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Registration number: 11723251

Grayton Holdings Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 31 December 2024

 

Grayton Holdings Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 7

Consolidated Profit and Loss Account and Statement of Retained Earnings

8

Consolidated Balance Sheet

9

Balance Sheet

10

Consolidated Statement of Cash Flows

11

Notes to the Financial Statements

12 to 24

 

Grayton Holdings Limited

Company Information

Directors

R Marshall ACIB

C J Meale

P O'Sullivan B.Sc Mech Eng

R J Southee B.Eng-Hons, C.Eng MIMechE

S Rizvi

Registered office

Stanley House
Falkland Way
Barton Upon Humber
DN18 5RL

Auditors

Forrester Boyd Robson Limited
26 South St. Mary's Gate
Grimsby
North East Lincolnshire
DN31 1LW

 

Grayton Holdings Limited

Strategic Report for the Year Ended 31 December 2024

The Directors present their strategic report for the year ended 31 December 2024.

Principal activity

The principal activity of the Group and Parent Company is that of a mechanical engineering maintenance and engineering services to leading UK industrial companies. The company “Supports the companies that build Britain”.

Fair review of the business

Grayton’s Core sectors of business continue to be of Cement, Oil & Gas, Chemical, Steel and Food. In working with our Blue Chip clients we have found ways of servicing these key industries by collaborating on long term maintenance planning now using preventative maintenance rather than reactive. Since acquiring Richard James Engineering Ltd (RJE) the Group is now working with larger projects in a design and build capacity. This is enabling the client to de-risk and is proving to be a long-term strategy preferred by our clients. As a result of these challenges the business has grown stronger and is now looking into the future and planning maintenance and upgrades years in advance, where this has never been possible previously In December 2024 RD Capital Partners (RDCP), a diversified investment group, acquired 80% of the Grayton Group. This partnership marks the beginning of an exciting new chapter, bringing additional strength and stability to Grayton whilst preserving our core values and ethos.

Overheads have been well controlled highlighting the strong processes and controls in place.

The Directors are pleased with the results achieved and are grateful for the hard work and commitment of all employees, customers and key suppliers.

The investments seen by our client base strongly indicate their determination to “build back better”, to be more capable of supplying UK demand without the need for reliance on overseas imports, whilst also acknowledging that investment is required to produce energy savings and better use of renewable sources.

The Group and Parent Company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2024

2023

Turnover

£

18,584,695

17,263,788

Gross profit

£

4,647,966

5,103,581

Profit before tax

£

2,284,736

2,973,543

Future developments

The Directors continue to investigate further opportunities to grow the business and extend the range of mechanical services offered. The company received Grant funding to create a rotating equipment alignment team 3 years ago and this service now creates an opportunity to look years ahead with planning major capital expenditure projects. With Grayton now being involved in these early discussions the contract value increases to deal with Design, Fabrication, installation and commissioning.

The growing demand from our clients is for Design and Build solutions. With the works being undertaken to integrate RJE design with Grayton fabrication and installation, the group is set to capitalise on winning larger turnkey projects, which provide turnover and growth in traditionally quiet seasonal times.

As well as our traditional markets we are excited to be actively contracted to an increasing number of sustainability projects during 2024, including Carbon Capture and Bio-ethanol manufacture.

Approved and authorised by the Board on 16 April 2025 and signed on its behalf by:
 

.........................................
R Marshall ACIB
Director

 

Grayton Holdings Limited

Directors' Report for the Year Ended 31 December 2024

The Directors present their report and the for the year ended 31 December 2024.

Directors of the Group and Parent Company

The Directors who held office during the year were as follows:

R Marshall ACIB

C J Meale

P O'Sullivan B.Sc Mech Eng

R J Southee B.Eng-Hons, C.Eng MIMechE

S Rizvi (appointed 6 December 2024)

Financial instruments

Objectives and policies

The financial risk management objectives of the directors are to ensure that the company has adequate cash flow to meet trading requirements. In order to meet these objectives the company uses financial instruments, other than derivatives, comprising cash, liquid resources and other items that arise directly from its operations such as trade debtors and trade creditors.

