Registered number:
FOR THE YEAR ENDED 30 APRIL 2024
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
COMPANY INFORMATION
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
CONTENTS
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
The Directors present the Strategic Report together with the Directors report and the audited financial statements of Nasmyth Bulwell Limited (''Bulwell'' or ''Company'') for the year ended 30 April 2024.
The Company is a wholly owned subsidiary of Nasmyth Group Limited (formerly W5SD Limited) which, together with other subsidiaries, form the ''Group". The principal activity of the Company is the manufacture of precision machined components and assembly of parts for the aerospace and defence industries.
In order to deliver the Group Strategy, the Company is managed internally as Nasmyth Bulwell being a significant part of the Group’s machining capability.
Nasmyth Bulwell is a supplier of machined components with extensive machining capabilities, complemented by Heat Treatment, Thread Rolling, Non Destructive Testing in the UK and access to Nasmyth India for low cost machining support. This offering means that the business is in a strong position with multiple blue chip customers.
Holding certifications to AS9100 and ISO14001 along with NADCAP approvals for NDT and Heat Treatment allows the business to provide end to end solutions to it’s customers.
Long term strategic relationships key customers to provide both Original Equipment Manufacture ("OEM") and Maintenance Repair and Overhaul ("MRO") product means the business is well positioned to benefit from the return of air passenger traffic to 9 trillion RPK per annum.
Rcapital acquired the Group in February 2022 at which point it was heavily loss making and showing signs of financial distress, with a significant and immediate funding requirement over and above its existing facilities. Prior to government responses to the COVID 19 pandemic the Group was generating strong EBITDA margins in line with typical industry margins on revenue of £80 million. Following Rcapital’s investment it was immediately clear that the Group was urgently in need of a deep operational turnaround in addition to a financial restructuring.
Alongside the financial turnaround, the Company has also made significant changes to improve operational performance and productivity and position the company better to deliver the increase in demand for aero engine and aircraft components. This operational turnaround has continued into FY 24/25 with the new focused management team, process improvement activities, additional capacity and increased engagement with end customers.
Nasmyth Bulwell, together with its fellow Group companies, is now back on a significant growth track to achieving levels of financial and operational performance that will be surpass 2019 pre Covid levels.
Historical Market Trends
Commercial Aerospace
The past five years have been a challenging time for the commercial aerospace industry with passenger numbers greatly reduced during the Covid period 2020-2021 with recovery to pre covid build rates planned during 2025/26 in respect of long haul travel.
Nasmyth Bulwell is more sensitive to long range aircraft than short haul, meaning that recovery to 2019 rates of production is not expected to be achieved until 2026. Production volumes have been increasing during 2024 and will continue into 2025 but this positive story has been tempered by significant inflationary pressures on wage rates, utilities and raw material costs.
Page 1
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
The graph below shows the expected trajectory pre Covid, 2023 expectations and current expactation:
Supporting this the MRO market is in greater demand and OEM’s efforts to increase narrow and wide body production and deliveries are going some way to aid the market recovery in the coming months.
Global Passenger Traffic Outlook:
∙According to the International Air Transport Association (IATA), global passenger traffic is expected to return to pre-pandemic levels by 2025 and continue growing thereafter.
∙2025–2032 Growth Forecast: IATA forecasts that passenger traffic will grow at an average rate of 3-4% annually over the next decade, reaching approximately 100% of pre-pandemic levels by 2025. By 2032, global air travel could see around 9-10 billion passengers, nearly doubling the number from 2019 (about 4.5 billion passengers).
∙The Asia-Pacific region will likely see the fastest growth due to expanding middle-class populations and increased demand for air travel in markets like China and India.
Page 2
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
The financial results of the Company are presented on page 12.
The Company has reported turnover for the year of £21,459,000 (2023: £16,534,000), gross profit margin of 9.3% (2023: 6.7%) and an EBITDA of £761,000 (2023: £224,000).
Administrative costs for the period amounted to £1,793,000 (2023: £1,840,000). This figure includes the Company's contribution to Group management charges. Included in operating profit are exceptional items which total £39,000 (2023: £14,000). The Company reports a loss before tax of £589,000 (2023: £825,000).
The Company reported EBITDA of £761,000 in FY23/24 a significant improvement on the prior year as the aerospace market continues to recover from the challenges posed by the COVID pandemic. Following the successful acquisition of the group by Rcapital in February 2022, the company’s order book has continued to grow and stands a third higher than at the time of acquisition. The focus on operational improvements, improving contractual arrangements and robust action around costs lead to the Group returning to EBITDA profitability in H2 22/23 and continued EBITDA profitability in FY 23/24.
