Company registration number 11158850 (England and Wales)
IFA GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
IFA GROUP LIMITED
COMPANY INFORMATION
Directors
G Davies
A McGuinness
C Syson
J Smith
R Johnson
Company number
11158850
Registered office
Victoria Forge
Livesey Street
Sheffield
South Yorkshire
S6 2BL
Auditor
BHP LLP
2 Rutland Park
Sheffield
S10 2PD
IFA GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 31
IFA GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

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

Review of the business

·          Turnover £47.1m (2023: £34.8m)

·          Gross profit £14.6m (2023: £7.5m)

·          Gross margin 30.9% (2023: 21.7%)

·          Operating profit £9.3m (2023: £2.8m)

 

We are now benefiting from our sales/marketing strategy which has demonstrated to customers the advantage of IFA’s ability to manufacture from ingot to components on one site.

 

Covid held our growth back for two years, but the next four years will see growth to £80m with the main sectors continuing to be aerospace and defence.

 

Titanium is key to this growth, and we can expect our current tonnage to double from 450T to 900T over the next four years.

 

The resulting £7.0m increase in gross profit has been partially offset by a £0.5m increase in administrative expenses, including additional staff to support the growth of the business.

 

The group continues to invest in property improvements and plant and machinery with £1.2m of fixed asset additions in the year.

 

Stock has increased by £3.2m due to the growth in the business. Creditors due within one year increased by £6.9m mainly due to a £7.3m increase in current bank loans and other borrowings as these mature and become due in less than one year as well as an £0.5m increase in trade creditors to service the increased trading activity. This is offset by a £2.3m decrease in accruals and deferred income due to the timing of energy invoices and a £1m decrease in other creditors due to movements in the use of the invoice discounting facility.

Principal risks and uncertainties

The ongoing recruitment and retention of employees is a yearly area of concern. However, we have been successful in implementing an apprenticeship program to mitigate this. The group is also a major user of energy and as such are open to major fluctuations in prices. We constantly monitor the forward pricing data and fix costs at manageable levels which are built into the business model. Raw material supply is an industry wide uncertainty which we have addressed by placing long term contracts for our strategic materials.

Future developments

The aerospace and defence sectors will support the next 5-year substantial growth with aerospace civil and defence programmes.

 

The onsite integration of the closed die precision forge and machining to the existing open die, ring rolling capabilities now makes IFA a unique offering to the market in being able to manufacture finished components from ingot on one site.

Research and development activities

As a group we continually strive to improve our product offering to the customer and this often involves new processes and / or ways of making components or achieving very tight quality and technical specifications.

IFA GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Financial instruments

Financial risk management objectives and policies

 

The group uses various financial instruments including loans, cash and various items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the group's operations.

 

The main risks arising from the group's financial instruments are credit, liquidity, and cash flow risk. The directors review and agree policies for managing each of these risks and they are summarised below.

 

Market risk encompasses two types of risk, being currency risk and fair value interest rate risk. The group's policies for managing fair value interest rate risk are considered with those for managing cash flow interest rate risk and are set out in the subsection entitled 'interest rate risk' below.

 

Credit risk

The group's principal financial assets are cash and trade debtors. The credit risk associated with cash is limited as the counterparties have high credit ratings assigned by international credit-rating agencies. The principal credit risk arises therefore from its trade debtors. In order to manage credit risk the directors set limits for customers by purchasing credit insurance for the majority of its debtors. Credit limits are reviewed by the credit controller on a regular basis in conjunction with debt ageing and collection history.

 

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the group uses a mixture of long-term and short-term debt finance.

 

Cash flow risk

The group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. In as far as possible assets held in foreign currency are matched to an appropriate level of creditors in the same currency. The group's exposure to interest rate fluctuations on its borrowings is limited as the majority of the borrowings are on fixed/capped interest rates.

On behalf of the board

C Syson
Director
20 September 2024
IFA GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company continued to be that of a holding company. The principal activity of the group continued to be that of engaging in the manufacture of high integrity forged products to the premium quality assured markets.

Results and dividends

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

Ordinary dividends were paid amounting to £653,730. The directors do not recommend payment of a further dividend.

Directors

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

G Davies
A McGuinness
C Syson
J Smith
R Johnson
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

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

 

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

Auditor

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

IFA GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments, research and development, and financial instruments.

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 auditor of the company 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 auditor of the company 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
C Syson
Director
20 September 2024
IFA GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF IFA GROUP LIMITED
- 5 -
Opinion

We have audited the financial statements of IFA Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 group and parent 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 group's and parent 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 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:

IFA GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF IFA GROUP LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

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.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

IFA GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF IFA GROUP LIMITED
- 7 -

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees’ and other management. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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.

