Company registration number 03301620 (England and Wales)
A C VALVES & CONTROLS LIMITED
ANNUAL REPORT AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2024
A C VALVES & CONTROLS LIMITED
COMPANY INFORMATION
Directors
J M Calvert
N A Flint
J M Findell
S G Plant
Secretary
J M Calvert
Company number
03301620
Registered office
Unit 6, Interlink Way South
Bardon Hill
Coalville
Leicestershire
LE67 1PH
Auditor
Newby Castleman LLP
West Walk Building
110 Regent Road
Leicester
LE1 7LT
Business address
Unit 6, Interlink Way South
Bardon Hill
Coalville
Leicestershire
LE67 1PH
A C VALVES & CONTROLS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8
Statement of cash flows
9
Notes to the financial statements
10 - 21
A C VALVES & CONTROLS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Review of the business
The directors aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. The review is consistent with the size and non-complex nature of the business and is written in the context of the risks and uncertainties that the company faces.
The principal activity of the company is that of the sale of valves and actuators.
The company's performance has been consistently positive, reflecting our robust growth strategy. We have made significant investments across all areas of the business, including infrastructure, stock holding, sales activities, and most importantly, in our people. This comprehensive approach ensures that we are well-positioned for sustained growth and success.
Our core activities revolve around the stocking and sale of process valves and actuators. In addition, we are continuously expanding our manufacturing capabilities, which play a crucial role in our overall service strategy. This dual focus on sales and manufacturing allows us to offer a comprehensive range of services to our clients.
Financially, we have had a strong year. Key performance indicators show an increase in gross margins to 27.9% (2023: 25.0%), which is a positive sign. Although our sales turnover has seen a decline to £11,635,912 (2023: £18,627,386), we have significantly bolstered our total reserves, with £1,055,974 being added to the company reserves after taxation and dividends. This financial resilience is particularly noteworthy given the increased costs we have faced across the business. Despite these challenges, we have remained committed to investing in the future of the company and our employees.
The market has shown a positive shift, which is very encouraging. We have adapted to meet the evolving demands of the transition energy market and are excited to contribute to the global drive towards reducing carbon dioxide emissions and achieving “Net Zero”. This alignment with global sustainability goals positions us well for future opportunities.
The principal risks and uncertainties of the company are continually monitored by the directors, who seek to mitigate any such risks. The key business risks affecting the company are considered to be fluctuations in oil prices, competition, and the global economic environment.
In response to the ongoing impact of Brexit on UK trade, we have proactively established a European trading hub. This strategic move is designed to protect our European customers and suppliers and enhance our support and service throughout Europe. We are committed to expanding our activities in this region to mitigate any negative effects and capitalize on new opportunities.
Overall, we are very pleased with our results and are optimistic about the future. We look forward to tackling the challenges ahead with the same dedication and strategic focus that has driven our success thus far.
J M Calvert
Director
17 October 2024
A C VALVES & CONTROLS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
The directors present their report and financial statements for the year ended 31 March 2024.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £200,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
J M Calvert
N A Flint
J M Findell
S G Plant
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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.
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 company’s auditor 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 company’s auditor 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.
A C VALVES & CONTROLS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
On behalf of the board
J M Calvert
Director
17 October 2024
A C VALVES & CONTROLS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF A C VALVES & CONTROLS LIMITED
- 4 -
Opinion
We have audited the financial statements of A C Valves & Controls Limited (the 'company') for the year ended 31 March 2024 which comprise the Statement of Income and Retained Earnings, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
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:
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
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
A C VALVES & CONTROLS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF A C VALVES & CONTROLS LIMITED
- 5 -
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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on page 2, 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.
Extent to which the audit was considered capable of detecting irregularities, including fraud
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. However, responsibility for the prevention and detection of fraud ultimately rests with both those charged with governance and management of the company.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
obtaining an understanding of the legal and regulatory framework applicable to the company by considering the nature of the industry in which the company operates and enquiring of management; and
identifying the key laws and regulations considered to have a direct impact on the financial statements including the UK Companies Act 2006, UK Generally Accepted Accounting Practice and UK tax legislation; and
A C VALVES & CONTROLS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF A C VALVES & CONTROLS LIMITED
- 6 -
assessing how the company is complying with the applicable legal and regulatory framework by making further enquiries of management and observing the company's control environment regarding compliance with regulations and fraud prevention; and
assessing the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur, by considering the effectiveness of the company’s accounting systems and controls and how these were monitored by management. Performance related targets and bonuses were also considered. Where the risk of material misstatement was considered to be higher in certain areas, further audit procedures were designed to address this increased risk; and
discussing amongst the engagement team how and where fraud might occur in the financial statements and any potential indicators of fraud.
