Company registration number 06312849 (England and Wales)
INTEGRATED ALUMINIUM COMPONENTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
INTEGRATED ALUMINIUM COMPONENTS LIMITED
COMPANY INFORMATION
Directors
Mr MJ Duffell
(Appointed 21 December 2023)
Mrs VA Duffell
(Appointed 21 December 2023)
Mr AM Duffell
(Appointed 21 December 2023)
Mr MS Duffell
(Appointed 21 December 2023)
Mr MJ Gwinnett
(Appointed 21 December 2023)
Mrs VA Moody
(Appointed 21 December 2023)
Mr D Taylor
(Appointed 21 December 2023)
Mr DM Duffell
(Appointed 21 December 2023)
Mrs HS Henry
(Appointed 1 November 2024)
Company number
06312849
Registered office
No 86 Guilden Sutton Lane
Guilden Sutton
Chester
CH3 7EX
Auditor
Sedulo Audit Limited
5th Floor Walker House
Exchange Flags
Liverpool
Merseyside
United Kingdom
L2 3YL
Bankers
National Westminster Bank PLC
4 Tuesday Market Place
King's Lynn
Norfolk
PE30 1YY
INTEGRATED ALUMINIUM COMPONENTS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Notes to the financial statements
12 - 26
INTEGRATED ALUMINIUM COMPONENTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Principal activities

The principal activities of the Company are the manufacture and sale of anodised parts and deep drawn pressings to the pharmaceutical and cosmetic industries.

Review of the business

The Lendlock Group purchased IAC after discussions with the previous owners, but also agreeing a supply agreement to have continuity on their product that was supplied from IAC. This was an initial 2 year period with the objective to have a long term partnership.

Within the Lendlock Group there is another pressing and anodising company – SACO and integrating IAC into the group would give further opportunities to expand the portfolio of offerings to the market as they look for growth and efficiency savings over time.

There are long term plans to invest in the site, firstly purchasing the building that was previously rented, then with a view to invest further in terms of solar and also plant and machinery within the factory.

Key performance indicators

The key performance indicators of the company are as follows:

 

                    2023        2022

                    £000        £000

Revenue                    8,283        9,663

Loss before tax                (794)        (73)

Net assets/(liabilities)            6,033        (13,263)

 

The directors expect revenue to grow in the future following the acquisition by the Lendlock Group and a strategic change in direction.

The increase in the loss before tax reflects the decrease in revenue during the year.

As part of the acquisition of the company by the Lendlock Group, the inter-company debt owed to the previous parent company of circa £17m was repaid in full, hence the increase in net assets.

 

 

On behalf of the board

Mrs HS Henry
Director
28 March 2025
INTEGRATED ALUMINIUM COMPONENTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2023, which is to within 1 day of the period ended 30th December 2023.

Results and dividends

Revenue for the period was £8,283k (2022: £9,663k) and the loss for the financial period was £2,650k (2022: £144k) which will be transferred to reserves.

 

The Company had net assets of £4,209k (2022: £12,991k net liabilities) at the balance sheet date.

 

The results for the year are set out on page 9.

No ordinary dividends were paid.

Directors do not recommend payment of a dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr MJ Duffell
(Appointed 21 December 2023)
Mrs VA Duffell
(Appointed 21 December 2023)
Mr AM Duffell
(Appointed 21 December 2023)
Mr MS Duffell
(Appointed 21 December 2023)
Mr MJ Gwinnett
(Appointed 21 December 2023)
Mrs VA Moody
(Appointed 21 December 2023)
Mr D Taylor
(Appointed 21 December 2023)
Mr DM Duffell
(Appointed 21 December 2023)
Mr D Hodkinson
(Resigned 21 December 2023)
Mr O Klug
(Resigned 21 December 2023)
Ms L Lodge
(Resigned 1 February 2023)
Mr CA Hirst
(Resigned 21 December 2023)
Mr ARA Dawson
(Appointed 1 February 2023 and resigned 21 December 2023)
Mrs HS Henry
(Appointed 1 November 2024)
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Directors' insurance

Insurance cover is in force in respect of the personal liabilities which may be incurred by directors and officers in the course of their service with the Company.

