Company registration number 05423342 (England and Wales)
ABCO SEALS HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
ABCO SEALS HOLDINGS LIMITED
COMPANY INFORMATION
Directors
G M Haworth
I D Cratchley
Secretary
A J Haworth
Company number
05423342
Registered office
Green Road
Penistone
Sheffield
S36 6PH
Auditor
BHP LLP
2 Rutland Park
Sheffield
S10 2PD
ABCO SEALS HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 26
ABCO SEALS HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

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

Review of the business

The principal activity of the Group continued to be the manufacture and supply of gaskets and seals, rubber mouldings and industrial felts.

 

The group comprises two trading companies:

 

Whitby & Chandler Ltd – established in 1923

Hardy & Hanson Ltd – established in 1949

 

Celebratory events to mark the 100 year and 75 year respective anniversaries of Whitby & Chandler Ltd and Hardy & Hanson Ltd were enjoyed by all staff members during the year – the directors acknowledge the dedicated, loyal and long serving workforce of both companies.

 

The group operates from a single fully owned site in Penistone, South Yorkshire – the site area is just under two acres in size and there remains potential for further industrial building development.

 

Strategies for the business are aligned to see continued and future growth in both turnover and profitability and accordingly the group actively seeks to grow its sales via an assortment of recognised procedures:

 

 

Turnover for the year increased by 4.4% and overall gross profit levels were increased by 7.6% reflecting an improvement of one percentage point in gross margin.

 

Full and flexible budgetary controls ensure that indirect costs are anticipated - any significant expenditure diversifications are reported and reviewed on a regular basis.

Principal risks and uncertainties

There continue to be many areas both globally and nationally which - give cause for concern, are predominantly outside the control of the group and may give rise to a destabilizing situation – of note are:

 

The group monitors other areas of risk which might impact on future business performance – such areas covered include:-

ABCO SEALS HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Development and performance

Strategic Plans (3 and 5 years) and review thereof on a bi-annual basis.

The group benefits from a strong cash position, is debt free and fully owns all its fixed assets.

The group serves many and varied markets and has a truly worldwide presence.

Both group companies have an enviable reputation within the market they operate.

On behalf of the board

G M Haworth
Director
31 October 2024
ABCO SEALS HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

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

Principal activities

The principal activity of the group continued to be that of the manufacture of rubber mouldings, sealing materials, components and technical felt.

Results and dividends

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

Ordinary dividends were paid amounting to £200,000. The directors do not recommend payment of a further dividend.

Directors

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

G M Haworth
I D Cratchley
Auditor

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

Statement of directors' responsibilities

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

 

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

ABCO SEALS HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
On behalf of the board
G M Haworth
Director
31 October 2024
ABCO SEALS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ABCO SEALS HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Abco Seals Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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

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

ABCO SEALS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ABCO SEALS HOLDINGS LIMITED
- 7 -

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

 

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

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

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Terri Pierpoint (Senior Statutory Auditor)
For and on behalf of BHP LLP
31 October 2024
Chartered Accountants
Statutory Auditor
2 Rutland Park
Sheffield
S10 2PD
ABCO SEALS HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
6,507,891
6,233,899
Cost of sales
(4,306,341)
(4,188,734)
Gross profit
2,201,550
2,045,165
Distribution costs
(90,917)
(86,994)
Administrative expenses
(1,740,977)
(1,527,122)
Other operating income
22,066
19,322
Operating profit
4
391,722
450,371
Interest receivable and similar income
8
34,235
11,760
Profit before taxation
425,957
462,131
Tax on profit
9
(114,674)
(56,639)
Profit for the financial year
311,283
405,492
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