Price risk, credit risk, liquidity risk and cash flow risk

The business' principal financial instruments comprise of bank balances and an invoice discounting facility. The company operates these accordingly to balance the cashflow requirements of the company with the charges incurred by the facility available on trade debtors

Disclosure of information to the auditor

Each Director has taken 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 auditor is aware of that information. The Directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Approved and authorised by the Board on 16 April 2025 and signed on its behalf by:
 

.........................................
R Marshall ACIB
Director

 

Grayton Holdings Limited

Statement of Directors' Responsibilities

The Directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 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 keeping adequate accounting records that are sufficient to show and explain the Group and Parent Company's and the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and Parent Company and the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and Parent Company and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Grayton Holdings Limited

Independent Auditor's Report to the Members of Grayton Holdings Limited

Opinion

We have audited the financial statements of Grayton Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group and Parent Company') for the year ended 31 December 2024, which comprise the Consolidated Profit and Loss Account and Statement of Retained Earnings, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Cash Flows, and 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 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 Group and Parent Company's affairs as at 31 December 2024 and of the Group and Parent Company's 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.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the Group and Parent 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 Group and Parent Company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter 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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

 

Grayton Holdings Limited

Independent Auditor's Report to the Members of Grayton Holdings Limited

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the Group and the Parent Company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

We have nothing to report in respect of the following matters 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 4], 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 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.

Auditor Responsibilities for the audit of the financial statements

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

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

Discussions with management, including consideration of known or suspected instances of non-compliance.

Challenging assumptions and judgements made within significant accounting estimates and judgements including work in progress and long term contracts.

Identification of laws and regulations central to the Company's operations and review of compliance with such laws.

Testing of journal entries and potential override of systems.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the Group'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 Group'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 Group and the Group's members as a body, for our audit work, for this report, or for the opinions we have formed.

 

Grayton Holdings Limited

Independent Auditor's Report to the Members of Grayton Holdings Limited

......................................
Carrie Anne Jensen ACA (Senior Statutory Auditor)
For and on behalf of Forrester Boyd Robson Limited, Statutory Auditor

26 South St. Mary's Gate
Grimsby
North East Lincolnshire
DN31 1LW

16 April 2025

 

Grayton Holdings Limited

Consolidated Profit and Loss Account and Statement of Retained Earnings for the Year Ended 31 December 2024

Note

2024
£

2023
£

Turnover

3

18,584,695

17,263,788

Cost of sales

 

(13,936,729)

(12,160,207)

Gross profit

 

4,647,966

5,103,581

Administrative expenses

 

(2,566,195)

(2,229,032)

Other operating income

4

83,503

74,917

Operating profit

5

2,165,274

2,949,466

Other interest receivable and similar income

6

88,453

24,077

Interest payable and similar charges

7

31,009

-

 

119,462

24,077

Profit before tax

 

2,284,736

2,973,543

Taxation

11

(604,527)

(712,956)

Profit for the financial year

 

1,680,209

2,260,587

Profit/(loss) attributable to:

 

Owners of the Company

 

1,680,209

2,260,587

Retained earnings brought forward

 

3,578,628

1,702,541

Dividends paid

 

(4,057,073)

(384,500)

Retained earnings carried forward

 

1,201,764

3,578,628

 

Grayton Holdings Limited

(Registration number: 11723251)
Consolidated Balance Sheet as at 31 December 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

12

261,266

296,102

Tangible assets

13

687,772

638,490

 

949,038

934,592

Current assets

 

Stocks

15

900

900

Debtors

16

2,300,960

4,018,880

Cash at bank and in hand

 

2,858,240

4,365,376

 

5,160,100

8,385,156

Creditors: Amounts falling due within one year

18

(3,284,203)

(4,131,313)

Net current assets

 

1,875,897

4,253,843

Total assets less current liabilities

 

2,824,935

5,188,435

Provisions for liabilities

19

(171,943)

(158,579)

Net assets

 

2,652,992

5,029,856

Capital and reserves

 

Called up share capital

21

288

288

Other reserves

22

1,450,940

1,450,940

Retained earnings

22

1,201,764

3,578,628

Equity attributable to owners of the company

 

2,652,992

5,029,856

Shareholders' funds

 

2,652,992

5,029,856

Approved and authorised by the Board on 16 April 2025 and signed on its behalf by:
 

.........................................
R Marshall ACIB
Director

 

Grayton Holdings Limited

(Registration number: 11723251)
Balance Sheet as at 31 December 2024

Note

2024
£

2023
£

Fixed assets

 

Investments

14

1,121,458

1,121,458

Current assets

 

Cash at bank and in hand

 

356,977

694,937

Creditors: Amounts falling due within one year

18

(976,834)

(38)

Net current (liabilities)/assets

 

(619,857)

694,899

Net assets

 

501,601

1,816,357

Capital and reserves

 

Called up share capital

21

288

288

Retained earnings

501,313

1,816,069

Shareholders' funds

 

501,601

1,816,357

As permitted under section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes.The company made a profit after tax for the financial year of £2,742,317 (2023 - profit of £884,555).

