Company Registration No. 01514084 (England and Wales)
Supacat Limited
Annual report and financial statements
for the year ended 31 August 2024
Supacat Limited
Company information
Directors
R S N Ames
N L Jones
E M Jones
S J Austen
A S Mitchell
P Applegarth
J W Wilcox
Secretary
A S Mitchell
Company number
01514084
Registered office
The Airfield
Dunkeswell
Honiton
Devon
England
EX14 4LF
Independent auditor
Saffery LLP
St Catherine's Court
Berkeley Place
Clifton
Bristol
BS8 1BQ
Supacat Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Statement of income and retained earnings
10
Statement of financial position
11
Notes to the financial statements
12 - 28
Supacat Limited
Strategic report
For the year ended 31 August 2024
1

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

Principal activities

The principal activity of the company is the research and development, design, prototyping, manufacture and sale of high mobility vehicles, trailers and other systems.

Fair review of the business

The company has found the year to be a continuation of the improvement from the previous year even though, global trading conditions remain challenging. This improvement has been driven primarily from the ongoing programme for the delivery of a number of HMT vehicles for the UK MoD.

It is with this in mind that the results of the company for the year, set on page 10, show an operating profit before exceptional items of £3,768,518 (2023: £2,103,039).

Shareholders’ funds of the company Increased to £18,706,672 (2023: £15,514,852).

During the year the UK defence business, remained focussed on the delivery of a fleet of HMT vehicles for the UK Ministry of Defence. This programme was to be delivered within a period of 12 months and to support the delivery, the business engaged with a Tier One MoD supplier to assist with the volume manufacture. Due to a number of constraints and risks materialising, the programme schedule has been extended and the project is now expected to be completed at some point in the forthcoming year. In addition, due to the ongoing conflict in Ukraine, a number of opportunities have arisen during the year to continue support and deliver programmes to assist the Ukrainian Defence forces via the UK. A number of these programmes remain ongoing at the year end.

Support activities for the UK defence business (Spares, repairs maintenance and overhaul and post design services) stream saw a reduction during the year, with a 10.7% decrease over the previous year. This was as a result of capacity constraints driven by the main production programmes.

In terms of non-defence business, due to the increased workload placed on the business by the Defence business stream, there has been limited opportunity to further develop the of non-defence business. The business has continued with limited engineering services to non-defence customers


Overall revenues increased by 52.92% to £58,123,996 (2023: £38,009,135) in the year due to the progression of the large contract with the UK Ministry of Defence. Gross margin has marginally dropped in the year to 16.5% (2023: 18.6%). The directors believe that this is primarily due to the mix of work that has passed through the business. Given the opportunities and current workloads on the business, the directors expect the business revenues to fall but overall margins to be maintained in the forthcoming year whilst existing contracts are completed.


The company remains committed to investing in the continued development of new and existing products.

 

The company continues to invest in marketing activities to continue to promote the business within different sectors.

Administration expenses have increased this year to £5,825,819 (2023: £5,091,259) which represents 10.0% of turnover (2023: 13.4%).

The key performance indicators of the business are turnover and gross margin which are discussed above and can be seen in the profit and loss account on page 10.

Supacat Limited
Strategic report (continued)
For the year ended 31 August 2024
2
Principal risks and uncertainties

The company operates primarily in the engineering sector, its principal customers being Government organisations. As a result, the directors have identified that the results of the business are affected by pandemics, global economic conditions, cuts in government spending and competitor pressures, especially around tender prices.

The company has continued to be exposed to the remnants of the Coronavirus pandemic for the full financial year, not only in the country in which it operates but also the countries in which its major customers are based. This has continued to introduce risks to the supply and delivery of product to our customers. We have also experienced the crystallisation of risks of delay in customer procurement decisions due to political instability

It is expected that these risks will continue to further challenge the business into the future, but the business continues to look to mitigate its corporate risks through adequate contingency planning, and working closely with its customers and suppliers.

