28 false false false false true false false false false false false true false false false false false false No description of principal activity 2023-07-01 Sage Accounts Production Advanced 2023 - FRS102_2023 80 1,188,367 805,000 742,500 62,500 805,000 62,500 1,763 1,763 1,763 107,013 30,669 76,344 xbrli:pure xbrli:shares iso4217:GBP 06128898 2023-07-01 2024-06-30 06128898 2024-06-30 06128898 2023-06-30 06128898 2022-07-01 2023-06-30 06128898 2023-06-30 06128898 2022-06-30 06128898 core:NetGoodwill 2023-07-01 2024-06-30 06128898 core:LandBuildings 2023-07-01 2024-06-30 06128898 core:MotorVehicles 2023-07-01 2024-06-30 06128898 bus:RegisteredOffice 2023-07-01 2024-06-30 06128898 bus:OrdinaryShareClass1 2023-07-01 2024-06-30 06128898 bus:OrdinaryShareClass3 2023-07-01 2024-06-30 06128898 bus:LeadAgentIfApplicable 2023-07-01 2024-06-30 06128898 bus:Director1 2023-07-01 2024-06-30 06128898 core:WithinOneYear 2024-06-30 06128898 core:WithinOneYear 2023-06-30 06128898 core:NetGoodwill 2023-06-30 06128898 core:NetGoodwill 2024-06-30 06128898 core:LandBuildings 2023-06-30 06128898 core:PlantMachinery 2023-06-30 06128898 core:MotorVehicles 2023-06-30 06128898 core:LandBuildings 2024-06-30 06128898 core:PlantMachinery 2024-06-30 06128898 core:MotorVehicles 2024-06-30 06128898 core:DeferredTaxation 2023-07-01 2024-06-30 06128898 core:PlantMachinery 2023-07-01 2024-06-30 06128898 core:RetainedEarningsAccumulatedLosses 2022-07-01 2023-06-30 06128898 core:RetainedEarningsAccumulatedLosses 2023-07-01 2024-06-30 06128898 core:UKTax 2023-07-01 2024-06-30 06128898 core:UKTax 2022-07-01 2023-06-30 06128898 core:ShareCapital 2024-06-30 06128898 core:ShareCapital 2023-06-30 06128898 core:RetainedEarningsAccumulatedLosses 2024-06-30 06128898 core:RetainedEarningsAccumulatedLosses 2023-06-30 06128898 core:ShareCapital 2022-06-30 06128898 core:RetainedEarningsAccumulatedLosses 2022-06-30 06128898 core:BetweenOneFiveYears 2024-06-30 06128898 core:BetweenOneFiveYears 2023-06-30 06128898 core:NetGoodwill 2023-06-30 06128898 core:CostValuation core:Non-currentFinancialInstruments 2024-06-30 06128898 core:Non-currentFinancialInstruments 2024-06-30 06128898 core:Non-currentFinancialInstruments 2023-06-30 06128898 core:AcceleratedTaxDepreciationDeferredTax 2024-06-30 06128898 core:AcceleratedTaxDepreciationDeferredTax 2023-06-30 06128898 core:RetirementBenefitObligationsDeferredTax 2024-06-30 06128898 core:RetirementBenefitObligationsDeferredTax 2023-06-30 06128898 core:LandBuildings 2023-06-30 06128898 core:PlantMachinery 2023-06-30 06128898 core:MotorVehicles 2023-06-30 06128898 core:DeferredTaxation 2023-06-30 06128898 core:DeferredTaxation 2024-06-30 06128898 countries:UnitedKingdom 2023-07-01 2024-06-30 06128898 countries:UnitedKingdom 2022-07-01 2023-06-30 06128898 countries:RestWorldOutsideUK 2023-07-01 2024-06-30 06128898 countries:RestWorldOutsideUK 2022-07-01 2023-06-30 06128898 bus:MediumEntities 2023-07-01 2024-06-30 06128898 bus:Audited 2023-07-01 2024-06-30 06128898 bus:Medium-sizedCompaniesRegimeForAccounts 2023-07-01 2024-06-30 06128898 bus:PrivateLimitedCompanyLtd 2023-07-01 2024-06-30 06128898 bus:FullAccounts 2023-07-01 2024-06-30 06128898 bus:OrdinaryShareClass1 2024-06-30 06128898 bus:OrdinaryShareClass1 2023-06-30 06128898 bus:OrdinaryShareClass3 2024-06-30 06128898 bus:OrdinaryShareClass3 2023-06-30 06128898 bus:AllOrdinaryShares 2024-06-30 06128898 bus:AllOrdinaryShares 2023-06-30
COMPANY REGISTRATION NUMBER: 06128898
Stainless Band Limited
Financial Statements
30 June 2024
Stainless Band Limited
Financial Statements
Year ended 30 June 2024
Contents
Page
Strategic report
1
Director's report
2
Independent auditor's report to the members
4
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11
Stainless Band Limited
Strategic Report
Year ended 30 June 2024
The principal activity of the company in the year was the supply of stainless coil products. Review of the business The director is satisfied with the financial results for the business. Turnover and gross margin decreased from the previous year, in a difficult market with a significant reduction in worldwide steel prices and demand generally. The business effectively broke even at trading level.
2024 2023
£ £
Turnover 10,417,459 13,244,357
Profit for the financial year 80 1,188,367
Shareholders funds 2,585,193 3,348,594
