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COMPANY REGISTRATION NUMBER: 09996838
Kiveton Park Steel Aerospace Materials Limited
Financial Statements
Previously known as kiveton park steel limited
30 June 2024
Kiveton Park Steel Aerospace Materials Limited
Financial Statements
Year ended 30 June 2024
Contents
Page
Strategic report
1
Director's report
3
Independent auditor's report to the members
5
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13
Kiveton Park Steel Aerospace Materials Limited
Strategic Report
Year ended 30 June 2024
The director presents the strategic report for the year ended 30 June 2024.
Review of the business
Turnover for the year has increased from £12,046,170 in the prior year to £17,083,438 in the current year, an increase of 41.8%. This is due to the focus on expanding the business via increased export sales which do not require further processing. Despite the need to accept some lower margin sales in order to increase turnover, gross profit percentage has been maintained at a fairly consistent level decreasing from 25.2% in the prior year to 23.3% in the current year. Though both distribution costs and administrative expenses have also increased, a necessity to support the increased turnover, operating profit has still increased in both percentage and in total, from £1,131,816 (9.4%) in the prior year to £1,646,314 (9.6%) in the current year. This reflects the effectiveness of the company's decision to focus on increasing turnover ahead of preserving the gross profit margin. As a result of the positive changes noted above, profit before taxation has increased considerably, rising from £1,091,916 in the prior year to £1,612,071 in the current. Subsequently, the corporation tax payable has also increased from £279,932 in the prior year to £396,765 in the current.
Principal risks and uncertainties
The principal risks to the business are: Laws and regulations There are no sector specific laws and regulations which the company has to adhere to, so standard company, tax, health and safety, and data protection laws apply. Price risk As with any company in the current economic climate, the main price risk is with regards to the potential for an increase in the cost of stock purchases as a result of inflation. Additionally, as a company trading globally, there are exchange rate risks, though this is somewhat mitigated by the company having bank accounts in each of the main currencies in which it trades. Looking towards future periods, the upcoming changes to the minimum wages and employer's national insurance will have an effect on all companies in the sector. The directors believe that the company is well placed to ensure continued profitability without having to compromise the customer experience. Credit risk For UK customers the company performs a credit check before taking on work for any customer, and offers individual terms depending on the results of the check. Credit control is generally effective, with few bad debts being incurred in recent years, and the company has a factoring facility to mitigate cashflow issues arising when customers are slow to pay. The company also ensures insures debt. For overseas customers the company mitigates its risk by dealing only with high quality entities. Liquidity and cash flow risk The company has significant net current assets, and though the factoring facility is often utilised, there is ample headroom in the draw down amount to enable the company to meet it's liabilities as they fall due.
Development and performance
Shortly following the year end, a demerger was performed to split the domestic and overseas sales divisions into two companies. The directors believe that this will allow for a more detailed and effective analysis for each side of the business, enabling the continued good performance of the company.
Key performance indicators
As noted in the review of the business, the company has had an excellent year of trading, and this is reflected by the movements in key performance indicators. Turnover has increased by 41.8%, from £12,046,170 to £17,083,438. This is due to the renewed focus in increasing sales volume via increasing export sales, particularly regarding goods which do not require further processing. The net profit achieved by the company has increased by 47.6%, from £1,091,916 to £1,612,071. This is due to managing to maintain efficiency, limiting the increases in distribution and administrative costs whilst increasing turnover
This report was approved by the board of directors on 28 March 2025 and signed on behalf of the board by:
Mr H G Dickinson
Director
Registered office:
Kiveton Park Steel Ltd
Dog Kennel Hill
Kiveton Park
South Yorkshire
United Kingdom
S26 6NQ
Kiveton Park Steel Aerospace Materials Limited
Director's Report
Year ended 30 June 2024
The director presents his report and the financial statements of the company for the year ended 30 June 2024 .
Principal activities
The principal activity of the company is the operation of a steel finishing plant.
Director
The director who served the company during the year was as follows:
Mr H G Dickinson
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Disclosure of information in the strategic report
In accordance with s.414C(11) of the Companies Act 2006, information regarding the future development and performance of the company has been presented in the strategic report rather than the directors report.
