Company registration number 14846599 (England and Wales)
STAINLESS PLATING HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
STAINLESS PLATING HOLDINGS LIMITED
COMPANY INFORMATION
Directors
M N K Aldridge
(Appointed 4 May 2023)
A J Sargeant
(Appointed 4 May 2023)
E A Mckay
(Appointed 4 May 2023)
Company number
14846599
Registered office
24 Don Road
Sheffield
South Yorkshire
S9 2UB
Auditor
Chadwick and Company (Manchester) Limited
Capital House
272 Manchester Road
Droylsden
Manchester
M43 6PW
STAINLESS PLATING HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 35
STAINLESS PLATING HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 1 -

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

Incorporation and principal activities

The company was incorporated on 4 May 2023 when 10,000 Ordinary shares of £0.01 each were issued at par value to establish the share capital of the company.

 

The principal activity of the company is that of a holding company. The principal activities of the subsidiary undertakings within the group are that of precision engineering and the treatment and coating of metals.

Review of the business

On 18 August 2023, the company acquired the entire share capital of Stainless Plating Limited from its parent company, Bushman Properties Limited for a consideration of £108,753.

 

On 24 August 2023, the company acquired the entire share capital of Edger 201 Limited and its subsidiary undertaking Atlantic Precision Engineering Limited for a consideration of £4,127,144.

 

Stainless Plating Limited, Edger 201 Limited and Atlantic Precision Engineering Limited became wholly owned subsidiaries within the group and their results are included in these consolidated financial statements from the date of acquisition.

 

The results for the period and the financial position at the end of the period were considered satisfactory by the directors. At the year end, the group had shareholders' funds of £676,067. The directors believes the group’s position to be satisfactory.

Principal risks and uncertainties

The directors have identified the key risks faced by the group and have put systems in place to mitigate these risks.

 

The directors perceive inflationary pressures on the costs of the products and services it supplies and a rising cost base in general as key risks facing the group. To mitigate these risks, the directors continue to monitor and control costs whilst continuing to source products at competitive prices.

The group believes that the key risk to the business is the general economic climate. However, the directors see this risk is mitigated to a certain extent by its excellent reputation and the quality of the products it supplies.

The group in general operates in a competitive market. By continuing to focus on customer service, the directors believe they will not only mitigate any such risks, but achieve continuing growth going forward.

The group is subject to a number of laws and regulations including environmental and health and safety, which could result in additional costs related to compliance.

 

Interest rate risk

The group and company's funding are principally via a bank mortgage and invoice discounting which attract interest at a variable rate. Funding is also provided by the group's parent undertaking, Bushman Properties Limited. Thus debt costs and cash flow can be affected by the movements in interest rates.

 

Liquidity risk

The group and company manages its cash and borrowing requirements in order to minimise interest expense, and ensure there are sufficient liquid resources to meet day to day business needs.

 

Credit risk

Trade debtors are monitored on an ongoing basis to manage credit risk.

STAINLESS PLATING HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 2 -
Development and performance

The group continues to exploit its reputation in the market and looks to the future with confidence.

 

On behalf of the board

E A Mckay
Director
27 March 2025
STAINLESS PLATING HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the period ended 31 December 2023.

Results and dividends

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

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

M N K Aldridge
(Appointed 4 May 2023)
A J Sargeant
(Appointed 4 May 2023)
E A Mckay
(Appointed 4 May 2023)
P C Bamford
(Appointed 10 August 2023 and resigned 2 January 2025)
Auditor

Chadwick and Company (Manchester) Limited were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of directors' responsibilities

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 auditor of the company 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 auditor of the company is aware of that information.

STAINLESS PLATING HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 4 -
Medium-sized companies exemption

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

On behalf of the board
E A Mckay
Director
27 March 2025
STAINLESS PLATING HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STAINLESS PLATING HOLDINGS LIMITED
- 5 -

Qualified opinion

We have audited the financial statements of Stainless Plating Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

Basis for qualified opinion

We were not appointed as auditor of the group until after 31 December 2023 and thus did not observe the counting of physical inventories in some of the group's subsidiary undertakings at the end of the period. We were unable to satisfy by alternative means concerning the total inventory quantities held by certain of the group's subsidiary undertakings at 31 December 2023, which are included in the Balance Sheet at £777,975, by using other audit procedures. Consequently, we were unable to determine whether any adjustment to this amount was necessary.

