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Registered number: 01421817









Oliver Valves Limited









Annual Report and Financial Statements

For the year ended 30 September 2024

 
Oliver Valves Limited
 
 
Company Information


Directors
Dr Michael R Oliver OBE DL, Chairman 
Mark R Oliver 
P E Shillito 
N A Howard 
P Rowlands 
T N Spencer (appointed 1 March 2024)




Company secretary
Lynn Goryl



Registered number
01421817



Registered office
Parkgate Industrial Estate

Knutsford

Cheshire

WA16 8DX




Independent auditors
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors

3 Stockport Exchange

Stockport

Cheshire

SK1 3GG




Bankers
National Westminster Bank plc
19 Market Street

Manchester

M1 1WR




Solicitors
Hill Dickinson
50 Fountain Street

Manchester

M2 2AS





 
Oliver Valves Limited
 

Contents



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditors' report
 
5 - 8
Statement of comprehensive income
 
9
Statement of financial position
 
10
Statement of changes in equity
 
11
Statement of cash flows
 
12
Analysis of net debt
 
13
Notes to the financial statements
 
14 - 28


 
Oliver Valves Limited
 
 
Strategic Report
For the year ended 30 September 2024

Introduction
 
The directors present the Strategic Report for the year ended 30 September 2024.  

Business review
 
Oliver Valves Limited has been a recognised industry leader with a World Class reputation for the supply of valve technology globally for the last 45 years. We have a geographically diverse customer base predominantly in the oil and gas and petrochemicals sectors, and are able to offer a highly innovative range of products to meet the requirements of our customers. 
In the year to 30th September 2024 the business delivered an exceptional financial performance reflected continued growth, delivering year on year improvement in sales, shipments and net profitability. 
Shipments increased by 27.9% on the prior year, and we report turnover of £40.2 million for the full financial year. This follows on from a 39% increase in the previous year.
We report a pre-tax profit of £5.9 million. This is a significant increase of on the previous year. This year there was an increase in indirect staff costs as we brought additional headcount into the business. 
Our Research and Development activity has increased significantly as we continue to provide innovative solutions for our customers. We regard this as an essential investment in the future of the business, particularly as customers demand increased complexity and challenges to meet their requirements. One of our central principals is “It Can Be Done” – a belief that drives the entire ethos of the business.
As with many businesses that operate internationally, the supply chain has been impacted by a scarcity of raw materials, interruptions to global shipping, and the uncertainty caused by geopolitical issues around the world. We hold sufficient stocks but have made efforts to reduce this, and Work in Progress and Finished Goods to be shipped in the coming year account for 37.3% of overall inventory.
As a result of the large increase in shipments we have a significantly grown our trade debtor balance by 107%. We review our debtor balances regularly and we are confident there are no unprovided bad debts. Cash reserves reflect our success in receiving payments from customers in a timely manner.
Oliver Valves Limited is in a strong position for the future. Net assets have grown, we have a very healthy order book to take into 2025, and we have capital investment plans for the coming year to enhance efficiencies still further. We regard 2024 as an exceptional year, but still see a great deal of opportunity for the business in the coming twelve months and beyond.

Principal risks and uncertainties
 
Financial instruments
The company's principal financial instruments comprise bank balances, bank loans, trade creditors, trade debtors and operating lease agreements.  The main purpose of these instruments is to finance the company's operations.
Due to the nature of the financial instruments used by the company, there is little exposure to price risk.  The company's approach to managing other risks applicable to the financial instruments concerned is shown below.
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexible borrowing.
 
Page 1

 
Oliver Valves Limited
 

Strategic Report (continued)
For the year ended 30 September 2024

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
The company is a lessee in respect of operating leased assets.  The liquidity risk in respect of these is managed in the same way as trade creditors above. Currency risk is managed through the pricing strategy.
Other risks & uncertainties
Brent Crude Oil prices are now stabilising at around $80. This has driven more certainty in the Oil and Gas sector. We have had a very strong start to the new financial year however we continue to monitor oil prices regularly. There are numerous geopolitical issues around the globe that could create volitivity.
Raw material prices stabilised, but at a higher level than previously, and certain exotic materials are scarce. Our purchasing team are working hard to source material of the required standard at the best prices possible. We review our prices regularly to ensure they reflect increases in input costs.

