REGISTERED NUMBER: SC361880 (Scotland) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
FOR |
NORFRAN LIMITED |
REGISTERED NUMBER: SC361880 (Scotland) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
FOR |
NORFRAN LIMITED |
NORFRAN LIMITED (REGISTERED NUMBER: SC361880) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Consolidated Income Statement | 7 |
Consolidated Other Comprehensive Income | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Financial Statements | 15 |
NORFRAN LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 JUNE 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
and Statutory Auditor |
213 St Vincent Street |
Glasgow |
G2 5QY |
BANKERS: | The Royal Bank of Scotland plc |
23 Sauchiehall Street |
Glasgow |
G2 3AD |
NORFRAN LIMITED (REGISTERED NUMBER: SC361880) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2024 |
The directors present their strategic report of the company and the group for the year ended 30 June 2024. |
The principal activity of the group in the year under review was that of precision aluminium and zinc diecasters and plastic injection moulding specialists. During the year the company also acted as holding company for the group. No significant change in the nature of these activities occurred during the year. |
REVIEW OF BUSINESS |
The directors are satisfied with the results for the year with the group continuing to be profitable. The directors remain confident that the group is well positioned to take advantage of the opportunities that may arise to expand the business in the future. |
PRINCIPAL RISKS AND UNCERTAINTIES |
During the forthcoming year the board considers the principal risks and uncertainties affecting the group to be: |
-Competition in the market |
-Managing the impact of inflation on our suppliers and customers |
-The exposure to commodity price risk |
Having considered the risks to the business, the board are of the opinion that the group can respond to and mitigate the impact of these risks and uncertainties. |
KEY PERFORMANCE INDICATORS |
Given the straightforward nature of the business of the group, the directors are of the opinion that analysis using key performance indicators is not necessary for an understanding of the development, performance or position of the business. |
ON BEHALF OF THE BOARD: |
NORFRAN LIMITED (REGISTERED NUMBER: SC361880) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 June 2024. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 June 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Bannerman Johnstone Maclay, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
NORFRAN LIMITED |
Opinion |
We have audited the financial statements of Norfran Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, 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 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 group's and of the parent company affairs as at 30 June 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
NORFRAN LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- | We obtained an understanding of the legal and regulatory frameworks applicable to the group and the parent company and the sector in which they operate. We determined that the following laws and regulations were the most significant: the Companies Act 2006 and UK corporate taxation laws. |
- | We obtained an understanding of how the group and the parent company is complying with those legal and regulatory frameworks by making enquires to the management. |
- | We assessed the susceptibility of the group's and the parent company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included: |
- | identifying and assessing the design and effectiveness of controls management has in place to prevent and detect fraud; |
- | understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; |
- | challenging assumptions and judgements made by management in its significant accounting estimates; |
- | identifying and testing journal entries, in particular any journal entries posted with unusual accounting combinations; and |
- | assessing the extent of compliance with relevant laws and regulations. |
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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
NORFRAN LIMITED |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditor |
213 St Vincent Street |
Glasgow |
G2 5QY |
NORFRAN LIMITED (REGISTERED NUMBER: SC361880) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 | 11,276,726 | 11,552,312 |
Cost of sales | 9,435,791 | 9,593,745 |
GROSS PROFIT | 1,840,935 | 1,958,567 |
Administrative expenses | 1,699,043 | 1,860,557 |
OPERATING PROFIT | 5 | 141,892 | 98,010 |
Interest payable and similar expenses | 6 | 13,502 | 19,950 |
PROFIT BEFORE TAXATION | 128,390 | 78,060 |
Tax on profit | 7 | 40,058 | 16,484 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 88,332 | 61,576 |
NORFRAN LIMITED (REGISTERED NUMBER: SC361880) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 88,332 | 61,576 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
88,332 |
61,576 |
Total comprehensive income attributable to: |
Owners of the parent | 88,332 | 61,576 |
NORFRAN LIMITED (REGISTERED NUMBER: SC361880) |
CONSOLIDATED BALANCE SHEET |
30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 141,466 | 153,255 |
Tangible assets | 10 | 2,977,969 | 3,153,465 |
Investments | 11 | - | - |
3,119,435 | 3,306,720 |
CURRENT ASSETS |
Stocks | 12 | 708,976 | 769,338 |
Debtors | 13 | 1,993,563 | 3,328,015 |
Cash at bank and in hand | 1,297,449 | 864,573 |
3,999,988 | 4,961,926 |
CREDITORS |
Amounts falling due within one year | 14 | 1,908,130 | 3,036,202 |
NET CURRENT ASSETS | 2,091,858 | 1,925,724 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
5,211,293 |
5,232,444 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(174,609 |
) |
(324,150 |
) |
PROVISIONS FOR LIABILITIES | 17 | (467,735 | ) | (427,677 | ) |
NET ASSETS | 4,568,949 | 4,480,617 |
CAPITAL AND RESERVES |
Called up share capital | 18 | 100 | 100 |
Retained earnings | 19 | 4,568,849 | 4,480,517 |
SHAREHOLDERS' FUNDS | 4,568,949 | 4,480,617 |
The financial statements were approved by the Board of Directors and authorised for issue on 26 March 2025 and were signed on its behalf by: |
D K Stirrat - Director |
NORFRAN LIMITED (REGISTERED NUMBER: SC361880) |
COMPANY BALANCE SHEET |
30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 81,407 | 39,495 |
The financial statements were approved by the Board of Directors and authorised for issue on |
NORFRAN LIMITED (REGISTERED NUMBER: SC361880) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2022 | 100 | 4,418,941 | 4,419,041 |
Changes in equity |
Total comprehensive income | - | 61,576 | 61,576 |
Balance at 30 June 2023 | 100 | 4,480,517 | 4,480,617 |
Changes in equity |
Total comprehensive income | - | 88,332 | 88,332 |
Balance at 30 June 2024 | 100 | 4,568,849 | 4,568,949 |
NORFRAN LIMITED (REGISTERED NUMBER: SC361880) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 June 2023 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 June 2024 |
NORFRAN LIMITED (REGISTERED NUMBER: SC361880) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 862,179 | 119,170 |
Interest element of hire purchase payments paid |
(13,502 |
) |
(19,950 |
) |
Tax paid | (10,181 | ) | (10,766 | ) |
Net cash from operating activities | 838,496 | 88,454 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (332,629 | ) | (318,820 | ) |
Sale of tangible fixed assets | 92,055 | 708 |
Net cash from investing activities | (240,574 | ) | (318,112 | ) |
Cash flows from financing activities |
Capital repayments in year | (165,046 | ) | (230,184 | ) |
Net cash from financing activities | (165,046 | ) | (230,184 | ) |
Increase/(decrease) in cash and cash equivalents | 432,876 | (459,842 | ) |
Cash and cash equivalents at beginning of year |
2 |
864,573 |
1,324,415 |
Cash and cash equivalents at end of year | 2 | 1,297,449 | 864,573 |
NORFRAN LIMITED (REGISTERED NUMBER: SC361880) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 128,390 | 78,060 |
Depreciation charges | 427,859 | 423,856 |
Profit on disposal of fixed assets | - | (708 | ) |
Finance costs | 13,502 | 19,950 |
569,751 | 521,158 |
Decrease/(increase) in stocks | 60,362 | (130,702 | ) |
Decrease/(increase) in trade and other debtors | 1,334,452 | (1,167,242 | ) |
(Decrease)/increase in trade and other creditors | (1,102,386 | ) | 895,956 |
Cash generated from operations | 862,179 | 119,170 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 June 2024 |
30.6.24 | 1.7.23 |
£ | £ |
Cash and cash equivalents | 1,297,449 | 864,573 |
