REGISTERED NUMBER: |
Firth Steels Limited |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 31 July 2024 |
REGISTERED NUMBER: |
Firth Steels Limited |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 31 July 2024 |
Firth Steels Limited (Registered number: 01715793) |
Contents of the Financial Statements |
for the year ended 31 July 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 7 |
Report of the Independent Auditors | 10 |
Income Statement | 14 |
Other Comprehensive Income | 15 |
Statement of Financial Position | 16 |
Statement of Changes in Equity | 17 |
Statement of Cash Flows | 18 |
Notes to the Statement of Cash Flows | 19 |
Notes to the Financial Statements | 21 |
Firth Steels Limited |
Company Information |
for the year ended 31 July 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Accountants & Statutory Auditors |
33 George Street |
Wakefield |
West Yorkshire |
WF1 1LX |
Firth Steels Limited (Registered number: 01715793) |
Strategic Report |
for the year ended 31 July 2024 |
The directors present their strategic report for the year ended 31 July 2024. |
REVIEW OF BUSINESS |
Sales for the Year ended 31st July 2024 were £32.2m, this is a decrease of 17.9% from 2023 sales of £39.2m. |
The reduction in performance through revenues can be widely perceived to be driven by the reducing prices and product mix flowing through production due to the stabilisation of the steel market in H2 2023 and throughout 2024. |
Production measures such as tonnage manufactured show a consistent output in 2024 with that of 2023 with only a slight reduction of 2.5%, showing clear evidence that variances in revenue are price driven rather than volume. |
Inflated steel prices within FY 2022 were primarily driven by global events such as the COVID-19 pandemic, with the upside being realised when pressures from funders, developers, and sites to get projects completed applied extensive pressure on the whole supply chain, subsequently driving the increase in prices due to shortages. |
These inflated prices carried into the first half of FY 2023, with the second half of FY 2023 showing a lot of instability in prices as things started to reposition, as a result the price per unit of steel drastically reduced as the year developed. |
The stabilisation of prices then came in FY 2024, albeit at the bottom end of the price ranges. |
FY 2024 is more comparable to FY 2021, which was a more stable consistent market in terms of pricing. FY 2020 Revenue was £27.8m, therefore an upside of £4.4m is shown in FY 2024 (15.8%). |
With a stabilising market in terms of unit prices and demand, came a further stabilisation in stock levels, with Year Ended July 2024 showing stock levels of £4.7m versus £6.2m at Year Ended July 2023 and £11.7m at Year Ended July 2022. As a business this has been a key focus over the last two financial years, bringing our inventory management back to a regular position and allowing capital in the business to make strategic investments. |
Product Gross Margin (that is to say all sales less material costs and any credit notes and scrap adjustments) reduced from £8.6m in FY 2023 to £8.2m in FY 2024. |
The reduction to Product Gross Margin is down to the reduction in Revenue rather than the reduction in Margin per unit, in fact Product Gross Margin as a percentage of revenue actually increased from 22.0% in FY 2023 to 25.5% in FY 2024. The increase in Product Gross Margin as a percentage of revenue can be attributed to the diversity of the business' product range, and the large SeAH Wind Monopile Factory project, as well as repositioning the business on stock levels in late FY 2023. |
Throughout the high price periods of covid to the post covid market stabilisation, the business continues to invest and innovate its product range, with a large focus on sustainability, whilst also committing to high quality levels of service and development of employees. |
Investment in reducing carbon emissions has been made throughout the year with adding product ranges using fossil free manufacturing and net zero emission steel, along with investment in a battery storage container which ensures self-sufficiency of electricity in case of a grid emergency. |
As of writing this report, the business has made further investment into a new additional flat line machine to support our ever-growing Flat Planet division, as well as releasing new profiles to our product range in the Panoramik profile and Luna Half Round. Further profiles are in the process of being developed and will be marketed throughout FY 2025. |
Firth Steels Limited (Registered number: 01715793) |
Strategic Report |
for the year ended 31 July 2024 |
KEY PERFORMANCE INDICATORS |
The Company's key performance indicators during the year were as follows: |
2024 | 2023 | Change |
Turnover | £32.2m | £39.2m | £(7m | ) |
Gross profit | £5.9m | £8.7m | £(2.8m | ) |
Gross profit margin | 18.3% | 22.3% | 4.0% |
EBITDA | £2.2m | £3.3m | £(1.1m | ) |
Stock turnover (per annum) | 5.1 | 4.9 | 0.2 |
Return on capital employed | 5.6% | 10.4% | 4.8% |
PRINCIPAL RISKS AND UNCERTAINTIES |
General Risks and Uncertainties throughout all Times |
Retaining key staff, exchange rate fluctuations, market risk, legislative and economic risk also remain. Such risks are also common to our competitors. The company, however, has the benefit of continued operational liquidity. |
Credit Risks from Clients in Changing Times |
