Caseware UK (AP4) 2023.0.135 2023.0.135 2024-01-312024-01-31false612023-02-01falseProvision of engineering and fabrication services77falsefalse NI675585 2023-02-01 2024-01-31 NI675585 2022-02-01 2023-01-31 NI675585 2024-01-31 NI675585 2023-01-31 NI675585 2022-02-01 NI675585 2 2023-02-01 2024-01-31 NI675585 2 2022-02-01 2023-01-31 NI675585 3 2023-02-01 2024-01-31 NI675585 3 2022-02-01 2023-01-31 NI675585 4 2023-02-01 2024-01-31 NI675585 4 2022-02-01 2023-01-31 NI675585 5 2023-02-01 2024-01-31 NI675585 5 2022-02-01 2023-01-31 NI675585 d:Director1 2023-02-01 2024-01-31 NI675585 d:Director2 2023-02-01 2024-01-31 NI675585 d:RegisteredOffice 2023-02-01 2024-01-31 NI675585 d:Agent1 2023-02-01 2024-01-31 NI675585 e:PlantMachinery 2023-02-01 2024-01-31 NI675585 e:PlantMachinery 2024-01-31 NI675585 e:PlantMachinery 2023-01-31 NI675585 e:PlantMachinery e:OwnedOrFreeholdAssets 2023-02-01 2024-01-31 NI675585 e:MotorVehicles 2023-02-01 2024-01-31 NI675585 e:MotorVehicles 2024-01-31 NI675585 e:MotorVehicles 2023-01-31 NI675585 e:MotorVehicles e:OwnedOrFreeholdAssets 2023-02-01 2024-01-31 NI675585 e:FurnitureFittings 2023-02-01 2024-01-31 NI675585 e:FurnitureFittings 2024-01-31 NI675585 e:FurnitureFittings 2023-01-31 NI675585 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-02-01 2024-01-31 NI675585 e:OwnedOrFreeholdAssets 2023-02-01 2024-01-31 NI675585 e:CurrentFinancialInstruments 2024-01-31 NI675585 e:CurrentFinancialInstruments 2023-01-31 NI675585 e:Non-currentFinancialInstruments 2024-01-31 NI675585 e:Non-currentFinancialInstruments 2023-01-31 NI675585 e:CurrentFinancialInstruments e:WithinOneYear 2024-01-31 NI675585 e:CurrentFinancialInstruments e:WithinOneYear 2023-01-31 NI675585 e:Non-currentFinancialInstruments e:AfterOneYear 2024-01-31 NI675585 e:Non-currentFinancialInstruments e:AfterOneYear 2023-01-31 NI675585 e:ReportableOperatingSegment1 2023-02-01 2024-01-31 NI675585 e:ReportableOperatingSegment1 2022-02-01 2023-01-31 NI675585 f:UnitedKingdom 2023-02-01 2024-01-31 NI675585 f:UnitedKingdom 2022-02-01 2023-01-31 NI675585 e:UKTax 2023-02-01 2024-01-31 NI675585 e:UKTax 2022-02-01 2023-01-31 NI675585 e:ShareCapital 2023-02-01 2024-01-31 NI675585 e:ShareCapital 2024-01-31 NI675585 e:ShareCapital 2022-02-01 2023-01-31 NI675585 e:ShareCapital 2023-01-31 NI675585 e:ShareCapital 2022-02-01 NI675585 e:RetainedEarningsAccumulatedLosses 2023-02-01 2024-01-31 NI675585 e:RetainedEarningsAccumulatedLosses 2024-01-31 NI675585 e:RetainedEarningsAccumulatedLosses 2022-02-01 2023-01-31 NI675585 e:RetainedEarningsAccumulatedLosses 2023-01-31 NI675585 e:RetainedEarningsAccumulatedLosses 2022-02-01 NI675585 e:AcceleratedTaxDepreciationDeferredTax 2024-01-31 NI675585 e:AcceleratedTaxDepreciationDeferredTax 2023-01-31 NI675585 e:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2023-02-01 2024-01-31 NI675585 e:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2024-01-31 NI675585 d:OrdinaryShareClass1 2023-02-01 2024-01-31 NI675585 d:OrdinaryShareClass1 2024-01-31 NI675585 d:OrdinaryShareClass1 2023-01-31 NI675585 d:FRS102 2023-02-01 2024-01-31 NI675585 d:Audited 2023-02-01 2024-01-31 NI675585 d:FullAccounts 2023-02-01 2024-01-31 NI675585 d:PrivateLimitedCompanyLtd 2023-02-01 2024-01-31 NI675585 e:HirePurchaseContracts e:WithinOneYear 2024-01-31 NI675585 e:HirePurchaseContracts e:WithinOneYear 2023-01-31 NI675585 e:HirePurchaseContracts e:BetweenOneFiveYears 2024-01-31 NI675585 e:HirePurchaseContracts e:BetweenOneFiveYears 2023-01-31 NI675585 e:PlantMachinery e:LeasedAssetsHeldAsLessee 2024-01-31 NI675585 e:PlantMachinery e:LeasedAssetsHeldAsLessee 2023-01-31 NI675585 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2024-01-31 NI675585 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2023-01-31 NI675585 e:LeasedAssetsHeldAsLessee 2024-01-31 NI675585 e:LeasedAssetsHeldAsLessee 2023-01-31 NI675585 g:PoundSterling 2023-02-01 2024-01-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: NI675585










