Caseware UK (AP4) 2023.0.135 2023.0.135 2024-08-312024-08-31962023-09-0193falseThe principal activity of the company in the year under review was that of the manufacture of metal products and other related works.falsefalsefalse 1328169 2023-09-01 2024-08-31 1328169 2022-09-01 2023-08-31 1328169 2024-08-31 1328169 2023-08-31 1328169 2022-09-01 1328169 5 2023-09-01 2024-08-31 1328169 5 2022-09-01 2023-08-31 1328169 d:Director2 2023-09-01 2024-08-31 1328169 d:Director3 2023-09-01 2024-08-31 1328169 d:Director4 2023-09-01 2024-08-31 1328169 d:Director5 2023-09-01 2024-08-31 1328169 d:Director6 2023-09-01 2024-08-31 1328169 d:RegisteredOffice 2023-09-01 2024-08-31 1328169 d:Agent1 2023-09-01 2024-08-31 1328169 e:Buildings e:LongLeaseholdAssets 2023-09-01 2024-08-31 1328169 e:Buildings e:LongLeaseholdAssets 2024-08-31 1328169 e:Buildings e:LongLeaseholdAssets 2023-08-31 1328169 e:PlantMachinery 2023-09-01 2024-08-31 1328169 e:PlantMachinery 2024-08-31 1328169 e:PlantMachinery 2023-08-31 1328169 e:PlantMachinery e:OwnedOrFreeholdAssets 2023-09-01 2024-08-31 1328169 e:MotorVehicles 2023-09-01 2024-08-31 1328169 e:MotorVehicles 2024-08-31 1328169 e:MotorVehicles 2023-08-31 1328169 e:MotorVehicles e:OwnedOrFreeholdAssets 2023-09-01 2024-08-31 1328169 e:FurnitureFittings 2023-09-01 2024-08-31 1328169 e:FurnitureFittings 2024-08-31 1328169 e:FurnitureFittings 2023-08-31 1328169 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-09-01 2024-08-31 1328169 e:ComputerEquipment 2023-09-01 2024-08-31 1328169 e:ComputerEquipment 2024-08-31 1328169 e:ComputerEquipment 2023-08-31 1328169 e:ComputerEquipment e:OwnedOrFreeholdAssets 2023-09-01 2024-08-31 1328169 e:OwnedOrFreeholdAssets 2023-09-01 2024-08-31 1328169 e:CurrentFinancialInstruments 2024-08-31 1328169 e:CurrentFinancialInstruments 2023-08-31 1328169 e:CurrentFinancialInstruments e:WithinOneYear 2024-08-31 1328169 e:CurrentFinancialInstruments e:WithinOneYear 2023-08-31 1328169 e:ReportableOperatingSegment1 2023-09-01 2024-08-31 1328169 e:ReportableOperatingSegment1 2022-09-01 2023-08-31 1328169 e:ReportableOperatingSegment2 2023-09-01 2024-08-31 1328169 e:ReportableOperatingSegment2 2022-09-01 2023-08-31 1328169 e:ReportableOperatingSegment3 2023-09-01 2024-08-31 1328169 e:ReportableOperatingSegment3 2022-09-01 2023-08-31 1328169 e:UKTax 2023-09-01 2024-08-31 1328169 e:UKTax 2022-09-01 2023-08-31 1328169 e:ShareCapital 2024-08-31 1328169 e:ShareCapital 2023-08-31 1328169 e:RetainedEarningsAccumulatedLosses 2023-09-01 2024-08-31 1328169 e:RetainedEarningsAccumulatedLosses 2024-08-31 1328169 e:RetainedEarningsAccumulatedLosses 2022-09-01 2023-08-31 1328169 e:RetainedEarningsAccumulatedLosses 2023-08-31 1328169 e:RetainedEarningsAccumulatedLosses 2022-09-01 1328169 e:AcceleratedTaxDepreciationDeferredTax 2024-08-31 1328169 e:AcceleratedTaxDepreciationDeferredTax 2023-08-31 1328169 e:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2023-09-01 2024-08-31 1328169 e:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2024-08-31 1328169 e:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2023-08-31 1328169 d:OrdinaryShareClass1 2023-09-01 2024-08-31 1328169 d:OrdinaryShareClass1 2024-08-31 1328169 d:OrdinaryShareClass1 2023-08-31 1328169 d:FRS102 2023-09-01 2024-08-31 1328169 d:Audited 2023-09-01 2024-08-31 1328169 d:FullAccounts 2023-09-01 2024-08-31 1328169 d:PrivateLimitedCompanyLtd 2023-09-01 2024-08-31 1328169 e:WithinOneYear 2024-08-31 1328169 e:WithinOneYear 2023-08-31 1328169 e:BetweenOneFiveYears 2024-08-31 1328169 e:BetweenOneFiveYears 2023-08-31 1328169 e:MoreThanFiveYears 2024-08-31 1328169 e:MoreThanFiveYears 2023-08-31 1328169 2 2023-09-01 2024-08-31 1328169 f:PoundSterling 2023-09-01 2024-08-31 iso4217:GBP xbrli:shares xbrli:pure
Company registration number: 1328169







