Company registration number 01177794 (England and Wales)
J B INGALL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JANUARY 2024
J B INGALL LIMITED
COMPANY INFORMATION
Directors
P Ingall
D Ingall
A Ingall
Company number
01177794
Registered office
Capital Steel Works
Tinsley Park Road
Sheffield
S9 5DL
Auditor
BHP LLP
2 Rutland Park
Sheffield
S10 2PD
J B INGALL LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 27
J B INGALL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JANUARY 2024
- 1 -

The directors present the strategic report for the year ended 30 January 2024.

Review of the business

The business has remained profitable in another difficult year.

With regard to the financial performance of the business during the year the key performance indicators are as follows:

Turnover:

£13,079,667

Gross Profit:

£3,008,547

Gross Margin:

23%

Net Profit

£440,065

The cash position is again very healthy with a year-end bank balance of £2,412,766

The business remains in a strong financial position.

Principal risks and uncertainties

The principal risks and uncertainties that the business is facing are as follows:

 

 

Once again thank you to all our employees for all their hard work and efforts.

 

On behalf of the board

P Ingall
Director
19 September 2024
J B INGALL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JANUARY 2024
- 2 -

The directors present their annual report and financial statements for the year ended 30 January 2024.

Principal activities

The principal activity of the Group continued to be that of manufacture of steel and alloy foundry castings.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £100,000. On 22 May 2024 the directors declared a further dividend of £100,000.

Directors

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

P Ingall
D Ingall
A Ingall
Auditor

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

Statement of directors' responsibilities

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

 

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

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.

J B INGALL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JANUARY 2024
- 3 -
On behalf of the board
P Ingall
Director
19 September 2024
J B INGALL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF J B INGALL LIMITED
- 4 -
Opinion

We have audited the financial statements of J B Ingall Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 January 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 a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

J B INGALL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF J B INGALL LIMITED
- 5 -
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:

J B INGALL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF J B INGALL LIMITED
- 6 -

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 directors and other management and the inspection of regulatory and legal correspondence, if any.

 

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.

Paul Winwood (Senior Statutory Auditor)
For and on behalf of BHP LLP
19 September 2024
Chartered Accountants
Statutory Auditor
2 Rutland Park
Sheffield
S10 2PD
J B INGALL LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JANUARY 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
13,079,667
12,363,233
Cost of sales
(10,071,120)
(9,681,220)
Gross profit
3,008,547
2,682,013
Administrative expenses
(2,651,698)
(2,272,149)
Operating profit
4
356,849
409,864
Interest receivable and similar income
7
29,616
436
Profit before taxation
386,465
410,300
Tax on profit
8
53,600
45,245
Profit for the financial year
440,065
455,545
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.

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

J B INGALL LIMITED
GROUP BALANCE SHEET
AS AT
30 JANUARY 2024
30 January 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,753,030
2,602,289
Current assets
Stocks
14
1,267,402
1,413,228
Debtors
15
2,315,748
2,284,920
Cash at bank and in hand
2,412,766
2,321,599
5,995,916
6,019,747
Creditors: amounts falling due within one year
16
(3,505,350)
(3,553,794)
Net current assets
2,490,566
2,465,953
Total assets less current liabilities
5,243,596
5,068,242
Creditors: amounts falling due after more than one year
17
(138,889)
(250,000)
Provisions for liabilities
Deferred tax liability
19
128,650
182,250
(128,650)
(182,250)
Net assets
4,976,057
4,635,992
Capital and reserves
Called up share capital
22
2,200
2,200
Revaluation reserve
311,195
314,772
Profit and loss reserves
4,662,662
4,319,020
Total equity
4,976,057
4,635,992

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 19 September 2024 and are signed on its behalf by:
19 September 2024
P Ingall
Director
Company registration number 01177794 (England and Wales)
J B INGALL LIMITED
COMPANY BALANCE SHEET
AS AT 30 JANUARY 2024
30 January 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
50,072
39,807
Investment property
11
1,895,750
1,895,750
Investments
12
453,590
453,590
2,399,412
2,389,147
Current assets
Debtors
15
315,547
438,956
Cash at bank and in hand
91,132
61,258
406,679
500,214
Creditors: amounts falling due within one year
16
(138,432)
(205,921)
Net current assets
268,247
294,293
Net assets
2,667,659
2,683,440
Capital and reserves
Called up share capital
22
2,200
2,200
Revaluation reserve
126,317
126,317
Profit and loss reserves
2,539,142
2,554,923
Total equity
2,667,659
2,683,440

