Company registration number 08118255 (England and Wales)
BRITISH CABLES COMPANY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
BRITISH CABLES COMPANY LIMITED
COMPANY INFORMATION
Director
Mr J E Wilms
Company number
08118255
Registered office
Ashenhurst Works
Blackley
Manchester
M9 8ES
Auditor
MHA
Richard House
9 Winckley Square
Preston
PR1 3HP
BRITISH CABLES COMPANY LIMITED
CONTENTS
Page
Strategic report
1 - 4
Director's report
6
Director's responsibilities statement
5
Independent auditor's report
7 - 9
Statement of income and retained earnings
10
Balance sheet
11
Notes to the financial statements
12 - 26
BRITISH CABLES COMPANY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The director presents the strategic report for the year ended 30 June 2024.
Review of the business
British Cables Company’s (BCC) turnover was lower than prior year, which was due to reduction in demand for copper Telco cable and reduction in demand for Rail products. War in Ukraine continues to have pressure on raw material prices as well as energy prices, which has made competing with foreign imports remains difficult. Our industry is also LME (London Metal Exchange) driven and turnover year on year (YoY) is therefore not directly comparable. Average LME (copper) in 22/23 was £6,878 and in 23/24 LME had increased very slightly to £6,892. Overall turnover decreased by £4.4m, of which the copper impact was £1.4m negative and volume was £3.0m reduction. Openreach continue to rollout fibre to new build properties, which influences the copper cables we manufacture. Also, we have seen copper cable demand reduce by half from other customers too. Sales in to the Rail sector decreased by 45% year on year as well as sales into Europe reduced significantly. Fibre sales, as we would expect, grew by £1m year on year, and this is the area we see future growth in.
Common across the whole of the cable manufacturing industry has been and continues to be the indirect impact of the war in Ukraine namely increased raw material costs / material shortages and long lead times.
We continue to resolutely adhere to the key strategic objective of reducing the dependency on the copper telecommunications market by entering new markets, securing new customers and supplying newly introduced products through our NPI program. Entering into a bespoke cable manufacturing industry, opened couple of new doors for us, and within few months sales of £0.7m were generated.
The increase in trading accounts continues to be key in our development and our risk spreading strategy. Active accounts continue to remain on a steady and upward trajectory.
Embracing digitalisation and utilisation of several new platforms drives and continues to build the BCC brand. Engagement with the British Government / Department of International trade combined with the “Buy British overtones” have allowed us to enter / tender for more infrastructure projects Internationally. The Middle East markets in particular call for UK manufactured products.
BCC’s manufacturing efficiency remains a key focus along with scrap management / scrap reduction programs
Tight labour markets required extra focus on resource planning, upskilling, multiskilling, succession programs and retention.
Entering and focussing on developing business in these new and buoyant markets, securing medium and long-term contracts will provide significant growth over the ensuing years.
Principal risks and uncertainties
The company makes little use of financial instruments other than an operational bank account and confidential invoice finance facility, so its exposure to credit risk, liquidity risk and cash flow risk is not material for the assessment of the assets, liabilities, financial position and profit and loss of the company.
Price risk
The company is exposed to commodity price risk as a result of its operations. The directors believe that the group has adequate controls established to ensure that prices charged to customers reflect the cost of copper for each order received.
Foreign exchange risk
The company operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to Euros. Foreign risk arises from future commercial transaction and recognised assets and liabilities.
BRITISH CABLES COMPANY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Development and performance
Since the movement of machinery from sister company IDH, BCC are now fully operational and approved for all the cable range previously being manufactured by IDH. A small delay in getting the equipment setup was due to lead time of new equipment added to existing piece of kit, which will make the manufacturing more efficient and price more competitive in a highly competitive market.
IDH Limited will be supported by BCC in UK to manufacture goods for Irish and export market, but will continue to be a Hans Wilms Beteiligungs GmbH company. It was also decided that some manufacturing will remain in IDH, so they can serve the Irish markets.
The business has successfully secured new long-term contracts to supply optical fibre cables and also new contract for supply of copper telecommunication cable. Both these commenced from Autumn 2024.
BRITISH CABLES COMPANY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
Health safety and environment
The key tenet of the business continues to be health, safety, quality and the environment. The health and safety of all employees remains paramount.
Our policy aims to provide and support a culture where health, safety, quality and the environment is at the top of everyone's agenda. This has been achieved by ensuring that all our staff, operatives and sub-contractors receive adequate training, have the correct personal protective equipment and feel empowered to raise any concerns that they may have.
The Company retains its enviable record of exceeding H&S standards having achieved the RoSpa Presidents award for three consecutive years following being awarded Gold awards each year for over a decade.