Audit response to risks identified
Our procedures to respond to risks identified included the following:
performing 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; and
performing audit work over revenue recognition including substantive tests of detail of a sample of revenue transactions
communicating identified laws and regulations and potential fraud risks to all engagement team members and assessing whether there are any indications of fraud or non-compliance with laws and regulations throughout the audit
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.
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.
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.
John Griffin FCCA (Senior Statutory Auditor)
For and on behalf of Newby Castleman LLP
17 October 2024
Chartered Accountants
Statutory Auditor
West Walk Building
110 Regent Road
Leicester
LE1 7LT
A C VALVES & CONTROLS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
11,635,912
18,627,386
Cost of sales
(8,385,909)
(13,965,779)
Gross profit
3,250,003
4,661,607
Administrative expenses
(2,427,276)
(2,069,973)
Other operating income
765,000
690,000
Operating profit
5
1,587,727
3,281,634
Income from shares in group undertakings
8
327,000
242,500
Interest receivable and similar income
8
21,529
6,358
Interest payable and similar expenses
9
(24,111)
(581)
Amounts written off investments
4
(275,000)
Profit before taxation
1,637,145
3,529,911
Taxation
10
(381,171)
(629,544)
Profit for the financial year
1,255,974
2,900,367
Retained earnings brought forward
8,852,665
6,102,298
Dividends
11
(200,000)
(150,000)
Retained earnings carried forward
9,908,639
8,852,665
The profit and loss account has been prepared on the basis that all operations are continuing operations.
A C VALVES & CONTROLS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
721,926
488,215
Investments
13
2,079,549
1,986,170
2,801,475
2,474,385
Current assets
Stocks
15
1,627,238
1,374,103
Debtors
16
3,862,629
5,919,524
Cash at bank and in hand
3,788,643
2,874,138
9,278,510
10,167,765
Creditors: amounts falling due within one year
17
(2,089,101)
(3,726,334)
Net current assets
7,189,409
6,441,431
Total assets less current liabilities
9,990,884
8,915,816
Provisions for liabilities
Deferred tax liability
18
82,145
63,051
(82,145)
(63,051)
Net assets
9,908,739
8,852,765
Capital and reserves
Called up share capital
20
100
100
Profit and loss reserves
21
9,908,639
8,852,665
Total equity
9,908,739
8,852,765
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 17 October 2024 and are signed on its behalf by:
J M Findell
Director
Company registration number 03301620 (England and Wales)
A C VALVES & CONTROLS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
1,986,717
2,165,711
Interest paid
(24,111)
(581)
Income taxes paid
(755,958)
(281,545)
Net cash inflow from operating activities
1,206,648
1,883,585
Investing activities
Purchase of tangible fixed assets
(357,828)
(173,468)
Proceeds from disposal of shares in subsidiaries
5,000
Purchase of subsidiaries
(87,844)
Interest received
21,529
6,358
Dividends received
327,000
242,500
Net cash (used in)/generated from investing activities
(92,143)
75,390
Financing activities
Dividends paid
(200,000)
(150,000)
Net cash used in financing activities
(200,000)
(150,000)
Net increase in cash and cash equivalents
914,505
1,808,975
Cash and cash equivalents at beginning of year
2,874,138
1,065,163
Cash and cash equivalents at end of year
3,788,643
2,874,138
A C VALVES & CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
1
Accounting policies
Company information
A C Valves & Controls Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 6, Interlink Way South, Bardon Hill, Coalville, Leicestershire, LE67 1PH.
1.1
Basis of preparation
These financial statements have been prepared in accordance with applicable accounting standards including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods supplied in the normal course of business, and is shown net of VAT and trade discounts. Turnover is recognised on the date that the goods are despatched as this is the point that all risks and rewards are deemed to be transferred.
1.4
Tangible fixed assets
Tangible fixed assets are measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
10% per annum of cost
Plant and machinery
15% per annum of cost
Fixtures, fittings & computer equipment
25% per annum of cost
Motor vehicles
25% per annum of cost
1.5
Fixed asset investments
Interests in subsidiaries are measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct material costs. Provision is made for damaged, obsolete and slow-moving stock where appropriate.
