Company registration number 06136694 (England and Wales)
CAPITAL INJECTION CERAMICS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
CAPITAL INJECTION CERAMICS LIMITED
COMPANY INFORMATION
Directors
M L Stuart-Harris
J P R Newsome
S J Harris
Secretary
D H Newsome
Company number
06136694
Registered office
Capital Refractories Limited
Station Road
Clowne
S43 4AB
Auditor
BHP LLP
2 Rutland Park
Sheffield
S10 2PD
Bankers
Lloyds Bank
1 High Street
Sheffield
S1 2GA
CAPITAL INJECTION CERAMICS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 21
CAPITAL INJECTION CERAMICS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 1 -
The directors present the strategic report for the year ended 30 November 2024.
Review of the business
The principal activity of the company continued to be the manufacture and sale of injected ceramic cores for aerospace and industrial gas turbines.
The directors are pleased to report a profit of £1.8m (2023: £2.2m) for the year ended 30 November 2024. The company net assets increased from £5.9m to £6.7m due to positive trading results and a focus on working capital management to enable sustainable growth.
The directors are confident in the future growth opportunities for the company. They believe that the company is in a good financial position and identified risks are being well managed.
The company invested in new production capacity to support future growth, and to enhance technical capability and product complexity.
Principal risks and uncertainties
Given the nature of the company's activities, the directors regard the principal risks to be foreign currency exposure and trade debt from the global market in which they operate. The directors regularly review their risks and take appropriate action to mitigate them.
Future developments
The directors will continue to develop strategic plans to improve the long term performance of the business. The directors will continue to review new technologies and automation that enables reduced lead times and improved
production tolerances.
Key performance indicators
The principal key performance indicators used by the directors to monitor the company are as follows:
Turnover - £12.1m (2023: £11.1m)
Operating profit - £2.3m (2023: £2.8 m)
J P R Newsome
Director
13 March 2025
CAPITAL INJECTION CERAMICS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 2 -
The directors present their annual report and financial statements for the year ended 30 November 2024.
Principal activities
The principal activity of the company is that of the manufacture of ceramic cores and associated products.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £1,000,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
M L Stuart-Harris
J P R Newsome
S J Harris
Research and development
The company engages in research and development activities with the main activities being process improvement.
Auditor
The auditor, BHP LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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; and
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.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments and financial instruments.
CAPITAL INJECTION CERAMICS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 3 -
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.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
J P R Newsome
Director
13 March 2025
CAPITAL INJECTION CERAMICS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CAPITAL INJECTION CERAMICS LIMITED
- 4 -
Opinion
We have audited the financial statements of Capital Injection Ceramics Limited (the 'company') for the year ended 30 November 2024 which comprise the statement of comprehensive income, the balance sheet, 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 November 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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.
CAPITAL INJECTION CERAMICS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CAPITAL INJECTION CERAMICS LIMITED (CONTINUED)
- 5 -
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.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations
we identified the laws and regulations applicable to the company through discussions with the directors and other management, and from our commercial knowledge and experience of the sector
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including Companies Act 2006, taxation legislation, employment and health and safety legislation
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
CAPITAL INJECTION CERAMICS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CAPITAL INJECTION CERAMICS LIMITED (CONTINUED)
- 6 -
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships
tested journal entries to identify unusual transactions
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation
enquiring of management as to actual and potential litigation and claims
discussions with senior management regarding relevant regulations and reviewing the company’s legal and professional fees.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities 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.
Adrian Staniforth (Senior Statutory Auditor)
For and on behalf of BHP LLP, Statutory Auditor
Chartered Accountants
2 Rutland Park
Sheffield
S10 2PD
13 March 2025
CAPITAL INJECTION CERAMICS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 7 -
2024
2023
as restated
Notes
£
£
Turnover
3
12,114,299
11,116,594
Cost of sales
(6,903,810)
(5,816,821)
Gross profit
5,210,489
5,299,773
Administrative expenses
(2,887,398)
(2,534,194)
Operating profit
4
2,323,091
2,765,579
Interest receivable and similar income
7
66,982
29,438
Interest payable and similar expenses
8
(750)
(3,256)
Profit before taxation
2,389,323
2,791,761
Tax on profit
9
(618,079)
(619,059)
Profit for the financial year
1,771,244
2,172,702
The profit and loss account has been prepared on the basis that all operations are continuing operations.
