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Registered number: 02938776









Oliver Valvetek Limited









Annual Report and Financial Statements

For the year ended 30 September 2024

 
Oliver Valvetek 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
02938776



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 Valvetek 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 - 29


 
Oliver Valvetek 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 Valvetek Limited is a recognised global market leader in its field, supplying leading companies in the oil and gas sector with high specification, high performance valves for use in subsea applications. The business continues to grow from strength to strength. We have built an enviable global reputation in the industry for reliability, quality and innovation.
The financial year to 30th September 2024 was again highly impressive in terms of financial performance, delivering year on year growth in shipments and net profitability. We continue to invest in people, equipment and capacity to drive our future growth still further, and to constantly improve the offering we provide to our customers.
Shipments increased by 23.3% on the prior year, and we report turnover of £42.2 million for the full financial year. We continue to be on a strong trajectory of growth, and had anticipated another fantastic level of output following a very impressive improvement in 2023. 
Pre-tax profit also showed impressive year on year improvement, and we report £13.1 million for the full financial year. 
The management team continue to promote the principal that achieving robust gross margins are central to our ongoing success. This is a central pillar of how we manage the business. This, together with a continuous programme of cost management has enabled us to deliver extremely healthy financials this year.
As mentioned, we have built a reputation for innovation and continue to utilise our dedicated Research and Development team to bring yet more products and innovative solutions to the market. 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.
Our supply chain has experienced various challenges this year, impacted by a scarcity of raw materials, interruptions to global shipping, and the uncertainty caused by war and geopolitical issues around the world. Our stock levels have decreased, and it is worthy of note that a large proportion (40.1%) is work in progress and finished goods, to be shipped in the first quarter of the new financial year.
Trade receivables have increased year on year, a direct impact of the significant increase in shipments. We continually review our debtors, and work proactively with customers to recover funds in a timely manner. 
Net assets have increased significantly, we have a very healthy order book, and we have increased capacity and efficiency across the facility. The oil and gas sector has experienced some volitivity in recent years with a variety of external influences and restructuring activities with some of our key customers, but there are many opportunities for the business to pursue.
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 Valvetek 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
The ongoing events in the Middle East and Ukraine have impacted the global economy, causing uncertainty and challenges to the oil and gas sector. As a business we are not immune to this, as we operate internationally. We mitigate these challenges as far as possible, having contingencies in place to source material, giving due consideration to extended lead times etc.
Oil prices continue to fluctuate, and we monitor this carefully. We anticipate there will continue to be a high degree of movement as geopolitical events take effect, such as the change in political leadership in the United States. The management team regularly discuss and consider how these scenarios can impact the business. 
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 3.96 (2023 – 2.33)
Cashflow forecasting – our forecast for the coming year indicates a continued positive cash position.
Turnover – Actual £42.2M versus forecast £41.5M
Overhead expenditure – £5.7M vs prior year £5M
Inventory ratio 7:1 (2023 – 4:1) – high degree of WIP

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 Valvetek 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 £10,062,709 (2023 - £8,519,073).

Dividends paid during the year amounted to £3,500,000 (2023 - £3,000,000).

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

Opinion


We have audited the financial statements of Oliver Valvetek 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 Valvetek Limited
 
 
 
Independent Auditors' Report to the Members of Oliver Valvetek 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 Valvetek Limited
 
 
 
Independent Auditors' Report to the Members of Oliver Valvetek 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 Valvetek Limited
 
 
 
Independent Auditors' Report to the Members of Oliver Valvetek 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 Valvetek Limited
 
 
Statement of Comprehensive Income
For the year ended 30 September 2024

2024
2023
Note
£
£

  

Turnover
 4 
42,174,726
34,206,291

Cost of sales
  
(23,353,792)
(18,547,298)

Gross profit
  
18,820,934
15,658,993

Administrative expenses
  
(5,715,490)
(4,990,689)

Other operating income
 5 
57,608
57,608

Operating profit
 6 
13,163,052
10,725,912

Interest receivable and similar income
 10 
33,490
1,403

Interest payable and similar expenses
 11 
(70,868)
(92,390)

Profit before tax
  
13,125,674
10,634,925

Tax on profit
 12 
(3,062,965)
(2,115,852)

Profit for the financial year
  
10,062,709
8,519,073

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

The notes on pages 14 to 29 form part of these financial statements.