 

On behalf of the board

A S Mitchell
Director
14 February 2025
Supacat Limited
Directors' report
For the year ended 31 August 2024
3

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

Results and dividends
Directors

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

R S N Ames
N L Jones
E M Jones
S J Austen
A S Mitchell
P Applegarth
J W Wilcox
Financial instruments

Objectives and policies

The company's activities expose it to a number of financial risks including price risk, credit risk, liquidity risk and foreign exchange risk which are managed as follows:

Price risk, credit risk, liquidity risk and cash flow risk

Price risk: the company is engaged in long term contracts where the prices are often fixed. The company is therefore exposed to sub-contractor and supplier price risk. The company manages its exposure to these risks by engaging in ongoing negotiations with sub-contractors and suppliers over prices. The company looks to fix prices where possible to reduce exposure to price fluctuations on contracts. The company also continues to improve its systems to ensure that the company manages the risks associated with contract costs, which will help ensure that the company's results continue to improve into the future.

Credit risk: the company’s principal financial assets are bank balances and cash, trade debtors and other receivables. The credit risk on liquid funds is mitigated because the counterparties are banks with high credit-ratings. Trade debtors and other receivables are managed in respect of credit risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and limits. A significant part of the company’s operations are with national governments which have low credit risks.

Liquidity risk: in order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the company uses a mixture of long-term and short-term debt finance.

Foreign exchange risk: the company is exposed to currency risk on revenue and purchases that are denominated in a currency other than sterling. The company seeks to reduce foreign currency exchange exposures through a policy of matching and the use of forward currency contracts as considered necessary.

Supacat Limited
Directors' report (continued)
For the year ended 31 August 2024
4

Employment of disabled persons

The company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a disabled person.

Employee involvement

Regular meetings are held between local management and employees to allow a free flow of information and ideas.

Future developments

The directors consider that there are a number of opportunities both from a domestic and export perspective, that are now beginning to come to fruition and as a result, they expect the fortunes of the business to continue to improve.

Research and development

The company continues to design and develop the HMT family of vehicles. Due to the continued development enhancements required for the HMT product, the company has continued to feel it prudent, to focus on this and as a result development of other vehicle platforms has been limited. During the year the business did commence the development of a closed cab variant of the HMT platform, together with some limited design work on a smaller tactical vehicle the Lightweight Mobility vehicle (LMV). In addition, one of the company’s critical suppliers became financially unstable and the business chose to acquire some Intellectual Property (IP) from that business to ensure that its own ability to deliver to its customers would not be compromised. As a result, the company invested a total of £1,810,625 (2023: £342,977) in development projects and IP. The directors regard continued investment in this area as a prerequisite for success in the medium to long term.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Going concern

Please see note 1.2 of the financial statements which describes the directors’ assessment of the going concern status of the company.

Statement of disclosure to auditor

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

On behalf of the board
A S Mitchell
Director
14 February 2025
Supacat Limited
Directors' responsibilities statement
For the year ended 31 August 2024
5

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

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

 

Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 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.

Supacat Limited
Independent auditor's report
To the members of Supacat Limited
6
Opinion

We have audited the financial statements of Supacat Limited (the 'company') for the year ended 31 August 2024 which comprise the statement of income and retained earnings, the statement of financial position and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Supacat Limited
Independent auditor's report (continued)
To the members of Supacat Limited
7

Opinions on other matters prescribed by the Companies Act 2006

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

 

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the 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:

 

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.

Supacat Limited
Independent auditor's report (continued)
To the members of Supacat Limited
8

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

 

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.

 

Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.

 

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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

Use of our report

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

Supacat Limited
Independent auditor's report (continued)
To the members of Supacat Limited
9
Neil Davies
Senior Statutory Auditor
For and on behalf of Saffery LLP
17 February 2025
Statutory Auditors
St Catherine's Court
Berkeley Place
Clifton
Bristol
BS8 1BQ
Supacat Limited
Statement of income and retained earnings
For the year ended 31 August 2024
10
2024
2023
Notes
£
£
Turnover
3
58,123,996
38,009,135
Cost of sales
(48,542,481)
(30,931,964)
Gross profit
9,581,515
7,077,171
Distribution costs
(526,041)
(371,404)
Administrative expenses
(5,825,819)
(5,091,259)
Other operating income
538,863
488,531
Operating profit
4
3,768,518
2,103,039
Interest receivable and similar income
8
210,430
51,536
Interest payable and similar expenses
9
(95,665)
(84,524)
Profit before taxation
3,883,283
2,070,051
Tax on profit
10
(691,463)
(374,915)
Profit for the financial year
3,191,820
1,695,136
Retained earnings brought forward
14,014,852
12,319,716
Retained earnings carried forward
17,206,672
14,014,852

The income statement has been prepared on the basis that all operations are continuing operations.

