Company registration number 00415969 (England and Wales)
SILVERSON MACHINES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
SILVERSON MACHINES LIMITED
COMPANY INFORMATION
Directors
Mr. H. Rothman
Mr. D. Rothman
Company number
00415969
Registered office
325-327 Oldfield Lane North
Greenford
Middlesex
UB6 0FX
Auditor
Landau Morley LLP
325-327 Oldfield Lane North
Greenford
Middlesex
UB6 0FX
Bankers
Barclays Bank Plc
102 The Broadway
Chesham
Bucks
HP5 1DY
SILVERSON MACHINES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 21
SILVERSON MACHINES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The directors present the strategic report for the year ended 30 June 2024.
Fair review of the business
The principal activity of the company is the engineering and manufacturing of mixing machines. The directors continue to be pleased with the company's performance. The company operates in a global market and seeks to continue to maintain its reputation as a highly regarded manufacturer of quality products.
The company's turnover for the year was £24.7m (2023: £22.1m) and its operating profit amounted to £9.2m (2023: £8.1m). The statement of financial position on page 9 shows a strong position and at the balance sheet date the current ratio is 1.6 (2023: 3.2).
Principal risks and uncertainties
The company's operations expose it to a variety of financial risks including price risk, credit risk, liquidity risk and exchange rate risk. There are a number of controls in place to limit the adverse effects of these risks on the financial performance of the company which are outlined in the directors' report.
The company is also subject to risks and uncertainty associated with the general economy. The company trades in a range of markets, from small machines used in laboratories to large machines used in oil extraction. Given the diverse product range, the directors feel the company can maintain strong sales performance in a variety of economic conditions.
The markets for the company's products are international and the company trades in numerous countries, providing a solid base for maintaining turnover. The United Kingdom leaving the European Union has not had a significant impact on sales volumes and, despite a downturn in the world economy, the directors are satisfied with the company's performance.
There are, however, areas of uncertainty that could negatively impact the company’s performance in the immediate future. There is no end in sight to the regional instability in the Middle East and trading conditions remain difficult in various parts of the world. Growth in Germany, traditionally the strongest European economy, remains very low and there is also an economic slowdown in China. Furthermore, following the US election, import tariffs on goods sold to the US remain a distinct possibility which could impact the volume of trade with that country.
Development and performance
During the year, the company successfully managed its supply chain to return increased profits despite disruption caused by the ongoing conflict in Ukraine. The company increased sales by 12% compared to previous year.
Key performance indicators
The directors' monitor the company's performance based on three key indicators: sales and associated gross profit margins; the state of the order book and the level of cash reserves.
Despite challenging trading conditions, turnover remains strong, at over £20m for four of the last five years and showing steady growth for the last seven years.
Cost control continues to be good, although costs have increased, these have been outweighed by the rise in turnover returning Silverson Machines Ltd to gross profit margin of 50% last seen in 2022. This has enabled profit before tax of £9.3m which is an increase on the previous year.
At the year end, the company is in a good financial position as it has a strong order book and a healthy Balance Sheet with substantial cash reserves of £4.6m.
SILVERSON MACHINES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Other performance indicators
The company continues to operate its own Apprentice School and there is an intake of new students every year who learn the engineering skills and techniques relevant to the Company's manufacturing process and achieve a recognised academic qualification. These apprentices then often progress to become part of the company's workforce contributing to manufacturing efficiency.
There is also a programme of research and development to enhance existing products and develop new models and techniques to enable the company to offer a greater variety of machines which will assist the company to maintain its market position and take advantage of any new opportunities.The programme continues to operate, although work in this area on specific major projects has been at a reduced level this year.
As a result of the above factors, the directors feel that the company is well placed to maintain its strong performance and achieve its objectives in future years.
Mr. H. Rothman
Director
11 March 2025
SILVERSON MACHINES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 June 2024.
Principal activities
The principal activity of the company continued to be that of manufacture of Mixing Machines.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr. H. Rothman
Mr. D. Rothman
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £6,500,000. The directors do not recommend payment of a further dividend.
Financial instruments
Liquidity Risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Exchange Rate Risk
The company's sales are principally invoiced in sterling. The company is exposed to exchange rate risk on monies held in foreign currency bank accounts and, to an insignificant degree, on sales invoiced in foreign currency. The directors attempt to mitigate such risks by monitoring relevant currency movements in order to plan the timing of transactions.
Credit Risk
Investments of cash surpluses are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Price Risk
The company is exposed to general price risk as a result of its operations and has systems in operation to manage such risks which are appropriate to the size of the company and the achievable potential benefits.
Research and development
The company is engaged in an ongoing programme of research and development which involves undertaking application studies and testing of new machines and concepts which are designed and resulting prototypes fabricated in-house. Whilst activity in this area on specific major projects has been at a reduced level this year the programme is ongoing.