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

ABCO SEALS HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
746,689
757,754
Investment property
13
613,545
613,545
1,360,234
1,371,299
Current assets
Stocks
16
940,807
1,079,668
Debtors
17
2,079,292
1,771,295
Cash at bank and in hand
1,286,554
1,304,326
4,306,653
4,155,289
Creditors: amounts falling due within one year
18
(1,191,556)
(1,163,679)
Net current assets
3,115,097
2,991,610
Total assets less current liabilities
4,475,331
4,362,909
Provisions for liabilities
Deferred tax liability
19
56,000
54,000
(56,000)
(54,000)
Government grants
20
(5,165)
(6,026)
Net assets
4,414,166
4,302,883
Capital and reserves
Called up share capital
22
80,000
80,000
Share premium account
50,276
50,276
Capital redemption reserve
16,000
16,000
Profit and loss reserves
4,267,890
4,156,607
Total equity
4,414,166
4,302,883

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

The financial statements were approved by the board of directors and authorised for issue on 31 October 2024 and are signed on its behalf by:
31 October 2024
G M Haworth
Director
Company registration number 05423342 (England and Wales)
ABCO SEALS HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
14
1,513,206
1,513,206
Current assets
-
-
Creditors: amounts falling due within one year
18
(995,465)
(995,465)
Net current liabilities
(995,465)
(995,465)
Net assets
517,741
517,741
Capital and reserves
Called up share capital
22
80,000
80,000
Share premium account
50,276
50,276
Capital redemption reserve
16,000
16,000
Profit and loss reserves
371,465
371,465
Total equity
517,741
517,741

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £200,000 (2023 - £200,000 profit).

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

The financial statements were approved by the board of directors and authorised for issue on 31 October 2024 and are signed on its behalf by:
31 October 2024
G M Haworth
Director
Company registration number 05423342 (England and Wales)
ABCO SEALS HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 July 2022
80,000
50,276
16,000
3,951,115
4,097,391
Year ended 30 June 2023:
Profit and total comprehensive income
-
-
-
405,492
405,492
Dividends
10
-
-
-
(200,000)
(200,000)
Balance at 30 June 2023
80,000
50,276
16,000
4,156,607
4,302,883
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
-
311,283
311,283
Dividends
10
-
-
-
(200,000)
(200,000)
Balance at 30 June 2024
80,000
50,276
16,000
4,267,890
4,414,166
ABCO SEALS HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 July 2022
80,000
50,276
16,000
371,465
517,741
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
-
-
200,000
200,000
Dividends
10
-
-
-
(200,000)
(200,000)
Balance at 30 June 2023
80,000
50,276
16,000
371,465
517,741
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
-
200,000
200,000
Dividends
10
-
-
-
(200,000)
(200,000)
Balance at 30 June 2024
80,000
50,276
16,000
371,465
517,741
ABCO SEALS HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
314,681
502,920
Income taxes paid
(28,370)
(71,225)
Net cash inflow from operating activities
286,311
431,695
Investing activities
Purchase of tangible fixed assets
(176,270)
(291,471)
Proceeds from disposal of tangible fixed assets
37,952
5,567
Interest received
34,235
11,760
Net cash used in investing activities
(104,083)
(274,144)
Financing activities
Dividends paid to equity shareholders
(200,000)
(200,000)
Net cash used in financing activities
(200,000)
(200,000)
Net decrease in cash and cash equivalents
(17,772)
(42,449)
Cash and cash equivalents at beginning of year
1,304,326
1,346,775
Cash and cash equivalents at end of year
1,286,554
1,304,326
ABCO SEALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
1
Accounting policies
Company information

Abco Seals Holdings Limited (“the company”) is a limited company domiciled and incorporated in England and Wales. The registered office is Green Road, Penistone, Sheffield, S36 6PH.

 

The group consists of Abco Seals Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.

1.3
Basis of consolidation

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

 

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

 

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

ABCO SEALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
Turnover

Turnover represents amounts derived from ordinary activities and is stated net of value added tax.

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

1.6
Intangible fixed assets - goodwill

Acquired goodwill is written off in equal annual instalments over its estimated useful economic life. Negative goodwill on business combinations is recognised in the P&L in the year of acquisition.