Loss of business from insolvency of a major customer would affect the short-term performance of the company. The company continues to mitigate this risk by constantly assessing the financial health of its customers and supplying a wide range of diverse products to a wide range of customers. Additionally, the majority of the business' revenue, where possible, is protected by credit insurance. |
An automated credit system is in place which runs from Coface's interface via the General Ledger system and updates our manufacturing system automatically. In normal times we write discretionary credit to attract new, riskier businesses whilst also using insured debt via permanent insured limits or TopLiner Insurance. Again, this is linked with our manufacturing system and automatically updates this live to prevent any manufacturing or delivery errors for credit reasons. |
Having these systems in place has resulted in well run companies that we supply are paying on time and in some cases early in order to free up working capital. |
Towards the end of FY 2023 and throughout FY 2024 we have seen a large decline in appetite for insurers to provide significant cover on large customers, in turn this has meant that the business has taken larger internal risk in discretionary limits in order to keep up supply and maintain levels of business. |
All in all, the Company is in a strong position from a working capital, stock and cash perspective. We keep a vigilant eye on credit and payment - this is vital during this period. |
Global Issues |
Although the Russia-Ukraine war continues to unfold, we have yet to be impacted by this. |
The steel price that seemed to hit extreme record-braking highs and then large drops due to economic sanctions against Russia by the EU seem to have stabilised for the last few months, allowing business to remain back to normal operating levels and decisions to be made on future growth strategies. |
As a business we are yet to see any impact of the Israeli-Palestine conflict, however, we are cautious and managing the working capital to allow for any impact to be managed and mitigated as soon as possible. |
One area of uncertainty that continues to develop daily is Tariffs on steel imposed by the changes made by President Trump. This could potentially cause future uncertainty in the market, with price increases already starting to be made on raw materials. |
Firth Steels Limited (Registered number: 01715793) |
Strategic Report |
for the year ended 31 July 2024 |
In addition to above, the UK Carbon Border Adjustment Mechanism (CBAM) will be implemented by 2027. This involves the UK taking rapid action on industrial decarbonisation to meet net zero. The CBAM liability will lie directly with the importer of the products, but as a business we expect this to impact the price of raw materials greatly, meaning a squeeze on margins or increase on finished goods. |
Stock Levels |
Stock levels at the end of FY 2024 become much more stable as the business decides to zero base their purchasing strategy, allowing capital to flow through the business. |
Record high stock levels at the end of FY 2022 have now been resolved through two years hard work of pushing products through the usual supply chain routes, ensuring the business is in a position to position itself in the best possible way for future growth. |
As well as stock levels reducing to normal pre pandemic levels, we have seen lead times follow this pattern which allows more back to back purchasing, with stock being held at docks easier to be called off as and when required. Having the ability to purchase with this strategy reduces the number of assumptions needed in future purchasing commitments, however some levels of purchasing forecasting is still required in an ever changing market. |
Having been through the last two financial years and managing stock levels, this has allowed the business to review the current position, looking at expected stock level, forecasting future demand and reviewing historic purchasing patterns to ensure a more stable stock holding level at all times. |
One downside of buying short-term however could mean higher cost prices and therefore reduced product margins, but with current remaining high interest rates, the business believes this will be successful purchasing strategy over the coming financial years, allowing current capital to earn good returns. |
Project Slippage or Cancellations |
Project slippage and cancelled products continues to be a primary business concern. This can be due to inflationary pressures and where in less volatile times, any projects slipping can have minimal impact. |
In today's expensive commodity markets, a project date slipping by 2 months can be crippling from a cashflow perspective as contracts from steel manufacturers remain more robust than the contracts that our customers place. Continuous work takes place to lock down sales contracts with this regard, but there remains some risk here. |
GROWTH AND EXPANSION |
Looking at the short term, the company is pushing all of its diverse product range and seems to be benefiting from having a wide range of available products to different market segments. |
The ability to provide built up systems through our Protex ® system, which is a twin skin insulated system, involving liner, 3rd party spacer system, 3rd party insulation layer and our own top sheet in a variety of external coated options, along with standard plastisol options such as F200 gives the customer great choice as to warranty, appearance and availability. |
Due to continuously high interest rates, all of the investment in the past have been good decisions in hindsight, with cost of such large expansions now would be far more expensive in terms of price, but also in terms of borrowings if funding was required. In addition to this, whether due to de-globalisation, the pandemic or Brexit, there is certainly a reduced ability to get a capital plan developed in a timely and proper manner. |
