82 false false false false true false false false false false false true false false false false false false 2023-04-01 Sage Accounts Production Advanced 2023 - FRS102_2023 104,983 2,132 102,851 xbrli:pure xbrli:shares iso4217:GBP 0388918 2023-04-01 2024-03-31 0388918 2024-03-31 0388918 2023-03-31 0388918 2022-04-01 2023-03-31 0388918 2023-03-31 0388918 2022-03-31 0388918 bus:RegisteredOffice 2023-04-01 2024-03-31 0388918 bus:OrdinaryShareClass1 2023-04-01 2024-03-31 0388918 bus:LeadAgentIfApplicable 2023-04-01 2024-03-31 0388918 bus:Director1 2023-04-01 2024-03-31 0388918 bus:Director3 2023-04-01 2024-03-31 0388918 bus:Director4 2023-04-01 2024-03-31 0388918 bus:Director5 2023-04-01 2024-03-31 0388918 bus:Director6 2023-04-01 2024-03-31 0388918 core:WithinOneYear 2024-03-31 0388918 core:WithinOneYear 2023-03-31 0388918 core:LandBuildings 2023-03-31 0388918 core:PlantMachinery 2023-03-31 0388918 core:FurnitureFittingsToolsEquipment 2023-03-31 0388918 core:MotorVehicles 2023-03-31 0388918 core:LandBuildings 2024-03-31 0388918 core:PlantMachinery 2024-03-31 0388918 core:FurnitureFittingsToolsEquipment 2024-03-31 0388918 core:MotorVehicles 2024-03-31 0388918 core:LandBuildings 2023-04-01 2024-03-31 0388918 core:PlantMachinery 2023-04-01 2024-03-31 0388918 core:FurnitureFittingsToolsEquipment 2023-04-01 2024-03-31 0388918 core:MotorVehicles 2023-04-01 2024-03-31 0388918 core:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 0388918 core:RetainedEarningsAccumulatedLosses 2023-04-01 2024-03-31 0388918 core:UKTax 2023-04-01 2024-03-31 0388918 core:UKTax 2022-04-01 2023-03-31 0388918 bus:AllOrdinaryShares 2023-04-01 2024-03-31 0388918 bus:AllOrdinaryShares 2022-04-01 2023-03-31 0388918 core:ShareCapital 2024-03-31 0388918 core:ShareCapital 2023-03-31 0388918 core:RetainedEarningsAccumulatedLosses 2024-03-31 0388918 core:RetainedEarningsAccumulatedLosses 2023-03-31 0388918 core:ShareCapital 2022-03-31 0388918 core:RetainedEarningsAccumulatedLosses 2022-03-31 0388918 core:BetweenOneFiveYears 2024-03-31 0388918 core:BetweenOneFiveYears 2023-03-31 0388918 core:MoreThanFiveYears 2024-03-31 0388918 core:MoreThanFiveYears 2023-03-31 0388918 core:DeferredTaxation 2023-04-01 2024-03-31 0388918 core:AcceleratedTaxDepreciationDeferredTax 2024-03-31 0388918 core:AcceleratedTaxDepreciationDeferredTax 2023-03-31 0388918 core:LandBuildings 2023-03-31 0388918 core:PlantMachinery 2023-03-31 0388918 core:FurnitureFittingsToolsEquipment 2023-03-31 0388918 core:DeferredTaxation 2023-03-31 0388918 core:DeferredTaxation 2024-03-31 0388918 countries:UnitedKingdom 2023-04-01 2024-03-31 0388918 countries:UnitedKingdom 2022-04-01 2023-03-31 0388918 countries:RestWorldOutsideUK 2023-04-01 2024-03-31 0388918 countries:RestWorldOutsideUK 2022-04-01 2023-03-31 0388918 bus:LeadAgentIfApplicable 2022-04-01 2023-03-31 0388918 bus:MediumEntities 2023-04-01 2024-03-31 0388918 bus:Audited 2023-04-01 2024-03-31 0388918 bus:Medium-sizedCompaniesRegimeForAccounts 2023-04-01 2024-03-31 0388918 bus:PrivateLimitedCompanyLtd 2023-04-01 2024-03-31 0388918 bus:FullAccounts 2023-04-01 2024-03-31 0388918 bus:OrdinaryShareClass1 2024-03-31 0388918 bus:OrdinaryShareClass1 2023-03-31 0388918 core:LandBuildings core:ShortLeaseholdAssets 2023-04-01 2024-03-31 0388918 core:FurnitureFittings 2023-04-01 2024-03-31
COMPANY REGISTRATION NUMBER: 0388918
Craig & Derricott Limited
Financial Statements
31 March 2024
Craig & Derricott Limited
Financial Statements
Year ended 31 March 2024
Contents
Page
Officers and professional advisers
1
Strategic report
2
Directors' report
4
Independent auditor's report to the members
6
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14
Craig & Derricott Limited
Officers and Professional Advisers
The board of directors
A Dolman
K C Miller
H H Moller
A V Skarbrandt
N Stenberg
Registered office
46 Hall Lane
Walsall Wood
Walsall
WS9 9DP
Auditor
Lindley & Co
Chartered Certified Accountants & statutory auditor
Suite 4 Europa House
Europa Way
Britannia Enterprise Park
Lichfield
Staffordshire
WS14 9TZ
Bankers
Handelsbanken
Ground Floor
The Jhoots Group Building
20 Hatherton Street
Walsall
WS4 2LA
Solicitors
Lane & Co
24-26 Broadway North
Walsall
West Midlands
WS1 2AJ
Craig & Derricott Limited
Strategic Report
Year ended 31 March 2024
Overview
The company continues to trade successfully under the ownership of the Addtech Group.
Business review
