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COMPANY REGISTRATION NUMBER: 00534430
Beakbane Limited
Financial Statements
30 April 2024
Beakbane Limited
Financial Statements
Year ended 30 April 2024
Contents
Pages
Officers and professional advisers
1
Strategic report
2 to 3
Directors' report
4 to 5
Independent auditor's report to the members
6 to 9
Statement of comprehensive income
10
Statement of financial position
11 to 12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 to 29
Beakbane Limited
Officers and Professional Advisers
The board of directors
Mrs T W Williams
Mr M J Southwell
Company secretary
Mrs T W Williams
Registered office
Stourport Road
Kidderminster
Worcestershire
DY11 7QT
Auditor
BSN Associates Limited
Chartered Accountants & statutory auditor
3B Swallowfield Courtyard
Wolverhampton Road
Oldbury
West Midlands
B69 2JG
Beakbane Limited
Strategic Report
Year ended 30 April 2024
The directors present their strategic report together with the audited financial statements for the year ended 30 April 2024. Principal activity The principal activity of the company during the year is the manufacturing and sale of machinery protection systems. Review of the business The 2023/24 financial year has proved to be major year of change for Beakbane. It has seen the business make significant steps in pursuing its long term strategy, developing for the future and continuing to grow in a number of ways. Firstly in September 2023 we successfully completed the acquisition of Radshape Sheet Metal Ltd and created the Beakbane Precision Limited unit, adding to both our capability with stainless fabrication and precision machining, as well as extending our customer base going forward. Secondly, we continued to respond and deliver against strong demand, especially in the first half of the year. There was some fall-off in demand at all customers in the second half of the year which appears to be a general market adjustment, with evidence of some destocking, lower end-customer demand and reduced market confidence. Despite this softening of the market we continued to grow organically by over 9.8% and total sales improved to £10.2m in the year. Overall this has delivered a profit after interest and tax of £944k. Finally, in line with our long term strategic plan to develop our manufacturing capability, we have continued with the investment plans through the year. In our most challenging decision we made the commitment to relocate all our Kidderminster manufacturing activity into a single site. This move provides benefits in efficiency and creates space for future growth. It's a significant undertaking and we exit the year with it in progress and on schedule to be completed by Q4 2024. In parallel we have also completed the cyclical replacement program for all our steel fabrication capability with the installation of new combination laser-punch and 2 further press brakes. The balance sheet as presented on page 11 of the financial statements shows the company's financial position has strengthened again through the year. This is despite the pension liability increasing to £1,052k, which continues to demonstrate the turbulent nature of the FRS102 calculation as it is impacted by both investment values and bond yields. Despite the size of the pension scheme liability we remain committed to its resolution in the long term and continue to work with the Pension Trustees to to ensure it is supported appropriately. Future developments We fully expect that the next year will be dominated by the strength of demand from the market and any continued uncertainty in the general economy. Monitoring order intake and responding to demand fluctuations in both directions will be a key success factor. Internally the business remains focussed around its key work on integration of the Beakbane Precision business and completing the relocation of manufacturing at Kidderminster, both of which will lead to improved output and efficiency to across the business. In addition we will also look to grow and develop the Flexible and related product sales, both through incremental business development and product range growth. We will continue to pursue all avenues to increase margin, achieve sales stability, and manufacturing efficiency to bring this about, ensuring Beakbane remains strong and sustainable into the future. Key financial performance indicators The company's key financial performance indicators are turnover and profit before tax. Principal risks and uncertainties The market for our products remains highly competitive and over longer periods open to impact of the global economic capital equipment investment cycle. The company seeks to manage the risk of losing customers to key competitors by the continued strengthening of customer relationships, and retaining competitive advantage of its delivered product. After considering uncertainties resulting from the current economic environment, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For those reasons, we continue to adopt the going concern basis in preparing the annual report and financial statements.
This report was approved by the board of directors on 23 January 2025 and signed on behalf of the board by:
Mr M J Southwell
Director
Registered office:
Stourport Road
Kidderminster
Worcestershire
DY11 7QT
Beakbane Limited
Directors' Report
Year ended 30 April 2024
The directors present their report and the financial statements of the company for the year ended 30 April 2024 .
Directors
The directors who served the company during the year were as follows:
Mrs T W Williams
Mr M J Southwell
Dividends
The directors do not recommend the payment of a dividend.
