REGISTERED NUMBER: |
INDUSTRIAL TOOLING CORPORATION LIMITED |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 December 2023 |
REGISTERED NUMBER: |
INDUSTRIAL TOOLING CORPORATION LIMITED |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 December 2023 |
INDUSTRIAL TOOLING CORPORATION LIMITED (REGISTERED NUMBER: 02573537) |
Contents of the Financial Statements |
for the year ended 31 December 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 | to | 4 |
Report of the Independent Auditors | 5 | to | 7 |
Statement of Comprehensive Income | 8 |
Balance Sheet | 9 |
Statement of Changes in Equity | 10 |
Notes to the Financial Statements | 11 | to | 22 |
INDUSTRIAL TOOLING CORPORATION LIMITED |
Company Information |
for the year ended 31 December 2023 |
Directors: |
Secretary: |
Registered office: |
Registered number: |
Auditors: |
Statutory Auditor |
CUBO Birmingham |
3rd Floor |
Two Chamberlain Square |
Birmingham |
West Midlands |
B3 3AX |
INDUSTRIAL TOOLING CORPORATION LIMITED (REGISTERED NUMBER: 02573537) |
Strategic Report |
for the year ended 31 December 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
Review of business |
The turnover for the period at £11,933,859 was 14.18% more than the previous period on an annualised basis, but gross margin reduced to 46.45% (2022 49.23%). Turnover has increased on an annualised basis as a result of the return to economic normality but also price increases due to inflation, although to some extent the company has absorbed inflationary pressures in order to protect sales, hence the reduction in margin. |
The company is relatively bullish regarding the next twelve months and anticipates that the turnover will continue to grow as business returns to normality. Margins may however remain an issue and an increase in personnel and general overheads may continue to restrict profits growth. |
The company continues to take on additional products and is intending to put in place further resources to ensure that they are exploited to the full. The company is planning to continue the policy of purchasing new equipment to replace and augment the existing plant and equipment. |
The profit before taxation as a return on sales is 5.25% compared to the previous year of 4.40% which is considered satisfactory due to rising costs of sales and salaries. |
The Key Performance Indicators are considered to be daily sales, stocking levels, trade debtors and cash flow all of which are closely monitored. |
It is considered that the strategic plan and control of the KPI’s will ensure that the company continues to exploit the market and expand. |
Principal risks and uncertainties |
As for many businesses of our size, the business environment in which we operate continues to be challenging and we are of course subject to world economic patterns, particularly in respect of precious metal prices, and the level of disposable income within our economy. |
With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside our control. |
On behalf of the board: |
27 June 2024 |
INDUSTRIAL TOOLING CORPORATION LIMITED (REGISTERED NUMBER: 02573537) |
Report of the Directors |
for the year ended 31 December 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
Principal activity |
The principal activity of the company continued to be that of the manufacture and distribution of round precision cutting tools. |
Dividends |
No dividends will be distributed for the year ended 31 December 2023. |
Events since the end of the year |
Information relating to events since the end of the year is given in the notes to the financial statements. |
Directors |
The directors during the year under review were: |
The directors holding office at 31 December 2023 did not hold any beneficial interest in the issued share capital of the company at 1 January 2023 or 31 December 2023. |
The parent company Bramwell Investments Limited was acquired 100% by ATA Grinding Processes Limited on 30 November 2022. ATA Grinding Processes Limited is a member company of an international group in which Rub Edibrac Ireland Limited, a company based in the Republic of Ireland, is the ultimate parent company. |
Financial instruments |
Interest rate risk |
The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. |
Foreign currency risk |
The company’s principal foreign currency exposures arise from trading with overseas companies. Company policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. This hedging activity involves the use of foreign exchange forward contracts. |
Credit risk |
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board. |
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary. |
Political donations and expenditure |
No political donations where made in the year. |
Statement of directors' responsibilities |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
INDUSTRIAL TOOLING CORPORATION LIMITED (REGISTERED NUMBER: 02573537) |
Report of the Directors |
for the year ended 31 December 2023 |
Statement of directors' responsibilities - continued |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Statement as to disclosure of information to auditors |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director 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 company's auditors are aware of that information. |
Auditors |
The audit business of Haines Watts Birmingham LLP was acquired by Cooper Parry Group Limited on 14 November 2023. Haines Watts Birmingham LLP has resigned as auditor and Cooper Parry Group Limited has been appointed in its place. |
Cooper Parry Group Limited are deemed to be re-appointed under section 487(2) of the Companies Act 2006. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
Industrial Tooling Corporation Limited |
Opinion |