Supplier payment policy

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

 

The company's current policy concerning the payment of trade creditors is to:

 

Trade creditors of the company at the year end were equivalent to 50 day's purchases, based on the average daily amount invoiced by suppliers during the year.

INTEGRATED ALUMINIUM COMPONENTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Financial instruments

The management of the business and the execution of the Company's strategy is subject to a number of risks and uncertainties.

Liquidity risk

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The company uses interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.

Foreign currency risk

The company’s principal foreign currency exposures arise from trading with overseas companies. Company policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. This hedging activity involves the use of foreign exchange forward contracts.

Credit risk

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade Receivables are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Competition risk

The Company was heavily reliant on one key customer, this customer was its immediate parent undertaking until being acquired by Specialist Anodising Company Ltd on 22nd December 2023. As part of the acquisition a supply agreement was entered into with the previous parent company as well as there now being new sales to other group companies.

Future developments

The directors are confident in that the profitability of the business will improve in the coming periods as a result of the reasons noted earlier in the strategic report.

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.

 

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

INTEGRATED ALUMINIUM COMPONENTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
Mrs HS Henry
Director
28 March 2025
INTEGRATED ALUMINIUM COMPONENTS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

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

INTEGRATED ALUMINIUM COMPONENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INTEGRATED ALUMINIUM COMPONENTS LIMITED
- 6 -
Opinion

We have audited the financial statements of Integrated Aluminium Components Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

INTEGRATED ALUMINIUM COMPONENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INTEGRATED ALUMINIUM COMPONENTS LIMITED (CONTINUED)
- 7 -
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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

- Enquiry of management, those charged with governance and the entity’s solicitors (or in-house legal team) around actual and potential litigation and claims.

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

 

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.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

INTEGRATED ALUMINIUM COMPONENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INTEGRATED ALUMINIUM COMPONENTS LIMITED (CONTINUED)
- 8 -
Katelyn Dutton (Senior Statutory Auditor)
For and on behalf of Sedulo Audit Limited, Statutory Auditor
Chartered Accountants
5th Floor Walker House
Exchange Flags
Liverpool
Merseyside
L2 3YL
United Kingdom
28 March 2025
INTEGRATED ALUMINIUM COMPONENTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Revenue
3
8,282,933
9,662,861
Cost of sales
(3,676,598)
(3,773,641)
Gross profit
4,606,335
5,889,220
Administrative expenses
(5,920,314)
(5,056,810)
Operating (loss)/profit
4
(1,313,979)
832,410
Finance costs
7
(1,200,501)
(962,902)
Loss before taxation
(2,514,480)
(130,492)
Tax on loss
8
(135,070)
(13,894)
Loss and total comprehensive income for the financial year
(2,649,550)
(144,386)

All results arose from continued operations.

 

The notes on pages 12 to 26 form part of these financial statements.

INTEGRATED ALUMINIUM COMPONENTS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
9
2,648,545
2,847,132
Right-of-use assets
9
984,601
1,224,453
Deferred tax asset
15
25,383
165,113
3,658,529
4,236,698
Current assets
Inventories
10
1,414,745
1,150,009
Trade and other receivables
11
323,216
1,256,143
Cash and cash equivalents
325,083
40,335
2,063,044
2,446,487
Current liabilities
12
(785,602)
(18,696,674)
Net current assets/(liabilities)
1,277,442
(16,250,187)
Total assets less current liabilities
4,935,971
(12,013,489)
Non-current liabilities
12
(726,682)
(977,945)
Net assets/(liabilities)
4,209,289
(12,991,434)
Equity
Called up share capital
17
19,851,273
1,000
Retained earnings
(15,641,984)
(12,992,434)
Total equity
4,209,289
(12,991,434)

All results arose from continued operations.

