Allam Marine Limited |
Strategic Report |
|
Review of the business including key performance indicators |
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Turnover for the year has decreased by 35%. However, the business has achieved a better profit margin compared to the previous year. Although the downturn in sales is an industry-wide trend, the company is well placed to take advantage of opportunities as they arise. |
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Administrative costs have increased by 61%. This is a result of the recruitment of new employees during the financial year together with increases in the rate of wages and salaries. Energy costs have also increased significantly. |
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The director, in accordance with s. 172, seeks to promote the long term success of the company and consider the interests of all stakeholders, by regular meetings with management coupled with substantial skills and experience. |
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Engagement with suppliers, customers and others |
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The directors seek to foster good relationships with the company's suppliers and customers. |
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Streamline energy and carbon reporting |
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The company has analysed its consumption of UK gas and energy in line with the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018. The total consumption for the year ended 31 December 2023 is 310,759 Kwh. This consumption is solely Electricity. This equates to total UK emissions of 64.35 tCO2e and represents an intensity ratio of 0.7 (tCO2e per £m of turnover). |
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The company proactively monitors its energy consumption and routinely looks for ways to improve its energy efficiency. |
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Future Developments |
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The company's manufacturing and storage facilities are able to respond quickly to changes in demand because the business has increased it overall stock levels during the financial year. The company is the first port of call for customers seeking generators at short notice. |
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Principal risks and uncertainties |
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The company's main risks are in connection with economic activity in the generating sets market. Because the company exports over 90% of its products, it is exposed to fluctuations in the exchange rate between the pound and various currencies. |
|
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This report was approved by the board on 10 September 2024 and signed on its behalf. |
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E Allam |
Director |
|
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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. |
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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. |
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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. |
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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. |
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Matters on which we are required to report by exception |
Allam Marine Limited |
Statement of Cash Flows |
for the year ended 31 December 2023 |
|
Notes |
|
2023 |
|
2022 |
£ |
£ |
Operating activities |
Profit for the financial year |
1,865,245 |
|
4,147,102 |
|
Adjustments for: |
Profit on sale of fixed assets |
(4,770) |
|
(18,623) |
Interest receivable |
(456,099) |
|
(440,043) |
Tax on profit on ordinary activities |
(137,607) |
|
(197,351) |
Depreciation |
234,925 |
|
222,054 |
Increase in stocks |
(27,954,335) |
|
(593,310) |
Decrease in debtors |
5,759,600 |
|
10,678,318 |
(Decrease)/increase in creditors |
(10,195,786) |
|
2,976,515 |
|
|
|
(30,888,827) |
|
16,774,662 |
|
Interest received |
456,099 |
|
440,043 |
Corporation tax paid |
127,257 |
|
(764,258) |
|
Cash (used in)/generated by operating activities |
(30,305,471) |
|
16,450,447 |
|
|
|
|
|
|
Investing activities |
Payments to acquire tangible fixed assets |
(90,611) |
|
(117,868) |
Proceeds from sale of tangible fixed assets |
44,551 |
|
18,623 |
|
Cash used in investing activities |
(46,060) |
|
(99,245) |
|
|
|
|
|
|
Net cash (used)/generated |