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.

Daniel Varley (Senior Statutory Auditor)
For and on behalf of BHP LLP
4 October 2024
Chartered Accountants
Statutory Auditor
2 Rutland Park
Sheffield
S10 2PD
IFA GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
47,113,819
34,757,916
Cost of sales
(32,561,553)
(27,227,056)
Gross profit
14,552,266
7,530,860
Administrative expenses
(5,254,769)
(4,767,902)
Operating profit
4
9,297,497
2,762,958
Interest payable and similar expenses
7
(1,470,266)
(1,158,399)
Profit before taxation
7,827,231
1,604,559
Tax on profit
8
(1,289,934)
(372,000)
Profit for the financial year
6,537,297
1,232,559
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
IFA GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
11
8,151,427
7,784,396
Current assets
Stocks
14
16,821,842
13,677,234
Debtors
15
13,280,575
12,194,375
Cash at bank and in hand
60,283
805,815
30,162,700
26,677,424
Creditors: amounts falling due within one year
16
(20,596,470)
(13,718,637)
Net current assets
9,566,230
12,958,787
Total assets less current liabilities
17,717,657
20,743,183
Creditors: amounts falling due after more than one year
17
(2,805,551)
(11,494,644)
Provisions for liabilities
Deferred tax liability
20
903,000
1,123,000
(903,000)
(1,123,000)
Net assets
14,009,106
8,125,539
Capital and reserves
Called up share capital
22
1,000
1,000
Share premium account
1,028,098
1,028,098
Profit and loss reserves
12,980,008
7,096,441
Total equity
14,009,106
8,125,539

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

The financial statements were approved by the board of directors and authorised for issue on 4 October 2024 and are signed on its behalf by:
04 October 2024
A McGuinness
Director
Company registration number 11158850 (England and Wales)
IFA GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
12
6,558,086
6,558,086
Current assets
Debtors
15
6,102,739
4,426,573
Creditors: amounts falling due within one year
16
(9,335,603)
(1,672,057)
Net current (liabilities)/assets
(3,232,864)
2,754,516
Total assets less current liabilities
3,325,222
9,312,602
Creditors: amounts falling due after more than one year
17
(2,296,105)
(8,270,036)
Net assets
1,029,117
1,042,566
Capital and reserves
Called up share capital
22
1,000
1,000
Share premium account
1,028,098
1,028,098
Profit and loss reserves
19
13,468
Total equity
1,029,117
1,042,566

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £640,280 (2023 - £10,039 profit).

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

The financial statements were approved by the board of directors and authorised for issue on 4 October 2024 and are signed on its behalf by:
04 October 2024
A McGuinness
Director
Company registration number 11158850 (England and Wales)
IFA GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
1,000
1,028,098
5,863,882
6,892,980
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
1,232,559
1,232,559
Balance at 31 March 2023
1,000
1,028,098
7,096,441
8,125,539
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
6,537,297
6,537,297
Dividends
9
-
-
(653,730)
(653,730)
Balance at 31 March 2024
1,000
1,028,098
12,980,008
14,009,106
IFA GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
1,000
1,028,098
3,428
1,032,526
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
10,040
10,040
Balance at 31 March 2023
1,000
1,028,098
13,468
1,042,566
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
640,281
640,281
Dividends
9
-
-
(653,730)
(653,730)
Balance at 31 March 2024
1,000
1,028,098
19
1,029,117
IFA GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
4,494,295
1,944,123
Interest paid
(1,446,687)
(1,134,820)
Income taxes (paid)/refunded
(480)
768
Net cash inflow from operating activities
3,047,128
810,071
Investing activities
Purchase of tangible fixed assets
(821,946)
(1,511,651)
Net cash used in investing activities
(821,946)
(1,511,651)
Financing activities
Proceeds from new bank loans
-
1,912,294
Repayment of bank loans
(2,039,342)
(407,854)
Payment of finance leases obligations
(220,706)
(155,935)
Movement on invoice discounting facility
(951,153)
-
Net cash (used in)/generated from financing activities
(3,211,201)
1,348,505
Net (decrease)/increase in cash and cash equivalents
(986,019)
646,925
Cash and cash equivalents at beginning of year
805,815
158,890
Cash and cash equivalents at end of year
(180,204)
805,815
Relating to:
Cash at bank and in hand
60,283
805,815
Bank overdrafts included in creditors payable within one year
(240,487)
-
IFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
1
Accounting policies
Company information

IFA Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of IFA Group Limited and all of its subsidiaries.

