Company registration number 05435846 (England and Wales)
Tritech Group Limited
Annual report and Financial Statements
For the year ended 31 March 2024
Tritech Group Limited
Company information
Directors
Mr A F Neterwala
Mr F D Neterwala
Mr S J Goodier
Secretary
Mr Paul White
Company number
05435846
Registered office
Bridge Road North
Wrexham Industrial Estate
Wrexham
Clwyd
Wales
LL13 9PS
Auditor
DJH Audit Limited
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Tritech Group Limited
Contents
Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 10
Income statement
11
Group statement of comprehensive income
12
Group statement of financial position
13
Company statement of financial position
14
Group statement of changes in equity
15
Company statement of changes in equity
16
Group statement of cash flows
17
Notes to the financial statements
18 - 38
Tritech Group Limited
Strategic report
For the year ended 31 March 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

 

The Tritech group business was founded in 1982 as a centre of excellence for providing investment casting products and services. Ultimate ownership of the group headed by Neterson Holdings Limited is with Chemical and Ferro Alloys Private Limited which is part of the Neterwala group of companies. The origins of the group in investment casting still dominate activities, but continuous later developments, which included new acquisitions, new applications and process improvements, have seen the business go from strength to strength.

 

The financial measures used by the Group is set out below:

The financial review provides a summary of how Tritech Group Limited “the Group” has performed during the year and provides additional information to that contained within the financial statements. The report also comments further on the group’s profitability and cash flow and the key performance measures that are used to manage the ongoing performance of the group.

Review of the business

The financial year ended 31 March 2024 saw continued growth of all of the strategic markets to which the company operates within.

 

The Group saw a significant increase in turnover to £39.0m (2023: £33.2m) in the year, a 17% increase on the prior year.

 

This growth is as a result of focused delivery on service and quality within existing contracts, the extension of capabilities and services, and the growing reputation of the Group to deliver on a range of complex new product development and the subsequent conversion to serial production.

 

The Group continues to develop new applications and opportunities for its core skills in the design,

development, and delivery of complex cast products and assemblies. Furthermore, the Group is focused on extending it’s offering by providing opportunities to new manufacturing locations in India through other Neterwala Group companies, bringing cost benefits associated with this.

 

Global increases in raw material costs, coupled with increased investment in employee costs reduced EBITDA to £1.9m (2023: £2.1m) and an increase in financing costs resulted in a Loss before tax of £0.17m (2023: profit £0.43m).

 

The Group and its Shareholders continue to invest in new technologies and equipment with the

development of a dedicated Engineering Research and Development Centre at the UK Group headquarters based in Wrexham, North Wales. This development centre is focused on delivering alternate solutions to complicated problems whilst providing a best in class product at a best in class cost.

 

The Group extended the Invoice Finance facilities to support growth, demonstrate a commitment by key

Stakeholders in the Group towards delivery of the longer-term goals and the vision of the Directors of the

Group.

 

The Group continues to enjoy a strong order book to further deliver Sales Growth and is active in several new opportunities with key customers in a range of markets including Aerospace and Defence, which ensure the growth continues throughout the coming years.

 

At the year end, the group’s net assets increased by £0.1m to £8.4m (2023: £8.3m).

 

Events affecting the group since the balance sheet date

There have been a number of changes to the Leadership team (including the Board of Directors) post 31 March 2024.

 

The Shareholders believe this restructure will bring renewed focus to the opportunities presented to the Group and ensure these opportunities are taken and the Group continues to grow in terms of turnover and underlying profitability.

 

Tritech Group Limited
Strategic report (continued)
For the year ended 31 March 2024
- 2 -
Principal risks and uncertainties

The group has a constant challenge to meet customer expectation and demand in constantly expanding markets with added risks and uncertainties generated by world events including the cost of living increases, and the conflict in Eastern Europe and the Middle East.

 

The Tritech group continues to benefit by being part of many long-term and growing programs with our valued long-term customers. It is important that the business is ready to absorb the growth. The expansion plans which started in 2016 (addition of adjacent new site for the Wrexham foundry and plans for expansion of the Wrexham machining facility) puts the business in a good position to deal with any uplift in business. Also, the wider group can 'share' business around the 4 foundries within the group (including the ultimate parent company's operation in India) with customer approval.