Financial key performance indicators
 
The company's financial KPI's focus on a number of critical areas the "Gross Margin is King" philosophy remains the major factor in shaping the future success of the business and this is evidenced by the improving performance year on year. Business liquidity runs in parallel with margins and is very closely monitored through both Debtors and Creditors management. Other financial KPI's are as follows: 
Current ratio 1.81 (2023 – 1.66)
Cashflow forecasting – our forecast for the coming year indicates a continued positive cash position.
Turnover – Actual £40.2M versus forecast £31.4M
Overhead expenditure – £9.1M vs prior year £7.4M
Inventory ratio - 20:1 (2023 – 7:1)

Other key performance indicators
 
Non financial performance indicators are numerous but centre on the following: 
Customer Order on Time Delivery performance
Customer Order Overdue
Sales Order intake versus forecast
Total Sales Order Backlog
Supplier On Time Delivery Performance
Employee workforce management
Quality Assurance
Health & Safety


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




Dr Michael R Oliver OBE DL
Chairman

Date: 23 February 2025

Page 2

 
Oliver Valves Limited
 
 
 
Directors' Report
For the year ended 30 September 2024

The directors present their report and the financial statements for the year ended 30 September 2024.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, the directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

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


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

make judgements 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 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £4,414,937 (2023 - £2,935,253).

Dividends paid during the year amounted to £2,000,000 (2023 - £3,500,000).
Charitable contributions
During the year the company contributed £120,514 (2023 - £100,290) to charities.

Directors

The directors who served during the year were:

Dr Michael R Oliver OBE DL, Chairman 
Mark R Oliver 
P E Shillito 
N A Howard 
P Rowlands 
T N Spencer (appointed 1 March 2024)

Future developments

The likely future developments in the company's business are detailed in the Strategic Report.

Page 3

 
Oliver Valves Limited
 
 
 
Directors' Report (continued)
For the year ended 30 September 2024

Disclosure of information to auditors

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

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

Post balance sheet events

There have been no significant events affecting the company since the year end.

Auditors

The auditorsHurst Accountants Limitedwill 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.
 




Lynn Goryl
Secretary

Date: 23 February 2025

Page 4

 
Oliver Valves Limited
 
 
 
Independent Auditors' Report to the Members of Oliver Valves Limited
 

Opinion


We have audited the financial statements of Oliver Valves Limited (the 'company') for the year ended 30 September 2024, which comprise the statement of comprehensive income, the statement of financial position, 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 30 September 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 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 auditors' report thereon. The directors are 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.


Page 5

 
Oliver Valves Limited
 
 
 
Independent Auditors' Report to the Members of Oliver Valves Limited (continued)


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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.


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


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


Responsibilities of directors
 

As explained more fully in the directors' responsibilities statement set out on page 3, 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.


Page 6

 
Oliver Valves Limited
 
 
 
Independent Auditors' Report to the Members of Oliver Valves 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:

Identifying and assessing potential risks related to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
The outcome of enquiries of local management and parent company management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud.
Supporting documentation relating to the Company's policies and procedures for:
°Identifying, evaluating, and complying with laws and regulations
°Detecting and responding to the risks of fraud
The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements, Quality Management System accreditations such as ISO 9001, API specifications, and Achilles UVBD, and Anti-bribery and Corruption.

Audit response to risks identified

Our procedures to respond to the risks identified included the following:

Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud. 
Evaluation of the operating effectiveness of management’s controls designed to prevent and detect  irregularities.
Enquiring of management about any actual and potential litigation and claims.
Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.

Page 7

 
Oliver Valves Limited
 
 
 
Independent Auditors' Report to the Members of Oliver Valves Limited (continued)


We have also considered the risk of fraud through management override of controls by:

Testing the appropriateness of journal entries and other adjustments, and identifying accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error.
Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them.  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 for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.


