Company Registration No. 09392822 (England and Wales)
CCB SHEET STEEL LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 JANUARY 2024
Celixir House
Stratford Business & Technology Park
Innovation Way, Banbury Road
Stratford-upon-Avon
Warwickshire
United Kingdom
CV37 7GZ
CCB SHEET STEEL LIMITED
CONTENTS
Page
Company information
1
Strategic report
2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 24
CCB SHEET STEEL LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr C J Clifton-Brown
Mrs V R Clifton-Brown
Secretary
Mr C J Clifton-Brown
Company number
09392822
Registered office
Nelson House
2 Hamilton Terrace
Leamington Spa
Warwickshire
England
CV32 4LY
Auditor
TC Group
Celixir House
Stratford Business & Technology Park
Innovation Way, Banbury Road
Stratford-upon-Avon
Warwickshire
United Kingdom
CV37 7GZ
CCB SHEET STEEL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -
The directors present the strategic report for the year ended 31 January 2024.
Review of the business
The directors present the strategic report for the year ended 31 January 2024.
Business Review
2024 continued to be a successful year for the company in terms of sales and profitability. Following the growth in sales in 2023 the company has maintained this by managing inflationary pressures within the economy.
Principal risks and uncertainties
The Company uses various financial instruments including trade debtors and trade creditors, that arise directly from operations. The main purpose of these financial instruments is to raise finance for the Company’s operations.
The existence of these financial instruments exposes the Company to several financial risks, which are described in more detail below. The main risks arising from the Company’s financial instruments credit risk and liquidity risk. The Directors review and agree policies for managing each of these risks and are unchanged from previous years.
Credit risk
The Directors manage credit risk by setting limits for customers based on a combination of payment history and third-party credit references as well as having controls in place to manage, escalate and resolve overdue debts. Credit limits are reviewed on a regular basis in conjunction with debt ageing and collection history.
Liquidity risk
The Company seeks to manage liquidity risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.
Key performance indicators
Turnover in 2024 was £12,227,165 compared to £12,514,945 in 2023.
Gross Profit margin in 2024 is 11.9% (2023: 15.1%).
Trading profit before tax in 2024 is £893,403 (2023: £1,262,603)
Mr C J Clifton-Brown
Director
28 October 2024
CCB SHEET STEEL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 January 2024.
Principal activities
The principal activity of the company continued to be that of steel merchanting.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £95,592 during the year.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr C J Clifton-Brown
Mrs V R Clifton-Brown
Auditor
TC Group were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of review of business and principal risks and uncertainties.
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.
On behalf of the board
Mr C J Clifton-Brown
Director
28 October 2024
CCB SHEET STEEL LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2024
- 4 -
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.
CCB SHEET STEEL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CCB SHEET STEEL LIMITED
- 5 -
Qualified opinion on financial statements
We have audited the financial statements of CCB Sheet Steel Limited (the 'company') for the year ended 31 January 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, 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, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:
give a true and fair view of the state of the company's affairs as at 31 January 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for qualified opinion
We were not appointed as auditor of the company until after 31 January 2024 and thus did not observe the counting of physical inventories at the end of the year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 January 2023, which are included in the balance sheet at £2,324,000, by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary.
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.
CCB SHEET STEEL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CCB SHEET STEEL LIMITED (CONTINUED)
- 6 -
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; 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 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.
CCB SHEET STEEL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CCB SHEET STEEL LIMITED (CONTINUED)
- 7 -
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. 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
The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.
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.
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
· Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.
· Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
· Assessing the extent of compliance, or lack of, with the relevant laws and regulations.
· Testing key income lines, in particular cut-off, for evidence of management bias.
· Obtaining third party confirmation of material bank balances
· Documenting and verifying all significant related party balances and transactions
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 from the events and transactions reflected in the financial statements, as we will be less likely to be 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.
The comparative figures have not been audited.
CCB SHEET STEEL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CCB SHEET STEEL LIMITED (CONTINUED)
- 8 -
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.
Mark Bullock FCA
Senior Statutory Auditor
For and on behalf of TC Group
28 October 2024
Statutory Auditor
Celixir House
Stratford Business & Technology Park
Innovation Way, Banbury Road
Stratford-upon-Avon
Warwickshire
United Kingdom
CV37 7GZ
CCB SHEET STEEL LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2024
- 9 -
2024
2023
Notes
£
£
Turnover
2
12,227,165
12,514,945
Cost of sales
(10,769,293)
(10,624,197)
Gross profit
1,457,872
1,890,748
Administrative expenses
(564,459)
(598,741)
Operating profit
3
893,413
1,292,007
Interest payable and similar expenses
6
(10)
(29,404)
Profit before taxation
893,403
1,262,603
Tax on profit
7
(217,861)
(240,511)
Profit for the financial year
675,542
1,022,092
The profit and loss account has been prepared on the basis that all operations are continuing operations.