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 AUGUST 2024


PROPAK SHEET METAL LIMITED






































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PROPAK SHEET METAL LIMITED
 


 
COMPANY INFORMATION


Directors
A. Child 
K. D. Deamer 
A. D.  Hughes 
R. Marven 
M. Bennett 




Registered number
1328169



Registered office
Unit 1 Gunnels Wood Park
Gunnels Wood Road

Stevenage

Hertfordshire

SG1 2BH




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

Ashcombe House

5 The Crescent

Leatherhead

Surrey

KT22 8DY




Bankers
HSBC Bank plc
Town Centre

Danestrete

Stevenage

Hertfordshire

SG1 1BY





 


PROPAK SHEET METAL LIMITED
 



CONTENTS



Page
Strategic Report
1 - 3
Directors' Report
4 - 5
Independent Auditors' Report
6 - 9
Statement of Income and Retained Earnings
10
Statement of Financial Position
11
Statement of Cash Flows
12
Analysis of Net Debt
13
Notes to the Financial Statements
14 - 25

 


PROPAK SHEET METAL LIMITED
 


 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024

Introduction
 
The directors present their strategic report for the year ended 31st August 2024.

Business review
 
The directors are pleased to report that 2024 has been another profitable year, despite the difficult trading conditions. The challenges in 2024 included ongoing geo-political instability, changes in government in the UK, global elections and pressures in the labour market. Despite these challenges, the directors believe that there will be more opportunity for their highly skilled services, not least given the increase in defence sector spending in the UK, Europe and beyond. 
Turnover declined by 4.5% compared to the previous year. Gross profit margins have also decreased from 41.4% compared to 39.3% in the current year. EBITDA has increased from 22.1% in the previous year to 23.0% in the current year.
In the light of the challenges faced by the company, the directors have taken a number of measures to monitor and mitigate the ongoing risks presented by rising factory costs and material supply chain disruption.
In order to mitigate these risks, cost mitigation measures have been introduced, which include a reduction in overheads and third-party expenditure where practicable. In addition, investment in staff training and production efficiencies have been implemented which have resulted in a positive impact in gross profit margins achieved in the current year. 
Given the nature of the company activities and the proven resilience of the business, the directors believe that these short-term challenges can be managed. The company has a strong balance sheet together with significant cash reserves to ensure that the business continues to operate for the longer term.
The directors continue to work closely with suppliers to ensure ongoing costs are managed and the company has continuous supply in order to meet delivery timetables despite ongoing geo-political challenges that have contributed to supply chain disruption.
The company liquidity ratio has decreased from 5.7 in 2023 to 3.2 at the end of 2024. The decrease in liquidity in the year follows the restructuring of the group as part of the Bennett family succession planning, seeing the ownership of the company pass down a generation.
The directors remain committed to an ongoing programme of capital expenditure to ensure that Propak remains at the forefront of production technology. During the year, machinery and equipment was reviewed and adapted to aid improving efficiencies of the business, as well as aid in the penetration of new markets. In addition, the directors have invested in their state-of-the-art premises based in Hertfordshire to ensure that the company remains an attractive and fulfilling working environment for their highly skilled workforce. This overall review has meant that Propak continues to be the destination of choice for their customer base and facilitates winning new business.
The company is also committed to Quality Assurance and has an active Lean Six Sigma policy. In addition, the company is accredited with AS 9100 and Bronze standard in Supply Chain 21 (SC21), being one of the first sheet metal companies in the UK to achieve this recognition since the inception of the SC21 process. The company are also Rolls Royce and BAE approved. This adds breadth to the customer offer and opens up potential new sources of income, including the aerospace industry. 
The company continues to invest on enhancements to mitigate cyber security risks. The investments included maintaining their Cyber Essentials Plus status and DART Process (MOD) together with continuous upgrade of computer servers, firewalls and anti-virus software whilst maintaining the standalone firewalls on machinery. These enhanced security measures have been continually maintained throughout the current year in order to comply with International Aerospace Supply Chain requirements, which has been developed in conjunction with BAE Systems, Northrop Grumman and Rolls Royce.
In addition to the above accreditations, the company holds BAE and MBDA approval for plating and painting processes undertaken at the company's state of the art facilities. The company is also JOSCAR approved in connection with government procurement requirements.