These all create high barriers to entry which can assist any company that has already gained a market share and invest continually in the right direction. |
Over the short to mid-term the business continues to invest heavily in the potential options to de-carbonise the business model, by not only looking at becoming net zero in terms of electricity usage, but also into the ability of supply more eco friendly steel into the building envelope through fossil free and zero emission steels. |
Firth Steels Limited (Registered number: 01715793) |
Strategic Report |
for the year ended 31 July 2024 |
As we are aware the UK Government ambition is to build a zero emission steel market by 2050. As a business we are trying to be ahead of the game and ensure we meet this goal much sooner to bring a sustainable and environmentally friendly option to the construction market. |
The increased need of achieving proper margins on products become necessary as ratios such as ROCE and return on working capital must be looked at, rather than merely the efficiency and margin of turning a product around. High interest rates and high inflation makes terms like "opportunity costs" far more prevalent around the boardroom table. |
Structural floor decking has a mixed orderbook for the next 6 months, however we can see a positive upturn coming here as we move into Half 2 of FY 2025. With potential consolidation in this area of the business giving the possibility to expand our market share could prove an exciting time for the company, ensuring tighter controls and management of the process from roll-forming to installation. |
INVESTMENTS |
The large investment in warehouse safety is prevalent with brand new A-Safe protection barrier installation throughout all our units, ensuring that employee safety is at the top of our list. |
Other investment has been made on our own property in terms of re-cladding the full front and side elevations of two units, to ensure that any visitors can see our great product quality first hand. |
Additional CCTV has been installed on site to increase the level of protection and security, which is in addition to existing CCTV systems that were already in place. |
The state-of-the-art $2.7m rafted roll-forming line from Bradbury, currently manufacturing wall and roof profiles, continues to perform well and the initial issues that were prevalent have been analysed and adjusted accordingly. |
This is the fastest and most automated machine of its type in this country. This has allowed faster production & turnaround, and also more flexible response to an ever-challenging supply chain led market. |
The Company continues to diversify and re-position for growth, by continually investing in new capital machinery and new products and improved ways of manufacturing the current product portfolios. Mostly these are the development of new profiles and also new product built-up systems to bring the Company into new product areas or new market segments, but there is also an element of innovation with the company investing in improvements such as space used, speed of manufacturing, flexibility and reliability. |
Existing product lines given supply problems also need further investment so that we can protect the overall solution, where 3rd party products are not so easy to be controlled either in terms of availability or price. |
The Company and its directors have identified further changes in the building envelope market caused by some government investigations caused by the Grenfell enquiry and has invested in preparation for the potential upsides of this. As a result, more profiles will be brought into the business to ride the change of the market as such. |
At the time of writing, we have released a new profile in the form of Luna HR with a further profile expected to be released within the next 6 months. This will continue to diversify our product range offering and shows continued innovative growth strategies which is being spread throughout the business. |
Firth Steels Limited (Registered number: 01715793) |
Strategic Report |
for the year ended 31 July 2024 |
SECTION 172(1) STATEMENT |
The Board of Directors at Firth Steels Limited have acted in good faith, that would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to the matters set out in S172 (a to f) of the Companies Act 2006. |
a) | The likely consequences of any decision in the long term, |
b) | The interests of the company's employees, |
c) | The need to foster the company's business relationships with suppliers, customers and others, |
d) | The impact of the company's operations on the community and the environment, |
e) | The desirability of the company maintaining a reputation for high standards of business conduct, and |
f) | The need to act fairly as between members of the company. |
Our continued strategy is to provide a long-term beneficial impact to the business and industry by contributing to delivering high quality and reliable products across all of our business divisions and product ranges. |
We regularly communicate with employees to ensure that business strategy and innovation is driven throughout the workforce, through training workshops and our internal ecosystem. Employee wellbeing is a key focus with relative helplines available to support employees throughout the business. |
