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Registered number: 00980487










GRAINGER & WORRALL LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2024

 
GRAINGER & WORRALL LIMITED
 
 
COMPANY INFORMATION


Directors
A J S Burn (appointed 21 January 2025, resigned 5 February 2024)
I Johnson (resigned 21 January 2025)
D S Eldridge (appointed 5 February 2024)




Registered number
00980487



Registered office
Building 7
Stanmore Industrial Estate

Bridgnorth

Shropshire

WV15 5HP




Independent auditors
WR Partners
Chartered Accountants & Statutory Auditors

Belmont House

Shrewsbury Business Park

Shrewsbury

Shropshire

SY2 6LG





 
GRAINGER & WORRALL LIMITED
 

CONTENTS



Page
Chairman and Chief Executive's Statement
 
1
Strategic report
 
2 - 11
Director's report
 
12 - 18
Director's responsibilities statement
 
19
Independent auditors' report
 
20 - 23
Statement of comprehensive income
 
24
Balance sheet
 
25 - 26
Statement of changes in equity
 
27
Statement of cash flows
 
28 - 29
Notes to the financial statements
 
30 - 51

 
GRAINGER & WORRALL LIMITED
 
 
 
CHAIRMAN AND CHIEF EXECUTIVE'S STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024

The Chairman and Chief Executive present their statement for the period.

We are delighted with the progress that the Business has made in 2024 following its acquisition by Evolution Casting Group Limited in 2023; on time delivery has been restored to all customers, quality performance has been transformed, productivity increased by circa 85%. The progress is also evident in our published accounts. Over the 12 months to 31 October 2024 the Group delivered EBITDA exceeding £7m. Operating Profit was £3.7m after £0.9m of restructuring expenses. During the period we invested £2.3m in Capital Equipment which has been significant factor in the operational turnaround and establishes capability for growth.

It has given the Board particular joy to provide all our employees with the opportunity to take an ownership stake in the business as Partners (through ECG Partner Share Scheme Limited). Initiatives to develop our Partners, improve safety and enhance sustainability are a critical part of our role as a responsible business in society. We have been pleased with the reaction from our customers and others to our first ESG report which was published in April 2024. We were delighted to receive the Institute for Turnaround mid-market “Turnaround of the Year” award in 2024.  

We pay tribute to our Partners, our customers and all those who have contributed to the transformation of the business. The stage is set for the business to reach its full potential and regain its position the world’s  pre-eminent  aluminium sand casting business for highly complex, challenging applications.    


NameD.S Eldridge
Chief Executive

Date29 January 2025
Page 1

 
GRAINGER & WORRALL LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024

Introduction
 
The directors present the results of the Company for the year ended 31 October 2024.

Business review
 
The Company is the main trading business of Evolution Castings Group Limited. The principal activity of the Company is that of being a leading provider of complex, high-quality aluminium casting solutions. It is a high-performance specialist engineering company that is involved with its customers from concept design through to production to ensure optimisation of the cast products’ performance. It uses robust manufacturing methods which optimise product and material performance, adding value to customers’ supply chains with a niche volume manufacturing offering.
  
Primarily the Company’s capabilities are engineering, complex sand-casting, giga casting, design for manufacturing, machining, material science and inspection & certification.  These capabilities provide prototype parts and low volume production (sub 20,000 castings per annum) for customers in the following markets: motorsport, automotive, aerospace, defence & infrastructure.
  
The Company operates in a global market with a brand customer base across Europe, Asia and North America.  Whilst historically the Company’s revenue has been predominantly in the UK and Europe this has widened in recent years to expanding its market share in North America and Asia. Whilst the Company does not specifically target certain geographies it has the capabilities to collaborate with any customer driving innovation, regardless of their location.  
 
Page 2

 
GRAINGER & WORRALL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024

Strategic vision
The strategic vision of the Company is:
“To support our customers world-wide, achieve success by helping them bring great ideas to life with outstanding engineering sand cast aluminium solutions.”
To support this vision, the Company has set several short- and medium-term goals, these being:
• To grow the Company successfully and profitably by optimising the engineering capabilities and     expertise;
• To instil the Company’s values and ensure that they are embraced by the workforce;
• To continue to value the Company’s workforce with a culture of continual improvement and learning    which is designed to empower and develop the workforce;
• To develop and implement a market leading ESG strategy and in doing so positively impact the     Company and the communities that it is part of;
• To grow revenue profitably to £100 million in the financial year ending 31 October 2027;
• To seek to expand the Company’s operations into the US either organically or by acquisition;
• To continue to maintain a strong presence in the automotive and motorsport sectors as a provider of    niche volume and low-rate initiate production components;
• To continue to serve prototyping markets, irrespective of sector and specifically in automotive;
• To maintain its position as a world leading provider of automotive giga castings; and
• To grow its market share in the aerospace, defence, marine and infrastructure sectors.
 
Page 3

 
GRAINGER & WORRALL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024

Key attributes
The successful performance of the Company is underpinned by:
• A market leading provider of high quality and complex engineering in aluminium castings with a     particular expertise in sand cast aluminium giga-structures. 
• Deep industry experience with the know-how to produce accurate and reliable solutions for customers    leveraging the Company’s ability to produce with market leading manufacturing tolerances and design-   for-manufacture competencies.
• A collaborative-orientated approach to design, feasibility and simulation delivered by a team of expert    engineers who work iteratively with blue-chip customers to develop robust manufacturing methods that    optimise structure properties before the first mould is poured.
• Operational expertise and scale of the production facilities meaning the Company has the largest     independently owned prototyping facility in the market space in which it operates.
• An innovative approach to materials science, leveraging in-house expertise coupled with external     partnerships allowing the Company to optimise the use of alloys within its components and products.       This is demonstrated by the development of proprietary aluminium alloys that allow for enhanced     performance and durability, particularly in developing areas such as hydrogen driven powertrains.
• Strong, well-established relationships with a large portfolio of sector leading global brands.
 