CAPITAL INJECTION CERAMICS LIMITED
BALANCE SHEET
AS AT 30 NOVEMBER 2024
30 November 2024
- 8 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
11
151,320
168,950
Tangible assets
12
2,193,271
1,656,243
2,344,591
1,825,193
Current assets
Stocks
13
1,077,588
1,061,835
Debtors
14
3,751,959
2,908,068
Cash at bank and in hand
1,589,538
1,897,251
6,419,085
5,867,154
Creditors: amounts falling due within one year
15
(1,447,499)
(1,368,414)
Net current assets
4,971,586
4,498,740
Total assets less current liabilities
7,316,177
6,323,933
Provisions for liabilities
Deferred tax liability
16
616,000
395,000
(616,000)
(395,000)
Net assets
6,700,177
5,928,933
Capital and reserves
Called up share capital
18
20,000
20,000
Profit and loss reserves
6,680,177
5,908,933
Total equity
6,700,177
5,928,933
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 13 March 2025 and are signed on its behalf by:
M L Stuart-Harris
J P R Newsome
Director
Director
Company registration number 06136694 (England and Wales)
CAPITAL INJECTION CERAMICS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 30 November 2023:
Balance at 1 December 2022
20,000
5,136,231
5,156,231
Year ended 30 November 2023:
Profit and total comprehensive income
-
2,172,702
2,172,702
Dividends
10
-
(1,400,000)
(1,400,000)
Balance at 30 November 2023
20,000
5,908,933
5,928,933
Year ended 30 November 2024:
Profit and total comprehensive income
-
1,771,244
1,771,244
Dividends
10
-
(1,000,000)
(1,000,000)
Balance at 30 November 2024
20,000
6,680,177
6,700,177
CAPITAL INJECTION CERAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 10 -
1
Accounting policies
Company information
Capital Injection Ceramics Limited is a private company limited by shares incorporated in England and Wales. The registered office is Capital Refractories Limited, Station Road, Clowne, S43 4AB.
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:
The financial statements of the company are consolidated in the financial statements of Capital Refractories Limited. These consolidated financial statements are available from its registered office, Station Road, Clowne, S43 4AB.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
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.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation 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:
Software
10 years
CAPITAL INJECTION CERAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 11 -
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
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:
Leasehold improvements
20% reducing balance
Plant and machinery
20% reducing balance
Fixtures, fittings & equipment
15% 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.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
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.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
CAPITAL INJECTION CERAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 12 -
1.9
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 are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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 classified as receivable within one year are not amortised.
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 that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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 if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
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.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
CAPITAL INJECTION CERAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 13 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.15
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.
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.
CAPITAL INJECTION CERAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 14 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Tangible assets
The charge in respect of depreciation is derived after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of the company’s assets may vary depending on several factors such as, technological innovation, maintenance programmes and future market conditions. They are determined by management at the time the asset is acquired and reviewed annually for appropriateness.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by geographical market
UK
2,159,376
1,806,549
EC and Europe
4,367,258
3,553,955
Rest of the World
5,587,665
5,756,090
12,114,299
11,116,594
2024
2023
£
£
Other revenue
Interest income
66,982
29,438
No further geographical split of sales is presented as in the opinion of the directors this would be prejudicial to the interests of the entity.
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
69,371
120,260
Fees payable to the company's auditor for the audit of the company's financial statements
13,750
11,000
Depreciation of owned tangible fixed assets
535,539
316,889
Profit on disposal of tangible fixed assets
-
(3,675)
Amortisation of intangible assets
17,630
7,345
Operating lease charges
290,597
202,628
CAPITAL INJECTION CERAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 15 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Production
74
64
Admin
5
5
Total
79
69
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,331,890
1,919,177
Social security costs
207,270
167,943
Pension costs
156,206
145,114
2,695,366
2,232,234
6
Directors' remuneration
No remuneration was paid to the directors.