 

The notes on pages 12 to 26 form part of these financial statements.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 28 March 2025 and are signed on its behalf by:
Mrs HS Henry
Director
Company registration number 06312849 (England and Wales)
INTEGRATED ALUMINIUM COMPONENTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Retained earnings
Total
Notes
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
1,000
(13,176,892)
(13,175,892)
As restated
1,000
(12,848,048)
(12,847,048)
Year ended 31 December 2022:
Loss and total comprehensive income
-
(144,386)
(144,386)
Balance at 31 December 2022
1,000
(12,992,434)
(12,991,434)
Year ended 31 December 2023:
Loss and total comprehensive income
-
(2,649,550)
(2,649,550)
Transactions with owners:
Issue of share capital
17
19,850,273
-
19,850,273
Balance at 31 December 2023
19,851,273
(15,641,984)
4,209,289

All results arose from continued operations.

 

The notes on pages 12 to 26 form part of these financial statements.

INTEGRATED ALUMINIUM COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

Integrated Aluminium Components Limited is a private company limited by shares incorporated in England and Wales. The registered office is No 86 Guilden Sutton Lane, Guilden Sutton, Chester, CH3 7EX. The company's principal activities and nature of its operations are disclosed in the Strategic Report.

1.1
Accounting convention

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, except for the revaluation of certain financial assets and financial liabilities (including derivative financial instruments) at fair value, described further in the accounting policies. The principal accounting policies adopted are set out below.

As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:

1.2
Going concern

The directors have at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The Company has received a letter of continued support from its ultimate parent company who provides financing arrangements. As is the case for any company placing reliance on its ultimate parent company for financial support, the Directors acknowledge that there can be no certainty that this support will continue, although, at the date of approval of these financial statements, they have no reason to believe that is will not do so.

INTEGRATED ALUMINIUM COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.3
Revenue

Revenue is recognised as performance obligations to deliver products or services are satisfied. The transaction price of each contract is allocated to separately identifiable performance obligations based on the amount of consideration expected to be received in exchange for satisfying these performance obligations.

 

Products sold include manufactured anodised parts with deep drawn pressings.

 

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

1.4
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
Remaining lease term
Plant and equipment
3 to 15 years

Assets in the course of construction are not depreciated.

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 recognised in the income statement.

1.5
Impairment of tangible assets

At each reporting 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.

 

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.

INTEGRATED ALUMINIUM COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.6
Inventories

Inventories 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 inventories to their present location and condition.

 

Inventories 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.

1.7
Cash and cash equivalents

Cash and cash equivalents 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.

1.8
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets at fair value through profit or loss

When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.

Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Financial assets at fair value through other comprehensive income

Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

 

A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.

INTEGRATED ALUMINIUM COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -

The company has made an irrevocable election to recognize changes in fair value of investments in equity instruments through other comprehensive income, not through profit or loss. A gain or loss from fair value changes will be shown in other comprehensive income and will not be reclassified subsequently to profit or loss. Equity instruments measured at fair value through other comprehensive income are recognized initially at fair value plus transaction cost directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognized through other comprehensive income are directly transferred to retained earnings when the equity instrument is derecognized or its fair value substantially decreased. Dividends are recognized as finance income in profit or loss.

Impairment of financial assets

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.

 

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

 

For trade receivables, the simplified approach permitted by IFRS 9 is applied, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.9
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue 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.

INTEGRATED ALUMINIUM COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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 income statement, 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 inventories or non-current 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

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

INTEGRATED ALUMINIUM COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Critical accounting estimates and judgements

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Key sources of estimation uncertainty
Impairment of property, plant and equipment

Property, plant and equipment is reviewed for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable. When a review for impairment is conducted, the recoverable amount is determined based on value in use calculations prepared on the basis of management's assumptions and estimates.

Recoverability of deferred tax assets

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits, together with future tax planning strategies.

INTEGRATED ALUMINIUM COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Critical accounting estimates and judgements
(Continued)
- 18 -
Leases

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Company 'would have to pay', which requires estimation when no observable rates are available (such as for subsidiaries that do not enter into financing transactions) or when they need to be adjusted to reflect the terms and conditions of the lease (for example, when leases are not in the subsidiary's functional currency). The Company estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates (such as the subsidiary's stand-alone credit rating).