Page 4

 
GRAINGER & WORRALL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024


Financial key performance indicators
 
The Company has key performance indicators ("KPIs") as follows:
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Adjusted EBITDA is calculated as follows:
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Page 5

 
GRAINGER & WORRALL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024

Other key performance indicators
 
The Company uses a suite of targeted non-financial key performance indicators to monitor and measure performance on a daily, weekly and monthly basis which covers the whole business operating spectrum reflecting the changing needs of the Company. 

Principal risks and uncertainties
 
The principal risks facing the Company are summarised in the following table alongside mitigations identified and implemented:
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Page 6

 
GRAINGER & WORRALL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024

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Page 7

 
GRAINGER & WORRALL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024


Policies
During the period the Company undertook a comprehensive overhaul of its policies and procedures and continue to be reviewed regularly to ensure that they are up to date.
The key policies in place in the Company now include:
• Anti-bribery and corruption 
• Code of conduct
• Environmental, social and governance
• Equality, Diversity and inclusion 
• Fair pay and gender pay gap
• Gift and corporate hospitality 
• Human rights 
• Modern slavery 
• Privacy & data protection statement
• Safety, health and environmental 
• Security of employment and recruitment 
• Suppliers and third parties 
• Training and development
 
Page 8

 
GRAINGER & WORRALL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024


Review of the year
On 29 June 2023, the Company was acquired by Evolution Castings Group Limited. At the time of the transaction the business entered into a funding agreement with several key customers in the business who injected £12.9 million of funding into the Group. This funding was and continues to remain unsecured.
Prior to its acquisition, G&W significantly underperformed due to a combination of internal and external factors.
Most of these funds were used by the Group to support the restoration of the Company’s working capital profile and invest in much needed plant and equipment.
For the remainder of 2023 the Company undertook a very comprehensive and intensive turnaround, the results of which were reflected in the financial results of the Company in the financial year ending 31 October 2023.
  
The efforts of the Partners, management, stakeholders and advisers involved in the turnaround of G&W was recognised by the Institute for Turnaround (the “IFT”) and the business was awarded the mid-market turnaround of the year 2024. The focus of the Company and the stakeholders is now to optimise the resilience of the business.
In May 2023 the Company achieved a milestone of producing over 2,000 castings in one week and since then the Company has been focussed on driving productivity further. Productivity, defined as Series castings per head increased by circa 85 per cent. between 2023 and 2024.
  
Sadly as a result of the massive strides in productivity in the business and changes to reporting lines, it was necessary to reduce the size of the workforce in the summer of 2024. Whilst a difficult period for workforce, Management sought to be as sensitive and empathetic as possible in the period.
  
The result of all these operational changes has led to a leaner, more focussed team driving continuous improvement and with a relentless focus on quality. Consequently, the Company is fulfilling customer orders, particularly in prototyping from specifications to parts more efficiently than it has done in recent history.
    
In February 2024 G&W passed its annual IATF. Management believe that this reflects the relentless focus of the business on quality.
A commercial team was established in the United States of America in 2024 and a reset of the commercial team in Europe undertaken. A Company Chief Commercial Officer was also appointed in Q4 2024. As at the date of these accounts the Company’s pipeline of opportunities now exceeds £400 million.
As reported in these financial statements the adjusted EBITDA for the period is £7.3m (2023: £3.6m) on revenue of £63.5m (2023: £67.4m). This included operating profits of £3.7m (2023: £3.1m loss) after exceptional costs of £0.9m (2023: £4.9m). Total assets were £32.5m (2023: £37.9m), and total liabilities were £34.6m (2023: £40.3m).  At the year end the Company had net debt, excluding net intercompany debt, of £12.6m (2023: £12.1m).
Page 9

 
GRAINGER & WORRALL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024

Directors' statement of compliance with duty to promote the success of the Company
 
Under section 172(1) of the Companies Act 2006, the Directors of a company have a duty to promote the success of the Company for the benefit of its members, and in doing so have regard (amongst other matters) to:
• the likely consequences of any decision in the long-term;
• the interest of the Company’s Partners;
• the need to foster the Company’s business relationships with suppliers, customers, and others;
• the impact of the Company’s operations on the community and environment;
• the desirability of the company maintaining a reputation for high standards of business conduct; and
• the need to act fairly between members of the Company.
During the reporting period the directors believe that there were several key decisions taken, for all of which the Company’s stakeholders were considered.  These were:
• improving the involvement of the Company’s Partners, including but not limited to putting in place regular   briefings with the workforce, embedding new values in the Company forming Employee Community    Groups;
• increasing the contribution made to the communities in which the Company operates; 
• putting a greater focus on the environment, social and governance objectives of the Company and a reset   of the Company’s medium term objectives;
• proactively investing significant time in improving the relationships and level of transparency with all    stakeholders of the Company, internally and externally;
• creating a share scheme giving all eligible employees the ability to participate in the future success of the   Group;
• completing the intense turnaround of the business in 2024 and focussing on the resilience of the     Company;
• actively diversifying the focus of the business to increasingly create a balanced portfolio of customers    across the automotive, prototyping, giga casting, defence, aerospace, infrastructure and marine markets   worldwide; and
• the exit from producing iron castings and the transition to managing iron casting production contracts for    customers and the significant expansion of the Company’s giga casting capability that now enables the    business to produce in the region of 16 giga castings a week which is believed to be the one of the    largest, if not the largest capability globally.  