1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings - freehold
4% straight line
Plant and machinery
10% straight line
Fixtures, fittings & equipment
20% straight line
Motor vehicles
30% 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 recognised in the profit and loss account.

1.8
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.9
Fixed asset investments

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

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

ABCO SEALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -

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

 

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

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

1.12
Cash and cash equivalents

Cash and cash equivalents 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.

1.13
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

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

ABCO SEALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

Derecognition of financial liabilities

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

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

ABCO SEALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -
Deferred tax

Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.

1.15
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.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Leases

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.18
Government grants

Grants are credited to deferred revenue. Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets. Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred.

1.19
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

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

Property valuations

The investment property is held at fair value in the financial statements. The properties have not been formally valued since they were purchased in 2016 and 2021. In the years since purchase the directors have performed interim assessments as to whether the fair value remains appropriate. In performing interim assessments of fair value, the directors are applying their judgements as to the underlying market conditions and factors that impact fair value of similar properties in the region.

ABCO SEALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
3
Turnover and other revenue

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

2024
2023
£
£
Turnover analysed by class of business
Turnover
6,507,891
6,233,899
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
4,900,426
4,909,105
Rest of World
1,607,465
1,324,794
6,507,891
6,233,899
2024
2023
£
£
Other revenue
Interest income
34,235
11,760
Grants received
861
861
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(861)
(861)
Depreciation of owned tangible fixed assets
157,146
151,642
Profit on disposal of tangible fixed assets
(7,763)
(3,965)
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
1,313
1,250
Audit of the financial statements of the company's subsidiaries
19,666
18,015
20,979
19,265
For other services
Taxation compliance services
2,998
2,855
Other taxation services
1,208
1,150
4,206
4,005
ABCO SEALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Production
29
30
-
-
Sales
4
4
-
-
Admin
17
17
-
-
Total
50
51
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,503,056
1,441,839
-
0
-
0
Social security costs
135,443
104,123
-
-
Pension costs
94,482
129,966
-
0
-
0
1,732,981
1,675,928
-
0
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
416,559
337,136
Company pension contributions to defined contribution schemes
26,607
24,395
443,166
361,531
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
203,668
176,647
Company pension contributions to defined contribution schemes
14,092
13,615
ABCO SEALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
33,868
11,512
Other interest income
367
248
Total income
34,235
11,760
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
113,620
75,577
Adjustments in respect of prior periods
(946)
(46,038)
Total current tax
112,674
29,539
Deferred tax
Origination and reversal of timing differences
2,000
27,100
Total tax charge
114,674
56,639

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
425,957
462,131
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
106,489
94,737
Tax effect of expenses that are not deductible in determining taxable profit
1,176
(474)
Adjustments in respect of prior years
(946)
(46,038)
Permanent capital allowances in excess of depreciation
7,796
3,441
Deferred tax adjustments in respect of prior years
-
0
(13)
Remeasurement of deferred tax for changes in tax rates
-
0
11,645
Change in unrecognised deferred tax
159
(6,659)
Taxation charge
114,674
56,639
ABCO SEALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
200,000
200,000
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 July 2023 and 30 June 2024
(201,766)
Amortisation and impairment
At 1 July 2023 and 30 June 2024
(201,766)
Carrying amount
At 30 June 2024
-
0
At 30 June 2023
-
0
The company had no intangible fixed assets at 30 June 2024 or 30 June 2023.
12
Tangible fixed assets
Group
Land and buildings - freehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2023
1,102,127
1,360,288
509,466
289,034
3,260,915
Additions
-
0
60,117
7,153
109,000
176,270
Disposals
-
0
-
0
-
0
(74,757)
(74,757)
At 30 June 2024
1,102,127
1,420,405
516,619
323,277
3,362,428
Depreciation and impairment
At 1 July 2023
720,138
1,275,916
405,788
101,319
2,503,161
Depreciation charged in the year
34,675
28,587
29,508
64,376
157,146
Eliminated in respect of disposals
-
0
-
0
-
0
(44,568)
(44,568)
At 30 June 2024
754,813
1,304,503
435,296
121,127
2,615,739
Carrying amount
At 30 June 2024
347,314
115,902
81,323
202,150
746,689
At 30 June 2023
381,989
84,372
103,678
187,715
757,754
The company had no tangible fixed assets at 30 June 2024 or 30 June 2023.
ABCO SEALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
13
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 July 2023 and 30 June 2024
613,545
-