Director's responsibilities statement
The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations. Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the director is required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 28 March 2025 and signed on behalf of the board by:
Mr H G Dickinson
Director
Registered office:
Kiveton Park Steel Ltd
Dog Kennel Hill
Kiveton Park
South Yorkshire
United Kingdom
S26 6NQ
Kiveton Park Steel Aerospace Materials Limited
Independent Auditor's Report to the Members of Kiveton Park Steel Aerospace Materials Limited
Year ended 30 June 2024
Qualified opinion
We have audited the financial statements of Kiveton Park Steel Aerospace Materials Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 effects of the matter described in the basis for qualified opinion section of our report, the financial statements: - give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for qualified opinion
We were not appointed as auditor of the company until after 30 June 2023 and thus did not observe the counting of physical stock at the end of that period or satisfy ourselves concerning those inventory quantities by alternate means. Since opening inventories affect the determination of the results of operations, we were unable to determine whether adjustments to the results of operations and opening retained earnings may be necessary for the current period. Our opinion on the current period's financial statements is therefore also modified, in regard of the potential effect on the current year's profit and opening retained earnings only.
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.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
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. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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. As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning stock quantities of £1,458,228 held at 30 June 2023. We have concluded that where the other information refers to the brought forward stock balance or related balances such as cost of sales, it may be materially misstated for the same reason.
Opinions on other matters prescribed by the Companies Act 2006
Except for the possible effects of the matter described in the basis for qualified opinion section of out report, in our opinion, based on the work undertaken in the course of our audit:
- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements
Matters on which we are required to report by exception
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 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. Arising solely from the limitation on the scope of our work relating to stock, referred to above: - we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and - we were unable to determine whether adequate accounting records have been kept. 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: - returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made
Responsibilities of the director
As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: The procedures undertaken were: - Enquiry of management and those charged with governance around actual and potential litigation and claims. - Review of tax compliance to identify any instances of non-compliance with laws and regulations. - Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. - Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, reviewing accounting estimates for bias and reviewing for significant transactions outside the normal course of business. Our initial risk assessment identified management override and misstatement of revenue as potential risk areas. Audit testing on journal entries, sales cut-off, and substantive sales testing have been carried out to address the potential risks in these areas. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. 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. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director. - Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Other matters which we are required to address
For the year ended 30 June 2023 the company had taken advantage of the audit exemption available to small companies. Comparative figures in respect of the year ended 30 june 2023 included in these financial statements are therefore unaudited.
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.
David Ian Walters
(Senior Statutory Auditor)
For and on behalf of
Walters Hawson Limited
Chartered accountants & statutory auditor
Norham House
Mountenoy Road
Rotherham
S60 2AJ
28 March 2025
Kiveton Park Steel Aerospace Materials Limited
Statement of Comprehensive Income
Year ended 30 June 2024
2024
2023
(restated)
Note
£
£
Turnover
4
17,083,438
12,046,170
Cost of sales
13,110,321
9,014,853
ÄÄÄÄÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄÄ
Gross profit
3,973,117
3,031,317
Distribution costs
351,723
180,827
Administrative expenses
1,975,580
1,719,408
Other operating income
5
500
734
ÄÄÄÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄ
Operating profit
6
1,646,314
1,131,816
Other interest receivable and similar income
9
101
2
Interest payable and similar expenses
10
34,344
39,902
ÄÄÄÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄ
Profit before taxation
1,612,071
1,091,916
Tax on profit
11
396,765
279,932
ÄÄÄÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄ
Profit for the financial year
1,215,306
811,984
ÍÍÍÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍÍÍÍ
Tax relating to components of other comprehensive income
( 6,251)
( 78,396)
ÄÄÄÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄ
Total comprehensive income for the year
1,209,055
733,588
ÍÍÍÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍ
All the activities of the company are from continuing operations.