Page 10

 
GRAINGER & WORRALL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024


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





D S Eldridge
Director

Date: 30 January 2025
Page 11

 
GRAINGER & WORRALL LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024

The director presents his report and the financial statements for the year ended 31 October 2024.

Principal activity

The principal activity of the Company is that of being a leading provider of high-quality and complex aluminium casting solutions. It is a high-performance specialist engineering Company that is involved with its customers from concept design through to production to ensure optimisation of the cast products performance. It uses robust manufacturing methods which optimise product and material performance, adding value to customers’ supply chains with a niche volume manufacturing offering.  

Results and dividends

The profit for the year, after taxation, amounted to £542,538 (2023 - loss £3,877,956).

During the year the Company declared dividends totalling £Nil (2023: £93,130).
Since the acquisition of the G&W business the Company has, and will continue to maintain, a policy of there being no dividends, preferring to reinvest its profits into the business and in reduced the indebtedness of the business.
   
Accordingly, the profit before exceptional items and taxation amounted to £3,916,337 (2023: £682,159).

Directors

The directors who served during the year were:

A J S Burn (appointed 21 January 2025, resigned 5 February 2024)
I Johnson (resigned 21 January 2025)
D S Eldridge (appointed 5 February 2024)

Future developments

In 2024, Management undertook a comprehensive review the business and its market focus.
The result of this review was confirmation that the Company was well placed to capitalise on its reputation as a provider of complex aluminium sand-casting engineering solutions. The Company has longstanding and world-renowned expertise in castings for internal combustion engines and transmissions. Over the past five years it has become equally well known for expertise in drive unit housings, giga castings and other products for electric vehicles.
Management also acknowledged that despite the Company’s capabilities for electric vehicles and traditional propulsion, the automotive sector faces challenges and uncertainty in forthcoming years as consumers transition from internal combustion engines.
 
Management recognised the ongoing importance of the automotive sector to the Company as a core market and that the changes in the sector were most likely to be positive given the increasing need for niche & low volume production, prototyping and giga casting complex casting work. However, it was also confirmed that the Company’s market share in other industrial markets such as aerospace, defence, infrastructure and marine was significantly below its full potential. As such investment was made in the commercial function of the Company to grow sales in these segments.
Consequently, the focus in FY25 and beyond will be to continue to serve the automotive sector whilst in parallel effecting a market diversification strategy. It is expected that this will underpin the Company’s market leading position and provide further resilience to the business with a wider sector portfolio. 

Page 12

 
GRAINGER & WORRALL LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024

Research and development activities

The Company will continue its policy of investment in research and development to retain its technology leading reputation in the market.

Engagement with employees

During the period the Company prioritised employee engagement and the Directors took proactive steps to strengthen that engagement.
  
This included:
• the creation of a partner share scheme enabling all employees to be awarded a share in Evolution    Castings Group Partner Share Scheme Limited (“ECGPSSL”), which in turn now owns 5.25 per cent. of    the ECG Group. The intention is that the shares held by the Partners should attract value if the Group is    sold or seeks a listing on the Alternative Investment Market (the “AIM”), or equivalent, in the future.     Partner eligibility is subject to three simple conditions:
 i. that the Partner has continual service for more than 12 months;
 ii. has no active warnings on their personnel file; and 
 iii. is not serving their notice period.
In addition, a further 1.65 per cent of the issued share capital in the Group was allocated to ECGPSSL.  Under the articles of association of that company, the directors are entitled to allocate any value attributed to those shares at their discretion to any employees with the intention that any Partner who meets criteria (ii) and (iii) but has between one month but less than 12 months continual service may also receive a distribution.
• The formation of employee relationship groups (the “ERGs”) to encourage greater interaction throughout   the business. These include Evolution Embrace, Evolution World and Evolution Women. In addition, an    Employee Forum and a Management Forum were established.  The ERGs are encouraged to meet    regularly and to highlight areas of success and improvement across the Group.
• Increasing the level of engagement with the local community. The Group is one of the largest privately    owned businesses in Shropshire, and is the largest employer in Bridgnorth, the town in which the     Company operates. The Directors strongly believe that the Company therefore has a responsibility to play   an active role in the local community.  As a result, the business supports local charities and sponsors key   local events such as the annual Bridgnorth Walk and the Italian Auto Moto Festival.   
• Strengthening the learning and development capability within the Company. Significant efforts are being    made to create learning and development opportunities for all of the Partners and foster a culture where    the business can provide learning opportunities for Partners to be able to access training and progress    their careers.
Page 13

 
GRAINGER & WORRALL LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024


Engagement with our stakeholders

Shareholders
Historically the shareholder base solely comprised the Grainger family. Following the acquisition on 29 June 2023 the ultimate shareholder base changed substantially. Whilst the family have a majority shareholding in the new parent company, Evolutions Castings Group Limited, the shares held by the family and the management team became non-voting.
The company is controlled by Evolution Castings Group Limited with all main decisions being carried with a majority vote decision.  The Group Chairman has the casting vote.
Information is shared in an internal newsletter (“
Evolution News”) which is circulated to all Partners.  This is augmented with Employee and Management Forum meetings.
  
The Group’s Supervisory Board also meets monthly and this includes a representative for the Grainger family.
Whilst respecting the heritage of the business as a long-standing family-owned operation the Directors’ priorities are focussed on the financial resilience of the Company, maintaining a safe, well invested, working environment, investing in the workforce and delivering outstanding results for our customers.
Partners
The Company has made a concerted effort to increase its investment in Partner training, development, well being and inclusion within the business. The Company engages with Partners regularly and the senior management team adopt an “open door policy”. Views, ideas, suggestions and issues are encouraged to be raised by Partners at all levels in order that the business has try to be as good as it can be. The employee community Groups that were formed in 2023 were also an important step in the Company’s development as it seeks to become an employer with greater diversity within the workforce.    
 