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
53,726
29,438
Other interest income
13,256
Total income
66,982
29,438
8
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
-
3,256
Other interest
750
750
3,256
CAPITAL INJECTION CERAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 16 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
395,540
146,467
Group tax relief
251,592
Total UK current tax
395,540
398,059
Foreign current tax on profits for the current period
1,539
Total current tax
397,079
398,059
Deferred tax
Origination and reversal of timing differences
221,000
221,000
Total tax charge
618,079
619,059
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
2,389,323
2,791,761
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.01%)
597,331
642,384
Tax effect of expenses that are not deductible in determining taxable profit
73
329
Double tax relief
(874)
(666)
Permanent capital allowances in excess of depreciation
18,603
(16,663)
Remeasurement of deferred tax for changes in tax rates
17,681
Additional deduction for R&D expenditure
(22,781)
Foreign tax paid in the year
1,539
Deferred tax not recignised
1,407
(1,225)
Taxation charge for the year
618,079
619,059
10
Dividends
2024
2023
£
£
Final paid
1,000,000
1,400,000
CAPITAL INJECTION CERAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 17 -
11
Intangible fixed assets
Software
£
Cost
At 1 December 2023 and 30 November 2024
176,295
Amortisation and impairment
At 1 December 2023
7,345
Amortisation charged for the year
17,630
At 30 November 2024
24,975
Carrying amount
At 30 November 2024
151,320
At 30 November 2023
168,950
12
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 1 December 2023
237,439
5,041,608
65,617
5,344,664
Additions
1,072,567
1,072,567
At 30 November 2024
237,439
6,114,175
65,617
6,417,231
Depreciation and impairment
At 1 December 2023
195,920
3,439,047
53,454
3,688,421
Depreciation charged in the year
8,304
525,411
1,824
535,539
At 30 November 2024
204,224
3,964,458
55,278
4,223,960
Carrying amount
At 30 November 2024
33,215
2,149,717
10,339
2,193,271
At 30 November 2023
41,519
1,602,561
12,163
1,656,243
13
Stocks
2024
2023
£
£
Raw materials and consumables
928,434
886,220
Work in progress
149,154
175,615
1,077,588
1,061,835
CAPITAL INJECTION CERAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 18 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,952,166
2,398,775
Corporation tax recoverable
91,871
Other debtors
799,793
417,422
3,751,959
2,908,068
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
838,656
616,708
Amounts owed to group undertakings
17,387
267,744
Corporation tax
226,541
Other taxation and social security
57,970
43,766
Other creditors
11,051
7,683
Accruals and deferred income
295,894
432,513
1,447,499
1,368,414
16
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
617,000
396,000
Short term timing differences
(1,000)
(1,000)
616,000
395,000
2024
Movements in the year:
£
Liability at 1 December 2023
395,000
Charge to profit or loss
221,000
Liability at 30 November 2024
616,000
CAPITAL INJECTION CERAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 19 -
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
156,206
145,114
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.
Accrued pension contributions at the year end in respect of defined contribution schemes amounted to £4,368 (2023: £3,221)
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
20,000
20,000
20,000
20,000
19
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
242,902
218,909
Between two and five years
145,371
278,501
388,273
497,410
20
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
284,880
581,789
CAPITAL INJECTION CERAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 20 -
21
Related party transactions
S J Harris
S J Harris owns 25% of the share capital of Capital Injection Ceramics Limited and 50% of the share capital of Microtech Sales UK Ltd.
At the year end a balance of £123,286 (2023: £88,094) was owed to Microtech Sales UK Limited and is included in creditors. Transactions during the year totalled £1,087,317 (2023: £941,873).
S J Harris also owns 35% of the share capital of KP Studio Limited.
At the year end a balance of £34,530 (2023: £59,628) was owed to KP Studio Limited and is included in creditors. Transactions during the year totalled £116,875 (2023: £441,250).
22
Ultimate controlling party
The parent company is Capital Refractories Limited, a company incorporated in England and Wales.
Capital Refractories Limited is the parent undertaking of the smallest and largest group of undertakings for which group financial statements are prepared. Copies of group financial statements may be obtained from Capital Refractories Limited, Station Road, Clowne, S43 4AB.
The company is controlled by D.R. Newsome Discretionary Will Trust who own 55% of the share capital of the company.
23
Prior period adjustment
Reconciliation of changes in equity
1 December
30 November
2022
2023
£
£
Adjustments to prior year
Capitalisation of software development
-
176,295
Amortisation charge
-
(7,345)
Adjustment to deferred tax for the above
-
(40,000)
Total adjustments
-
128,950
Equity as previously reported
5,156,231
5,799,983
Equity as adjusted
5,156,231
5,928,933
Analysis of the effect upon equity
Profit and loss reserves
-
128,950
CAPITAL INJECTION CERAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
23
Prior period adjustment
(Continued)
- 21 -
Reconciliation of changes in profit for the previous financial period
2023
£
Adjustments to prior year
Capitalisation of software development
176,295
Amortisation charge
(7,345)
Adjustment to deferred tax for the above
(40,000)
Total adjustments
128,950
Profit as previously reported
2,043,752
Profit as adjusted
2,172,702
Notes to reconciliation
Software capitalisation
The financial statements have been restated to capitalise software development costs, which were previously expensed under research and development in the profit and loss account. These costs are now recorded as intangible assets and will be amortised over their useful life, rather than being recognised as an expense in the period incurred.
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