Page 1

 


PROPAK SHEET METAL LIMITED
 



STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024

Principal risks and uncertainties
 
Business risks
The company operates in the market of precision sheet metal solutions, in which there are risks of competition from within the UK and of overseas supply. The company mitigates these risks and differentiates itself by focusing on innovative design, technical expertise, customer service and continual investment in state of the art facilities along with the directors belief that the staff of all ages and skills are exemplary.
Financial risks
The company's principal financial instruments comprise bank balances, other debtors and other creditors. The main purpose of these instruments is to finance the company's operations. The nature of the financial instruments used by the company is such that their market value does not fluctuate as a result of changes in market prices. The company's approach to managing other risks applicable to the financial instruments concerned is included within the directors' report. 
The company also faces wage pressure given the highly skilled workforce combined with inflationary pressures in the UK economy. The directors regularly review salary levels to ensure that they remain competitive to attract and retain talent. In addition, rising costs are reviewed in conjunction with investments in technology to drive efficiencies and an overall review of the pricing structure for the company’s services.
The company also has a robust cash management strategy to ensure that any such risks arising can be managed from existing reserves.
Future Developments
So far, the new financial year continues to bring significant uncertainty given the ongoing geo-political instability, global inflation and the impact of higher costs as a result of the new UK government’s approach to employment related taxes. This global economic turbulence does not look to be ending in the short term. Looking at macro-economic trends, this has already seen volatility in foreign currency rates and pressures on global interest rates. Given the underlying UK inflationary pressures, it seems likely that interest rates may remain higher for longer and wage pressures not disappearing in the short term. This trend is also expected to lead to challenges to liquidity in the coming months as suppliers and customers will face their own cash flow issues. There are a number of elections in Europe scheduled for 2025 and the new government administration in the USA has been suggesting trade tariffs and sanctions levied on its global supply partners. This uncertainty combined with the low consumer confidence in the UK following the elections in 2024 points to continued slow economic growth in the short term. The UK government has pledged commitment to large infrastructure projects and defence spending is likely to also increase. These defence spending increases are also likely to be seen in North America and Europe which brings opportunity to Propak given the skillset and customer base.
Inflation continues to be a key risk following supply chain disruption caused geo-political events and supply chain liquidity issues. The business faces material price volatility together with ongoing pressures on labour costs. Labour costs are also being driven upwards following short supply in the market as well as ongoing cost of living pressure fuelled by inflation and sustained higher interest rates.
The directors assert that they have a strong balance sheet that is robust enough to withstand volatility. The company has substantial cash balances, net assets and is historically profitable. In addition, the directors also feel the ongoing risk mitigation strategies will be adequate in dealing with any new risks that may manifest in the coming years. The company has also continued to enhance procurement strategies in order to manage short term material price volatility and the risk of stock outs.
The directors are committed to further investments in the business in the coming year and plan to invest in new plant and machinery. The planned investments include upgrading the motor fleet together with state-of-the-art production technology as required. The directors also recognise the ongoing importance of cyber security as this remains critical element of their business. The directors plan further enhancements in Cyber security and DART processes in the next twelve months, ensuring continued data integrity and security throughout the business.

Page 2

 


PROPAK SHEET METAL LIMITED
 



STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024


This report was approved by the board and signed on its behalf.


................................................
M. Bennett
Director

Date: 26 March 2025
Page 3

 


PROPAK SHEET METAL LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024

The directors present their report and the financial statements for the year ended 31 August 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £1,821,197 (2023 - £1,989,815).

Dividends paid in the year amounted to £5,250,000 (2023 - £219,823).