Accreditations
BS EN ISO 9001 : 2015 Quality Management System
BS EN ISO 14001 : 2015 Environmental Management System
BS EN 45001 : 2018 Health & Safety Management System
Certificate of Product Approval to cover cables to BS EN 50525-3-41:2011
H07Z-R Class 2 1 core 1.5mm2 to 25mm2
H05Z-K Class 5 1 core 0.5mm2 to 1mm2
H07Z-K Class 5 1 core 1.5mm2 to 10mm2
Certificate of Product Approval to cover cables to BS 8436:2011
Screened Class 2 2 core, 3 core and 4 core 1.0mm² to 4.0mm²
Certificate of Product Approval to cover cables to BS 7211:2012
6241B- 6243B – Class 1 & Class 2, 1.5mm2 – 16mm2
Certificate of Product Approval to cover cables to BS 6004:2012
6181Y Class 1 1 core 1.0mm² to 2.5mm² and Class 2 1 core 4.0mm² to 25mm²
Certificate of Product Approval to cover cables to BS 7629-1:2015FG200 Fire Resistant Screened Class 1 & 2 2 core, 3 core and 4 core 1.5mm² to 4.0mm²
LPCB Certificate of Product Approval to cover single core fire resistant cables to BS 6387:2103
FG100 Single Core Fire Resistant cables 1.0mm2 – 16.0mm2
BCC also have a range of certificates / approvals covering the fire performance CPR requirements.
Key Performance Indicators
2024 2023
£'000 £'000
Turnover 30,822 35,249
Gross profit 6.7% 7.3%
EBITDA (1,279) 275
EBITDA % (4.1)% 0.8%
Debtor Days 64 65
Creditor Days 80 58
Gross profit % dropped to 6.7% which is mainly to do with reduced volume on fixed costs together with higher energy contract, which ran for three quarters of they year. EBITDA % dropped to (4.1%) due to reduction in turnover.
Debtor days have gone down slightly from 65 days to 64 days. This is due to improvements in cash collections and challenging some increased payment terms requested. Creditor days have increased year on year from 58 days to 80 days. This is due to extended delivery terms achieved from copper supplier who delivery early and also due to holding back certain payments close to year end.
BRITISH CABLES COMPANY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
Mr J E Wilms
Director
21 November 2024
BRITISH CABLES COMPANY LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -
The director is responsible for preparing the annual 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 of 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 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 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.
BRITISH CABLES COMPANY LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 6 -
The director presents his 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 manufacturing, cutting and distribution of cables.
Results and dividends
The results for the year are set out on page 10.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr K I Samuel
(Resigned 30 June 2024)
Mr J E Wilms
Auditor
The auditor, MHA, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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.
Going concern
After performing their assessment and making appropriate enquiries, the directors have a reasonable expectation that the company will remain a going concern for the foreseeable future and accordingly, the financial statements have been prepared on a going concern basis. The results and conclusions of the going concern assessment are described in more detail in note 1 of the financial statements.
On behalf of the board
Mr J E Wilms
Director
21 November 2024
BRITISH CABLES COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BRITISH CABLES COMPANY LIMITED
- 7 -
Opinion
We have audited the financial statements of British Cables Company Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of income and retained earnings, the balance sheet 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 loss 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 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.
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 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.
BRITISH CABLES COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BRITISH CABLES COMPANY LIMITED (CONTINUED)
- 8 -
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 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.
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.
Matters on which we are required to report by exception
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 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 procedures we carried out and the extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Enquiries with management about any known or suspected instances of non-compliance with laws and regulations;
Enquires with management about any known or suspected instances of fraud;
Examination of journal entries and other adjustments to test for appropriateness and identify any instances of management override of controls;
Auditing the risk of fraud and management override of revenue by incorporating data analytics into our sampling of source entries and testing specific transactions to determine the occurrence of revenue, and
Review of legal and professional expenditure to identify any evidence of ongoing litigation or enquiries.
BRITISH CABLES COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BRITISH CABLES COMPANY LIMITED (CONTINUED)
- 9 -
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.
Paul Locker BSc(Hons) FCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Preston, United Kingdom
25 November 2024
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
BRITISH CABLES COMPANY LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
2024
2023
Notes
£'000
£'000
Turnover
3
30,822
35,249
Cost of sales
(29,662)
(32,661)
Gross profit
1,160
2,588
Administrative expenses
(2,726)
(2,562)
Operating (loss)/profit
5
(1,566)
26
Interest payable and similar expenses
8
(295)
(235)
Loss before taxation
(1,861)
(209)
Tax on loss
9
7
(115)
Loss for the financial year
(1,854)
(324)
Retained earnings brought forward
12,692
13,136
Dividends
10
(150)
(120)
Retained earnings carried forward
10,688
12,692
The profit and loss account has been prepared on the basis that all operations are continuing operations.