Year ended 30 June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 864,573 | 1,324,415 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.7.23 | Cash flow | At 30.6.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 864,573 | 432,876 | 1,297,449 |
864,573 | 432,876 | 1,297,449 |
Debt |
Finance leases | (489,195 | ) | 165,046 | (324,149 | ) |
(489,195 | ) | 165,046 | (324,149 | ) |
Total | 375,378 | 597,922 | 973,300 |
NORFRAN LIMITED (REGISTERED NUMBER: SC361880) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
1. | STATUTORY INFORMATION |
Norfran Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
Monetary amounts in these financial statements are rounded to the nearest £. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The group and separate financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The consolidated and separate financial statements have been prepared under the historical cost convention. |
Basis of consolidation |
The group financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 June each year. The results of subsidiaries acquired or sold are consolidated for the periods from or up to the date on which control passed. Acquisitions are accounted for under the acquisition method. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Critical accounting judgements and key sources of estimation uncertainty |
Preparation of the financial statements requires management to make significant judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the statement of financial position date and the amounts reported for revenues and expenses during the period. However, the nature of estimation means that actual outcomes could differ from those estimates. |
The following judgement had a significant effect on the amounts recognised in the financial statements: |
Useful economic lives of tangible assets |
The annual depreciation charge for tangible assets is sensitive to changes in the useful economic lives and residual values of the assets. Useful lives and residual values are reassessed annually. They are assessed where necessary to reflect current estimates based on economic utilisation and physical condition. |
Impairment of trade and other debtors |
The recoverability of trade and other debtors is regularly reviewed. A provision for impairment is made where it is believed that it will not be able to collect amounts due according to the original terms of trade. Provisions for impairment are estimates of future events and are therefore uncertain. |
Stock provisioning |
It is necessary to consider the recoverability of the cost of stock and the associated provisioning required, given the volatility in the metal market. |
NORFRAN LIMITED (REGISTERED NUMBER: SC361880) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Tangible fixed assets |
Tangible fixed assets are measured using the cost model. These assets are stated at historical cost less accumulated depreciation. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter. |
Improvements to property | - 10% on cost |
Plant and machinery | - 25% on reducing balance, 10% on cost and at varying rates on cost |
Fixtures and fittings | - 33% on cost, 25% on reducing balance and 20% on cost |
Motor vehicles | - 25% on reducing balance |
The residual values, useful lives and depreciation methods of tangible fixed assets are reviewed annually and revised if necessary. The effect of any revisions is accounted for prospectively. There were no revisions in the periods covered by these financial statements. |
Stocks |
Raw materials are valued at the lower of cost and net realisable value. Work-in-progress and finished goods are held at 60% and 90% of net realisable value respectively. |
Financial instruments |
The group 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 group's balance sheet when the group 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 certain debtors and cash and bank balances, are initially measured at transaction price including transactions costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised. |
Basic financial liabilities |
Basic financial liabilities, including certain creditors and balances from related undertakings, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate |
NORFRAN LIMITED (REGISTERED NUMBER: SC361880) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the group. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
Precision metal diecasting | 10,614,393 | 10,820,693 |
Plastic injection moulding | 662,333 | 731,619 |
11,276,726 | 11,552,312 |
NORFRAN LIMITED (REGISTERED NUMBER: SC361880) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 2,661,554 | 2,587,378 |
Social security costs | 258,582 | 246,419 |
Other pension costs | 54,887 | 50,682 |
2,975,023 | 2,884,479 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Production | 73 | 77 |
Administration | 10 | 9 |
Directors | 2 | 2 |
The average number of employees by undertakings that were proportionately consolidated during the year was 85 (2023 - 88 ) . |
2024 | 2023 |
£ | £ |
Directors' remuneration | 50,000 | 50,000 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | 195,678 | 192,344 |
Other operating leases | 42,043 | 28,928 |
Depreciation - owned assets | 342,331 | 264,054 |
Depreciation - assets on hire purchase contracts | 73,739 | 148,013 |
Profit on disposal of fixed assets | - | (708 | ) |
Goodwill amortisation | 11,789 | 11,789 |
Auditors' remuneration | 6,025 | 5,885 |
Foreign exchange differences | 769 | 736 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Hire purchase | 13,502 | 19,950 |
NORFRAN LIMITED (REGISTERED NUMBER: SC361880) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | - | 10,182 |
Prior year tax adjustment | (1 | ) | - |
Total current tax | (1 | ) | 10,182 |
Deferred tax | 40,059 | 6,302 |
Tax on profit | 40,058 | 16,484 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 128,390 | 78,060 |
Profit multiplied by the standard rate of corporation tax in the UK of 24.786 % (2023 - 20.496 %) |
31,823 |
15,999 |
Effects of: |
Expenses not deductible for tax purposes | - | 361 |
Income not taxable for tax purposes | (81 | ) | - |
Capital allowances in excess of depreciation | - | (8,842 | ) |
Depreciation in excess of capital allowances | 3,138 | - |
Adjustments to tax charge in respect of previous periods | (1 | ) | - |
Deferred tax movement | 40,059 | 6,302 |
Goodwill on consolidation | 2,947 | 2,416 |
Loss carried forward | - | 248 |
Loss brought forward utilised in year | (37,827 | ) | - |
Total tax charge | 40,058 | 16,484 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
NORFRAN LIMITED (REGISTERED NUMBER: SC361880) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 | 235,778 |
AMORTISATION |
At 1 July 2023 | 82,523 |
Amortisation for year | 11,789 |
At 30 June 2024 | 94,312 |
NET BOOK VALUE |
At 30 June 2024 | 141,466 |
At 30 June 2023 | 153,255 |
10. | TANGIBLE FIXED ASSETS |
Group |
Improvements | Fixtures |
to | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 July 2023 | 489,924 | 5,482,724 | 226,662 | 33,990 | 6,233,300 |
Additions | - | 312,859 | 19,770 | - | 332,629 |
Disposals | - | (92,055 | ) | - | - | (92,055 | ) |
At 30 June 2024 | 489,924 | 5,703,528 | 246,432 | 33,990 | 6,473,874 |
DEPRECIATION |
At 1 July 2023 | 306,769 | 2,549,117 | 211,949 | 12,000 | 3,079,835 |
Charge for year | 23,569 | 369,159 | 11,342 | 12,000 | 416,070 |
At 30 June 2024 | 330,338 | 2,918,276 | 223,291 | 24,000 | 3,495,905 |
NET BOOK VALUE |
At 30 June 2024 | 159,586 | 2,785,252 | 23,141 | 9,990 | 2,977,969 |
At 30 June 2023 | 183,155 | 2,933,607 | 14,713 | 21,990 | 3,153,465 |
NORFRAN LIMITED (REGISTERED NUMBER: SC361880) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 | 1,106,088 |
DEPRECIATION |
At 1 July 2023 | 147,741 |
Charge for year | 73,739 |
At 30 June 2024 | 221,480 |
NET BOOK VALUE |
At 30 June 2024 | 884,608 |
At 30 June 2023 | 958,347 |
Company |
Improvements | Fixtures |
to | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 July 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 30 June 2024 |
DEPRECIATION |
At 1 July 2023 |
Charge for year |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
NORFRAN LIMITED (REGISTERED NUMBER: SC361880) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 |
DEPRECIATION |
At 1 July 2023 |
Charge for year |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: West Chirton Trading Estate, North Shields, Tyne And Wear, United Kingdom, NE29 7TY |
Nature of business: |
% |
Class of shares: | holding |
NORFRAN LIMITED (REGISTERED NUMBER: SC361880) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