1.7
Financial instruments
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Debtors and creditors with no stated interest rate and receivable or payable within one year are measured at transaction price. Any losses arising from impairment are recognised in the profit and loss account.
A C VALVES & CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 11 -
1.8
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. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
1.9
Employee benefits
When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are recognised.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to the profit and loss account on a straight line basis over the term of the relevant lease.
1.12
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 the profit and loss account .
1.13
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
A C Valves & Controls Limited is a wholly owned subsidiary of The Valve & Actuation Group Limited and the results of A C Valves & Controls Limited are included in the consolidated financial statements of The Valve & Actuation Group Limited which are available from Companies House. Since the year-end, the ultimate parent company has changed to be AC Valve Alliance Group Holdings Limited.
The registered address of The Valve & Actuation Group Limited is the same as the company's registered office address as given in the company information page of these financial statements.
A C VALVES & CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
There are not considered to be any estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover
Sale of goods
11,635,912
18,627,386
2024
2023
£
£
Other revenue
Interest income
21,529
6,358
Dividends received
327,000
242,500
2024
2023
£
£
Turnover analysed by geographical market
Overseas
5,236,160
12,666,622
UK
6,399,752
5,960,764
11,635,912
18,627,386
4
Exceptional item
2024
2023
£
£
Expenditure
Amounts written off loans
200,000
-
Amounts written off investments in subsidiaries
75,000
-
275,000
-
The company classifies certain one-off charges and credits which have a material impact on the company's financial results as 'exceptional items'. These are disclosed separately to provide further understanding of the financial performance of the company.
A C VALVES & CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
5
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
17,337
(622,007)
Fees payable to the company's auditor for the audit of the company's financial statements
10,195
8,850
Depreciation of owned tangible fixed assets
125,683
92,861
(Profit)/loss on disposal of tangible fixed assets
(1,566)
3,043
Operating lease charges
77,892
65,519
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
4
4
Sales and administration
13
11
Total
17
15
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
845,779
721,304
Social security costs
93,826
88,827
Pension costs
142,933
147,906
1,082,538
958,037
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
292,978
298,654
Company pension contributions to defined contribution schemes
96,996
122,552
389,974
421,206
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).
A C VALVES & CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
7
Directors' remuneration
(Continued)
- 14 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
129,559
138,581
Company pension contributions to defined contribution schemes
39,996
52,997
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
21,529
6,358
Income from fixed asset investments
Income from shares in group undertakings
327,000
242,500
Total income
348,529
248,858
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
21,529
6,358
9
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
24,111
581
A C VALVES & CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
362,077
613,958
Deferred tax
Origination and reversal of timing differences
19,094
15,586
Total tax charge
381,171
629,544
From 1 April 2023, the UK corporation tax rate increased from 19% to 25%.
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,637,145
3,529,911
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
409,286
670,683
Tax effect of expenses that are not deductible in determining taxable profit
77,586
6,319
Tax effect of income not taxable in determining taxable profit
(81,750)
(46,075)
Group relief
(28,206)
(1,803)
Depreciation on assets not qualifying for tax allowances
4,255
3,285
Super deduction relief
(6,605)
Remeasurement of deferred tax rate
3,740
Taxation charge for the year
381,171
629,544
11
Dividends
2024
2023
£
£
Ordinary paid
200,000
150,000
A C VALVES & CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
12
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures, fittings & computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
239,435
401,373
176,569
85,902
903,279
Additions
143,543
98,404
29,811
111,070
382,828
Disposals
(46,110)
(46,110)
At 31 March 2024
382,978
499,777
206,380
150,862
1,239,997
Depreciation and impairment
At 1 April 2023
48,046
268,742
74,836
23,440
415,064
Depreciation charged in the year
24,492
38,379
45,112
17,700
125,683
Eliminated in respect of disposals
(22,676)
(22,676)
At 31 March 2024
72,538
307,121
119,948
18,464
518,071
Carrying amount
At 31 March 2024
310,440
192,656
86,432
132,398
721,926
At 31 March 2023
191,389
132,631
101,733
62,462
488,215
13
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
14
2,079,549
1,986,170
A C VALVES & CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
13
Fixed asset investments
(Continued)
- 17 -
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 April 2023
1,986,170
Additions
173,379
Disposals
(5,000)
At 31 March 2024
2,154,549
Impairment
At 1 April 2023
Impairment losses
75,000
At 31 March 2024
75,000
Carrying amount
At 31 March 2024
2,079,549
At 31 March 2023
1,986,170
14
Subsidiaries
Details of the company's subsidiaries at 31 March 2024 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Air Torque (UK) Limited
England and Wales
Distribution of valves and actuators
Ordinary
50.00
Starline Ball Valves Limited
England and Wales
Supply of ball valves
Ordinary
70.00
Technical Valve Services Limited
England and Wales
Provision of technical services to the engineering valve industry
Ordinary
100.00
The Valve Alliance Limited
England and Wales
Sale of valves
Ordinary
100.00
Valve & Pipework Systems Limited
England and Wales
Manufacture of skid units and the supply of valves
Ordinary
65.00
Nacional Safety Valves Limited
England and Wales
Sale of valves
Ordinary
75.00
AC Valve Alliance Europe BV
Netherlands
Distribution of valves
Ordinary
100.00
The registered address of the above subsidiaries is the same as the company's registered office address as given in the company information page of these financial statements.