Use of our report
 

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





Chris Stewardson (senior statutory auditor)
for and on behalf of
Hurst Accountants Limited
Chartered Accountants
Statutory Auditors
3 Stockport Exchange
Stockport
Cheshire
SK1 3GG

7 March 2025
Page 8

 
Oliver Valves Limited
 
 
Statement of Comprehensive Income
For the year ended 30 September 2024

2024
2023
Note
£
£

  

Turnover
 4 
40,161,112
31,388,891

Cost of sales
  
(26,746,988)
(22,113,710)

Gross profit
  
13,414,124
9,275,181

Administrative expenses
  
(9,133,701)
(7,421,826)

Other operating income
 5 
1,679,613
1,680,000

Operating profit
 6 
5,960,036
3,533,355

Interest receivable and similar income
 10 
-
1,104

Interest payable and similar expenses
 11 
(75,156)
(78,831)

Profit before tax
  
5,884,880
3,455,628

Tax on profit
 12 
(1,469,943)
(520,375)

Profit for the financial year
  
4,414,937
2,935,253

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 14 to 28 form part of these financial statements.

Page 9

 
Oliver Valves Limited
Registered number: 01421817

Statement of Financial Position
As at 30 September 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 14 
2,694,773
2,790,912

Current assets
  

Stocks
 15 
1,982,143
4,522,634

Debtors: amounts falling due within one year
 16 
13,621,343
7,992,806

Cash at bank and in hand
 17 
920,934
58,868

  
16,524,420
12,574,308

Creditors: amounts falling due within one year
 18 
(9,112,146)
(7,573,520)

Net current assets
  
 
 
7,412,274
 
 
5,000,788

Total assets less current liabilities
  
10,107,047
7,791,700

Creditors: amounts falling due after more than one year
 19 
(221,981)
(320,002)

Provisions for liabilities
  

Deferred tax
 22 
(403,734)
(405,303)

Net assets
  
9,481,332
7,066,395


Capital and reserves
  

Called up share capital 
 23 
100,000
100,000

Profit and loss account
 24 
9,381,332
6,966,395

  
9,481,332
7,066,395


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



Dr Michael R Oliver OBE DL
Chairman

Date: 23 February 2025

The notes on pages 14 to 28 form part of these financial statements.

Page 10

 
Oliver Valves Limited
 

Statement of Changes in Equity
For the year ended 30 September 2024


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 October 2023
100,000
6,966,395
7,066,395


Comprehensive income for the year

Profit for the year
-
4,414,937
4,414,937
Total comprehensive income for the year
-
4,414,937
4,414,937


Contributions by and distributions to owners

Dividends: Equity capital
-
(2,000,000)
(2,000,000)


Total transactions with owners
-
(2,000,000)
(2,000,000)


At 30 September 2024
100,000
9,381,332
9,481,332


The notes on pages 14 to 28 form part of these financial statements.


Statement of Changes in Equity
For the year ended 30 September 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 October 2022
100,000
7,531,142
7,631,142


Comprehensive income for the year

Profit for the year
-
2,935,253
2,935,253
Total comprehensive income for the year
-
2,935,253
2,935,253


Contributions by and distributions to owners

Dividends: Equity capital
-
(3,500,000)
(3,500,000)


Total transactions with owners
-
(3,500,000)
(3,500,000)


At 30 September 2023
100,000
6,966,395
7,066,395


The notes on pages 14 to 28 form part of these financial statements.

Page 11

 
Oliver Valves Limited
 

Statement of Cash Flows
For the year ended 30 September 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
4,414,937
2,935,253

Adjustments for:

Depreciation of tangible assets
304,190
288,586

Profit on disposal of tangible assets
(2,578)
(4,367)

Interest paid
75,156
78,831

Interest received
-
(1,104)

Taxation charge
1,469,943
520,375

Decrease/(increase) in stocks
2,540,491
(253,036)

(Increase) in debtors
(5,538,339)
(537,174)

Decrease/(increase) in amounts owed by connected companies
294,018
(596,267)

Increase in creditors
312,911
794,648

Increase in amounts owed to connected companies
1,415,174
887,751

Corporation tax (paid)
(2,054,527)
(599,678)

Foreign currency movements on fixed assets
8,695
16,113

Net cash generated from operating activities

3,240,071
3,529,931


Cash flows from investing activities

Purchase of tangible fixed assets
(245,894)
(279,000)

Sale of tangible fixed assets
31,726
18,574

Interest received
-
1,104

Net cash from investing activities

(214,168)
(259,322)

Cash flows from financing activities

Repayment of loans
(53,099)
(42,358)