CCB SHEET STEEL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 10 -
2024
2023
£
£
Profit for the year
675,542
1,022,092
Other comprehensive income
-
-
Total comprehensive income for the year
675,542
1,022,092
CCB SHEET STEEL LIMITED
BALANCE SHEET
AS AT 31 JANUARY 2024
31 January 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
46,164
38,240
Current assets
Stocks
10
3,145,141
2,324,000
Debtors
11
4,446,531
2,963,707
Cash at bank and in hand
48,044
175,205
7,639,716
5,462,912
Creditors: amounts falling due within one year
12
(4,741,678)
(3,136,686)
Net current assets
2,898,038
2,326,226
Total assets less current liabilities
2,944,202
2,364,466
Provisions for liabilities
Deferred tax liability
13
5,479
5,693
(5,479)
(5,693)
Net assets
2,938,723
2,358,773
Capital and reserves
Called up share capital
15
2
2
Profit and loss reserves
2,938,721
2,358,771
Total equity
2,938,723
2,358,773
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 28 October 2024 and are signed on its behalf by:
Mr C J Clifton-Brown
Director
Company registration number 09392822 (England and Wales)
CCB SHEET STEEL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 February 2022
2
1,472,679
1,472,681
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
1,022,092
1,022,092
Dividends
8
-
(136,000)
(136,000)
Balance at 31 January 2023
2
2,358,771
2,358,773
Year ended 31 January 2024:
Profit and total comprehensive income for the year
-
675,542
675,542
Dividends
8
-
(95,592)
(95,592)
Balance at 31 January 2024
2
2,938,721
2,938,723
CCB SHEET STEEL LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
231,566
634,079
Interest paid
(10)
(29,404)
Income taxes paid
(241,543)
(330,338)
Net cash (outflow)/inflow from operating activities
(9,987)
274,337
Investing activities
Purchase of tangible fixed assets
(21,582)
(2,391)
Net cash used in investing activities
(21,582)
(2,391)
Financing activities
Dividends paid
(95,592)
(136,000)
Net cash used in financing activities
(95,592)
(136,000)
Net (decrease)/increase in cash and cash equivalents
(127,161)
135,946
Cash and cash equivalents at beginning of year
175,205
39,259
Cash and cash equivalents at end of year
48,044
175,205
CCB SHEET STEEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 14 -
1
Accounting policies
Company information
CCB Sheet Steel Limited is a private company limited by shares incorporated in England and Wales. The registered office is Nelson House, 2 Hamilton Terrace, Leamington Spa, Warwickshire, England, CV32 4LY.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, The principal accounting policies adopted are set out below.
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 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.
1.4
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:
Freehold land and buildings
20% reducing balance
Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance
Motor vehicles
25% reducing balance
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 credited or charged to profit or loss.
CCB SHEET STEEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 15 -
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
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.
1.6
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.
1.7
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
CCB SHEET STEEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 16 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company 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 company 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.
CCB SHEET STEEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 17 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
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. 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 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.
1.9
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
CCB SHEET STEEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 18 -
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.
1.11
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
Turnover
2024
2023
£
£
Turnover analysed by class of business
Steel sales
12,227,165
12,514,945
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
10,990,731
11,867,023
Outside United Kingdom
1,236,434
647,922
12,227,165
12,514,945
3
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
8,000
Depreciation of owned tangible fixed assets
13,658
11,623
Operating lease charges
6,683
1,600
CCB SHEET STEEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 19 -
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
4
4
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
81,846
52,102
Social security costs
1,800
1,500
Pension costs
71,123
201,802
154,769
255,404
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
20,950
Directors' pension
70,170
200,240
91,120
200,240
6
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
29,404
Other finance costs:
Other interest
10
10
29,404
CCB SHEET STEEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 20 -
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
218,075
241,872
Deferred tax
Origination and reversal of timing differences
(214)
(1,361)
Total tax charge
217,861
240,511
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
893,403
1,262,603
Expected tax charge based on the standard rate of corporation tax in the UK of 24.03% (2023: 19.00%)
214,685
239,895
Tax effect of expenses that are not deductible in determining taxable profit
1,072
360
Permanent capital allowances in excess of depreciation
(964)
(591)
Depreciation on assets not qualifying for tax allowances
3,282
2,208
Deferred tax adjustments in respect of prior years
(214)
(1,361)
Taxation charge for the year
217,861
240,511
8
Dividends
2024
2023
£
£
Interim paid
95,592
136,000
CCB SHEET STEEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 21 -
9
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 February 2023
12,936
6,096
14,176
89,254
122,462
Additions
2,832
18,750
21,582
At 31 January 2024
12,936
8,928
14,176
108,004
144,044
Depreciation and impairment
At 1 February 2023
4,657
2,379
10,059
67,127
84,222
Depreciation charged in the year
1,656
1,537
1,029
9,436
13,658
At 31 January 2024
6,313
3,916
11,088
76,563
97,880
Carrying amount
At 31 January 2024
6,623
5,012
3,088
31,441
46,164
At 31 January 2023
8,279
3,717
4,117
22,127
38,240
10
Stocks
2024
2023
£
£
Finished goods and goods for resale
3,145,141
2,324,000
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,421,531
2,898,936
Other debtors
25,000
64,771
4,446,531
2,963,707
CCB SHEET STEEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 22 -
12
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
2,196,287
2,043,485
Corporation tax
218,404
241,872
Other taxation and social security
26,441
998
Other creditors
2,142,944
814,621
Accruals and deferred income
157,602
35,710
4,741,678
3,136,686
Included in other creditors is an amount of £2,116,766 (2023: £733,456) relating to invoice discounting. The invoice discounting is secured by a fixed and floating charge over the assets of the company.