 

Supacat Limited
Statement of financial position
As at 31 August 2024
11
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
8,244,047
7,397,003
Tangible assets
12
2,379,907
893,355
10,623,954
8,290,358
Current assets
Stocks
13
7,564,706
3,839,370
Debtors
14
12,304,555
11,645,244
Cash at bank and in hand
4,468,708
7,172,293
24,337,969
22,656,907
Creditors: amounts falling due within one year
15
(12,155,323)
(10,653,858)
Net current assets
12,182,646
12,003,049
Total assets less current liabilities
22,806,600
20,293,407
Creditors: amounts falling due after more than one year
16
(475,436)
(605,956)
Provisions for liabilities
Provisions
19
2,238,741
2,855,337
Deferred tax liability
20
1,385,751
1,317,262
(3,624,492)
(4,172,599)
Net assets
18,706,672
15,514,852
Capital and reserves
Called up share capital
22
1,500,000
1,500,000
Profit and loss reserves
17,206,672
14,014,852
Total equity
18,706,672
15,514,852

 

The financial statements were approved by the board of directors and authorised for issue on 14 February 2025 and are signed on its behalf by:
A S Mitchell
Director
Company Registration No. 01514084
Supacat Limited
Notes to the financial statements
For the year ended 31 August 2024
12
1
Accounting policies
Company information

Supacat Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Airfield, Dunkeswell, Honiton, Devon, England, EX14 4LF.

1.1
Accounting convention

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

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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

 

 

The financial statements of the company are consolidated in the financial statements of SC Group-Global Limited. These consolidated financial statements are available from its registered office, The Airfield, Dunkeswell Airfield, Honiton, EX14 4LF.

Supacat Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
1
Accounting policies (continued)
13
1.2
Going concern

At the time of approving these financial statements, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. true

As part of making the above assessment, the directors continue to review the business in the current trading environment and in particular the adequacy of its current banking facilities and its access to additional facilities should these be required. The Company has an on demand bank facility that is renewable on an annual basis and believe that this will continue to be renewed at the current levels in line with previous years. The directors continue to test their assumptions with forecasts being reviewed regularly and ongoing discussions with lenders and banks to explore opportunities to increase facilities if appropriate.

The latest budget has been reviewed, sensitised and a number of differing scenarios produced under different planning assumptions. A number of UK projects which are under contract, have positively contributed to the underpinning of the revenues for the business for the forthcoming year regardless of which scenario is considered. Although these scenarios, show a reduction of revenues and margins over the period, the plans that remain in place to conserve cash and mitigate the effect drops of this magnitude in the forecast, the scenarios continue to indicate that the business will be able to operate positively and effectively.

Following these reviews, the directors have a reasonable expectation that the business has adequate resources to continue in operational existence for the foreseeable future. Therefore, the directors consider it to be appropriate to prepare the accounts on a going concern basis.

1.3
Turnover

Turnover comprises revenue receivable by the company in respect of goods and services supplied during the year, exclusive of value added tax and trade discounts.

Goods

Turnover from the sale of goods is recognised when the goods are physically delivered to the customer or when substantially all the risks and rewards are transferred, whichever is earlier.

Services

Turnover from the supply of services represents the value of services provided during the year to the extent that there is a right to consideration and is recorded at the fair value of the consideration due.

Long term contract revenue

Where a contract has only been partly complete at the balance sheet date, turnover is calculated by reference to the value of work performed to date as a proportion of the total contract value. Where payments are received from customers in advance of services provided, the amounts are recorded as deferred income and included as part of creditors due within one year. Turnover which has not been invoiced is included within amounts recoverable under contracts. Revenues derived from variations on contracts are recognised only which they have been accepted by the customer.

 

Profit on long-term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover related costs as contract activity progresses. Full provision is made for losses on all contracts in the year in which they are first foreseen.