 

The business has good long-term visibility of customer orders (up to 18 months) and good intelligence of the various programs of work we are engaged upon. This enables early warning of capacity and manning level requirements and gives pre warning of any potential reductions to the order book so that corrective actions can be taken. The directors are confident that even with current market conditions and the impact of world events, that the current orderbook will support the revised sales expectations into March 2025 and beyond. New contracts continue to be secured which will lead to additional sales in future years.

Further development of the India casting supply chain will continue in the coming years and is planned to create capacity for the UK site to work on higher complexity product manufacturing.

 

Employment cost increases were made in 2023/24 in line with the increased headcount to support the Turnover growth and compliant with all UK Government guidelines. Following the post Covid-19 restructure, the Directors have continued to focus on the manning levels required to support the recovery and subsequent growth, with manning levels increasing because of this.

 

The main risks associated with the group’s financial assets and liabilities are set out below:

 

Interest rate risks

The group finances its operations through a mixture of retained profits and external borrowings. The external borrowings are at fixed rates above the Bank of England base rate.

 

Foreign currency risk

The group’s transactions are predominantly in Sterling, US Dollar and Euros. The group seeks to mitigate the effect of its structural currency exposure by purchasing in the same functional currency as it sells. The group does not hedge any currency exposure.

 

Cashflow risk

The group aims to mitigate cashflow risk by managing cash generated by its operations. Authorisation limits are in place for all types of expenditure.

 

Credit risk

The group’s objective is to reduce the risk of financial loss due to a customer's failure to honour its

obligations. All customers are subject to credit control procedures and each customer has an appropriate credit limit set. Where credit risk is perceived, payment must be made by letter of credit or payment in advance of sale/distribution.

 

Liquidity risk

Daily cashflows are forecast and monitored to ensure that the group remains within its available funding facilities. Revised trading and cashflow forecasts have been communicated to the bank and the directors consider the available and proposed facilities to be adequate.

Tritech Group Limited
Strategic report (continued)
For the year ended 31 March 2024
- 3 -
Development and performance

The long-term strategic vision for the group remains the creation of long-term value for our shareholders.

The Medium to long term aim of the Directors is to provide value from sales growth, profitability, cash generation and strong return on capital employed. These shared views drive decision making and behaviour in the group with the financial objectives aligned to this end and focused on five key objectives:

 

- Increasing revenue;

- Improving operating margins;

- Maximising return on capital employed;

- Maximising free cash flow:

- Focus on 'Right First Time' manufacturing.

Key performance indicators

The record of financial performance metrics is set out below:

 

2024         2023         2022          2021         2020

Sales Turnover          £39.0m         £33.2m     £27.1m     £26.3m        £37.0m

Gross Profit          £9.2m          £8.2m      £6.5m      £4.9m         £9.0m

EBITDA          £1.9m     £2.1m     £1.4m     £0.6m         £3.1m

EBITDA % of Sales 4.8%          6.3% 5.1%         2.3% 8.0%

(Loss)/profit before tax     (£0.17m) £0.43m (£0.28m) (£1.59m)     £0.98m

 

In the year ended 31 March 2024, group revenue increased by £5.8m, primarily driven by improvements in the Civil Aviation and the Defence markets. These markets continue to deliver further growth post year end and the forecast for 2024/25 onwards continues to be positive.

 

Loss before taxation for continuing operations was £0.2m compared to £0.4m (profit) in the prior year.

Other performance indicators

The group also uses non key performance indicators to manage its operations. The group monitors

employee numbers to track the number of staff required in the manufacturing process and the number of

administration staff required to support it.

Staff numbers are as follows:

 

2024         2023

Production             277         255

Selling and distribution          9          9

Office and management      86         82

Total                 372          346

 

Cash Flow

Working capital has been tightly controlled during the year. Trade Debtors increased in line with increased Turnover, as did Trade Creditors. Inventory also slightly increased in the second half of the year as Customer demand increased due to improvements in Company Sales Markets. Very low capital investment was made in the year with existing manufacturing capacity in place from prior year investment.

Coronavirus Business Interruption loans continue to be serviced during the year.

 

Debt

During the year the group level of total debt has increased due to an increase in the Confidential Invoice

Discounting factoring facilities, however Finance Lease repayments offset some of this increase. Trade

Creditors increased in line with purchases to support increased Sales and Inventory. The directors believe

that the level of debt in the group is manageable and serviceable.