Financial instruments
Financial instruments such as trade debtors and trade creditors arise directly from the company's operations. Operations and working capital requirements are principally funded out of retained profits and finance leases. The companys credit risk is primarily attributable to its trade debtors. Credit risk is managed by running credit checks on new customers and by monitoring payments against agreed terms. Currency risk is managed if considered necessary by forward contracts.
Disclosure of information in the strategic report
The companys strategic report is shown on page 2-3 of the financial statements.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 23 January 2025 and signed on behalf of the board by:
Mr M J Southwell
Director
Registered office:
Stourport Road
Kidderminster
Worcestershire
DY11 7QT
Beakbane Limited
Independent Auditor's Report to the Members of Beakbane Limited
Year ended 30 April 2024
Opinion
We have audited the financial statements of Beakbane Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 30 April 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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. 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. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We have reviewed financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations. We have audited the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business. We have also made enquiries of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
Hannah Justice FCA FCCA
(Senior Statutory Auditor)
For and on behalf of
BSN Associates Limited
Chartered Accountants & statutory auditor
3B Swallowfield Courtyard
Wolverhampton Road
Oldbury
West Midlands
B69 2JG
23 January 2025
Beakbane Limited
Statement of Comprehensive Income
Year ended 30 April 2024
2024
2023
Note
£
£
Turnover
4
10,238,898
9,352,069
Cost of sales
8,024,262
7,568,102
-------------
------------
Gross profit
2,214,636
1,783,967
Distribution costs
175,132
235,903
Administrative expenses
1,127,783
1,215,187
Other operating income
5
49,808
26,137
------------
------------
Operating profit
6
961,529
359,014
Interest receivable
10
2,699
356
Interest payable
11
114,674
118,523
------------
------------
Profit before taxation
849,554
240,847
Taxation on ordinary activities
12
( 94,833)
---------
---------
Profit for the financial year
944,387
240,847
---------
---------
Remeasurement of the net defined benefit plan
( 44,000)
772,000
Tax relating to components of other comprehensive income
13,000
( 204,500)
--------
---------
Other comprehensive income for the year
( 31,000)
567,500
---------
---------
Total comprehensive income for the year
913,387
808,347
---------
---------
All the activities of the company are from continuing operations.
Beakbane Limited
Statement of Financial Position
30 April 2024
2024
2023
Note
£
£
£
Fixed assets
Tangible assets
13
4,163,367
2,798,399
Investments
14
89,460
------------
------------
4,252,827
2,798,399
Current assets
Stocks
15
1,157,715
1,398,085
Debtors
16
1,961,063
1,522,678
Cash at bank and in hand
831,746
457,158
------------
------------
3,950,524
3,377,921
Creditors: amounts falling due within one year
17
2,568,992
2,015,019
------------
------------
Net current assets
1,381,532
1,362,902
------------
------------
Total assets less current liabilities
5,634,359
4,161,301
Creditors: amounts falling due after more than one year
18
1,416,097
800,593
Provisions
Taxation including deferred tax
20
( 357,833)
( 250,000)
------------
------------
Net assets excluding defined benefit pension plan liability
4,576,095
3,610,708
Defined benefit pension plan liability
22
( 1,052,000)
( 1,000,000)
------------
------------
Net assets including defined benefit pension plan liability
3,524,095
2,610,708
------------
------------
Capital and reserves
Called up share capital
25
95,000
95,000
Profit and loss account
26
3,429,095
2,515,708
------------
------------
Shareholders funds
3,524,095
2,610,708
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
Beakbane Limited
Statement of Financial Position (continued)
30 April 2024
These financial statements were approved by the board of directors and authorised for issue on 23 January 2025 , and are signed on behalf of the board by:
Mrs T W Williams
Director
Company registration number: 00534430
Beakbane Limited
Statement of Changes in Equity
Year ended 30 April 2024
Called up share capital
Profit and loss account
Total
£
£
£
At 1 May 2022
95,000
1,707,361
1,802,361
Profit for the year
240,847
240,847
Other comprehensive income for the year:
Remeasurement of the net defined benefit plan
22
772,000
772,000
Tax relating to components of other comprehensive income
12
( 204,500)
( 204,500)
--------
------------
------------
Total comprehensive income for the year
808,347
808,347
At 30 April 2023
95,000
2,515,708
2,610,708
Profit for the year
944,387
944,387
Other comprehensive income for the year:
Remeasurement of the net defined benefit plan
22
( 44,000)
( 44,000)