 

Furthermore, the accounts of the subsidiary undertakings within the group for the year ended 31 December 2022 were not audited and we are therefore unable to provide assurance that the comparatives and the opening reserves position of the group's subsidiary undertakings are free from misstatements.

 

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 qualified opinion.

 

Key audit matters

 

Except for the matter described in the basis for qualified opinion section, we have determined that there are no key audit matters to be communicated in our report.

Conclusions relating to going concern

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

 

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

 

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

STAINLESS PLATING HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STAINLESS PLATING HOLDINGS LIMITED
- 6 -

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.

 

As described in the basis for qualified section of our report, we were unable to satisfy ourselves concerning the inventory quantities held by certain of the group's subsidiary undertakings of £777,975 held at 31 December 2023, Consequently, we were unable to determine whether any adjustment to the inventory balance or related balances such as cost of sales were necessary.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In respect solely of the limitation on our work relating to stock, described above:

 

Except for the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the group and the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

STAINLESS PLATING HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STAINLESS PLATING HOLDINGS LIMITED
- 7 -
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.

 

Our objectives are also are to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the group financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

 

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.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

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.

We considered and updated our knowledge of the company's specific industry and its regulatory environment, and reviewed the company's documentation surrounding the policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities. Based on this understanding, we identified and assessed the risks of material misstatement in the financial statements and designed and performed audit procedures in response to those risks.

We identified the key laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, including the Health & Safety at Work etc Act 1974, AS9100 Accreditation, Employment Law, UK Companies Act 2006 and all other laws and regulations relating to the business. We also gained knowledge of the legal and regulatory frameworks which do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

Audit response to risks identified

The audit engagement team were made aware of the potential opportunities and incentives that may exist within the company for fraudulent activity and how and where fraud might occur or be concealed within the financial statements.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other manual adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

STAINLESS PLATING HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STAINLESS PLATING HOLDINGS LIMITED
- 8 -

In addition to the above, we designed procedures which included:

 

 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Michael Chadwick FCA, FCCA (Senior Statutory Auditor)
For and on behalf of Chadwick and Company (Manchester) Limited
Chartered Accountants
Statutory Auditor
Capital House
Droylsden
Manchester
M43 6PW
27 March 2025
STAINLESS PLATING HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 9 -
Period
ended
31 December
2023
Notes
£
Turnover
3
2,731,881
Cost of sales
(1,342,791)
Gross profit
1,389,090
Administrative expenses
(688,352)
Operating profit
4
700,738
Interest receivable and similar income
7
1,066
Interest payable and similar expenses
8
(59,473)
Profit before taxation
642,331
Tax on profit
9
33,636
Profit for the financial period
23
675,967
Profit for the financial period is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

STAINLESS PLATING HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 10 -
Period
ended
31 December
2023
£
Profit for the period
675,967
Other comprehensive income
-
Total comprehensive income for the period
675,967
Total comprehensive income for the period is all attributable to the owners of the parent company.
STAINLESS PLATING HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
Notes
£
£
Fixed assets
Goodwill
10
704,319
Negative goodwill
10
(590,591)
Net goodwill
113,728
Tangible assets
11
4,661,754
4,775,482
Current assets
Stocks
14
777,975
Debtors
15
1,720,247
Cash at bank and in hand
103,867
2,602,089
Creditors: amounts falling due within one year
16
(3,835,186)
Net current liabilities
(1,233,097)
Total assets less current liabilities
3,542,385
Creditors: amounts falling due after more than one year
17
(2,494,045)
Provisions for liabilities
Deferred tax liability
20
372,273
(372,273)
Net assets
676,067
Capital and reserves
Called up share capital
22
100
Profit and loss reserves
23
675,967
Total equity
676,067

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

The financial statements were approved by the board of directors and authorised for issue on 27 March 2025 and are signed on its behalf by:
27 March 2025
E A Mckay
Director
Company registration number 14846599 (England and Wales)
STAINLESS PLATING HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
2023
Notes
£
£
Fixed assets
Investments
12
4,235,997
Current assets
Debtors
15
41,039
Cash at bank and in hand
1,982
43,021
Creditors: amounts falling due within one year
16
(1,977,348)
Net current liabilities
(1,934,327)
Total assets less current liabilities
2,301,670
Creditors: amounts falling due after more than one year
17
(2,285,581)
Net assets
16,089
Capital and reserves
Called up share capital
22
100
Profit and loss reserves
23
15,989
Total equity
16,089

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £15,989.