The registered address of AC Valve Alliance Europe BV is Dissel 5, 1671NG Medemblik, Netherlands.
A C VALVES & CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
15
Stocks
2024
2023
£
£
Finished goods and goods for resale
1,627,238
1,374,103
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,285,056
3,163,842
Amount owed by parent undertaking
9,350
9,350
Amounts owed by fellow group undertakings
452,784
595,197
Other debtors
637,065
742,128
Prepayments and accrued income
58,374
1,069,007
3,442,629
5,579,524
2024
2023
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
420,000
340,000
Total debtors
3,862,629
5,919,524
17
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,066,515
2,121,496
Amounts due to subsidiary undertakings
743,089
989,460
Corporation tax
62,077
455,958
Other taxation and social security
51,100
28,038
Other creditors
85,535
Accruals and deferred income
80,785
131,382
2,089,101
3,726,334
A C VALVES & CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
18
Deferred taxation
Deferred tax assets and liabilities are offset where the 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
Balances:
£
£
Accelerated capital allowances
82,145
63,051
2024
Movements in the year:
£
Liability at 1 April 2023
63,051
Charge to profit or loss
19,094
Liability at 31 March 2024
82,145
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
142,933
147,906
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.
21
Profit and loss reserves
This reserve comprises cumulative profits and losses net of dividends.
A C VALVES & CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
352,053
400,978
Between two and five years
1,283,223
1,376,979
In over five years
50,750
308,639
1,686,026
2,086,596
23
Related party transactions
Transactions with related parties
During the year dividends of £327,000 (2023 - £242,500) were received from subsidiary undertakings.
During the year dividends of £200,000 (2023 - £150,000) were paid to the parent undertaking.
During the year sales totalling £180,191 (2023 - £141,219) and recharges totalling £552,741 (2023 - £540,742) were made to and purchases totalling £2,150,741 (2023 - £2,319,606) and recharges totalling £143,495 (2023 - £58,908) were made from subsidiary undertakings not wholly owned by the entity.
During the year, amounts owed by group undertakings were written off totalling £200,000 (2023 - £Nil).
During the year rent of £414,051 (2023 - £400,978) was paid to entities under the control of key management personnel.
At the year-end, other debtors includes £637,065 (2023 - £637,065) owed by an entity under the control of key management personnel.
During the year, the company and its parent undertaking have guaranteed the bank borrowings of an entity under the control of key management personnel totalling £1,004,909 (2023 - £1,071,759). The guarantee is secured by a fixed and floating charge over the assets of both companies.
The company has taken advantage of the exemption offered by FRS 102 from the requirement to disclosetrue transactions between wholly owned group companies.
24
Events after the reporting date
Since the year-end, the directors have decided to transfer the trading activity of the subsidiary company, Nacional Safety Valves UK Limited, to other companies within the AC Valve Alliance Group.
A C VALVES & CONTROLS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
25
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,255,974
2,900,367
Adjustments for:
Taxation charged
381,171
629,544
Finance costs
24,111
581
Investment income
(348,529)
(248,858)
(Gain)/loss on disposal of tangible fixed assets
(1,566)
3,043
Depreciation and impairment of tangible fixed assets
125,683
92,861
Other gains and losses
275,000
-
Movements in working capital:
Increase in stocks
(253,135)
(234,654)
Decrease/(increase) in debtors
1,856,895
(3,077,627)
(Decrease)/increase in creditors
(1,328,887)
2,100,454
Cash generated from operations
1,986,717
2,165,711
26
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
2,874,138
914,505
3,788,643
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