Repayment of finance leases
(35,582)
(35,021)

Dividends paid
(2,000,000)
(3,500,000)

Interest paid
(75,156)
(78,831)

Net cash used in financing activities
(2,163,837)
(3,656,210)

Net increase/(decrease) in cash and cash equivalents
862,066
(385,601)

Cash and cash equivalents at beginning of year
58,868
444,469

Cash and cash equivalents at the end of year
920,934
58,868


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
920,934
58,868


Page 12

 
Oliver Valves Limited
 

Analysis of Net Debt
For the year ended 30 September 2024





At 1 October 2023
Cash flows
Other non-cash changes
At 30 September 2024
£

£

£

£

Cash at bank and in hand

58,868

862,066

-

920,934

Debt due after 1 year

(194,311)

-

58,600

(135,711)

Debt due within 1 year

(106,494)

(465,900)

(74,926)

(647,320)

Finance leases

(162,732)

51,651

(16,069)

(127,150)


(404,669)
447,817
(32,395)
10,753

The notes on pages 14 to 28 form part of these financial statements.

Page 13

 
Oliver Valves Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

1.


General information

Oliver Valves Limited is a private company limited by share capital incorporated in England, registered number 01421817. The address of the registered office and principal place of business is Parkgate Industrial Estate, Knutsford, Cheshire, WA16 8DX.
The nature of the company’s operation and its principal activity is the manufacture of high performance instrument valves for the oil, gas, power generation and petrochemical industries on a global supply basis.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention 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 judgement in applying the company's accounting policies (see note 3).
The following principal accounting policies have been applied:

 
2.2

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.

Revenue is recognised in accordance with the terms agreed with the customer. This is normally once the goods have been inspected and are ready for collection.

Page 14

 
Oliver Valves Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

2.Accounting policies (continued)

 
2.3

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.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

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

Depreciation is provided on the following basis:

Freehold property
-
Over 50 years
Plant and machinery
-
10-50% straight line
Motor vehicles
-
25% straight line
Office equipment
-
15% & 33% straight line

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

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

 
2.4

Financial instruments

The company enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and loans to and from related parties.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of comprehensive income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the reporting date.

Page 15

 
Oliver Valves Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

2.Accounting policies (continued)

 
2.5

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.
At each reporting 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.

 
2.6

Debtors

Short-term debtors are measured at transaction price, less any impairment. 

 
2.7

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.

 
2.8

Creditors

Short-term creditors are measured at the transaction price.

 
2.9

Foreign currency translation

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. 

 
2.10

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.

 
2.11

Dividends

Equity dividends are recognised when they become legally payable.

 
2.12

Operating leases

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

Page 16

 
Oliver Valves Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

2.Accounting policies (continued)

 
2.13

Leased assets

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.14

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 statement of financial position. The assets of the plan are held separately from the company in independently administered funds.

 
2.15

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 reporting 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 reporting 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 reporting date.

 
2.16

Research and development

Research and development expenditure is written off in the year in which it is incurred.

Page 17

 
Oliver Valves Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The key sources of estimation, uncertainty and critical accounting judgements in applying the company’s policies are as follows:
Provision for obsolete and slow moving stocks
The company reviews its stocks to assess loss on account of obsolescence on a regular basis. In determining whether provision for obsolescence should be recorded in the profit or loss, the company makes judgements as to whether there is any observable data indicating that there is any future saleability of the product and the estimated net realisable value for such product. Accordingly, provision for impairment is made where the net realisable value is less than the cost based on best estimates by the management. The provision for obsolescence of stock is based on the ageing and historical sales pattern. At 30 September 2024, the carrying value of stocks was £1,982,143 (2023 - £4,522,634).
Other estimates and judgements
Management of the company also exercises significant judgement in estimating the useful life of tangible fixed assets. At 30 September 2024, the carrying value of tangible fixed assets was £2,694,773 (2023 - £2,790,912). Should these estimates vary, the profit or loss and balance sheet of the following years could be significantly impacted.


4.


Turnover

The whole of the turnover is attributable to the principal activity of the business.
A geographical analysis of turnover is as follows:

2024
2023
£
£

Europe (incl. UK)
12,326,123
7,215,439

Rest of the world
27,834,989
24,173,452

40,161,112
31,388,891



5.


