Company registration number 03560591 (England and Wales)
STRUCTURAL METAL DECKS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
STRUCTURAL METAL DECKS LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 4
Directors' report
5
Directors' responsibilities statement
6
Independent auditor's report
7 - 10
Statement of comprehensive income
11
Statement of financial position
12
Statement of changes in equity
13
Notes to the financial statements
14 - 30
STRUCTURAL METAL DECKS LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr B Pratten
Mr D S Williams
Mr R T Firth
Mr J F Turner
Secretary
Mr B Pratten
Company number
03560591
Registered office
The Outlook
Ling Road
Tower Park
Poole
Dorset
BH12 4PY
Auditor
Azets Audit Services
37 Commercial Road
Poole
Dorset
BH14 0HU
STRUCTURAL METAL DECKS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 2 -
The directors present the strategic report for the year ended 31 July 2024.
Introduction
The principal activity of the company continues to be the design and installation of composite flooring solutions for the construction industry. Our mission is to maintain ourselves as one of the UK’s leading providers of structural flooring and roofing solutions while strategically expanding our brand and product offerings both in the UK and abroad. Our commitment to safety, innovation, and environmental sustainability remains central to our strategic objectives. Executive Summary The business has performed well in what continues to be an extremely volatile market and industry during this period. Many businesses have not been able to continue trading in all sectors of the industry due to tight margins and overcommitments on historical projects. Our focus has been on longer-term stability and the continued service and support of our clients. Over this period, we have delivered many large and small high-profile projects throughout the UK, providing high-performance, quality solutions. Financial Performance In a year characterised by operational, supplier and customer challenges, Structural Metal Decks Limited continues to demonstrate resilience. Despite experiencing several specific operational challenges, supplier issues and customer closures, our financial performance for the year has been very similar to the prior year. This year’s financial performance has been hindered by the required increase in bad debt provision relating to the above noted issues along with several specific concrete operational issues that have now been addressed with improved processes and procedures being put into place. We achieved an overall sales turnover of £20,708,234 (2023: £19,538,224). The profit on ordinary activities after taxation stood at £26,722 (2023: £120,607). While these results fall short of our initial expectations, they underscore our ability to adapt and respond to market conditions. There have been no major investments made during the last fiscal year. We have continued to focus on ongoing maintenance and development of current assets. Sales , market competition and margin Management. As a business we are acutely aware that the construction industry is facing increasing competition, and this necessitates a strategic focus on maintaining high-quality service delivery and customer satisfaction. The challenges posed by subcontractor performance have been significant. We faced delays in project timelines and difficulties in maintaining quality assurance. To mitigate these risks, we have enhanced our subcontractor vetting processes and established stricter performance monitoring systems. Regular audits and performance evaluations ensure that all subcontractors adhere to our stringent quality and safety standards. Additionally, the economic environment has led to financial strain for some of our customers, resulting in delayed payments and, in certain cases, contract cancellations. To counteract these risks, we are actively diversifying our customer base, targeting sectors less vulnerable to economic fluctuations, such as public sector projects and renewable energy developments. The volatility of raw material costs has also continued to present challenges, particularly in our concrete operations. In response, our management team has developed comprehensive cost-optimisation strategies. This includes negotiating long-term contracts with suppliers to secure stable pricing and exploring alternative materials and suppliers to enhance our competitiveness without sacrificing quality. Ongoing challenges Key challenges this year included the inconsistent performance of subcontractors, rising insolvencies among customer, and adverse weather conditions that impacted our concrete operations. These factors contributed to contract delays and operational inefficiencies. In response, we implemented strategic initiatives to streamline our operations and enhance cost management, ultimately preserving our long-term financial stability and ensuring continued support for our customers. As we look to the future, there are indications that raw material prices are stabilising. This potential stabilisation could position us favourably within the market, enabling us to regain lost margins and secure targeted volumes of our flooring products, which are critical for operational predictability. |
STRUCTURAL METAL DECKS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 3 -
Addressing the ongoing scarcity of experienced personnel in the construction sector is a priority for us. We are implementing several initiatives aimed at attracting and retaining skilled professionals. These initiatives include offering competitive salaries, professional development programs, mentorship opportunities, overseas recruitment programme and creating a workplace culture that fosters innovation and teamwork.
