Company registration number 00958369 (England and Wales)
TARPEY-HARRIS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
TARPEY-HARRIS LIMITED
COMPANY INFORMATION
Directors
J H Freimund
I Simpson
J Steen
K Steffens
M Urch
(Appointed 1 April 2024)
P A Lewis
(Appointed 19 January 2023)
Secretary
P McGreevy
Company number
00958369
Registered office
Morvern House
Ormonde Drive
Denby
Ripley
Derbyshire
DE5 8LE
Auditor
UHY Hacker Young
14 Park Row
Nottingham
NG1 6GR
TARPEY-HARRIS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Statement of income and retained earnings
8
Balance sheet
9 - 10
Notes to the financial statements
11 - 25
TARPEY-HARRIS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

The company's turnover increased to £11,417,914 (2022 - £8,716,695). EBITDA for the year is report at £1,023,018 (2022 - £460,645). Profit before tax for the year is reported at £83,709 (2022 - loss of £418,611).

 

The recovery that started in 2022 in the Aerospace sector continued into 2023. The IGT sector remained strong and the outlook for both sectors remains very positive.

Principal risks and uncertainties

The principal risks to the business are those associated with the UK economy of constrained capacity and high interest rates. It is a challenging environment to recruit the necessary staff to meet increasing demand and high interest rates have also impacted the business. However, the company has been successful in its recruitment campaigns and is meeting our customers’ requirements. Strong cash generation in 2023 is reducing debt and therefore the impact of interest rate increases.

Key performance indicators

The company considers EBITDA, the order book and the cash position to be the Key Performance Indicators

(KPIs). EBITDA has shown considerable improvement in the last 12 months and we are now performing above pre-Covid levels. With a strong order book this trend is forecast to continue into 2025.

On behalf of the board

P A Lewis
Director
24 September 2024
TARPEY-HARRIS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

Principal activities

The principal activities of the company continued to be that of precision engineering, tool making and wax injection moulding and assembly.

Results and dividends

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

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

N J France
(Resigned 2 February 2024)
J H Freimund
M Holland
(Resigned 6 March 2023)
S Roe
(Resigned 11 January 2023)
P Schack
(Resigned 27 January 2023)
I Simpson
J Steen
K Steffens
M Urch
(Appointed 1 April 2024)
P A Lewis
(Appointed 19 January 2023)
Financial instruments
Liquidity risk

The company monitors its cash flow on a daily basis as part of its normal control procedures.

Interest rate risk

The company is exposed to interest rate risk as a result of the finance lease obligations and bank loans in place which are reviewed regularly and kept to a minimum.

Foreign currency risk

The company is exposed to foreign exchange risk as a result of trading in foreign currencies. To mitigate this risk the company has bank accounts in currencies other than GBP.

Credit risk

The company's principal financial assets are bank balances and trade debtors. The company’s credit risk is primarily attributable to its trade debtors. The company undertakes credit checks and monitoring as appropriate and has no significant concentration of uninsured credit risk.

TARPEY-HARRIS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Auditor

The auditor, UHY Hacker Young, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

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

 

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

 

 

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

Statement of disclosure to auditor

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

Medium-sized companies exemption

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

On behalf of the board
P A Lewis
Director
24 September 2024
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TARPEY-HARRIS LIMITED
- 4 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TARPEY-HARRIS LIMITED
- 5 -

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

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

INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TARPEY-HARRIS LIMITED
- 6 -
Auditor's responsibilities for the audit of the financial statements

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

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

Based on our understanding of the Company and the industry in which it operates we assessed the risks of the Company acting contrary to complying with laws and regulations, including fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the Financial Statements, such as the Companies Act 2006. We evaluated management’s opportunities for fraudulent manipulation of the Financial Statements (including the risk of override of controls), and determined that the principal risks were related to inflated revenue and profit.