We have audited the financial statements of Industrial Tooling Corporation Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 company's affairs as at 31 December 2023 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Report of the Independent Auditors to the Members of |
Industrial Tooling Corporation Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on pages three and four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We obtained an understanding of the legal and regulatory framework applicable to both the company itself and the industry in which it operates. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience and through discussion with the directors and other management. The most significant were identified as the Companies Act 2006, UK GAAP (FRS102) and relevant tax legislation. |
We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statements. Our audit procedures included: |
- making enquires of directors and management as to where they consider there to be a susceptibility to |
fraud and whether they have any knowledge or suspicion of fraud; |
- obtaining an understanding of the internal controls established to mitigate risks related to fraud or |
non-compliance with laws and regulations; |
- assessing the design effectiveness of the controls in place to prevent and detect fraud; |
- assessing the risk of management override including identifying and testing journal entries; |
- challenging the assumptions and judgements made by management in its significant accounting |
estimates. |
Whilst our audit did not identify any significant matters relating to the detection of irregularities including fraud, and despite the audit being planned and conducted in accordance with ISAs (UK), there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity would likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Industrial Tooling Corporation Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
CUBO Birmingham |
3rd Floor |
Two Chamberlain Square |
Birmingham |
West Midlands |
B3 3AX |
INDUSTRIAL TOOLING CORPORATION LIMITED (REGISTERED NUMBER: 02573537) |
Statement of Comprehensive |
Income |
for the year ended 31 December 2023 |
Period |
1/10/21 |
Year ended | to |
31/12/23 | 31/12/22 |
Notes | £ | £ |
Turnover | 3 |
Cost of sales | ( |
) | ( |
) |
Gross profit |
Administrative expenses | ( |
) | ( |
) |
663,792 | 599,125 |
Other operating income | 4 |
Operating profit | 7 |
Interest receivable and similar income |
663,876 | 617,859 |
Interest payable and similar expenses | 9 | ( |
) | ( |
) |
Profit before taxation |
Tax on profit | 10 | ( |
) | ( |
) |
Profit for the financial year |
Other comprehensive income | - | - |
Total comprehensive income for the year |
INDUSTRIAL TOOLING CORPORATION LIMITED (REGISTERED NUMBER: 02573537) |
Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 12 |
Current assets |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
Creditors |
Amounts falling due within one year | 15 |
Net current assets |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year | 16 | ( |
) | ( |
) |
Provisions for liabilities | 20 | ( |
) | ( |
) |
Net assets |
Capital and reserves |
Called up share capital | 21 |
Capital redemption reserve | 22 |
Retained earnings | 22 | 6,578,676 | 6,107,699 |
Shareholders' funds |
The financial statements were approved by the Board of Directors and authorised for issue on |
INDUSTRIAL TOOLING CORPORATION LIMITED (REGISTERED NUMBER: 02573537) |
Statement of Changes in Equity |
for the year ended 31 December 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 October 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 | 6,668 | 6,107,699 | 6,117,700 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2023 | 6,668 | 6,578,675 | 6,588,676 |
INDUSTRIAL TOOLING CORPORATION LIMITED (REGISTERED NUMBER: 02573537) |
Notes to the Financial Statements |
for the year ended 31 December 2023 |
1. | Statutory information |
Industrial Tooling Corporation Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 1 Kepler, Lichfield Road Industrial Estate, Tamworth, Staffordshire, B79 7XE. |
2. | Accounting policies |
Basis of preparing the financial statements |
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 a mounts 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. |
The company was a wholly owned subsidiary of Bramwell Investments Limited until 30 November 2022 when it was purchased by ATA Grinding Processes Limited, part of an international group controlled by Rub Edibrac Ireland Limited, a company based in Eire. For queries regarding group consolidated accounts the correspondence address is ATA, IDA Business & Technology Park, Killygarry, Cavan, Co.Cavan, H12 DK46. |
These accounts are prepared for Industrial Tooling Corporation Limited only. |
Going concern |
At the time of approving the financial statements, the directors' have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors' continue to adopt the going concern basis of accounting in preparing the financial statements. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows. |
Significant judgements and estimates |
In the application of the company’s accounting policies, the directors' are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
Turnover |
Turnover represents the total invoice value, excluding value added tax, of goods sold and services rendered during the year. |
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. |
INDUSTRIAL TOOLING CORPORATION LIMITED (REGISTERED NUMBER: 02573537) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
2. | Accounting policies - continued |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. |
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss. |
Impairment of fixed assets |
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. |
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. |
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. |
