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REGISTERED NUMBER: 14726917 (England and Wales)




















Group Strategic Report, Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 October 2024

for

Capital27 Limited

Capital27 Limited (Registered number: 14726917)






Contents of the Consolidated Financial Statements
for the Year Ended 31 October 2024




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Consolidated Statement of Profit or Loss 9

Consolidated Statement of Profit or Loss and Other
Comprehensive Income

10

Consolidated Statement of Financial Position 11

Company Statement of Financial Position 12

Consolidated Statement of Changes in Equity 13

Company Statement of Changes in Equity 14

Consolidated Statement of Cash Flows 15

Company Statement of Cash Flows 16

Notes to the Statements of Cash Flows 17

Notes to the Consolidated Financial Statements 18


Capital27 Limited

Company Information
for the Year Ended 31 October 2024







DIRECTORS: N G Roberts
Mrs B B Roberts
Ms C S Roberts
L E Roberts
Ms M A Roberts





SECRETARY: N G Roberts





REGISTERED OFFICE: The Old Byre
Rodbourne Rail Farm
Grange Lane
Malmesbury
Wiltshire
SN16 0ES





REGISTERED NUMBER: 14726917 (England and Wales)

Capital27 Limited (Registered number: 14726917)

Group Strategic Report
for the Year Ended 31 October 2024

We are pleased to present the Strategic Report for Capital27 Ltd, our Family Investment Company (FIC). Capital27 Ltd is owned by the Roberts family, who are also directors of the company. The company serves as the foundation of the family's business interests, overseeing a diverse and successful portfolio of investments.

Capital27 Ltd owns 55% of Engineering Acquisitions Ltd, with the remaining 45% owned directly by the Roberts family. Engineering Acquisitions Ltd acts as the group's holding company and owns:

-100% of Sweetnam and Bradley Ltd,
-100% of Megasteel Ltd, and
- 51% of Megasteel Ropes Ltd (in partnership with a joint venture).

Engineering Acquisitions Ltd benefits from a highly experienced board, including an independent Non-Executive Chair, and an independent Non-Executive Director. Their contributions provide robust independent oversight and invaluable strategic insight. We extend our sincere thanks to them for their dedication and efforts in supporting the executive directors and the boards of our trading companies.

REVIEW OF BUSINESS
The group's turnover and profits, when compared on an annualised basis, reflect a reduction relative to the prior year. It is important to note that the reported figures for the prior year covered a shorter reporting period of approximately seven months. This reduction is primarily due to the challenging conditions in the construction and engineering sectors in which the group companies operate.

Despite these external pressures, all the group's businesses performed well during the year, maintaining strong operational efficiency, and delivering consistent results.

A key performance indicator for the group is cash generation, and the businesses continued to deliver strong cash flows during the year. Cash reserves increased, reinforcing the group's financial stability and ensuring the flexibility to reinvest in growth opportunities or distribute returns as determined by the directors. The group remains focused on ensuring that its businesses are cash generative, which aligns with its long-term strategy for sustainability and value creation.

PRINCIPAL RISKS AND UNCERTAINTIES
The group has identified the following principal risks and mitigating strategies:

Underperformance of Trading Businesses

- Impact: A decline in performance could affect profitability and cash flow.
- Mitigation: Strong management teams are in place at each subsidiary, supported by family members on their
boards.
- Independent oversight from string independent non executive directors at the intermediate holding company
ensures robust governance.

Market Volatility

- Likelihood: Moderate to high, depending on economic factors.
- Impact: Supply chain disruptions or price fluctuations could affect margins.
- Mitigation: Diversified operations and long-standing supplier relationships help manage this risk.

Regulatory Compliance

- Likelihood: Low.
- Impact: Non-compliance could result in reputational or financial harm.
- Mitigation: Ongoing audits and adherence to ESG standards ensure compliance with industry regulations.

KEY PERFORMANCE INDICATORS (KPIS)
The group tracks several KPIs to monitor its performance and drive growth, including:

- Cash generation: A central focus of the group's strategy, ensuring liquidity and flexibility for reinvestment or
distribution.
- Turnover and profitability: Indicators of operational success and resilience in challenging market conditions.
- Return on Capital Employed (ROCE): Measuring the efficiency of investments within the group.

The increase in cash reserves during the year demonstrates the effectiveness of the group's strategy and its ability to adapt to evolving market conditions.


Capital27 Limited (Registered number: 14726917)

Group Strategic Report
for the Year Ended 31 October 2024

CONCLUSION
Capital27 Ltd remains committed to sustainable growth, effective governance, and strategic investments. The group acknowledges the collective efforts of its teams, the guidance of its experienced board members, and the support of its shareholders. Despite challenging market conditions, the group is well-positioned for long-term success and remains focused on maintaining strong cash generation to support its strategic objectives.

ON BEHALF OF THE BOARD:





N G Roberts - Director


14 April 2025

Capital27 Limited (Registered number: 14726917)

Report of the Directors
for the Year Ended 31 October 2024

The directors present their report with the financial statements of the company and the group for the year ended 31 October 2024.

PRINCIPAL ACTIVITY
The principal activity of the group in the year under review was that of was the import and sale of prestressed wire as well as the manufacture and sale of pressed steel products.

DIVIDENDS
The total distribution of dividends for the year ended 31 October 2024 will be Nil (2023: £1,650,000).