Supacat Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
1
Accounting policies (continued)
14
1.4
Research and development expenditure

Funded development expenditure incurred on specific contracts is treated as a contract cost in accordance with the general accounting policy for contract work in progress. Unfunded development costs incurred on certain projects are capitalised and carried forward as intangible assets when their recoverability can be foreseen with reasonable certainty, there is an ability to sell the product being developed, there is a firm commitment to complete the project and there are sufficient resources to do so. These deferred costs, which include labour costs and an element of directly attributable overheads, are amortised on the straight line basis over the anticipated life of the benefits arising from the completed products or projects. The Directors consider that this treatment results in a proper matching of costs and revenue. All other development expenditure is written off in the year of expenditure.

1.5
Intangible fixed assets other than goodwill

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

Development costs
10 years straight line
1.6
Tangible fixed assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Leasehold land and buildings
10 years straight line
Plant and equipment
25% straight line
Fixtures and fittings
20% - 33% straight line
Motor vehicles
25% straight line
1.7
Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable production overheads.

Supacat Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
1
Accounting policies (continued)
15
1.8
Financial instruments

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company's obligations are discharged, expire or are cancelled.

 

The company holds the following basic financial instruments:

 

 

Basic instruments are initially measured at transaction price, including transaction costs. Those instruments considered current are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

 

Long term instruments are subsequently measured at amortised cost using the effective interest rate method.

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Taxation

Tax expense for the period represents the sum of the current tax currently payable and deferred tax..

Supacat Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
1
Accounting policies (continued)
16
Current tax

Tax is recognised in the profit or loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

 

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax.

1.10
Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. Warranty provisions are based on the best estimate of future costs to be incurred in relation to claims by customers, formed from historical data where appropriate. Provisions for warranties are recognised once the product has been delivered to the customer.

1.11
Retirement benefits

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

 

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

1.12
Leases

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

 

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

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases or hire purchase contracts whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

 

Assets held under finance leases or hire purchase contracts are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease or hire purchase obligation.

 

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Supacat Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
1
Accounting policies (continued)
17
1.13
Foreign exchange

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates. Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

2
Critical accounting judgements and key sources of estimation uncertainty

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

 

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

Critical judgements

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

Recognition of profit on long term contracts

Profit on long term contracts is taken as work is carried out if the final outcome can be assessed with reasonable certainty. This requires an accurate assessment of the stage of completion of each contract, as well as the estimated costs to complete each contract. Judgement, influenced by historical performance, is required when estimating the expected costs to complete the project. The amount recognised in the year is disclosed in note 3.

Stock and work in progress provisions

Provisions are held against slow moving stock and work in progress. This inherently requires a degree of estimation. The directors have estimated the stock provision based on age, on a line by line basis. Provision against work in progress is made where total costs on projects are expected to exceed total revenues. The total amount provided for is £456,941(2023: £414,373).

Vaulation of intangible assets

The company makes significant investments on an annual basis in research and development, which is a key element to enable it to compete in its marketplace. The business continues to adopt a policy of capitalising these costs as part of its Intangible fixed assets, where it believes that the development costs incurred will lead to future economic benefit. The amount capitalised in the year is disclosed in note 11.

Supacat Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
18
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
UK
55,234,558
36,299,840
Europe
516,590
1,046,233
Rest of world
2,372,848
663,062
58,123,996
38,009,135
2024
2023
£
£
Other revenue
Interest income
210,430
51,536

The amount of contract revenue recognised as turnover in the year was £46,835,774 (2023: £27,313,808).

4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
8,522
(24,558)
Research and development costs
-
131,592
Depreciation of owned tangible fixed assets
449,716
265,049
Profit on disposal of tangible fixed assets
(19,847)
(17,912)
Amortisation of intangible assets
963,581
886,060
Operating lease charges
407,772
245,089
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
72,295
57,618
Supacat Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
19
6
Employees

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

2024
2023
Number
Number
Production
96
72
Administration and support
27
24
Sales, marketing and distribution
16
13
Total
139
109

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
5,741,836
4,661,549
Social security costs
623,997
446,516
Pension costs
276,121
201,794
6,641,954
5,309,859
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
390,878
406,338
Company pension contributions to defined contribution schemes
28,692
25,517
419,570
431,855

