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REGISTERED NUMBER: NI027091 (Northern Ireland)















TYRONE FABRICATION LIMITED

Strategic Report, Directors' Report and

Financial Statements for the Year Ended 31 December 2023






TYRONE FABRICATION LIMITED (REGISTERED NUMBER: NI027091)






Contents of the Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2023




Page

Company Information 1

Strategic Report 2

Directors' Report 4

Independent Auditors' Report 6

Income Statement 10

Statement of Financial Position 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13


TYRONE FABRICATION LIMITED

Company Information
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: B McDermott
A McDermott
A McDermott
A McDermott
M Montague



SECRETARY: B McDermott



REGISTERED OFFICE: 87 Goland Road
Ballygawley
Co. Tyrone
BT70 2LA



REGISTERED NUMBER: NI027091 (Northern Ireland)



INDEPENDENT AUDITORS: CavanaghKelly
Chartered Accountants and Statutory Auditors
36-38 Northland Row
Dungannon
Co. Tyrone
BT71 6AP



BANKERS: HSBC
1 Dublin Road
Omagh
Co. Tyrone
BT78 1ES



SOLICITORS: Simmons, Meglaughlin & Orr
20 Northland Row
Dungannon
Co. Tyrone
BT71 6BL

TYRONE FABRICATION LIMITED (REGISTERED NUMBER: NI027091)

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
Tyrone Fabrication Limited has delivered a strong trading performance for the year ended 31 December 2023 and the business remains in a sound financial position at the year end.

The directors consider that the key performance indicators are those that communicate the financial performance and strengths of the business as a whole, being revenue, gross profit and operating profit.

The directors have reviewed the performance of the company in the year. The directors are reporting an increase in revenue to £29,540,795 (2022: £27,097,430). The gross profit margin has increased to 28.5% (2022: 23.8%). The company's operating profit has increased to £4,978,592 (2022: £3,473,303) and the company generated profit before tax of £4,957,889 (2022: £3,414,500).

The directors are satisfied with the company's financial performance. This is further reflected in the fact that the company has a strong net asset position at the year end.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The company operations expose it to a variety of risks that include economic risk, competition risk and financial risk. The company has in place a risk management programme that seeks to limit and adverse effects on the financial performance of the company.

Economic Risk:
The economic risks facing the company include wages inflation and fall in demand for products. The directors work closely with employees, customers, suppliers and the company's financial institutions to carefully manage such risks.

Competition Risk:
Competition risk is managed through close attention to product quality, customer service and sustainable markets.

Financial Risk:
The company has exposure to financial risks through interest rates applied to its bank borrowings. These risks are managed by budgetary control and maintaining a close working relationship with its bankers.

FINANCIAL KEY PERFORMANCE INDICATORS
The directors deem the following as key performance indicators for the company:

2023 2022
Revenue: £29,540,795 £27,097,430
Gross Profit Margin: 28.5% 23.8%
Net Operating Profit Margin: 16.8% 12.8%

STRATEGY
The company's success is dependent on the ongoing management of business risks and uncertainties it faces. The directors continue to work closely with suppliers, customers, staff and financial institutions to carefully manage the company's operations. The directors are continually looking for new opportunities to expand the business.

EMPLOYMENT POLICY
The company's policy is to consult and discuss with employees at meetings, matters likely to affect employees' interests.

Information on matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company performance.


TYRONE FABRICATION LIMITED (REGISTERED NUMBER: NI027091)

Strategic Report
FOR THE YEAR ENDED 31 DECEMBER 2023

FUTURE DEVELOPMENTS
The company is committed to long term creation of shareholder value by increasing the company's market share. The company aims to increase revenue and operating profits. The company will continue to develop relationships with customers and suppliers and generate new work where possible while remaining highly competitive.

ON BEHALF OF THE BOARD:





A McDermott - Director


20 September 2024

TYRONE FABRICATION LIMITED (REGISTERED NUMBER: NI027091)

Directors' Report
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report with the audited financial statements of the Company for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company is the manufacture of steel cabinets and associated equipment.

DIVIDENDS
The total interim distribution of dividends for the year ended 31 December 2023 were £4,000,000 (2022: £2,500,000). The Directors do not recommend payment of a final dividend (2022: £Nil).

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

B McDermott
A McDermott
A McDermott
A McDermott
M Montague

DISCLOSURES REQUIRED UNDER SCHEDULE 7
In accordance with Section 414C (11) of Companies Act 2006, the directors have elected to disclose details of the review of the company's business, financial risk management objectives and policies, future developments and employment policy in the company's Strategic Report which would otherwise be required to be disclosed in the Director's Report.