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.

The 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 for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

1.3
Basis of consolidation

The consolidated financial statements incorporate those of IFA Group Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 31 March 2024.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

IFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.4
Going concern

These financial statements are prepared on the going concern basis. After reviewing the group's forecasts and projections, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

1.5
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. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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:

Land, buildings and improvements
2%-20% straight line (land not depreciated)
Plant and equipment
5-33% straight line
Fixtures and fittings
20-33% straight line

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 recognised in the profit and loss account.

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. 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 group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

IFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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 group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

IFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
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 group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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.

Derecognition of financial liabilities

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

1.12
Equity instruments

Equity instruments issued by the group 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 group.

IFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
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 group’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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

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.

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 leased asset are consumed.

IFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
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 group’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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful economic lives of tangible fixed assets

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values of all asset categories are reviewed on an annual basis to ensure appropriate changes are made for depreciation rates.

 

There have been no changes to the useful economic life. As at 31 March 2024 the tangible fixed assets had a net book value of £8,151,427. The depreciation for the year was £870,203.

Valuation of work in progress

The work in progress is valued based on the cost of raw materials and an element of labour and overhead costs. The labour and overhead costs are allocated to work in progress throughout the period based on timesheet hours which factor in the cost of processing and machining. At the year end, the total labour and overheads costs are compared to the timesheet hours posted to work in progress and the subsequent over or under recovery rate is used to adjust the year end value of work in progress. This adjustment ensures the value of work in progress at year end accurately reflects the actual rate of overhead recovery during the year.

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Supply of products
37,104,583
26,914,403
Processing and hirework
8,159,360
5,775,567
Sales of scrap and other
1,849,876
2,067,946
47,113,819
34,757,916
IFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
3
Turnover
(Continued)
- 20 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
19,326,455
12,045,667
Europe
17,797,140
18,930,001
Rest of World
9,990,224
3,782,248
47,113,819
34,757,916
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Exchange losses
40,570
320,802
Fees payable to the group's auditor for the audit of the group's financial statements
4,500
3,000
Depreciation of owned tangible fixed assets
740,030
670,655
Depreciation of tangible fixed assets held under finance leases
130,173
87,085
Stocks impairment losses recognised or reversed
388,834
210,357
Operating lease charges
80,308
57,680
5
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Production
207
183
-
-
Selling and distribution
34
32
-
-
Administration
13
11
-
-
Total
254
226
-
0
-
0
IFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
5
Employees
(Continued)
- 21 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
10,625,877
8,708,965
-
0
-
0
Social security costs
1,082,984
857,343
-
-
Pension costs
542,918
445,500
-
0
-
0
12,251,779
10,011,808
-
0
-
0
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
875,292
671,833
Company pension contributions to defined contribution schemes
66,869
65,886
942,161
737,719
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
313,326
255,335
Company pension contributions to defined contribution schemes
24,632
26,871
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
375,576
161,256
Other interest on financial liabilities
1,094,690
997,143
Total finance costs
1,470,266
1,158,399
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,271,934
-
0
IFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
8
Taxation
2024
2023
£
£
(Continued)
- 22 -
Deferred tax
Origination and reversal of timing differences
18,000
372,000
Total tax charge
1,289,934
372,000

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

2024
2023
£
£
Profit before taxation
7,827,231
1,604,559
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
1,956,808
304,866
Tax effect of expenses that are not deductible in determining taxable profit
31,656
1,127
Change in unrecognised deferred tax assets
3,905
(6,025)
Group relief
-
0
279,067
Research and development tax credit
-
0
(291,390)
Deferred tax adjustments in respect of prior years
(372,000)
-
0
Remeasurement of deferred tax for changes in tax rates
-
0
94,806
Fixed asset differences
(330,435)
(10,451)
Taxation charge
1,289,934
372,000
9
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
653,730
-

Dividends in the year were declared in respect of Ordinary A shares only.

IFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
10
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2024
2023
Notes
£
£
In respect of:
Stocks
14
388,834
210,357
Recognised in:
Cost of sales
388,834
210,357
11
Tangible fixed assets
Group
Land, buildings and improvements
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 April 2023
5,591,414
13,850,800
782,445
20,224,659
Additions
150,175
1,031,150
55,909
1,237,234
At 31 March 2024
5,741,589
14,881,950
838,354
21,461,893
Depreciation and impairment
At 1 April 2023
1,740,981
10,172,388
526,894
12,440,263
Depreciation charged in the year
100,153
642,027
128,023
870,203
At 31 March 2024
1,841,134
10,814,415
654,917
13,310,466
Carrying amount
At 31 March 2024
3,900,455
4,067,535
183,437
8,151,427
At 31 March 2023
3,850,433
3,678,412
255,551
7,784,396
The company had no tangible fixed assets at 31 March 2024 or 31 March 2023.