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
154,922
155,766
Company pension contributions to defined contribution schemes
15,313
12,936
Supacat Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
20
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
175,216
8,993
Interest receivable from group companies
35,214
42,543
Total income
210,430
51,536
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
84,818
83,493
Interest on finance leases and hire purchase contracts
10,847
1,031
95,665
84,524
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
622,974
-
0
Deferred tax
Origination and reversal of timing differences
353,213
768,585
Adjustment in respect of prior periods
(284,724)
(393,670)
Total deferred tax
68,489
374,915
Total tax charge
691,463
374,915
Supacat Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
10
Taxation (continued)
21

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

2024
2023
£
£
Profit before taxation
3,883,283
2,070,051
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.52%)
970,821
445,371
Tax effect of expenses that are not deductible in determining taxable profit
3,275
1,658
Adjustments in respect of prior years
-
0
248,943
Permanent capital allowances in excess of depreciation
2,091
(40,467)
Other permanent differences
-
0
5,941
Deferred tax adjustments in respect of prior years
(284,724)
(393,670)
Effect of change in local deferred tax rate
-
0
107,139
Taxation charge for the year
691,463
374,915
11
Intangible fixed assets
Development costs
£
Cost
At 1 September 2023
13,701,524
Additions
1,810,625
At 31 August 2024
15,512,149
Amortisation and impairment
At 1 September 2023
6,304,521
Amortisation charged for the year
963,581
At 31 August 2024
7,268,102
Carrying amount
At 31 August 2024
8,244,047
At 31 August 2023
7,397,003
Supacat Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
11
Intangible fixed assets (continued)
22

High Mobility Vehicles

The carrying amount of these assets is £4,251,940 (2023: £2,683,997).

 

The amortisation of the original HMT 400 project commenced in the year ended 31 August 2003, upon commencement of commercial production of the HMT 400 vehicle. Similarly, the amortisation of the original HMT 600 vehicle development costs commenced in the year ended 31 August 2007 upon its successful commencement of commercial production.

 

Subsequent product enhancement expenditure is written off over ten years from the date of capitalisation. Additions in the year relate to the acquisition of £1,800,000 in blast enhancement systems.

 

Light Reconnaissance Vehicle and Specialist Utility Vehicle

The carrying amount of these assets is £1,504,679 (2023: £1,790,282).

 

Development of the assets commenced in the year ended 31 August 2015 and 31 August 2014 respectively. Whilst not yet in commercial production, the directors consider the project to be substantially complete and amortisation began in 2020, writing off the development costs over a 10 year period.

 

Lightweight recovery vehicle

The carrying amount of these assets is £1,837,163 (2023: £1,864,486).

 

Development of these assets commenced in the year ended 31 August 2017. Amortisation began to be charged this year after the asset was brought into use.

 

12
Tangible fixed assets
Leasehold land and buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 September 2023
147,680
-
0
1,013,125
2,488,876
1,533,000
5,182,681
Additions
4,548
1,252,272
266,406
356,867
56,175
1,936,268
Disposals
-
0
-
0
(219,350)
(32,032)
(23,396)
(274,778)
At 31 August 2024
152,228
1,252,272
1,060,181
2,813,711
1,565,779
6,844,171
Depreciation and impairment
At 1 September 2023
87,734
-
0
788,459
2,163,466
1,249,667
4,289,326
Depreciation charged in the year
7,409
-
0
71,759
158,722
211,826
449,716
Eliminated in respect of disposals
-
0
-
0
(219,350)
(32,032)
(23,396)
(274,778)
At 31 August 2024
95,143
-
0
640,868
2,290,156
1,438,097
4,464,264
Carrying amount
At 31 August 2024
57,085
1,252,272
419,313
523,555
127,682
2,379,907
At 31 August 2023
59,946
-
0
224,666
325,410
283,333
893,355
Supacat Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
12
Tangible fixed assets (continued)
23

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

2024
2023
£
£
Plant and equipment
232,130
43,721
13
Stocks
2024
2023
£
£
Raw materials and consumables
5,889,236
3,527,408
Work in progress
1,675,470
311,962
7,564,706
3,839,370
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
5,531,384
5,920,000
Gross amounts owed by contract customers
3,764,806
2,071,061
Amounts owed by group undertakings
1,925,629
3,070,484
Other debtors
373,440
63,787
Prepayments and accrued income
709,296
519,912
12,304,555
11,645,244

Details of trade and other debtors

£1,925,629 (2023: £3,070,484) of amounts due from group undertakings is classified as non current.