At the same time key environmental initiatives are driving the industry to evolve with a focus on:
∙Net Zero Carbon emissions
∙Sustainable aviation fuel
∙Development of Electric Aircraft, and
∙Generative AI (Gen AI) will become of benefit to companies over the next 3 years and is being explored by companies to improve efficiency and enhance worker experiences across functions.
The Group considers that it is well positioned to support OEM’s and engine manufacturers in achieving the industries net carbon zero commitments.
Page 3
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
The Nasmyth Board assesses and manages any risk to the Group as part of the monthly Group Board meeting.
Where a risk arises, it is dealt with quickly and appropriately with the use of appropriate specialists and advisors to the Board. Risks at a Group level are commonly strategic rather than operational and the primary purpose of the Board review is to lead and to ensure that solutions and actions are embedded in the culture within the business.
This Board process is supported through the senior management and operating site management discussing risks as part of the annual budget process and are subject to further frequent management and Board level reviews. These are followed up periodically throughout the year and always as part of the regular formal forecast reviews. The management team at each business and operating site is responsible for implementing and controlling risk mitigation and its effectiveness on a day to day basis.
In common with many in the sector, the main risk impacting on financial and operational performance in FY23/24 was material availability and cost inflation. The majority of the orderbook is on long term contracts with raw material inflation pass through agreements and AWE indexation on the added value portion of material. The cost of labour increases due to wage inflation and increased employer NI costs are expected to be circa 4% year on year and the company has implemented productivity improvement plans which will mitigate the additional costs.
The geo-political risks such as Brexit and Tariffs and their impacts on the UK and global economy and ways of working are assessed, quantified, and mitigated where possible; however, the Group has assessed the spread of its customer base, diversity of products and technologies, and the supply chain, and the Group does not see any immediate or significant risks or changes to its operation as a result of identified geo-political factors.
The customer concentration risk is expected to be mitigated through the increased forecast in military spending that presents an opportunity in terms of the current customer base and potential new customers who need to expand their military supply chains.
The Group has achieved Cyber Essentials and Cyber Essentials Plus certification in 2024. The Board recognise the importance of this for its own resilience and the increasing requirements of its customers globally and the ongoing initiatives and controls reflect the increased expectation of the high standards necessary to be a growing Aerospace and Defence sector supplier.
The Board will continue to monitor potential risks and events and has increased its engagement with key stakeholders to further enhance its risk mitigation planning and responsiveness.
Market projections for the Group’s core Aerospace, Defence and Space end markets continue to suggest an ongoing year on year recovery to pre COVID growth trends out to the end of the decade. The continued rebound in travel solidifies the near term growth trend and the Group is investing in capacity to support average growth in output of around 20% year on year between 2024 and 2027.
Following the acquisition by RCapital in February 2022, the Group has emerged from its post acquisition restructuring in a stronger position and is now focused on outgrowing its end markets. Management has simplified its strategy to focus on scaleable capabilities in its core Aerospace and Defence sectors, given the broad Group capabilities that have been developed to date.
The directors of the Group are committed to the development, growth and value creation of the group both through internal and external opportunities. A strong new business pipeline and the strength of the Group’s reputation for engineering excellence has already positioned the group for significant growth over the next three years. The Board is seeking to deliver balanced and profitable growth, with a focus on deepening the Group’s traditional strengths in legacy aero engine parts and systems manufacturing, while adding scale in defence and current OE aircraft production programs.
Page 4
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
The Group has been able to maintain and increase its investments in establishing manufacturing capability in Asia, with its Indian facility in Bengaluru achieving certifications for manufacturing in 2022 23. This will be a key growth capability for increasing production capacity for UK Group companies as well as offering new capabilities to the growing aerospace manufacturing sector in India.
As at 30 April 2024, the Company was a subsidiary of Nasmyth Group Limited. As a consequence of the impacts of COVID 19 on the aerospace market, Nasmyth Group Limited and its subsidiary companies experienced a significant reduction in sales, profits and cashflow from operating activities and its directors identified that this would create financial difficulties that would affect the ability of Nasmyth Group Limited to continue as a going concern, with knock on effects to its subsidiary companies. On 5th May 2023 the Group was restructured and companies that were previously subsidiaries of Nasmyth Group Limited (together the “Group”) became subsidiaries of W5SD Limited (now renamed as Nasmyth Group Limited). Additional working capital facilities were subsequently provided to the Group and the repayment terms on facilities already in place were extended to support its working capital requirements.