DIRECTORS
The directors shown below have held office during the whole of the period from 1 November 2023 to the date of this report.

N G Roberts
Mrs B B Roberts
Ms C S Roberts
L E Roberts
Ms M A Roberts

FINANCIAL INSTRUMENTS
The company holds or issues financial instruments in order to achieve two main objectives, being:
- to finance its operations;
- to manage its exposure to interest risks arising from its operations and its source of finance;
- for trading purposes

In addition, various financial instruments (e.g. trade debtors, trade creditors, accruals and prepayments) arise directly from the company's operations.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with UK-adopted international accounting standards. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

Capital27 Limited (Registered number: 14726917)

Report of the Directors
for the Year Ended 31 October 2024


AUDITORS
The auditors, Sumer Auditco Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:




N G Roberts - Director


14 April 2025

Report of the Independent Auditors to the Members of
Capital27 Limited

Opinion
We have audited the financial statements of Capital27 Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2024 which comprise the Consolidated Statement of Profit or Loss, the Consolidated Statement of Profit or Loss and Other Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows, the Company Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Company Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the UK.

In our opinion:
-the financial statements give a true and fair view of the state of the group's and of the parent company's affairs as at 31 October 2024 and of the group's profit for the year then ended;
-the group financial statements have been properly prepared in accordance with IFRSs as adopted by the UK;
-the parent company financial statements have been properly prepared in accordance with IFRSs as adopted by the UK and as applied in accordance with the provisions of the Companies Act 2006; and
-the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

Report of the Independent Auditors to the Members of
Capital27 Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

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

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

Based on our understanding of the Group and industry, we identified that the principal risks of non-compliance with laws and regulations related to health and safety, employment law and company legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements of the Group. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and taxation legislation. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure, and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the audit engagement team included:

- Discussions with management, including consideration of known or suspected instances of
non-compliance with laws and regulations and fraud;
- Understanding of management's internal controls designed to prevent and detect irregularities and fraud;
- Review of tax compliance;
- Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing of
expenses;
- Testing transactions entered into outside of the normal course of the Group's business; and
- Identifying and testing journal entries, in particular any journal entries with fraud characteristics such as journals
with round numbers.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
Capital27 Limited


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 a Report of the Auditors 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 Iain Black (Senior Statutory Auditor)
for and on behalf of Sumer Auditco Limited
Statutory Auditor
Hermes House
Fire Fly Avenue
Swindon
Wiltshire
SN2 2GA

16 April 2025

Capital27 Limited (Registered number: 14726917)

Consolidated Statement of Profit or Loss
for the Year Ended 31 October 2024

Period
13.3.23
Year Ended to
31.10.24 31.10.23
Notes £    £   

CONTINUING OPERATIONS
Revenue 3 15,590,301 12,270,026

Cost of sales (11,712,558 ) (9,068,848 )
GROSS PROFIT 3,877,743 3,201,178

Other operating income 539 -
Administrative expenses (1,830,308 ) (1,010,055 )
OPERATING PROFIT BEFORE
EXCEPTIONAL ITEMS

2,047,974

2,191,123

Exceptional items 5 - 15,550,590
OPERATING PROFIT 2,047,974 17,741,713

Finance costs 6 (14,630 ) (43,426 )

Finance income 6 275,528 92,411
PROFIT BEFORE INCOME TAX 7 2,308,872 17,790,698

Income tax 8 (611,110 ) (534,700 )
PROFIT FOR THE YEAR 1,697,762 17,255,998
Profit attributable to:
Owners of the parent 931,504 9,474,887
Non-controlling interests 766,258 7,781,111
1,697,762 17,255,998

Capital27 Limited (Registered number: 14726917)

Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the Year Ended 31 October 2024

Period
13.3.23
Year Ended to
31.10.24 31.10.23
£    £   

PROFIT FOR THE YEAR 1,697,762 17,255,998

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

1,697,762

17,255,998

Total comprehensive income attributable to:
Owners of the parent 931,504 9,474,887
Non-controlling interests 766,258 7,781,111
1,697,762 17,255,998

Capital27 Limited (Registered number: 14726917)

Consolidated Statement of Financial Position
31 October 2024

2024 2023
Notes £    £   
ASSETS
NON-CURRENT ASSETS
Goodwill 11 986,090 986,090
Owned
Intangible assets 12 3,295 584
Property, plant and equipment 13 4,764,812 4,822,606
Right-of-use
Property, plant and equipment 13, 23 395,221 423,191
Investments 14 - -
6,149,418 6,232,471
CURRENT ASSETS
Inventories 15 4,308,964 3,656,395
Trade and other receivables 16 4,189,177 2,213,296
Cash and cash equivalents 17 8,518,324 5,951,978
17,016,465 11,821,669
TOTAL ASSETS 23,165,883 18,054,140
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 19 66 66
Retained earnings 20 8,831,391 7,899,887
8,831,457 7,899,953

Non-controlling interests 18 7,197,369 6,431,111
TOTAL EQUITY 16,028,826 14,331,064
LIABILITIES
NON-CURRENT LIABILITIES
Financial liabilities - borrowings
Lease liabilities 22, 23 334,714 377,548
Deferred tax 25 149,121 139,887
483,835 517,435
CURRENT LIABILITIES
Trade and other payables 21 6,162,977 2,832,402
Financial liabilities - borrowings
Lease liabilities 22, 23 78,148 70,049
Tax payable 412,097 303,190
6,653,222 3,205,641
TOTAL LIABILITIES 7,137,057 3,723,076
TOTAL EQUITY AND LIABILITIES 23,165,883 18,054,140