Business relationships with external shareholders remain critical and we continue to work closely with them to provide a platform to improve financial performance and stability both in the short and long term. This includes customers, in which we keep regular open communications with at all times, offering support where needed as long as this makes commercial sense. Communication with suppliers is also key to ensure stock demands are met with both pricing and lead time requirements. |
As a board we continue to make significant investments in our operations to ensure the continuous improvement in sustainability and reduce our carbon emission footprint with the investment in battery storage technology and electric side loader fleet. |
A key driver for our business is the high standard of both product and customer services we offer, the board lead this with decisions on credit management and investment in machinery to improve our continued high standards. |
The board is clear that good governance and effective communication are essential on a day-to-day basis to deliver our purpose and also to protect the company's positive brand and reputation. |
ON BEHALF OF THE BOARD: |
Firth Steels Limited (Registered number: 01715793) |
Report of the Directors |
for the year ended 31 July 2024 |
The directors present their report with the financial statements of the company for the year ended 31 July 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of manufacturers of profiled metal sheeting and stockholders of spring steel. |
DIVIDENDS |
Interim dividends per share were paid during the year as follows: |
Classification | Per share |
A Ordinary £1 | £94,400 |
B Ordinary £1 | £29,600 |
C Ordinary £1 | £180,000 |
D Ordinary £1 | £96,000 |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 August 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
Firth Steels Limited (Registered number: 01715793) |
Report of the Directors |
for the year ended 31 July 2024 |
STREAMLINED ENERGY AND CARBON REPORTING |
At the end of FY2023 as a business we created a Carbon Commitment Crew, whose purpose is to reduce the carbon footprint of the business, through all available processes, not just limited to the roll forming of steel. We have commenced several initiatives over FY2024 as part of our carbon footprint reduction plan, of which some are mentioned below: |
Renewable Energy |
During FY2024 the business had an historic electricity tariff that used 21% renewable energy, this expired towards the end of the financial year in June 2024. Upon renewal the business has taken the commitment to sign up to a 100% renewable tariff, which commenced on the 1st July 2024. |
Automatic Lighting |
The automatic lighting throughout the offices save energy by ensuring all lights are only in use when required. |
Electric Vehicles |
All Executive and Non-Executive directors drive electric cars to and from work as well as a few other key personnel within the business, these are charged on site using charges that come from supply mixed from a 200KW solar array that has a FIT attached that the company committed to and were supplied at the government rates applied in December 2015. |
Currently 2 out of 8 side loaders are electrical, with the remaining 6 side loaders being replaced early December 2024 to ensure all our side loader fleet are electrical. |
Containerised Battery Pack System |
Investment has been made in a 500KW containerised battery pack system which has arrived, commissioned and also functioning as expected within FY2024. This will bring returns to the business in terms of Solar PV firming and grid resilience. |
GHG emissions and energy usage data |
2024 | 2023 |
Building (tCO2e) | 136.5 | 99.2 |
Electricity (kWh) | 434,232.2 | 394,716.9 |
Associated electricity (tCO2e) | 89.9 | 84.5 |
Natural gas (kWh) | 53,630.4 | 50,514.8 |
Associated gas (tCO2e) | 9.8 | 9.2 |
T&D losses (kWh) | 359,889.4 | 307,761.0 |
T&D losses (tCO2e) | 6.6 | 5.5 |
* Refrigerants (kWh) | 0.0 | 0.0 |
* Refrigerants (tCO2e) | 30.2 | 0.0 |
Waste (tCO2e) | 3.9 | 12.4 |
Water (tCO2e) | 0.4 | 0.2 |
Fleet travel (tCO2e) | 38.0 | 65.3 |
Business travel (tCO2e) | 21.3 | 26.8 |
Paper (tCO2e) | 0.7 | 0.4 |
Total emissions (tCO2e) | 200.8 | 204.3 |
Carbon intensity total per £m turnover | 6.2 | 5.2 |
Firth Steels Limited (Registered number: 01715793) |
Report of the Directors |
for the year ended 31 July 2024 |
Where relevant the NET CV emission factors have been used to calculate the total kWh associated with fuel use. Net CV or lower heating value (LHV) is the useful calorific value in typical real-world conditions. |
Where relevant the tCO2e has been calculated by using the Total Market Based emissions. |
* Note - During FY 2024 our air conditioning unit had a breakdown and therefore the refrigerant was removed to allow a pressure test to be carried out, therefore 15.7kg of R410A was required to bring the system up to full charge. Without this the requirement the business would have reduced Total Emissions(tCO2e) by 33.7 rather than the 3.5 shown above. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 of the profit or loss of the company 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; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | 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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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 company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, SMH Jolliffe Cork Audit Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Firth Steels Limited |
Opinion |