Along with the financial health of the business, the other key priority is the Health and Safety of both its employees and the public, closely monitored by the Senior Management Team. The AFR (Accident Frequency Rate) of the company was reported as zero in 2024 (2023: 0) and equates to no reportable accidents in 120,844 man-hours during this reporting period (2023: 0 reportable accidents in 154,708 man-hours). The reduction in man hours relates to a level of office-based staff now being considered at group level.
Principal Risks and Uncertainties
The company's principal financial instruments comprise bank balances, trade debtors, trade creditors, and finance lease agreements. Effective management of liquidity risk is critical for our operations, and we maintain a careful balance between funding continuity and maximizing returns on cash reserves.
We closely monitor trade debtors as part of our credit risk management strategy. Our strict credit policies, combined with regular assessments of customer creditworthiness, help minimise exposure to bad debts. We maintain reserves for doubtful debts to mitigate financial impact.
In addition, we are proactively managing a subsidence issue at our head office, which has shown slight settlement during this period. Although this situation poses no immediate safety concerns, we are committed to ongoing monitoring and assessment to ensure the structural integrity of our operations.
Sustainability and Corporate Social Responsibility
Our unwavering commitment to sustainability and corporate social responsibility drives our strategic initiatives. We have made significant progress toward our target of achieving carbon-zero operations by 2030. Key initiatives implemented during this period include:
Conducting comprehensive energy audits in our offices to identify areas for improvement.
Transitioning to energy-efficient systems, significantly reducing our operational energy consumption.
Beginning the conversion of our vehicle fleet to electric, which includes installing charging points at our head office and logistical centre.
Furthermore, we are excited to introduce our new range of green products, which utilize low-carbon material sources and innovative manufacturing processes. These initiatives not only reduce our carbon footprint but also align with the increasing demand for sustainable building solutions in the market.
Future Outlook
In the coming year, we aim to solidify our position as one of the UK’s leading suppliers of metal flooring profiles while expanding our product offerings to meet diverse client needs. We are committed to further developing our concrete operations, a critical area for diversifying our portfolio and ensuring sustained growth. Additionally, we will increase our focus on promoting our green solutions to clients, positioning ourselves as a leader in sustainability within the construction industry.
STRUCTURAL METAL DECKS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 4 -
Conclusion
In summary, this year has presented substantial challenges, particularly concerning subcontractor performance and external market pressures. Nevertheless, the business has maintained a strong financial position and continues to perform robustly within the market. We are optimistic that stabilisation in material prices and improvements in subcontractor performance will enable us to achieve our financial targets in the upcoming year.
Mr B Pratten
Director
18 October 2024
STRUCTURAL METAL DECKS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 5 -
The directors present their annual report and financial statements for the year ended 31 July 2024.
Principal activities
The principal activity of the company continued to be that of the construction of composite flooring.
Results and dividends
The results for the year are set out on page 11.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr B Pratten
Mr D S Williams
Mr R T Firth
Mr J F Turner
Auditor
In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.
Directors’ confirmations
In the case of each director in office at the date the directors’ report is approved:
so far as the director is aware, there is no relevant audit information of which the company’s auditors are unaware; and
they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.
On behalf of the board
Mr B Pratten
Director
18 October 2024
STRUCTURAL METAL DECKS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JULY 2024
- 6 -
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulation.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law).
Under company law, directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing the financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
state whether applicable United Kingdom Accounting Standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors are also 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.
STRUCTURAL METAL DECKS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STRUCTURAL METAL DECKS LIMITED
- 7 -
Opinion
We have audited the financial statements of Structural Metal Decks Limited (the 'company') for the year ended 31 July 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 July 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
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.
STRUCTURAL METAL DECKS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STRUCTURAL METAL DECKS LIMITED
- 8 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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.
STRUCTURAL METAL DECKS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STRUCTURAL METAL DECKS LIMITED
- 9 -
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 and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we 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. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
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 bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
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.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the construction industry and supply sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgments and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
STRUCTURAL METAL DECKS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STRUCTURAL METAL DECKS LIMITED
- 10 -
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.