Provision for inventory obsolescence

Provisions for inventory obsolescence are made where there is uncertainty over the recoverable amount. Therefore, judgement is applied in making a reliable estimate of the quantum and timing of any provision which may be required. In determining the amount to recognise for any provisions, management assesses both the current and future forecast usages of the inventory based on the most available data at that time.

3
Revenue
2023
2022
£
£
Revenue analysed by class of business
Sales of goods
8,282,933
9,662,861
2023
2022
£
£
Revenue analysed by geographical market
United Kingdom
7,274,573
9,170,930
Europe
1,008,360
491,931
8,282,933
9,662,861
4
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
4,763
(1,617)
Restructuring costs
173,799
-
Fees payable to the company's auditor for the audit of the company's financial statements
15,000
32,000
Depreciation of property, plant and equipment
524,286
508,020
Cost of inventories recognised as an expense
3,658,400
3,753,231
INTEGRATED ALUMINIUM COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Production
62
66
Administration and support services
3
3
Total
65
69

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,808,420
1,730,872
Social security costs
171,052
170,378
Pension costs
131,928
124,158
2,111,400
2,025,408
6
Provision expensed in the year

A provision of £1,663,159 was expensed to the profit and loss account in the year relating to inventory.

7
Finance costs
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
1,198,428
925,079
Interest on lease liabilities
2,073
37,823
1,200,501
962,902

Interest payable to group undertakings of £1,198,428 (2022: £925,079) all relates to Bespak Europe Limited, the previous parent company.

INTEGRATED ALUMINIUM COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
8
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
(4,659)
(3,247)
Other tax reliefs
-
(95,000)
Total UK current tax
(4,659)
(98,247)
Deferred tax
Current year
65,268
85,141
Changes in tax rates
4,105
27,000
Adjustment in respect of prior periods
70,356
-
0
139,729
112,141
Total tax charge
135,070
13,894

The charge for the year can be reconciled to the loss per the income statement as follows:

2023
2022
£
£
Loss before taxation
(2,514,480)
(130,492)
Expected tax credit based on a corporation tax rate of 23.52% (2022: 19.00%)
(591,406)
(24,793)
Effect of expenses not deductible in determining taxable profit
65,697
4,000
Adjustment in respect of prior years
42,794
7,687
Effect of change in UK corporation tax rate
4,105
27,000
Amounts not recognised
613,880
-
Taxation charge for the year
135,070
13,894
9
Property, plant and equipment
Leasehold land and buildings
Assets under construction
Plant and equipment
Total
£
£
£
£
Cost
At 1 January 2023
2,140,012
208,709
3,435,491
5,784,212
Additions
-
0
85,847
-
0
85,847
Transfer
-
0
(294,556)
294,556
-
0
At 31 December 2023
2,140,012
-
0
3,730,047
5,870,059
INTEGRATED ALUMINIUM COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Property, plant and equipment
Leasehold land and buildings
Assets under construction
Plant and equipment
Total
£
£
£
£
(Continued)
- 21 -
Accumulated depreciation and impairment
At 1 January 2023
915,559
-
0
797,068
1,712,627
Charge for the year
239,852
-
0
284,434
524,286
At 31 December 2023
1,155,411
-
0
1,081,502
2,236,913
Carrying amount analysed between owned assets and right-of-use assets
At 31 December 2023
Owned assets
-
-
2,648,545
2,648,545
Right-of-use assets
984,601
-
-
984,601
984,601
-
0
2,648,545
3,633,146
At 31 December 2022
Owned assets
-
208,709
2,638,423
2,847,132
Right-of-use assets
1,224,453
-
-
1,224,453
1,224,453
208,709
2,638,423
4,071,585

Property, plant and equipment includes right-of-use assets, as follows:

Right-of-use assets
2023
2022
£
£
Net values at the year end
Property
984,601
1,224,453
Depreciation charge for the year
Property
239,852
246,078
10
Inventories
2023
2022
£
£
Raw materials
718,611
224,004
Work in progress
576,564
782,363
Finished goods
119,570
143,642
1,414,745
1,150,009
INTEGRATED ALUMINIUM COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Inventories
(Continued)
- 22 -

As at 31 December 2023, the following provisions were included, raw materials £12,772 (2022: nil), work in progress £1,663,159 (2022: £1,607,371) and finished goods £4,357 (2022: £866).