Page 9

 
Oliver Valvetek Limited
Registered number: 02938776

Statement of Financial Position
As at 30 September 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 14 
953,772
807,907

Investment property
 15 
1,051,427
1,036,344

  
2,005,199
1,844,251

Current assets
  

Stocks
 16 
6,300,653
7,705,822

Debtors: amounts falling due within one year
 17 
14,826,792
11,713,256

Cash at bank and in hand
 18 
2,316,705
122,430

  
23,444,150
19,541,508

Creditors: amounts falling due within one year
 19 
(5,927,069)
(8,376,202)

Net current assets
  
 
 
17,517,081
 
 
11,165,306

Total assets less current liabilities
  
19,522,280
13,009,557

Creditors: amounts falling due after more than one year
 20 
(506,713)
(595,380)

Provisions for liabilities
  

Deferred tax
  
(238,378)
(199,697)

Net assets
  
18,777,189
12,214,480


Capital and reserves
  

Called up share capital 
 23 
1,000
1,000

Profit and loss account
 24 
18,776,189
12,213,480

  
18,777,189
12,214,480


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 29 form part of these financial statements.

Page 10

 
Oliver Valvetek 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
1,000
12,213,480
12,214,480


Comprehensive income for the year

Profit for the year
-
10,062,709
10,062,709
Total comprehensive income for the year
-
10,062,709
10,062,709


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 2024
1,000
18,776,189
18,777,189



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
1,000
6,694,407
6,695,407


Comprehensive income for the year

Profit for the year
-
8,519,073
8,519,073
Total comprehensive income for the year
-
8,519,073
8,519,073


Contributions by and distributions to owners

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


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


At 30 September 2023
1,000
12,213,480
12,214,480


Page 11

 
Oliver Valvetek Limited
 

Statement of Cash Flows
For the year ended 30 September 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
10,062,709
8,519,073

Adjustments for:

Depreciation of tangible assets
177,141
172,773

Interest paid
70,868
92,390

Interest received
(33,490)
(1,403)

Taxation charge
3,062,965
2,115,852

Decrease/(increase) in stocks
1,405,169
(854,862)

(Increase) in debtors
(1,236,502)
(7,713,312)

(Increase) in amounts owed by connected companies
(1,877,034)
(17,437)

(Decrease)/increase in creditors
(1,965,327)
1,765,195

Increase/(decrease) in amounts owed to connected companies
714,777
(97,408)

Corporation tax (paid)
(4,222,867)
(637,938)

Net cash generated from operating activities

6,158,409
3,342,923


Cash flows from investing activities

Purchase of tangible fixed assets
(323,006)
(381,080)

Purchase of investment properties
(15,083)
-

Interest received
33,490
1,403

Net cash from investing activities

(304,599)
(379,677)

Cash flows from financing activities

Repayment of loans
(88,667)
(73,970)

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

Interest paid
(70,868)
-

Associates interest paid
-
(92,390)

Net cash used in financing activities
(3,659,535)
(3,166,360)

Net increase/(decrease) in cash and cash equivalents
2,194,275
(203,114)

Cash and cash equivalents at beginning of year
122,430
325,544

Cash and cash equivalents at the end of year
2,316,705
122,430


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,316,705
122,430


Page 12

 
Oliver Valvetek 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

122,430

2,194,275

-

2,316,705

Debt due after 1 year

(595,380)

106,049

(17,382)

(506,713)

Debt due within 1 year

(161,420)

35,707

17,382

(108,331)


(634,370)
2,336,031
-
1,701,661

Page 13

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

1.