Investment property totalling £309,440 was purchased on 31 August 2016 and property totalling £304,105 was purchased on 26 November 2021. The directors believe that the total cost represents the current market value of the properties at 30 June 2024.

14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
1,513,206
1,513,206
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2023 and 30 June 2024
1,513,206
Carrying amount
At 30 June 2024
1,513,206
At 30 June 2023
1,513,206
15
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Abco Seals Limited
Green Road, Penistone, South Yorkshire, S36 6PH
Ordinary
100.00
-
Hardy & Hanson Limited
As above
Ordinary
0
100.00
Rubber Components (Stalybridge) Limited
As above
Ordinary
0
100.00
Trent Technical & Engineering Services Limited
As above
Ordinary
0
100.00
Whitby & Chandler Limited
As above
Ordinary
0
100.00
ABCO SEALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
940,807
1,079,668
-
-
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,667,317
1,392,636
-
0
-
0
Corporation tax recoverable
-
0
21,354
-
0
-
0
Other debtors
352,626
352,629
-
0
-
0
Prepayments and accrued income
59,349
4,676
-
0
-
0
2,079,292
1,771,295
-
-
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
874,862
985,977
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
995,465
995,465
Corporation tax payable
113,253
50,303
-
0
-
0
Other taxation and social security
203,441
127,399
-
-
1,191,556
1,163,679
995,465
995,465
19
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
56,000
54,000
The company has no deferred tax assets or liabilities.
ABCO SEALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
19
Deferred taxation
(Continued)
- 25 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 July 2023
54,000
-
Charge to profit or loss
2,000
-
Liability at 30 June 2024
56,000
-
20
Government grants
Group
Company
2024
2023
2024
2023
£
£
£
£
Arising from government grants
5,165
6,026
-
-

Government grants brought forward at 1 July 2023 were £6,026. £861 was released to the profit and loss account in the year to leave a balance carried forward of £5,165.

21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
94,482
129,966

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

22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
80,000
80,000
80,000
80,000

All Ordinary shares have full rights to vote and to participate in a distribution, including on a winding up of the company.

23
Financial commitments, guarantees and contingent liabilities

As far as the directors are aware there are no contingent liabilities unprovided for in these accounts except as indicated below:-

 

There is an inter-company composite guarantee in place between the group companies Whitby & Chandler Limited and Hardy & Hanson Limited in respect of the group overdraft facility.

ABCO SEALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 26 -
24
Related party transactions

The company has taken advantage of the exemption in FRS 102 paragraph 33.11 from the requirement to disclose transactions with group companies on the grounds that significant influence is held by the ultimate parent company of the group companies.

25
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
311,283
405,492
Adjustments for:
Taxation charged
114,674
56,639
Investment income
(34,235)
(11,760)
Gain on disposal of tangible fixed assets
(7,763)
(3,965)
Depreciation and impairment of tangible fixed assets
157,146
151,642
Decrease in deferred income
(861)
(860)
Movements in working capital:
Decrease in stocks
138,861
47,602
Increase in debtors
(329,351)
(34,789)
Decrease in creditors
(35,073)
(107,081)
Cash generated from operations
314,681
502,920
26
Analysis of changes in net funds - group
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
1,304,326
(17,772)
1,286,554
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