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 £84,220 (2023 - £252,614 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 19 September 2024 and are signed on its behalf by:
19 September 2024
P Ingall
Director
Company registration number 01177794 (England and Wales)
J B INGALL LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JANUARY 2024
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 31 January 2022
2,200
318,349
4,059,898
4,380,447
Year ended 30 January 2023:
Profit and total comprehensive income
-
-
455,545
455,545
Dividends
9
-
-
(200,000)
(200,000)
Transfers
-
(3,577)
3,577
-
Balance at 30 January 2023
2,200
314,772
4,319,020
4,635,992
Year ended 30 January 2024:
Profit and total comprehensive income
-
-
440,065
440,065
Dividends
9
-
-
(100,000)
(100,000)
Transfers
-
(3,577)
3,577
-
Balance at 30 January 2024
2,200
311,195
4,662,662
4,976,057
J B INGALL LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JANUARY 2024
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 31 January 2022
2,200
126,317
2,502,308
2,630,825
Year ended 30 January 2023:
Profit and total comprehensive income for the year
-
-
252,615
252,615
Dividends
9
-
-
(200,000)
(200,000)
Balance at 30 January 2023
2,200
126,317
2,554,923
2,683,440
Year ended 30 January 2024:
Profit and total comprehensive income
-
-
84,219
84,219
Dividends
9
-
-
(100,000)
(100,000)
Balance at 30 January 2024
2,200
126,317
2,539,142
2,667,659
J B INGALL LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JANUARY 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
532,230
413,973
Income taxes refunded
64,095
126,349
Net cash inflow from operating activities
596,325
540,322
Investing activities
Purchase of tangible fixed assets
(363,663)
(344,431)
Proceeds from disposal of tangible fixed assets
40,000
-
Loans made to other entities
-
(22,717)
Movement on loans issued to related parties
-
62,306
Interest received
29,616
436
Net cash used in investing activities
(294,047)
(304,406)
Financing activities
Repayment of bank loans
(111,111)
(134,346)
Dividends paid to equity shareholders
(100,000)
(200,000)
Net cash used in financing activities
(211,111)
(334,346)
Net increase/(decrease) in cash and cash equivalents
91,167
(98,430)
Cash and cash equivalents at beginning of year
2,321,599
2,420,029
Cash and cash equivalents at end of year
2,412,766
2,321,599
J B INGALL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JANUARY 2024
- 13 -
1
Accounting policies
Company information

J. B. Ingall Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Capital Steel Works, Tinsley Park Road, Sheffield, S9 5DL.

 

The group consists of J. B. Ingall 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 on 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. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

J B INGALL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JANUARY 2024
1
Accounting policies
(Continued)
- 14 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company J. B. Ingall Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 January 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

The directors have reviewed the performance of the group and considered the impact of macro economic and geopolitical factors on the group's trade, workforce and supply chain. The directors have reviewed the performance in the year and the trading outlook of the group and concluded that, at the time of approving the financial statements , they have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The directors therefore continue to adopt the going concern basis of preparation for these 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 and buildings Freehold
2% straight line
Plant and machinery
5% to 50% straight line
Motor vehicles
20% to 33.33% 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.

J B INGALL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JANUARY 2024
1
Accounting policies
(Continued)
- 15 -
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 end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset.

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.

 

Work in progress is assigned a value based on stage of completion. There are thee key stages in the production process with work in progress banded accordingly. The year-end work in progress valuation is determined by multiplying the sales value by the relevant work in progress banding.

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 statement of financial position when the group becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other receivables 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.

J B INGALL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JANUARY 2024
1
Accounting policies
(Continued)
- 16 -
Impairment of financial assets

Financial assets 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. The impairment loss 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, loans from fellow group companies and preference shares that are classified as debt, 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.

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.

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.

J B INGALL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JANUARY 2024
1
Accounting policies
(Continued)
- 17 -
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.

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 benefits schemes are charged as an expense as they fall due.

1.16
Share-based payments

The fair value of equity-settled share based payments to employees is determined at the date of grant and where material to the financial statements, is expensed on a straight-line basis over the vesting period based on the group’s estimate of shares or options that will eventually vest.