Customers
The close working relationship with the Company’s customers has been essential in effecting the turnaround of the business. During the reporting period the business adopted a position of much greater clarity and transparency with its key customers. The ethos within the business is to ensure that there is always absolute alignment with customers and to jointly celebrate successes and communicate early, and comprehensively, should issues arise.
The Company has also significantly enhanced its commercial team which supports this strategy and it now has the objective of participating in all relevant engineering solutions and prototyping projects of the nature being sought by the business in the sectors in which the Company chooses to operate.
 
Page 14

 
GRAINGER & WORRALL LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024

  
Suppliers
The Company has a broad range of suppliers, ranging from the provision of materials for design, development and production to suppliers of IT, software and facilities.  We seek to work fairly with our suppliers which helps us reaffirm our reputation for upholding high ethical standards and assists with reducing the risk in our supply chain whilst benefiting from costs efficiencies.   We also maintain our awareness of environment consequences when making sourcing decisions in line with the expectations laid out in our Group ESG strategy.
Community
The Company recognises that as a major employer in the local area, it should proactively contribute to the local community. This is in line with the ethos of the Directors, shareholders and is aligned with the Group’s ESG strategy. As well as the creation and maintenance of employment in the local area, the business actively sponsor local charitable events, the local foodbank and annually the Partners choose the Group’s nominated charity. In 2023 this was Severn Hospice and in 2024 the chosen charity was Balls to Cancer. Partners have chosen  Severn Hospice as the charity for 2025.
Events are also held regularly to raise the awareness of STEM and engineering. The Director’s hope is that further efforts will be successful during 2025 as more is done to promote this important topic.

Equal opportunities employer

The Company is an Equal Opportunity Employer. It will not unlawfully discriminate against any of the protected characteristics as identified by the Equality Act 10 of age, disability, gender reassignment, marriage and civil 
partnership, pregnancy and maternity, race (including colour, nationality, and ethnic or national origin), region or belief, sex (gender) and sexual orientation.
Applications for employment by disabled persons are always fully considered, considering the aptitudes of the applicant concerned and the safety requirements of the role being applied for.
  
In the event of Partners becoming disabled every effort is made to ensure that their employment with the Group continues and that appropriate training and support is arranged. It is the policy of the Company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other Partners.

Qualifying third party indemnity provisions

The Company maintained qualifying third-party indemnity insurance in respect of the directors and offers against any such liabilities referred to in Section 234 of the Companies Act 2006.

Page 15

 
GRAINGER & WORRALL LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024

Greenhouse gas emissions, energy consumption and energy efficiency action

During the reporting period the group has significantly invested in strengthening its ESG policies. 
The Group also recognises the importance of all the 17 United Nations Sustainable Development Goals (“
SDGs”).   As a result of the Group wide materiality assessment undertaken in around September 2023 based on the Global Reporting Initiative (“GRI”) six of the SDGs were identified as those which could be most directly influenced.  These were:
• SDG 3: Good Health and Wellbeing
• SDG 4: Quality Education
• SDG 5: Gender Equality
• SDG 7: Affordable and Clean Energy
• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation and Infrastructure.
Strategic targets for the Group have been set against these SDGs together with short- and medium-term objectives.  These will be reported on annually in the future in the Company’s ESG report.

Energy and Greenhouse Gas ("GHG") emissions
In the reporting period the Company’s emissions were 115.6 tonnes per million £ of revenue. Energy usage dropped by 11% compared with the prior period. 
ole12a4.png
 
Page 16

 
GRAINGER & WORRALL LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024


Waste
The Group also monitors all its waste streams against their respective waste classification codes. WIR is the calculation of tonnes of waste produced per million £ of revenue.  In the reporting report, 6,635 tonnes of waste sand was produced along with 3,301 tonnes of refining material and 547 tonnes of general waste. Recycle rates continue to exceed 99%. WIR in the period was 173.2 tonnes/£m. This is a drop of 9.6% on the previous year.
Environmental matters
The Directors can confirm that there were no environmental incidents of significance during the financial year and the Group continues to maintain a low-risk scope on the Pollution, Prevention and Control (“PPC”) permit.  The testing frequency against the PPC permit is biannual.

Health and Safety
Health and safety is a priority across the Group.  Continual monitoring is undertaken against two metrics, these being:
• Accident Frequency Rate (“AFR”): the measure of accident per 10,000 hours worked; and
• Accident Severity Rate (“ASR”): the measure of days lost per 10,000 hours worked.
The results for the reporting period were as follows:
• The AFR rate was 0.44 (a 23% reduction on the previous year).
• The ASR was 1.40 (a 21% increase on the previous year).
The company has invested in new equipment and extraction systems to reduce safety risks, it has undertaken continual safety training and launched its “STAR” initiative to promote involvement in safety improvement across the organisation.
Going Concern
The Directors have undertaken an exercise to review the appropriateness of the continued use of the Going Concern basis that underpins the preparation of the financial statements. This review considers the likely performance of the Company, with reference to the forecasts for the period to 31 December 2025 / January 2026.
The key assumptions in the cash flow forecasts considered by the Directors are as follows:
• volumes, which are based on historical levels, together with current and potential orders based on    confirmed purchase orders, indicative volumes and discussions with customers;
• sales prices, which are estimates based on the latest contract negotiations with customers and prices    quoted in prototyping requests for quotes (“
RFQs”); and
• continued and sustained improvements to productivity in the Company.
The Company's plan is to continue to strengthen the business and maintain a programme of continual improvement.  The directors are satisfied with the rate of progress. 
 