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 27 March 2025 and are signed on its behalf by:
27 March 2025
E A Mckay
Director
Company registration number 14846599 (England and Wales)
STAINLESS PLATING HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 4 May 2023
-
0
-
0
-
Period ended 31 December 2023:
Profit and total comprehensive income
-
675,967
675,967
Issue of share capital
22
100
-
100
Balance at 31 December 2023
100
675,967
676,067
STAINLESS PLATING HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 4 May 2023
-
0
-
0
-
Period ended 31 December 2023:
Profit and total comprehensive income
-
15,989
15,989
Issue of share capital
22
100
-
100
Balance at 31 December 2023
100
15,989
16,089
STAINLESS PLATING HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 15 -
2023
Notes
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
28
2,796,932
Interest paid
(59,473)
Net cash inflow/(outflow) from operating activities
2,737,459
Investing activities
Purchase of business
(3,845,102)
Purchase of tangible fixed assets
(1,201,582)
Interest received
1,066
Net cash used in investing activities
(5,045,618)
Financing activities
Proceeds from issue of shares
100
Proceeds from borrowings
681,071
Repayment of borrowings
(451,250)
Proceeds from new bank loans
2,250,000
Repayment of bank loans
(24,702)
Payment of finance leases obligations
(43,193)
Net cash generated from/(used in) financing activities
2,412,026
Net increase in cash and cash equivalents
103,867
Cash and cash equivalents at beginning of period
-
0
Cash and cash equivalents at end of period
103,867
STAINLESS PLATING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

Stainless Plating Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 24 Don Road, Sheffield, South Yorkshire, S9 2UB.

 

The group consists of Stainless Plating Holdings Limited and all of its subsidiaries.

1.1
Reporting period

The financial statements are the group and company's first financial statements from its date of incorporation to its first accounting period end of 31 December 2023. The accounting period was shortened so that the period end was co-terminous with that of the company's subsidiary undertakings. This period is shorter than one year.

1.2
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.3
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

STAINLESS PLATING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.4
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Stainless Plating Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.5
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.6
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.7
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.8
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is five years.

 

Negative goodwill arising on consolidation in respect of acquisitions is included within fixed assets and is released to the profit and loss account in the periods in which the fair values of the non-monetary assets purchased on the same acquisitions are recovered, whether through depreciation, sale, or otherwise

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

STAINLESS PLATING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.9
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Software
25% per annum straight line
1.10
Tangible fixed assets

Tangible fixed assets 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:

Freehold land and buildings
2.5% per annum straight line
Plant and equipment
10%, 15% and 20% per annum straight line
Fixtures and fittings
10% per annum reducing balance
Computers
25% per annum reducing balance
Motor vehicles
20-30 % per annum straight line

Freehold land is not depreciated.

 

The group's policy is not to charge depreciation when the residual value of an asset is assessed as being at least equal to its carrying amount. The freehold land and buildings that were acquired by the company, had previously been valued on an open market basis by independent valuers, not connected with the company, at an average value of £2,205,000 and a value of £1,200,000 respectively.

 

The directors are of the opinion that as there has been no significant change in the value of the group's freehold land and buildings since the date of acquisition and as the residual values of the buildings are in excess of their cost, then no depreciation be charged for the period.

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 profit and loss account.

1.11
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

STAINLESS PLATING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.12
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.13
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.14
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

STAINLESS PLATING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.15
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

STAINLESS PLATING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.16
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.17
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is 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.