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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Property valuations

The investment property is held at fair value in the financial statements. The property was last formally valued in January 2015 and in the subsequent years the directors have performed interim assessments as to whether the fair value remains appropriate. In performing the interim assessments of fair value, the directors are applying their judgements as to the underlying market conditions and factors that impact fair value of similar properties in the region.

J B INGALL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JANUARY 2024
- 18 -
3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Production and sale of steel and alloy castings
13,079,667
12,363,233
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
10,898,395
8,978,923
European Union
1,982,065
2,513,992
Rest of World
199,207
870,318
13,079,667
12,363,233
2024
2023
£
£
Other revenue
Interest income
29,616
436
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(7,862)
(4,907)
Fees payable to the group's auditor for the audit of the group's financial statements
5,920
3,425
Depreciation of owned tangible fixed assets
173,115
141,306
Profit on disposal of tangible fixed assets
(193)
-
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
56
53
-
-
Administrative
26
23
2
1
Directors
2
2
2
2
Total
84
78
4
3
J B INGALL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JANUARY 2024
5
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,079,098
2,725,956
399,215
408,620
Social security costs
334,123
311,757
57,649
65,525
Pension costs
107,103
62,452
44,000
-
0
3,520,324
3,100,165
500,864
474,145
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
393,530
402,935
Company pension contributions to defined contribution schemes
44,000
-
437,530
402,935
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
350,456
359,621
Company pension contributions to defined contribution schemes
4,000
-
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
29,616
436
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
-
0
(64,095)
Deferred tax
Origination and reversal of timing differences
(53,600)
18,850
Total tax credit
(53,600)
(45,245)
J B INGALL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JANUARY 2024
8
Taxation
(Continued)
- 20 -

The actual credit 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
386,465
410,300
Expected tax charge based on the standard rate of corporation tax in the UK of 24.03% (2023: 19.00%)
92,868
77,957
Tax effect of expenses that are not deductible in determining taxable profit
2,528
188
Change in unrecognised deferred tax assets
-
0
(70)
Permanent capital allowances in excess of depreciation
2,604
(7,024)
Research and development tax credit
(152,808)
(120,840)
Effect of change in deferred tax rates
(2,144)
4,539
Change in deferred tax not recognised
3,352
5
Taxation credit
(53,600)
(45,245)
9
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
100,000
200,000
J B INGALL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JANUARY 2024
- 21 -
10
Tangible fixed assets
Group
Land and buildings Freehold
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 31 January 2023
1,769,433
4,837,900
68,610
6,675,943
Additions
-
0
250,405
113,258
363,663
Disposals
-
0
-
0
(59,710)
(59,710)
At 30 January 2024
1,769,433
5,088,305
122,158
6,979,896
Depreciation and impairment
At 31 January 2023
143,937
3,901,804
27,913
4,073,654
Depreciation charged in the year
11,237
135,498
26,380
173,115
Eliminated in respect of disposals
-
0
-
0
(19,903)
(19,903)
At 30 January 2024
155,174
4,037,302
34,390
4,226,866
Carrying amount
At 30 January 2024
1,614,259
1,051,003
87,768
2,753,030
At 30 January 2023
1,625,496
936,096
40,697
2,602,289
Company
Plant and machinery
Motor vehicles
Total
£
£
£
Cost
At 31 January 2023
133,987
59,710
193,697
Additions
-
0
75,108
75,108
Disposals
-
0
(59,710)
(59,710)
At 30 January 2024
133,987
75,108
209,095
Depreciation and impairment
At 31 January 2023
133,987
19,903
153,890
Depreciation charged in the year
-
0
25,036
25,036
Eliminated in respect of disposals
-
0
(19,903)
(19,903)
At 30 January 2024
133,987
25,036
159,023
Carrying amount
At 30 January 2024
-
0
50,072
50,072
At 30 January 2023
-
0
39,807
39,807
J B INGALL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JANUARY 2024
- 22 -
11
Investment property
Group
Company
2024
2024
£
£
Fair value
At 31 January 2023 and 30 January 2024
-
1,895,750

Investment property comprises the land and factory premises that are used by Norton Cast Products Limited and a separate area of land which was purchased in October 2021.

 

The fair value of the factory premises has been arrived at on the basis of a valuation carried out at 1 January 2015 by SMC Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. The directors are satisfied that at the balance sheet date the valuation was not materially different to this external valuation and accordingly no adjustment has been made.

 

The separately purchased land was initially recognised at cost and the directors do not believe that the fair value at the balance sheet date was materially different to the cost and accordingly no adjustment has been made.