Audit procedures performed included:

 

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the Financial Statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

 

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

INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TARPEY-HARRIS LIMITED
- 7 -

Use of our report

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

Andrew Timms (Senior Statutory Auditor)
For and on behalf of UHY Hacker Young
26 September 2024
Chartered Accountants
Statutory Auditor
TARPEY-HARRIS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
11,417,914
8,716,695
Cost of sales
(7,448,362)
(6,132,805)
Gross profit
3,969,552
2,583,890
Administrative expenses
(3,683,164)
(2,983,282)
Other operating income
-
0
111,750
Operating profit/(loss)
4
286,388
(287,642)
Interest payable and similar expenses
7
(202,679)
(130,969)
Profit/(loss) before taxation
83,709
(418,611)
Tax on profit/(loss)
8
23,057
280,953
Profit/(loss) for the financial year
106,766
(137,658)
Retained earnings brought forward
797,806
935,464
Retained earnings carried forward
904,572
797,806

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

TARPEY-HARRIS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
9
320,277
399,763
Other intangible assets
9
90,183
180,363
Total intangible assets
410,460
580,126
Tangible assets
10
2,609,196
3,632,093
Investments
11
2,138,302
2,138,302
5,157,958
6,350,521
Current assets
Stocks
13
89,928
96,579
Debtors
14
4,136,136
3,379,445
Cash at bank and in hand
298,656
61,791
4,524,720
3,537,815
Creditors: amounts falling due within one year
15
(6,814,394)
(6,796,911)
Net current liabilities
(2,289,674)
(3,259,096)
Total assets less current liabilities
2,868,284
3,091,425
Creditors: amounts falling due after more than one year
16
(704,881)
(1,087,004)
Provisions for liabilities
Deferred tax liability
19
363,667
311,451
(363,667)
(311,451)
Net assets
1,799,736
1,692,970
Capital and reserves
Called up share capital
21
822,582
822,582
Share premium account
22
72,582
72,582
Profit and loss reserves
22
904,572
797,806
Total equity
1,799,736
1,692,970

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

TARPEY-HARRIS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
The financial statements were approved by the board of directors and authorised for issue on 24 September 2024 and are signed on its behalf by:
P A Lewis
Director
Company registration number 00958369 (England and Wales)
TARPEY-HARRIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

Tarpey-Harris Limited is a private company limited by shares incorporated in England and Wales. The registered office is Morvern House, Ormonde Drive, Denby, Ripley, Derbyshire, DE5 8LE.

1.1
Accounting convention

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

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

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

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

 

 

Tarpey-Harris Limited is a wholly owned subsidiary of Morvern Group Limited and the results of Tarpey-Harris Limited are included in the consolidated financial statements of Morvern Group Limited which are available from its registered office, Morvern House, Ormonde House, Denby, Ripley, Derbyshire, DE5 8LE.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

1.2
Going concern

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

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

TARPEY-HARRIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -

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).

1.4
Intangible fixed assets - goodwill

Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

Goodwill is tested for impairment in accordance with Section 27 Impairment of assets when there is an indication that goodwill maybe impaired.

1.5
Intangible fixed assets other than goodwill

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

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

Customer relationship intangibles
7 years
Customer order book
1 year
1.6
Tangible fixed assets

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

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

Leasehold improvements
10 to 20 years
Plant and machinery
3 to 10 years
Fixtures, fittings and equipment
3 to 5 years
Motor vehicles
5 years

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

Tangible fixed assets are not depreciated in the month of acquisition but are in the subsequent months unless the asset is not fully operational. Tangible fixed assets are depreciated in the month of disposal.

TARPEY-HARRIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.7
Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

1.8
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9
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.

1.10
Cash and cash equivalents

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

1.11
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. 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 cost less impairment as the investments are not publicly traded and fair values cannot be measured reliably.

TARPEY-HARRIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

 

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. Trade creditors are recognised initially at transaction price.

Other financial liabilities

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

 

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

Derecognition of financial liabilities

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

TARPEY-HARRIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.12
Equity instruments

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

1.13
Taxation

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

Current tax

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

Deferred tax

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

 

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity .

1.14
Employee benefits

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

 

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

 

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

1.15
Retirement benefits

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

TARPEY-HARRIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.16
Leases

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

 

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

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

1.17
Foreign exchange

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

2
Judgements and key sources of estimation uncertainty

In the application of the 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.

TARPEY-HARRIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
8,832,047
7,046,090
European Union
35,750
17,955
Rest of the World
2,550,117
1,652,650
11,417,914
8,716,695
4
Operating profit/(loss)
2023
2022
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(188,459)
(151,128)
Fees payable to the company's auditor for the audit of the company's financial statements
19,200
18,000
Depreciation of owned tangible fixed assets
415,950
281,363
Depreciation of tangible fixed assets held under finance leases
151,014
297,258
Loss/(profit) on disposal of tangible fixed assets
8,130
(775)
Amortisation of intangible assets
169,666
169,666
Operating lease charges
506,835
351,246
5
Employees

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

2023
2022
Number
Number
Administration
10
6
Selling and distribution
4
3
Production (including management)
139
118
Total
153
127
TARPEY-HARRIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 18 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
5,500,554
4,351,528
Social security costs
455,036
422,373
Pension costs
207,136
220,471
6,162,726
4,994,372
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
840,744
617,023
Company pension contributions to defined contribution schemes
48,342
83,333
889,086
700,356

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2022 - 4).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
174,931
156,833
Company pension contributions to defined contribution schemes
14,728
14,027
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
70,016
20,469
Interest payable to group undertakings
50,000
50,000
Interest on finance leases and hire purchase contracts
69,748
60,500
Other interest
12,915
-
0
202,679
130,969
TARPEY-HARRIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(74,637)
(149,077)
Adjustments in respect of prior periods
(636)
(55,381)
Total current tax
(75,273)
(204,458)
Deferred tax
Origination and reversal of timing differences
52,216
(76,495)
Total tax credit
(23,057)
(280,953)

The 23.52% rate used in these accounts is a hybrid rate due to the main rate of Corporation Tax having increased from 19.00% to 25.00% from 1 April 2023. The differences are explained below:

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

2023
2022
£
£
Profit/(loss) before taxation
83,709
(418,611)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
19,688
(79,536)
Tax effect of expenses that are not deductible in determining taxable profit
3,878
3,221
Adjustments in respect of prior years
(636)
(55,381)
Effect of change in corporation tax rate
3,090
(18,359)
Group relief
30,596
63,123
Amortisation on assets not qualifying for tax allowances
39,905
32,237
Research and development tax credit
(122,882)
(222,222)
Other non-reversing timing differences
4,704
-
0
Super-deduction
(1,400)
(4,036)
Taxation credit for the year
(23,057)
(280,953)
TARPEY-HARRIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
9
Intangible fixed assets
Goodwill
Customer relationship intangibles
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
797,193
736,263
1,533,456
Amortisation
At 1 January 2023
397,430
555,900
953,330
Amortisation charged for the year
79,486
90,180
169,666
At 31 December 2023
476,916
646,080
1,122,996
Carrying amount
At 31 December 2023
320,277
90,183
410,460
At 31 December 2022
399,763
180,363
580,126
10
Tangible fixed assets
Leasehold land and buildings
Plant and machinery
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
431,281
6,595,790
574,061
-
0
7,601,132
Additions
68,351
386,079
173,180
59,824
687,434
Disposals
-
0
(1,135,237)
(9,754)
-
0
(1,144,991)
At 31 December 2023
499,632
5,846,632
737,487
59,824
7,143,575
Depreciation and impairment
At 1 January 2023
221,270
3,260,846
486,923
-
0
3,969,039
Depreciation charged in the year
40,895
463,722
62,347
-
0
566,964
Eliminated in respect of disposals
-
0
-
0
(1,624)
-
0
(1,624)
At 31 December 2023
262,165
3,724,568
547,646
-
0
4,534,379
Carrying amount
At 31 December 2023
237,467
2,122,064
189,841
59,824
2,609,196
At 31 December 2022
210,011
3,334,944
87,138
-
0
3,632,093
TARPEY-HARRIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Tangible fixed assets
(Continued)
- 21 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2023
2022
£
£
Plant and machinery
958,079
1,905,152
Motor vehicles
51,848
-
0
1,009,927
1,905,152
11
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
12
2,138,302
2,138,302
12
Subsidiaries