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. |
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential. |
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. |
INDUSTRIAL TOOLING CORPORATION LIMITED (REGISTERED NUMBER: 02573537) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
2. | Accounting policies - continued |
Financial instruments |
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. |
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset , with the net amounts presented in the financial statements , when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Basic financial assets |
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. |
Other financial assets |
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment. |
Impairment of financial assets |
Financial assets, other than those held at fair value through profit and loss , are assessed for indicators of impairment at each reporting end date. |
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. |
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss. |
Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. |
Classification of financial liabilities |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
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. |
INDUSTRIAL TOOLING CORPORATION LIMITED (REGISTERED NUMBER: 02573537) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
2. | Accounting policies - continued |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled. |
Taxation |
The tax expense represents the sum of the tax currently payable and deferred tax. |
Current tax |
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date. |
Deferred tax |
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been |
discounted. |
Foreign currencies |
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 are included in the profit and loss account for the period. |
Hire purchase and leasing commitments |
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 the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability. |
Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed. |
Employee benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
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. |
Retirement benefits |
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. |
Cash at bank and in hand |
Cash at bank and in hand 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. |
INDUSTRIAL TOOLING CORPORATION LIMITED (REGISTERED NUMBER: 02573537) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
2. | Accounting policies - continued |
Grants received |
Grants which are of a revenue nature are credited to the profit and loss account in the same period as the related expenditure. |
Change of period end date |
The company extended its comparative period end by 3 months from 30 September 2022 to 31 December 2022, meaning that the comparatives in these accounts report for a 15 month period, compared to a 12 month current period. The change of year-end was undertaken in order to reflect a change of ownership in the company, which occurred on 30 November 2022. |
3. | Turnover |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
Period |
1/10/21 |
Year ended | to |
31/12/23 | 31/12/22 |
£ | £ |
United Kingdom |
Europe |
Rest of the world | 342,373 | 318,051 |
4. | Other operating income |
Period |
1/10/21 |
Year ended | to |
31/12/23 | 31/12/22 |
£ | £ |
Government grants |
5. | Employees and directors |
Period |
1/10/21 |
Year ended | to |
31/12/23 | 31/12/22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
INDUSTRIAL TOOLING CORPORATION LIMITED (REGISTERED NUMBER: 02573537) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
5. | Employees and directors - continued |
The average number of employees during the year was as follows: |
Period |
1/10/21 |
Year ended | to |
31/12/23 | 31/12/22 |
Sales and distribution | 17 | 20 |
Administration | 18 | 21 |
Production | 27 | 22 |
6. | Directors' emoluments |
Period |
1/10/21 |
Year ended | to |
31/12/23 | 31/12/22 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
7. | Operating profit |
The operating profit is stated after charging/(crediting): |
Period |
1/10/21 |
Year ended | to |
31/12/23 | 31/12/22 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Auditors' remuneration for non audit work |
Exchange losses |
8. | Exceptional items |
2023 | 2022 |
£ | £ |
Redundancy pay | 27,381 | 17,424 |
INDUSTRIAL TOOLING CORPORATION LIMITED (REGISTERED NUMBER: 02573537) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
9. | Interest payable and similar expenses |
Period |
1/10/21 |
Year ended | to |
31/12/23 | 31/12/22 |
£ | £ |
Bank interest |
Hire purchase interest paid |
Corporation tax interest |
10. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
Period |
1/10/21 |
Year ended | to |
31/12/23 | 31/12/22 |
£ | £ |
Current tax: |
UK corporation tax |
Prior year tax adjustment | - | (34,759 | ) |
Total current tax |
Deferred tax | ( |
) |
Tax on profit |
UK corporation tax has been charged at 23.52% . |
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: |
Period |
1/10/21 |
Year ended | to |
31/12/23 | 31/12/22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Adjustments to tax charge in respect of previous periods | ( |
) |
Profit on disposal of assets | - | (6,424 | ) |
Deferred tax accelerated allowances timing differences | (64,505 | ) | 91,556 |
Total tax charge | 154,967 | 103,076 |
INDUSTRIAL TOOLING CORPORATION LIMITED (REGISTERED NUMBER: 02573537) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
10. | Taxation - continued |
Factors affecting future tax charges |
On 1st April 2023 the main corporation tax rate for UK limited companies was increased from 19% to 25%. As the company's current reporting period overlaps the change of tax rate its effective rate of tax in the year to 31 December 2023 is 23.52%. This is expected to increase to the full 25% in the year ended 31 December 2024. |