STAINLESS PLATING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
1.18
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.19
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.20
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

STAINLESS PLATING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 23 -
3
Turnover and other revenue
2023
£
Turnover analysed by class of business
Precision engineering
1,587,470
Treatment and coating of metals
1,144,411
2,731,881
2023
£
Turnover analysed by geographical market
United Kingdom
2,414,765
Europe
250,245
Rest of World
66,871
2,731,881
2023
£
Other revenue
Interest income
1,066
4
Operating profit
2023
£
Operating profit for the period is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
112,896
Amortisation of intangible assets
50,308
Release of negative goodwill
(681,126)
Operating lease charges
(14,526)
5
Auditor's remuneration
2023
Fees payable to the company's auditor and associates:
£
For audit services
Audit of the financial statements of the group and company
3,000
Audit of the financial statements of the company's subsidiaries
20,250
23,250
For other services
Audit-related assurance services
12,350
Taxation compliance services
1,750
14,100
STAINLESS PLATING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
5
Auditor's remuneration
(Continued)
- 24 -
6
Employees

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

Group
Company
2023
2023
Number
Number
Administration (including directors)
21
4
Shop floor
46
-
Total
67
4

Their aggregate remuneration comprised:

Group
Company
2023
2023
£
£
Wages and salaries
1,327,380
-
0
Social security costs
24,093
-
Pension costs
45,912
-
0
1,397,385
-
0
7
Interest receivable and similar income
2023
£
Interest income
Interest on bank deposits
1,066
8
Interest payable and similar expenses
2023
£
Interest on bank overdrafts and loans
52,246
Interest on finance leases and hire purchase contracts
7,579
Other interest
(352)
Total finance costs
59,473
STAINLESS PLATING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 25 -
9
Taxation
2023
£
Current tax
UK corporation tax on profits for the current period
40,619
Deferred tax
Origination and reversal of timing differences
(16,187)
Adjustment in respect of prior periods
(58,068)
Total deferred tax
(74,255)
Total tax credit
(33,636)

The actual (credit)/charge for the period can be reconciled to the expected charge/(credit) for the period based on the profit or loss and the standard rate of tax as follows:

2023
£
Profit before taxation
642,331
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00%
160,583
Tax effect of expenses that are not deductible in determining taxable profit
5,939
Unutilised tax losses carried forward
(20,731)
Adjustments in respect of prior years
(58,068)
Effect of change in corporation tax rate
(5,957)
Permanent capital allowances in excess of depreciation
27,546
Amortisation on assets not qualifying for tax allowances
(157,705)
Research and development tax credit
(32,821)
Adjustment for tax arising on pre-acquisition profits
47,578
Taxation credit
(33,636)

Group

The group has carried forward corporation tax losses arising in one of its subsidiary undertakings amounting to £387,769 that can be relieved against the future years' profits of that subsidiary undertaking.

STAINLESS PLATING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 26 -
10
Intangible fixed assets
Group
Goodwill
Negative goodwill
Software
Total
£
£
£
£
Cost
At 4 May 2023
-
0
-
0
-
0
-
0
Additions - business combinations
754,627
(1,271,717)
14,544
(502,546)
At 31 December 2023
754,627
(1,271,717)
14,544
(502,546)
Amortisation and impairment
At 4 May 2023
-
0
-
0
-
0
-
0
Amortisation charged for the period
50,308
(681,126)
-
0
(630,818)
Additions - business combinations
-
0
-
0
14,544
14,544
At 31 December 2023
50,308
(681,126)
14,544
(616,274)
Carrying amount
At 31 December 2023
704,319
(590,591)
-
0
113,728
The company had no intangible fixed assets at 31 December 2023.
11
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 4 May 2023
-
0
-
0
-
0
-
0
-
0
-
0
Additions
1,200,000
500
-
0
1,082
-
0
1,201,582
Transfers-business combinations
2,280,000
5,018,161
185,767
133,699
37,300
7,654,927
At 31 December 2023
3,480,000
5,018,661
185,767
134,781
37,300
8,856,509
Depreciation and impairment
At 4 May 2023
-
0
-
0
-
0
-
0
-
0
-
0
Depreciation charged in the period
5,393
98,595
3,853
3,723
1,332
112,896
Transfers-business combinations
828,238
3,004,264
111,763
111,214
26,380
4,081,859
At 31 December 2023
833,631
3,102,859
115,616
114,937
27,712
4,194,755
Carrying amount
At 31 December 2023
2,646,369
1,915,802
70,151
19,844
9,588
4,661,754
The company had no tangible fixed assets at 31 December 2023.
STAINLESS PLATING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 27 -
12
Fixed asset investments
Group
Company
2023
2023
Notes
£
£
Investments in subsidiaries
13
-
0
4,235,997
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 4 May 2023
-
Additions
4,235,997
At 31 December 2023
4,235,997
Carrying amount
At 31 December 2023
4,235,997
13
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Stainless Plating Limited
England & Wales
Treatment & coating of metals
Ordinary
100.00
-
FMT Properties Limited
England & Wales
Commercial property rental
Ordinary
100.00
-
Edger 201 Limited
England & Wales
Intermediate holding company
Ordinary
100.00
-
Atlantic Precision Engineering Limited
England & Wales
Precision engineering
Ordinary
-
100.00