Approved and authorised by the Board on 16 April 2025 and signed on its behalf by:
 

.........................................
R Marshall ACIB
Director

 

Grayton Holdings Limited

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

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

1,680,209

2,260,587

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

362,283

302,670

Profit on disposal of tangible assets

(23,927)

(31,512)

Finance income

6

(88,453)

(24,077)

Income tax expense

11

604,527

712,956

 

2,534,639

3,220,624

Working capital adjustments

 

Decrease/(increase) in trade debtors

16

1,717,920

(793,116)

(Decrease)/increase in trade creditors

18

(381,429)

859,579

Cash generated from operations

 

3,871,130

3,287,087

Income taxes paid

11

(762,976)

(522,890)

Net cash flow from operating activities

 

3,108,154

2,764,197

Cash flows from investing activities

 

Interest received

88,455

24,077

Acquisitions of tangible assets

(442,595)

(317,705)

Proceeds from sale of tangible assets

 

89,791

42,800

Net cash flows from investing activities

 

(264,349)

(250,828)

Cash flows from financing activities

 

Repayment of bank borrowing

 

(11,462)

(17,264)

Repayment of other borrowing

 

(281,029)

4,999

Payments to finance lease creditors

 

(1,377)

(5,509)

Dividends paid

(4,057,073)

(384,500)

Net cash flows from financing activities

 

(4,350,941)

(402,274)

Net (decrease)/increase in cash and cash equivalents

 

(1,507,136)

2,111,095

Cash and cash equivalents at 1 January

 

4,365,376

2,254,281

Cash and cash equivalents at 31 December

 

2,858,240

4,365,376

 

Grayton Holdings Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

1

General information

The company is a private company limited by share capital incorporated in England and the company registration number is 11723251.

The address of its registered office is:
Stanley House
Falkland Way
Barton Upon Humber
DN18 5RL

These financial statements were authorised for issue by the Board on 16 April 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements have been prepared in sterling which is the functional currency of the Group and are rounded to the nearest pound.

Summary of disclosure exemptions

The Parent company has taken advantage of the reduced disclosure exemption from preparing a cash flow statement as described in section 1.12 of FRS 102.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the Company and its subsidiary undertakings drawn up to 31 December 2024.

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

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the Group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

 

Grayton Holdings Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Inter-company transactions, balances and unrealised gains on transactions between the Company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the Group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Going concern

The financial statements have been prepared on a going concern basis.

Judgements

The Directors have made a number of judgements in applying the Company's accounting policies, the most significant of which is in relation to contract revenue and determining the stage of completion of such long term contracts. The measurement and recognition of amounts recoverable on the long term contracts is closely controlled by the Directors' and involves judgements made using the years of experience and knowledge of the industry held.

Key sources of estimation uncertainty

There is a degree of estimation uncertainty exercised in valuing amounts recoverable on long term contracts. These are discussed in the judgements accounting policy above.

Other areas within the financial statements that are affected by estimation uncertainty are debtor recoverability and the valuation of fixed assets. These estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Group and Parent Company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the Group and Parent Company.

The Group and Parent Company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the Group and Parent Company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.

 

Grayton Holdings Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the Group. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and Machinery

25% Straight line

Fixture and Fittings

25% Straight line

Computer Equipment

33% Straight line

Office Equipment

25% Straight line

Motor Vehicles non-electric

25% Straight line

Motor Vehicles electric

33% Straight line

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the Group and Parent Company in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the Group and Parent Company includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the Group and Parent Company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

10 years

Investments

Investments in equity shares which are publicly traded and where fair value cannot be measured reliably measured at cost less impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

Grayton Holdings Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. A provision for the impairment of trade debtors is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

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, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors 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 the Group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the Group and Parent Company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

Grayton Holdings Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Group and Parent Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Turnover

The analysis of the Group and Parent Company's Turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods

18,584,695

17,263,788

4

Other operating income

The analysis of the Group and Parent Company's other operating income for the year is as follows:

2024
£

2023
£

Grant income

83,503

74,917

Included within grant income is £83,503 relating to HETA, ECITB Grant and Local Colleges.