General information

Oliver Valvetek Limited is a private company limited by share capital incorporated in England, registered number 02938776. 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 pipeline 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

Foreign currency translation

Functional and presentational currency
The company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. 

Page 14

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

2.Accounting policies (continued)

 
2.3

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.

 
2.4

Operating leases

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

 
2.5

Research and development

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

 
2.6

Interest income

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

 
2.7

Finance costs

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

Page 15

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

2.Accounting policies (continued)

 
2.8

Pensions

Defined contribution pension plan

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

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

 
2.9

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the 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.

 
2.10

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.

Page 16

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

2.Accounting policies (continued)


2.10
Tangible fixed assets (continued)

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

Depreciation is provided on the following basis:

Leasehold improvements
-
Over the life of the lease
Plant and machinery
-
10% or 50% straight line
Fixtures and fittings
-
15% to 33.3% 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.

 
2.11

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

 
2.12

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. The impairment loss is recognised immediately in profit or loss.

 
2.13

Debtors

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

 
2.14

Cash and cash equivalents

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

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

Page 17

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

2.Accounting policies (continued)

 
2.15

Creditors

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

 
2.16

Provisions for liabilities

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

 
2.17

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.

 
2.18

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 18

 
Oliver Valvetek 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 £6,300,653 (2023 -
£7,705,822)
.
Investment property
The management of the company exercises significant judgement in estimating the fair value of property. At 30 September 2024, the company has investment property with a carrying value of £1,051,427 (2023 - £1,036,344).
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 £953,772 (2023 - £807,907).
Should these estimates vary, the income statement and statement of financial position 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)
12,422,466
6,492,715

Rest of the world
29,752,260
27,713,576

42,174,726
34,206,291



5.


Other operating income

2024
2023
£
£

Rental income
57,608
57,608




Page 19

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

6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Research & development charged as an expense
1,029,452
938,889

Exchange differences
(107,589)
(165,819)

Other operating lease rentals
2,247
2,146

Land and building rentals
294,000
294,000


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
10,605
12,600

Other Services
4,305
1,600

8.


Employees

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


2024
2023
£
£

Wages and salaries
4,334,172
3,788,871

Social security costs
452,174
386,073

Cost of defined contribution scheme
178,411
159,341

4,964,757
4,334,285


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


        2024
        2023
            No.
            No.







Production
67
60



Administration
39
38



Sales
5
4

111
102

Page 20

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

9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
252,324
248,879

Company contributions to defined contribution pension schemes
16,321
15,185

268,645
264,064


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 £139,701 (2023 - £136,307).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £8,493 (2023 - £7,804).


10.


Interest receivable

2024
2023
£
£


Other interest receivable
33,490
1,403


11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
70,748
92,246

Other interest payable
120
144

70,868
92,390

Page 21

 
Oliver Valvetek 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
3,024,284
2,063,583


Deferred tax


Origination and reversal of timing differences
38,681
52,269


Taxation on profit on ordinary activities
3,062,965
2,115,852

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
13,125,674
10,634,925


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 -25%)
3,281,419
2,658,731

Effects of:


Expenses not deductible for tax purposes
166
214

Depreciation on ineligible assets
2,712
3,059

Super deduction capital allowances
-
(12,241)

Short term timing difference leading to an increase (decrease) in taxation
-
112

Differences due to changes in tax rates
-
(280,522)

Research and development tax credit
(221,332)
(253,501)

Total tax charge for the year
3,062,965
2,115,852


13.


Dividends

2024
2023
£
£

Ordinary A


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

Page 22

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

14.


Tangible fixed assets





Leasehold improvements
Plant and machinery
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 October 2023
417,961
2,159,150
338,217
2,915,328


Additions
6,989
316,017
-
323,006



At 30 September 2024

424,950
2,475,167
338,217
3,238,334



Depreciation


At 1 October 2023
137,857
1,641,574
327,990
2,107,421


Charge for the year
35,136
138,714
3,291
177,141



At 30 September 2024

172,993
1,780,288
331,281
2,284,562



Net book value



At 30 September 2024
251,957
694,879
6,936
953,772



At 30 September 2023
280,104
517,576
10,227
807,907


15.