The Directors are pleased to be able to report a very strong performance of the company as shown in the results. The principal activities are the design, manufacture, and sale of electromechanical low voltage swithchgear. Approximately 75% being sold in the UK market and a further 25% is sold around the world to both the Middle East and Europe. Annualised sales were 27% up on the previous year. Strict management and ongoing cost control resulted in a small improvement in GM with a significant EBITDA improvement of over 100% increase on the previous year. The ROS therefore also improved from 7.9% to over 12%. Throughout 2023 and into 2024, the directors and management team focussed on ensuring colleague safety and sustainability while also controlling overhead and implementing activities to increase sales and production capacity.
Marketplace and economic climate
The UK construction industry in the industrial and commercial sector has recovered in general although the residential sector has seen a recent decline following the multiple increases in interest rates and therefore mortgage costs. The rail sector has started to recover through 2023 and early 2024 albeit not as robustly as the construction sector. Europe and the GCC territory have followed the UK industrial recovery although the UK recovery outperformed the export regions. The marketplace for Craig & Derricott industrial switchgear remains robust and shows evidence of some ongoing growth. The company are aware that there is an increasing demand for more specialised and customised switchgear. Therefore, the strategy of great customer service and the ability to offer bespoke solutions remain our primary focus and strength, winning business from the competition. Investment in new products has continued over the past 12 months with the introduction of our new Automatic Transfer Switches and the new isolator range have proven to be extremely popular. New equipment and space utilisation brings increased levels of value added alongside the ongoing value engineering of our existing products to maintain our strength, market share and competitive position in the market. Railway product sales have increased with the company winning several large contracts during the year. The volume and depth of large tendering opportunities are also increasing again, these offer significant potential revenue and margin. The company continues to invest in this sector in both the UK and export markets, by increasing the number of bespoke solutions and continuously playing to our engineering strength.
Key performance indicators
The company sales were £12.3m in the year to 31 March 2024, compared to £9.6m in the previous year - an increase of over 27%. The increased revenue resulted in the gross margin for the year ended 31 March 2024 at almost 33% compared to 28.9% in the previous year. Global Industrial sales accounted for just over 80% of Revenue with Rail at 20%.
Research and development
Ongoing recruitment of new specialist technical sales staff and investment in equipment to support our customer demands and new product development work remains fundamental to the company's growth plans. The company has remained true to the mantra of best customer service while offering customised and bespoke solutions where we command an exceptionally strong brand reputation and continuing the requirement for; productivity developments, finished goods stockholding, rigorous testing, value engineering and product innovation.
Principal risks and uncertainties
The company has established a risk and financial management framework which continues to thrive within the Addtech group. We aim to limit counterparty exposure and ensure sufficient working capital exists to run the business whilst protecting the company from any events that would hinder the achievement of the performance objectives. As part of this strategy the company continues to maintain a wide customer base spread across the three core sectors of UK Industrial, Railway rolling stock and Export. We have a minimal dependency on any single customer or sector, and we spread our development equally across all three. The company continues to offset international trading risk through currency hedging, balancing currency flows to create natural hedges wherever practical and ongoing reductions in component sourcing from Europe. The directors continue to pursue a strategy of all sector growth and the development of new sectors whilst monitoring closely any evolving situation that may affect local or overseas trading. Strong working relationships with the company's principal suppliers have aided the company in material cost control and minimising the impact of increasing commodity prices.