Mr Paul Francis (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
Statutory Auditor
37 Commercial Road
Poole
Dorset
BH14 0HU
18 October 2024
STRUCTURAL METAL DECKS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
20,708,234
19,538,224
Cost of sales
(18,288,465)
(17,259,018)
Gross profit
2,419,769
2,279,206
Administrative expenses
(2,445,808)
(2,121,455)
Other operating income
3,750
Operating (loss)/profit
4
(22,289)
157,751
Interest receivable and similar income
31,132
15,093
Interest payable and similar expenses
8
(16,002)
(18,224)
(Loss)/profit before taxation
(7,159)
154,620
Tax on (loss)/profit
9
33,881
(34,013)
Profit for the financial year
26,722
120,607
The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
The notes on pages 14 to 30 form part of these financial statements.
STRUCTURAL METAL DECKS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 JULY 2024
31 July 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
827
220
Tangible assets
11
1,143,970
1,312,562
Investments
12
1,100
1,100
1,145,897
1,313,882
Current assets
Stocks
15
335,739
311,700
Debtors
16
5,235,719
4,348,932
Cash at bank and in hand
1,240,566
2,134,801
6,812,024
6,795,433
Creditors: amounts falling due within one year
17
(3,036,093)
(3,009,963)
Net current assets
3,775,931
3,785,470
Total assets less current liabilities
4,921,828
5,099,352
Creditors: amounts falling due after more than one year
18
(66,882)
(237,247)
Provisions for liabilities
Deferred tax liability
21
59,671
93,552
(59,671)
(93,552)
Net assets
4,795,275
4,768,553
Capital and reserves
Called up share capital
23
100,000
100,000
Revaluation reserve
127,357
127,357
Profit and loss reserves
4,567,918
4,541,196
Total equity
4,795,275
4,768,553
The financial statements were approved by the board of directors and authorised for issue on 18 October 2024 and are signed on its behalf by:
Mr B Pratten
Director
Company Registration No. 03560591
STRUCTURAL METAL DECKS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 13 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 August 2022
100,000
127,357
4,420,589
4,647,946
Year ended 31 July 2023:
Profit and total comprehensive income for the year
-
-
120,607
120,607
Balance at 31 July 2023
100,000
127,357
4,541,196
4,768,553
Year ended 31 July 2024:
Profit and total comprehensive income for the year
-
-
26,722
26,722
Balance at 31 July 2024
100,000
127,357
4,567,918
4,795,275
STRUCTURAL METAL DECKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 14 -
1
Accounting policies
Company information
Structural Metal Decks Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Outlook, Ling Road, Tower Park, Poole, Dorset, BH12 4PY.
1.1
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
This 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:
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of SMD Construction Group Ltd. These consolidated financial statements are available from its registered office at The Outlook Ling Road, Tower Park, Poole, Dorset, BH12 4PY.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.
1.3
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.
STRUCTURAL METAL DECKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 15 -
Revenue from construction contracts is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
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.
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses 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 6 years.
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.
1.6
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:
Development costs
Straight line over 6 years
1.7
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
Straight line over 50 years - land not depreciated
Plant and equipment
33% straight line
Fixtures and fittings
33% straight line
Motor vehicles
25% straight line
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 credited or charged to profit or loss.
STRUCTURAL METAL DECKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 16 -
1.8
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.9
Impairment of fixed assets
At each reporting period end date, the company 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.
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.
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.
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.
STRUCTURAL METAL DECKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 17 -
During the year, it was agreed that consumables and tools should be recognised as revenue expenditure rather than being held in stock. As a result, the value of stock at year end has reduced from the previous year due to the changes in classification of stock.
1.11
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
1.12
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.
1.13
Financial instruments
The company 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 company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include 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.
STRUCTURAL METAL DECKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 18 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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 company 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 company after deducting all of its liabilities.
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.
STRUCTURAL METAL DECKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 19 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.14
Equity instruments
Equity instruments issued by the company 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 company.
1.15
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.16
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 income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
STRUCTURAL METAL DECKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 20 -
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 income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.17
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.
1.18
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.19
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 statement of financial position 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 leases asset are consumed.
1.20
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
STRUCTURAL METAL DECKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 21 -
2
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Revenue
Revenue includes work carried out but not yet invoiced or certified. This involves the use of judgement by management as to the value of work done. Long term contracts are valued on percentage of work completed vs cost incurred againist the total estimated cost of the contract. In addition, fixed overhead is apportioned value depending on the size of the contracts at the year end based on the level of overhead they absorb. The accrued income across the group totalled £411,589 (2023: £557,442) and deferred income across the group totalled £86,408 (2023: £230,609).