 

Interest is charged at 5.1% above the Bank of England base rate on amounts receivable from Supacat Pty Limited, totalling £859,935 (2023: £2,429,866) as at the year-end. No interest is charged on intercompany trade debtors.

 

All amounts due from group undertakings are unsecured and are repayable on demand.

Supacat Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
24
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
17
315,546
348,018
Obligations under finance leases
18
80,636
20,399
Trade creditors
3,998,071
4,458,903
Amounts owed to group undertakings
943,780
481,666
Corporation tax
622,974
-
0
Other taxation and social security
205,068
590,932
Other creditors
22,517
21,260
Accruals and deferred income
5,966,731
4,732,680
12,155,323
10,653,858

Amounts owed to group undertakings are unsecured, no interest is charged on these amounts.

16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
285,533
580,660
Obligations under finance leases
18
189,903
25,296
475,436
605,956
17
Loans and overdrafts
2024
2023
£
£
Bank loans
601,079
928,678
Payable within one year
315,546
348,018
Payable after one year
285,533
580,660

The bank loans are secured by charges over the assets of the company's parent company by way of a cross guarantee.

The company is part of a group that has an on demand overdraft facility of a net £1.5m covering the UK group companies. This is repayable on demand and attracts interest at 2.75% above the bank's base rate.

 

The company has other loan facilities that attract interest at rates ranging between 4.35% and 9.5% that are repayable over the next 5 years.

 

The minimum lease payments under finance leases and hire purchase agreements are disclosed in note 19. The finance leases and hire purchase agreements are secured on the assets to which they relate.

Supacat Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
25
18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
80,636
20,399
In two to five years
189,903
25,296
270,539
45,695

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

Finance lease liabilities are secured on the assets to which they relate.

Supacat Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
26
19
Provisions for liabilities
2024
2023
£
£
Warranty provision
1,138,741
1,055,337
Other Provisions
1,100,000
1,800,000
2,238,741
2,855,337
Movements on provisions:
Warranty provision
Other Provisions
Total
£
£
£
At 1 September 2023
1,055,337
1,800,000
2,855,337
Additional provisions in the year
83,404
(700,000)
(616,596)
At 31 August 2024
1,138,741
1,100,000
2,238,741

The company provides for warranty costs up to agreed contractual amounts. Once warranty periods end, any related provision is released back to the profit and loss account.

20
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
1,385,751
1,317,262
2024
Movements in the year:
£
Liability at 1 September 2023
1,317,262
Charge to profit or loss
68,489
Liability at 31 August 2024
1,385,751

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

Supacat Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
27
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
276,121
201,794

The company operates a defined contribution pension scheme for all qualifying employees. Contributions totalling £44,788 (2023: £34,219) were payable to the scheme at the end of the year and are included in creditors.

22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,500,000
1,500,000
1,500,000
1,500,000

All Ordinary shares have equal voting and participation rights in the company.

23
Financial commitments, guarantees and contingent liabilities

An unlimited multilateral company guarantee has been given to the group's bankers by SC Group-Global Limited, SC Innovation-Global Limited, Proteum Limited, Blackhill Engineering Services Limited and Supacat Limited covering all the present and future indebtedness and liabilities to the bank howsoever arising. All amounts owed to the group's bankers are secured by fixed and floating charges over the assets of the companies.

24
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
80,287
27,260
Between two and five years
32,777
46,811
113,064
74,071

The amount of non-cancellable operating lease payments recognised as an expense during the year was £112,910 (2023: £175,421)

Supacat Limited
Notes to the financial statements (continued)
For the year ended 31 August 2024
28
25
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
521,667
-
26
Related party transactions

During the year, the company traded with a group entity that is not wholly owned (90% owned by the parent of the company, SC Group-Global Limited). Sales made to the entity totalled £313,255 (2023: £313,112) and the company purchased services from the entity totalling £48,309 (2023: £182,719). At the balance sheet date the amount due from this entity was £394,155 (2023: £523,850).

 

The company has taken advantage of the exemption in FRS 102 from disclosing transactions with its parent company and other wholly owned members of the group.

27
Ultimate controlling party

The company's immediate parent is SC Group-Global Limited, incorporated in England and Wales.

 

These financial statements are available upon request from Companies House. The address of the parent company's registered office is that of the company's and is stated in note 1.