The financial statements were approved by the Board of Directors and authorised for issue on 14 April 2025 and were signed on its behalf by:




N G Roberts - Director


Capital27 Limited (Registered number: 14726917)

Company Statement of Financial Position
31 October 2024

2024 2023
Notes £    £   
ASSETS
NON-CURRENT ASSETS
Goodwill 11 - -
Owned
Intangible assets 12 - -
Property, plant and equipment 13 - -
Right-of-use
Investments 14 55 55
55 55
CURRENT ASSETS
Trade and other receivables 16 75,011 75,011
TOTAL ASSETS 75,066 75,066
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 19 66 66
Retained earnings 20 750 750
TOTAL EQUITY 816 816
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 21 74,250 74,250
TOTAL LIABILITIES 74,250 74,250
TOTAL EQUITY AND LIABILITIES 75,066 75,066


The financial statements were approved by the Board of Directors and authorised for issue on 14 April 2025 and were signed on its behalf by:





N G Roberts - Director


Capital27 Limited (Registered number: 14726917)

Consolidated Statement of Changes in Equity
for the Year Ended 31 October 2024

Called up
share Retained Non-controlling Total
capital earnings Total interests equity
£    £    £    £    £   

Changes in equity
Issue of share capital 66 - 66 - 66
Dividends - (1,575,000 ) (1,575,000 ) (1,350,000 ) (2,925,000 )
Total comprehensive income - 9,474,887 9,474,887 7,781,111 17,255,998
Balance at 31 October 2023 66 7,899,887 7,899,953 6,431,111 14,331,064

Changes in equity
Total comprehensive income - 931,504 931,504 766,258 1,697,762
Balance at 31 October 2024 66 8,831,391 8,831,457 7,197,369 16,028,826

Capital27 Limited (Registered number: 14726917)

Company Statement of Changes in Equity
for the Year Ended 31 October 2024

Called up
share Retained Total
capital earnings equity
£    £    £   

Changes in equity
Issue of share capital 66 - 66
Dividends - (1,575,000 ) (1,575,000 )
Total comprehensive income - 1,575,750 1,575,750
Balance at 31 October 2023 66 750 816

Changes in equity
Balance at 31 October 2024 66 750 816

Capital27 Limited (Registered number: 14726917)

Consolidated Statement of Cash Flows
for the Year Ended 31 October 2024

Period
13.3.23
Year Ended to
31.10.24 31.10.23
£    £   
Cash flows from operating activities
Cash generated from operations 1 2,600,241 7,477,927
Interest paid (14,630 ) (43,426 )
Tax paid (492,968 ) -
Net cash from operating activities 2,092,643 7,434,501

Cash flows from investing activities
Purchase of intangible fixed assets (4,906 ) -
Purchase of tangible fixed assets (219,877 ) -
Sale of tangible fixed assets 68,083 -
Interest received 275,528 92,411
Net cash from investing activities 118,828 92,411

Cash flows from financing activities
Payment of lease liabilities (34,735 ) -
Amount introduced by directors 389,610 -
Share issue - 66
Equity dividends paid - (1,575,000 )
Net cash from financing activities 354,875 (1,574,934 )

Increase in cash and cash equivalents 2,566,346 5,951,978
Cash and cash equivalents at beginning
of year

2

5,951,978

-

Cash and cash equivalents at end of year 2 8,518,324 5,951,978

Capital27 Limited (Registered number: 14726917)

Company Statement of Cash Flows
for the Year Ended 31 October 2024

Period
13.3.23
Year Ended to
31.10.24 31.10.23
£    £   
Cash flows from operating activities
Cash generated from operations 1 - (75,011 )
Net cash from operating activities - (75,011 )

Cash flows from investing activities
Purchase of fixed asset investments - (55 )
Dividends received - 1,650,000
Net cash from investing activities - 1,649,945

Cash flows from financing activities
Share issue - 66
Equity dividends paid - (1,575,000 )
Net cash from financing activities - (1,574,934 )

Increase in cash and cash equivalents - -
Cash and cash equivalents at beginning
of year

2

-

-

Cash and cash equivalents at end of year 2 - -

Capital27 Limited (Registered number: 14726917)

Notes to the Statements of Cash Flows
for the Year Ended 31 October 2024

1. RECONCILIATION OF PROFIT BEFORE INCOME TAX TO CASH GENERATED FROM OPERATIONS

Group
Period
13.3.23
Year Ended to
31.10.24 31.10.23
£    £   
Profit before income tax 2,308,872 17,790,698
Depreciation charges 257,980 -
Profit on disposal of fixed assets (18,228 ) -
Purchase of net assets of group - (10,188,786 )
Finance costs 14,630 43,426
Finance income (275,528 ) (92,411 )
2,287,726 7,552,927
Increase in inventories (652,569 ) -
Increase in trade and other receivables (1,975,881 ) (75,000 )
Increase in trade and other payables 2,940,965 -
Cash generated from operations 2,600,241 7,477,927