Kiveton Park Steel Aerospace Materials Limited
Statement of Financial Position
30 June 2024
2024
2023
(restated)
Note
£
£
Fixed assets
Tangible assets
14
1,079,705
1,134,046
Current assets
Stocks
15
1,392,067
1,458,228
Debtors
16
5,511,034
3,437,784
Cash at bank and in hand
208,309
875,957
ÄÄÄÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄ
7,111,410
5,771,969
Creditors: amounts falling due within one year
18
4,219,333
3,745,776
ÄÄÄÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄ
Net current assets
2,892,077
2,026,193
ÄÄÄÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄ
Total assets less current liabilities
3,971,782
3,160,239
Creditors: amounts falling due after more than one year
19
71,732
264,820
Provisions
21
228,189
232,613
ÄÄÄÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄ
Net assets
3,671,861
2,662,806
ÍÍÍÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍÍÍÍ
Capital and reserves
Called up share capital
27
100
100
Revaluation reserve
28
253,943
305,001
Profit and loss account
28
3,417,818
2,357,705
ÄÄÄÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄ
Shareholders funds
3,671,861
2,662,806
ÍÍÍÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍÍÍÍ
These financial statements were approved by the board of directors and authorised for issue on 28 March 2025 , and are signed on behalf of the board by:
Mr H G Dickinson
Director
Company registration number: 09996838
Kiveton Park Steel Aerospace Materials Limited
Statement of Changes in Equity
Year ended 30 June 2024
Called up share capital
Revaluation reserve
Profit and loss account
Total
Note
£
£
£
£
At 1 July 2022
100
426,090
1,503,028
1,929,218
Profit for the year
811,984
811,984
Other comprehensive income for the year:
Reclassification from revaluation reserve to profit and loss account
( 42,693)
42,693
Tax relating to components of other comprehensive income
11
( 78,396)
( 78,396)
ÄÄÄÄ
ÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄ
Total comprehensive income for the year
( 121,089)
854,677
733,588
At 30 June 2023 (as previously reported)
100
383,397
2,354,489
2,737,986
Prior period adjustments
26
(78,396)
3,216
(75,180)
ÄÄÄÄ
ÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄ
At 30 June 2023 (restated)
100
305,001
2,357,705
2,662,806
ÍÍÍÍ
ÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍÍÍÍ
Profit for the year
1,215,306
1,215,306
Other comprehensive income for the year:
Reclassification from revaluation reserve to profit and loss account
( 44,807)
44,807
Tax relating to components of other comprehensive income
11
( 6,251)
( 6,251)
ÄÄÄÄ
ÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄ
Total comprehensive income for the year
( 51,058)
1,260,113
1,209,055
Dividends paid and payable
12
( 200,000)
( 200,000)
ÄÄÄÄ
ÄÄÄÄ
ÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄ
Total investments by and distributions to owners
( 200,000)
( 200,000)
ÄÄÄÄ
ÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄ
At 30 June 2024
100
253,943
3,417,818
3,671,861
ÍÍÍÍ
ÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍÍÍÍ
Kiveton Park Steel Aerospace Materials Limited
Statement of Cash Flows
Year ended 30 June 2024
2024
2023
(restated)
Note
£
£
Cash flows from operating activities
Profit for the financial year
1,215,306
811,984
Adjustments for:
Depreciation of tangible assets
123,782
125,529
Government grant income
( 500)
( 500)
Other interest receivable and similar income
( 101)
( 2)
Interest payable and similar expenses
34,344
39,902
Tax on profit
396,765
279,932
Accrued (income)/expenses
( 324,046)
694,091
Changes in:
Stocks
66,161
334,288
Trade and other debtors
( 2,073,250)
( 1,112,149)
Trade and other creditors
52,690
834,956
ÄÄÄÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄ
Cash generated from operations
( 508,849)
2,008,031
Interest paid
( 34,344)
( 39,902)
Interest received
101
2
Tax paid
( 217,866)
( 146,375)
ÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄ
Net cash (used in)/from operating activities
( 760,958)
1,821,756
ÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍÍÍÍ
Cash flows from investing activities
Purchase of tangible assets
( 69,441)
( 72,078)
ÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄ
Net cash used in investing activities
( 69,441)
( 72,078)
ÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍÍÍÍ
Cash flows from financing activities
Proceeds from borrowings
( 125,004)
197,915
Government grant income
500
500
Payments of finance lease liabilities
( 103,521)
( 94,591)
Dividends paid
( 200,000)
ÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄ
Net cash (used in)/from financing activities
( 428,025)
103,824
ÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍÍÍÍ
Net (decrease)/increase in cash and cash equivalents
( 1,258,424)
1,853,502
Cash and cash equivalents at beginning of year
875,917
(977,585)
ÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄ
Cash and cash equivalents at end of year
17
( 382,507)
875,917
ÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍ
Kiveton Park Steel Aerospace Materials Limited
Notes to the Financial Statements