SPECFAB LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2024

 
SPECFAB LIMITED
 

COMPANY INFORMATION


Directors
Dermot McCabe 
Martin McCabe 




Registered number
NI675585



Registered office
24 Farlough Road

Dungannon

Co. Tyrone

BT71 4DT




Independent auditors
AAB Group Accountants Limited

Howard House

30 Northland Row

Dungannon

Co. Tyrone

BT71 6AP




Bankers
Bank of Ireland
24 Scotch Street

Dungannon

Co. Tyrone

Northern Ireland




Solicitors
FJ Madden
The Square

Coalisland

Co. Tyrone

BT71 4LN





 
SPECFAB LIMITED
 

CONTENTS



Page
Strategic report
 
 
1 - 2
Directors' report
 
 
3 - 4
Independent auditors' report
 
 
5 - 8
Statement of comprehensive income
 
 
9
Balance sheet
 
 
10
Statement of changes in equity
 
 
11
Statement of cash flows
 
 
12
Notes to the financial statements
 
 
13 - 25


 
SPECFAB LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024

Introduction
 
The directors present the strategic report for the year ended 31 January 2024.

Business review
 
The company's principal activity during the year was the provision of engineering and fabrication services.
The company achieved turnover of £12.5m (2023: £10.7m) in the year ended 31 January 2024 with a gross profit margin of 18.0% (2023: 11.7%). The company's emphasis going forward is to secure turnover that results in profitability and cash flow, along with an increase in output of productivity.
The company's asset base is strong, with net assets of £1.4m for the year ended 31 January 2024 (2023: £440k).

Principal risks and uncertainties
 
The company uses financial instruments in its business. The core risks associated with the company's financial instruments are currency risk, interest rate risk, inflation rate risk and credit risk. The board reviews and agrees policies for the prudent management of these risk as follows:
Currency Risk
The company trades with customers in both Dollar and Euro, variances affecting operational activities in this regard are reflected in the profit and loss accounts in the years in which they arise. 
Finance and interest rate risk
The company's objective in relation to interest rate management is to minimise the impact of interest rate volatility on interest costs in order to protect recorded profitability. A long term strategy for the management of the exposure considers the amounts of floating rate debt that is anticipatedover the period and the sensitivity of the interest charge on this debt to changes in interest rates, and the resultant impact on reported profitability.
Credit risk
Customers who wish to trade on credit terms are subject to strict verification procedures in advance of credit being awarded and are continually being monitored.
Inflation rate risk
As a result of the rising rate of inflation the company has seen the impact of this through rising costs mainly in relation to wages and salaries and energy costs. The company continue to monitor costs regularly and to minimise the impact of these rising costs where possible.

Development and performance
 
The directors consider the results for the year to be satisfactory. The company operates in a competitive marketplace. However, the company hopes that the current levels of performance will continue to be strong in 2025.
The directors are committed to long term creation of shareholder value by increasing the company's market share through continued organic growth. 

