |
Inventories |
Inventories are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. |
At each Balance sheet date, stocks are assessed for impairment. If inventory is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Consolidated statement of income and retained earnings. |
SPERRIN HOLDINGS LIMITED (REGISTERED NUMBER: NI014144) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
The group have chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. |
(i) Financial assets |
Basic financial assets, including trade and other receivables, cash and bank balances and amounts owed by related parties are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 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. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
(ii) Financial liabilities |
Basic financial liabilities, including trade and other payables, bank loans and overdrafts and amounts owed to related parties 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates. |
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
(iii) Offsetting |
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
SPERRIN HOLDINGS LIMITED (REGISTERED NUMBER: NI014144) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred taxation |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
(i) Functional and presentation currency |
The group's functional and presentational currency is GBP. |
(ii) Transactions and balances |
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. |
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. |
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Consolidated statement of income and retained earnings except when deferred in other comprehensive income as qualifying cash flow hedges. |
Employee benefits |
The group operates a range of benefits to employees, including paid holiday arrangements and a defined contribution plan. |
(i) Short term benefits |
Short term benefits, including holiday pay and other similar non-monetary benefits are recognised as an expense, in the period in which the service is receivable. |
(ii) Defined contribution plan |
The group operated a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the Consolidated balance sheet. The assets of the plan are held separately from the company in independently administered funds |
Debtors |
Debtors are stated after all known bad debts have been written off. Specific provision has been made against all debts considered doubtful of collection. |
SPERRIN HOLDINGS LIMITED (REGISTERED NUMBER: NI014144) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Cash and cash equivalents |
Cash and cash equivalents include cash in hand and deposits held at call with bank and bank overdrafts. |
Interest income |
Interest income is recognised in the Consolidated statement of income and retained earnings using the effective interest method. |
Finance costs |
Finance costs are charged to the Consolidated statement of income and retained earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. |
Dividends and distribution to equity holders |
Dividends and other distributions to the company's shareholders are recognised as a liability in the financial period in which the dividends and other distributions are approved by the group's shareholders. |
Provisions for liabilities |
Provisions are made where an event has taken place that gives the group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. |
Provisions are charged as an expense to Consolidated statement of income and retained earnings in the year that the group becomes aware of the obligation, and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. |
When payments are eventually made, they are charged to the provision carried in the Balance sheet. |
Creditors |
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Share capital |
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from proceeds. |
Investments |
Investment in subsidiary is measured at cost less impairment. |
SPERRIN HOLDINGS LIMITED (REGISTERED NUMBER: NI014144) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
4. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
Judgements In applying accounting policies and key sources of estimation uncertainty |
Estimates and judgements are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
(a) Critical judgements in applying the entity's accounting policies |
There are no critical judgements in applying the entity's accounting policies. |
(b) Key accounting estimates and assumptions |
Warranty Provision |
The group offers a warranty for any goods sold. Provision is made for potential claims under warranty for goods which have a default. Management review the level of sales and the number of warranty claims made on a regular basis in order to calculate the provision for future claims for goods sold. |
5. | REVENUE |
All turnover is derived from the group's principal activities. No analysis of turnover is presented as the directors consider disclosure to be seriously prejudicial to the interests of the group. |
6. | EMPLOYEES AND DIRECTORS |
Staff costs, including directors' remuneration, were as follows: |
2023 | 2022 |
£ | £ |
Wages and salaries | 2,337,396 | 2,229,880 |
Social security costs | 200,624 | 203,192 |
Other pension costs | 118,255 | 89,382 |
2,656,275 | 2,522,454 |
The average number of employees during the year was as follows: |
2023 |
202 2 |
Production | 68 | 70 |
Selling and Distribution | 10 | 8 |
Administration | 9 | 6 |
87 | 84 |
The company had no employees during the year. |
During the year, retirement benefits were accruing to 1 director (2022: 1) in respect of defined contribution pension schemes. The directors of the company are considered to be key management. |
2023 | 2022 |
£ | £ |
Director's remuneration | 270,753 | 132,528 |
Information regarding the highest paid director for the year ended 31 December 2023 is as follows: |
2023 |
£ |
Emoluments etc | 187,023 |
SPERRIN HOLDINGS LIMITED (REGISTERED NUMBER: NI014144) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
7. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation of tangible assets | 331,591 | 293,130 |
Fees payable to the company's auditors for the audit of the company's annual financial statements |
14,600 |
13,900 |
Deferred capital grants released | (5,646 | ) | (20,875 | ) |
Profit on disposal of tangible assets | (20,841 | ) | (8,500 | ) |
Government grants | (20,875 | ) | (20,875 | ) |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 669,525 | 269,483 |
Over provision of tax in prior |
period | (268 | ) | - |
Total current tax | 669,257 | 269,483 |
Deferred tax | 82,413 | 7,998 |