13
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
5,479
5,693
2024
Movements in the year:
£
Liability at 1 February 2023
5,693
Credit to profit or loss
(214)
Liability at 31 January 2024
5,479
The deferred tax liability of £1,678 is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
CCB SHEET STEEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 23 -
14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
71,123
201,802
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.
15
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary of £1 each
1
1
1
1
B Ordinary of £1 each
1
1
1
1
2
2
2
2
Shares rank equally for voting purposes, each member shall have one vote per share held. Each share ranks equally for any dividend declared. Each share ranks equally for any distribution made on a wound up. The shares are not redeemable.
16
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
11,480
Between two and five years
14,079
25,559
The operating leases relate to the lease of the principal place of business and of a motor vehicle. Both separate lease agreements are for a period of three years each.
CCB SHEET STEEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 24 -
17
Directors' transactions
Dividends totalling £95,592 (2023 - £136,000) were paid in the year in respect of shares held by the company's directors.
Amounts owed to the directors as at 31 January 2024 were Nil (2023 - £65,613).
18
Ultimate controlling party
The company is not under the control of any individual person.
19
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
675,542
1,022,092
Adjustments for:
Taxation charged
217,861
240,511
Finance costs
10
29,404
Depreciation and impairment of tangible fixed assets
13,658
11,623
Movements in working capital:
Increase in stocks
(821,141)
(295,677)
(Increase)/decrease in debtors
(1,482,824)
447,468
Increase/(decrease) in creditors
1,628,460
(821,342)
Cash generated from operations
231,566
634,079
20
Analysis of changes in net funds
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
175,205
(127,161)
48,044
2024-01-312023-02-01falseCCH SoftwareCCH Accounts Production 2024.210Mrs V R Clifton-BrownMrs Victoria R Clifton-BrownMr C J Clifton-Brownfalsefalse093928222023-02-012024-01-3109392822bus:CompanySecretaryDirector12023-02-012024-01-3109392822bus:Director12023-02-012024-01-3109392822bus:CompanySecretary12023-02-012024-01-3109392822bus:Director22023-02-012024-01-3109392822bus:RegisteredOffice2023-02-012024-01-31093928222024-01-31093928222022-02-012023-01-3109392822core:RetainedEarningsAccumulatedLosses2022-02-012023-01-3109392822core:RetainedEarningsAccumulatedLosses2023-02-012024-01-31093928222023-01-3109392822core:LandBuildingscore:OwnedOrFreeholdAssets2024-01-3109392822core:PlantMachinery2024-01-3109392822core:FurnitureFittings2024-01-3109392822core:MotorVehicles2024-01-3109392822core:LandBuildingscore:OwnedOrFreeholdAssets2023-01-3109392822core:PlantMachinery2023-01-3109392822core:FurnitureFittings2023-01-3109392822core:MotorVehicles2023-01-3109392822core:CurrentFinancialInstrumentscore:WithinOneYear2024-01-3109392822core:CurrentFinancialInstrumentscore:WithinOneYear2023-01-3109392822core:CurrentFinancialInstruments2024-01-3109392822core:CurrentFinancialInstruments2023-01-3109392822core:ShareCapital2024-01-3109392822core:ShareCapital2023-01-3109392822core:RetainedEarningsAccumulatedLosses2024-01-3109392822core:RetainedEarningsAccumulatedLosses2023-01-3109392822core:ShareCapital2022-01-3109392822core:RetainedEarningsAccumulatedLosses2022-01-31093928222022-01-3109392822core:ShareCapitalOrdinaryShares2024-01-3109392822core:ShareCapitalOrdinaryShares2023-01-31093928222023-01-3109392822core:LandBuildingscore:OwnedOrFreeholdAssets2023-02-012024-01-3109392822core:PlantMachinery2023-02-012024-01-3109392822core:FurnitureFittings2023-02-012024-01-3109392822core:MotorVehicles2023-02-012024-01-310939282212023-02-012024-01-310939282212022-02-012023-01-3109392822core:UKTax2023-02-012024-01-3109392822core:UKTax2022-02-012023-01-3109392822core:LandBuildingscore:OwnedOrFreeholdAssets2023-01-3109392822core:PlantMachinery2023-01-3109392822core:FurnitureFittings2023-01-3109392822core:MotorVehicles2023-01-3109392822core:WithinOneYear2024-01-3109392822core:WithinOneYear2023-01-3109392822core:BetweenTwoFiveYears2024-01-3109392822core:BetweenTwoFiveYears2023-01-3109392822bus:PrivateLimitedCompanyLtd2023-02-012024-01-3109392822bus:FRS1022023-02-012024-01-3109392822bus:Audited2023-02-012024-01-3109392822bus:FullAccounts2023-02-012024-01-31xbrli:purexbrli:sharesiso4217:GBP