Year ended 30 June 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Kiveton Park Steel Ltd, Dog Kennel Hill, Kiveton Park, South Yorkshire, S26 6NQ, United Kingdom.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
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 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
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery
-
10% reducing balance
Fixtures and fittings
-
25% reducing balance
Motor vehicles
-
8% reducing balance
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2024
2023
(restated)
£
£
Sale of goods
17,083,438
12,046,170
ÍÍÍÍÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍÍÍÍÍ
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2024
2023
(restated)
£
£
United Kingdom
4,394,899
6,464,451
Overseas
12,688,539
5,581,719
ÄÄÄÄÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄÄ
17,083,438
12,046,170
ÍÍÍÍÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍÍÍÍÍ
5. Other operating income
2024
2023
(restated)
£
£
Government grant income
500
500
Other operating income
234
ÄÄÄÄ
ÄÄÄÄ
500
734
ÍÍÍÍ
ÍÍÍÍ
6. Operating profit
Operating profit or loss is stated after charging/crediting:
2024
2023
(restated)
£
£
Depreciation of tangible assets
123,782
125,529
Impairment of trade debtors
(55,037)
177,103
Foreign exchange differences
4,013
51,790
ÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍ
7. Auditor's remuneration
2024
2023
(restated)
£
£
Fees payable for the audit of the financial statements
8,500
ÍÍÍÍÍÍÍ
ÍÍÍÍ
8. Staff costs
The average number of persons employed by the company during the year, including the director, amounted to:
2024
2023
No.
No.
Production staff
45
44
Administrative staff
11
11
ÄÄÄÄ
ÄÄÄÄ
56
55
ÍÍÍÍ
ÍÍÍÍ
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
(restated)
£
£
Wages and salaries
1,768,596
1,579,058
Social security costs
163,092
152,183
Other pension costs
43,208
42,810
ÄÄÄÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄ
1,974,896
1,774,051
ÍÍÍÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍÍÍÍ
9. Other interest receivable and similar income
2024
2023
(restated)
£
£
Interest on bank deposits
101
2
ÍÍÍÍ
ÍÍÍÍ
10. Interest payable and similar expenses
2024
2023
(restated)
£
£
Interest on banks loans and overdrafts
10,004
8,267
Interest on obligations under finance leases and hire purchase contracts
24,340
31,635
ÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄ
34,344
39,902
ÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍ
11. Tax on profit
Major components of tax expense
2024
2023
(restated)
£
£
Current tax:
UK current tax expense
407,441
223,208
Deferred tax:
Origination and reversal of timing differences
( 6,253)
( 78,396)
Impact of change in tax rate
32,823
Impact of changes in accounting policies and material errors
95,849
Accelerated capital allowances
( 10,675)
6,448
Movement re revaluation reserve
6,252
ÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄ
Total deferred tax
( 10,676)
56,724
ÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄ
Tax on profit
396,765
279,932
ÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍ
Tax recognised as other comprehensive income or equity
The aggregate current and deferred tax relating to items recognised as other comprehensive income or equity for the year was £ 6,251 (2023: £ 78,396 ).
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 20.50 %).
2024
2023
(restated)
£
£
Profit on ordinary activities before taxation
1,612,071
1,091,916
ÍÍÍÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍÍÍÍ
Profit on ordinary activities by rate of tax
403,018
223,798
Effect of capital allowances and depreciation
4,423
( 590)
Adjustments to deferred tax
( 10,676)
56,724
ÄÄÄÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄ
Tax on profit
396,765
279,932
ÍÍÍÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍÍÍÍ
The main rate of corporation tax in the UK changed from 19% to 25% on 1 April 2023. As such, the effective tax rate applied in the June 2023 period is 20.5%
12. Dividends
2024
2023
(restated)
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
200,000
ÍÍÍÍÍÍÍÍÍ
ÍÍÍÍ
13. Change of company name
The company changed its name on 2 July 2024, and was previously known as Kiveton Park Steel Limited
14. Tangible assets
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 July 2023 (as restated)
1,874,329
69,020
5,000
1,948,349
Additions
65,000
4,441
69,441
ÄÄÄÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄ
At 30 June 2024
1,939,329
73,461
5,000
2,017,790
ÍÍÍÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍÍÍÍ
Depreciation
At 1 July 2023
764,429
47,642
2,232
814,303
Charge for the year
118,651
4,910
221
123,782
ÄÄÄÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄ
At 30 June 2024
883,080
52,552
2,453
938,085
ÍÍÍÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍÍÍÍ
Carrying amount
At 30 June 2024
1,056,249
20,909
2,547
1,079,705
ÍÍÍÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍÍÍÍ
At 30 June 2023
1,109,900
21,378
2,768
1,134,046
ÍÍÍÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍÍÍÍ
All fixed assets of the company are pledged as security via debenture to the factoring provider.