11
Trade and other receivables
2023
2022
£
£
Trade receivables
162,904
89,523
Corporation tax recoverable
-
256,780
Amount owed by parent undertaking
57,525
803,392
Prepayments and accrued income
102,787
106,448
323,216
1,256,143
12
Liabilities
Current
Non-current
2023
2022
2023
2022
Notes
£
£
£
£
Trade and other payables
13
496,200
18,411,992
-
0
-
0
Corporation tax
2,376
-
0
-
-
Other taxation and social security
36,204
40,851
-
-
Lease liabilities
14
250,822
243,831
726,682
977,945
785,602
18,696,674
726,682
977,945
13
Trade and other payables
2023
2022
£
£
Trade payables
277,634
959,980
Amount owed to parent undertaking
-
0
17,169,690
Accruals and deferred income
217,953
282,322
Other payables
613
-
496,200
18,411,992
INTEGRATED ALUMINIUM COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
14
Lease liabilities
2023
2022
Maturity analysis
£
£
Within one year
250,822
243,831
In two to five years
726,682
977,945
Total undiscounted liabilities
977,504
1,221,776

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2023
2022
£
£
Current liabilities
250,822
243,831
Non-current liabilities
726,682
977,945
977,504
1,221,776
2023
2022
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
2,073
37,823
15
Deferred taxation
Assets
2023
2022
£
£
Deferred tax balances
25,383
165,113
Deferred tax assets are expected to be recovered after more than one year.
INTEGRATED ALUMINIUM COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Deferred taxation
(Continued)
- 24 -

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

ACAs
£
Asset at 1 January 2022
276,795
Deferred tax movements in prior year
Credit/(charge) to profit or loss
(111,682)
Asset at 1 January 2023
165,113
Deferred tax movements in current year
Credit/(charge) to profit or loss
(69,374)
Other
(70,356)
Asset at 31 December 2023
25,383
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
131,928
124,158

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.

17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
19,851,273
1,000
19,851,273
1,000
Reconciliation of movements during the year:
Ordinary £1
Number
At 1 January 2023
1,000
Issue of fully paid shares
19,850,273
At 31 December 2023
19,851,273
INTEGRATED ALUMINIUM COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
17
Share capital
(Continued)
- 25 -

On 31 October 2023, the Company issued 19,850,273 ordinary shares at par value. Those funds were then applied in repaying intercompany debt.

18
Controlling party

Up until 22 December 2023 the immediate parent undertaking was Bespak Europe Limited, which owned 100% of the Company's share capital.

 

The smallest and largest consolidation in which the results of the company were included was that headed by Roar HoldCo AB. These consolidated financial statements are publicly available and can be obtained from Companies House Sweden. Roar HoldCo AB was deemed to be the company's ultimate controlling party.

 

On 22 December 2023 Specialist Anodising Company Limited acquired 100% of the issued share capital of Integrated Aluminium Components Limited from Bespak Europe Limited. The company's ultimate parent undertaking and controlling party is now Lendlock Group Limited and its immediate parent undertaking is Specialist Anodising Company Limited. The results of the company are consolidated at Lendlock Group Limited and the consolidated financial statements of this group are available at the following address:

 

Guilden Sutton Lane

Chester

United Kingdom

CH3 7EX

 

The Company is a wholly owned subsidiary at the balance sheet date and is not required to disclose subsidiary transactions under paragraph 8(k) of FRS101.

19
Prior year adjustment

In prior years, plant and machinery with a net book value of £328,844 was written off by the company.

However, the plant and machinery is still fully utilised by the company in the current year and has, therefore, been reinstated by way of a prior year adjustment. These assets were further depreciated by £57,549 in the year ended 31 December 2022.