11. | Dividends |
Period |
1/10/21 |
Year ended | to |
31/12/23 | 31/12/22 |
£ | £ |
Ordinary shares of £1 each |
Interim |
12. | Tangible fixed assets |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings | Totals |
£ | £ | £ | £ |
Cost |
At 1 January 2023 |
Additions |
At 31 December 2023 |
Depreciation |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
Net book value |
At 31 December 2023 |
At 31 December 2022 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
Cost |
At 1 January 2023 |
Transfer to ownership | (768,753 | ) |
Reclassification/transfer |
At 31 December 2023 |
Depreciation |
At 1 January 2023 |
Charge for year |
Transfer to ownership | (408,319 | ) |
At 31 December 2023 |
Net book value |
At 31 December 2023 |
At 31 December 2022 |
INDUSTRIAL TOOLING CORPORATION LIMITED (REGISTERED NUMBER: 02573537) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
12. | Tangible fixed assets - continued |
Obligations under hire purchase are secured on the assets to which they relate. |
13. | Stocks |
2023 | 2022 |
£ | £ |
Stocks |
Stock consists of raw materials totalling £2,690,605 (2022 £2,692,517) and work in progress of £135,316 (2022 £125,600). |
Stock is inclusive of an impairment write down of £95,747 (2022 £Nil). |
14. | Debtors: amounts falling due within one year |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
Tax |
Prepayments |
15. | Creditors: amounts falling due within one year |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 17) |
Hire purchase contracts (see note 18) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
VAT | 429,940 | 260,174 |
Other creditors |
Accruals and deferred income |
16. | Creditors: amounts falling due after more than one year |
2023 | 2022 |
£ | £ |
Hire purchase contracts (see note 18) |
Obligations under hire purchase are secured on the assets to which they relate. |
17. | Loans |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
INDUSTRIAL TOOLING CORPORATION LIMITED (REGISTERED NUMBER: 02573537) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
18. | Leasing agreements |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable |
operating leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
Operating leases are used to finance some of the vehicles that are used by the company. Lease rentals are typically fixed for a period of 3 years and are written off systemically over the life of the lease. |
HP/finance leases are used to finance some of the plant fixed assets used by the company. Leases usually involve fixed monthly repayments and interest charges over a period of 5 years. Interest is accounted for using the sum of the digits method. |
19. | Financial instruments |
The carrying amount of financial assets (debt instruments) carried at amortised cost is £2,048,911 (2022 1,905,704). |
The carrying amount of financial liabilities measured at amortised cost is £1,944,885 (2022 £2,072,261). |
20. | Provisions for liabilities |
2023 | 2022 |
£ | £ |
Deferred tax | 330,735 | 395,240 |
Deferred tax |
£ |
Balance at 1 January 2023 |
Credit to Statement of Comprehensive Income during year | ( |
) |
Balance at 31 December 2023 |
21. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 6,668 | 6,668 |
INDUSTRIAL TOOLING CORPORATION LIMITED (REGISTERED NUMBER: 02573537) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
22. | Reserves |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2023 | 6,111,033 |
Profit for the year |
At 31 December 2023 | 6,582,009 |
Reserves includes the following:- |
Called up share capital |
This is the par value of the Ordinary £1 shares in the company as held and paid for by the company's shareholders and is a non-distributable reserve. |
Revenue reserve |
This is the accumulated total of undistributed profits for the current and earlier years. This is available for distribution to the shareholders. |
Capital redemption reserve |
This is a statutory non-distributable reserve which was created in an earlier accounting period when the company re-purchased some of its original share capital. In such circumstances the law requires that the company creates a new reserve equivalent to the value of the share capital redeemed, to ensure that the company's capital base is maintained. |
23. | Pension commitments |
Charges to the profit and loss in respect of defined contribution schemes amounted to £145,100 (2022: £245,225). |
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. |
24. | Ultimate parent company |
Rub Edibrac Ireland Limited (incorporated in Eire ) is regarded by the directors as being the company's ultimate parent company. |
25. | Related party disclosures |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
2023 | 2022 |
£ | £ |
Purchase of property |
Rent paid | - | 70,817 |
During the year, a total of key management personnel compensation of £ |
26. | Post balance sheet events |
On 15 April 2024, Rub Edibrac Ireland Limited, the ultimate parent company during 2023, entered into an agreement to sell the Rub Edibrac Ireland Limited group and its subsidiaries. The sale is planned to complete by the end of June 2024. |
INDUSTRIAL TOOLING CORPORATION LIMITED (REGISTERED NUMBER: 02573537) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2023 |
27. | Ultimate controlling party |
The ultimate parent company is Rub Edibrac Ireland Limited, a company registered in Eire. |
The ownership of the company changed on 30 November 2022, when the parent company Bramwell Investments Limited, was sold to ATA Grinding Processes Limited, a member of the international group of which Rub Edibrac Ireland Limited is the utlimate holding company. |
28. | Guarantees |
The company is party to a cross-guarantee, securing bank facilities with Bramwell Investments Limited. |