Tangible assets held at valuation
In the period ended 30 June 2017, the company acquired assets with value of £1,687,500 for £1,000,000 as part of a purchase from a liquidation. As at the current balance sheet date, the carrying value of these assets was £845,928 (2023: £939,926)
In respect of tangible assets held at valuation, the aggregate cost, depreciation and comparable carrying amount that would have been recognised if the assets had been carried under the historical cost model are as follows:
Plant and machinery
£
At 30 June 2024
Aggregate cost
1,000,000
Aggregate depreciation
(492,662)
ÄÄÄÄÄÄÄÄÄÄÄÄ
Carrying value
507,338
ÍÍÍÍÍÍÍÍÍÍÍÍ
At 30 June 2023
Aggregate cost
1,000,000
Aggregate depreciation
(436,291)
ÄÄÄÄÄÄÄÄÄÄÄÄ
Carrying value
563,709
ÍÍÍÍÍÍÍÍÍÍÍÍ
15. Stocks
2024
2023
(restated)
£
£
Raw materials and consumables
492,361
575,270
Work in progress
571,667
634,334
Finished goods and goods for resale
328,039
248,624
ÄÄÄÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄ
1,392,067
1,458,228
ÍÍÍÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍÍÍÍ
All stock of the company are pledged as security via debenture to the factoring provider.
16. Debtors
2024
2023
(restated)
£
£
Trade debtors
4,664,423
2,976,513
Prepayments and accrued income
588,935
461,271
Other debtors
257,676
ÄÄÄÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄ
5,511,034
3,437,784
ÍÍÍÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍÍÍÍ
All debtors of the company are pledged as security via debenture to the factoring provider.
17. Cash and cash equivalents
Cash and cash equivalents comprise the following:
2024
2023
(restated)
£
£
Cash at bank and in hand
208,309
875,957
Bank overdrafts
( 590,816)
( 40)
ÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄ
( 382,507)
875,917
ÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍ
18. Creditors: amounts falling due within one year
2024
2023
(restated)
£
£
Bank loans and overdrafts
663,727
125,040
Trade creditors
1,977,977
2,037,527
Accruals and deferred income
499,333
823,379
Corporation tax
412,783
223,208
Social security and other taxes
38,827
145,217
Obligations under finance leases and hire purchase contracts
119,474
102,822
Director loan accounts
100,024
100,024
Amounts owed to connected companies
150,000
150,000
Wages and salaries control
14,661
22,636
Other creditors
242,527
15,923
ÄÄÄÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄÄÄÄ
4,219,333
3,745,776
ÍÍÍÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍÍÍÍ
The bank loans and overdrafts are secured via a debenture over all of the company's assets.
19. Creditors: amounts falling due after more than one year
2024
2023
(restated)
£
£
Bank loans and overdrafts
72,915
Obligations under finance leases and hire purchase contracts
71,732
191,905
ÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄ
71,732
264,820
ÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍ
All creditors falling due after more than one year are due within five years.
20. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2024
2023
(restated)
£
£
Not later than 1 year
119,474
102,822
Later than 1 year and not later than 5 years
71,732
191,905
ÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄ
191,206
294,727
ÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍ
Finance lease payments represent rentals payable by the company 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 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. All finance lease obligations are secured via the associated assets, held within plant and machinery.
21. Provisions
Deferred tax (note 22)
£
At 1 July 2023 (as restated)
232,613
Charge against provision
( 4,424)
ÄÄÄÄÄÄÄÄÄ
At 30 June 2024
228,189
ÍÍÍÍÍÍÍÍÍ
22. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
(restated)
£
£
Included in provisions (note 21)
228,189
232,613
ÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍ
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
(restated)
£
£
Accelerated capital allowances
143,542
154,217
Revaluation of tangible assets
84,647
78,396
ÄÄÄÄÄÄÄÄÄ
ÄÄÄÄÄÄÄÄÄ
228,189
232,613
ÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍ
The deferred tax liability set out above will be reversed when assets are depreciated or sold, or when the revalued assets are sold, or diminish in value sufficiently that no profit on disposal would be expected
23. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 43,208 (2023: £ 42,810 ).
24. Government grants
The amounts recognised in the financial statements for government grants are as follows:
2024
2023
(restated)
£
£
Recognised in other operating income:
Government grants released to profit or loss
500
500
ÍÍÍÍ
ÍÍÍÍ
Government grants relate to sums received in regard to apprenticeships.
25. Financial instruments
The carrying amount for each category of financial instrument is as follows:
2024
2023
(restated)
£
£
Financial assets measured at fair value through profit or loss
Financial assets measured at fair value through profit or loss
4,872,732
3,745,387
ÍÍÍÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍÍÍÍ
Financial liabilities measured at fair value through profit or loss
Financial liabilities measured at fair value through profit or loss
3,076,006
2,310,227
ÍÍÍÍÍÍÍÍÍÍÍÍ
ÍÍÍÍÍÍÍÍÍÍÍÍ
The totals for financial instruments held at fair value above relate to assets and liabilities valued at cost, which due to their short-life nature is deemed to be equal to fair value. As such, there have been no charges to profit or loss in respect of adjustments to fair value recognised in the period. Other financial liabilities, including bank loans are included in the financial statements at amortised cost and are not included in the amounts shown above.
26. Prior period errors
During the course of the audit of the 30 June 2024 accounts, the following adjustments relating to prior years were determined:
Amount
£
Prepayment for revised electricity invoices 77,885
Accrual for sales credits relating to year ended 2023 raised post year end (143,049)
Revision to bad debt provision 91,160
Revision to deferred tax provision (17,453)
Adjutment to corporation tax arising from prior period adjustments (5,327)
Total effect on profit 3,216
Additionally, there were non-profit affecting adjustments in relation to the offset of accruals and prepayments (totalling £303,463), and adjustment to deferred tax in relation to the revaluation reserve (totalling £78,396)
27. Called up share capital
Issued, called up and fully paid
2024
2023
(restated)
No.
£
No.
£
Ordinary shares of £ 1 each
100
100
100
100
ÍÍÍÍ
ÍÍÍÍ
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Ordinary shares are voting, participating shares.
28. Reserves
A description of each reserve used in the accounts can be found below: Revaluation reserve - This reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income. Profit and loss account - This reserve records retained earnings and accumulated losses.
29. Analysis of changes in net debt
At 1 Jul 2023
Cash flows
At 30 Jun 2024
£
£
£
Cash at bank and in hand
875,957
(667,648)
208,309
Bank overdrafts
(40)
(590,776)
(590,816)
Debt due within one year
(327,846)
35,437
(292,409)
Debt due after one year
(264,820)
193,088
(71,732)
ÄÄÄÄÄÄÄÄÄ
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283,251
( 1,029,899)
( 746,648)
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30. Limitation of auditors liability
The auditor's liability is limited to £100,000 by terms of their engagement letter.
Kiveton Park Steel Aerospace Materials Limited
Notes to the Financial Statements (continued)
Year ended 30 June 2024
31. Related party transactions
During the year the company entered into the following transactions with related parties:
Transaction value
Balance owed by/(owed to)
2024
2023
2024
2023
£
£
£
£
Renforce Manufacturing Limited
84,604
10,789
41,461
ND2016 Property Limited
( 48,000)
( 48,000)
( 16,000)
Norse Precision Castings Limited
( 6,918)
( 5,952)
( 5,354)
( 5,952)
Norton Products Private Limited
( 127,326)
( 85,738)
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All above related parties have share a common director with the company. Transactions with Renforce Manufacturing Limited and Norse Precision Castings Limited, and Norton Products Pvt Limited were under the company's standard commercial terms, at market rate. The above transactions with ND2016 Property Limited relate to charges to the company for the rental of its business premises. This is not considered to be at market rate. In addition to the trading balance above, ND2016 Property Limited extended loans to the company totalling £150,000 (2023: £150,000). The loan was interest free, and repayable on demand. The company also provided for bad debts relating to Norton Aluminium Limited in the prior year totalling £115,897. In the current year it was found that this provision was excessive, and so a credit to the profit and loss of £55,000 was recognised. Norton Aluminium Limited shares a common director with the company.