Page 1

 
SPECFAB LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

Key performance indicators
 
The company's key performance indicators for the year ended 31 January 2024 are as follows:
                             
       2024             2023        
Sales        £12.5m          £10.7m     
Gross profit margin        18.0%            11.7%   
Shareholders' equity      £1.4m            £440k   


This report was approved by the board on 3 October 2024 and signed on its behalf.



Dermot McCabe
Director

Martin McCabe
Director

Page 2

 
SPECFAB LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024

The Directors present their report and the financial statements for the year ended 31 January 2024.

Results and dividends

The profit for the year, after taxation, amounted to £920,445 (2023 - £439,574).

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

Directors

The Directors who served during the year and up to the date of signing the financial statements were:

Dermot McCabe 
Martin McCabe 

Auditors

Under section 487(2) of the Companies Act 2006AAB Group Accountants Limited (formerly FPM Accountants Ltd) will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the Company's financial statements 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 3

 
SPECFAB LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024


Disclosure of information to auditors

Each of the persons who are Directors at the time when this Directors' report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

This report was approved by the board on 3 October 2024 and signed on its behalf.
 





Dermot McCabe
Director

Page 4

 
SPECFAB LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SPECFAB LIMITED
 

Opinion


We have audited the financial statements of SPECFAB LIMITED (the 'Company') for the year ended 31 January 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 January 2024 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 United Kingdom, including the Financial Reporting Council'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 other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The Directors are responsible for the other information contained within the Annual ReportOur 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.


Page 5

 
SPECFAB LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SPECFAB LIMITED (CONTINUED)


Opinion 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.


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:


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 3, 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.


Page 6

 
SPECFAB LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SPECFAB LIMITED (CONTINUED)


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.


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:
We obtained an understanding of the legal and regulatory framework applicable to the company through enquiry of management, industry research and the application of cumulative audit knowledge. We identified the following principal laws and regulations relevant to the company – Companies Act 2006 and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
We developed an understanding of the key fraud risks to the entity (including how fraud might occur), the controls in place to help mitigate those risks, and the accounts, balances and disclosures within the financial statements which may be susceptible to management bias. Our understanding was obtained through review of the financial statements for significant accounting estimates, analysis of journal entries, walkthrough of the key controls cycles in place and enquiry of management.
Our procedures to respond to those risks identified included, but were not limited to:
• Enquiry of management, those charged with governance and the entity’s solicitors (or in-house legal team) around actual and potential litigation and claims.
• Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.
• Reviewing minutes of meetings of those charged with governance.
• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
• Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions 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.


Page 7

 
SPECFAB LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SPECFAB LIMITED (CONTINUED)


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 2006Our 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.





Deborah Mullen (Senior statutory auditor)
  
for and on behalf of
AAB Group Accountants Limited
 
Statutory Auditors
  
Howard House
30 Northland Row
Dungannon
Co. Tyrone
BT71 6AP

3 October 2024
Page 8

 
SPECFAB LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024

2024
2023
Note
£
£

  

Turnover
 4 
12,508,336
10,729,371

Cost of sales
  
(10,251,579)
(9,478,498)

Gross profit
  
2,256,757
1,250,873

Administrative expenses
  
(1,042,235)
(469,878)

Other operating income
 5 
6,000
-

Operating profit
 6 
1,220,522
780,995

Interest payable and similar expenses
 8 
(8,093)
(8,093)

Profit before tax
  
1,212,429
772,902

Tax on profit
 9 
(291,984)
(333,328)

Profit for the financial year
  
920,445
439,574

Other comprehensive income for the year
  

Total comprehensive income for the year
  
920,445
439,574

The notes on pages 13 to 25 form part of these financial statements.

Page 9

 
SPECFAB LIMITED
REGISTERED NUMBER: NI675585

BALANCE SHEET
AS AT 31 JANUARY 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 10 
557,770
654,676

  
557,770
654,676

Current assets
  

Stocks
 11 
1,141,742
1,096,810

Debtors: amounts falling due within one year
 12 
2,095,870
2,133,623

Cash at bank and in hand
 13 
1,021,323
793,924

  
4,258,935
4,024,357

Creditors: amounts falling due within one year
 14 
(3,144,516)
(3,867,470)

Net current assets
  
 
 
1,114,419
 
 
156,887

Total assets less current liabilities
  
1,672,189
811,563

Creditors: amounts falling due after more than one year
 15 
(141,563)
(208,512)

Provisions for liabilities
  

Deferred tax
 17 
(139,320)
(163,476)

Other provisions
  
(31,286)
-

  
 
 
(170,606)
 
 
(163,476)

Net assets
  
1,360,020
439,575


Capital and reserves
  

Called up share capital 
 19 
1
1

Profit and loss account
  
1,360,019
439,574

  
1,360,020
439,575


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 3 October 2024.