Other operating income

2024
2023
£
£

Management recharges
1,679,613
1,680,000




Page 18

 
Oliver Valves Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

6.


Operating profit

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

2024
2023
£
£

Research & development charged as an expense
664,498
606,661

Exchange differences
(490,530)
(362,093)

Other operating lease rentals
21,529
28,584

Land and Building rentals
54,145
46,183


7.


Auditors' remuneration

During the year, the company obtained the following services from the company's auditors:


2024
2023
£
£

Fees payable to the company's auditors for the audit of the company's financial statements
15,120
14,400

Other services
1,890
1,800

8.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
5,924,472
5,078,467

Social security costs
613,103
505,503

Cost of defined contribution scheme
213,895
197,091

6,751,470
5,781,061


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


        2024
        2023
            No.
            No.







Production
45
47



Administration
68
59



Sales
30
30

143
136

Page 19

 
Oliver Valves Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
764,528
578,827

Company contributions to defined contribution pension schemes
10,328
13,506

774,856
592,333


During the year retirement benefits were accruing to 2 directors (2023 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £311,861 (2023 - £311,266).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2023 - £NIL).


10.


Interest receivable

2024
2023
£
£


Other interest receivable
-
1,104


11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
67,058
69,512

Other interest payable
8,098
9,319

75,156
78,831

Page 20

 
Oliver Valves Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
1,356,365
510,559

Adjustments in respect of previous periods
115,147
(9,342)


Total current tax
1,471,512
501,217

Deferred tax


Origination and reversal of timing differences
(1,569)
19,158


Taxation on profit on ordinary activities
1,469,943
520,375

Factors affecting tax charge for the year

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

2024
2023
£
£


Profit on ordinary activities before tax
5,884,880
3,455,628


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 -25%)
1,471,220
863,907

Effects of:


Expenses not deductible for tax purposes
14,617
13,865

Super deduction capital allowances
-
(3,177)

Depreciation on ineligible assets
14,000
18,006

Adjustments to tax charge in respect of prior periods
115,147
(9,342)

Research & development tax credit
(142,867)
(163,798)

Differences due to changes in tax rates
-
(84,442)

Double taxation relief
-
(110,616)

Other differences leading to an increase (decrease) in the tax charge
(2,174)
(4,028)

Total tax charge for the year
1,469,943
520,375


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 21

 
Oliver Valves Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

13.


Dividends

2024
2023
£
£

Ordinary A


Dividends paid on equity capital
2,000,000
3,500,000


14.


Tangible fixed assets





Land & buildings
Plant and machinery
Motor vehicles
Office equipment
Total

£
£
£
£
£



Cost


At 1 October 2023
2,297,056
2,328,903
229,640
2,036,799
6,892,398


Additions
-
29,949
12,433
203,512
245,894


Disposals
-
-
(33,750)
(109,099)
(142,849)


Exchange adjustments
-
-
-
3,811
3,811



At 30 September 2024

2,297,056
2,358,852
208,323
2,135,023
6,999,254



Depreciation


At 1 October 2023
383,014
1,750,496
145,374
1,822,602
4,101,486


Charge for the year
43,629
117,146
25,329
118,086
304,190


Disposals
-
-
(6,328)
(107,373)
(113,701)


Exchange adjustments
-
-
-
12,506
12,506



At 30 September 2024

426,643
1,867,642
164,375
1,845,821
4,304,481



Net book value



At 30 September 2024
1,870,413
491,210
43,948
289,202
2,694,773



At 30 September 2023
1,914,042
578,407
84,266
214,197
2,790,912

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


2024
2023
£
£



Plant and machinery
205,870
232,414



Page 22

 
Oliver Valves Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

15.


Stocks

2024
2023
£
£

Raw materials and consumables
1,240,727
3,072,152

Work in progress
410,069
845,318

Finished goods
331,347
605,164

1,982,143
4,522,634


An impairment of £163,414 (2023 - £83,498) was recognised in cost of sales against stock during the year.


16.


Debtors

2024
2023
£
£


Trade debtors
11,490,714
5,563,322

Amounts owed by connected companies
1,049,916
1,343,934

Other debtors
803,934
759,424

Prepayments and accrued income
276,779
326,126

13,621,343
7,992,806



17.