Principal risks and uncertainties The reduction in steel prices from recent peaks continued throughout 2024 though there was much lower levels of stock held at previous high prices so margins were held in most cases. There is uncertainty over the worldwide economy due to continuing global disruptions and recent tariff threats. Stainless Band has over 50% of sales into export markets the spread of sales which mitigates the overall risk. The management of the company has many years of experience in running the business and operating in the sector and, along with a very sound balance sheet and solid funding lines, is the main mitigation against risks.
This report was approved by the board of directors on 21 March 2025 and signed on behalf of the board by:
J P Hanson
Director
Registered office:
3 Greengate
Cardale Park
Harrogate
North Yorkshire
HG3 1GY
Stainless Band Limited
Director's Report
Year ended 30 June 2024
The director presents his report and the financial statements of the company for the year ended 30 June 2024 .
Director
The director who served the company during the year was as follows:
J P Hanson
Dividends
The director does not recommend the payment of a dividend.
Other matters
During the year £763,480 (2023: £534,077) was gifted to the Stainless Employee Ownership Trust.
Disclosure of information in the strategic report
The strategic report is shown separately on page 1 of the financial statements.
Director's responsibilities statement
The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations. Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the director is required to: - select suitable accounting policies and then apply them consistently; - make judgments 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 director is 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. He is 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 21 March 2025 and signed on behalf of the board by:
J P Hanson
Director
Registered office:
3 Greengate
Cardale Park
Harrogate
North Yorkshire
HG3 1GY
Stainless Band Limited
Independent Auditor's Report to the Members of Stainless Band Limited
Year ended 30 June 2024
Opinion
We have audited the financial statements of Stainless Band Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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; - 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 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 director's 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 director with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is responsible for the other information. 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 the audit:
- the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the director's 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 director's 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 director's remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of the director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: - Enquiry of management around actual and potential litigation and claims; - Enquiry of entity staff in compliance functions to identify any instances of non-compliance with laws and regulations; - Reviewing minutes of meetings of those charged with governance; - Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. - Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bi 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 auditor’s report. Use of our report
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Andrew Wild BA FCA
(Senior Statutory Auditor)
For and on behalf of
TLP Consulting Limited
Chartered accountants & statutory auditor
3 Greengate
Cardale Park
Harrogate
HG3 1GY
21 March 2025
Stainless Band Limited
Statement of Comprehensive Income
Year ended 30 June 2024
2024
2023
Note
£
£
Turnover
4
10,417,459
13,244,357
Cost of sales
8,511,973
9,541,995
-------------
-------------
Gross profit
1,905,486
3,702,362
Administrative expenses
1,905,908
2,170,397
Other operating income
5
12,509
------------
------------
Operating (loss)/profit
6
( 422)
1,544,474
Interest payable and similar expenses
9
( 3,273)
16,521
------------
------------
Profit before taxation
2,851
1,527,953
Tax on profit
10
2,771
339,586
-------
------------
Profit for the financial year and total comprehensive income
80
1,188,367
-------
------------
All the activities of the company are from continuing operations.