The Board of Directors of the Company and the Group have undertaken an assessment of the ability of the Company and the Group to continue in operation and to meet their liabilities as they fall due. In making this assessment, the Directors have considered trading and cashflow forecasts which reflect the latest market intelligence and customer long term supply agreements, supply schedules and order books. The directors have concluded that the new working capital facilities, which include undrawn headroom, will provide the Company and the Group with sufficient funds to enable them to meet their obligations as they fall due for a period of at least 12 months from the date of approval of these financial statements, and have accordingly concluded that it is appropriate to prepare these financial statements on a going concern basis.
This report was approved by the board and signed on its behalf.
Page 5
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
The directors present their report and the financial statements for the year ended 30 April 2024.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to 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.
The loss for the year, after taxation, amounted to £575,000 (2023 - loss £783,000).
The directors do not recommend the payment of a dividend.
The directors who served during the year were:
Since the year end the following directors have been appointed: J Rooney (appointed 16 September 2024) J A Storer (appointed 16 September 2024)
Research and development expenditure is expensed as it is incurred. The Company incurred expenditure of £150,000 (2023: £274,000) during the year.
Page 6
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
The directors have chosen to set out in the strategic report information required to be stated in the directors report including a review of the business and principal risks and uncertainties.
An indication of likely future developments in the business and significant events which have occurred since the end of the financial year have been included in the strategic report.
Details of post balance sheet events affecting the Company are disclosed in note 30.
The auditors, PKF Smith Cooper Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
Page 7
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NASMYTH BULWELL LIMITED
We have audited the financial statements of Nasmyth Bulwell Limited (the 'Company') for the year ended 30 April 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 United Kingdom, including the Financial Reporting Council'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.
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.
Page 8
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NASMYTH BULWELL LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
Page 9
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NASMYTH BULWELL LIMITED (CONTINUED)
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 Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Based on our understanding of the Company and industry, key laws and regulations that we identified included:
∙Companies Act;
∙Tax legislation; and
∙Health and safety and employment legislation.
We identified that the principal risk of fraud or non-compliance with laws and regulations related to:
∙Management bias in respect of accounting estimates and judgements made;
∙Management override of controls; and
∙Posting of unusual journals or transactions.
We focussed on those areas that could give rise to a material misstatement in the Company's financial statements. Our procedures included, but were not limited to:
∙Enquiry of management and those charged with governance around actual and potential litigation and claims, including instances of non-compliance with laws, regulations and fraud;
∙Reviewing minutes of meetings of those charged with governance where available;
∙Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and fraud;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and
∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias, in particular the valuation of stock.
It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operating's are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
Page 10
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NASMYTH BULWELL LIMITED (CONTINUED)
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 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 Auditors' report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditors
Cornerblock
2 Cornwall Street
West Midlands
B3 2DX
Page 11
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
Page 12
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
REGISTERED NUMBER: 00568879
BALANCE SHEET
AS AT 30 APRIL 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 15 to 29 form part of these financial statements.
Page 13
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
Page 14
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
Nasmyth Bulwell Limited is a private company, limited by shares, registered in England, United Kingdom. The company's registration number and registered office address can be found on the company information page.
The principal place of business is Wharf Road Industrial Estate, Pinxton, Nottinghamshire, NG16 6LE.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The presentation currency of the financial statements is Pound Sterling (£) and amounts have been presented in round thousands (£'000).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Nasmyth Group Limited (formerly W5SD Limited) as at 30 April 2024 and these financial statements may be obtained from Nasmyth House, Coventry Road, Exhall, Coventry, CV7 9FT.
The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.
Page 15
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
As at 30 April 2024, the Company was a subsidiary of Nasmyth Group Limited. As a consequence of the impacts of COVID 19 on the aerospace market, Nasmyth Group Limited and its subsidiary companies experienced a significant reduction in sales, profits and cashflow from operating activities and its directors identified that this would create financial difficulties that would affect the ability of Nasmyth Group Limited to continue as a going concern, with knock on effects to its subsidiary companies. On 5th May 2023 the Group was restructured and companies that were previously subsidiaries of Nasmyth Group Limited (together the “Group”) became subsidiaries of W5SD Limited (now renamed as Nasmyth Group Limited). Additional working capital facilities were subsequently provided to the Group and the repayment terms on facilities already in place were extended to support its working capital requirements.
The Board of Directors of the Company and the Group have undertaken an assessment of the ability of the Company and the Group to continue in operation and to meet their liabilities as they fall due. In making this assessment, the Directors have considered trading and cashflow forecasts which reflect the latest market intelligence and customer long term supply agreements, supply schedules and order books. The directors have concluded that the new working capital facilities, which include undrawn headroom, will provide the Company and the Group with sufficient funds to enable them to meet their obligations as they fall due for a period of at least 12 months from the date of approval of these financial statements, and have accordingly concluded that it is appropriate to prepare these financial statements on a going concern basis.