Tax relating to components of other comprehensive income
12
13,000
13,000
--------
------------
------------
Total comprehensive income for the year
913,387
913,387
--------
------------
------------
At 30 April 2024
95,000
3,429,095
3,524,095
--------
------------
------------
Beakbane Limited
Statement of Cash Flows
Year ended 30 April 2024
2024
2023
£
£
Cash flows from operating activities
Profit for the financial year
944,387
240,847
Adjustments for:
Depreciation of tangible assets
277,044
254,279
Government grant income
( 16,155)
( 20,770)
Interest receivable
( 2,699)
( 356)
Interest payable
114,674
118,523
Gains on disposal of tangible assets
( 256,719)
( 26,000)
Defined benefit pension plan employer contributions
( 146,000)
( 100,000)
Taxation on ordinary activities
( 94,833)
Net finance cost in respect of defined benefit scheme
48,000
54,000
Defined benefit expenses
106,000
Changes in:
Stocks
240,370
( 229,252)
Trade and other debtors
( 438,385)
( 153,153)
Trade and other creditors
278,073
( 55,643)
------------
---------
Cash generated from operations
1,053,757
82,475
Interest paid
( 114,674)
( 118,523)
Interest received
2,699
356
------------
---------
Net cash from/(used in) operating activities
941,782
( 35,692)
------------
---------
Cash flows from investing activities
Purchase of tangible assets
( 1,773,826)
( 176,425)
Proceeds from sale of tangible assets
388,533
26,000
Acquisition of subsidiaries
( 89,460)
------------
---------
Net cash used in investing activities
( 1,474,753)
( 150,425)
------------
---------
Cash flows from financing activities
Repayments of borrowings
( 159,896)
( 146,278)
Government grant income
16,155
20,770
Payments of finance lease liabilities
( 182,437)
( 146,755)
Proceeds from asset refinancing
1,233,737
231,236
------------
---------
Net cash from/(used in) financing activities
907,559
( 41,027)
------------
---------
Net increase/(decrease) in cash and cash equivalents
374,588
( 227,144)
Cash and cash equivalents at beginning of year
457,158
684,302
---------
---------
Cash and cash equivalents at end of year
831,746
457,158
---------
---------
Beakbane Limited
Notes to the Financial Statements
Year ended 30 April 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Stourport Road, Kidderminster, Worcestershire, DY11 7QT.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The policies on key estimates and judgements are shown below.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Long leasehold property
-
2% straight line
Plant and machinery
-
10% - 20% straight line
IT Equipment
-
20% - 50% straight line
Motor vehicles
-
25% straight line
Fixtures & fittings
-
20% - 50% straight line
Tooling
-
33 % straight line
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Investments in associates
Investments in associates accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in associates accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the associate arising before or after the date of acquisition.
Investments in joint ventures
Investments in jointly controlled entities accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in jointly controlled entities accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the joint venture arising before or after the date of acquisition.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined benefit plans
The company recognises a defined net benefit pension asset or liability in the statement of financial position as the net total of the present value of its obligations and the fair value of plan assets out of which the obligations are to be settled. The defined benefit liability is measured on a discounted present value basis using a rate determined by reference to market yields at the reporting date on high quality corporate bonds. Defined benefit obligations and the related expenses are measured using the projected unit credit method. Plan surpluses are recognised as a defined benefit asset only to the extent that the surplus is recoverable either through reduced contributions in the future or through refunds from the plan. Changes in the net defined benefit asset or liability arising from employee service are recognised in profit or loss as a current service cost where it relates to services in the current period and as a past service cost where it relates to services in prior periods. Costs relating to plan introductions, benefit changes, curtailments and settlements are recognised in profit or loss in the period in which they occur. Net interest is determined by multiplying the net defined benefit liability by the discount rate, both as determined at the start of the reporting period, taking account of any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. Net interest is recognised in profit or loss.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
Foreign currency
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Research and development
Research and development expenditure is written off in the year in which it is incurred.