 

 

Tritech Group Limited
Strategic report (continued)
For the year ended 31 March 2024
- 4 -
Section 172(1) statement

The directors welcome the opportunity to explain how they have had regard to matters set out in section

172(1), Companies Act 2006, considering factors (a) to (f):

 

(a) the likely consequences of any decision in the long term

The Board are cognisant of the changing environment in which we operate and meet regularly to review our performance and outlook. With this vision and values, we aim to maintain our position of the leading UK providers of our services and continually strive to deliver long term economic, social, and environmental value to our clients, our staff and all our stakeholders. At all Board Meetings the Board consider the present position of the group and how that impacts on the position of the group and all its stakeholders. At the monthly Board Meetings, the Board further reviews current strategy and seeks opportunities for safety, innovation, delivery, community, and continual improvement for the benefit of the Group and its stakeholders.

 

(b) the interests of the group’s employees

The management continues to ensure that the interests of the employees are considered when making operational decisions which may affect them. To ensure that decisions are taken with the interests of the employees in mind the management meet each month with representatives of the employees to discuss significant operational matters. This forum has helped improve relationships at all levels of the workforce. Health and Safety of all employees is of paramount importance and the company continues to enhance the health and safety culture within the business, throughout all our people.

(c) the need to foster the group’s business relationships with suppliers, customers, and others

The group continues to foster close relationships with key suppliers and customers of the business. The management has worked very hard over the last year or so to develop sound working practices with suppliers and customers and has focused on those suppliers and customers who demonstrate commitment to the relationship to ensure a quality product to the end user.

 

(d) the impact of the group’s operations on the community and the environment

The group has ongoing projects which review gas and electricity usage. We have a program of work in place to review energy consumption and loading across the manufacturing equipment. This involves monitoring each particular piece of equipment to understand energy loading. From data collected we have been able to reduce the equipment operating periods in line with reduced working periods. We are also planning our component loading to maximise the capacities of the equipment we use, by ensuring fully loaded runs take place wherever possible.

(e) the desirability of the group maintaining a reputation for high standards of business

conduct

The standard and quality of our product is critical in the Sales Markets within which we operate.

Management continually reviews the systems and procedures to ensure compliance with all quality and specification standards. The business has a process of internal monitoring of these standards which help ensure the quality and safety of product is maintained.

 

(f) the need to act fairly between members of the group

The company is wholly owned, and the ultimate shareholder body has regular oversight of the running of the business. All strategic decisions are taken following consultation with the shareholder body and so management can be seen to act fairly with all members of the company.

On behalf of the board

Mr S J Goodier
Director
21 October 2024
Tritech Group Limited
Directors' report
For the year ended 31 March 2024
- 5 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company and group continued to be that of the manufacture of precision investment castings.

Results and dividends

The results for the year are set out on page 11.

No ordinary dividends were paid. 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:

Mr I J Walker
(Resigned 31 May 2023)
Mr M Langford
(Resigned 20 October 2023)
Mr A F Neterwala
Mr F D Neterwala
Mr S E Goodfellow
(Resigned 6 June 2024)
Mr S J Goodier
Mr A R White
(Resigned 31 December 2023)
Mr C J Morris
(Appointed 2 October 2023 and resigned 21 May 2024)
Research and development

The group and its subsidiaries undertake research and development activities. The activities seek to achieve an advance in science or technology through the resolution of scientific or technical uncertainty.

 

Activities include, shelling process improvement, business management application process improvement, Exhaust duct cast development, casting process improvement and other development projects.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees and on the various factors affecting the performance of the group. This is achieved through formal and informal meetings. Employee representatives are consulted regularly on a wide range of matters affecting their current and future interests.

Energy and carbon report

The group has taken advantage of the available exemption not to disclose energy and carbon reporting in accordance with the Environmental Reporting Guidelines. This information is included in the group directors report of Neterson Holdings Limited.

Tritech Group Limited
Directors' report (continued)
For the year ended 31 March 2024
- 6 -
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.

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.true

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.

On behalf of the board
Mr S J Goodier
Director
21 October 2024
Tritech Group Limited
Independent auditor's report
To the members of Tritech Group Limited
- 7 -
Opinion

We have audited the financial statements of Tritech Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, 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.

Tritech Group Limited
Independent auditor's report (continued)
To the members of Tritech Group Limited
- 8 -

Opinions on other matters prescribed by the Companies Act 2006

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

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.

Tritech Group Limited
Independent auditor's report (continued)
To the members of Tritech Group Limited
- 9 -
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:

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.

Tritech Group Limited
Independent auditor's report (continued)
To the members of Tritech Group Limited
- 10 -

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.