5

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

327,448

267,834

Amortisation expense

34,836

34,836

Operating lease expense - property

137,038

94,649

Operating lease expense - plant and machinery including cranage

1,600,953

932,691

Profit on disposal of property, plant and equipment

(23,927)

(31,512)

Exceptional costs relating to the sale of the company

97,863

-

6

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

88,453

24,077

7

Interest payable and similar expenses

2024
£

2023
£

Foreign exchange (gains) / losses

(31,009)

-

 

Grayton Holdings Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

8

Staff costs

The aggregate payroll costs (including Directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

7,449,254

6,357,921

Social security costs

812,769

687,206

Pension costs, defined contribution scheme

216,380

290,400

Other employee expense

119,419

111,577

8,597,822

7,447,104

The average number of persons employed by the Group and Parent Company (including Directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Production

96

97

Administration and support

35

30

Sales

4

3

135

130

9

Directors' remuneration

The Directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

106,415

71,618

Contributions paid to money purchase schemes

34,954

131,013

141,369

202,631

10

Auditors' remuneration

2024
£

2023
£

Audit of these financial statements

3,200

5,000

Audit of the financial statements of subsidiaries of the company pursuant to legislation

16,750

16,000

19,950

21,000

Other fees to auditors

All other non-audit services

23,950

17,650


 

 

Grayton Holdings Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

11

Taxation

Tax charged/(credited) in the consolidated profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

591,755

704,618

UK corporation tax adjustment to prior periods

(592)

(6,738)

591,163

697,880

Deferred taxation

Arising from origination and reversal of timing differences

13,364

15,076

Tax expense in the income statement

604,527

712,956

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of 25% (2023 - 23.52%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

2,284,736

2,973,543

Corporation tax at standard rate

571,184

699,377

Decrease in UK and foreign current tax from adjustment for prior periods

(592)

(6,738)

Tax increase from effect of capital allowances and depreciation

5,794

7,462

Tax increase from other short-term timing differences

2,277

384

Effect of expense not deductible in determining taxable profit (tax loss)

25,864

12,471

Total tax charge

604,527

712,956

Deferred tax

Group

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Accelerated capital allowances

-

171,943

-

171,943

2023

Asset
£

Liability
£

Accelerated capital allowances

-

158,579

-

158,579

 

Grayton Holdings Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

12

Intangible assets

Group

Goodwill
 £

Total
£

Cost or valuation

At 1 January 2024

348,356

348,356

At 31 December 2024

348,356

348,356

Amortisation

At 1 January 2024

52,254

52,254

Amortisation charge

34,836

34,836

At 31 December 2024

87,090

87,090

Carrying amount

At 31 December 2024

261,266

261,266

At 31 December 2023

296,102

296,102

13

Tangible assets

Group

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2024

507,853

628,723

1,136,576

Additions

172,987

269,608

442,595

Disposals

(31,860)

(177,269)

(209,129)

At 31 December 2024

648,980

721,062

1,370,042

Depreciation

At 1 January 2024

246,677

251,410

498,087

Charge for the year

144,539

182,909

327,448

Eliminated on disposal

(12,722)

(130,543)

(143,265)

At 31 December 2024

378,494

303,776

682,270

Carrying amount

At 31 December 2024

270,486

417,286

687,772

At 31 December 2023

261,177

377,313

638,490

 

Grayton Holdings Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

14

Investments

Company

2024
£

2023
£

Investments in subsidiaries

1,121,458

1,121,458

Subsidiaries

£

Cost or valuation

At 1 January 2024

1,121,458

Provision

At 31 December 2024

-

Carrying amount

At 31 December 2024

1,121,458

At 31 December 2023

1,121,458

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the Company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

2024

2023

Subsidiary undertakings

Grayton Limited

Stanley House, Falkland Way, Barton Upon Humber, DN18 5RL

Ordinary shares

100%

100%

Richard James Engineering Limited

Stanley House, Falkland Way, Barton Upon Humber, DN18 5RL

Ordinary shares

100%

100%

Subsidiary undertakings

Grayton Limited

The principal activity of Grayton Limited is that of a mechanical engineering maintenance and engineering services to leading UK industrial companies.