Going concern
The company predominantly serves the construction, electrical distribution and rail industries, all of which are classified as "essential industries" as proven and identified throughout the recent pandemic. The company is particularly strong and well respected in each of these sectors, which are all long-term strategic and economic growth sectors for the UK and World economies. The company is very aware of the importance of stakeholder feedback and opinion and the company is in continuous communication with all key stakeholders to ensure maximum market and sector engagement and awareness of any significant trends or changes in the marketplace. Networking with Addtech and other Addtech businesses also provides valuable, UK and Global; political, economic and sector feedback. As a result, the company is well informed and well placed to continue and grow supply to these essential industries. Fundamentally, Addtech has maintained the same business concept for more than 100 years and recently celebrated 20 years as a public limited company listed on the stock market in Sweden. Through over 150 businesses in more than 20 countries, Addtech looks to increase value through organic growth whilst continually looking to expand through acquisitions. The growth strategy is primarily funded from the cashflow generated through the subsidiaries and transferred via capital transfers such as group contributions and dividends.
This report was approved by the board of directors on 11 June 2024 and signed on behalf of the board by:
K C Miller
Director
Craig & Derricott Limited
Directors' Report
Year ended 31 March 2024
The directors present their report and the financial statements of the company for the year ended 31 March 2024 .
Principal activities
The principal activity of the company during the year was the design, manufacture and sale of electromechanical switchgear.
Directors
The directors who served the company during the year were as follows:
A Dolman
K C Miller
H H Moller
A V Skarbrandt
N Stenberg
Dividends
Particulars of recommended dividends are detailed in note 13 to the financial statements.
Disclosure of information in the strategic report
The company has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 11 June 2024 and signed on behalf of the board by:
K C Miller
Director
Craig & Derricott Limited
Independent Auditor's Report to the Members of Craig & Derricott Limited
Year ended 31 March 2024
Opinion
We have audited the financial statements of Craig & Derricott Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, 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: - give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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. 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. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the audit:
- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: - We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of any acts by the company that were not in line with the applicable laws and regulations, including fraud. Additionally, we gained an understanding of management's procedures relating to detecting and responding to the risks of fraud and whether they have knowlwedge of any actual, suspected or alleged fraud. - We made enquiries of management, being those charged with governance, and reviewed board minutes and correspondence with the company's solicitors around actual and potential litigation and claims. - We made enquiry of staff in compliance functions to identify any instances of non-compliance with laws and regulations. - We reviewed the financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; - We performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. - We performed audit work over the risk of fraud in revenue recognition including testing of controls, substantive testing and analytical procedures over the recording of revenue and testing of year end cut off. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Sandra Kay Lindley FCA
(Senior Statutory Auditor)
For and on behalf of
Lindley & Co
Chartered Certified Accountants & statutory auditor
Suite 4 Europa House
Europa Way
Britannia Enterprise Park
Lichfield
Staffordshire
WS14 9TZ
11 June 2024
Craig & Derricott Limited
Statement of Comprehensive Income
Year ended 31 March 2024
2024
2023
Note
£
£
Turnover
4
12,314,407
9,547,847
Cost of sales
8,285,516
6,794,656
-------------
------------
Gross profit
4,028,891
2,753,191
Administrative expenses
2,568,130
2,092,524
Other operating income
5
52,750
------------
------------
Operating profit
6
1,460,761
713,417
Interest receivable
10
42,500
37,750
Interest payable
11
41
704
------------
------------
Profit before taxation
1,503,220
750,463
Taxation on ordinary activities
12
371,285
145,401
------------
---------
Profit for the financial year
1,131,935
605,062
------------
---------
Remeasurement of the net defined benefit plan
( 144,000)
( 97,000)
---------
---------
Total comprehensive income for the year
987,935
508,062
---------
---------
All the activities of the company are from continuing operations.