Tax on profit | 751,670 | 277,481 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 3,158,940 | 1,449,797 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.521 % (2022 - 19 %) |
743,014 |
275,461 |
Effects of: |
Expenses not deductible for tax purposes | (486 | ) | (807 | ) |
Income not taxable for tax purposes | 337 | 2,194 |
Capital allowances in excess of depreciation | - | (1,298 | ) |
Adjustments to tax charge in respect of previous periods | (268 | ) | 1,931 |
Non-relevant depreciation | 10,355 | - |
Impact of super-deduction | (6,408 | ) | - |
Impact of rate change | 5,126 | - |
Total tax charge | 751,670 | 277,481 |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
SPERRIN HOLDINGS LIMITED (REGISTERED NUMBER: NI014144) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
10. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares shares of 1 each |
Interim | 100,000 | 75,000 |
11. | PROPERTY, PLANT AND EQUIPMENT |
Group |
Freehold | Plant and | Motor | Computer |
property | machinery | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2023 | 2,668,533 | 5,011,910 | 335,384 | 614,909 | 8,630,736 |
Additions | 44,298 | 473,511 | 64,500 | 47,714 | 630,023 |
Disposals | (120,000 | ) | - | (73,633 | ) | - | (193,633 | ) |
At 31 December 2023 | 2,592,831 | 5,485,421 | 326,251 | 662,623 | 9,067,126 |
DEPRECIATION |
At 1 January 2023 | 977,333 | 4,047,893 | 220,447 | 589,604 | 5,835,277 |
Charge for year | 44,025 | 215,632 | 51,052 | 20,882 | 331,591 |
Eliminated on disposal | - | - | (63,474 | ) | - | (63,474 | ) |
At 31 December 2023 | 1,021,358 | 4,263,525 | 208,025 | 610,486 | 6,103,394 |
NET BOOK VALUE |
At 31 December 2023 | 1,571,473 | 1,221,896 | 118,226 | 52,137 | 2,963,732 |
At 31 December 2022 | 1,691,200 | 964,017 | 114,937 | 25,305 | 2,795,459 |
Company |
Freehold |
property |
£ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
SPERRIN HOLDINGS LIMITED (REGISTERED NUMBER: NI014144) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The following is a subsidiary undertaking of the company: |
Name |
Country of incorporation |
Class of shares |
Holding |
Principal activity |
Sperrin Metal Products Limited |
Northern Ireland |
Ordinary |
100% |
Manufacturing of racking steel shelving and related products |
The registered address of the subsidiary is Cahore Road, Draperstown, Co. Londonderry, BT45 7AP. |
13. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Raw materials | 400,971 | 599,838 |
Work-in-progress | 861,447 | 1,094,912 |
1,262,418 | 1,694,750 |
There are no significant differences between the replacement cost of raw materials and consumables and finished goods and goods for resale. |
The group has no stock. |
14. | RECEIVABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade receivables | 1,423,922 | 1,953,951 |
Amounts owed by group undertakings | - | - |
Other receivables | 20,220 | 20,603 |
Prepayments and accrued income | 108,514 | 82,632 |
1,552,656 | 2,057,186 |
Amounts owed by group undertakings are unsecured, interest free and repayable on demand. |
SPERRIN HOLDINGS LIMITED (REGISTERED NUMBER: NI014144) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
15. | PAYABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade payables | 1,799,958 | 2,756,635 |
Amounts owed to group undertakings | - | - |
Corporation Tax | 503,669 | 271,414 |
Social security and other taxes | 72,622 | 71,505 |
Other payables | 23,441 | 98,054 |
Accruals and deferred income | 487,223 | 1,174,463 |
2,886,913 | 4,372,071 |
Amounts owed to group and related party undertakings are unsecured, interest free and repayable on demand. |
16. | FINANCIAL INSTRUMENTS |
Group | Group | Company | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Financial assets |
Financial assets that are debt instruments measured at amortised cost |
1,424,142 |
1,974,554 |
50,220 |
50,220 |
Financial liabilities |
Financial liabilities measured at amortised cost |
(2,410,622 |
) |
(4,029,152 |
) |
(203,891 |
) |
(147,297 |
) |
Financial assets measured at amortised cost comprise of trade debtors and other debtors. |
Financial liabilities measured at amortised cost comprise of trade creditors, other creditors, accruals and amounts owed to related undertakings. |
17. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | 221,868 | 221,868 |
Warranty provision | 164,598 | 164,598 |
386,466 | 386,466 |
Group |
Deferred tax |
Warranty provision |
£ | £ |
Balance at 1 January 2023 | 221,868 | 164,598 |
Provided during year | - |
Balance at 31 December 2023 | 221,868 | 164,598 |
The group offers a warranty for any goods sold. Provision is made for potential claims under warranty for goods which have a default. Management review the level of sales and the number of warranty claims made on a regular basis in order to calculate the provision for future claims for goods sold. |
The company had no provisions for liabilities. |
SPERRIN HOLDINGS LIMITED (REGISTERED NUMBER: NI014144) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
18. | GOVERNMENT GRANTS |
Group |
2023 | 2022 |
£ | £ |
Deferred government grants | 97,418 | 118,293 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary shares | 1 | 100 | 100 |
20. | PENSION COMMITMENTS |
The group operates a defined contribution scheme for certain directors and employees. The pension charge represents contributions paid by the group to the scheme and amounts to £118,255 (2022: £89,382). The outstanding liability at year end amounts to £23,496 (2022: £13,754). |
21. | CONTINGENT LIABILITIES |
There is a contingent liability to repay certain government grants received under the terms of letters of offer from Invest Northern Ireland if the group fails to achieve and maintain specified employment levels. In the opinion of the directors the terms of the letters of offer have been compiled with and no loss is expected. |
22. | CAPITAL COMMITMENTS |
At 31 December 2023, the group had capital commitments of £Nil (2022: £30,992). |
23. | RELATED PARTY TRANSACTIONS |
The group has identified the following transactions, which fall to be disclosed under paragraph 33.1A from the provision of FRS 102 'Related Party Disclosure'. |
Mr Peter Gormley director of the group is regarded a related party under paragraph 33.1A from the provision of FRS 102 'Related Party Disclosure'. |
Included within debtors due within one year (note 14) is a balance of £20,000 (2022: (£75,000)) owed to the group by the director. |
Dividends of £100,000 (2022: £75,000) were paid to the director by virtue of their shareholding in the company. |
24. | ULTIMATE CONTROLLING PARTY |
Peter Gormley is deemed to be the ultimate controlling party by virtue of his shareholding in the company. |