We have audited the financial statements of Firth Steels Limited (the 'company') for the year ended 31 July 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the 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 United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 July 2024 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the 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 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 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 |
Firth Steels Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the 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, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of 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 nine, 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Firth Steels Limited |
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: |
Our approach to identifying and assessing the risks of material misstatements in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- | the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- | we identified the laws and regulations applicable to the company through discussions with the Directors and other informed management which we considered may have a direct material effect on the financial statements or the operations of the company and thereafter, the audit team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- | making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud and; |
- | considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; |
To address the risk of fraud through management bias and override of controls, we: |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | tested journal entries to identify unusual transactions; |
- | assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- | agreeing financial statement disclosures to underlying supporting documentation; |
- | enquiring of management as to actual and potential litigation and claims and reviewing correspondence with HMRC and the company's legal and other professional advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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 |
Firth Steels 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. |
for and on behalf of |
Accountants & Statutory Auditors |
33 George Street |
Wakefield |
West Yorkshire |
WF1 1LX |
Firth Steels Limited (Registered number: 01715793) |
Income Statement |
for the year ended 31 July 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
646,808 | 1,900,403 |
Other operating income |
Movement on provisions | 98,168 | (68,092 | ) |
OPERATING PROFIT | 6 |
Interest receivable and similar income | 7 |
1,192,310 | 2,297,242 |
Gain on revaluation of tangible fixed assets | 130,000 | 130,000 |
1,322,310 | 2,427,242 |
Interest payable and similar expenses | 8 |
PROFIT BEFORE TAXATION |
Tax on profit | 9 |
PROFIT FOR THE FINANCIAL YEAR |
Firth Steels Limited (Registered number: 01715793) |
Other Comprehensive Income |
for the year ended 31 July 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE |
Revaluation of freehold property |
Allocation against accumulated |
impairment brought forward | ( |
) | ( |
) |
Income tax relating to components of other comprehensive |
OTHER COMPREHENSIVE FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Firth Steels Limited (Registered number: 01715793) |
Statement of Financial Position |
31 July 2024 |
2024 | 2023 |
Notes | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
Investments | 12 |
Investment property | 13 |
CURRENT ASSETS |
Stocks | 14 |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 17 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 21 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Share premium | 23 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Firth Steels Limited (Registered number: 01715793) |
Statement of Changes in Equity |
for the year ended 31 July 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 August 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 July 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 July 2024 |
Firth Steels Limited (Registered number: 01715793) |
Statement of Cash Flows |
for the year ended 31 July 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Purchase of fixed asset investments | - | (392,820 | ) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year | ( |
) | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
4,971,775 |
Cash and cash equivalents at end of year | 2 | 2,111,253 | 5,199,922 |
Firth Steels Limited (Registered number: 01715793) |
Notes to the Statement of Cash Flows |
for the year ended 31 July 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Gain on revaluation of fixed assets | (130,000 | ) | (130,000 | ) |
Movement on other provisions | (98,168 | ) | 68,092 |
Finance costs | 56,731 | 128,761 |
Finance income | (130,296 | ) | (47,654 | ) |
2,057,891 | 3,369,347 |
Decrease in stocks |
Decrease in trade and other debtors |
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 July 2024 |
31.7.24 | 1.8.23 |
£ | £ |
Cash and cash equivalents | 2,111,253 | 5,199,922 |
Year ended 31 July 2023 |
31.7.23 | 1.8.22 |
£ | £ |
Cash and cash equivalents | 5,199,922 | 4,971,775 |
Firth Steels Limited (Registered number: 01715793) |
Notes to the Statement of Cash Flows |
for the year ended 31 July 2024 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.8.23 | Cash flow | At 31.7.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 5,199,922 | (3,088,669 | ) | 2,111,253 |
5,199,922 | ( |
) | 2,111,253 |
Debt |
Finance leases | (178,862 | ) | 116,852 | (62,010 | ) |
Debts falling due within 1 year | (285,000 | ) | - | (285,000 | ) |
Debts falling due after 1 year | (641,250 | ) | 285,000 | (356,250 | ) |