Nicola Johnson (Senior Statutory Auditor)
For and on behalf of DJH Audit Limited
21 October 2024
Accountants
Statutory Auditor
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Tritech Group Limited
Group income statement
For the year ended 31 March 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
39,065,826
33,201,621
Cost of sales
(29,863,852)
(24,978,453)
Gross profit
9,201,974
8,223,168
Distribution costs
(466,202)
(415,090)
Administrative expenses
(7,982,192)
(6,874,927)
Other operating income
192,156
192,156
Operating profit
4
945,736
1,125,307
Interest payable and similar expenses
8
(1,113,969)
(691,037)
(Loss)/profit before taxation
(168,233)
434,270
Tax on (loss)/profit
9
221,082
(255,250)
Profit for the financial year
23
52,849
179,020
Profit for the financial year is all attributable to the owner of the parent company.
Tritech Group Limited
Group statement of comprehensive income
For the year ended 31 March 2024
- 12 -
2024
2023
£
£
Profit for the year
52,849
179,020
Other comprehensive income
-
-
Total comprehensive income for the year
52,849
179,020
Total comprehensive income for the year is all attributable to the owners of the parent company.
Tritech Group Limited
Group statement of financial position
As at 31 March 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
17,109
12,697
Tangible assets
11
4,757,461
5,313,795
4,774,570
5,326,492
Current assets
Stocks
14
14,723,235
14,354,737
Debtors
15
13,930,379
12,424,493
Cash at bank and in hand
90,539
65,453
28,744,153
26,844,683
Creditors: amounts falling due within one year
16
(24,197,933)
(22,591,511)
Net current assets
4,546,220
4,253,172
Total assets less current liabilities
9,320,790
9,579,664
Creditors: amounts falling due after more than one year
17
(128,099)
(372,329)
Provisions for liabilities
Deferred tax liability
20
765,227
832,720
(765,227)
(832,720)
Net assets
8,427,464
8,374,615
Capital and reserves
Called up share capital
22
5,764,076
5,764,076
Share premium account
23
124,000
124,000
Unrealised retained earnings
23
-
0
173,618
Profit and loss reserves
23
2,539,388
2,312,921
Total equity
8,427,464
8,374,615
The financial statements were approved by the board of directors and authorised for issue on 21 October 2024 and are signed on its behalf by:
21 October 2024
Mr S J Goodier
Director
Company registration number 05435846 (England and Wales)
Tritech Group Limited
Company statement of financial position
As at 31 March 2024
31 March 2024
- 14 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
12
9,735,000
9,735,000
Current assets
Debtors
15
1,981,615
1,981,615
Cash at bank and in hand
8,566
9,929
1,990,181
1,991,544
Creditors: amounts falling due within one year
16
(1,005,000)
(1,005,000)
Net current assets
985,181
986,544
Net assets
10,720,181
10,721,544
Capital and reserves
Called up share capital
22
5,764,076
5,764,076
Share premium account
23
124,000
124,000
Profit and loss reserves
23
4,832,105
4,833,468
Total equity
10,720,181
10,721,544

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £1,363 (2023 - £71 loss).

The financial statements were approved by the board of directors and authorised for issue on 21 October 2024 and are signed on its behalf by:
21 October 2024
Mr S J Goodier
Director
Company registration number 05435846 (England and Wales)
Tritech Group Limited
Group statement of changes in equity
For the year ended 31 March 2024
- 15 -
Share capital
Share premium account
Unrealised retained earnings
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 April 2022
5,764,076
124,000
361,669
1,945,850
8,195,595
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
-
179,020
179,020
Transfers
-
-
(188,051)
188,051
-
Balance at 31 March 2023
5,764,076
124,000
173,618
2,312,921
8,374,615
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
-
52,849
52,849
Transfers
-
-
(173,618)
173,618
-
Balance at 31 March 2024
5,764,076
124,000
-
0
2,539,388
8,427,464
Tritech Group Limited
Company statement of changes in equity
For the year ended 31 March 2024
- 16 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2022
5,764,076
124,000
4,833,539
10,721,615
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
-
(71)
(71)
Balance at 31 March 2023
5,764,076
124,000
4,833,468
10,721,544
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
(1,363)
(1,363)
Balance at 31 March 2024
5,764,076
124,000
4,832,105
10,720,181
Tritech Group Limited
Group statement of cash flows
For the year ended 31 March 2024
- 17 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
28
1,484,170
(1,257,468)
Income taxes refunded
153,589
-
0
Net cash inflow/(outflow) from operating activities
1,637,759
(1,257,468)
Investing activities
Purchase of intangible assets
(8,493)
-
Purchase of tangible fixed assets
(386,305)
(185,637)
Net cash used in investing activities
(394,798)
(185,637)
Financing activities
Proceeds from borrowings
-
300,000
Repayment of borrowings
(50,000)
(879,089)
Payment of finance leases obligations
(440,171)
(790,148)
Interest paid
(1,090,569)
(625,027)
Interest element of finance lease paid
(23,400)
(66,010)
Net cash used in financing activities
(1,604,140)
(2,060,274)
Net decrease in cash and cash equivalents
(361,179)
(3,503,379)
Cash and cash equivalents at beginning of year
(7,498,538)
(3,995,159)
Cash and cash equivalents at end of year
(7,859,717)
(7,498,538)
Relating to:
Cash at bank and in hand
90,539
65,453
Bank overdrafts included in creditors payable within one year
(7,950,256)
(7,563,991)
Tritech Group Limited
Notes to the group financial statements
For the year ended 31 March 2024
- 18 -
1
Accounting policies
Company information

Tritech Group Limited (“the company”) is a private company, limited by shares, domiciled and incorporated in England and Wales. The registered office is Bridge Road North, Wrexham Industrial Estate, Wrexham, Clwyd, Wales, LL13 9PS.

 

The group consists of Tritech Group 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. The principal accounting policies adopted are set out below.

The group has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

 

 

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:

 

 

The information is included in the consolidated financial statements of Neterson Holdings Limited and these financial statements may be obtained from Bridge Road North, Wrexham Industrial Estate, Wrexham, Clwyd, LL13 9PS.

Tritech Group Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 19 -
1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries are accounted for at cost less impairment.

 

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

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Tritech Group Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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

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

1.4
Going concern

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 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.

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:

Tritech Group Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 20 -
1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Software
4 - 10 years straight line

The directors have adopted this useful life as they believe that the majority of computer software has no value after this point.

1.8
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:

Leasehold improvements
10 - 25 years straight line
Plant and equipment
3 - 20 years straight line
Computers
3 - 5 years straight line
Motor vehicles
4 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

Tritech Group Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 21 -

Tangible fixed assets under the cost model are stated at historical cost (or deemed cost) less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. On transition to FRS 102 the group elected to revalue some of its plant and machinery and adopt this revaluation as deemed cost.

 

The group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

 

During the year, the group revised its estimation over the useful life of certain assets. For further information see the "Judgements and key sources of estimation uncertainty" note 2, to the financial statements.

1.9
Fixed asset investments

Equity investments are measured cost less impairment.

 

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).

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

Tritech Group Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 22 -
1.11
Stocks

Stocks include items purchased and exclude items sold, subject to reservation of title.

 

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete, slow moving or defective items. The cost of stock includes all expenditure in bringing stocks to their present location and condition, as follows:

    

        

 

Net realisable value is based on estimated selling price less further costs expected to be incurred to completion and disposal.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, amounts drawn down on an invoice finance facility and bank overdrafts. Amounts drawn down on invoice finance facility and bank overdrafts are shown within borrowings in current liabilities.

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 statement of financial position 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.

Tritech Group Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 23 -
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, bank loans 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
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.15
Taxation

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

Tritech Group Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 24 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.

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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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 income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
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.

1.17
Retirement benefits

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

1.18
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease.

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.

Tritech Group Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 25 -
1.20

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

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

In the directors' opinion there are no critical judgements, apart from those involving estimations (dealt with separately below), that they have been made aware in applying company's accounting policies and that have had a significant effect on the amounts recognised in the financial statements.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The estimated cost of individual stock items from their selling price

The group has adopted the retail method for valuing all work in progress and manufactured finished goods. This requires management to estimate the profit margin percentage used to reduce selling price to the estimated cost. This estimated profit margin percentage is based on the average results for the current and previous two years and is calculated as gross profit less an estimated portion of production overheads attributed to direct costs, as a percentage of turnover.

Stock provisions necessary for slow moving stock

The directors have estimated the provision required for stocks that have been manufactured, but currently have no orders allocated against them. A provision is made against finished goods that are not part of a kit, have no orders against them and have not moved in the last 12 months.

Stage of completion of work in progress

The directors estimate the stage of completion for products in work in progress, based on their expertise and knowledge of the production process. Different stages of production are documented and a percentage stage of completion applied depending on the part of the process that the product is currently in. Uncertainties in the stage of completion of work in progress relate to the actual amount of work completed on a product at the year end, compared to the estimated percentage stage of completion applied.

The economic useful life of tangible fixed assets

The directors review the useful economic lives of depreciable assets at each reporting date as to allocate the cost of assets, less their residual value, over their estimated useful lives. Uncertainties in these estimates relate to the actual life of the tangible fixed assets.

Tritech Group Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
- 26 -
3
Turnover and other revenue

The turnover and profit (2023: profit) before taxation are attributable to the one principal activity of the group.

2024
2023
£
£
Turnover analysed by geographical market
UK
24,922,942
23,461,489
Rest of Europe
11,568,830
7,852,603
Rest of the World
2,574,054
1,887,529
39,065,826
33,201,621
2024
2023
£
£
Other revenue
Management recharges
270,000
270,000
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Exchange losses
2,087
2,234
Depreciation of tangible fixed assets
941,430
943,682
Loss on disposal of tangible fixed assets
1,209
-
Amortisation of intangible assets
4,081
13,165
Operating lease charges
1,261,371
792,380
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
5,800
5,500
Audit of the financial statements of the company's subsidiaries
37,400
35,250
43,200
40,750
For other services
All other non-audit services
16,500
15,565
Tritech Group Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
- 27 -
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Production
277
255
-
-
Selling and distribution
9
9
-
-
Office and management
86
82
-
-
Total
372
346
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
12,626,288
10,849,521
-
0
-
0
Social security costs
1,299,671
1,119,701
-
-
Pension costs
346,959
301,555
-
0
-
0
14,272,918
12,270,777
-
0
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
687,003
693,260
Company pension contributions to defined contribution schemes
59,570
58,724
Compensation for loss of office
193,120
325,194
939,693
1,077,178

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 6 (2023 - 6).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
181,698
169,606
Company pension contributions to defined contribution schemes
15,313
12,077
Tritech Group Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
- 28 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
609,162
342,256
Interest payable to group undertakings
478,005
264,551
Interest on finance leases and hire purchase contracts
23,572
66,010
Other interest
3,230
18,220
Total finance costs
1,113,969
691,037
9
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
(153,589)
-
0
Deferred tax
Origination and reversal of timing differences
(67,493)
255,250
Total tax (credit)/charge
(221,082)
255,250

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
(Loss)/profit before taxation
(168,233)
434,270
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(42,058)
82,511
Tax effect of expenses that are not deductible in determining taxable profit
945
4,848
Adjustments in respect of prior years
(153,589)
-
0
Effect of change in corporation tax rate
-
61,259
Group relief
24,934
69,377
Depreciation on assets not qualifying for tax allowances
2,215
600
Deferred tax adjustments in respect of prior years
(64,661)
-
0
Enhanced capital allowances
-
0
(9,394)
Deferred tax over provided
11,132
46,049
Taxation (credit)/charge
(221,082)
255,250
Tritech Group Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
- 29 -
10
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 1 April 2023
3,350,479
218,300
3,568,779
Additions
-
0
8,493
8,493
At 31 March 2024
3,350,479
226,793
3,577,272
Amortisation and impairment
At 1 April 2023
3,350,479
205,603
3,556,082
Amortisation charged for the year
-
0
4,081
4,081
At 31 March 2024
3,350,479
209,684
3,560,163
Carrying amount
At 31 March 2024
-
0
17,109
17,109
At 31 March 2023
-
0
12,697
12,697
Company
Goodwill
£
Cost
At 1 April 2023 and 31 March 2024
3,280,000
Amortisation and impairment
At 1 April 2023 and 31 March 2024
3,280,000
Carrying amount
At 31 March 2024
-
0
At 31 March 2023
-
0
Tritech Group Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
- 30 -
11
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 April 2023
856,778
13,668,275
453,942
58,868
15,037,863
Additions
75,715
201,837
108,753
-
0
386,305
Disposals
-
0
(2,192)
-
0
-
0
(2,192)
At 31 March 2024
932,493
13,867,920
562,695
58,868
15,421,976
Depreciation and impairment
At 1 April 2023
632,321
8,675,785
357,094
58,868
9,724,068
Depreciation charged in the year
56,600
823,947
60,883
-
0
941,430
Eliminated in respect of disposals
-
0
(983)
-
0
-
0
(983)
At 31 March 2024
688,921
9,498,749
417,977
58,868
10,664,515
Carrying amount
At 31 March 2024
243,572
4,369,171
144,718
-
0
4,757,461
At 31 March 2023
224,457
4,992,490
96,848
-
0
5,313,795
The company had no tangible fixed assets at 31 March 2024 or 31 March 2023.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
1,011,740
1,566,753
-
0
-
0

On transition to FRS 102 the group elected to revalue some of its plant and machinery and adopt this valuation as deemed cost. If plant and machinery had not been revalued it would have been included at cost as follows:

Plant and equipment
2024
2023
£
£
Group
Cost
18,133,344
18,793,056
Accumulated depreciation
(13,927,128)
(13,759,714)
Carrying value
4,206,216
5,033,342
Tritech Group Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
- 31 -
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
9,735,000
9,735,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023 and 31 March 2024
9,735,000
Carrying amount
At 31 March 2024
9,735,000
At 31 March 2023
9,735,000
13
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
Tritech Precision Products Limited
1
Ordinary £1
100.00
-
Tritech Precision Products (Barnstaple) Limited
1
Ordinary £1
0
100.00

Registered office addresses (all UK unless otherwise indicated):

1
Bridge Road North, Wrexham Industrial Estate, Wrexham, Clywd, LL13 9PS
14
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
1,804,343
1,990,355
-
-
Work in progress
9,244,166
8,732,598
-
-
Finished goods and goods for resale
3,674,726
3,631,784
-
0
-
0
14,723,235
14,354,737
-
-
Tritech Group Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
14
Stocks
(Continued)
- 32 -

Inventories are stated after provisions for impairment of £682,295 (2023 - £999,589).

 

The total carrying amount of stock of £14,723,235 (2023 - £14,364,737) is pledged as security for the invoice financing facility and group company cross-guarantee.

 

Company

 

The company had no stocks at 31 March 2024 (2023 - £Nil).

15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
11,963,243
9,827,460
-
0
-
0
Amounts owed by group undertakings
850,705
1,794,707
1,981,615
1,981,615
Other debtors
190,898
154,450
-
0
-
0
Prepayments and accrued income
925,533
647,876
-
0
-
0
13,930,379
12,424,493
1,981,615
1,981,615

Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
18
7,950,256
7,563,991
-
0
-
0
Obligations under finance leases
19
264,169
460,110
-
0
-
0
Other borrowings
18
-
0
50,000
-
0
-
0
Trade creditors
5,181,469
4,103,785
-
0
-
0
Amounts owed to group undertakings
7,397,191
7,179,593
1,005,000
1,005,000
Other taxation and social security
664,725
922,854
-
-
Other creditors
570,123
493,048
-
0
-
0
Accruals and deferred income
2,170,000
1,818,130
-
0
-
0
24,197,933
22,591,511
1,005,000
1,005,000
Tritech Group Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
16
Creditors: amounts falling due within one year
(Continued)
- 33 -

Included within bank loans and overdrafts is an invoice finance facility of £7,932,978 (2023 - £7,563,991), which is secured by a legal mortgage and fixed and floating charges over all assets of the group via a group company cross-guarantee.

Obligations under finance leases and secured by the assets to which they relate. See "Finance Lease Obligations" for further information.

Other borrowings were secured by a fixed and floating charge over all assets of the company and a group guarantee. For further information see "Loans and Overdrafts".

Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are payable on demand.

17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
19
128,099
372,329
-
0
-
0

Obligations under finance leases and secured by the assets to which they relate. See "Finance Lease Obligations" for further information.

18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank overdrafts
7,950,256
7,563,991
-
0
-
0
Other loans
-
0
50,000
-
0
-
0
7,950,256
7,613,991
-
-
Payable within one year
7,950,256
7,613,991
-
0
-
0

The group's bank overdrafts are invoice financing facilities, secured by a legal mortgage and fixed and floating charges over all assets of the group, via a group company cross-guarantee.

 

Other loans were secured by a fixed and floating charge over all assets of the group and a group guarantee.

Tritech Group Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
- 34 -
19
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
264,169
460,110
-
0
-
0
In two to five years
128,099
372,329
-
0
-
0
392,268
832,439
-
-

Finance lease payments represent rentals payable by the group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

Obligations under finance leases and hire purchase contracts are secured by the assets to which they relate.

20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
771,303
838,460
Retirement benefit obligations
(6,076)
(5,740)
765,227
832,720
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 April 2023
832,720
-
Credit to profit or loss
(67,493)
-
Liability at 31 March 2024
765,227
-
Tritech Group Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
20
Deferred taxation
(Continued)
- 35 -

Accelerated capital allowances relate to timing differences on capital allowances. The amount expected to reverse in 2025 is £161,000.

 

Retirement benefit obligations relate to deferred tax on amounts owed to pension schemes. These assets are expected to reverse within 12 months.

 

21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
346,959
301,555

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.

Contributions totalling £87,947 (2023 - £93,148) were payable to the fund at the balance sheet date.

22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
5,764,076
5,764,076
5,764,076
5,764,076

There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.

23
Reserves
Share premium

Share premium was created on the issue of shares at amounts above the nominal value of the shares.

Unrealised retained earnings

Unrealised retained earnings is the increase on revaluation of some plant and machinery on transition to FRS 102. The transfer to retained earnings is the excess depreciation charge on the revalued assets, including a provision for any deferred tax.

Profit and loss reserves

The profit earned less any distributions made and transfer of unrealised retained earnings.

Tritech Group Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
- 36 -
24
Financial commitments, guarantees and contingent liabilities

Group

The group has charges over its assets, in the form of all assets debentures, as security for the borrowings of fellow group undertakings. At 31 March 2024 these borrowings amounted to £10,062,824 (2023 - £10,205,590). As at the date of approval of these financial statements the directors do not anticipate that the charges will be called upon.

 

Company

The company has charges over its assets, in the form of an all assets debenture, as security for the borrowings of fellow group undertakings. At 31 March 2024 these borrowings amounted to £17,995,802 (2023 - £17,819,581). As at the date of approval of these financial statements the directors do not anticipate that the charges will be called upon.

25
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
698,755
780,766
-
-
Between two and five years
1,700,583
1,595,020
-
-
In over five years
2,764,110
3,379,795
-
-
5,163,448
5,755,581
-
-
26
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Group
Entities with control, joint control or significant influence over the group
6,770
32,461
1,605,808
2,047,317
Management fees
2024
2023
£
£
Group
Entities with control, joint control or significant influence over the company
298,913
190,365
Tritech Group Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
26
Related party transactions
(Continued)
- 37 -

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£
£
Group
Entities with control, joint control or significant influence over the group
551,695
345,663

The amounts owed to the above are interest free with no fixed repayment terms.

27
Controlling party

The immediate parent company and parent company of the smallest group where group accounts are drawn up is Neterson Holdings Limited which is incorporated in the UK. Copies of the group accounts of Neterson Holdings Limited are available from Bridge Road North, Wrexham Industrial Estate, Wrexham, Clwyd, LL13 9PS.

 

The ultimate parent company and parent company of the largest group for which group accounts are drawn up is Chemical and Ferro Alloys Private Limited, a company incorporated in India. Copies of the group accounts of Chemical and Ferro Alloys Private Limited are available from Liberty Building, Sir Vithaldas Thackersey Marg, Mumbai, MH 400020 IN.

The ultimate controlling party is F.D.Neterwala due to his controlling interest in the company's ultimate holding company, Chemical & Ferro Alloys Private Limited.

28
Cash generated from/(absorbed by) group operations
2024
2023
£
£
Profit for the year after tax
52,849
179,020
Adjustments for:
Taxation (credited)/charged
(221,082)
255,250
Finance costs
1,113,969
691,037
Loss on disposal of tangible fixed assets
1,209
-
Amortisation and impairment of intangible assets
4,081
13,165
Depreciation and impairment of tangible fixed assets
941,430
943,682
Movements in working capital:
Increase in stocks
(368,498)
(2,786,562)
Increase in debtors
(1,505,886)
(2,625,977)
Increase in creditors
1,466,098
2,072,917
Cash generated from/(absorbed by) operations
1,484,170
(1,257,468)
Tritech Group Limited
Notes to the group financial statements (continued)
For the year ended 31 March 2024
- 38 -
29
Analysis of changes in net debt - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
65,453
25,086
90,539
Bank overdrafts
(7,563,991)
(386,265)
(7,950,256)
(7,498,538)
(361,179)
(7,859,717)
Borrowings excluding overdrafts
(50,000)
50,000
-
Obligations under finance leases
(832,439)
440,171
(392,268)
(8,380,977)
128,992
(8,251,985)
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