SILVERSON MACHINES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr. H. Rothman
Director
11 March 2025
SILVERSON MACHINES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SILVERSON MACHINES LIMITED
- 5 -
Opinion
We have audited the financial statements of Silverson Machines Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 June 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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.
SILVERSON MACHINES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SILVERSON MACHINES LIMITED (CONTINUED)
- 6 -
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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations - this responsibility lies with management with the oversight of the directors.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
SILVERSON MACHINES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SILVERSON MACHINES LIMITED (CONTINUED)
- 7 -
Except for any known or possible non-compliance, and as required by auditing standards, our work in respect of these included enquiry of management about company's policies, procedures, and related controls regarding compliance with laws and regulations and if there are any known instances of non-compliance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).
The potential effects of inherent limitations are particularly significant in the case of misstatement resulting from fraud because fraud may involve sophisticated and carefully organized schemes designed to conceal it, including deliberate failure to record transactions, collusion or intentional misrepresentations being made to us.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Sabrina Dunn FCA
Senior Statutory Auditor
For and on behalf of Landau Morley LLP
11 March 2025
Chartered Accountants
Statutory Auditor
325-327 Oldfield Lane North
Greenford
Middlesex
UB6 0FX
SILVERSON MACHINES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
Notes
£
£
Turnover
4
24,765,363
22,104,649
Cost of sales
(12,266,194)
(11,625,592)
Gross profit
12,499,169
10,479,057
Distribution costs
(1,538,275)
(991,116)
Administrative expenses
(1,774,789)
(1,411,989)
Operating profit
3
9,186,105
8,075,952
Interest receivable and similar income
8
73,939
49,578
Interest payable and similar expenses
9
(36,248)
Profit before taxation
9,223,796
8,125,530
Tax on profit
10
(1,762,605)
(1,763,784)
Profit for the financial year
7,461,191
6,361,746
The income statement has been prepared on the basis that all operations are continuing operations.
SILVERSON MACHINES LIMITED
STATEMENT OF FINANCIAL POSITION
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
11,268,274
4,098,279
Current assets
Stocks
12
11,932,093
10,966,969
Debtors
13
4,386,517
2,580,196
Cash at bank and in hand
4,579,931
6,291,669
20,898,541
19,838,834
Creditors: amounts falling due within one year
14
(13,318,729)
(6,266,161)
Net current assets
7,579,812
13,572,673
Total assets less current liabilities
18,848,086
17,670,952
Provisions for liabilities
Deferred tax liability
15
662,413
446,470
(662,413)
(446,470)
Net assets
18,185,673
17,224,482
Capital and reserves
Called up share capital
17
104
104
Share premium account
18
995,396
995,396
Profit and loss reserves
19
17,190,173
16,228,982
Total equity
18,185,673
17,224,482
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 11 March 2025 and are signed on its behalf by:
Mr. H. Rothman
Director
Company registration number 00415969 (England and Wales)
SILVERSON MACHINES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2022
104
995,396
15,367,236
16,362,736
Year ended 30 June 2023:
Profit and total comprehensive income
-
-
6,361,746
6,361,746
Dividends
-
-
(5,500,000)
(5,500,000)
Balance at 30 June 2023
104
995,396
16,228,982
17,224,482
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
7,461,191
7,461,191
Dividends
-
-
(6,500,000)
(6,500,000)
Balance at 30 June 2024
104
995,396
17,190,173
18,185,673
SILVERSON MACHINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
1
Accounting policies
Company information
Silverson Machines Limited is a private company limited by shares incorporated in England and Wales. The registered office is 325-327 Oldfield Lane North, Greenford, Middlesex, UB6 0FX.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’ – Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Silverson Machines Holdings Limited. These consolidated financial statements are available from its registered office.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.3
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred.
1.4
Tangible fixed assets
Tangible fixed assets are measured at cost net of depreciation and any impairment losses.
SILVERSON MACHINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 12 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
No depreciation provided
Leasehold land and buildings
To reduce to nil over remaining period of the Lease
Plant and equipment
20% reducing balance
Fixtures and fittings
15% reducing balance
Computers
25% reducing balance
Motor vehicles
20% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments, which have been identified as consisting of basic only, are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets are all classified as receivable within one year and therefore are not amortised.
SILVERSON MACHINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies are initially recognised at transaction price. Financial liabilities are all classified as payable within one year and therefore are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities as they are due within one year or less.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
SILVERSON MACHINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.11
Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
SILVERSON MACHINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Stock
Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell. Additionally, at the end of each reporting period stock is reviewed for impairment to ensure that values recorded are not more than their recoverable amount. Calculating impairment provisions require judgements to be made, which include forecasting consumer demand, and assessing the promotional, competitive and economic environments and inventory loss trends.