RESEARCH AND DEVELOPMENT
The Company continues to recognise the importance of its research and development programme, which it believes is essential to ensure that the business continues to develop new products and remain competitive in the market.

POLITICAL DONATIONS
The company made charitable donations of £12,851 during the year (2022: £2,506). No expenditure was incurred for political purposes in the current or prior year.

DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.

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

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.

TYRONE FABRICATION LIMITED (REGISTERED NUMBER: NI027091)

Directors' Report
FOR THE YEAR ENDED 31 DECEMBER 2023


AUDITORS
The auditors, CavanaghKelly, (Chartered Accountants) have indicated their willingness to continue in office in accordance with the provisions of Section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:





A McDermott - Director


20 September 2024

Independent Auditors' Report to the Members of
Tyrone Fabrication Limited

Opinion
We have audited the financial statements of Tyrone Fabrication Limited (the 'Company') for the year ended 31 December 2023 which comprise the Income Statement, Statement of Financial Position, 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 Directors' 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 Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Independent Auditors' Report to the Members of
Tyrone Fabrication Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

We have nothing to report in respect of the following matters 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.

Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on page 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.

Independent Auditors' Report to the Members of
Tyrone Fabrication Limited


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.

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

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company.

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

- We obtained 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) 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 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.

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
Tyrone Fabrication 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.




Mr. Desmond Kelly FCA (Senior Statutory Auditor)
for and on behalf of CavanaghKelly
Chartered Accountants and Statutory Auditors
36-38 Northland Row
Dungannon
Co. Tyrone
BT71 6AP

20 September 2024

TYRONE FABRICATION LIMITED (REGISTERED NUMBER: NI027091)

Income Statement
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £ £

REVENUE 5 29,540,795 27,097,430

Cost of sales (21,120,896 ) (20,661,059 )
GROSS PROFIT 8,419,899 6,436,371

Operating costs (1,191,975 ) (1,072,905 )
Administrative expenses (2,249,332 ) (1,890,163 )
OPERATING PROFIT 7 4,978,592 3,473,303

Finance income 18,972 -
4,997,564 3,473,303

Finance costs 8 (39,675 ) (58,803 )
PROFIT BEFORE TAXATION 4,957,889 3,414,500

Tax on profit 9 (1,027,373 ) (303,478 )
PROFIT FOR THE FINANCIAL YEAR 3,930,516 3,111,022

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

3,930,516

3,111,022

TYRONE FABRICATION LIMITED (REGISTERED NUMBER: NI027091)

Statement of Financial Position
31 DECEMBER 2023

2023 2022
Notes £ £
NON-CURRENT ASSETS
Property, plant and equipment 11 4,212,947 4,327,937

CURRENT ASSETS
Inventories 12 2,737,924 2,338,615
Receivables: Amounts falling
due within one year 13 6,507,808 8,029,254
Cash at bank 3,532,080 3,330,981
12,777,812 13,698,850
PAYABLES
Amounts falling due within one year 14 (4,523,887 ) (5,370,401 )
NET CURRENT ASSETS 8,253,925 8,328,449
TOTAL ASSETS LESS CURRENT
LIABILITIES

12,466,872

12,656,386

PAYABLES
Amounts falling due after more than
one year

15

(95,442

)

(208,442

)

PROVISIONS FOR LIABILITIES 19 (690,169 ) (697,199 )
NET ASSETS 11,681,261 11,750,745

CAPITAL AND RESERVES
Called up share capital 20 200,002 200,002
Revaluation reserve 567,203 567,203
Retained earnings 10,914,056 10,983,540
SHAREHOLDERS' FUNDS 11,681,261 11,750,745

The financial statements were approved by the Board of Directors and authorised for issue on 20 September 2024 and were signed on its behalf by:





A McDermott - Director


TYRONE FABRICATION LIMITED (REGISTERED NUMBER: NI027091)

Statement of Changes in Equity
FOR THE YEAR ENDED 31 DECEMBER 2023

Called up
share Retained Revaluation Total
capital earnings reserve equity
£ £ £ £
Balance at 1 January 2022 200,002 10,372,518 567,203 11,139,723

Changes in equity
Dividends - (2,500,000 ) - (2,500,000 )
Total comprehensive income - 3,111,022 - 3,111,022
Balance at 31 December 2022 200,002 10,983,540 567,203 11,750,745

Changes in equity
Dividends - (4,000,000 ) - (4,000,000 )
Total comprehensive income - 3,930,516 - 3,930,516
Balance at 31 December 2023 200,002 10,914,056 567,203 11,681,261

TYRONE FABRICATION LIMITED (REGISTERED NUMBER: NI027091)

Notes to the Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2023

1. STATUTORY INFORMATION

Tyrone Fabrication Limited is a private company, limited by shares , registered in Northern Ireland. The company's registered number and registered office address can be found on the Company Information page.