12. | STOCKS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Stocks | 708,976 | 769,338 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 1,894,897 | 3,225,525 |
Amounts owed by group undertakings | - | - |
Other debtors | - | 22,395 |
Prepayments | 98,666 | 80,095 |
1,993,563 | 3,328,015 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Hire purchase contracts (see note 16) | 149,540 | 165,045 |
Trade creditors | 345,777 | 834,188 |
Amounts owed to related undertakings | 1,172,115 | 1,554,016 | 1,161,501 | 1,525,000 |
Tax | - | 10,182 |
Social security and other taxes | 57,572 | 83,371 |
VAT | 56,092 | 38,042 | 64,081 | 42,563 |
Other creditors | 9,749 | 12,106 |
Accrued expenses | 117,285 | 339,252 |
1,908,130 | 3,036,202 |
The bank holds a bond and floating charge over the whole assets of the company and there is a cross corporate guarantee between the company and certain related parties. |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Hire purchase contracts (see note 16) | 174,609 | 324,150 |
NORFRAN LIMITED (REGISTERED NUMBER: SC361880) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Gross obligations repayable: |
Within one year | 157,758 | 178,547 |
Between one and five years | 178,608 | 336,366 |
336,366 | 514,913 |
Finance charges repayable: |
Within one year | 8,218 | 13,502 |
Between one and five years | 3,999 | 12,216 |
12,217 | 25,718 |
Net obligations repayable: |
Within one year | 149,540 | 165,045 |
Between one and five years | 174,609 | 324,150 |
324,149 | 489,195 |
Company |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Gross obligations repayable: |
Within one year |
Between one and five years |
Finance charges repayable: |
Within one year |
Between one and five years |
Net obligations repayable: |
Within one year |
Between one and five years |
NORFRAN LIMITED (REGISTERED NUMBER: SC361880) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
16. | LEASING AGREEMENTS - continued |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | 25,583 | 27,040 |
Between one and five years | 14,773 | 26,916 |
40,356 | 53,956 |
Company |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
The operating leases are for motor vehicles. The lease terms are up to three years. |
The hire purchase contracts are for machinery which is rented for periods of up to 5 years. These are recognised as tangible fixed assets in note 9. |
17. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax |
Tax losses carried forward | (157,104 | ) | (194,241 | ) | ( |
) | ( |
) |
Accelerated capital allowances | 624,839 | 621,918 | 598,391 | 594,782 |
467,735 | 427,677 | 441,287 | 400,541 |
Group |
Deferred |
tax |
£ |
Balance at 1 July 2023 | 427,677 |
Provided during year | 40,058 |
Balance at 30 June 2024 | 467,735 |
NORFRAN LIMITED (REGISTERED NUMBER: SC361880) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
17. | PROVISIONS FOR LIABILITIES - continued |
Company |
Deferred |
tax |
£ |
Balance at 1 July 2023 |
Provided during year |
Balance at 30 June 2024 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
There is a single class of ordinary shares. There are no restrictions on dividends and the repayment of capital. |
19. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 July 2023 | 4,480,517 |
Profit for the year | 88,332 |
At 30 June 2024 | 4,568,849 |
Company |
Retained |
earnings |
£ |
At 1 July 2023 |
Profit for the year |
At 30 June 2024 |
There is a single class of ordinary shares. There are no restrictions on dividends and the repayment of capital. |
NORFRAN LIMITED (REGISTERED NUMBER: SC361880) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
20. | RELATED PARTY DISCLOSURES |
During the year the group entered into transactions, in the ordinary course of business, with other related parties under the control of common directors. Transactions entered into, and trading balances outstanding at 30 June, are as follows: |
2024 | 2023 |
£ | £ |
Purchases from related parties | 3,121,091 | 3,152,880 |
Amounts due to related parties | 1,172,115 | 1,554,016 |
Purchases between related parties are made at normal market prices. |
Key management personnel include the Directors and senior management team. Total key management personnel compensation was £260,412 (2023: £245,151). |