3
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
63,343
(145,466)
Research and development costs
49,154
53,008
Depreciation of owned tangible fixed assets
387,264
401,445
Loss/(profit) on disposal of tangible fixed assets
2,004
(2,951)
4
Turnover
The turnover is attributable to the one principal activity of the company. An analysis of the turnover by the geographical markets that substantially differ from each other is given below:
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
3,252,718
2,690,979
Overseas
21,512,645
19,413,670
24,765,363
22,104,649
SILVERSON MACHINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
79,808
55,250
For other services
All other non-audit services
8,708
10,923
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Production staff
103
95
Distribution staff
14
14
Administrative staff
18
15
Total
135
124
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
6,664,307
6,623,219
Social security costs
735,544
719,129
Pension costs
130,267
124,095
7,530,118
7,466,443
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
448,031
424,127
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
SILVERSON MACHINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
7
Directors' remuneration
(Continued)
- 17 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
225,324
216,464
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
73,939
49,117
Other interest income
461
Total income
73,939
49,578
9
Interest payable and similar expenses
2024
2023
£
£
Other interest
36,248
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,551,040
1,704,646
Adjustments in respect of prior periods
(4,378)
Total current tax
1,546,662
1,704,646
Deferred tax
Origination and reversal of timing differences
215,943
(48,015)
Changes in tax rates
107,153
Total deferred tax
215,943
59,138
Total tax charge
1,762,605
1,763,784
SILVERSON MACHINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
10
Taxation
(Continued)
- 18 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
9,223,796
8,125,530
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
2,305,949
2,031,383
Tax effect of expenses that are not deductible in determining taxable profit
7,991
17,213
Gains not taxable
(738)
Adjustments in respect of prior years
(4,378)
Effect of change in corporation tax rate
(290,930)
Group relief
(772,356)
Depreciation on assets not qualifying for tax allowances
225,399
6,856
Taxation charge for the year
1,762,605
1,763,784
11
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 July 2023
2,981,690
7,623,316
10,605,006
Additions
7,198,883
393,487
7,592,370
Disposals
(87,630)
(87,630)
Transfers
(30,099)
30,099
At 30 June 2024
10,150,474
7,959,272
18,109,746
Depreciation and impairment
At 1 July 2023
537,815
5,968,912
6,506,727
Depreciation charged in the year
71,645
315,619
387,264
Eliminated in respect of disposals
(52,519)
(52,519)
At 30 June 2024
609,460
6,232,012
6,841,472
Carrying amount
At 30 June 2024
9,541,014
1,727,260
11,268,274
At 30 June 2023
2,443,875
1,654,404
4,098,279
SILVERSON MACHINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
12
Stocks
2024
2023
£
£
Raw materials and consumables
967,820
845,449
Work in progress
1,957,331
2,126,321
Finished goods and goods for resale
9,006,942
7,995,199
11,932,093
10,966,969
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,816,587
1,836,751
Other debtors
216,147
284,581
Prepayments and accrued income
353,783
458,864
4,386,517
2,580,196
14
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,317,008
1,972,755
Amounts owed to group undertakings
10,948,597
2,113,152
Corporation tax
552,910
639,186
Other creditors
26,631
24,990
Accruals and deferred income
473,583
1,516,078
13,318,729
6,266,161
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
662,413
446,470
SILVERSON MACHINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
15
Deferred taxation
(Continued)
- 20 -
2024
Movements in the year:
£
Liability at 1 July 2023
446,470
Charge to profit or loss
215,943
Liability at 30 June 2024
662,413
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
130,267
124,095
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
10,420
10,420
104
104
18
Share premium account
This reserve records the amount above the nominal value received for shares issued, less transaction costs.
19
Profit and loss reserves
This reserve records retained earnings and accumulated losses.
20
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
384,532
408,790
Between two and five years
1,015,092
1,140,626
In over five years
1,969,100
2,174,911
3,368,724
3,724,327
SILVERSON MACHINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
21
Ultimate controlling party
The ultimate parent undertaking is Silverson Machines Holdings Limited, a company incorporated in the United Kingdom, whose registered office is 325-327 Oldfield Lane North, Greenford, Middlesex, UB6 0FX.
22
Related party transactions
The company was under the control of the Rothman family, principally Messrs H. & D. Rothman throughout the current and previous year.
The profit and loss account includes transactions with companies under common control comprising of sales of £7,554,707 (2023: £7,713,777) and management fees receivable of £790,221 (2023: £807,766).
At the year end an amount of £10,948,597 (2023: £2,113,152) was due to the parent undertaking and amounts totalling £2,555,482 (2023: £546,440) were due from companies under common control.
The profit and loss account has also been charged with rent of £73,000 (2023: £73,000) payable to the directors and £85,000 (2023: £85,000) payable to a self investment pension plan for their benefit.
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