2. STATEMENT OF COMPLIANCE

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland (FRS 102) issued by the Financial Reporting Council and in accordance with the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparation
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 judgment in applying the company's accounting policies.

Disclosure exemptions for qualifying entities under FRS 102
FRS 102 allows a qualifying entity certain disclosure exemptions, subject to certain conditions.

The company has taken advantage of the following exemptions:
- from preparing a Statement of cash flows on the basis that it is a qualifying entity, its cash flows are included in the cash flow statement of Redcherry Bidco Limited; and
- from disclosing the company's key management personnel compensation as required by FRS 102 paragraph 33.7.

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

Sale of goods:
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
- the significant risks and rewards of ownership have been transferred to the buyer;
- the company retains no continuing involvement or control over the goods;
- the amount of revenue can be measured reliably;
- it is probable that future economic benefits will flow through the company; and
- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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

TYRONE FABRICATION LIMITED (REGISTERED NUMBER: NI027091)

Notes to the Financial Statements - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

3. ACCOUNTING POLICIES - continued

Property, plant and equipment and depreciation
Property, plant and equipment are stated at cost or at valuation, less accumulated depreciation. Historical cost included 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 charge to depreciation is calculated to write off the original cost or valuation of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows:

Freehold property4% Straight line
Plant and machinery 20% Reducing balance
Fixtures and fittings15% Reducing balance
Motor vehicles 25% Reducing balance
Computer equipment 25% Straight line

The carrying values of property, plant and equipment are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable.

Inventories
Inventories are valued at the lower of cost and net realisable value. Cost is based on the cost of purchase on a first in, first out basis. Cost comprises expenditure incurred in the normal course of business in bringing inventories to their present location and condition. The cost of manufactured finished goods and work in progress includes raw materials, direct labour and other direct costs and related production overheads.

Full provision is made for obsolete and slow moving items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling.

Work in progress
Work in progress is stated at the lower of cost and net realisable value. Cost includes all costs incurred in bringing each contract to its present stage, plus an element of profit attributable to the current stage of completion. Net realisable value is based on estimated contract price less any further costs expected to be incurred in completion.

TYRONE FABRICATION LIMITED (REGISTERED NUMBER: NI027091)

Notes to the Financial Statements - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

3. ACCOUNTING POLICIES - continued

Financial instruments
The company has 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 group and related parties and 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 group and 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.


TYRONE FABRICATION LIMITED (REGISTERED NUMBER: NI027091)

Notes to the Financial Statements - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

3. ACCOUNTING POLICIES - continued
Taxation and deferred taxation
Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the year and is calculated using the tax rates and laws that have been enacted or substantially enacted at the Statement of Financial Position date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the Statement of Financial Position date where transactions or events have occurred at that date that will result in an obligation to pay more tax in the future, or a right to pay less tax in the future. Timing differences are temporary differences between the company's taxable profits and its results as stated in the financial statements.

Research and development
Research expenditure is written off to the Income Statement in the year in which it is incurred.

Foreign currencies
Functional and presentational currency
The company's functional and presentational currency is GBP.

Leasing and hire purchases
Property, plant and equipment held under leasing and Hire Purchases arrangements which transfer substantially all the risks and rewards of ownership to the company are capitalised and included in the Statement of Financial Position at their cost or valuation, less depreciation. The corresponding commitments are recorded as liabilities. Payments in respect of these obligations are treated as consisting of capital and interest elements, with interest charged to the Income Statement.

Employee benefits
The company 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 company 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 Balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Government grants
Capital grants received and receivable are treated as deferred income and amortised to the Income Statement annually over the useful economic life of the asset to which it relates. Revenue grants are credited to the Income Statement when received.

Finance costs
Finance costs are charged to the Income Statement 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.

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 company's shareholders.These amounts are recognised in the statement of changes in equity.

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.

TYRONE FABRICATION LIMITED (REGISTERED NUMBER: NI027091)

Notes to the 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 banks and bank overdrafts. Bank overdrafts are shown within current liabilities.

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 the proceeds.

Warranty provision
Provisions for warranty related costs are recognised based on experience of the costs of making good claims under warranty. The future cash flows are estimated based on a number of factors, including historical claim and cost experience, the duration of the warranty coverage and the nature of the product sold, and are discounted at a current pre-tax rate that reflects the risks specific to the provision. The estimate for the warranty related costs is reviewed annually and adjusted as appropriate through cost of sales.