The registered office address of Stainless Plating Limited and FMT Properties Limited are 24 Don Road, Sheffield, South Yorkshire, S9 2UB.

 

The registered office address of Edger 201 Limited and Atlantic Precision Engineering Limited are Units 1-3 Blackbushe Business Park, Aragon Road, Yateley, Hampshire, GU46 6ET.

 

STAINLESS PLATING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 28 -
14
Stocks
Group
Company
2023
2023
£
£
Raw materials and consumables
227,720
-
Work in progress
147,209
-
Finished goods and goods for resale
403,046
-
0
777,975
-
15
Debtors
Group
Company
2023
2023
Amounts falling due within one year:
£
£
Trade debtors
1,522,649
12,011
Other debtors
29,448
29,028
Prepayments and accrued income
168,150
-
0
1,720,247
41,039
16
Creditors: amounts falling due within one year
Group
Company
2023
2023
Notes
£
£
Bank loans
18
50,664
50,664
Obligations under finance leases
19
138,270
-
0
Trade creditors
510,285
-
0
Amounts owed to group undertakings
1,826,737
1,861,381
Corporation tax payable
100,039
5,330
Other taxation and social security
315,218
-
Other creditors
829,813
55,473
Accruals and deferred income
64,160
4,500
3,835,186
1,977,348

Included in other creditors falling due within one year are invoice discounting creditors amounting to £681,071 that are secured by a fixed and floating charge over the property and assets of the group.

 

Included in other creditors due within one year are obligations under hire purchase and finance lease contracts amounting to £138,270 which are secured on the assets concerned.

STAINLESS PLATING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 29 -
17
Creditors: amounts falling due after more than one year
Group
Company
2023
2023
Notes
£
£
Bank loans and overdrafts
18
2,174,634
2,174,634
Obligations under finance leases
19
208,464
-
0
Other creditors
110,947
110,947
2,494,045
2,285,581

Included in other creditors falling due after more than one year are obligations under hire purchase and finance lease contracts amounting to £208,464 which are secured on the assets to which they relate to.

Amounts included above which fall due after five years are as follows:
Payable by instalments
1,928,524
1,928,524
18
Loans and overdrafts
Group
Company
2023
2023
£
£
Bank loans
2,225,298
2,225,298
Payable within one year
50,664
50,664
Payable after one year
2,174,634
2,174,634

The bank loan is secured by all existing security, if any, held by the bank for the group's liabilities including :

 

The bank loan is repayable in monthly instalments at £17,866.99 over twenty years at a rate equivalent to 2.4% per annum above the bank's base rate.

STAINLESS PLATING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 30 -
19
Finance lease obligations
Group
Company
2023
2023
£
£
Future minimum lease payments due under finance leases:
Within one year
138,270
-
0
In two to five years
208,464
-
0
346,734
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is three years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
2023
Group
£
Accelerated capital allowances
293,027
Revaluations
79,246
372,273
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the period:
£
£
Liability at 4 May 2023
-
-
On acquisition of subsidiary undertakings
446,528
-
Credit to profit or loss
(90,645)
-
Effect of change in tax rate - profit or loss
16,390
-
Liability at 31 December 2023
372,273
-
STAINLESS PLATING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 31 -
21
Retirement benefit schemes
2023
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
45,912

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

22
Share capital
Group and company
2023
2023
Ordinary share capital
Number
£
Issued and fully paid
Ordinary shares of 1p each
10,000
100

The company was incorporated on 4 May 2023. On that date, 10,000 Ordinary shares of £0.01 each were issued at par value to establish the share capital of the company.

23
Reserves
Own shares

Called up share capital represents the nominal value of shares that have been issued.