Page 17

 
GRAINGER & WORRALL LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024

The Directors have also considered and applied the “reasonably severe but plausible” downside sensitivity of delays in orders from its key customers.
The Directors also believe that the funding structure put in place at the time of the acquisition with a customer group made up of several of its customers (the “
Customer Group”), together with the stronger financial performance of the business is sufficient to meet the Company's obligations under the reasonably severe but plausible downside scenario.
The Company's funders, National Westminster Bank plc and UK Export Finance have provided a letter of comfort covering the period to 31 January 2026. Similarly, the Customer Group have provided a letter of comfort covering the period to 31 July 2026.
Therefore, the Directors conclude that it is appropriate to continue to adopt the going concern principle in preparing the financial statements.
 

Disclosure of information to auditors

The director at the time when this Director's report is approved has confirmed that:
 
so far as is aware, there is no relevant audit information of which the Company's auditors are unaware, and

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's auditors are aware of that information.

Auditors

The auditorsWR Partnerswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





D S Eldridge
Director

Date: 30 January 2025
Page 18

 
GRAINGER & WORRALL LIMITED
 
 
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024

The Director is responsible for preparing the Strategic Report, the Director's report and the financial statements in accordance with applicable law and regulations.

Company law requires the Director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the director is required to:

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

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The Director is 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 to enable him to ensure that the financial statements comply with the Companies Act 2006He is 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.

The Director is responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Director's reports may differ from legislation in other jurisdictions.

Page 19

 
GRAINGER & WORRALL LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GRAINGER & WORRALL LIMITED
 

Opinion


We have audited the financial statements of Grainger & Worrall Limited (the 'Company') for the year ended 31 October 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity 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 Company's affairs as at 31 October 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for 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 Company 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 director's 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 director with respect to going concern are described in the relevant sections of this report.


Page 20

 
GRAINGER & WORRALL LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GRAINGER & WORRALL 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 director is responsible for the other information contained within the Annual ReportOur 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 Strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Director's 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 Director's 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 director's 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 Director's responsibilities statement set out on page 19, the director is 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 director determines 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 director is 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 director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 21

 
GRAINGER & WORRALL LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GRAINGER & WORRALL LIMITED (CONTINUED)


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 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:

The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, Health and Safety Regulations and the EU General Data Protection Regulation (GDPR).
We understood how the Company are complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures. We also reviewed board minutes to identify any recorded instances of irregularity or non compliance that might have a material impact on the financial statements.
We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur by meeting with key management to understand where they considered there was susceptibility to fraud. Based on our understanding our procedures involved enquiries of management and those charged with governance, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the financial statements


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities 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.
Page 22

 
GRAINGER & WORRALL LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GRAINGER & WORRALL LIMITED (CONTINUED)


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.





Andrew Malpass BA FCA (Senior statutory auditor)
  
for and on behalf of
WR Partners
 
Chartered Accountants
Statutory Auditors
  
Belmont House
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG

 
Date: 
30 January 2025
Page 23

 
GRAINGER & WORRALL LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
63,474,338
67,436,995

Cost of sales
  
(54,954,277)
(61,417,530)

Gross profit
  
8,520,061
6,019,465

Distribution costs
  
(240,200)
(589,436)

Administrative expenses
  
(6,295,531)
(5,808,199)

Exceptional administrative expenses
  
(941,954)
(4,859,105)

Other operating income
 5 
2,702,936
2,115,317

Operating profit/(loss)
 6 
3,745,312
(3,121,958)

Interest receivable and similar income
 10 
23,097
13,077

Interest payable and similar expenses
 11 
(794,026)
(1,068,065)

Profit/(loss) before tax
  
2,974,383
(4,176,946)

Tax on profit/(loss)
 12 
(2,431,845)
298,990

Profit/(loss) for the financial year
  
542,538
(3,877,956)

Other comprehensive income for the year
  

Unrealised surplus on revaluation of tangible fixed assets
  
229,123
2,418,679

Deferred tax movements on revalued tangible fixed assets
  
-
(602,977)

Other comprehensive income for the year
  
229,123
1,815,702

Total comprehensive income for the year
  
771,661
(2,062,254)

The notes on pages 30 to 51 form part of these financial statements.
Page 24

 
GRAINGER & WORRALL LIMITED
REGISTERED NUMBER: 00980487

BALANCE SHEET
AS AT 31 OCTOBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 15 
13,737,925
12,612,212

  
13,737,925
12,612,212

Current assets
  

Stocks
 16 
7,488,646
8,313,483

Debtors: amounts falling due within one year
 17 
10,316,187
14,187,327

Cash at bank and in hand
 18 
931,473
2,833,580

  
18,736,306
25,334,390

Creditors: amounts falling due within one year
 19 
(30,260,002)
(36,056,404)

Net current liabilities
  
 
 
(11,523,696)
 
 
(10,722,014)

Total assets less current liabilities
  
2,214,229
1,890,198

Creditors: amounts falling due after more than one year
 20 
(1,616,810)
(3,820,551)

Provisions for liabilities
  

Deferred tax
 23 
(2,206,094)
(449,983)

  
 
 
(2,206,094)
 
 
(449,983)

Net liabilities
  
(1,608,675)
(2,380,336)

Page 25

 
GRAINGER & WORRALL LIMITED
REGISTERED NUMBER: 00980487
    
BALANCE SHEET (CONTINUED)
AS AT 31 OCTOBER 2024

2024
2023
Note
£
£

Capital and reserves
  

Called up share capital 
 24 
999
999

Revaluation reserve
 25 
2,044,825
1,815,702

Profit and loss account
 25 
(3,654,499)
(4,197,037)

  
(1,608,675)
(2,380,336)


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




D S Eldridge
Director

Date: 30 January 2025

Page 26

 
GRAINGER & WORRALL LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£


At 1 November 2022 (as restated)
999
-
(225,951)
(224,952)


Comprehensive income for the year

Loss for the period (as restated)
-
-
(3,877,956)
(3,877,956)

Surplus on revaluation of other fixed assets
-
2,418,679
-
2,418,679

Deferred tax movement on revalued tangible fixed assets
-
(602,977)
-
(602,977)


Other comprehensive income for the year
-
1,815,702
-
1,815,702


Total comprehensive income for the year
-
1,815,702
(3,877,956)
(2,062,254)


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(93,130)
(93,130)


Total transactions with owners
-
-
(93,130)
(93,130)



At 1 November 2023
999
1,815,702
(4,197,037)
(2,380,336)


Comprehensive income for the year

Profit for the year
-
-
542,538
542,538

Surplus on revaluation of other fixed assets
-
229,123
-
229,123


Other comprehensive income for the year
-
229,123
-
229,123


Total comprehensive income for the year
-
229,123
542,538
771,661


At 31 October 2024
999
2,044,825
(3,654,499)
(1,608,675)


The notes on pages 30 to 51 form part of these financial statements.
Page 27

 
GRAINGER & WORRALL LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024

2024
2023
£
£

Cash flows from operating activities

Profit/(loss) for the financial year
542,538
(3,877,956)

Adjustments for:

Depreciation of tangible assets
2,620,931
1,884,427

Loss on disposal of tangible assets
(7,100)
(89,686)

Interest paid
794,026
1,068,065

Interest received
(23,097)
(13,077)

Taxation charge
2,431,845
(298,990)

Decrease/(increase) in stocks
824,837
(1,814,215)

Decrease in debtors
3,570,048
3,652,718

Decrease in amounts owed by group undertakings
301,092
4,462,063

Decrease in amounts owed by joint ventures
-
12,672

(Decrease) in creditors
(4,361,058)
(5,404,317)

(Decrease)/increase in amounts owed to group undertakings
291,267
8,618,883

Corporation tax (paid)/received
(675,734)
-

Net cash generated from operating activities

6,309,595
8,200,587
Page 28

 
GRAINGER & WORRALL LIMITED
 

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024

As restated

2024
2023

£
£




Cash flows from investing activities

Purchase of tangible fixed assets
(2,328,753)
(2,085,776)

Sale of tangible fixed assets
459,533
238,884

Acquisition of subsidiaries
(1,641,201)
-

Interest received
23,097
13,077

HP interest paid
(55,939)
(107,867)

Net cash from investing activities

(3,543,263)
(1,941,682)

Cash flows from financing activities

Repayment of loans
(2,352,142)
(336,457)

Other new loans
590,000
-

Repayment of/new finance leases
(1,178,434)
(1,224,865)

Dividends paid
-
(93,130)

Interest paid
(738,087)
(960,198)

Net cash used in financing activities
(3,678,663)
(2,614,650)

Net (decrease)/increase in cash and cash equivalents
(912,331)
3,644,255

Cash and cash equivalents at beginning of year
(4,419,719)
(8,063,974)

Cash and cash equivalents at the end of year
(5,332,050)
(4,419,719)


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
931,473
2,833,580

Bank overdrafts
(6,263,523)
(7,253,299)

(5,332,050)
(4,419,719)


Page 29

 
GRAINGER & WORRALL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

1.


General information

Grainger & Worrall Limited (company number 00980487) is a private company, limited by shares, incorporated in England and Wales and domiciled in the United Kingdom. Its registered office and principal place of business is located at Building 7, Stanmore Industrial Estate, Bridgnorth, Shropshire, WV15 5HP.
The principal activity of the Company is the design and manufacturing of automative casting components.

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 management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The Directors have undertaken an exercise to review the appropriateness of the continued use of the Going Concern basis that underpins the preparation of the financial statements. This review considers the likely performance of the Group, with reference to the forecasts for the period to 31 January 2026 and our 3 year plan.
The Company’s plan is to continue to strengthen the business and maintain a programme of continual improvement. The directors are satisfied with the rate of progress.
The Directors have also considered and applied the “reasonably severe but plausible” downside sensitivity of delays in orders from its key customers.
The Directors also believe that the funding structure put in place at the time of the acquisition with a customer group made up of several of its customers (the “Customer Group”), together with the stronger financial performance of the business is sufficient to meet the Group’s obligations under the reasonably severe but plausible downside scenario.
The Company’s funders, National Westminster Bank plc and UK Export Finance have provided a letter of comfort covering the period to 31 January 2026. Similarly, the Customer Group have provided a letter of comfort covering the period to 31 July 2026.
Therefore, the Directors conclude that it is appropriate to continue to adopt the going concern principle in preparing the financial statements.

Page 30

 
GRAINGER & WORRALL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

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.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
Page 31

 
GRAINGER & WORRALL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company 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 Company has transferred the significant risks and rewards of ownership to the buyer;
the Company 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 Company 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.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

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.

 
2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.
Page 32

 
GRAINGER & WORRALL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company 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 Company in independently administered funds.

 
2.9

Current and deferred taxation

The tax expense for the year 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 operates and generates 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.


 
2.10

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
Page 33

 
GRAINGER & WORRALL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.11

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.