4. SIGNIFICANT ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAI

The preparation of the financial statements in accordance with generally accepted accounting principles requires management to make estimates, judgements and assumptions that affect the reported amounts of assets and liabilities, income and expenditure in the reporting period. Actual results could differ from those estimates. Therefore, management believe the critical accounting policies where estimates, judgements and assumptions are necessarily applied are summarised below:

Warranty Provision
The company offers a warranty for any faulty goods sold. Provision is made for potential claims under warranty for goods which have been returned. 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 generated from the company's principal activities. No analysis of turnover is presented as the directors consider disclosure to be seriously prejudicial to the interests of the company.





















TYRONE FABRICATION LIMITED (REGISTERED NUMBER: NI027091)

Notes to the Financial Statements - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

6. EMPLOYEES AND DIRECTORS


2023 2022
£ £
Wages and salaries 4,255,837 3,712,516
Social security costs 425,471 377,453
Other pension costs 116,790 106,190
4,798,098 4,196,159

The average number of employees including directors employed during the year was as follows:
2023 2022

Production and selling 102 99
Administration and Directors 23 18
125 117

2023 2022
£ £
Directors' emoluments 638,635 527,194
Pension 10,308 10,670
Retirement benefits are accruing to four (2022: four) directors under a defined contribution scheme.

Highest paid director:
2023 2022
£ £
Aggregate emoluments 370,646 259,705
Pension Contributions 2,692 2,800

7. OPERATING PROFIT

The operating profit is stated after charging/(crediting):
20232022
££   
Depreciation - owned assets517,170465,779
Auditor's remuneration11,95011,340
Non audit services: Taxation10,99025,615
Non audit services: Advisory-1,815
Foreign exchange differences(3,005)(117,731)
Research and development-2,312

8. FINANCE COSTS
2023 2022
£ £
Bank interest paid 28,065 49,301
Hire purchase interest 11,610 9,502
39,675 58,803

TYRONE FABRICATION LIMITED (REGISTERED NUMBER: NI027091)

Notes to the Financial Statements - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

9. 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 911,239 363,427
Adjustments in respect of
prior periods 123,164 (64,488 )
Total current tax 1,034,403 298,939

Deferred tax:
Origination and reversal of temporary
differences

(8,491

)

10,114
Adjustments in respect of
prior periods 1,995 (5,575 )
Impact of rate change (534 ) -
Total deferred tax (7,030 ) 4,539

Tax on profit 1,027,373 303,478

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£ £
Profit before tax 4,957,889 3,414,500
Profit multiplied by the standard rate of corporation tax in the UK
of 23.520% (2022 - 19%)

1,166,095

648,755

Effects of:
Expenses not deductible for tax purposes 7,886 1,574
Income not taxable for tax purposes (4,462 ) -
Depreciation in excess of capital allowances 48,022 27,599
Adjustments to tax charge in respect of previous periods 125,159 (70,063 )
Impact of super deduction (42 ) -
Research and development tax credit (312,868 ) (152,000 )
Group relief (1,883 ) (387 )
Patent box regime - (152,000 )
Impact of rate change (534 ) -
Total tax charge 1,027,373 303,478

10. DIVIDENDS
2023 2022
£ £
Ordinary shares of £1 each
Interim 4,000,000 2,500,000

TYRONE FABRICATION LIMITED (REGISTERED NUMBER: NI027091)

Notes to the Financial Statements - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

11. PROPERTY, PLANT AND EQUIPMENT
Fixtures
Freehold Plant and and
property machinery fittings
£ £ £
COST
At 1 January 2023 5,087,656 3,489,446 663,326
Additions 137,998 212,527 45,658
At 31 December 2023 5,225,654 3,701,973 708,984
DEPRECIATION
At 1 January 2023 1,854,654 2,816,948 360,806
Charge for year 209,277 207,636 58,040
At 31 December 2023 2,063,931 3,024,584 418,846
NET BOOK VALUE
At 31 December 2023 3,161,723 677,389 290,138
At 31 December 2022 3,233,002 672,498 302,520

Motor Computer
vehicles equipment Totals
£ £ £
COST
At 1 January 2023 257,956 305,707 9,804,091
Additions 11,000 4,389 411,572
At 31 December 2023 268,956 310,096 10,215,663
DEPRECIATION
At 1 January 2023 189,583 254,163 5,476,154
Charge for year 23,748 27,861 526,562
At 31 December 2023 213,331 282,024 6,002,716
NET BOOK VALUE
At 31 December 2023 55,625 28,072 4,212,947
At 31 December 2022 68,373 51,544 4,327,937