Stainless Band Limited
Statement of Financial Position
30 June 2024
2024
2023
Note
£
£
£
Fixed assets
Intangible assets
12
62,500
Tangible assets
13
321,680
446,834
Investments
14
1,763
1,763
---------
---------
323,443
511,097
Current assets
Stocks
15
2,694,307
3,004,646
Debtors
16
1,819,122
2,319,776
Cash at bank and in hand
440,176
281,456
------------
------------
4,953,605
5,605,878
Creditors: amounts falling due within one year
17
2,615,511
2,661,368
------------
------------
Net current assets
2,338,094
2,944,510
------------
------------
Total assets less current liabilities
2,661,537
3,455,607
Provisions
Taxation including deferred tax
18
76,344
107,013
------------
------------
Net assets
2,585,193
3,348,594
------------
------------
Capital and reserves
Called up share capital
22
1
1
Profit and loss account
2,585,192
3,348,593
------------
------------
Shareholders funds
2,585,193
3,348,594
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 21 March 2025 , and are signed on behalf of the board by:
J P Hanson
Director
Company registration number: 06128898
Stainless Band Limited
Statement of Changes in Equity
Year ended 30 June 2024
Called up share capital
Profit and loss account
Total
£
£
£
At 1 July 2022
1
2,694,303
2,694,304
Profit for the year
1,188,367
1,188,367
----
------------
------------
Total comprehensive income for the year
1,188,367
1,188,367
Gifts to EOT
(534,077)
(534,077)
----
------------
------------
Total investments by and distributions to owners
( 534,077)
( 534,077)
At 30 June 2023
1
3,348,593
3,348,594
Profit for the year
80
80
----
------------
------------
Total comprehensive income for the year
80
80
Gifts to EOT
(763,481)
(763,481)
----
---------
---------
Total investments by and distributions to owners
( 763,481)
( 763,481)
----
------------
------------
At 30 June 2024
1
2,585,192
2,585,193
----
------------
------------
Stainless Band Limited
Statement of Cash Flows
Year ended 30 June 2024
2024
2023
£
£
Cash flows from operating activities
Profit for the financial year
80
1,188,367
Adjustments for:
Depreciation of tangible assets
162,031
210,085
Amortisation of intangible assets
62,500
75,000
Government grant income
( 12,509)
Interest payable and similar expenses
( 3,273)
16,521
Gains on disposal of tangible assets
( 18,881)
Tax on profit
2,771
339,586
Accrued income
( 180,471)
( 1,077,246)
Changes in:
Stocks
310,339
1,918,826
Trade and other debtors
500,654
2,723,143
Trade and other creditors
373,417
( 4,130,519)
------------
------------
Cash generated from operations
1,228,048
1,232,373
Interest paid
3,273
( 16,521)
Tax paid
( 260,968)
( 636,209)
------------
------------
Net cash from operating activities
970,353
579,643
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 36,877)
( 197,732)
Proceeds from sale of tangible assets
70,000
Acquisition of subsidiaries
( 1,763)
------------
------------
Net cash used in investing activities
( 36,877)
( 129,495)
------------
------------
Cash flows from financing activities
Proceeds from borrowings
( 11,276)
( 235,333)
Proceeds from loans from group undertakings
1,763
Government grant income
12,509
Payments of finance lease liabilities
( 19,535)
Gifts to EOT
(763,480)
(534,077)
------------
------------
Net cash used in financing activities
( 774,756)
( 774,673)
------------
------------
Net increase/(decrease) in cash and cash equivalents
158,720
( 324,525)
Cash and cash equivalents at beginning of year
281,456
605,981
---------
---------
Cash and cash equivalents at end of year
440,176
281,456
---------
---------
Stainless Band Limited
Notes to the Financial Statements
Year ended 30 June 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 3 Greengate, Cardale Park, Harrogate, North Yorkshire, HG3 1GY.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable for the provision of goods to customers outside the company net of returns and sales allowances (and VAT). Revenue from goods is recognised at the point the company fulfils its commercial obligations to the customer, the revenue and costs in respect of the transaction can be measured reliably and collectability is reasonably assured.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill
-
10% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Land & Buildings
-
10% straight line
Plant & Machinery
-
6 years Straight line
Motor Vehicles
-
25% straight line
Equipment
-
25 % straight line
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Investments in associates
Investments in associates accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in associates accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the associate arising before or after the date of acquisition.