(1,105,112 | ) | 401,852 | (703,260 | ) |
Total | 4,094,810 | (2,686,817 | ) | 1,407,993 |
Firth Steels Limited (Registered number: 01715793) |
Notes to the Financial Statements |
for the year ended 31 July 2024 |
1. | STATUTORY INFORMATION |
Firth Steels Limited is a private limited company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page, the registered office is also the company's principal place of business. |
The company's functional and presentation currency is the pound sterling £. All financial information presented has been rounded to the nearest £, unless otherwise stated. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Significant judgements and estimates |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for turnover and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. |
(i) Useful economic lives of tangible assets |
The annual amortisation and depreciation charges for intangible and tangible fixed assets is sensitive to changes in the estimated useful 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. |
(ii) Stock provisions |
In determining the need for the impairment of stock the directors have made significant judgements as to the saleability of the stock that is being held in the company, together with the costs to complete and make that sale and also the cost of storing such a volume of steel and steel based products. The company has a robust impairment procedure which requires that a detailed review of the stock be undertaken at the balance sheet date on a line by line basis to identify the condition of the stock. The level of impairment is then identified by reference to a pre-defined scale. |
(iii) Impairment of debtors |
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. |
(iv) Provisions |
In determining the need for, and value of, provisions the directors have made significant judgements as to the likelihood that the company will be required to transfer economic benefits in order to settle the obligation and also with regards to the estimation of any such obligation. The directors will then review any such provisions at each balance sheet date and determining whether the obligation still exists based on associated activity during the accounting period and also known events after the balance sheet date. |
Firth Steels Limited (Registered number: 01715793) |
Notes to the Financial Statements - continued |
for the year ended 31 July 2024 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from both the sale of goods and from the rendering of services. |
Sale of goods |
Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods has been transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods. |
Rendering of services |
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract cost. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably. |
Tangible fixed assets |
Freehold property | - |
Temporary structure | - |
Leasehold improvements | - |
Plant and machinery | - |
Motor vehicles | - |
Fixed assets are stated at cost, net of depreciation and any provision for impairment with the exception of freehold property which is stated at fair value, net of depreciation and any provision for impairment. |
No depreciation is provided in respect of freehold land. |
Freehold property was revalued on 24 March 2023 by Hanson Chartered Surveyors on the basis of its fair value for existing use and the directors are of the opinion that this valuation reflects the fair value as at the Balance Sheet date. |
Government grants |
Grants received under the Business Growth Programme are initially recorded as deferred government grants and then credited to the profit and loss account over the useful economic life of the asset to which they relate. |
Investments in subsidiaries |
Investments in associated undertakings are initially recorded at cost with consideration taken for any diminution in value which is expected to be permanent. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Fair value is estimated by obtaining regular third party valuations which are assessed by the directors in intervening periods based on similar properties in the local area. |
Firth Steels Limited (Registered number: 01715793) |
Notes to the Financial Statements - continued |
for the year ended 31 July 2024 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are stated at the lower of cost, using the first in first out method, and selling price less costs to complete and sell. |
The cost of finished goods and work in progress comprises direct material and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stock to their present location and condition. At each balance sheet date stocks are assessed for impairment. If any such impairment is identified by the directors, the carrying value is reduced to its selling price less costs to complete and sell. This impairment loss is recognised in profit or loss. |
Financial instruments |
The company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments. |
Financial assets |
Basic financial assets, including trade and other debtors and 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. |
The company has no 'Other financial assets'. |
Financial assets are derecognised when (a) the contractual rights to the cashflow from the asset expire or are settled or (b) substantially all the risks and rewards of ownership of the asset are transferred to another party or (c) control of 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. |
Financial liabilities |
Basic financial liabilities, including trade and other creditors and hire purchase contracts, 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. |