Cash

2024
2023
£
£

Cash at bank and in hand
920,934
58,868


Page 23

 
Oliver Valves Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

18.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank loans
47,433
41,932

Trade creditors
2,555,787
3,321,681

Amounts owed to connected companies
3,538,316
2,123,142

Corporation tax
-
198,799

Other taxation and social security
142,802
152,400

Obligations under finance lease and hire purchase contracts
40,880
37,041

Other creditors
1,054,495
440,221

Accruals and deferred income
1,732,433
1,258,304

9,112,146
7,573,520


Secured loans
Bank overdrafts and loans are secured by a legal charge over the freehold property of the company and a debenture over all the assets of the company. 
Interest is payable on the bank loan at a rate of 2.35% per annum over the Bank of England base rate. The bank loan is repayable in quarterly instalments over a period of 4 years. 
The amount owed to connected companies does not attract interest and is repayable on demand.
Net obligations under finance leases and hire purchase contracts are secured against the assets to which they relate.


19.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
135,711
194,311

Net obligations under finance leases and hire purchase contracts
86,270
125,691

221,981
320,002


Secured loans
Bank overdrafts and loans are secured by a legal charge over the freehold property of the company and a debenture over all the assets of the company. Interest is payable on the bank loan at a rate of interest of 2.35% p.a over the Bank of England base rate.
Net obligations under finance leases and hire purchase contracts are secured against the assets to which they relate.

Page 24

 
Oliver Valves Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

20.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
47,433
41,932

Amounts falling due 1-2 years

Bank loans
51,016
44,568

Amounts falling due 2-5 years

Bank loans
84,695
149,743


183,144
236,243



21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2024
2023
£
£


Within one year
51,651
37,041

Between 1-5 years
51,651
40,187

Over 5 years
43,043
85,504

146,345
162,732

Page 25

 
Oliver Valves Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

22.


Deferred taxation




2024
2023


£

£






At beginning of year
405,303
386,145


(Credited)/charged to profit or loss
(1,569)
19,158



At end of year
403,734
405,303

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
412,549
413,740

Other timing differences
(8,815)
(8,437)

403,734
405,303


23.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



50,100 (2023 - 50,100) Ordinary shares of £1.00 each
50,100
50,100
49,900 (2023 - 49,900) Ordinary A shares of £1.00 each
49,900
49,900

100,000

100,000

Ordinary shares do not qualify for dividend awards.  Ordinary and ordinary A shares rank pari passu in all other respects.



24.


Reserves

Profit and loss account
Comprises all current and prior period retained profits and losses.
Included within retained profits and losses are non-distributable reserves of £540,164 
(2023 - £543,982) in respect of revaluations of land and buildings, net of depreciation recognised in the profit and loss account in excess of depreciation applicable under the historical cost convention.

Page 26

 
Oliver Valves Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

25.


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 £213,895 (2023 - £197,091). Contributions totalling £35,259 (2023 - £33,746) were payable to the fund at the balance sheet date.


26.


Commitments under operating leases

At 30 September 2024 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£

Land and buildings


Not later than 1 year
56,665
16,379

Later than 1 year and not later than 5 years
13,805
-

70,470
16,379

2024
2023

£
£

Other


Not later than 1 year
21,217
21,863

Later than 1 year and not later than 5 years
10,763
31,979

31,980
53,842


27.


Related party transactions


2024
2023
£
£

Rental payments to directors
42,000
42,000
Management charges receivable from related companies
1,680,000
1,680,000
Purchases from related companies
13,241,793
11,240,882
Sales to related companies
711,008
474,403
Key management personnel compensation
714,741
666,146
Dividends paid to directors
2,000,000
3,500,000

Related companies consist of companies under common control and/or directorship. Balances existing at the year end with related companies in respect of the transactions above are detailed in the debtors and creditors notes.
Included within other creditors is an amount of £599,887
 (2023 - £64,562) payable to a director. Amounts advanced
during the year were £1,464,675 
(2023 - £3,521,258) and amounts repaid totalled £2,000,000 (2023 - £3,500,000).

Page 27

 
Oliver Valves Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

28.


Controlling party

The company is controlled by Dr Michael R Oliver OBE DL who holds the majority of the voting share capital.

 
Page 28