Investments in joint ventures
Investments in jointly controlled entities accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in jointly controlled entities accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the joint venture arising before or after the date of acquisition.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
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 entity after deducting all of its financial liabilities.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2024
2023
£
£
Sale of goods
10,417,459
13,244,357
-------------
-------------
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2024
2023
£
£
United Kingdom
3,557,081
6,263,911
Overseas
6,860,378
6,980,446
-------------
-------------
10,417,459
13,244,357
-------------
-------------
5. Other operating income
2024
2023
£
£
Government grant income
12,509
----
--------
6. Operating (loss)/profit
Operating profit or loss is stated after charging/crediting:
2024
2023
£
£
Amortisation of intangible assets
62,500
75,000
Depreciation of tangible assets
162,031
210,085
Gains on disposal of tangible assets
( 18,881)
Impairment of trade debtors
121,958
---------
---------
7. Staff costs
The average number of persons employed by the company during the year, including the director, amounted to:
2024
2023
No.
No.
Production staff
20
35
Administrative staff
7
7
Management staff
1
1
----
----
28
43
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
919,274
1,092,094
Social security costs
107,482
114,970
Other pension costs
19,918
19,272
------------
------------
1,046,674
1,226,336
------------
------------
8. Director's remuneration
The director's aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
38,574
10,910
--------
--------
9. Interest payable and similar expenses
2024
2023
£
£
Interest on banks loans and overdrafts
( 3,591)
10,544
Interest on obligations under finance leases and hire purchase contracts
318
849
Other interest payable and similar charges
5,128
-------
--------
( 3,273)
16,521
-------
--------
10. Tax on profit
Major components of tax expense
2024
2023
£
£
Current tax:
UK current tax expense
32,155
324,933
Adjustments in respect of prior periods
1,285
--------
---------
Total current tax
33,440
324,933
--------
---------
Deferred tax:
Origination and reversal of timing differences
( 30,669)
14,653
--------
---------
Tax on profit
2,771
339,586
--------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 20.50 %).
2024
2023
£
£
Profit on ordinary activities before taxation
2,851
1,527,953
-------
------------
Profit on ordinary activities by rate of tax
713
313,230
Adjustment to tax charge in respect of prior periods
1,285
Effect of expenses not deductible for tax purposes
2,235
2,860
Effect of capital allowances and depreciation
256
23,496
Effect of different UK tax rates on some earnings
(1,718)
-------
------------
Tax on profit
2,771
339,586
-------
------------
11. Staff costs
During the year the company incurred payroll expenses totalling £22,828 (2023: £10,242) on behalf of the Stainless Employee Ownership Trust.
12. Intangible assets
Goodwill
£
Cost
At 1 July 2023 and 30 June 2024
805,000
---------
Amortisation
At 1 July 2023
742,500
Charge for the year
62,500
---------
At 30 June 2024
805,000
---------
Carrying amount
At 30 June 2024
---------
At 30 June 2023
62,500
---------
The addition of goodwill arose on the purchase of the trade of Stainless Band (Exports) LLP in 2014.
13. Tangible assets
Land and buildings
Plant and machinery
Motor vehicles
Equipment
Total
£
£
£
£
£
Cost
At 1 July 2023
142,285
1,467,331
175,071
194,925
1,979,612
Additions
29,487
7,390
36,877
---------
------------
---------
---------
------------
At 30 June 2024
142,285
1,496,818
175,071
202,315
2,016,489
---------
------------
---------
---------
------------
Depreciation
At 1 July 2023
132,314
1,205,012
47,043
148,409
1,532,778
Charge for the year
9,971
99,620
35,834
16,606
162,031
---------
------------
---------
---------
------------
At 30 June 2024
142,285
1,304,632
82,877
165,015
1,694,809
---------
------------
---------
---------
------------
Carrying amount
At 30 June 2024
192,186
92,194
37,300
321,680
---------
------------
---------
---------
------------
At 30 June 2023
9,971
262,319
128,028
46,516
446,834
---------
------------
---------
---------
------------
14. Investments
Shares in group undertakings
£
Cost
At 1 July 2023 and 30 June 2024
1,763
-------
Impairment
At 1 July 2023 and 30 June 2024
-------
Carrying amount
At 30 June 2024
1,763
-------
At 30 June 2023
1,763
-------
15. Stocks
2024
2023
£
£
Raw materials and consumables
2,694,307
3,004,646
------------
------------
16. Debtors
2024
2023
£
£
Trade debtors
1,560,121
2,215,336
Prepayments and accrued income
76,776
101,964
Other debtors
182,225
2,476
------------
------------
1,819,122
2,319,776
------------
------------
17. Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
845,679
711,736
Amounts owed to group undertakings
1,763
1,763
Accruals and deferred income
24,094
204,565
Corporation tax
35,301
262,828
Social security and other taxes
91,355
84,951
Director loan accounts
11,276
Other creditors
1,617,319
1,384,249
------------
------------
2,615,511
2,661,368
------------
------------
The following liabilities disclosed under creditors falling due within one year are secured by the company:
2024
2023
£
£
Other creditors
1,151,587
1,381,145
18. Provisions
Deferred tax (note 19)
£
At 1 July 2023
107,013
Additions
( 30,669)
---------
At 30 June 2024
76,344
---------
19. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 18)
76,344
107,013
--------
---------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
76,770
107,200
Pension plan obligations
( 426)
( 187)
--------
---------
76,344
107,013
--------
---------
20. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 19,918 (2023: £ 19,272 ).
21. Government grants
The amounts recognised in the financial statements for government grants are as follows:
2024
2023
£
£
Recognised in other operating income:
Government grants recognised directly in income
12,509
----
--------
22. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary A shares of £ 0.01 each
100
1
100
1
Preference shares of £ 0.01 each
2
2
----
----
----
----
102
1
102
1
----
----
----
----
23. Analysis of changes in net debt
At 1 Jul 2023
Cash flows
At 30 Jun 2024
£
£
£
Cash at bank and in hand
281,456
158,720
440,176
Debt due within one year
(13,039)
11,276
(1,763)
---------
---------
---------
268,417
169,996
438,413
---------
---------
---------
24. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2024
2023
£
£
Not later than 1 year
80,955
11,940
Later than 1 year and not later than 5 years
246,000
399,950
---------
---------
326,955
411,890
---------
---------
25. Director's advances, credits and guarantees
The directors loan account was repaid during the year. There were no guarantees in the year.
Stainless Band Limited
Notes to the Financial Statements (continued)
Year ended 30 June 2024
26. Related party transactions
The company was under the control of the director throughout the current year. The company made a gift of £763,480 (2023: £534,077) to the Stainless Employee Ownership Trust. Future gifts will be made at the discretion of the company Directors based on available cashflows and the performance of the business. No other transactions with related parties were undertaken such as are required to be disclosed under the Financial Reporting Standard 102 (2015).
27. Controlling party
The company is controlled by Stainless Trustees Limited, being the trustee of Stainless Employee Ownership Trust.