Craig & Derricott Limited
Statement of Financial Position
31 March 2024
2024
2023
Note
£
£
£
Fixed assets
Tangible assets
14
617,424
649,907
Current assets
Stocks
15
2,633,261
2,904,343
Debtors
16
3,671,981
2,838,392
Cash at bank and in hand
574,212
313,879
------------
------------
6,879,454
6,056,614
Creditors: amounts falling due within one year
17
2,071,965
2,017,411
------------
------------
Net current assets
4,807,489
4,039,203
------------
------------
Total assets less current liabilities
5,424,913
4,689,110
Provisions
Taxation including deferred tax
18
102,851
104,983
------------
------------
Net assets
5,322,062
4,584,127
------------
------------
Capital and reserves
Called up share capital
22
10,379
10,379
Profit and loss account
23
5,311,683
4,573,748
------------
------------
Shareholders funds
5,322,062
4,584,127
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 11 June 2024 , and are signed on behalf of the board by:
K C Miller
Director
Company registration number: 0388918
Craig & Derricott Limited
Statement of Changes in Equity
Year ended 31 March 2024
Called up share capital
Profit and loss account
Total
£
£
£
At 1 April 2022
10,379
4,315,686
4,326,065
Profit for the year
605,062
605,062
Other comprehensive income for the year:
Remeasurement of the net defined benefit plan
20
( 97,000)
( 97,000)
--------
------------
------------
Total comprehensive income for the year
508,062
508,062
Dividends paid and payable
13
( 250,000)
( 250,000)
--------
------------
------------
Total investments by and distributions to owners
( 250,000)
( 250,000)
At 31 March 2023
10,379
4,573,748
4,584,127
Profit for the year
1,131,935
1,131,935
Other comprehensive income for the year:
Remeasurement of the net defined benefit plan
20
( 144,000)
( 144,000)
--------
------------
------------
Total comprehensive income for the year
987,935
987,935
Dividends paid and payable
13
( 250,000)
( 250,000)
----
---------
---------
Total investments by and distributions to owners
( 250,000)
( 250,000)
--------
------------
------------
At 31 March 2024
10,379
5,311,683
5,322,062
--------
------------
------------
Craig & Derricott Limited
Statement of Cash Flows
Year ended 31 March 2024
2024
2023
£
£
Cash flows from operating activities
Profit for the financial year
1,131,935
605,062
Adjustments for:
Depreciation of tangible assets
143,831
183,933
Interest receivable
( 42,500)
( 37,750)
Interest payable
41
704
Defined benefit pension plan employer contributions
( 144,000)
( 76,000)
Taxation on ordinary activities
371,285
145,401
Accrued expenses
199,271
40,993
Changes in:
Stocks
271,082
( 844,060)
Trade and other debtors
( 833,589)
200,133
Trade and other creditors
( 317,725)
431,243
------------
---------
Cash generated from operations
779,631
649,659
Interest paid
( 41)
( 704)
Interest received
42,500
37,750
Tax paid
( 200,409)
( 78,569)
---------
---------
Net cash from operating activities
621,681
608,136
---------
---------
Cash flows from investing activities
Purchase of tangible assets
( 111,348)
( 219,852)
---------
---------
Net cash used in investing activities
( 111,348)
( 219,852)
---------
---------
Cash flows from financing activities
Dividends paid
( 250,000)
( 250,000)
---------
---------
Net cash used in financing activities
( 250,000)
( 250,000)
---------
---------
Net increase in cash and cash equivalents
260,333
138,284
Cash and cash equivalents at beginning of year
313,879
175,595
---------
---------
Cash and cash equivalents at end of year
574,212
313,879
---------
---------
Craig & Derricott Limited
Notes to the Financial Statements
Year ended 31 March 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 46 Hall Lane, Walsall Wood, Walsall, WS9 9DP.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis The financial statements are prepared in sterling, which is the functional currency of the entity. Research and development Research and development expenditure is written off in the year in which it is incurred. Judgements and key sources of estimation uncertainty The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgements The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: Exchange rate fluctuations The directors have taken a decision to hedge against exchange fluctuations caused by uncertainty surrounding Brexit and other factors outside of their control. The company continues to invoice in the Middle East in US Dollars which provides a natural hedge against purchases in this currency. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Pension obligations The cost of defined benefit pension plans are determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and the long term nature of these plans, such estimates are subject to significant uncertainty. Revenue recognition Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Taxation The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. Operating leases Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis. Tangible assets Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Depreciation Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Short leasehold property - 10% straight line
Plant and machinery - 10-12.5% straight line
Fixtures, fittings and equipment - 25-33% straight line
Motor vehicles - 25% straight line
Computer equipment - 33% straight line
Development - 10%-50% straight line
Impairment of fixed assets A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Pension plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. The company recognises a defined net benefit pension asset or liability in the statement of financial position as the net total of the present value of its obligations and the fair value of plan assets out of which the obligations are to be settled. The defined benefit liability is measured on a discounted present value basis using a rate determined by reference to market yields at the reporting date on high quality corporate bonds. Defined benefit obligations and the related expenses are measured using the projected unit credit method. Plan surpluses are recognised as a defined benefit asset only to the extent that the surplus is recoverable either through reduced contributions in the future or through refunds from the plan.