Company
Period
13.3.23
Year Ended to
31.10.24 31.10.23
£    £   
Profit before income tax - 1,575,750
Finance income - (1,650,000 )
- (74,250 )
Increase in trade and other receivables - (75,011 )
Increase in trade and other payables - 74,250
Cash generated from operations - (75,011 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statements of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Group Company
Year ended 31 October 2024
31.10.24 1.11.23 31.10.24 1.11.23
£    £    £    £   
Cash and cash equivalents 8,518,324 5,951,978 - -
Period ended 31 October 2023
31.10.23 13.3.23 31.10.23 13.3.23
£    £    £    £   
Cash and cash equivalents 5,951,978 - - -

Capital27 Limited (Registered number: 14726917)

Notes to the Consolidated Financial Statements
for the Year Ended 31 October 2024


1. STATUTORY INFORMATION

Capital27 Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2. ACCOUNTING POLICIES

Basis of preparation
These financial statements have been prepared in accordance with UK-adopted international accounting standards and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The financial statements have been prepared under the historical cost convention.

Basis of consolidation
The consolidated financial statements incorporate the financial statements of Capital27 Limited and entities
controlled by Capital27 Limited. Consolidation has been performed on the acquisition basis of accounting.
Uniform accounting policies are adopted throughout the Group.

Going concern
The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). They have been prepared under the assumption the Group operates on a going concern basis, which assumes the Group will be able to discharge its liabilities as they fall due. In confirming the validity of the going concern basis of preparation, the Group has considered the following specific factors:

- the Group reported a profit of £1.7m for the year and had an excess of current assets over
current liabilities of £10.4m.
- the Group generated positive operating cash flows of £2.1m in the current period
- management prepares a forecatsed cashflow and continue to to monitor actual performance

The significant accounting policies applied in the preparation of these financial statements are set out below.
These policies have been consistently applied to all years presented unless otherwise stated.

Business combinations
The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the:
- fair values of the assets transferred
- liabilities incurred to the former owners of the acquired business
- equity interests issued by the group or fair value of any asset or liability resulting from a contingent
consideration arrangement, and
- fair value of any pre-existing equity interest in the subsidiary.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. The group recognises any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest's proportionate share of the acquired entity's net identifiable assets.

Acquisition-related costs are expensed as incurred.

The excess of the consideration transferred, amount of any non-controlling interest in the acquired entity, and acquisition-date fair value of any previous equity interest in the acquired entity over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the business acquired, the difference is recognised directly in profit or loss as a bargain purchase.

Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity's incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions.

Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial
liability are subsequently remeasured to fair value, with changes in fair value recognised in profit or loss.

If the business combination is achieved in stages, the acquisition date carrying value of the acquirer's previously held equity interest in the acquiree is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are recognised in profit or loss.

Capital27 Limited (Registered number: 14726917)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 October 2024

2. ACCOUNTING POLICIES - continued

Investment in subsidiaries
The consolidated financial statements incorporate the financial statements of the company and entities
(including special purpose entities) controlled by the group (its subsidiaries). Control is achieved where the
group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in total comprehensive income from the effective date of acquisition and up to the effective date of disposal, as appropriate using accounting policies consistent with those of the parent. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.

Investments in subsidiaries are accounted for at cost less impairment in the individual financial statements.

Critical accounting estimates and assumptions
The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:

(i) Impairment of intangible assets
Intangible assets are reviewed for impairment at each balance sheet date. An impairment loss is recognised in the statement of profit or loss when the asset's carrying value in the statement of financial position exceeds its fair value. The value in use of an asset is the expected future cash flows that the asset in its current condition will produce, discounted to present value using an appropriate discount rate

(ii) Useful economic life of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimates useful economic
lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

(iii) Stock provisioning
The group's products are subject to changing industry demands and market trends. As a result it is
necessary to consider the recoverability of the cost of stock and the associated provisioning required. When
calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability of stock and work in progress.

(iv) Impairment of debtors
The group 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 the debtor, the ageing profile of debtors and historical experience.

Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for
customer returns, rebates or other similar allowances and is net of value added taxes. Revenue includes
revenue earned from the sale of goods.

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

-the group has transferred to the buyer the significant risks and rewards of ownership of the goods;
-the group retains neither continuing managerial involvement to the degree associated with ownershipnor
effective control over the goods sold;
-the amount of revenue can be measured reliably;
-it is probable that the economic benefits associated with the transaction can be measured reliably.

Specifically, revenue from the sale of goods is primarily recognised upon delivery of the goods to the customer.

Cash and cash equivalents
Cash represents cash in hand and deposits held on demand with financial institutions. Cash equivalents are short-term, highly-liquid investments with original maturities of three months or less (as at their date of acquisition). Cash equivalents are readily convertible to known amounts of cash and subject to an insignificant risk of change in that cash value.

In the presentation of the Statement of Cash Flows, cash and cash equivalents also include bank overdrafts. Any such overdrafts are shown within borrowings under ‘current liabilities’ on the Statement of Financial Position.

Capital27 Limited (Registered number: 14726917)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 October 2024

2. ACCOUNTING POLICIES - continued

Goodwill
Goodwill arising on the acquisition of subsidiary undertakings and businesses, representing any excess of the fair value of the consideration given over the fair value of the identifiable assets and liabilities acquired.. Provision is made for any impairment.

Intangible assets
Intangible assets are initially measured at costs. After initial recognition they are measured at cost less any accumulated amortisation and any accumulated impairment losses

Property, plant and equipment
Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost
includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs and borrowing costs capitalised.

(i) Depreciation and residual values
Depreciation assets is calculated, using the straight-line and reducing balance methods, to allocate the cost of their residual values over their estimated useful lives, as follows:

Freehold property- 2% on straight line basis
Short leasehold- 10% on straight line basis
Improvements to property- 10% on straight line basis
Plant and machinery- 20% on straight line basis and 15% on reducing balance
Fixtures and fittings- 33% on straight line basis and 15% on reducing balance
Motor vehicles- 33% on straight line basis and 25% on reducing balance
Computer equipment- 25% on straight line basis and 20% on reducing balance

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each
reporting period. The effect of any changes is accounted for prospectively.

(ii) Subsequent additions and major components
Subsequent costs are included in the assets carrying amount or recognised as a separate asset, as appropriate, only when it is probable that economic benefits associated with the item will flow to the company and the cost can be measured reliably.

The carrying amount of any replaced component is derecognised. Major components are treated as a separate asset when they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life.

Repairs and maintenance costs are expensed as incurred.

(iii) Assets in the course of construction
Assets in the course of construction are stated at cost. These assets are not depreciated until they are available for use.

(iv) Derecognition
Tangible assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in profit or loss.

Capital27 Limited (Registered number: 14726917)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 October 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
(i) Financial assets
Basic financial assets, including trade and other receivables, cash and bank balances, are initially recognised at transaction price, 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.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective
evidence of impairment. 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 assets 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 amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

(ii) Financial liabilities
Basic financial liabilities, including trade and other payables, bank loans and overdrafts and loans from fellow
group companies, 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 receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Inventories
Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Inventories are recognised as an expense in the period in which the related revenue is recognised. These are valued on a FIFO basis.

Cost includes the purchase price, including taxes and duties and transport and handling directly attributable to bringing the inventory to its present location and condition.

At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the
identified inventory is reduced to its selling price less costs to complete and sell and an impairment is recognised in the profit and loss account. Where a reversal of the impairment is recognised the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.

Taxation
Current tax is the amount of income tax payable in respect of the taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amount expected to be paid to the tax authorities.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Capital27 Limited (Registered number: 14726917)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 October 2024

2. ACCOUNTING POLICIES - continued

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Leases
Leases are recognised as finance leases. The lease liability is initially recognised at the present value of the lease payments which have not yet been made and subsequently measured under the amortised cost method. The initial cost of the right-of-use asset comprises the amount of the initial measurement of the lease liability, lease payments made prior to the lease commencement date, initial direct costs and the estimated costs of removing or dismantling the underlying asset per the conditions of the contract.

Where ownership of the right-of-use asset transfers to the lessee at the end of the lease term, the right-of-use asset is depreciated over the asset’s remaining useful life. If ownership of the right-of-use asset does not transfer to the lessee at the end of the lease term, depreciation is charged over the shorter of the useful life of the right-of-use asset and the lease term.

Employee benefit costs
The company provides a range of benefits to employees, including paid holiday arrangements and defined
benefit and defined contribution pension plans.

(i) Short term benefits
Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an
expense in the period in which the service is received.

(ii) Defined contribution pension plans
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension
plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The obligations are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Capital27 Limited (Registered number: 14726917)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 October 2024

2. ACCOUNTING POLICIES - continued

Impairment of financial assets
Financial assets are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when 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 of the investment have been affected.

For all other financial assets, objective evidence of impairment could include:

- significant financial difficulty of the issuer or counterparty; or
- breach of contract, such as a default or delinquency in interest or principal payments; or
- it becoming probable that the borrower will enter bankruptcy or financial re-organisation; or
- the disappearance of an active market for that financial asset because of financial difficulties.

For certain categories of financial asset, such as trade receivables, assets that are assessed not to be impaired individually are, in addition, assessed for impairment on a collective basis. Objective evidence of impairment for a portfolio of receivables could include the company's past experience of collecting payments, an increase in the number of delayed payments in the portfolio past the average credit period, as well as observable changes in national or local economic conditions that correlate with default on receivables.

For financial assets carried at amortised cost, the amount of the impairment loss recognised is the difference
between the asset's carrying amount and the present value of estimated future cash flows, discounted at the
financial asset's original effective interest rate.

For financial assets carried at cost, the amount of the impairment loss is measured as the difference between
the asset's carrying amount and the present value of the estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment loss will not be reversed in subsequent periods.

The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables, where the carrying amount is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in profit or loss.

For financial assets measured at amortised cost, if, in a subsequent period, the amount of the impairment loss
decreases and the decrease can be related objectively to an event occurring after the impairment was
recognised, the previously recognised impairment loss is reversed through profit or loss to the extent that the
carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised.

Provisions and contingencies
(i) Provisions
Provisions are recognised when the company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is
determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one time included in the same class of obligations may be small.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as a finance cost.

(ii) Contingencies
Contingent liabilities are not recognised. Contingent liabilities arise as a result of past events when (a) it is not
probable that there will be an outflow of resources or that the amount cannot be reliably measured at the
reporting date or (b) when the existence will be confirmed by the occurrence or non-occurrence of uncertain
future events not wholly within the company's control. Contingent liabilities are disclosed in the financial
statements unless the probability of an outflow of resources is remote.

Contingent assets are recognised in the financial statements when an inflow of economic benefit is virtually
certain.

Capital27 Limited (Registered number: 14726917)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 October 2024

2. ACCOUNTING POLICIES - continued

Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary
shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Distributions to equity holders
Dividends and other distributions to company's shareholders are recognised as a liability in the financial
statements in the period in which the dividends and other distributions are approved by the company's
shareholders. These amounts are recognised in the statement of changes in equity.

Related parties
For the purposes of these financial statements, a party is considered to be related to the company if:
(i) the party has the ability, directly or indirectly, through one or more intermediaries, to control the Company or
exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the company;
(ii) the company and the party are subject to common control;
(iii) the party is an associate of the company or a joint venture in which the company is a venturer;
(iv) the party is a member of key management personnel of the company or the company's parent, or a close
family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals;
(v) the party is a close family member of a party referred to in (i) or is an entity under the control, joint control or significant influence of such individuals; or
(vi) the party is a post-employment benefit plan which is for the benefit of employees of the company or of any entity that is a related party of the company.

Close family members of an individual are those family members who may be expected to influence, or be
influenced by, that individual in their dealings with the entity.

Operating segments
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker ('CODM'). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors of the group. The Group has two reporting segments, being distribution of prestressing wire and strand and pressed steel products.

Impact of new or revised accounting standards
New Standards adopted as at 1 January 2024
Some accounting pronouncements which have become effective from 1 January 2024 and have therefore been adopted do not have a significant impact on the Group’s financial results or position.

Standards, amendments and interpretations to existing Standards that are not yet effective and have not been adopted early by the Group
At the date of authorisation of these consolidated financial statements, several new, but not yet effective, Standards and amendments to existing Standards, and Interpretations have been published by the IASB or IFRIC. None of these Standards or amendments to existing Standards have been adopted early by the Group and no Interpretations have been issued that are applicable and need to be taken into consideration by the Group at either reporting date.

Management anticipates that all relevant pronouncements will be adopted for the first period beginning on or after the effective date of the pronouncement. New Standards, amendments and Interpretations not adopted in the current year have not been disclosed as they are not expected to have a material impact on the Group’s consolidated financial statements.

Capital27 Limited (Registered number: 14726917)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 October 2024

3. REVENUE

Segmental reporting
The Chief Operating Decision Maker ("CODM") has been identified as the Directors. The CODM reviews the Group's internal reporting in order to assess performance and allocate resources. The CODM has determined that there are two operating segment being prestressing wire and press steel products.



Period ended 31 October 2024
Prestressing
wire
Pressed steel
products

Total
£ £ £
Revenue 12,742,516 3,194,196 15,936,712
Depreciation and amortisation 92,572 165,409 257,981
Operating profit 1,570,864 517,111 2,087,975
Financial income 202,661 72,837 275,498
Financial expenses 5,191 9,951 15,142
Profit before tax 1,570,894 777,979 2,348,873
Trade receivables 2,154,638 430,717 2,585,355
Total assets 14,541,835 3,501,633 18,043,468
Segment liabilities 6,098,973 1,022,745 7,121,718



Period ended 31 October 2023
Prestressing
wire
Pressed steel
products

Total
£ £ £
Revenue 10,201,897 2.068,130 12,270,027
Depreciation and amortisation 50,539 129,596 180,135
Operating profit 1,753,037 438,086 2,191,123
Financial income 76,694 15,717 92,411
Financial expenses 36,728 6,698 43,426
Profit before tax 2,349,167 447,104 2,796,272
Trade receivables 1,698,757 402,949 2,101,706
Total assets 17,717,469 2,937,435 20,654,904
Segment liabilities 2,681,669 523,971 3,205,640

Sales made to countries outside of the UK are not material to the group.

4. EMPLOYEES AND DIRECTORS
Period
13.3.23
Year Ended to
31.10.24 31.10.23
£    £   
Wages and salaries 1,402,344 812,077
Social security costs 170,854 69,949
Other pension costs 52,081 19,485
1,625,279 901,511

The average number of employees during the year was as follows:
Period
13.3.23
Year Ended to
31.10.24 31.10.23

Directors 5 5
Admin 7 7
Management and design 5 5
Finance 1 1
Production 30 30
48 48

Capital27 Limited (Registered number: 14726917)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 October 2024

4. EMPLOYEES AND DIRECTORS - continued

Period
13.3.23
Year Ended to
31.10.24 31.10.23
£    £   
Directors' remuneration 140,000 77,863
Directors' pension contributions to money purchase schemes 4,516 -

5. EXCEPTIONAL ITEMS




YearEnded
30.10.24


Period
13.3.23 to
31.10.23
£ £
Gain on business combination - 15,550,590
- 15,550,590

6. NET FINANCE INCOME
Period
13.3.23
Year Ended to
31.10.24 31.10.23
£    £   
Finance income:
Deposit account interest 275,528 92,411
Finance costs:
Lease liability interest 9,951 6,470
Other interest 4,679 36,956
14,630 43,426

Net finance income 260,898 48,985

7. PROFIT BEFORE INCOME TAX

The profit before income tax is stated after charging/(crediting):
Period
13.3.23
Year Ended to
31.10.24 31.10.23
£    £   
Cost of inventories recognised as expense (346,410 ) -
Depreciation - owned assets 184,038 129,305
Depreciation - assets on finance leases 71,748 39,227
(Profit)/loss on disposal of fixed assets (18,228 ) 13,648
Computer software amortisation 2,195 11,627
Auditors' remuneration 50,996 11,494
Foreign exchange differences (206 ) (70 )

Capital27 Limited (Registered number: 14726917)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 October 2024

8. INCOME TAX

Analysis of tax expense
Period
13.3.23
Year Ended to
31.10.24 31.10.23
£    £   
Current tax:
Tax 601,875 527,706

Deferred tax 9,235 6,994
Total tax expense in consolidated statement of profit or loss 611,110 534,700

Factors affecting the tax expense
The tax assessed for the year is higher (2023 - lower) than the standard rate of corporation tax in the UK. The difference is explained below:

Period
13.3.23
Year Ended to
31.10.24 31.10.23
£    £   
Profit before income tax 2,308,872 17,790,698
Profit multiplied by the standard rate of corporation tax in the UK of 24.977
% (2023 - 22.512 %)

576,687

4,005,042

Effects of:
Charges paid (4,416 ) (3,526 )
Expenses not deductible for tax 20,973 19,808
Depreciation in excess of capital allowances 22,423 (2,160 )
Gain on business combination not taxable - (3,484,464 )
Profit on disposal of assets (4,557 ) -
Tax expense 611,110 534,700

9. PROFIT OF PARENT COMPANY

As permitted by Section 408 of the Companies Act 2006, the income statement of the parent company is not
presented as part of these financial statements. The parent company's profit for the financial year was £Nil (2023- £1,575,750).

10. DIVIDENDS
Period
13.3.23
Year Ended to
31.10.24 31.10.23
£    £   
shares of each
Interim - 1,575,000

Capital27 Limited (Registered number: 14726917)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 October 2024

11. GOODWILL

Group
£   
COST
At 1 November 2023
and 31 October 2024 986,090
NET BOOK VALUE
At 31 October 2024 986,090
At 31 October 2023 986,090

12. INTANGIBLE ASSETS

Group
Computer
software
£   
COST
At 1 November 2023 12,211
Additions 4,906
At 31 October 2024 17,117
AMORTISATION
At 1 November 2023 11,627
Amortisation for year 2,195
At 31 October 2024 13,822
NET BOOK VALUE
At 31 October 2024 3,295
At 31 October 2023 584

13. PROPERTY, PLANT AND EQUIPMENT

Group
Improvements
Freehold Short to Plant and
property leasehold property machinery
£    £    £    £   
COST
At 1 November 2023 4,195,581 462,418 46,470 590,816
Additions 43,778 - - 44,705
Disposals - - - -
At 31 October 2024 4,239,359 462,418 46,470 635,521
DEPRECIATION
At 1 November 2023 43,131 39,227 2,005 70,188
Charge for year 78,766 70,532 3,606 73,470
Eliminated on disposal - - - -
At 31 October 2024 121,897 109,759 5,611 143,658
NET BOOK VALUE
At 31 October 2024 4,117,462 352,659 40,859 491,863
At 31 October 2023 4,152,450 423,191 44,465 520,628

Capital27 Limited (Registered number: 14726917)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 October 2024

13. PROPERTY, PLANT AND EQUIPMENT - continued

Group

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 November 2023 2,299 91,793 24,952 5,414,329
Additions 48,365 74,583 8,446 219,877
Disposals - (89,604 ) - (89,604 )
At 31 October 2024 50,664 76,772 33,398 5,544,602
DEPRECIATION
At 1 November 2023 - 10,680 3,301 168,532
Charge for year 558 22,267 6,587 255,786
Eliminated on disposal - (39,749 ) - (39,749 )
At 31 October 2024 558 (6,802 ) 9,888 384,569
NET BOOK VALUE
At 31 October 2024 50,106 83,574 23,510 5,160,033
At 31 October 2023 2,299 81,113 21,651 5,245,797

14. INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 November 2023
and 31 October 2024 55
NET BOOK VALUE
At 31 October 2024 55
At 31 October 2023 55

The group's subsidiaries at the balance sheet date included in the consolidated accounts are the following:

Company name Registered office Nature of
business
Class of
shares held
% Held
Engineering Acquisitions Limited Rodbourne Rail
Business Centre,
Grange Lane,
Malmesbury SN16 0ES
Holding
company
ordinary 55%
Megasteel Limited The Old Byre
Rodbourne Rail Farm,
Grange Lane,
Malmesbury SN16 0ES
Wholesale of
prestressing
wire
ordinary 55%
Sweetnam & Bradley Limited Industrial Estate,
Gloucester Road,
Malmesbury, Wiltshire,
England, SN16 0DY
Manufacture of
pressed steel
products
ordinary 55%
Megasteel Ropes Limited Rodbourne Rail
Business Centre,
Grange Lane,
Malmesbury SN16 OES
Wholesale of
prestressing
wire
ordinary 28%

Capital27 Limited (Registered number: 14726917)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 October 2024

15. INVENTORIES

Group
2024 2023
£    £   
Stocks 4,308,964 3,656,395

16. TRADE AND OTHER RECEIVABLES

Group Company
2024 2023 2024 2023
£    £    £    £   
Current:
Trade debtors 2,585,356 2,101,706 - -
Other debtors 1,579,627 83,153 75,011 75,011
Prepayments 24,194 28,437 - -
4,189,177 2,213,296 75,011 75,011

Trade and other debtors are held under standard commercial terms and conditions.

17. CASH AND CASH EQUIVALENTS

Group
2024 2023
£    £   
Bank accounts 8,518,324 5,951,978

18. NON-CONTROLLING INTERESTS

£   
As at 31 October 2023 6,431,111
Share of profit of subsidiaries for the year 786,623
Share of dividends -
As at 31 October 2024 7,217,734


19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023
value: £
6 Ordinary A £1 6
6 Ordinary B £1 6
18 Ordinary C £1 18
18 Ordinary D £1 18
18 Ordinary E £1 18
66

The holders of each class of ordinary shares are entitled to full voting, dividend and capital distribution rights, including on winding up. The shares do not confer any rights of redemption.

Capital27 Limited (Registered number: 14726917)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 October 2024

20. RESERVES

Group
Retained
earnings
£   

At 1 November 2023 7,899,887
Profit for the year 931,504
At 31 October 2024 8,831,391

Company
Retained
earnings
£   

At 1 November 2023 750
Profit for the year -
At 31 October 2024 750


21. TRADE AND OTHER PAYABLES

Group Company
2024 2023 2024 2023
£    £    £    £   
Current:
Trade creditors 5,034,842 2,194,497 - -
Amounts owed to group undertakings - - 74,250 74,250
Social security and other taxes 30,249 27,951 - -
Other creditors 4,871 28,866 - -
Accruals and deferred income 129,745 81,937 - -
Directors' current accounts 462,783 73,173 - -
VAT 500,487 425,978 - -
6,162,977 2,832,402 74,250 74,250

22. FINANCIAL LIABILITIES - BORROWINGS

Group
2024 2023
£    £   
Current:
Leases (see note 23) 78,148 70,049

Non-current:
Leases (see note 23) 334,714 377,548


Terms and debt repayment schedule

Group

1 year or
less 1-2 years 2-5 years Totals
£    £    £    £   
Leases 78,148 79,943 254,771 412,862

Capital27 Limited (Registered number: 14726917)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 October 2024

23. LEASING

Group
Right-of-use assets

Property, plant and equipment

2024 2023
£    £   
COST
At 1 November 2023 462,418 -
Additions 43,778 462,418
506,196 462,418

DEPRECIATION
At 1 November 2023 39,227 -
Charge for year 71,748 39,227
110,975 39,227

NET BOOK VALUE 395,221 423,191

Group
Lease liabilities

Minimum lease payments fall due as follows:

2024 2023
£    £   
Gross obligations repayable:
Within one year 89,000 80,000
Between one and five years 356,000 320,000
In more than five years - 80,000

445,000 480,000

Finance charges repayable:
Within one year 10,852 9,951
Between one and five years 21,286 21,737
In more than five years - 715
32,138 32,403

Net obligations repayable:
Within one year 78,148 70,049
Between one and five years 334,714 298,263
In more than five years - 79,285
412,862 447,597

Capital27 Limited (Registered number: 14726917)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 October 2024

24. FINANCIAL INSTRUMENTS

The carrying value of the groups financial assets and liabilities are summarised by category below:


2024 2023
£ £
Financial Assets
Measured at undiscounted amount receivable
- Trade debtors, other debtors and accrued income 4,164,983 2,184,859
- Cash at bank and in hand 8,518,324 5,951,978
12,683,307 8,136,637

Financial Liabilities
Measured at undiscounted amount payable
- Trade creditors, other creditors, accruals and leases 6,005,076 2,826,040
6,005,076 2,826,040

Prepayments and deferred income are excluded from the above as this analysis is required only for financial instruments.

Financial risk factors
The company is exposed to the following risks:

Market risk
The group holds no investments in equity outside of the group or other securities and has no borrowing.

Foreign currency risk
The group primarily transacts in Sterling therefore exposure to currency risk is limited.

Credit risk
The group may offer credit terms to its customers which allow payment of debt after delivery of the goods or services. The group is at risk to the extent that a customer may be unable to pay the debt on the specified due date. This risk is mitigated by strong on-going customer relationships and by ongoing credit checks.

Further disclosures regarding trade and other receivables, which are neither past due or impaired, are provided in note 15.

Liquidity risk
The objective of the group in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The group expects to meet its financial obligations through normal operating cash flows.

25. DEFERRED TAX

Group
2024 2023
£    £   
Balance at 1 November 139,887 -
Accelerated capital allowances 9,234 139,887
Balance at 31 October 149,121 139,887

26. PENSION COMMITMENTS

During the year pension contributions of £47,565 (2023: £57,463) were made on behalf of the employees. At the year end outstanding pension contributions payable amounted to £Nil (2023: Nil).

Capital27 Limited (Registered number: 14726917)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 October 2024

27. RELATED PARTY DISCLOSURES

The remuneration of directors and other members of key management during the year was as follows:

2024 2023
£    £   
Salaries and other short term benefits 140,000 77,863

28. BUSINESS COMBINATIONS

On 8 August 2023, the group acquired control of Engineering Acquisitions Limited and this in turn acquired control of the subsidiaries Megasteel Limited, Megasteel Ropes Limited and Sweetnam and Bradley Limited.

The fair value of assets acquired, liabilities assumed and the non-controlling interest at the acquisition date are equal to their book value.