12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
453,590
453,590
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 31 January 2023 and 30 January 2024
453,590
Carrying amount
At 30 January 2024
453,590
At 30 January 2023
453,590
13
Subsidiaries

Details of the company's subsidiaries at 30 January 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Norton Cast Products Limited
Capital Steel Works, Tinsley Park Road, Sheffield, S9 5DL
Ordinary
100.00

The investments in subsidiaries are all stated at cost.

J B INGALL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JANUARY 2024
- 23 -
14
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
371,427
483,372
-
-
Work in progress
895,975
929,856
-
-
1,267,402
1,413,228
-
-
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,205,713
2,122,309
-
0
-
0
Corporation tax recoverable
-
0
64,095
-
0
-
0
Amounts owed by group undertakings
-
-
310,547
430,839
Other debtors
5,000
30,948
5,000
8,117
Prepayments and accrued income
105,035
67,568
-
0
-
0
2,315,748
2,284,920
315,547
438,956
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
18
111,111
111,111
-
0
-
0
Trade creditors
2,565,786
2,699,361
168
168
Other taxation and social security
202,092
82,662
9,718
22,224
Other creditors
293,391
337,146
95,351
151,330
Accruals and deferred income
332,970
323,514
33,195
32,199
3,505,350
3,553,794
138,432
205,921
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
18
138,889
250,000
-
0
-
0
J B INGALL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JANUARY 2024
- 24 -
18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
250,000
361,111
-
0
-
0
Payable within one year
111,111
111,111
-
0
-
0
Payable after one year
138,889
250,000
-
0
-
0

The long-term loans are secured by fixed and floating charges over the assets of Norton Cast Products Limited.

The bank loan is a Coronavirus Business Interruption loan which is repayable in monthly instalments by 16 April 2026 and carries an interest rate of 3% over the Bank of England's Base Rate.

19
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Group
£
£
ACAs
193,700
183,350
Tax losses
(59,600)
-
Short term timing differences
(1,300)
(1,100)
Investment property
(4,150)
-
128,650
182,250
ACAs
-
(4,150)
Investment property
-
4,150
-
-
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 31 January 2023
182,250
-
Credit to profit or loss
(53,600)
-
Liability at 30 January 2024
128,650
-

 

J B INGALL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JANUARY 2024
- 25 -
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
107,103
62,452

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.

21
Share-based payment transactions

On 1 May 2014, options were granted under the company's Enterprise Management Incentive Option Scheme, an Inland Revenue approved share option scheme. These options are exercisable for a total of 264 Ordinary shares at a price of £1 per share in the period between 1 May 2014 and 30 April 2024 in the event of qualifying conditions.

 

On 19 April 2023 a further 110 options were granted under the scheme. These options are exercisable for 110 Ordinary shares at a price of £341 per share in the period between 19 April 2023 and 18 April 2033 in the event of qualifying conditions.

 

The calculated annual charge in respect of the scheme is not material to the financial statements and consequently no provision is included in these accounts. At the year end no options had been exercised and therefore 374 options remain in existence.

 

22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2,200
2,200
2,200
2,200
23
Operating lease commitments

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
53,143
26,614
3,000
3,000
Between two and five years
12,218
25,361
9,000
12,000
65,361
51,975
12,000
15,000
J B INGALL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JANUARY 2024
- 26 -
24
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
26,500
-
-
-
25
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
651,352
574,701
Other information

Toko Recordings Limited is a company also controlled by P Ingall. At the year end loans of £5,000 (2023: £5,000) were due from to Toko Recordings Limited which are included in other debtors.

26
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
440,065
455,545
Adjustments for:
Taxation credited
(53,600)
(45,245)
Investment income
(29,616)
(436)
Gain on disposal of tangible fixed assets
(193)
-
Depreciation and impairment of tangible fixed assets
173,115
141,306
Movements in working capital:
Decrease/(increase) in stocks
145,826
(452,397)
Increase in debtors
(94,923)
(549,497)
(Decrease)/increase in creditors
(48,444)
864,697
Cash generated from operations
532,230
413,973
J B INGALL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JANUARY 2024
- 27 -
27
Analysis of changes in net funds - group
31 January 2023
Cash flows
30 January 2024
£
£
£
Cash at bank and in hand
2,321,599
91,167
2,412,766
Borrowings excluding overdrafts
(361,111)
111,111
(250,000)
1,960,488
202,278
2,162,766
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