BRITISH CABLES COMPANY LIMITED
BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 11 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Fixed assets
Tangible assets
11
760
925
Investments
13
9
9
769
934
Current assets
Stocks
14
8,402
9,264
Debtors
15
15,874
15,300
Cash at bank and in hand
2,146
147
26,422
24,711
Creditors: amounts falling due within one year
16
(16,503)
(12,953)
Net current assets
9,919
11,758
Total assets less current liabilities
10,688
12,692
Capital and reserves
Called up share capital
20
Profit and loss reserves
10,688
12,692
The financial statements were approved by the board of directors and authorised for issue on 21 November 2024 and are signed on its behalf by:
Mr J E Wilms
Director
Company Registration No. 08118255
BRITISH CABLES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
1
Accounting policies
Company information
British Cables Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is Ashenhurst Works, Blackley, Manchester, M9 8ES.
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 £'000.
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 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’: 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 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Standard Cableteam UK Limited. These consolidated financial statements are available from its registered office, Delauneys Road, Blackley, Manchester, M9 8FP, United Kingdom.
BRITISH CABLES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
1.2
Going concern
The company has had a tough year with copper telco demand reducing as fibre roll out is implemented. The company has started to shift into a more hybrid business with manufacturing and distribution of various cable including fibre. 3 things were regularly assessed:
War in Ukraine – even though the war has continued, pressure on price increases from raw material suppliers seems to have calmed over the year. Less interruption is now being faced from suppliers in order to supply on time and at a reasonable price.
Energy Costs – The company has now been approved for few government schemes, which is to help UK manufacturing businesses to compete with European Suppliers. Benefit of this will be seen over the next few years and this will help the company to be more competitive.
Inflation – This has now come back to respectable levels, which in return has helped reduce fuel, transport and commodity prices. Together with efficiencies implemented we should now be able to compete with Turkish supply.
The directors have prepared detailed cashflow forecasts including assumptions on key contracts which
have now come to fruition, these demonstrate that the company has sufficient cash resources to be able to withstand the future trading conditions arising due to the factors listed above, whilst being able to continue to meet its liabilities as they fall due for the 12-month period following approval of the accounts. The company has secured two major contracts; one is for the distribution of fibre cable and other for the supply of Copper Telco cable. This has all been detailed in future forecasts and together with BASEC and LPCB approval of fire-resistant cable. Future forecasts shows to bring the business back to trade positively. The company has also recruited experience Commercial VP with over 30 years’ experience in the market, which should also help future growth of the business.
Hans Wilms Beteiligungs-GmbH group has continued to provide financial support for the company for the 12-month period following the approval of the accounts. The company has swapped its invoice finance facility to loan from Group. The company is currently and will continue to be entirely funded by Hans Wilms Beteiligungs-GmbH group. For some time the company will continue to see negative working capital due to growth that is projected. Therefore, 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
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
BRITISH CABLES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Plant and machinery
3 - 5 years
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.
Assets in the course of construction are not depreciated as they have no been brought into use.
1.5
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.6
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.
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.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
BRITISH CABLES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
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.
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.
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.
BRITISH CABLES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
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 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.
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.
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.
BRITISH CABLES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
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.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
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.
BRITISH CABLES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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 company manufactures and buys copper and fibre cable. It is necessary to consider the recoverability of the cost of inventory and the associated provisioning required. When calculating the inventory provision, management considers stock not sold within the last 12 months, stock over 12 months old, short lengths and stock for which the company has more than 12 months of cover.
Standard costing of copper
Stock is stated at the lower of cost and estimated selling price less cost to complete and sell. Cost is determined on a standard cost basis and is reviewed periodically. The carrying value of stock at the year end is as disclosed in note 14.