The company has no 'Other financial liabilities'. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet 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 profit. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Pension costs and other post-retirement benefits |
The company administers a stakeholder pension scheme on behalf of its employees and also makes employer contributions into the directors' personal pension schemes. Contributions payable to these pension schemes are charged to the profit and loss account in the period to which they relate. |
Firth Steels Limited (Registered number: 01715793) |
Notes to the Financial Statements - continued |
for the year ended 31 July 2024 |
2. | ACCOUNTING POLICIES - continued |
Royalties |
Royalties payable are recognised in the profit and loss account based on the sale of products arising during each accounting period. |
Provisions |
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in order the settle the obligation which can be estimated reliably. Provisions are recognised as a liability within the Statement of Financial Position and the amount of the provision as an expense within the Income Statement. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in the Income Statement unless the provision was originally recognised as part of the cost of an asset. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom | 31,731,869 | 38,563,971 |
Europe | 215,066 | 254,174 |
Rest of World | 272,097 | 427,693 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Production staff | 30 | 31 |
Administration staff | 26 | 25 |
Firth Steels Limited (Registered number: 01715793) |
Notes to the Financial Statements - continued |
for the year ended 31 July 2024 |
5. | DIRECTORS' EMOLUMENTS |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
Non-audit services |
7. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2024 | 2023 |
£ | £ |
Deposit account interest |
Interest receivable on corporation tax |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest |
Leasing interest |
Interest on directors loan account |
Hire purchase |
Firth Steels Limited (Registered number: 01715793) |
Notes to the Financial Statements - continued |
for the year ended 31 July 2024 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Under/over provision of corporation tax in prior year | 964 | (234,900 | ) |
Total current tax |
Deferred tax |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances |
Adjustments to tax charge in respect of previous periods | ( |
) |
Other temporary timing differences |
Movement in general provision | ( |
) |
Adjustment to deferred tax in respect of previous period |
Total tax charge | 356,961 | 265,352 |
Tax effects relating to effects of other comprehensive income |
2024 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of freehold property | - | 130,000 |
Allocation against accumulated |
impairment brought forward | ( |
) | - | (130,000 | ) |
- | - | - |
Firth Steels Limited (Registered number: 01715793) |
Notes to the Financial Statements - continued |
for the year ended 31 July 2024 |
9. | TAXATION - continued |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of freehold property | - | 130,000 |
Allocation against accumulated |
impairment brought forward | ( |
) | - | (130,000 | ) |
- | - | - |
10. | DIVIDENDS |
2024 | 2023 |
£ | £ |
A Ordinary share of £1 |
Interim |
B Ordinary share of £1 |
Interim |
C Ordinary shares of £1 each |
Interim |
D Ordinary shares of £1 each |
Interim |
11. | TANGIBLE FIXED ASSETS |
Freehold | Temporary | Leasehold |
property | structure | improvements |
£ | £ | £ |
COST OR VALUATION |
At 1 August 2023 |
Additions |
Disposals |
At 31 July 2024 |
DEPRECIATION |
At 1 August 2023 |
Charge for year |
Eliminated on disposal |
Revaluation adjustments | ( |
) |
At 31 July 2024 |
NET BOOK VALUE |
At 31 July 2024 |
At 31 July 2023 |
Firth Steels Limited (Registered number: 01715793) |
Notes to the Financial Statements - continued |
for the year ended 31 July 2024 |
11. | TANGIBLE FIXED ASSETS - continued |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 August 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 July 2024 |
DEPRECIATION |
At 1 August 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
Revaluation adjustments | ( |
) |
At 31 July 2024 |
NET BOOK VALUE |
At 31 July 2024 |
At 31 July 2023 |
Freehold property was revalued on 24 March 2023 by Hanson Chartered Surveyors on the basis of its fair value for existing use. The directors believe that the fair value of this property remains the same at the balance sheet date, based on current use and market conditions. |
The original cost of the freehold property was £7,136,288. |
Firth Steels Limited (Registered number: 01715793) |
Notes to the Financial Statements - continued |
for the year ended 31 July 2024 |
11. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 August 2023 |
Disposals | ( |
) |
At 31 July 2024 |
DEPRECIATION |
At 1 August 2023 |
Charge for year |
Eliminated on disposal | ( |
) |
At 31 July 2024 |
NET BOOK VALUE |
At 31 July 2024 |
At 31 July 2023 |
12. | FIXED ASSET INVESTMENTS |
Investment |
in |
associated |
undertakings |
£ |
COST |
At 1 August 2023 |
and 31 July 2024 |
NET BOOK VALUE |
At 31 July 2024 |
At 31 July 2023 |
The investment in associated undertaking relates to a 50% members share in SMD Asia LLP, whose registered office is at Calderbank, River Street, Brighouse, West Yorkshire, HD6 1LU. |