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
759,253
671,429
-
0
-
0
Computers
5,156
8,102
-
0
-
0
764,409
679,531
-
-
IFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
6,558,086
6,558,086
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023 and 31 March 2024
6,558,086
Carrying amount
At 31 March 2024
6,558,086
At 31 March 2023
6,558,086
13
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Independent Forgings & Alloys Limited
Victoria Forge, Livesey Street, Sheffield, S6 2BL
Manufacture of high integrity forged products
Ordinary
0
100.00
IFA Metals International Limited
As above
Dormant
Ordinary
100.00
-
14
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
5,030,347
4,775,808
-
-
Work in progress
11,791,495
8,901,426
-
-
16,821,842
13,677,234
-
-
IFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
15
Debtors
Group
Company
2024
2023
2024
2023
as restated
Amounts falling due within one year:
£
£
£
£
Trade debtors
11,907,343
8,415,294
1
-
0
Amounts owed by group undertakings
-
-
5,837,000
3,902,000
Other debtors
663,916
1,159,654
738
738
Prepayments and accrued income
444,316
2,116,427
-
0
20,835
13,015,575
11,691,375
5,837,739
3,923,573
Amounts falling due after more than one year:
Deferred tax asset (note 20)
265,000
503,000
265,000
503,000
Total debtors
13,280,575
12,194,375
6,102,739
4,426,573
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
as restated
Notes
£
£
£
£
Bank loans and overdrafts
18
3,093,297
2,030,224
-
0
-
0
Obligations under finance leases
19
256,568
208,752
-
0
-
0
Other borrowings
18
6,223,921
23,579
6,223,921
23,579
Trade creditors
4,227,503
3,722,851
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
2,296,808
1,263,792
Corporation tax payable
1,309,096
37,642
-
0
-
0
Other taxation and social security
624,370
224,285
-
-
Dividends payable
653,730
-
0
653,730
-
0
Other creditors
1,885,151
2,876,879
-
0
-
0
Accruals and deferred income
2,322,834
4,594,425
161,144
384,686
20,596,470
13,718,637
9,335,603
1,672,057

Included in other creditors due in less than one year are amounts of £1,609,729 (2023: £2,560,882) relating to invoice financing facilities, secured on fixed and floating charges.

IFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
as restated
Notes
£
£
£
£
Bank loans and overdrafts
18
-
0
2,861,928
-
0
-
0
Obligations under finance leases
19
509,446
362,680
-
0
-
0
Other borrowings
18
1,237,707
7,414,470
1,237,707
7,414,470
Accruals and deferred income
1,058,398
855,566
1,058,398
855,566
2,805,551
11,494,644
2,296,105
8,270,036
18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
2,852,810
4,892,152
-
0
-
0
Bank overdrafts
240,487
-
0
-
0
-
0
Other loans
7,461,628
7,438,049
7,461,628
7,438,049
10,554,925
12,330,201
7,461,628
7,438,049
Payable within one year
9,317,218
2,053,803
6,223,921
23,579
Payable after one year
1,237,707
10,276,398
1,237,707
7,414,470

The bank borrowings of the group are secured by charges over the land and buildings owned by the group.

Included within bank loans is a loan with a total balance of £2,852,811 as at 31 March 2024. Interest is charged at a floating rate of at least 2.25% above the base rate. The loan is due for repayment by November 2024.

 

Other borrowings represent loan notes with a total balance of £7,497,000. Interest is accruing at 8.4% to March 2019 and 10% thereafter. The loan notes will be repaid by instalments from July 2024.

19
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
256,568
210,206
-
0
-
0
In two to five years
509,446
361,226
-
0
-
0
766,014
571,432
-
-
IFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
19
Finance lease obligations
(Continued)
- 27 -

Finance lease payments represent rentals payable by the company or group 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.

20
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
914,000
1,133,000
-
-
Tax losses
-
-
-
235,000
Short term timing differences
(11,000)
(10,000)
265,000
268,000
903,000
1,123,000
265,000
503,000
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Tax losses
-
-
-
235,000
Short term timing differences
-
-
265,000
268,000
-
-
265,000
503,000
Group
Company
2024
2024
Movements in the year:
£
£
Liability/(Asset) at 1 April 2023
620,000
(503,000)
Charge to profit or loss
18,000
238,000
Liability/(Asset) at 31 March 2024
638,000
(265,000)

The deferred tax liability set out above is expected to reverse when the accelerated capital allowances that it relates to matures.

IFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
542,918
445,500

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 0.1p each
758,900
758,900
759
759
Ordinary A shares of 0.1p each
241,100
241,100
241
241
1,000,000
1,000,000
1,000
1,000

Ordinary shares

The shareholders have rights to attend and participate in general meetings and on any resolutions. They have rights to participate in a distribution relating to ordinary shares. The shareholders also have a right to participate in a distribution including on a winding up.

 

Ordinary A shares

The shareholders have rights to attend and participate in general meetings and vote on any resolutions. The 'A' ordinary shares shall be restricted to 40% of the voting rights attaching to all shares (except in certain circumstances). The shareholders have a full right to receive dividends in priority to the holders of ordinary shares. The shareholders have a right to a cumulative preferential net cash dividend. The shareholders have capital rights to participate in a distribution, including on a winding up.

23
Financial commitments, guarantees and contingent liabilities

At the year end there is a cross guarantee and debenture in place between the company, IFA Metals International Limited and Independent Forgings & Alloys Limited covering the following creditors which are also secured by fixed ad floating charges. Bank loans of £2,852,811 (2023: £3,120,261) and invoice finance facilities of £1,609,729 (2023: £2,560,882l).

 

The company has a guarantee given by Export Credits Guarantee department for £1,960,000 dated 6 January 2023.                

                                    

                                    

                                    

                                    

                                    

 

IFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 29 -
24
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
112,722
59,068
-
-
Between two and five years
130,719
50,716
-
-
243,441
109,784
-
-
25
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
200,000
-
-
-
26
Related party transactions

Entities under common control

M Burnham, a director of Independent Forgings & Alloys Limited is also a director of 4Ren6 Limited. During the year the group made purchases from 4Ren6 Limited with a total value of £nil (2023: £46,200). At the year end there was no balance due to the group.

 

M Burnham, a director of Independent Forgings & Alloys Limited is also a director of Iidea Limited. During the year the group made purchases from Iidea Limited with a total value of £13,293 (2023: £1,020). At the year end there was no balance due to the group.

 

M Tomlinson, a director of Independent Forgings & Alloys Limited, is also a director of Smea Events Limited. During the year the group made purchases from Smea Events Limited with a total value of £720 (2023: £nil). At the year end a balance of £nil (2023: £nil) was due from the group to Smea Events Limited.

 

J Smith, a director of the Independent Forgings & Alloys Limited received £69,033 in respect of business consultancy services provided to the group (2023: £61,439).

 

During the year, the group paid rent of £nil (2023: £16,859) to a retirement benefit scheme set up to benefit the directors.

IFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
27
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
G Davies -
-
1,548
-
(1,548)
-
A McGuinness -
-
144,396
5,905
-
150,301
C Syson -
-
40
-
(40)
-
145,984
5,905
(1,588)
150,301
28
Prior year restatements

The comparative figures for balances as at 31 March 2023 have been restated in respect of prepayments which has increased by £1,771,891 and bank loans due less than 1 year which has also increased by the same amount (see notes 12 and 13). The restatement recognises a bank loan which was received during the year and used to make a prepayment for stock which was also omitted from the accounts. This restatement has no impact on profit, reserves or net assets.

 

The comparative figures for operating lease commitments have also been restated due to omissions in the prior year. This restatement has had no impact on profit, reserves or net assets. The restatement increased the total operating lease commitment for the comparative year by £107,706.

29
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
6,537,297
1,232,559
Adjustments for:
Taxation charged
1,289,934
372,000
Finance costs
1,470,266
1,158,399
Depreciation and impairment of tangible fixed assets
870,203
757,740
Movements in working capital:
Increase in stocks
(3,144,608)
(4,886,009)
Decrease/(increase) in debtors
1,236,682
(1,999,136)
(Decrease)/increase in creditors
(3,765,479)
5,308,570
Cash generated from operations
4,494,295
1,944,123
IFA GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
30
Analysis of changes in net debt - group
1 April 2023
Cash flows
New finance leases
31 March 2024
£
£
£
£
Cash at bank and in hand
805,815
(745,532)
-
60,283
Bank overdrafts
-
0
(240,487)
-
(240,487)
805,815
(986,019)
-
(180,204)
Borrowings excluding overdrafts
(10,558,310)
3,385
-
(10,554,925)
Obligations under finance leases
(571,432)
220,706
(415,288)
(766,014)
Invoice discounting facilities
(2,560,881)
951,152
-
(1,609,729)
(12,884,808)
189,224
(415,288)
(13,110,872)
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