4. Turnover
Turnover arises from:
2024
2023
£
£
Sale of goods
10,238,898
9,352,069
-------------
------------
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2024
2023
£
£
United Kingdom
5,949,832
5,925,302
Overseas
4,289,066
3,426,767
-------------
------------
10,238,898
9,352,069
-------------
------------
5. Other operating income
2024
2023
£
£
Government grant income
16,155
20,770
Other operating income
33,653
5,367
--------
--------
49,808
26,137
--------
--------
6. Operating profit
Operating profit or loss is stated after charging/crediting:
2024
2023
£
£
Depreciation of tangible assets
277,044
254,279
Gains on disposal of tangible assets
( 256,719)
( 26,000)
Impairment of trade debtors
(9,522)
6,691
Operating lease rentals
82,640
Defined contributions plan expense
105,042
94,945
---------
---------
7. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
10,815
11,000
--------
--------
8. Particulars of employees
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Production staff
99
98
Administrative staff
12
12
Sales staff
1
1
----
----
112
111
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
3,317,075
3,161,841
Social security costs
317,480
311,087
Other pension costs
105,042
94,726
------------
------------
3,739,597
3,567,654
------------
------------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
240,008
240,968
Company contributions to defined contribution pension plans
9,419
9,310
---------
---------
249,427
250,278
---------
---------
The number of directors who accrued benefits under company pension plans was as follows:
2024
2023
No.
No.
Defined contribution plans
1
1
----
----
Remuneration of the highest paid director in respect of qualifying services:
2024
2023
£
£
Aggregate remuneration
147,653
144,685
---------
---------
See directors transactions notes for details of amounts paid for directors services.
10. Interest receivable
2024
2023
£
£
Interest on cash and cash equivalents
2,699
356
-------
----
11. Interest payable
2024
2023
£
£
Interest on obligations under finance leases and hire purchase contracts
66,674
64,523
Net finance costs in respect of defined benefit pension plans
48,000
54,000
---------
---------
114,674
118,523
---------
---------
12. Taxation on ordinary activities
Major components of tax income
2024
2023
£
£
Deferred tax:
Origination and reversal of timing differences
( 94,833)
--------
----
Taxation on ordinary activities
( 94,833)
--------
----
Tax recognised as other comprehensive income or equity
The aggregate current and deferred tax relating to items recognised as other comprehensive income or equity for the year was £ (13,000)
(2023: £ 204,500 ).
Reconciliation of tax income
The tax assessed on the profit on ordinary activities for the year is lower than (2023: lower than) the standard rate of corporation tax in the UK of 19 % (2023: 19 %).
2024
2023
£
£
Profit on ordinary activities before taxation
849,554
240,847
---------
---------
Profit on ordinary activities by rate of tax
161,415
45,761
Effect of expenses not deductible for tax purposes
3,501
766
Effect of capital allowances and depreciation
10,984
2,305
Unused tax losses
( 193,127)
( 6,610)
Defined benefit scheme timing differences
(27,740)
(19,000)
Disposal of property
(44,033)
Impact of research and development
(5,833)
(23,222)
---------
---------
Tax on profit
( 94,833)
---------
---------
13. Tangible assets
Land and buildings
Plant and machinery
Fixtures, fittings and equipment
Motor vehicles
Tooling & Hand Tools
Total
£
£
£
£
£
£
Cost
At 1 May 2023
2,748,925
3,040,316
1,210,155
7,930
28,007
7,035,333
Additions
302,310
1,411,139
50,889
9,488
1,773,826
Disposals
( 231,526)
( 557,738)
( 12,352)
( 2,168)
( 803,784)
Transfers
(16,440)
(16,440)
------------
------------
------------
-------
--------
------------
At 30 Apr 2024
2,819,709
3,877,277
1,248,692
7,930
35,327
7,988,935
------------
------------
------------
-------
--------
------------
Depreciation
At 1 May 2023
1,114,215
2,085,340
1,020,204
6,444
10,731
4,236,934
Charge for the year
52,786
137,093
74,771
1,486
10,908
277,044
Disposals
( 103,245)
( 557,738)
( 10,024)
( 963)
( 671,970)
Transfers
(16,440)
(16,440)
------------
------------
------------
-------
--------
------------
At 30 Apr 2024
1,063,756
1,648,255
1,084,951
7,930
20,676
3,825,568
------------
------------
------------
-------
--------
------------
Carrying amount
At 30 Apr 2024
1,755,953
2,229,022
163,741
14,651
4,163,367
------------
------------
------------
-------
--------
------------
At 30 Apr 2023
1,634,710
954,976
189,951
1,486
17,276
2,798,399
------------
------------
------------
-------
--------
------------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Plant and machinery
£
At 30 April 2024
1,610,552
------------
At 30 April 2023
750,063
------------
Capital commitments
2024
2023
£
£
Contracted for but not provided for in the financial statements
67,275
----
--------
14. Investments
Shares in group undertakings
£
Cost
At 1 May 2023
Additions
89,460
--------
At 30 April 2024
89,460
--------
Impairment
At 1 May 2023 and 30 April 2024
--------
Carrying amount
At 30 April 2024
89,460
--------
At 30 April 2023
--------
Shares in group undertakings relate to the entire issued share capital of Beakbane Precision Limited, a company registered in England and Wales under the Companies Act 2006.