Dermot McCabe
Martin McCabe
Director
Director

The notes on pages 13 to 25 form part of these financial statements.

Page 10

 
SPECFAB LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 February 2022
1
-
1


Comprehensive income for the year

Profit for the year
-
439,574
439,574
Total comprehensive income for the year
-
439,574
439,574



At 1 February 2023
1
439,574
439,575


Comprehensive income for the year

Profit for the year
-
920,445
920,445
Total comprehensive income for the year
-
920,445
920,445


At 31 January 2024
1
1,360,019
1,360,020


The notes on pages 13 to 25 form part of these financial statements.

Page 11

 
SPECFAB LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
920,445
439,574

Adjustments for:

Depreciation of tangible assets
238,329
215,892

Interest paid
8,093
8,093

Taxation charge
291,984
333,328

(Increase) in stocks
(44,932)
(1,096,810)

Decrease/(increase) in debtors
37,753
(2,133,623)

(Decrease)/increase in creditors
(947,243)
3,181,690

Increase in amounts owed to associates
78,000
-

Increase in provisions
31,286
-

Corporation tax (paid)/received
(169,852)
-

Net cash generated from operating activities

443,863
948,144


Cash flows from investing activities

Purchase of tangible fixed assets
(141,423)
(79,180)

HP interest paid
(8,093)
-

Net cash from investing activities

(149,516)
(79,180)

Cash flows from financing activities

Repayment of/new finance leases
(66,948)
(66,948)

Interest paid
-
(8,093)

Net cash used in financing activities
(66,948)
(75,041)

Net increase in cash and cash equivalents
227,399
793,923

Cash and cash equivalents at beginning of year
793,924
1

Cash and cash equivalents at the end of year
1,021,323
793,924


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,021,323
793,924

1,021,323
793,924


Page 12

 
SPECFAB LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

1.


General information

Specfab Limited is a private company limited by shares incorporated in Norther Ireland. The registered office is 24 Farlough Road, Dungannon, Co. Tyrone, Northern Ireland, BT71 4DT.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

 
2.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 13

 
SPECFAB LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.3

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 Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.4

Finance costs

Finance costs are charged to profit or loss 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.

 
2.5

Pensions

Defined contribution pension plan

The Company operates 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 payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 14

 
SPECFAB LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.6

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.7

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Plant and machinery
-
20%
Straight Line
Motor vehicles
-
33%
Straight Line
Fixtures and fittings
-
33%
Straight Line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 15

 
SPECFAB LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.8

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.9

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.10

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.11

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.

 
2.12

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.13

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

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
Page 16

 
SPECFAB LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)


2.13
Financial instruments (continued)

settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is
Page 17

 
SPECFAB LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)


2.13
Financial instruments (continued)

due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.


3.


Judgements in applying accounting policies 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.
Warranty provision
The warranty provisions and releases to the profit and loss account require an element of judgement and estimate to form the basis of the year end liability. The company prepares detailed calculations formed on the basis of prior year data, current year results and suitably justified forecasts over future year performance. 

Page 18

 
SPECFAB LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Fabrication services
12,508,336
10,729,371

12,508,336
10,729,371


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
12,508,336
10,729,371

12,508,336
10,729,371



5.


Other operating income

2024
2023
£
£

Sundry income
6,000
-

6,000
-



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Fees payable to the company's auditor for the audit of the company's financial statements
5,950
5,950

Exchange differences
13
4

Depreciation of owned tangible fixed assets
83,040
64,509

Depreciation of tangible fixed assets held under finance leases
151,383
151,383

Page 19

 
SPECFAB LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

7.