Cash (used in)/generated by operating activities |
(30,305,471) |
|
16,450,447 |
Cash used in investing activities |
(46,060) |
|
(99,245) |
|
Net cash (used)/generated |
(30,351,531) |
|
16,351,202 |
|
Cash and cash equivalents at 1 January |
45,161,497 |
|
28,810,295 |
Cash and cash equivalents at 31 December |
14,809,966 |
|
45,161,497 |
|
|
|
|
|
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Cash and cash equivalents comprise: |
Cash at bank |
14,809,966 |
|
45,161,497 |
|
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|
|
|
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Investment property |
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Investment property is initially recognised at cost and then subsequently measured at fair value. Changes in value are recognised in profit or loss. |
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Investments |
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Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account. |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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2 |
Critical accounting estimates and judgements |
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In order to apply the company's accounting policies, as described in note1 above, the directors are required to make judgements and estimates in respect of the carrying value of assets and liabilities which may not be apparent from other sources of information. The directors base these critical accounting judgements and estimations on previous historical experience and other factors which the directors judge to be relevant. Judgements and estimates will invariably differ from actual results and hence such judgements and estimates are reviewed by the directors on an ongoing basis. |
|
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The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on the amounts recognised in the financial statements: |
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Stocks |
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Stocks are valued at the lower of cost and net realisable value. Where items are in stock for a long period the directors will estimate their realisable value, and make provision, where necessary. The directors constantly review and consider the stock levels and monitor the sale of items held for long periods. In assessing any provision the directors take into account their past experience of the sale of items and whether the item model has been changed by the supplier. |
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|
3 |
Analysis of turnover |
2023 |
|
2022 |
£ |
£ |
|
|
Sale of goods |
45,052,497 |
|
68,889,505 |
|
|
|
|
|
|
|
|
|
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By geographical market: |
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|
UK |
4,471,365 |
|
18,016,710 |
|
Europe |
2,288,372 |
|
11,769,681 |
|
Rest of world |
38,292,760 |
|
39,103,114 |
|
|
|
|
|
|
45,052,497 |
|
68,889,505 |
|
|
|
|
|
|
|
|
|
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4 |
Operating profit |
2023 |
|
2022 |
£ |
£ |
|
This is stated after charging: |
|
|
Depreciation of owned fixed assets |
234,925 |
|
222,054 |
|
Auditors' remuneration for audit services |
14,500 |
|
12,000 |
|
Auditors' remuneration for other services |
2,400 |
|
3,600 |
|
Carrying amount of stock sold |
40,521,643 |
|
63,379,262 |
|
|
|
|
|
|
|
|
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5 |
Staff costs |
2023 |
|
2022 |
£ |
£ |
|
|
Wages and salaries |
1,035,043 |
|
635,600 |
|
Social security costs |
95,361 |
|
55,426 |
|
Other pension costs |
17,482 |
|
12,906 |
|
|
|
|
|
|
1,147,886 |
|
703,932 |
|
|
|
|
|
|
|
|
|
|
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Average number of employees during the year |
Number |
Number |
|
|
Administration |
18 |
|
10 |
|
Manufacturing |
18 |
|
19 |
|
|
|
|
|
|
36 |
|
29 |
|
|
|
|
|
|
|
|
|
|
6 |
Taxation |
2023 |
|
2022 |
£ |
£ |
|
Analysis of charge in period |
|
Current tax: |
|
UK corporation tax on profits of the period |
454,560 |
|
(214,602) |
|
Adjustments in respect of previous periods |
(581,412) |
|
- |
|
|
|
|
|
|
(126,852) |
|
(214,602) |
|
|
|
|
|
|
|
|
|
|
Deferred tax: |
|
Origination and reversal of timing differences |
(10,755) |
|
17,251 |
|
|
|
|
|
|
|
|
|
|
|
Tax on loss on ordinary activities |
(137,607) |
|
(197,351) |
|
|
|
|
|
|
|
|
|
|
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Factors affecting tax charge for period |
|