The aggregate of capital and reserves at the balance sheet date amounted to (£154,847) and the loss for the year amounted to £154,848.
15. Stocks
2024
2023
£
£
Raw materials
756,725
808,156
Work in progress
141,846
221,024
Finished goods
259,144
368,905
------------
------------
1,157,715
1,398,085
------------
------------
16. Debtors
2024
2023
£
£
Trade debtors
829,457
1,262,908
Amounts owed by group undertakings
645,240
80,960
Prepayments and accrued income
211,376
178,525
Other debtors
274,990
285
------------
------------
1,961,063
1,522,678
------------
------------
17. Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
108,252
157,223
Trade creditors
1,339,985
1,198,651
Accruals and deferred income
471,530
268,100
Social security and other taxes
95,562
114,064
Obligations under finance leases and hire purchase contracts
464,614
154,946
Other creditors
89,049
122,035
------------
------------
2,568,992
2,015,019
------------
------------
Bank loans are repayable by 2024 and are secured over the leasehold property to which it relates. Interest is charged at a rate of 2.14% above the base rate.
Hire purchase and finance lease liabilities are secured over the specific assets that they finance.
18. Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
108,393
219,318
Obligations under finance leases and hire purchase contracts
1,239,897
498,265
Accruals and deferred income
67,807
83,010
------------
---------
1,416,097
800,593
------------
---------
Bank loans are repayable by 2024 and are secured over the leasehold property to which it relates. Interest is charged at a rate of 2.14% above the base rate.
Hire purchase and finance lease liabilities are secured over the specific assets that they finance.
19. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2024
2023
£
£
Not later than 1 year
464,614
154,946
Later than 1 year and not later than 5 years
1,239,897
498,265
------------
---------
1,704,511
653,211
------------
---------
20. Provisions
Deferred tax (note 21)
£
At 1 May 2023
( 250,000)
Additions
( 107,833)
---------
At 30 April 2024
( 357,833)
---------
21. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 20)
( 357,833)
( 250,000)
---------
---------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
547,031
277,096
Unused tax losses
( 579,037)
( 219,278)
Provisions
( 62,827)
( 57,818)
Pension plan obligations
( 263,000)
( 250,000)
---------
---------
(357,833)
(250,000)
---------
---------
22. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 105,042 (2023: £ 94,726 ).
Defined benefit plans
The Beakbane Pension Scheme is a UK-based defined benefit scheme, providing benefits at retirement and on death in service. A full actuarial valuation of the defined benefit pension scheme was carried out at 5 April 2016 and updated at 30 April 2024 by a qualified independent actuary on an FRS102 basis. The present value of the defined benefit obligation, the related service cost and the past service cost were measured using the projected unit credit method. The scheme was closed to future accruals on 6 April 2010 and at that time all active members became deferred. Their pension will now be broadly linked to inflation, rather than salary increases and this resulted in a reduction in the liabilities.
The statement of financial position net defined benefit liability is determined as follows:
2024
2023
£
£
Present value of defined benefit obligations
( 8,172,000)
( 8,299,000)
Fair value of plan assets
7,120,000
7,299,000
------------
------------
( 1,052,000)
( 1,000,000)
------------
------------
Changes in the present value of the defined benefit obligations are as follows:
2024
£
At 1 May 2023
8,299,000
Interest expense
391,000
Benefits paid
(522,000)
Remeasurements:
Actuarial gains and losses
4,000
------------
At 30 April 2024
8,172,000
------------
Changes in the fair value of plan assets are as follows:
2024
£
At 1 May 2023
7,299,000
Benefits paid
( 522,000)
Contributions by employer
146,000
Expenses
(105,000)
Remeasurements:
Actuarial gains and losses
( 41,000)
Return on plan assets, excluding amount included in interest income
343,000
------------
At 30 April 2024
7,120,000
------------
The total costs for the year in relation to defined benefit plans are as follows:
2024
2023
£
£
Recognised in profit or loss:
Net interest income
( 48,000)
( 54,000)
--------
--------
Recognised in other comprehensive income:
Experience gains and losses on liabilities
(160,000)
(21,000)
Changes in assumptions
157,000
2,054,000
Remeasurement of the liability:
Return on plan assets, excluding amounts included in net interest
(41,000)
(1,261,000)
---------
------------
(44,000)
772,000
---------
------------
The company's best estimate of the contributions expected to be paid in the year beginning on the 1 May 2024 is £155,000. This is based on the schedule of contributions to be made by the entity to fund the deficit in the defined benefit plan.