Profit and loss reserves

Profit and loss reserves includes all current period retained profit and losses.

STAINLESS PLATING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 32 -
24
Acquisition of a business

On 18 August 2023 the group acquired one hundred percent of the issued capital of Stainless Plating Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
674,979
-
674,979
Stock
82,677
-
82,677
Trade and other receivables
1,051,739
-
1,051,739
Cash and cash equivalents
176,648
-
176,648
Obligations under finance leases
(75,082)
-
(75,082)
Trade and other payables
(337,702)
-
(337,702)
Tax liabilities
(130,273)
-
(130,273)
Deferred tax
(62,516)
-
(62,516)
Total identifiable net assets
1,380,470
-
1,380,470
Goodwill
(1,271,717)
Total consideration
108,753
The consideration was satisfied by:
£
Cash
108,753
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
1,144,411
Profit after tax
56,944
STAINLESS PLATING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
24
Acquisition of a business
(Continued)
- 33 -

On 24 August 2023 the group acquired one hundred percent of the issued capital of Edger 201 Limited and its wholly owned subsidiary undertaking Atlantic Precision Engineering Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
2,898,088
-
2,898,088
Stock
764,023
-
764,023
Trade and other receivables
1,497,702
-
1,497,702
Cash and cash equivalents
47,727
-
47,727
Borrowings
(451,250)
-
(451,250)
Obligations under finance leases
(314,845)
-
(314,845)
Trade and other payables
(605,213)
-
(605,213)
Tax liabilities
(79,703)
-
(79,703)
Deferred tax
(384,012)
-
(384,012)
Total identifiable net assets
3,372,517
-
3,372,517
Goodwill
754,627
Total consideration
4,127,144
The consideration was satisfied by:
£
Cash
3,960,724
Deferred consideration
166,420
4,127,144
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
1,587,470
Profit after tax
51,463
STAINLESS PLATING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 34 -
25
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2023
£
£
Within one year
287,484
-
Between two and five years
861,112
-
1,148,596
-
26
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
£
Aggregate compensation
123,433
Transactions with related parties

 

Group

 

The group has taken advantage of the exemption under the Financial Reporting Standard 102 Section 33.1A from disclosing any transactions with group entities of which the group owns 100% of the share capital.

 

Included in creditors: amounts falling due within one year are amounts due to the group's parent undertaking, Bushman Properties Limited amounting to £1,826,737. These loans are repayable on demand and no interest has been charged on these loans during the period.

 

During the period, Bushman Properties Limited sold the property that it held to one of the group's subsidiary undertakings, FMT Properties Limited for a consideration of £1,200,000. The property had been valued at the above amount, on an open market basis by independent valuers, not connected with the company.

 

Company

 

The company has taken advantage of the exemption under the Financial Reporting Standard 102 Section 33.1A from disclosing any transactions with group entities of which the group owns 100% of the share capital.

 

Included in creditors: amounts falling due within one year are amounts due to the company's parent undertaking, Bushman Properties Limited and its subsidiary undertakings totalling £1,861,381. These loans are repayable on demand and no interest has been charged on these loans during the period

 

STAINLESS PLATING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 35 -
27
Controlling party

Stainless Plating Holdings Limited is a wholly owned subsidiary of Bushman Properties Limited. Bushman Properties Limited is controlled equally by the Wren Settlement Trust and Mr M N K Aldridge.

28
Cash generated from/(absorbed by) group operations
2023
£
Profit for the period after tax
675,967
Adjustments for:
Taxation credited
(33,636)
Finance costs
59,473
Investment income
(1,066)
Amortisation and impairment of intangible assets
(630,818)
Depreciation and impairment of tangible fixed assets
112,896
Movements in working capital:
Decrease in stocks
68,725
Decrease in debtors
829,194
Increase in creditors
1,716,197
Cash generated from/(absorbed by) operations
2,796,932
29
Analysis of changes in net debt - group
4 May 2023
Cash flows
Acquisitions and disposals
31 December 2023
£
£
£
£
Cash at bank and in hand
-
(120,508)
224,375
103,867
Borrowings excluding overdrafts
-
(2,455,119)
(451,250)
(2,906,369)
Obligations under finance leases
-
43,193
(389,927)
(346,734)
-
(2,532,434)
(616,802)
(3,149,236)
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