Trade and other debtors
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of debtors, the ageing profile of debtors and historical experience. At the balance sheet date £332,817 (2023: £63,032) was provided for as a bad debt provision within these financial statements.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Revenue on construction contracts
20,229,761
19,194,295
Other revenue
478,473
343,929
20,708,234
19,538,224
2024
2023
£
£
Turnover analysed by geographical market
UK
20,708,234
19,475,619
Rest of world
-
62,605
20,708,234
19,538,224
STRUCTURAL METAL DECKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
3
Turnover and other revenue
(Continued)
- 22 -
2024
2023
£
£
Other revenue
Interest income
31,132
15,093
4
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
805
(424)
Research and development costs
2,670
(7,994)
Depreciation of owned tangible fixed assets
113,734
123,897
Depreciation of tangible fixed assets held under finance leases
84,144
81,569
Profit on disposal of tangible fixed assets
-
(17,765)
Amortisation of intangible assets
864
619
Cost of stocks recognised as an expense
12,989,174
12,703,221
Operating lease charges
806,019
739,379
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
13,500
13,000
For other services
Accountancy compliance
2,125
2,000
Taxation compliance
1,625
1,500
3,750
3,500
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administration and support
22
24
Operational
20
21
Directors
4
4
Total
46
49
STRUCTURAL METAL DECKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
6
Employees
(Continued)
- 23 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,491,247
1,503,530
Social security costs
151,307
148,046
Pension costs
39,216
39,242
1,681,770
1,690,818
7
Directors' remuneration
In the current year, directors have been remunerated by other group companies. Total director's remuneration, for directors of Structural Metal Decks Limited, was £266,450 (2023: £254,299) and pension contributions totalled £15,975 (2023: £15,292). This has been paid within SMD Construction Group Limited, the parent company.
The highest paid director has remuneration of £113,917 (2023; £108,857) and pension contributions totalled £6,835 (2023: £6,545).
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
2,698
6,464
Interest on finance leases and hire purchase contracts
13,304
11,760
16,002
18,224
9
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
(33,881)
34,013
STRUCTURAL METAL DECKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
9
Taxation
(Continued)
- 24 -
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
(Loss)/profit before taxation
(7,159)
154,620
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.00%)
(1,790)
32,470
Tax effect of expenses that are not deductible in determining taxable profit
270
1,059
Double tax relief
(3,134)
Group relief
(38,430)
(8,457)
Permanent capital allowances in excess of depreciation
39,950
(21,768)
Deferred tax movement
(33,881)
34,013
Marginal relief
(170)
Taxation (credit)/charge for the year
(33,881)
34,013
10
Intangible fixed assets
Goodwill
Development costs
Total
£
£
£
Cost
At 1 August 2023
1,449,996
3,724
1,453,720
Additions
1,471
1,471
At 31 July 2024
1,449,996
5,195
1,455,191
Amortisation and impairment
At 1 August 2023
1,449,996
3,504
1,453,500
Amortisation charged for the year
864
864
At 31 July 2024
1,449,996
4,368
1,454,364
Carrying amount
At 31 July 2024
827
827
At 31 July 2023
220
220
STRUCTURAL METAL DECKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 25 -
11
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 August 2023
1,283,836
1,046,745
383,324
433,347
3,147,252
Additions
4,026
25,260
29,286
At 31 July 2024
1,283,836
1,046,745
387,350
458,607
3,176,538
Depreciation and impairment
At 1 August 2023
440,681
961,198
329,379
103,432
1,834,690
Depreciation charged in the year
29,129
53,371
20,567
94,811
197,878
At 31 July 2024
469,810
1,014,569
349,946
198,243
2,032,568
Carrying amount
At 31 July 2024
814,026
32,176
37,404
260,364
1,143,970
At 31 July 2023
843,155
85,547
53,945
329,915
1,312,562
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Plant and equipment
5,352
Motor vehicles
242,947
301,962
242,947
307,314
The difference between the depreciation charged on cost and the depreciation charged on the revalued amount is deemed immaterial and therefore has not been included within the financial statements.
Land and Buildings with a carrying amount of £400,000 were revalued at 13th August 2018 by an independent valuer not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.