The fair value of the major categories of plan assets are as follows:
2024
2023
%
%
Equity instruments
50.00
44.00
Property
1.00
2.00
Cash and cash equivalents
3.00
1.00
Bonds
28.00
35.00
Insured pensions
11.00
11.00
Alternatives
7.00
7.00
The net assets available for benefits are:
2024
2023
£
£
Equity Instruments
3,636,000
3,251,000
Property
97,000
125,000
Cash
181,000
96,000
Bonds
1,985,000
2,530,000
Insured pensions
740,000
793,000
Alternatives
481,000
504,000
------------
------------
Total of net assets available for benefits
7,120,000
7,299,000
------------
------------
Overall expected rate of return on plan assets is based upon historic returns of the investment performance adjusted to reflect expectation of future long term returns. The overall expected rate of return on plan assets is consistent with the discount rate.
The return on plan assets are as follows:
2024
2023
£
£
Return on assets of benefit plan
302
( 1,000)
----
-------
The principal actuarial assumptions as at the statement of financial position date were:
2024
2023
%
%
Discount rate
5.12
4.86
Inflation RPI - 20 years
3.41
3.20
Inflation CPI - 20 years
2.71
2.50
-----
-----
Mortality assumptions The mortality assumptions for the current and prior years follows the table known as S3PMA year of birth tables, with probabilities of death increased by 5% at each age, with CMI 2021 (2023: 2021) longevity improvement projections and a 0.5% long term rate of improvement. Using these tables the average and assumed expectation of life for a member currently aged 65 is as follows: Male: 21.2 years (2023: 21.2 years) Female: 23.5 years (2023: 23.5 years) The average expectation of life for a member aged 65 in 20 years' time is as follows: Male: 21.6 years (2023: 21.6 years) Female: 24.1 years (2023: 24.1 years)
23. Government grants
The amounts recognised in the financial statements for government grants are as follows:
2024
2023
£
£
Recognised in other operating income:
Government grants recognised directly in income
16,155
20,770
--------
--------
There are no unfulfilled conditions in relation to government grants. Grants relate to monies received towards capital expenditure and wages and salaries in the year.
24. Financial instruments
Financial assets measured at cost compromise cash at bank, trade and other debtors and amounted to £1,963,347 (2023 - £1,720,351). Financial liabilities measured at amortised cost compromise bank loans and overdrafts, trade creditors, obligations under finance leases and hire purchase contracts and other creditors and amounted to £3,349,778 (2023 - £2,350,438).
25. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
95,000
95,000
95,000
95,000
--------
--------
--------
--------
26. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
27. Post balance sheet events
After the balance sheet date, units 1,2,5,10 & 11 Oldington Trading Estate were sold to an unrelated third party.
28. Analysis of changes in net debt
At 1 May 2023
Cash flows
At 30 Apr 2024
£
£
£
Cash at bank and in hand
457,158
374,588
831,746
Debt due within one year
(312,169)
(260,697)
(572,866)
Debt due after one year
(717,583)
(630,707)
(1,348,290)
---------
---------
------------
( 572,594)
( 516,816)
( 1,089,410)
---------
---------
------------
29. Commitments under operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2024
2023
£
£
Not later than 1 year
194,439
29,644
Later than 1 year and not later than 5 years
1,068,777
66,394
Later than 5 years
4,945,619
1,338,952
------------
------------
6,208,835
1,434,990
------------
------------
30. Related party transactions
During the year the company received consultancy services totalling £40,000 (2023 - £Nil) from Realta Consulting Limited, a company in which an ultimate shareholder is a director.
Beakbane Limited
Notes to the Financial Statements (continued)
Year ended 30 April 2024
31. Controlling party
Southwill Holdings Limited, a Company incorporated in England and Wales, is the immediate controlling party of the company. The ultimate parent company is Corpcapital Limited, a company registered in England and Wales. Consolidated accounts and the business address can be obtained from companies house. There is no one ultimate controlling party.