Transactions in foreign currencies are translated to the company's functional currency at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the foreign exchange rate ruling at the balance sheet date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are retranslated to the functional currency at foreign exchange rates ruling at dates the fair value was determined. Foreign currency differences arising on translation are recognised in the Statement of Comprehensive Income.
Page 16
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
On occasions cash is received in advance of some work performed to compensate the Company for costs incurred in design and development activities. Where such amounts are received and the risks and rewards of ownership over development assets are not deemed to have transferred, amounts are deferred onto the balance sheet and taken to turnover as the Company performs its contractual obligations either on delivery or product milestones.
Page 17
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price of the asset and the cost attributable to bringing the asset to its working condition for its intended use.
Where parts of an item of tangible fixed assets have different useful lives, they are accounted for as separate items of tangible fixed assets. Leases in which the Company assumes substantially all the risks and rewards of ownership of the leased asset are classified as finance leases. All other assets are classified as operating leases. Leased assets acquired by way of finance lease are stated on initial recognition at an amount equal to the lower of their fair value and the present value of the minimum lease payments at the inception of the lease, including any incremental costs directly attributable to negotiating and arranging the lease. At initial recognition a finance lease liability is recognised equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments. The present value of the minimum lease payments is calculated using the interest rate implicit in the lease. Lease payments are charged to the Statement of Comprehensive Income and statement of other comprehensive income over the period of the lease. All other leases are regarded as operating leases and payments made under them are charged to the Statement of Comprehensive Income and other comprehensive income on a straight-line basis over the lease term. The company assesses at each reporting date whether tangible fixed assets (including those leased under finance leases) are impaired.
Page 18
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
The estimated useful lives are as follows:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
A defined contribution plan is a post-employment benefit plan under which the company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the Statement of Comprehensive Income in the periods during which services are rendered by employees.
Page 19
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the Company date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. becomes aware of the obligation, and are measured at the best estimate at the balance sheet
When payments are eventually made, they are charged to the provision carried in the Balance sheet.
(i) Trade and other debtors and creditors
Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Trade and other creditors are recognised initially at the transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if the payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument. (ii) Interest-bearing borrowings classified as basic financial instruments Interest-bearing borrowings are recognised initially at the present value of future payments, discounted at a market rate of interest. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method, less any impairment losses. Stocks In determining the cost of stocks, the directors have to make judgements to arrive at cost and net realisable value. Determining cost requires judgement as to the value of labour and overheads applied to stocks. Determining the net realisable value of the products held requires judgement to be applied to determine the likely saleability of the product and the potential price that can be achieved. In arriving at any provisions for net realisable value the directors take into account the age, condition and quality of the product stocked and the recent trend in sales. With the exception of the critical judgements and key sources of estimation described above, the directors consider that there are no other significant judgements or estimates in the preparation of these financial statements.
Page 20
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
The whole of the turnover is attributable to the one principal activity of the company.
Analysis of turnover by geographical market is given below:
Page 21
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
Page 22
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
There were no factors that may affect future tax charges.
Page 23
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
Page 24
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
Page 25
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
Page 26
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
Page 27
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
Profit and loss account
Guarantees
The Company has given cross guarantees in respect of bank loans of group companies amounting to £12,237,000 (2023: £10,377,000). The Company has given a guarantee in respect of other loans of a fellow subsidiary undertaking amounting to £14,896,000 (2023: £7,500,000).
The Company operates a defined contribution pension. The pension cost charge for the year represents contributions payable by the Company to the scheme and amounted to £199,000 (2023: £198,000).
There were outstanding contributions of £50,000 (2023: £35,000) at the end of the financial year. These are included in creditors and have been settled since the year end.
Page 28
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NASMYTH BULWELL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
During the year key management personnel were considered to be the directors of the Company only. The directors of the Company are not remunerated by this Company and are remunerated by the parent company, Nasmyth Group Limited (formerly W5SD Limited).
The ultimate parent company and controlling party is Nasmyth Group Limited (formerly W5SD Limited). The registered office address is 4th Floor, 24 Old Bond Street, London, W1S 4AW.
The smallest and largest group, in which the results of the Company are consolidated, is that headed by Nasmyth Group Limited (formerly W5SD Limited), a company incorporated in England, United Kingdom. The consolidated financial statements may be obtained from its registered office address, 4th Floor, 24 Old Bond Street, London, W1S 4AW.
Page 29
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|