Investment property


Freehold investment property

£



Valuation


At 1 October 2023
1,036,344


Additions
15,083



At 30 September 2024
1,051,427

No formal valuation has been carried out on the investment property as management have assessed the difference between carrying value and fair value to be immaterial.



Page 23

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

16.


Stocks

2024
2023
£
£

Raw materials and consumables
3,723,807
4,186,896

Work in progress
2,575,138
3,513,695

Finished goods
1,708
5,231

6,300,653
7,705,822


An impairment charge of £293,745 (2023 - £132,435) was recognised in cost of sales against stock during the year.


17.


Debtors

2024
2023
£
£


Trade debtors
12,438,729
11,321,373

Amounts owed by connected companies
2,081,574
204,540

Other debtors
120,537
23,780

Prepayments and accrued income
185,952
163,563

14,826,792
11,713,256



18.


Cash

2024
2023
£
£

Cash at bank and in hand
2,316,705
122,430


Page 24

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

19.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank loans
106,049
106,049

Trade creditors
3,408,307
5,370,364

Amounts owed to connected companies
722,638
7,861

Corporation tax
398,108
1,596,691

Other taxation and social security
104,884
113,390

Other creditors
499,290
239,689

Accruals and deferred income
687,793
942,158

5,927,069
8,376,202


Secured loans
Bank overdrafts and loans are secured by a legal charge over the investment property of the company and a debenture over all the assets of the company. 
Interest is payable on the bank loans at rates of 3.75% and 2.48% per annum over the Bank of England base rate. The bank loans are repayable in monthly instalments over a period of 4 to 7 years. 
The amount owed to connected companies does not attract interest and is repayable on demand.


20.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
506,713
595,380


Secured loans
Bank loans are secured by a legal charge over the investment property of the company and a debenture over all the assets of the company. 
Interest is payable on the bank loans at rates of interest of 3.75% and 2.48% p.a over the Bank of England base rate.

Page 25

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

21.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
106,049
106,049

Amounts falling due 1-2 years

Bank loans
238,754
287,272

Amounts falling due 2-5 years

Bank loans
267,959
308,108


612,762
701,429



22.


Deferred taxation




2024


£






At beginning of year
199,697


Charged to profit or loss
38,681



At end of year
238,378

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
247,146
207,492

Other timing differences
(8,768)
(7,795)

238,378
199,697

Page 26

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

23.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



450 (2023 - 450) Ordinary shares of £1.00 each
450
450
550 (2023 - 550) Ordinary A shares of £1.00 each
550
550

1,000

1,000


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.


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 £178,411 (2023 - £159,341). Contributions totalling £35,520  (2023 - £31,182) were payable to the fund at the reporting date.

Page 27

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

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
294,000
255,000

Later than 1 year and not later than 5 years
306,000
567,500

Later than 5 years
-
32,500

600,000
855,000

2024
2023

£
£

Other operating leases


Not later than 1 year
2,311
2,156

Later than 1 year and not later than 5 years
1,292
2,450

3,603
4,606


27.


Related party transactions


2024
2023
£
£

Sales to related companies
470
643
Management charges payable to related companies
960,000
960,000
Purchases from related companies
1,565,854
970,596
Rental payments to a pension fund that the director is beneficiary in
110,000
110,000
Key management personnel compensation
266,475
262,173
Dividends paid to directors
3,500,000
3,000,000
Rental payments to directors
42,000
42,000
Rental payments to family members of directors
80,000
80,000

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 £2,282 
(2023 - £55,371) payable to a director. Amounts advanced during the year totalled £4,383,089 (2023 - £2,991,689) and amounts repaid totalled £4,330,000 (2023 - £3,000,000).

Page 28

 
Oliver Valvetek 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 29