4. Turnover
Turnover arises from:
2024
2023
£
£
Sale of goods
12,314,407
9,547,847
-------------
------------
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2024
2023
£
£
United Kingdom
9,232,020
6,962,722
Overseas
3,082,387
2,585,125
-------------
------------
12,314,407
9,547,847
-------------
------------
5. Other operating income
2024
2023
£
£
Other operating income
52,750
----
--------
6. Operating profit
Operating profit or loss is stated after charging:
2024
2023
£
£
Depreciation of tangible assets
143,831
183,933
Impairment of trade debtors
522
Research and development expenditure written off
178,881
140,119
Operating lease rentals- land and buildings
70,000
70,000
Operating lease rentals
98,400
4,694
---------
---------
7. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
8,000
8,000
-------
-------
8. Particulars of employees
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Production staff
42
39
Administrative staff
38
43
Finance staff
2
3
----
----
82
85
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
2,925,674
2,574,665
Social security costs
299,735
257,524
Other pension costs
77,163
67,072
------------
------------
3,302,572
2,899,261
------------
------------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
172,943
156,959
Company contributions to defined contribution pension plans
1,761
1,761
---------
---------
174,704
158,720
---------
---------
The number of directors who accrued benefits under company pension plans was as follows:
2024
2023
No.
No.
Defined contribution plans
1
1
----
----
10. Interest receivable
2024
2023
£
£
Interest from group undertakings
42,500
37,750
--------
--------
11. Interest payable
2024
2023
£
£
Interest on debenture loans
41
704
----
----
12. Taxation on ordinary activities
Major components of tax expense
2024
2023
£
£
Current tax:
UK current tax expense
373,417
107,578
Deferred tax:
Origination and reversal of timing differences
( 2,132)
37,823
---------
---------
Taxation on ordinary activities
371,285
145,401
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 19 %).
2024
2023
£
£
Profit on ordinary activities before taxation
1,503,220
750,463
------------
---------
Profit on ordinary activities by rate of tax
375,805
142,588
Effect of expenses not deductible for tax purposes
2,327
1,161
Effect of capital allowances and depreciation
( 9,484)
Effect of different UK tax rates on some earnings
25,196
Rounding on tax charge
22,653
Contribution to defined benefit pension scheme
(29,500)
(14,060)
------------
---------
Tax on profit
371,285
145,401
------------
---------
13. Dividends
2024
2023
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
250,000
250,000
Dividends proposed after the year end and not recognised as a liability
320,000
280,000
---------
---------
14. Tangible assets
Land and buildings
Plant and machinery
Fixtures, fittings and equipment
Motor vehicles
Dev't assets
Total
£
£
£
£
£
£
Cost
At 1 Apr 2023
178,924
668,461
150,807
35,496
157,918
1,191,606
Additions
4,950
73,590
16,428
16,380
111,348
---------
---------
---------
--------
---------
------------
At 31 Mar 2024
183,874
742,051
167,235
35,496
174,298
1,302,954
---------
---------
---------
--------
---------
------------
Depreciation
At 1 Apr 2023
45,670
313,226
110,715
35,496
36,592
541,699
Charge for the year
16,463
80,690
32,078
14,600
143,831
---------
---------
---------
--------
---------
------------
At 31 Mar 2024
62,133
393,916
142,793
35,496
51,192
685,530
---------
---------
---------
--------
---------
------------
Carrying amount
At 31 Mar 2024
121,741
348,135
24,442
123,106
617,424
---------
---------
---------
--------
---------
------------
At 31 Mar 2023
133,254
355,235
40,092
121,326
649,907
---------
---------
---------
--------
---------
------------
15. Stocks
2024
2023
£
£
Raw materials
2,104,351
2,296,893
Work in progress
172,211
397,711
Finished goods
356,699
209,739
------------
------------
2,633,261
2,904,343
------------
------------
16. Debtors
2024
2023
£
£
Trade debtors
2,599,805
1,836,889
Amounts owed by group undertakings
887,382
887,382
Prepayments and accrued income
184,794
114,121
------------
------------
3,671,981
2,838,392
------------
------------
17. Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,037,416
1,502,343
Accruals and deferred income
475,341
276,070
Corporation tax
226,503
53,495
Social security and other taxes
319,317
173,868
Other creditors
13,388
11,635
------------
------------
2,071,965
2,017,411
------------
------------
18. Provisions
Deferred tax (note 19)
£
At 1 April 2023
104,983
Charge against provision
( 2,132)
---------
At 31 March 2024
102,851
---------
19. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 18)
102,851
104,983
---------
---------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
102,851
104,983
---------
---------
20. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 77,163 (2023: £ 67,072 ).