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
|
|
|
|
|
|
|
2023 |
|
2022 |
£ |
£ |
|
Profit on ordinary activities before tax |
1,727,638 |
|
3,949,751 |
|
|
|
|
|
|
|
|
|
|
Standard rate of corporation tax in the UK |
23.52% |
|
20.00% |
|
£ |
£ |
|
Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
406,340 |
|
789,950 |
|
|
Effects of: |
|
Expenses not deductible for tax purposes |
48,220 |
|
(38,577) |
|
Capital allowances for period in excess of depreciation |
- |
|
22,782 |
|
Utilisation of tax losses |
- |
|
(988,757) |
|
Adjustments to tax charge in respect of previous periods |
(581,412) |
|
- |
|
|
Current tax charge for period |
(126,852) |
|
(214,602) |
|
|
|
|
|
|
|
|
|
|
7 |
Tangible fixed assets |
|
|
Land and buildings |
|
Plant and machinery |
|
Fixtures, fittings, tools and equipment |
|
Total |
|
|
At cost |
|
At cost |
|
At cost |
£ |
£ |
£ |
£ |
|
Cost or valuation |
|
At 1 January 2023 |
11,129,327 |
|
1,281,850 |
|
202,030 |
|
12,613,207 |
|
Additions |
10,000 |
|
72,880 |
|
7,731 |
|
90,611 |
|
Disposals |
(90,434) |
|
(250,101) |
|
(114,184) |
|
(454,719) |
|
At 31 December 2023 |
11,048,893 |
|
1,104,629 |
|
95,577 |
|
12,249,099 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 January 2023 |
1,292,613 |
|
1,048,733 |
|
183,510 |
|
2,524,856 |
|
Charge for the year |
166,370 |
|
61,592 |
|
6,963 |
|
234,925 |
|
On disposals |
(59,955) |
|
(242,935) |
|
(112,048) |
|
(414,938) |
|
At 31 December 2023 |
1,399,028 |
|
867,390 |
|
78,425 |
|
2,344,843 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 December 2023 |
9,649,865 |
|
237,239 |
|
17,152 |
|
9,904,256 |
|
At 31 December 2022 |
9,836,714 |
|
233,117 |
|
18,520 |
|
10,088,351 |
|
|
|
|
|
|
|
|
|
|
|
8 |
Investments |
Investments in |
subsidiary |
undertakings |
£ |
|
Cost |
|
At 1 January 2023 |
285 |
|
|
At 31 December 2023 |
285 |
|
|
|
|
|
|
|
|
|
|
|
The company holds 20% or more of the share capital of the following companies: |
|
Capital and |
Profit (loss) |
|
Company |
Shares held |
reserves |
for the year |
|
|
Class |
% |
£ |
£ |
|
Tempest Diesels Limited |
Ordinary |
100 |
|
100 |
|
- |
|
|
9 |
Stocks |
2023 |
|
2022 |
£ |
£ |
|
|
Raw materials and consumables |
49,797,576 |
|
21,843,241 |
|
|
|
|
|
|
|
|
|
|
10 |
Debtors |
2023 |
|
2022 |
£ |
£ |
|
|
Trade debtors |
6,903,406 |
|
13,179,240 |
|
Amounts owed by group undertakings and undertakings in which the company has a participating interest |
|
1,000,000 |
|
- |
|
Other debtors |
552,635 |
|
1,111,499 |
|
Prepayments and accrued income |
259,176 |
|
184,078 |
|
|
|
|
|
|
8,715,217 |
|
14,474,817 |
|
|
|
|
|
|
|
|
|
|
11 |
Creditors: amounts falling due within one year |
2023 |
|
2022 |
£ |
£ |
|
|
Trade creditors |
8,090,118 |
|
18,326,326 |
|
Amounts owed to group undertakings and undertakings in which the company has a participating interest |
|
100 |
|
100 |
|
Corporation tax |
14,560 |
|
14,155 |
|
Other taxes and social security costs |
51,481 |
|
34,013 |
|
Accruals and deferred income |
34,954 |
|
12,000 |
|
|
|
|
|
|
8,191,213 |
|
18,386,594 |
|
|
|
|
|
|
|
|
|
|
12 |
Deferred taxation |
2023 |
|
2022 |
£ |
£ |
|
|
Accelerated capital allowances |
29,185 |
|
39,940 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
2022 |
£ |
£ |
|
|
At 1 January |
39,940 |
|
22,689 |
|
(Credited)/charged to the profit and loss account |
(10,755) |
|
17,251 |
|
|
At 31 December |
29,185 |
|
39,940 |
|
|
|
|
|
|
|
|
|
|
|
13 |
Share capital |
Nominal |
|
2023 |
|
2023 |
|
2022 |
value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares |
£1 each |
|
10,000,000 |
|
10,000,000 |
|
10,000,000 |
|
|
|
|
|
|
|
|
|
|
14 |
Profit and loss account |
2023 |
|
2022 |
£ |
£ |
|
|
At 1 January |
63,141,657 |
|
58,994,555 |
|
Profit for the financial year |
1,865,245 |
|
4,147,102 |
|
|
At 31 December |
65,006,902 |
|
63,141,657 |
|
|
|
|
|
|
|
|
|
|
15 |
Controlling party |
|
|
The company's parent is Allamhouse Limited, a company incorporated in England. Allamhouse Limited prepares group accounts which are available at the address in note 18. Allamhouse Limited is controlled by the Allam family. |
|
|
16 |
Presentation currency |
|
|
The financial statements are presented in Sterling. |
|
|
17 |
Legal form of entity and country of incorporation |
|
|
Allam Marine Limited is a private company limited by shares and incorporated in England. |
|
|
18 |
Principal place of business |
|
|
The address of the company's principal place of business and registered office is: |
|
|
Wyke Way |
|
Melton West Business Park |
|
Melton |
|
Hull |
|
HU14 3BQ |