Directors

The directors who served during the year were:

A. Child 
K. D. Deamer 
A. D.  Hughes 
R. Marven 
M. Bennett (appointed on 28th September 2023) 

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Page 4

 


PROPAK SHEET METAL LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024

Auditors

The auditorsMenzies LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





................................................
M. Bennett
Director

Date: 26 March 2025
Page 5

 


PROPAK SHEET METAL LIMITED
 

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PROPAK SHEET METAL LIMITED

Opinion


We have audited the financial statements of Propak Sheet Metal Limited (the 'Company') for the year ended 31 August 2024, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position, the Statement of Cash Flows and the related notes, including a summary of significant accounting policiesThe 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 31 August 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Other information


The other information comprises the information included in the annual report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the annual reportOur 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.


Page 6

 


PROPAK SHEET METAL LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PROPAK SHEET METAL LIMITED (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 


PROPAK SHEET METAL LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PROPAK SHEET METAL LIMITED (CONTINUED)

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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

•The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including UK Companies Act, employment law, health and safety, pensions legislation and tax legislation.
 
•We understood how the Company is complying with those legal and regulatory frameworks by making inquiries to management and those responsible for legal and compliance procedures. We assessed the extent of compliance with these legal and compliance procedures as part of our procedures on the related financial statement items.
 
•The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognize non-compliance with laws and regulations. The assessment did not identify any issues in this area.
 
•We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur. We identified the risk of override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed by the engagement team included:
 
•Identifying and assessing the design 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 judgments made by management in its significant accounting estimates; and
•Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
 
The assessment did not identify any issues in these areas.


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 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 Auditors' Report.


Page 8

 


PROPAK SHEET METAL LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PROPAK SHEET METAL LIMITED (CONTINUED)

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 2006Our 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 Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Andrew Hookway FCA (Senior Statutory Auditor)
for and on behalf of
Menzies LLP
Chartered Accountants
Statutory Auditor
Ashcombe House
5 The Crescent
Leatherhead
Surrey
KT22 8DY

26 March 2025
Page 9

 


PROPAK SHEET METAL LIMITED
 


 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 AUGUST 2024

2024
2023
Note
£
£

  

Turnover
 4 
11,829,551
12,387,371

Cost of sales
  
(7,178,013)
(7,263,089)

Gross profit
  
4,651,538
5,124,282

Administrative expenses
  
(2,244,999)
(2,572,642)

Operating profit
  
2,406,539
2,551,640

Interest receivable and similar income
 8 
38,614
39,075

Interest payable and similar expenses
 9 
-
(4,104)

Profit before tax
  
2,445,153
2,586,611

Tax on profit
 10 
(623,956)
(596,796)

Profit after tax
  
1,821,197
1,989,815

  

  

Retained earnings at the beginning of the year
  
7,576,337
5,806,345

  
7,576,337
5,806,345

Profit for the year
  
1,821,197
1,989,815

Dividends declared and paid
  
(5,250,000)
(219,823)

Retained earnings at the end of the year
  
4,147,534
7,576,337
The notes on pages 14 to 25 form part of these financial statements.
Page 10

 


PROPAK SHEET METAL LIMITED
REGISTERED NUMBER:1328169



STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 11 
1,487,259
1,306,885

  
1,487,259
1,306,885

Current assets
  

Stocks
 12 
921,123
1,128,635

Debtors
 13 
2,950,940
2,640,139

Cash at bank and in hand
  
2,108,694
5,235,958

  
5,980,757
9,004,732

Creditors: amounts falling due within one year
 14 
(1,862,106)
(1,580,163)

Net current assets
  
 
 
4,118,651
 
 
7,424,569

Total assets less current liabilities
  
5,605,910
8,731,454

Provisions for liabilities
  

Deferred tax
 15 
(208,376)
(259,617)

Other provisions
 16 
(1,200,000)
(845,500)

  
 
 
(1,408,376)
 
 
(1,105,117)

Net assets
  
4,197,534
7,626,337


Capital and reserves
  

Called up share capital 
 17 
50,000
50,000

Profit and loss account
  
4,147,534
7,576,337

  
4,197,534
7,626,337


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
M. Bennett
Director

Date: 26 March 2025

The notes on pages 14 to 25 form part of these financial statements.
Page 11

 


PROPAK SHEET METAL LIMITED
 



STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
1,821,197
1,989,815

Adjustments for:

Depreciation of tangible assets
326,268
215,676

Loss on disposal of tangible assets
(12,178)
(24,670)

Interest paid
-
4,104

Interest received
(38,614)
(39,075)

Taxation charge
572,715
596,796

Decrease in stocks
207,512
236,571

(Increase) in debtors
(310,801)
(704,902)

(Decrease) in creditors
(9,984)
(309,979)