Reconciliation of equity
1 January
31 December
2022
2022
£
£
Equity as previously reported
(13,175,892)
(13,262,729)
Adjustments to prior year
328,844
271,295
As restated
(12,847,048)
(12,991,434)
INTEGRATED ALUMINIUM COMPONENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
19
Prior year adjustment
(Continued)
- 26 -
Reconciliation of loss for the financial period
2022
£
Loss as previously reported and after transition
(86,837)
Adjustments to prior year
(57,549)
As restated
(144,386)
2023-12-312023-01-01Mr MJ DuffellMrs VA DuffellMr AM DuffellMr MS DuffellMr MJ GwinnettMrs VA MoodyMr D TaylorMr DM DuffellMr D HodkinsonMr O KlugMs L LodgeMr CA HirstMr ARA DawsonMrs HS HenryfalsefalseCCH SoftwareiXBRL Review & Tag 2024.2063128492023-01-012023-12-3106312849bus:Director12023-01-012023-12-3106312849bus:Director22023-01-012023-12-3106312849bus:Director32023-01-012023-12-3106312849bus:Director42023-01-012023-12-3106312849bus:Director52023-01-012023-12-3106312849bus:Director62023-01-012023-12-3106312849bus:Director72023-01-012023-12-3106312849bus:Director82023-01-012023-12-3106312849bus:Director142023-01-012023-12-3106312849bus:Director92023-01-012023-12-3106312849bus:Director102023-01-012023-12-3106312849bus:Director112023-01-012023-12-3106312849bus:Director122023-01-012023-12-3106312849bus:Director132023-01-012023-12-3106312849bus:RegisteredOffice2023-01-012023-12-3106312849bus:Agent12023-01-012023-12-31063128492023-12-31063128492022-01-012022-12-3106312849core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3106312849core:RetainedEarningsAccumulatedLosses2022-01-012022-12-31063128492022-12-3106312849core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3106312849core:ConstructionInProgressAssetsUnderConstruction2023-12-3106312849core:PlantMachinery2023-12-3106312849core:ContinuingOperations2023-12-3106312849core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3106312849core:ConstructionInProgressAssetsUnderConstruction2022-12-3106312849core:PlantMachinery2022-12-3106312849core:AcceleratedTaxDepreciationDeferredTax2021-12-3106312849core:AcceleratedTaxDepreciationDeferredTax2022-12-3106312849core:AcceleratedTaxDepreciationDeferredTax2023-12-3106312849core:BetweenOneFiveYears2022-12-3106312849core:CurrentFinancialInstruments2023-12-3106312849core:CurrentFinancialInstruments2022-12-3106312849core:Non-currentFinancialInstruments2023-12-3106312849core:Non-currentFinancialInstruments2022-12-3106312849core:ShareCapital2023-12-3106312849core:ShareCapital2022-12-3106312849core:RetainedEarningsAccumulatedLosses2023-12-3106312849core:RetainedEarningsAccumulatedLosses2022-12-31063128492021-12-3106312849core:ShareCapital2023-01-012023-12-3106312849core:FinancialInstrumentsFairValueThroughProfitOrLoss2023-01-012023-12-3106312849core:Held-to-maturityFinancialAssets2023-01-012023-12-3106312849core:Available-for-saleFinancialAssets2023-01-012023-12-3106312849core:UKTax2023-01-012023-12-3106312849core:UKTax2022-01-012022-12-3106312849core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3106312849core:ConstructionInProgressAssetsUnderConstruction2022-12-3106312849core:PlantMachinery2022-12-31063128492022-12-3106312849core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-012023-12-3106312849core:ConstructionInProgressAssetsUnderConstruction2023-01-012023-12-3106312849core:PlantMachinery2023-01-012023-12-3106312849core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3106312849core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3106312849core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3106312849core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3106312849bus:PrivateLimitedCompanyLtd2023-01-012023-12-3106312849bus:FRS1012023-01-012023-12-3106312849bus:Audited2023-01-012023-12-3106312849bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP