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Registered number: 15023642













          Accrofab Holdings Limited
          Annual Report and Financial Statements
          For the Period Ended 31 March 2024















           img4122.png

 
Accrofab Holdings Limited
 
 
Company Information


Directors
E J Ashworth 
R W Harrison 
S A Ward 




Registered number
15023642



Registered office
Unit 11 Stoney Gate Road
Spondon

Derby

England

DE21 7RX




Independent auditors
Dains Audit Limited

2 Chamberlain Square

Paradise Circus

Birmingham

B3 3AX





 
Accrofab Holdings Limited
 

Contents



Page
Group Strategic Report
1 - 2
Directors' Report
3 - 6
Independent Auditors' Report
7 - 10
Consolidated Profit and Loss Account
11
Consolidated Balance Sheet
12 - 13
Company Balance Sheet
14
Consolidated Statement of Changes in Equity
15
Company Statement of Changes in Equity
16
Notes to the Financial Statements
17 - 37


 
Accrofab Holdings Limited
 
 
Group Strategic Report
For the Period Ended 31 March 2024

Introduction
 
The Directors present the strategic report for the 8 months period ended 31 March 2024.

Business review
 
The principal activity of the Company in the year was that of a holding Company. The company was estabilished during the year and set up Accrofab Investments Limited which acquired Accrofab (Derby) Limited and Accrofab (Alcester) Limited as subsidiaries.  The main trading entities in the Group are Accrofab (Derby) Limited and Accrofab (Alcester) Limited and the principal activity of the trading companies during the period was the manufacture and sale of precision engineered components, delivering trusted performance and quality to our customers in the aerospace, defence and industrial power sectors..  The subsidiaries have generated exceptionally robust revenue during the period.

Future Development

Our business operates with a well-defined strategy, underpinned by clear goals and objectives that have been fully endorsed by the Board of Directors. This strategic framework provides clear direction for the Group ensuring that all initiatives align with our long-term vision and operational priorities. Regular reviews of progress against these objectives is conducted to maintain alignment with market conditions and stakeholder expectations. The Board’s oversight ensures that our strategy remains robust, adaptable, and focused on delivering sustainable growth and value for all stakeholders.
Supplier performance will remain a key differentiator as our customers look to increase build rates over the coming years and therefore believe that the Group is in a good financial position as steady growth continues. With careful focus on the right new customers and products, and continued recovery in the aerospace sector, we are confident the Group will maintain and build on the current position.
To underpin the Groups plan for sustainable growth and enhanced business efficiency, the Group’s ERP system is being assessed for potential upgrade. A modern, fully integrated system will provide real-time insights to drive the business forward and enhance the customer experience.
Delivering trusted performance and quality to our customers is a critical part of our vision. Our people are pivotal to achieving this, investment in our employees remains a key objective for the business. Training and continual professional development are core to everything we do.
Further capital investment in new machinery and infrastructure will add new capabilities and increase capacity, ultimately helping us to exceed customer expectations. Almost all manufacturing processes are executed in-house helping the business to maintain quality and agility.
In May 2024, the Accrofab Group acquired RTI Advanced Forming Limited (RTI) from Howmet Aerospace to expand and complement the Group’s position on single-aisle aircraft and diversify the customer base across both engine and structural precision engineered components. 

Page 1

 
Accrofab Holdings Limited
 

Group Strategic Report (continued)
For the Period Ended 31 March 2024

Principal risks and uncertainties
 
The Group's performance is reliant on the continuing trading operations of its subsidiaries, the risk of which are carefully managed within the subsidiaries. The Directors are taking a balanced and steady approach to expansion into new markets. The Directors also see the expansion of new customer relationships as a reduction in the risk of revenue concentration.
In response to the growing threat of cyber-attacks, the Risk and Audit Committee recognised the critical need to enhance the company’s cybersecurity framework. After a thorough risk assessment, the Committee determined that the rapidly evolving nature of cyber threats posed a significant risk to business continuity and operational resilience. As a result, leading industry experts in cybersecurity were engaged to assess current vulnerabilities and implement advanced protective measures. This proactive engagement ensures that the company remains at the forefront of cybersecurity standards, safeguarding sensitive data, proprietary technology, and critical infrastructure against potential breaches. Accrofab has embedded well established best practices achieving Cyber Essentials Plus certification.
Economic volatility and uncertainty remain a risk. Price inflation is stabilising due to ongoing central banking policies, but supply-chain challenges in sourcing essential commodities remains a risk. Where possible, commercial terms cater for this to ensure the business is not penalised for circumstances beyond its control. 
The majority of commercial contracts are transacted in GBP creating a natural hedge against fluctuations in foreign currency exchange rates. If a foreign currency is mandated, Accrofab works with the supply-chain to cascade the risk where possible, or specialist advisors to implement risk mitigation strategies. 

Financial key performance indicators
 
The Operations Director constantly monitors the financial performance of the business and management accounts are presented to the Board on a monthly basis. The key indicators are as follows:
Gross sales                                           £16,263,979
Adjusted Operating EBITDA                 £2,471,935
Operating EBITDA %                                         15%
The overall order book remains stable, and the Board believes that investment in new plant and machinery and facilities
will strengthen the company’s ability to increase market share. 
Accredited with ISO9001, AS9100, ISO14001, NADCAP and Cyber Essentials Plus.


This report was approved by the board on 3 December 2024 and signed on its behalf.



___________________________
E J Ashworth
Director

Page 2

 
Accrofab Holdings Limited
 
 
Directors' Report
For the Period Ended 31 March 2024

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

Principal activity

The principal activity of the Company in the period was that of a holding Company. The principal activity of the Group is the manufacture and sale of precision engineered components, delivering trusted performance and quality to customers in the aerospace, defence and industrial power sectors.

Results and dividends

The loss for the period, after taxation, amounted to £205,272.

No ordinary dividends were paid. The directors do not recommend payment of a final dividends.

Directors

The directors who served during the period were:

E J Ashworth (appointed 24 July 2023)
R W Harrison (appointed 24 July 2023)
S A Ward (appointed 13 March 2024)

Matters covered in the Group Strategic Report

The following disclosures as required by S414C(11) have been elevated in the Strategic Report:
- Principal risks and uncertainties
- Future developments

Page 3

 
Accrofab Holdings Limited
 
 
Directors' Report (continued)
For the Period Ended 31 March 2024

Going concern

The Financial Statements have been prepared on a going concern basis. In adopting this basis, the Directors have considered the Group’s business activities, principal risks and uncertainties, exposure to macroeconomic conditions, financial position, liquidity and borrowing facilities. The Directors have also prepared a 12 months forecast from the date of approval of these financial statements. The Directors believe that the Group’s prospects are positive in the medium and long term.
Accrofab maintains a policy of careful cash flow management and the business continues to have the full support of the bank and investors and is considered a low risk. The principal hazard for the short to medium term relates to inflation and labour issues in the wider economy which are likely to impact on the recovery of the airline and power generation industries. It is anticipated though that revenue will continue to strengthen in FY2025, with pre-COVID demand returning.  
The Group has been capitalised primarily by the Enact Fund III and Management Team. Cynergy Bank provide an asset-based lending facility too. 
The trading companies in the Group will continue to have sufficient funds, through funding from its principal funder, Endless LLP, to meet its liabilities as they fall due.
Endless LLP has confirmed the available funding facility available to the Group to enable it to meet its debts as they fall due to repayment for a period of at least 12 months from the date of these financial statements. The Group has committed facilities from its principal funder, which the directors consider sufficient to service its ongoing working capital and capital investment requirements.
In conclusion, the Accrofab Group is well-positioned to capitalise on the opportunities presented by the evolving aerospace and industrial power industry landscape. By staying true to our core values of Respect, Integrity, Safety and Excellence, we are confident that we will continue to deliver sustainable growth and create long-term value for all our stakeholders.

Page 4

 
Accrofab Holdings Limited
 
 
Directors' Report (continued)
For the Period Ended 31 March 2024

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

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

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

In May 2024, the Accrofab Group acquired RTI Advanced Forming Limited (RTI) from Howmet Aerospace to expand and complement the Group’s position on single-aisle aircraft and diversify the customer base across both engine and structural precision engineered components. There have been no other significant events affecting the Company since the period end.

Page 5

 
Accrofab Holdings Limited
 
 
Directors' Report (continued)
For the Period Ended 31 March 2024


Auditors

The auditorsDains Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 3 December 2024 and signed on its behalf.
 





___________________________
E J Ashworth
Director

Page 6

 
Accrofab Holdings Limited
 
 
Independent Auditors' Report to the Members of Accrofab Holdings Limited

Opinion


We have audited the financial statements of Accrofab Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the period ended 31 March 2024, which comprise the Consolidated profit and loss account, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of changes in equity, the Company statement of changes in equity, the Consolidated statement of cash flows  and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 March 2024 and of the Group's profit for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 or the 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.


Page 7

 
Accrofab Holdings Limited
 
 
Independent Auditors' Report to the Members of Accrofab Holdings Limited (continued)

Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group Strategic Report and the Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.


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


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Page 8

 
Accrofab Holdings Limited
 
 
Independent Auditors' Report to the Members of Accrofab Holdings Limited (continued)

Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 5, 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 Group's and 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Auditors' 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 Auditors' 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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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:
-   the senior statutory auditor ensured that the engagement team collectively had the appropriate competence, 
    capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
-   we identified the laws and regulations applicable to the Company through discussions with directors and other 
    management, and from our commercial knowledge and experience of the manufacturing sector;
-   we focused on specific laws and regulations which we considered may have a direct material effect on the financial 
    statements or the operations of the Company, including the financial reporting legislation,Companies Act 2006, 
    taxation legislation, anti-bribery, employment, and environmental and health and safety legislation;
-  we assessed the extent of compliance with the laws and regulations identified above through making enquiries of 
    management and inspecting legal correspondence; and
i- dentified laws and regulations were communicated within the audit team regularly and the team remained alert to 
    instances of non-compliance throughout the audit.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
-  making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of 
    actual, suspected and alleged fraud; and
-  considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.


 
Page 9

 
Accrofab Holdings Limited
 
 
Independent Auditors' Report to the Members of Accrofab Holdings Limited (continued)

Auditors' responsibilities for the audit of the financial statements (continued)
To address the risk of fraud through management bias and override of controls, we:
-  performed analytical procedures to identify any unusual or unexpected relationships;
-  tested journal entries to identify unusual transactions;
-  assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 3 were 
   indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
-  agreeing financial statement disclosures to underlying supporting documentation;
-  reading the minutes of meetings of those charged with governance;
-  enquiring of management as to actual and potential litigation and claims; and
-  reviewing correspondence with HMRC, relevant regulators and the Company’s legal advisors.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 2006Our 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 Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Mark Gurney FCCA (Senior Statutory Auditor)
  
for and on behalf of
Dains Audit Limited
 
Statutory Auditor
Chartered Accountants
  
Birmingham

3 December 2024
Page 10

 
Accrofab Holdings Limited
 
 
Consolidated Profit and Loss Account
For the Period Ended 31 March 2024

2024
Note
£

  

Turnover
 4 
16,263,979

Cost of sales
  
(8,492,547)

Gross profit
  
7,771,432

Distribution costs
  
(36,806)

Administrative expenses
  
(6,486,801)

Operating profit
 5 
1,247,825

Interest payable and similar expenses
 9 
(776,211)

Profit before tax
  
471,614

Tax on profit
 10 
(676,886)

Loss for the financial period
  
(205,272)

Loss for the period attributable to:
  

Owners of the parent
  
(205,272)

  
(205,272)

The notes on pages 17 to 37 form part of these financial statements.

Page 11

 
Accrofab Holdings Limited
Registered number:15023642

Consolidated Balance Sheet
As at 31 March 2024

31 March
2024
Note
£

Fixed assets
  

Intangible assets
 12 
(241,464)

Tangible assets
 13 
2,180,247

  
1,938,783

Current assets
  

Stocks
 15 
4,705,428

Debtors: amounts falling due within one year
 16 
5,801,130

Cash at bank and in hand
 17 
307,917

  
10,814,475

Creditors: amounts falling due within one year
 18 
(3,988,385)

Net current assets
  
 
 
6,826,090

Total assets less current liabilities
  
8,764,873

Creditors: amounts falling due after more than one year
 19 
(8,802,145)

Provisions for liabilities
  

Deferred tax
 21 
(166,000)

Net liabilities
  
(203,272)


Capital and reserves
  

Called up share capital 
 22 
2,000

Profit and loss account
  
(205,272)

Shareholders' deficit
  
(203,272)


Page 12

 
Accrofab Holdings Limited
Registered number:15023642
    
Consolidated Balance Sheet (continued)
As at 31 March 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 3 December 2024.




___________________________
E J Ashworth
Director

The notes on pages 17 to 37 form part of these financial statements.

Page 13

 
Accrofab Holdings Limited
Registered number:15023642

Company Balance Sheet
As at 31 March 2024

31 March
2024
Note
£

Fixed assets
  

Investments
 14 
1

Current assets
  

Debtors: amounts falling due within one year
 16 
2,000

  
2,000

Creditors: amounts falling due within one year
 18 
(1)

Net current assets
  
 
 
1,999

  

  

Net assets
  
2,000


Capital and reserves
  

Called up share capital 
 22 
2,000

  
2,000


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 3 December 2024.


___________________________
E J Ashworth
Director

The notes on pages 17 to 37 form part of these financial statements.

Page 14

 
Accrofab Holdings Limited
 

Consolidated Statement of Changes in Equity
For the Period Ended 31 March 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


Comprehensive income for the period

Loss for the period
-
(205,272)
(205,272)
Total comprehensive income for the period
-
(205,272)
(205,272)


Contributions by and distributions to owners

Shares issued during the period
2,000
-
2,000


Total transactions with owners
2,000
-
2,000


At 31 March 2024
2,000
(205,272)
(203,272)


The notes on pages 17 to 37 form part of these financial statements.

Page 15

 
Accrofab Holdings Limited
 

Company Statement of Changes in Equity
For the Period Ended 31 March 2024


Called up share capital
Total equity

£
£


Comprehensive income for the year

Profit for the period
-
-


Total comprehensive income for the period
-
-


Contributions by and distributions to owners

Shares issued during the period
2,000
2,000


Total transactions with owners
2,000
2,000


At 31 March 2024
2,000
2,000


The notes on pages 17 to 37 form part of these financial statements.

Page 16

 
Accrofab Holdings Limited
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

1.


General information

Accrofab Holdings Limited is a private company limited by shares, incorporated in the United Kingdom and registered in England and Wales under the Companies Act. The address of the registered office is given in the Company information section. The nature of the Company's operation and its principal activities are set out in the Strategic and the Directors' Report. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and Loss Account in these financial statements.

The following principal accounting policies have been applied:

  
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Profit and Loss Account from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 17

 
Accrofab Holdings Limited
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

2.Accounting policies (continued)

 
2.3

Going concern

The Financial Statements have been prepared on a going concern basis. In adopting this basis, the Directors have considered the Group’s business activities, principal risks and uncertainties, exposure to macroeconomic conditions, financial position, liquidity and borrowing facilities. The Directors have also prepared a 12 months forecast from the date of approval of these financial statements. The Directors believe that the Group’s prospects are positive in the medium and long term.
Accrofab maintains a policy of careful cash flow management and the business continues to have the full support of the bank and investors and is considered a low risk. The principal hazard for the short to medium term relates to inflation and labour issues in the wider economy which are likely to impact on the recovery of the airline and power generation industries. It is anticipated though that revenue will continue to strengthen in FY2025, with pre-COVID demand returning.
The Group has been capitalised primarily by the Enact Fund III and Management Team. Cynergy Bank provide an asset-based lending facility too.
The Group will continue to have sufficient funds, through funding from its principal funder, Endless LLP, to meet its liabilities as they fall due, as the Group was in a net liabilities position at 31 March 2024.
Endless LLP has confirmed the available funding facility available to the Group to enable it to meet its debts as they fall due to repayment for a period of at least 12 months from the date of these financial statements. Endless LLP has the ability to be able to continue to support the Group, with levels of committed facilities, which the directors consider sufficient to service its ongoing working capital and capital investment requirements

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP and the financial statements are rounded to the nearest £.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Page 18

 
Accrofab Holdings Limited
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

2.Accounting policies (continued)

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the period in which they are incurred.

 
2.9

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 19

 
Accrofab Holdings Limited
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.11

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Profit and Loss Account over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical 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.

Page 20

 
Accrofab Holdings Limited
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

2.Accounting policies (continued)


2.12
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
20%
Straight line
Plant and machinery
-
10%
Straight line
Motor vehicles
-
25%
Straight line
Fixtures and fittings
-
10%
Straight line
Computer equipment
-
25%
Straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.14

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.15

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.16

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Page 21

 
Accrofab Holdings Limited
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

2.Accounting policies (continued)

 
2.17

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.18

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Page 22

 
Accrofab Holdings Limited
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

2.Accounting policies (continued)

 
2.19

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Investments in non-derivative instruments that are equity to the issuer are measured:
at fair value with changes recognised in the Consolidated Profit and Loss Account if the shares are publicly traded or their fair value can otherwise be measured reliably;
at cost less impairment for all other investments.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Profit and Loss Account.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

Page 23

 
Accrofab Holdings Limited
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.
Tangible Fixed Assets
Tangible fixed assets are depreciated over their useful lives taking into account residual values  where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing the asset lives, factors such as product life cycles and maintenance programmes are taken into account. Residual values consider such things as future market conditions, the remaining life of the asset and projected disposal values, and plans to dispose of an asset before the previouslyexpected date.
Impairment of Goodwill
When considering any impairment of goodwill or investments, the directors' use impairment models with detailed cash flow forecasts to determine the value in use of the assets. The impairment testing involves significant judgements as to whether the estimated future cash flows can support the carrying value of the asset.

Valuation of investments

When considering an impairment of investments, the directors' use impairment models with detailed cash flow forecasts to determine the value in use of the assets. The impairment testing involves significant judgements as to whether the estimated future cash flows can support the carrying value of the asset.

Page 24

 
Accrofab Holdings Limited
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


2024
£

Sale of goods
16,127,201

Tooling income
25,630

Scrap income
111,148

16,263,979


Analysis of turnover by country of destination:

2024
£

United Kingdom
7,070,967

Rest of Europe
7,502,266

Rest of the world
1,690,746

16,263,979



5.


Operating profit

The operating profit is stated after charging:

2024
£

Exchange differences
(39,333)

Other operating lease rentals
155,825

Depreciation of tangible fixed assets
327,511

Amortisation of intangible assets
2,853

Page 25

 
Accrofab Holdings Limited
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

6.


Auditors' remuneration

2024
£


Fees payable to the Group's auditor for the audit of the Group's annual financial statements
28,000


Fees payable to the Group's auditor and its associates in respect of:


Taxation compliance services
6,500

6,500


7.


Employees

Group
31 March
2024
£
Wages and salaries

6,508,383

Social security costs

661,598

Cost of defined contribution scheme

184,095

7,354,076


The average monthly number of employees, including the directors, during the period was as 241.
 

Page 26

 
Accrofab Holdings Limited
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

8.


Directors' remuneration

2024
£

Directors' emoluments
200,872

Group contributions to defined contribution pension schemes
8,146

Other benefits in kind
3,812

212,830


During the period retirement benefits were accruing to 2 directors  in respect of defined contribution pension schemes.

The highest paid director received remuneration of £129,435 .

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £7,376 .


9.


Interest payable and similar expenses

2024
£


Interest on other loans
683,193

Interest payable on bank loan
93,018

776,211

Page 27

 
Accrofab Holdings Limited
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

10.


Taxation


2024
£

Corporation tax


Current tax on profits for the year
510,886


Total current tax
510,886

Deferred tax


Origination and reversal of timing differences
166,000

Total deferred tax
166,000


Tax on profit
676,886
Page 28

 
Accrofab Holdings Limited
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024
 
10.Taxation (continued)


Factors affecting tax charge for the period

The tax assessed for the period is higher than the effective rate of corporation tax in the UK of 23.51%. The differences are explained below:

2024
£


Profit before tax
471,614


Profit multiplied by effective rate of corporation tax in the UK of 23.51%
110,876

Effects of:


Expenses not deductible for tax purposes
551,300

Fixed asset differences
(9,804)

Tax credits
18,259

Other tax adjustments, reliefs and transfers
(1,634)

Remeasurement of deferred tax for changes in tax rates
7,895

Measurement of deferred tax not recognised
(6)

Total tax charge for the period
676,886


Factors that may affect future tax charges

In the Spring Budget 2021, the government announced that from 1 April 2023 the headline corporation tax rate will increase to 25%. The proposal to increase the rate to 25% had been substantively enacted at the company’s balance sheet date, therefore its effects have been included in these financial statements.
Page 29

 
Accrofab Holdings Limited
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

11.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and Loss Account in these financial statements. The profit after tax of the parent Company for the period was £Nil.


12.


Intangible assets

Group and Company





Computer software
Goodwill
Total

£
£
£



Cost


At 24 July 2023
-
-
-


Additions
39,843
(315,102)
(275,259)


Disposals
(15,800)
-
(15,800)


On acquisition of trade and assets
162,386
-
162,386



At 31 March 2024
186,429
(315,102)
(128,673)



Amortisation


At 24 July 2023
-
-
-


Charge for the period on owned assets
13,259
(10,406)
2,853


On disposals
(15,800)
-
(15,800)


Amortisation on acquisition of trade and assets
125,738
-
125,738



At 31 March 2024
123,197
(10,406)
112,791



Net book value



At 31 March 2024
63,232
(304,696)
(241,464)



Page 30

 
Accrofab Holdings Limited
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

13.


Tangible fixed assets

Group








Freehold property
Plant and machinery
Motor vehicles
Storage unit, furniture and equipment
Computer equipment
Other fixed assets
Total

£
£
£
£
£
£
£



Cost or valuation


At 24 July 2023
-
-
-
-
-
-
-


Additions
4,771
302,494
8,575
16,173
20,574
49,956
402,543


On acquisition of
trade and assets
214,645
5,884,263
22,828
190,145
80,544
-
6,392,425


Disposals
-
(38,176)
-
-
(13,602)
-
(51,778)



At 31 March 2024

219,416
6,148,581
31,403
206,318
87,516
49,956
6,743,190



Depreciation


At 24 July 2023
-
-
-
-
-
-
-


Charge for the period on owned assets
13,177
298,007
1,443
9,911
4,973
-
327,511


Depreciation on acquisition of trade and assets
156,915
3,944,563
22,100
90,044
73,588
-
4,287,210


Disposals
-
(38,176)
-
-
(13,602)
-
(51,778)



At 31 March 2024

170,092
4,204,394
23,543
99,955
64,959
-
4,562,943



Net book value



At 31 March 2024
49,324
1,944,187
7,860
106,363
22,557
49,956
2,180,247

Page 31

 
Accrofab Holdings Limited
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

14.


Fixed asset investments

Company








Investments in subsidiary companies

£



Cost 


Additions
1



At 31 March 2024
1





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Accrofab Investments Limited
Unit 11 Stoney Gate Road,
Derby, DE21 7RX
Ordinary
shares
100%
Accrofab (Derby) Limited
Unit 11 Stoney Gate Road,
Derby, DE21 7RX
Ordinary
shares
100%
Accrofab (Alcester) Limited
Unit 9 Kinwarton Farm Road, Arden Forest Ind Est., Alcester, B49 6EH
Ordinary
shares
100%

The aggregate of the share capital and reserves as at 31 March 2024 and the profit or loss for the period ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Accrofab Investments Limited
1
-

Accrofab (Derby) Limited
(516,117)
(517,117)

Accrofab (Alcester) Limited
312,845
311,845

Page 32

 
Accrofab Holdings Limited
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

15.


Stocks

Group
31 March
2024
£

Raw materials and consumables
633,223

Work in progress
2,126,452

Finished goods and goods for resale
1,945,753

4,705,428


There is no significant difference between the replacement cost of raw materials, work in progress and finished goods and their carrying value amounts.


16.


Debtors

Group
31 March
Company
31 March
2024
2024
£
£


Trade debtors
5,217,700
-

Other debtors
142,923
-

Amount owed by group undertaking
-
2,000

Prepayments and accrued income
440,507
-

5,801,130
2,000


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


17.


Cash and cash equivalents

Group
31 March
2024
£

Cash at bank and in hand
307,917

Less: bank overdrafts
(283,461)

24,456


Page 33

 
Accrofab Holdings Limited
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

18.


Creditors: Amounts falling due within one year

Group
31 March
Company
31 March
2024
2024
£
£

Bank overdrafts
283,461
-

Bank loans
168,837
-

Trade creditors
816,380
-

Invoice discounting facility
578,960
-

Amounts owed to group companies
-
1

Corporation tax
510,886
-

Other taxation and social security
365,688
-

Other creditors
140,574
-

Accruals and deferred income
1,123,599
-

3,988,385
1


The invoice discounting facility is interest bearing at a rate of 4.5% above the Bank of England base rate.

Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
 
Bank loans are secured, carrying interest at a rate of 4.5% above the Bank of England base rate and repayable in 60 equal montly payments.
The bank overdraft is unsecured, interest bearing at a rate of 2.25% above the Bank of England base rate with no fixed repayment date and are repayable on demand with a notice period of 6 months.

Page 34

 
Accrofab Holdings Limited
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

19.


Creditors: Amounts falling due after more than one year

Group
31 March
2024
£

Loan notes
6,098,000

Bank loans
504,092

Amounts owed to Enact III (GP) LP
1,600,000

Other creditors
600,053

8,802,145


Loan notes amounting to £6,098,000 and amounts owed to group undertakings which comprises of a revolving loan for £1,600,000, are unsecured. Loan notes incur interest at a rate of 4.5% above the Bank of England base rate and revolving loan carries interest at 8% per annum plus the base rate of Bank of England from time to time. Both facilities are repayable on the earlier of the fifth anniversary of the date when the loans were issued i.e 31 July 2023 or on the completion of exit.
 
Bank loans are secured, carrying interest at a rate of 4.5% above the Bank of England base rate and repayable
in 60 equal montly payments



20.


Loans

Analysis of the maturity of loans is given below:


Group
31 March
2024
£

Amounts falling due within one year

Bank loans
168,837


Amounts falling due 2-5 years

Bank loans
504,092

Loan Notes
6,098,000


6,770,929


Page 35

 
Accrofab Holdings Limited
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

21.


Deferred taxation


Group



2024


£






At beginning of year
-


Charged to profit or loss
(166,000)



At end of year
(166,000)

The deferred taxation balance is made up as follows:

Group
31 March
2024
£

Fixed asset timing differences
(167,000)

Short term timing differences
1,000

(166,000)


22.


Share capital

31 March
2024
£
Allotted, called up and fully paid


2,000 Ordinary shares of £1.00 each
2,000



23.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £190,956. Contributions totalling £67,295  were payable to the fund at the balance sheet date and are included in creditors.

Page 36

 
Accrofab Holdings Limited
 
 
Notes to the Financial Statements
For the Period Ended 31 March 2024

24.


Commitments under operating leases

At 31 March 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
31 March
2024
£

Not later than 1 year
28,470

Later than 1 year and not later than 5 years
60,265

88,735

25.


Related party transactions

At 30 June 2024, the amount due to the Group from companies under common control is £2,000.


26.


Post balance sheet events

In May 2024, the Accrofab Group acquired RTI Advanced Forming Limited (RTI) from Howmet Aerospace to expand and complement the Group’s position on single-aisle aircraft and diversify the customer base across both engine and structural precision engineered components. There have been no other significant events affecting the Company since the period end. 


27.


Controlling party

At 31 March 2024, the Directors considered the ultimate controlling party to be Enact III (GP) LP.

Page 37