Richard James Engineering Limited

The principal activity of Richard James Engineering Limited is engineering design services.

15

Stocks

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Other inventories

900

900

-

-

 

Grayton Holdings Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

16

Debtors

 

Group

Company

Current

2024
£

2023
£

2024
£

2023
£

Trade debtors

1,897,380

3,581,394

-

-

Other debtors

7,796

4,682

-

-

Prepayments

156,817

124,946

-

-

Accrued income

238,967

307,858

-

-

 

2,300,960

4,018,880

-

-

17

Cash and cash equivalents

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Cash on hand

196

263

-

-

Cash at bank

2,858,044

4,365,113

356,977

694,937

2,858,240

4,365,376

356,977

694,937

18

Creditors

   

Group

Company

Note

2024
£

2023
£

2024
£

2023
£

Due within one year

 

Loans and borrowings

23

-

293,868

-

-

Trade creditors

 

1,238,992

1,288,003

-

-

Amounts due to related parties

25

-

-

965,000

-

Social security and other taxes

 

502,882

824,936

-

-

Outstanding defined contribution pension costs

 

30,087

28,090

-

-

Other payables

 

69,732

86,149

-

-

Accruals

 

150,640

305,102

5,250

-

Income tax liability

11

261,793

433,606

6,584

38

Gross amount due to customers for contract work

 

1,030,077

871,559

-

-

 

3,284,203

4,131,313

976,834

38

19

Provisions for liabilities

Group

Deferred tax
£

Total
£

At 1 January 2024

158,579

158,579

Increase (decrease) in existing provisions

13,364

13,364

At 31 December 2024

171,943

171,943

 

Grayton Holdings Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

20

Pension and other schemes

Defined contribution pension scheme

The Group and Parent Company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the Group and Parent Company to the scheme and amounted to £216,380 (2023 - £290,400).

Contributions totalling £30,087 (2023 - £28,090) were payable to the scheme at the end of the year and are included in creditors.

21

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary of £0.01 each

28,769

288

10,000

100

Ordinary A of £0 (2023 - £0.01) each

-

-

10,142

101

Ordinary B of £0 (2023 - £0.01) each

-

-

4,314

43

Ordinary C of £0 (2023 - £0.01) each

-

-

4,313

43

28,769

288

28,769

288

Rights, preferences and restrictions
Ordinary shares have the following rights, preferences and restrictions:
Normal voting and participation rights.

22

Reserves

Group
Called up share capital
Called up share capital comprises of the value of issued share capital at par.

Profit and loss account
The profit and loss account consists of profits made by the company attributable to the shareholders of the company.

Merger reserve
The merger reserve has arisen from a share for share exchange with the company's subsidiary, Grayton Limited.

Company
Called up share capital
Called up share capital comprises of the value of issued share capital at par.

Profit and loss account
The profit and loss account consists of profits made by the company attributable to the shareholders of the company.
 

 

Grayton Holdings Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

23

Loans and borrowings

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Current loans and borrowings

Bank borrowings

-

11,462

-

-

Hire purchase contracts

-

1,377

-

-

Other borrowings

-

281,029

-

-

-

293,868

-

-

Secured other borrowings
Finance lease liabilities with a carrying amount of £Nil (2023 - £1,377) are denominated in sterling.

Amounts owing under finance lease liabilities and bank borrowings are secured on the assets to which they relate.

24

Obligations under leases and hire purchase contracts

Group

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

137,769

85,945

Later than one year and not later than five years

161,563

60,000

299,332

145,945

The amount of non-cancellable operating lease payments recognised as an expense during the year was £137,038 (2023 - £94,649).

 

Grayton Holdings Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

25

Related party transactions

Company

Key management compensation

2024
£

2023
£

Salaries and other short term employee benefits

148,985

210,123

Transactions with directors
Dividends paid to directors during the year total £367,000 (2023: £384,500).

The company has taken advantage of the exemption in section 33 of FRS 102 'Related Party Disclosures' from disclosing transactions with other members of the group in which any subsidiary which is a related party to the transaction is wholly owned by the group.