2024-08-312023-09-01falseCCH SoftwareCCH Accounts Production 2024.210R S N AmesN L JonesE M JonesS J AustenP ApplegarthJ W WilcoxJ W WilcoxA S Mitchellfalsefalse015140842023-09-012024-08-3101514084bus:Director12023-09-012024-08-3101514084bus:Director22023-09-012024-08-3101514084bus:Director32023-09-012024-08-3101514084bus:Director42023-09-012024-08-3101514084bus:CompanySecretaryDirector12023-09-012024-08-3101514084bus:Director52023-09-012024-08-3101514084bus:Director62023-09-012024-08-3101514084bus:CompanySecretary12023-09-012024-08-3101514084bus:Director72023-09-012024-08-3101514084bus:RegisteredOffice2023-09-012024-08-31015140842024-08-31015140842022-09-012023-08-3101514084core:RetainedEarningsAccumulatedLosses2023-08-3101514084core:RetainedEarningsAccumulatedLosses2022-08-3101514084core:ShareCapital2024-08-3101514084core:ShareCapital2023-08-3101514084core:RetainedEarningsAccumulatedLosses2024-08-3101514084core:RetainedEarningsAccumulatedLosses2023-08-31015140842023-08-3101514084core:OtherResidualIntangibleAssets2024-08-3101514084core:OtherResidualIntangibleAssets2023-08-3101514084core:DevelopmentCostsCapitalisedDevelopmentExpenditure2024-08-3101514084core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-08-3101514084core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-08-3101514084core:ConstructionInProgressAssetsUnderConstruction2024-08-3101514084core:PlantMachinery2024-08-3101514084core:FurnitureFittings2024-08-3101514084core:MotorVehicles2024-08-3101514084core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-08-3101514084core:ConstructionInProgressAssetsUnderConstruction2023-08-3101514084core:PlantMachinery2023-08-3101514084core:FurnitureFittings2023-08-3101514084core:MotorVehicles2023-08-3101514084core:CurrentFinancialInstrumentscore:WithinOneYear2024-08-3101514084core:CurrentFinancialInstrumentscore:WithinOneYear2023-08-3101514084core:Non-currentFinancialInstrumentscore:AfterOneYear2024-08-3101514084core:Non-currentFinancialInstrumentscore:AfterOneYear2023-08-3101514084core:CurrentFinancialInstruments2024-08-3101514084core:CurrentFinancialInstruments2023-08-3101514084core:Non-currentFinancialInstruments2024-08-3101514084core:Non-currentFinancialInstruments2023-08-31015140842023-08-3101514084core:IntangibleAssetsOtherThanGoodwill2023-09-012024-08-3101514084core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-09-012024-08-3101514084core:LandBuildingscore:LongLeaseholdAssets2023-09-012024-08-3101514084core:PlantMachinery2023-09-012024-08-3101514084core:FurnitureFittings2023-09-012024-08-3101514084core:MotorVehicles2023-09-012024-08-3101514084core:UKTax2023-09-012024-08-3101514084core:UKTax2022-09-012023-08-310151408412023-09-012024-08-310151408412022-09-012023-08-310151408422023-09-012024-08-310151408422022-09-012023-08-3101514084core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-08-3101514084core:DevelopmentCostsCapitalisedDevelopmentExpenditurecore:ExternallyAcquiredIntangibleAssets2023-09-012024-08-3101514084core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-08-3101514084core:ConstructionInProgressAssetsUnderConstruction2023-08-3101514084core:PlantMachinery2023-08-3101514084core:FurnitureFittings2023-08-3101514084core:MotorVehicles2023-08-3101514084core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-09-012024-08-3101514084core:ConstructionInProgressAssetsUnderConstruction2023-09-012024-08-3101514084core:WithinOneYear2024-08-3101514084core:WithinOneYear2023-08-3101514084core:BetweenTwoFiveYears2024-08-3101514084core:BetweenTwoFiveYears2023-08-3101514084bus:PrivateLimitedCompanyLtd2023-09-012024-08-3101514084bus:FRS1022023-09-012024-08-3101514084bus:Audited2023-09-012024-08-3101514084bus:FullAccounts2023-09-012024-08-31xbrli:purexbrli:sharesiso4217:GBP