3
Turnover
An analysis of the company's turnover is as follows:
2024
2023
£'000
£'000
Turnover analysed by geographical market
United Kingdom
27,690
27,491
Continental Europe
915
5,267
Rest of World
2,217
2,491
30,822
35,249
4
Exceptional item
2024
2023
£'000
£'000
Expenditure
Retirement costs
158
-
BRITISH CABLES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
5
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging:
£'000
£'000
Exchange losses
39
358
Research and development costs
42
48
Fees payable to the company's auditor for the audit of the company's financial statements
37
29
Depreciation of owned tangible fixed assets
287
249
Operating lease charges
279
358
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Production
74
78
Administrative
23
22
Total
97
100
Their aggregate remuneration comprised:
2024
2023
£'000
£'000
Wages and salaries
3,432
3,482
Social security costs
374
389
Pension costs
207
201
4,013
4,072
7
Director's remuneration
2024
2023
£'000
£'000
Remuneration for qualifying services
244
153
Company pension contributions to defined contribution schemes
21
13
265
166
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
BRITISH CABLES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
7
Director's remuneration
(Continued)
- 20 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£'000
£'000
Remuneration for qualifying services
232
-
Accrued lump sum at the end of the year
12
-
8
Interest payable and similar expenses
2024
2023
£'000
£'000
Interest on bank overdrafts and loans
295
235
9
Taxation
2024
2023
£'000
£'000
Current tax
UK corporation tax on profits for the current period
31
Deferred tax
Origination and reversal of timing differences
(7)
69
Changes in tax rates
15
Total deferred tax
(7)
84
Total tax (credit)/charge
(7)
115
BRITISH CABLES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
9
Taxation
(Continued)
- 21 -
The actual (credit)/charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£'000
£'000
Loss before taxation
(1,861)
(209)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
(465)
(43)
Tax effect of expenses that are not deductible in determining taxable profit
9
1
Tax effect of income not taxable in determining taxable profit
(2)
Effect of change in corporation tax rate
15
Depreciation on assets not qualifying for tax allowances
2
Under/(over) provided in prior years
31
Deferred Tax not recognised
449
111
Taxation (credit)/charge for the year
(7)
115
In March 2021 the Chancellor confirmed, in the budget, an increase in the corporation tax rate from 19% to 25%. The Finance Bill 2021 had its third reading on 24 May 2021 and is now considered substantively enacted. The timing differences expected to reverse on or after 1 April 2023 have been accounted for at 25%.
10
Dividends
2024
2023
£'000
£'000
Final paid
150
120
BRITISH CABLES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
11
Tangible fixed assets
Assets under construction
Plant and machinery
Total
£'000
£'000
£'000
Cost
At 1 July 2023
6,459
6,459
Additions
54
68
122
At 30 June 2024
54
6,527
6,581
Depreciation and impairment
At 1 July 2023
5,534
5,534
Depreciation charged in the year
287
287
At 30 June 2024
5,821
5,821
Carrying amount
At 30 June 2024
54
706
760
At 30 June 2023
925
925
12
Subsidiaries
Details of the company's subsidiaries at 30 June 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
BCC MEA FZE
United Arab Emirates
Ordinary
100.00
13
Fixed asset investments
2024
2023
Notes
£'000
£'000
Investments in subsidiaries
12
9
9
Movements in fixed asset investments
Shares in group undertakings
£'000
Cost
At 1 July 2023 & 30 June 2024
9
Carrying amount
At 30 June 2024
9
At 30 June 2023
9
BRITISH CABLES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
14
Stocks
2024
2023
£'000
£'000
Raw materials and consumables
2,415
2,738
Work in progress
1,394
1,205
Finished goods
4,593
5,321
8,402
9,264
15
Debtors
2024
2023
Amounts falling due within one year:
£'000
£'000
Trade debtors
6,166
6,318
Corporation tax recoverable
65
65
Amounts owed by group undertakings
4,299
3,887
Other debtors
600
480
Prepayments and accrued income
775
606
11,905
11,356
Deferred tax asset (note 19)
74
67
11,979
11,423
2024
2023
Amounts falling due after more than one year:
£'000
£'000
Amounts owed by group undertakings
3,895
3,877
Total debtors
15,874
15,300
16
Creditors: amounts falling due within one year
2024
2023
Notes
£'000
£'000
Bank loans
17
3,373
Trade creditors
8,401
4,115
Amounts owed to group undertakings
6,568
3,889
Taxation and social security
926
961
Other creditors
462
535
Accruals and deferred income
146
80
16,503
12,953
BRITISH CABLES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
17
Loans and overdrafts
2024
2023
£'000
£'000
Bank loans
3,373
Payable within one year
3,373
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
207
201
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.
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2024
2023
Balances:
£'000
£'000
Accelerated capital allowances
-
53
Fixed asset timing differences
43
-
Short term timing differences
31
14
74
67
2024
Movements in the year:
£'000
Asset at 1 July 2023
(67)
Credit to profit or loss
(7)
Asset at 30 June 2024
(74)
BRITISH CABLES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 25 -
20
Share capital
2024
2023
£'000
£'000
Issued and fully paid
1 Ordinary of £1 each
-
-
21
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
£'000
£'000
Within one year
52
67
Between two and five years
146
49
198
116
22
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£'000
£'000
Acquisition of tangible fixed assets
30
-
23
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Rent payable
Management fee receivable
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Other related parties
240
330
-
(50)
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£'000
£'000
Other related parties
552
393
BRITISH CABLES COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
23
Related party transactions
(Continued)
- 26 -
Other information
The company has taken advantage of the disclosure exemption relating to section 33.1A of the standard with regards to the requirement of disclosing transactions with fellow group entities.
24
Ultimate controlling party
As at the balance sheet date, the company is a wholly owned subsidiary of Standard Cableteam UK Limited. The directors consider that the ultimate parent undertaking of this company is Hans Wilms Beteiligungs GmbH.
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