An additional property with a carrying amount of £395,000 was revalued at 30th October 2019 by an independent valuer not connected with the company on the basis of market value. On this date, a property owned by the business was impaired inline with the valuation undertaken. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.
STRUCTURAL METAL DECKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
11
Tangible fixed assets
(Continued)
- 26 -
Historical cost - Building
2024
2023
£
£
Cost
1,316,719
1,316,719
Accumulated depreciation
(333,624)
(304,690)
Carrying value
983,095
1,012,029
12
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
13
1,100
1,100
13
Subsidiaries
Details of the company's subsidiaries at 31 July 2024 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
SMD Intech Private Limited
India
Structural deck development. It's financial period end is 31 March.
Ordinary
99.99
0
Thru Deck Services Limited
Scotland
Installation of composite metal deck flooring.
Ordinary
100.00
-
Precast Structural Solutions Ltd
England
Concrete flooring solutions
Ordinary
100.00
-
14
Financial instruments
2024
2023
£
£
Carrying amount of financial assets measured at amortised cost
Trade debtors
4,201,133
3,099,469
Amounts owed by group companies
442,513
451,349
Accrued income
411,589
557,442
Other debtors
75,462
44,048
5,130,697
4,152,308
Carrying amount of financial liabilities at amortised cost
Bank loans and finance leases
173,270
355,042
Trade creditors
2,682,590
2,484,973
Other creditors
40,112
23,405
Accruals
72,905
111,632
2,968,877
2,975,052
STRUCTURAL METAL DECKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 27 -
15
Stocks
2024
2023
£
£
Materials
335,739
311,700
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,201,133
3,099,469
Corporation tax recoverable
103,974
Other debtors
517,975
495,397
Prepayments and accrued income
516,611
650,092
5,235,719
4,348,932
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
19
13,508
Obligations under finance leases
20
106,388
104,287
Trade creditors
2,682,590
2,484,973
Taxation and social security
47,690
41,549
Deferred income
86,408
230,609
Other creditors
40,112
23,405
Accruals
72,905
111,632
3,036,093
3,009,963
18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
19
101,298
Obligations under finance leases
20
66,882
135,949
66,882
237,247
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
47,265
STRUCTURAL METAL DECKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 28 -
19
Loans and overdrafts
2024
2023
£
£
Bank loans
114,806
Payable within one year
13,508
Payable after one year
101,298
The bank loan was repayable over 15 years from the date of the initial drawdown of the loan. Interest was payable at 2.35% over base rate. The bank loan was repaid in full October 2023.
The bank loan was secured by way of a fixed and floating charge over the company's assets.
20
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
106,388
104,287
In two to five years
66,882
135,949
173,270
240,236
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.
Obligations under finance lease are secured against the assets of which they relate to.
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
59,671
93,552
2024
Movements in the year:
£
Liability at 1 August 2023
93,552
Credit to profit or loss
(33,881)
Liability at 31 July 2024
59,671
STRUCTURAL METAL DECKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
21
Deferred taxation
(Continued)
- 29 -
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
39,216
39,242
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
Contributions totalling £13,882 (2023: £11,487) were payable to the fund at the balance sheet date and are included in creditors.
23
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
100,000
100,000
100,000
100,000
24
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
13,336
21,009
Between two and five years
3,534
16,870
16,870
37,879
25
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Other related parties
143,951
75,139
8,744,759
8,530,353
STRUCTURAL METAL DECKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
25
Related party transactions
(Continued)
- 30 -
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due to related parties
£
£
Other related parties
2,198,571
1,698,152
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Other related parties
14,195
164,758
Other information
The company has taken advantage of the exemption in FRS 102 Section 33 from the requirement to disclose transactions with group companies on the grounds that the company is a wholly owned subsidiary within the group or its ultimate holding company.
26
Directors' transactions
During the year a total of £nil (2023: £nil) was credited to the directors' loan account. Interest of £556 (2023: £504) was charged on this balance. At the balance sheet date the balance owed from the directors was £25,002 (2023: £24,446).
27
Ultimate controlling party
The ultimate parent company is SMD Construction Group Limited, incorporated in England & Wales, with its registered office address at Unit C, The Outlook, Ling Road, Poole, Dorset, BH12 4PY. SMD Construction Group Limited produces group accounts and has included the company in its group accounts, copies of which are available upon request at Companies House.
The directors do not consider there to be an overall controlling party.
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