Increase in provisions
354,500
-

Corporation tax (paid)
(330,512)
(220,383)

Net cash generated from operating activities

2,580,103
1,743,953


Cash flows from investing activities

Purchase of tangible fixed assets
(508,111)
(1,119,739)

Sale of tangible fixed assets
13,647
24,670

Interest received
37,097
39,075

Interest paid
-
(4,104)

Net cash from investing activities

(457,367)
(1,060,098)

Cash flows from financing activities

Dividends paid
(5,250,000)
(219,823)

Net cash used in financing activities
(5,250,000)
(219,823)

Net (decrease)/increase in cash and cash equivalents
(3,127,264)
464,032

Cash and cash equivalents at beginning of year
5,235,958
4,771,926

Cash and cash equivalents at the end of year
2,108,694
5,235,958


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,108,694
5,235,958

2,108,694
5,235,958


The notes on pages 14 to 25 form part of these financial statements.

Page 12

 


PROPAK SHEET METAL LIMITED
 



ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 AUGUST 2024




At 1 September 2023
Cash flows
At 31 August 2024
£

£

£

Cash at bank and in hand

5,235,958

(3,127,264)

2,108,694


5,235,958
(3,127,264)
2,108,694

The notes on pages 14 to 25 form part of these financial statements.

Page 13

 


PROPAK SHEET METAL LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

1.


General information

Propak Sheet Metal Limited is a private company limited by shares, registered in England and Wales. The company's registered number, registered office and trading address can be found on the Company Information page.
The principal activity of Propak Sheet Metal Limited is manufacture of metal products and other related works.
The presentation currency of the financial statements is the Pound Sterling (£).

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes for the sale of metal products and related works. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.3

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.4

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 14

 


PROPAK SHEET METAL LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.5

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.6

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.


 
2.7

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. 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.

Page 15

 


PROPAK SHEET METAL LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)


2.7
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property
-
over the life of the lease
Plant and machinery
-
15%
Motor vehicles
-
25%
Fixtures and fittings
-
20%
Computer equipment
-
25%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.8

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.9

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.10

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.11

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 16

 


PROPAK SHEET METAL LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.12

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

 
2.13

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Key source of estimation uncertainty - Dilapidation provision
A key area of judgement is in relation to provisions for dilapidations. Management have considered the potential costs of refurbishment and its likelihood of occurring. The directors use surveyors to estimate the cost of said refurbishment and a provision is included based thereon.
Key source of estimation uncertainty - Work in progress
The valuation of work in progress is based on the cost of the material and labour plus attributable overheads based on the normal level of activity. The directors estimate the stage of completion of work in order to assess the valuation at the year end.

Page 17

 


PROPAK SHEET METAL LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

4.


Turnover

2024
2023
£
£

Sales - United Kingdom
11,776,311
12,272,624

Sales - Europe
49,321
63,059

Sales - Rest of world
3,919
51,688

11,829,551
12,387,371


Revenue is derived from the principal activity of the company, being sale of manufactured metal works. 


5.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
17,425
13,750

Fees payable to the Company's auditors in respect of:

Preparation year end accounts
1,575
3,500

Taxation compliance services
750
500

6.


Employees

2024
2023
£
£

Wages and salaries
4,311,136
4,518,139

Social security costs
477,079
521,599

Cost of defined contribution scheme
141,661
256,479

4,929,876
5,296,217


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Directors and administration
18
17



Production and sales
75
79

93
96

Page 18

 


PROPAK SHEET METAL LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

7.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
549,839
374,699

Company contributions to defined contribution pension schemes
4,015
2,643

553,854
377,342


During the year retirement benefits were accruing to 3 directors (2023 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £155,834 (2023 - £81,500).


8.


Interest receivable

2024
2023
£
£


Other interest receivable
38,614
39,075

38,614
39,075


9.


Interest payable and similar expenses

2024
2023
£
£


Finance leases and hire purchase contracts
-
4,104

-
4,104

Page 19

 


PROPAK SHEET METAL LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
675,197
381,753

Adjustments in respect of previous periods
-
(2,787)


675,197
378,966


Total current tax
675,197
378,966

Deferred tax


Origination and reversal of timing differences
(51,241)
217,830

Total deferred tax
(51,241)
217,830


Tax on profit
623,956
596,796

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 21.5%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
2,445,153
2,586,611


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 21.5%)
611,288
556,121

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
11,386
6,967

Capital allowances for year in excess of depreciation
52,523
(181,335)

Higher rate taxes on overseas earnings
-
(2,787)

Adjustment for long accounting periods leading to an increase (decrease) in the tax charge
(51,241)
217,830

Total tax charge for the year
623,956
596,796

Page 20

PROPAK SHEET METAL LIMITED
  
 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024



11.