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

Depreciation is provided on the following basis:

Leasehold property
-
20% straight line
Plant and machinery
-
15% reducing balance / 25% straight line
Motor vehicles
-
25% reducing balance / 50% straight line
Fixtures and fittings
-
20% reducing balance / 50% straight line
Assets under construction
-
not depreciated

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.

 
2.12

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.13

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 first in, first out 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.

Page 34

 
GRAINGER & WORRALL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.14

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.

 
2.15

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.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.16

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.

 
2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.18

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

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

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
 
Page 35

 
GRAINGER & WORRALL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)


2.18
Financial instruments (continued)


Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
 
Page 36

 
GRAINGER & WORRALL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)


2.18
Financial instruments (continued)


Financial liabilities

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

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

 
2.19

Dividends

Equity dividends are recognised when they become legally payable. 

Page 37

 
GRAINGER & WORRALL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies.
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates, will by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. 
Tangible fixed assets are held under the revaluation model which has resulted in a gain on revaluation of £229,123 (2023: £2,418,679). Fixed assets have been assessed for their fair value as at the balance sheet date. 


4.


Turnover

The whole of the turnover is attributable to the principal activity of the Company.

Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
37,267,633
33,338,024

Rest of Europe
20,721,310
19,402,139

Rest of the world
5,485,395
14,696,832

63,474,338
67,436,995



5.


Other operating income

2024
2023
£
£

Recharges
-
203,503

RDEC claim
2,702,936
1,911,814

2,702,936
2,115,317

Page 38

 
GRAINGER & WORRALL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

6.


Operating profit/(loss)

The operating profit/(loss) is stated after charging:

2024
2023
£
£

Research & development tax credit
(2,702,936)
(1,911,814)

Exchange differences
(332,845)
(814,507)

(Profit)/loss on sale of tangible assets
(7,100)
(89,686)


7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors and their associates:


2024
2023
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
40,550
28,000

Fees payable to the Company's auditors and their associates in respect of:

Taxation compliance services
3,900
3,500

All taxation advisory services not included above
20,000
20,000

All non-audit services not included above
3,150
2,750

Page 39

 
GRAINGER & WORRALL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

8.


Employees

Staff costs, including director's remuneration, were as follows:


2024
2023
£
£

Wages and salaries
22,489,505
20,931,400

Social security costs
2,144,876
1,884,183

Cost of defined contribution scheme
546,372
558,974

25,180,753
23,374,557


The average monthly number of employees, including the director, during the year was as follows:


        2024
        2023
            No.
            No.







Administration and management
173
160



Production
469
414

642
574

Page 40

 
GRAINGER & WORRALL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

9.


Director's remuneration

2024
2023
£
£

Director's emoluments
195,378
245,600

195,378
245,600



10.


Interest receivable

2024
2023
£
£


Other interest receivable
23,097
13,077

23,097
13,077


11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
324,512
960,198

Other loan interest payable
413,575
-

Finance leases and hire purchase contracts
55,939
107,867

794,026
1,068,065
Page 41

 
GRAINGER & WORRALL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
675,734
428,014


675,734
428,014


Total current tax
675,734
428,014

Deferred tax


Origination and reversal of timing differences
1,756,111
(727,004)

Total deferred tax
1,756,111
(727,004)


Taxation on profit/(loss) on ordinary activities
2,431,845
(298,990)
Page 42

 
GRAINGER & WORRALL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 22.5%). The differences are explained below:

2024
2023
£
£


Profit/(loss) on ordinary activities before tax
2,974,383
(4,176,946)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 22.5%)
743,596
(939,813)

Effects of:


expenses not deductible for tax purposes, other than goodwill amortisation and impairment
618
23,697

Capital allowances for year in excess of depreciation
16,865
209,291

Short-term timing difference leading to an increase (decrease) in taxation
996,807
-

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
675,734
428,014

Book profit on chargeable assets
(1,775)
(20,179)

Total tax charge for the year
2,431,845
(298,990)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 43

 
GRAINGER & WORRALL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

13.


Dividends

2024
2023
£
£


Dividends paid on ordinary shares
-
93,130

-
93,130


14.


Exceptional items

2024
2023
£
£


Restructuring costs
941,954
4,859,105

941,954
4,859,105

Restructuring costs consist of expenses incurred in relation to the management buyout during 2023 and the additional temporary governance costs.
Page 44

 
GRAINGER & WORRALL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

15.


Tangible fixed assets





Long-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Assets under construction
Total

£
£
£
£
£
£



Cost or valuation


At 1 November 2023
1,827,364
26,759,954
218,163
1,427,395
495,756
30,728,632


Additions
5,995
905,373
2,232
48,632
1,366,521
2,328,753


Acquisition of subsidiary
73,787
1,733,024
-
63,513
-
1,870,324


Disposals
(177,224)
(1,481,438)
(117,115)
(45,832)
-
(1,821,609)


Transfers between classes
-
904,070
-
278,413
(1,182,483)
-



At 31 October 2024

1,729,922
28,820,983
103,280
1,772,121
679,794
33,106,100



Depreciation


At 1 November 2023
1,680,827
14,995,938
148,713
1,290,942
-
18,116,420


Charge for the year on owned assets
113,039
2,399,389
23,013
85,490
-
2,620,931


Disposals
(149,207)
(1,066,067)
(117,115)
(36,787)
-
(1,369,176)



At 31 October 2024

1,644,659
16,329,260
54,611
1,339,645
-
19,368,175



Net book value



At 31 October 2024
85,263
12,491,723
48,669
432,476
679,794
13,737,925



At 31 October 2023
146,537
11,764,016
69,450
136,453
495,756
12,612,212
Page 45

 
GRAINGER & WORRALL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

           15.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Plant and machinery
3,381,694
1,931,008

Motor vehicles
41,160
50,939

3,422,854
1,981,947


16.


Stocks

2024
2023
£
£

Raw materials and consumables
1,069,907
1,111,257

Work in progress (goods to be sold)
4,855,697
7,099,819

Finished goods and goods for resale
1,563,042
102,407

7,488,646
8,313,483


An impairment of £44,385 (2023: £82,808) was recognised in cost of sales against stock during the year due to slow-moving and obsolete stock.


17.


Debtors

2024
2023
£
£


Trade debtors
5,637,931
8,636,699

Amounts owed by group undertakings
1,034,559
1,335,651

Other debtors
2,703,728
3,575,460

Prepayments and accrued income
939,969
639,517

10,316,187
14,187,327


Amounts owed by group undertakings and amounts owed by related parties are unsecured, repayable on demand and not subject to interest. 

Page 46

 
GRAINGER & WORRALL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

18.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
931,473
2,833,580

Less: bank overdrafts
(6,263,523)
(7,253,299)

(5,332,050)
(4,419,719)



19.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank overdrafts
6,263,523
7,253,299

Bank loans
3,030,000
3,107,142

Trade creditors
4,811,081
5,384,715

Amounts owed to group undertakings
13,755,554
13,464,287

Obligations under finance lease and hire purchase contracts
607,552
1,267,245

Other creditors
1,225,479
3,953,187

Accruals and deferred income
566,813
1,626,529

30,260,002
36,056,404


All loans are secured by fixed and floating charges over the assets of the Company. Obligations under finance lease and hire purchase contracts are secured upon the assets to which they relate.


20.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
911,429
3,186,429

Other loans
590,000
-

Net obligations under finance leases and hire purchase contracts
115,381
634,122

1,616,810
3,820,551


All loans are secured by fixed and floating charges over the assets of the Group. Obligations under
finance lease and hire purchase contracts are secured upon the assets to which they relate. 

Page 47

 
GRAINGER & WORRALL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

21.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
3,030,000
3,107,142


3,030,000
3,107,142

Amounts falling due 1-2 years

Bank loans
911,429
3,186,429

Other loans
440,000
-


1,351,429
3,186,429

Amounts falling due 2-5 years

Other loans
150,000
-


150,000
-


4,531,429
6,293,571


Included within bank loans is a Coronavirus Business Interruption Loan Scheme (CBILS) loan, which is repayable by August 2026. Interest is charged on the outstanding balance at 1.91% over the base rate per annum.


22.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2024
2023
£
£


Within one year
607,552
1,267,245

Between 1-5 years
115,381
634,122

722,933
1,901,367
Page 48

 
GRAINGER & WORRALL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

23.


Deferred taxation




2024


£






At beginning of year
(449,983)


Charged to profit or loss
(1,756,111)



At end of year
(2,206,094)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(2,780,449)
(2,201,555)

Tax losses carried forward
1,052,502
2,228,111

On revaluations of fixed assets
(602,977)
(602,977)

Other short term timing differences
124,830
126,438

(2,206,094)
(449,983)


24.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



8,990 (2023 - 8,990) Ordinary A shares of £0.10 each
899
899
1,000 (2023 - 1,000) Ordinary B shares of £0.10 each
100
100

999

999

The A Ordinary shares and B Ordinary shares have the same rights and are subject to the respective restrictions of the Ordinary shares as set out in the Articles of Association. 


Page 49

 
GRAINGER & WORRALL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

25.


Reserves

Revaluation reserve

The revaluation reserve represents movements in the valuation of the Company's assets in excess of the historic cost net of any deferred tax arising. 

Profit and loss account

The profit and loss account comprises cumulative profits and losses of the Company since incorporation, less any distributions made.

26.


Analysis of net debt




At 1 November 2023
Cash flows
At 31 October 2024
£

£

£

Cash at bank and in hand

2,833,580

(1,902,107)

931,473

Bank overdrafts

(7,253,299)

989,776

(6,263,523)

Debt due after 1 year

(3,186,429)

1,685,000

(1,501,429)

Debt due within 1 year

(3,107,142)

77,142

(3,030,000)

Finance leases

(1,901,367)

1,178,434

(722,933)


(12,614,657)
2,028,245
(10,586,412)


27.


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 £546,372 (2023: £558,974). Contributions totalling £89,320 (2023: £95,348) were payable to the fund at the balance sheet date and are included in creditors.

Page 50

 
GRAINGER & WORRALL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024


28.


Commitments under operating leases

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

2024
2023
£
£


Not later than 1 year
183,045
623,364

Later than 1 year and not later than 5 years
728,280
27,161

Later than 5 years
350,963
-

1,262,288
650,525


29.


Related party transactions

The Company has taken the exemption available under FRS 102 not to disclose transactions with 100% wholly owned subsidiaries.
At year end there is a balance of £290,000 due to Grainger Holdings Limited, a company under common control, included in creditors due in over one year. This balance does not accrue interest.
During the year, the Company incurred costs of £744,602 (2023: £975k) in relation to two separate Companies with common Directors. At the year and there were outstanding balances relating to this totalling £Nil (2023: £45,076) which are included within creditors.
At the year end there was an outstanding amount of £35,172 (2023: £334,782) due from Grainger & Worrall Engineering Limited, a company with common directors, included within debtors.
 


30.


Controlling party

The immediate and ultimate parent undertaking and controlling party is Evolution Group Castings Limited (14786291), a company incorporated and domiciled in England and Wales. 

 
Page 51