12. INVENTORIES
2023 2022
£ £
Raw materials 2,477,686 2,035,521
Work-in-progress 165,370 154,468
Finished goods 94,868 148,626
2,737,924 2,338,615

There is no material difference between the replacement cost of inventories and their balance sheet values

TYRONE FABRICATION LIMITED (REGISTERED NUMBER: NI027091)

Notes to the Financial Statements - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

13. RECEIVABLES: AMOUNTS FALLING
DUE WITHIN ONE YEAR
2023 2022
£ £
Trade receivables 5,781,622 6,037,154
Amounts owed by group undertakings - 1,275,343
Other receivables 6,950 140,963
VAT 137,264 -
Prepayments and accrued income 581,972 575,794
6,507,808 8,029,254

Amounts owed by group undertakings are considered payable on demand and no interest is charged in respect of same.

14. PAYABLES: AMOUNTS FALLING DUE
WITHIN ONE YEAR
2023 2022
£ £
Bank loans and overdrafts (see note 16)
125,497

124,589
Trade payables 3,238,542 4,057,555
Amounts owed to group undertakings 226,832 -
Tax 291,097 25,666
Social security and other taxes 245,966 306,667
Other payables 15,579 40,079
Accrued expenses 380,374 815,845
4,523,887 5,370,401

Amounts owed to group undertakings are considered payable on demand and no interest is charged in respect of same.

15. PAYABLES: AMOUNTS FALLING DUE AFTER ONE YEAR
2023 2022
£ £
Bank loans (see note 16) 95,442 208,442

16. BANK LOANS

An analysis of the maturity of bank loans is given below:

2023 2022
£ £
Amounts falling due within one year or on demand:
Bank overdrafts 908 -
Bank loans 124,589 124,589
125,497 124,589

Amounts falling due between one and two years:
Bank loans - 1-2 years 95,442 124,589

Amounts falling due between two and five years:
Bank loans - 2-5 years - 83,853

TYRONE FABRICATION LIMITED (REGISTERED NUMBER: NI027091)

Notes to the Financial Statements - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

16. BANK LOANS - continued

The bank loan is repayable by monthly instalments commencing 30th November 2020 and carries interest of base rate plus 2.5%. The bank loan and overdraft are secured by fixed and floating charge over book debts of the company and leased mortgage over certain property.

17. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£ £
Within one year - 6,830
Between one and five years - 8,395
- 15,225

18. FINANCIAL INSTRUMENTS

2023 2022
Financial assets that are debt instruments measured at amortised
cost

£


£
5,788,572 9,953,460

Financial liabilities measured at amortised cost. 4,082,266 5,246,510

Financial assets measured at amortised cost comprise of trade debtors, amounts owed by group undertakings and other receivables.

Financial liabilities measured at amortised cost comprise of bank loans, trade payables, accrued expenses and other payables.

Amounts owed to group undertakings are considered payable on demand and no interest is charged in respect of same.

19. PROVISIONS FOR LIABILITIES
2023 2022
£ £
Deferred tax
Accelerated capital allowances 190,169 197,199
Warranty provisions 500,000 500,000
690,169 697,199

Deferred Other
tax provisions
£ £
Balance at 1 January 2023 197,199 350,000
Provided during year (7,030 ) -
Balance at 31 December 2023 190,169 350,000

A provision for warranty cost is recorded in cost of sales. The cost is estimated based on a number of factors, including the historical claim and cost experience and the nature of product sold.

TYRONE FABRICATION LIMITED (REGISTERED NUMBER: NI027091)

Notes to the Financial Statements - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £ £
200,002 Ordinary £1 200,002 200,002

21. PENSION COSTS - DEFINED CONTRIBUTION

The company operates a defined contribution pension scheme in respect of the company employees. The scheme and its assets are held by independent managers. The pension charge represents contributions due from the company and amounted to £116,790 (2022: £106,190). At the year end, there is £Nil (2022: £23,241) outstanding in respect of pension contributions.

22. RELATED PARTY TRANSACTIONS

The company has availed of the exemption under FRS 102 in relation to the disclosure of transactions with group companies.

The following related party transactions have been identified that fall to be disclosed under FRS102 paragraph 33 'Related Party Transactions'.

The company had transactions during the year amounting to £36,488 with other companies connected to it by virtue of common directorship.

23. PARENT AND ULTIMATE PARENT COMPANY

The company regards Redcherry Bidco Limited as its parent company.

Redcherry Bidco Limited has included the results of Tyrone Fabrication Limited in its group financial statements, copies of which are available from its business address at 87 Goland Road, Ballygawley, Dungannon, Co. Tyrone, BT70 2LA.