Tangible fixed assets






Long-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£
£



Cost or valuation


At 1 September 2023
861,994
3,447,107
540,113
113,970
82,774
5,045,958


Additions
354,500
12,815
92,046
-
48,750
508,111


Disposals
-
-
(24,167)
-
(23,150)
(47,317)



At 31 August 2024

1,216,494
3,459,922
607,992
113,970
108,374
5,506,752



Depreciation


At 1 September 2023
861,994
2,504,024
193,176
111,604
68,275
3,739,073


Charge for the year on owned assets
-
185,245
126,084
842
14,097
326,268


Disposals
-
-
(22,698)
-
(23,150)
(45,848)



At 31 August 2024

861,994
2,689,269
296,562
112,446
59,222
4,019,493



Net book value



At 31 August 2024
354,500
770,653
311,430
1,524
49,152
1,487,259



At 31 August 2023
-
943,083
346,937
2,366
14,499
1,306,885

Page 21
 


PROPAK SHEET METAL LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

12.


Stocks

2024
2023
£
£

Raw materials and consumables
129,016
181,787

Work in progress
274,674
587,487

Finished goods and goods for resale
517,433
359,361

921,123
1,128,635


Page 22

 


PROPAK SHEET METAL LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

13.


Debtors


2024
2023
£
£



Trade debtors
1,861,823
1,537,751

Amounts owed by group undertakings
38,071
-

Amounts owed by connected companies
520,420
600,000

Other debtors
700
800

Prepayments and accrued income
529,926
501,588

2,950,940
2,640,139



14.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
431,848
587,937

Corporation tax
673,680
381,753

Other taxation and social security
595,780
449,974

Other creditors
2,031
1,732

Accruals and deferred income
158,767
158,767

1,862,106
1,580,163



15.


Deferred taxation




2024
2023


£

£






At beginning of year
(259,617)
(41,787)


Charged to profit or loss
51,241
(217,830)



At end of year
(208,376)
(259,617)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(208,376)
(259,617)

(208,376)
(259,617)

Page 23

 


PROPAK SHEET METAL LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

16.


Provisions




Dilapidations

£





At 1 September 2023
845,500


Other movements
354,500



At 31 August 2024
1,200,000


17.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



50,000 (2023 - 50,000) Ordinary shares of £1.00 each
50,000
50,000

Each ordinary share carries voting rights and there are no restrictions on the distribution of dividends. 



18.


Contingent liabilities

The company has granted a fixed and floating charge over its assets in favor of HSBC Bank PLC as security. The charge covers all present and future assets of the company, including but not limited to land, buildings, inventory, and trade receivables. As of the reporting date, the exact amount secured under this arrangement is not determinable. Management continues to assess the impact of this charge on the company’s financial position.


19.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £141,661 (2023 - £253,836). There were no contributions payable to the fund at the reporting date.


20.


Commitments under operating leases

At 31 August 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
506,247
506,247

Later than 1 year and not later than 5 years
2,024,988
2,024,988

Later than 5 years
590,622
1,096,869

3,121,857
3,628,104

Page 24

 


PROPAK SHEET METAL LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

21.


Related party transactions

L. Bennett, the ultimate controlling party is a director of Propak Architectural Glazing Limited, a company registered in England and Wales. During the year the company made sales totalling £1,766,112 (2023: £1,100,000) to Propak Architectural Glazing Limited.
At the balance sheet date, the company was owed £520,420 (2023: £600,000) from Propak Architectural Glazing Limited. 


22.


Controlling party

On the 31st October 2023, Propak Sheet Metal Limited was acquired by Propak Group Holdings Limited, a company registered in England and Wales whose registered office is Unit 1 Gunnels Wood Park, Gunnels Wood Road, Stevenage, Hertfordshire, SG1 2BH.
Propak Group Holdings Limited is regarded as the immediate controlling party and is the smallest and largest group which includes Propak Sheet Metal Limited in its consolidated financial statements. These financial statements are available at the company registered office as noted above. L. Bennett is considered to be the ultimate controlling party by virtue of his shareholding in Propak Group Holdings Limited.

 
Page 25