On 27 December 2024, SMD Asia LLP sold its 33.3% investment in JSW Structural Metal Decking Ltd. Following this disposal, it is the intention that the net proceeds will be distributed to members and an application made to strike off SMD Asia LLP from the Register. |
Firth Steels Limited (Registered number: 01715793) |
Notes to the Financial Statements - continued |
for the year ended 31 July 2024 |
13. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 August 2023 |
and 31 July 2024 |
NET BOOK VALUE |
At 31 July 2024 |
At 31 July 2023 |
The investment property was revalued by Hanson Chartered Surveyors on 24 March 2023 on the basis of fair value. The directors believe that the fair value of this property remains the same at the balance sheet date, based on current use and market conditions. |
The original cost of the investment property was £2,442,856. |
14. | STOCKS |
2024 | 2023 |
£ | £ |
Finished goods & work in progress |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Amounts owed by related undertakings | 2,652,923 | 2,067,678 |
Other debtors |
Tax |
VAT |
Prepayments and accrued income |
Firth Steels Limited (Registered number: 01715793) |
Notes to the Financial Statements - continued |
for the year ended 31 July 2024 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 18) |
Hire purchase contracts (see note 19) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | - | 912,944 |
Directors current accounts | 141,683 | 893,078 |
Accruals and deferred income |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans (see note 18) |
Hire purchase contracts (see note 19) |
Deferred government grants |
18. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Firth Steels Limited (Registered number: 01715793) |
Notes to the Financial Statements - continued |
for the year ended 31 July 2024 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Company as a lessee |
2024 | 2023 |
£ | £ |
Within one year | 72,500 | 72,500 |
Between one and five years | 72,500 | 145,000 |
145,000 | 217,500 |
Company as lessor |
The company has entered into a lease in respect of its investment property. The contractual term is 10 years with a review date and break clause at the 5th anniversary of the lease. At 31 July 2024, the minimum rental income receivable under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year | 250,000 | 250,000 |
Between one and five years | 208,333 | 458,333 |
458,333 | 708,333 |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Bank loans |
Hire purchase contracts | 62,010 | 178,862 |
The bank loan is secured by way of a fixed charge over the assets forming the High Speed Panel Line. |
Obligations under hire purchases are secured against the assets to which they relate. |
Firth Steels Limited (Registered number: 01715793) |
Notes to the Financial Statements - continued |
for the year ended 31 July 2024 |
21. | PROVISIONS FOR LIABILITIES |
Deferred | Heldover | Other |
Tax | Gain | Provisions | Total |
£ | £ | £ | £ |
At 1 August 2023 | 584,684 | 648,445 | 2,762,893 | 3,996,022 |
Accelerated capital allowances | 50,415 | - | - | 50,415 |
Additions - recognised in profit or loss | - | - | 221,552 | 221,552 |
Utilised | - | - | (319,720) | (319,720) |
At 31 July 2024 | 640,099 | 648,445 | 2,664,725 | 3,948,269 |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 90,000 | 90,000 |
A Ordinary | £1 | 1 | 1 |
B Ordinary | £1 | 1 | 1 |
C Ordinary | £1 | 3 | 3 |
D Ordinary | £1 | 2 | 2 |
90,007 | 90,007 |
23. | RESERVES |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 August 2023 | 18,512,060 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 July 2024 | 19,020,678 |
Included within retained earnings at 31 July 2024 is an amount of £1,324,485 which is non-distributable (2023: £1,324,485). This relates to an accumulated increase in the fair value of the investment properties, net of deferred tax, held by the company. |
24. | OFF-BALANCE SHEET ARRANGEMENTS |
At 31 July 2024 Firth Steels Limited had arrangements with our suppliers in which a rolling credit and storage facility was in place to assist with working capital fluctuations, and longer lead times from overseas. The value of steel held under this arrangement at 31 July 2024 was £Nil (2023: £Nil). |
Firth Steels Limited (Registered number: 01715793) |
Notes to the Financial Statements - continued |
for the year ended 31 July 2024 |
25. | RELATED PARTY DISCLOSURES |
The transactions entered in to during the year, together with the amounts receivable/(payable), in respect of companies in which the directors have a participating interest are as follows: |
2024 | 2023 |
£ | £ |
Sales to related undertakings | 9,648,983 | 9,808,629 |
Purchases from related undertakings | (16,286 | ) | (20,539 | ) |
Amounts due from related undertakings | 2,652,923 | 2,067,678 |
26. | POST BALANCE SHEET EVENTS |
On 27 December 2024, the company's associated undertaking, SMD Asia LLP sold its 33.3% investment in JSW Structural Metal Decking Ltd. Following this disposal, it is the intention that the net proceeds will be distributed to members and an application made to strike off SMD Asia LLP (no. OC346082) from the Register. |
On 28 October 2024, the company acquired 50% of the issued share capital of SMD Construction Group Ltd (no. 08807649), resulting in Firth Steels Limited having significant control by virtue of its shareholding and that of Mr J T Firth. |
On 28 October 2024, the company acquired 50% of the issued share capital of SMD Stockyards Limited (no. 08324990), with a further 50% being acquired on 1 December 2024. From 1 December 2024, SMD Stockyards Limited became a wholly owned subsidiary of Firth Steels Limited. |
27. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is |