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

Name of undertaking
Address
Class of
% Held
shares held
Direct
Altaras International Worcester Limited
England and Wales
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

Morvern House, Ormonde Drive, Denby, Ripley, England, DE5 8LE
13
Stocks
2023
2022
£
£
Raw materials and consumables
89,928
96,579
TARPEY-HARRIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,801,189
2,823,440
Corporation tax recoverable
74,637
309,801
Amounts owed by group undertakings
1,047,067
-
0
Prepayments and accrued income
213,243
246,204
4,136,136
3,379,445

The trade debtors balance includes £2,374,259 (2022 - £2,744,691) which is covered by an invoice discounting arrangement. These assets have not been derecognised from the balance sheet because the company remains ultimately responsible for any unpaid balances, so the directors consider significant risks to have been retained.

15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
17
649,519
1,041,391
Obligations under finance leases
18
376,764
447,706
Trade creditors
564,791
637,860
Amounts owed to group undertakings
3,370,294
3,857,827
Taxation and social security
472,381
263,722
Other creditors
376,686
68,974
Accruals and deferred income
1,003,959
479,431
6,814,394
6,796,911

The bank loans represents an invoice discounting facility of £649,519 (2022 - £1,041,391) which is secured by way of a fixed and floating charge over the assets of the company.

 

The obligations under finance leases are secured on the assets to which they relate.

16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
18
704,881
1,087,004

The obligations under finance leases are secured on the assets to which they relate.

TARPEY-HARRIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
17
Loans and overdrafts
2023
2022
£
£
Bank loans
649,519
1,041,391
Payable within one year
649,519
1,041,391
18
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
427,672
490,192
In two to five years
738,437
1,186,201
In over five years
48,359
-
0
1,214,468
1,676,393
Less: future finance charges
(132,823)
(141,683)
1,081,645
1,534,710
19
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
380,337
318,301
Other short term timing difference
(10,700)
-
Retirement benefit obligations
(5,970)
(6,850)
363,667
311,451
TARPEY-HARRIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
19
Deferred taxation
(Continued)
- 24 -
2023
Movements in the year:
£
Liability at 1 January 2023
311,451
Charge to profit or loss
52,216
Liability at 31 December 2023
363,667
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
207,136
220,471

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.

 

At the balance sheet date, the company owed contributions of £57,103 (2022 - £37,985).

21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
750,000
750,000
750,000
750,000
Ordinary B shares of £1 each
72,582
72,582
72,582
72,582
822,582
822,582
822,582
822,582

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.

 

The holders of B ordinary shares rank pari passu with ordinary shares unless the company is indebted to the majority shareholder.

22
Reserves
Share premium

Includes the premium on issue of equity shares, net of any issue costs.

Profit and loss reserves

This compromises the opening retained earnings and the profit for the year as set out in the company statement of changes in equity.

TARPEY-HARRIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
23
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
409,054
189,458
Between two and five years
1,475,025
608,824
In over five years
1,225,803
-
0
3,109,882
798,282
24
Capital commitments

Amounts contracted for but not provided in the financial statements:

2023
2022
£
£
Acquisition of tangible fixed assets
-
77,180
25
Related party transactions

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.

 

During the year, the company made sales of £75,115 (2022 - £nil), transferred sales of £69,919 and recharged costs of £2,489,755 (2022 - £nil) to a company under common control.

 

As at the year end, the company had amounts owed from a company under common control of £1,047,067 (2022 - £nil).

26
Ultimate controlling party

Morvern Group Limited is the ultimate and immediate parent company, by virtue of owning all of the allotted share capital of the company.

The company is controlled by the directors.

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