21. Defined pensions plan
The company operates a pension scheme providing benefits based on final pensionable pay. The assets of the scheme are held separately from those of the company, being invested with independent financial advisors. Pension contributions are determined by Goddard Perry Actuarial LLP on the basis of triennial valuations. A full actuarial valuation was carried out at 5th April 2021.
The net defined benefit asset is determined as follows:
2024
2023
£
£
Present value of defined benefit obligations
(1,504,000)
(1,507,000)
Fair value of plan assets
1,997,000
1,957,000
------------
------------
493,000
450,000
------------
------------
In accordance with FRS102, the surplus is not recognised as an asset on the statement of financial position,
Changes in the present value of the defined benefit obligations are as follows:
2024
£
At 1 April 2023
1,507,000
Interest expense
77,000
Benefits paid
(56,000)
Remeasurements:
Actuarial gains and losses
(24,000)
------------
At 31 March 2024
1,504,000
------------
Changes in the fair value of plan assets are as follows:
2024
£
At 1 April 2023
1,957,000
Interest Income
103,000
Benefits paid
(56,000)
Contributions by employer
118,000
Remeasurements:
Return on plan assets, excluding amount included in interest income
(125,000)
------------
At 31 March 2024
1,997,000
------------
The total costs for the year in relation to defined benefits plans are as follows:
2024
2023
£
£
Recognised in profit or loss:
Net interest income
26,000
2,000
Recognised in comprehensive income:
Remeasurement of the liability:
Actuarial gains and losses
144,000
97,000
The fair value of the major categories of plan assets are as follows:
2024
2023
£
£
Equity instruments
1,955,000
1,910,000
Cash and cash equivalents
42,000
47,000
1,997,000
1,957,000
The principle actuarial assumptions as at the statement of financial position date were:
2024
2023
Discount rate
5.30%
5.20%
Expected rate of increase in pensions
2.31%
2.25%
Inflation assumption
3.10%
3.00%
22. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
10,379
10,379
10,379
10,379
--------
--------
--------
--------
23. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
24. Analysis of changes in net debt
At 1 Apr 2023
Cash flows
At 31 Mar 2024
£
£
£
Cash at bank and in hand
313,879
260,333
574,212
---------
---------
---------
25. Commitments under operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2024
2023
£
£
Not later than 1 year
900
4,200
Later than 1 year and not later than 5 years
239,500
74,300
Later than 5 years
425,800
495,800
---------
---------
666,200
574,300
---------
---------
26. Related party transactions
Included in debtors is an amount due from the company's parent company, Craig & Derricott Holdings Limited of £887,382 (2023 £887,382) which carries interest at market rate. Interest of £42,500 was received during the year. A management charge of £42,500 was paid to this company. Expenses and fees totalling £188,115 were paid to Addtech Nordic AB, the company's ultimate parent company.
27. Controlling party
The parent company is Craig & Derricott Holdings Limited, whose registered office and principal place of business is 46 Hall Lane, Walsall Wood, Walsall, WS9 9DP. Craig & Derricott Holdings Limited controls 90% of the company and the remaining 10% is owned by Addtech Nordic AB. The ultimate parent company is Addtech Nordic AB, which controls 100% of the issued share capital of Craig & Derricott Holdings Limited.