Employees

Staff costs were as follows:


2024
2023
£
£

Wages and salaries
2,574,617
2,410,481

Social security costs
248,776
248,823

Cost of defined contribution scheme
46,644
45,525

2,870,037
2,704,829


The average monthly number of employees, including the Directors, during the year was as follows:


        2024
        2023
            No.
            No.







Employees
77
61


8.


Interest payable and similar expenses

2024
2023
£
£


Finance leases and hire purchase contracts
8,093
8,093

8,093
8,093

Page 20

 
SPECFAB LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

9.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
316,140
169,852


316,140
169,852


Total current tax
316,140
169,852

Deferred tax


Origination and reversal of timing differences
(24,156)
163,476

Total deferred tax
(24,156)
163,476


Tax on profit
291,984
333,328

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 24% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
1,212,429
772,902


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 24% (2023 - 19%)
290,983
146,851

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
560
1,527

Capital allowances for year in excess of depreciation
24,597
(19,545)

Depreciation on assets not qualifying for tax allowances
-
41,019

Deferred tax
(24,156)
163,476

Total tax charge for the year
291,984
333,328


Factors that may affect future tax charges

There were no factors that may affect future tax charges.



Page 21

 
SPECFAB LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

10.


Tangible fixed assets





Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 February 2023
836,237
25,549
8,782
870,568


Additions
119,135
13,365
8,923
141,423



At 31 January 2024

955,372
38,914
17,705
1,011,991



Depreciation


At 1 February 2023
200,006
12,217
3,669
215,892


Charge for the year on owned assets
219,223
13,338
5,768
238,329



At 31 January 2024

419,229
25,555
9,437
454,221



Net book value



At 31 January 2024
536,143
13,359
8,268
557,770



At 31 January 2023
636,231
13,332
5,113
654,676

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Plant and machinery
323,550
467,350

Motor vehicles
1,896
9,479

325,446
476,829


11.


Stocks

2024
2023
£
£

Raw materials and consumables
782,228
839,839

Work in progress
338,199
144,727

Finished goods and goods for resale
21,315
112,244

1,141,742
1,096,810


Page 22

 
SPECFAB LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

12.


Debtors

2024
2023
£
£


Trade debtors
1,987,801
2,055,804

Other debtors
1,450
2,751

Prepayments and accrued income
106,619
75,068

2,095,870
2,133,623



13.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
1,021,323
793,924

1,021,323
793,924



14.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
611,646
624,874

Amounts owed to group undertakings
1,959,077
2,905,960

Amounts owed to associates
78,000
-

Corporation tax
316,140
169,852

Other taxation and social security
29,029
32,906

Obligations under finance lease and hire purchase contracts
66,948
66,947

Other creditors
270
266

Accruals and deferred income
83,406
66,665

3,144,516
3,867,470


Amounts owed to group undertakings are unsecured, interest-free and repayable on demand.
Danske Bank Limited hold an inter company cross guarantee with Specdrum Limited.

Page 23

 
SPECFAB LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

15.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Net obligations under finance leases and hire purchase contracts
141,563
208,512

141,563
208,512



16.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2024
2023
£
£


Within one year
66,948
66,947

Between 1-5 years
141,563
208,512

208,511
275,459

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.


17.


Deferred taxation




2024


£






At beginning of year
(163,476)


Charged to profit or loss
24,156



At end of year
(139,320)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(139,320)
(163,476)

(139,320)
(163,476)

Page 24

 
SPECFAB LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

18.


Provisions




Warranty provision

£





Charged to profit or loss
31,286



At 31 January 2024
31,286


19.


Share capital

2024
2023
£
£
Authorised, allotted, called up and fully paid



1 (2023 - 1) Ordinary share of £1
1
1



20.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £46,644 (2023 - £45,525). Contributions totalling £46,644 (2023 - £45,525) were payable to the fund at the balance sheet date and are included in creditors.


21.


Related party transactions

The company has taken advantage of the exemption under paragraph 33.1A from the provisions of FRS102 on the grounds that it is a wholly owned subsidiary of a group headed by Pulleys International Limited.


22.


Controlling party

The ultimate controlling parties are Mr Martin McCabe and Mr Dermot McCabe, the shareholders of the parent company Pulleys International Limited, whose registered office is Ridgeway House, Ridgeway Street, Douglas, Isle of Man, IM99 1PY and has a registered number of 013235V.


Page 25