Company registration number 01743426 (England and Wales)
VANGUARD FOUNDRY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
VANGUARD FOUNDRY LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
VANGUARD FOUNDRY LIMITED
COMPANY INFORMATION
Directors
Mr K Hopkins
Mr P Kendrick
Company number
01743426
Registered office
Bott Lane
Lye
Stourbridge
West Midlands
United Kingdom
DY9 7AW
Auditor
BK Plus Audit Limited
Azzurri House
Walsall Road
Aldridge
Walsall
WS9 0RB
VANGUARD FOUNDRY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

The directors present the strategic report for the year ended 30 September 2024.

Review of the business

During the financial year of 2024 Vanguard Foundry Limited has increased its total sales by 15% from £11,162,784 in 2023 to £12,850,103 in 2024. This is further compounded by an increase in gross profit percentage by 3% from 20% in 2022 to 23% in 2024.

 

An increase in gross profit with a comparable level of expenses has seen an increase in overall profits from £314,288 in 2023 to £672,180 in 2024.

Principal risks and uncertainties

The following areas are deemed to cover the principal risks for the coming year;

 

New competitors are entering the market overseas and in the UK

There is always a risk of losing market share through new competitors in the market; however Vanguard Foundry Limited hopes to negate this with its experience and expertise in the field.

 

A rise in metal prices

A sudden rise in costs is a risk to the business however as this would affect all within the industry the risk is the same to all and unless competitors are willing to cut margins this could be corrected through an increase in price.

 

Current debtors repayments

With the increase of sales comes the risk of increased trade debtors and with increased inflations and costs within the UK there will always be a risk of the recovery of these debts.

Development and performance

Vanguard Foundry Limited will continue to use its experience and expertise to produce high quality products and will use this method to continue its increased growth in recent years. Further accepting and utilising the advancement in technology is at the forefront in assisting with capacity with the increased workload.

Key performance indicators

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

 

 

Unit

2024

2023

Turnover

£

12,850,103

11,162,784

Gross Profit

£

2,989,841

2,190,211

Profit before tax

£

672,180

314,288

 

 

On behalf of the board

Mr K Hopkins
Director
23 May 2025
VANGUARD FOUNDRY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -

The directors present their annual report and financial statements for the year ended 30 September 2024.

Principal activities

The principal activity of the company continued to be that of manufacturing high quality, technically challenging stainless steel & iron castings.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £29,888. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr B P Higgins
(Resigned 29 October 2024)
Mr K Hopkins
Mr P Kendrick
Auditor

In accordance with the company's articles, a resolution proposing that BK Plus Audit Limited be reappointed as auditor of the company will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr K Hopkins
Mr P Kendrick
Director
Director
23 May 2025
VANGUARD FOUNDRY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

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

In preparing these financial statements, the directors are required to:

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.

VANGUARD FOUNDRY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF VANGUARD FOUNDRY LIMITED
- 4 -
Opinion

We have audited the financial statements of Vanguard Foundry Limited (the 'company') for the year ended 30 September 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

VANGUARD FOUNDRY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VANGUARD FOUNDRY LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

 

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.

 

From the preliminary stages of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of audit procedures to mitigate those risks; ensuring that the audit evidence obtained is sufficient and appropriate to support our opinion.

 

In response to the risks identified, specific to this entity, we designed procedures which included, but were not limited to:

 

 

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

VANGUARD FOUNDRY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VANGUARD FOUNDRY LIMITED
- 6 -

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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Christopher Hession C.A.
Senior Statutory Auditor
For and on behalf of BK Plus Audit Limited
23 May 2025
Statutory Auditor
Azzurri House
Walsall Road
Aldridge
Walsall
WS9 0RB
VANGUARD FOUNDRY LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
12,850,103
11,162,784
Cost of sales
(9,860,262)
(8,972,573)
Gross profit
2,989,841
2,190,211
Administrative expenses
(2,271,470)
(1,965,624)
Other operating income
3,215
111,914
Operating profit
4
721,586
336,501
Interest receivable and similar income
7
11
371
Interest payable and similar expenses
8
(49,417)
(22,584)
Profit before taxation
672,180
314,288
Tax on profit
9
144,696
-
0
Profit for the financial year
816,876
314,288

The profit and loss account has been prepared on the basis that all operations are continuing operations.

VANGUARD FOUNDRY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
£
£
Profit for the year
816,876
314,288
Other comprehensive income
-
-
Total comprehensive income for the year
816,876
314,288
VANGUARD FOUNDRY LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,262,414
874,543
Current assets
Stocks
12
1,036,535
934,282
Debtors
13
2,737,354
1,964,617
Cash at bank and in hand
64,788
61,223
3,838,677
2,960,122
Creditors: amounts falling due within one year
14
(2,882,891)
(2,468,833)
Net current assets
955,786
491,289
Total assets less current liabilities
2,218,200
1,365,832
Creditors: amounts falling due after more than one year
17
(286,937)
(221,208)
Government grants
19
-
0
(349)
Net assets
1,931,263
1,144,275
Capital and reserves
Called up share capital
21
39,850
39,850
Capital redemption reserve
5,150
5,150
Profit and loss reserves
1,886,263
1,099,275
Total equity
1,931,263
1,144,275

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 23 May 2025 and are signed on its behalf by:
Mr K Hopkins
Mr P  Kendrick
Director
Director
Company registration number 01743426 (England and Wales)
VANGUARD FOUNDRY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2022
39,850
5,150
800,927
845,927
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
314,288
314,288
Dividends
10
-
-
(15,940)
(15,940)
Balance at 30 September 2023
39,850
5,150
1,099,275
1,144,275
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
816,876
816,876
Dividends
10
-
-
(29,888)
(29,888)
Balance at 30 September 2024
39,850
5,150
1,886,263
1,931,263
VANGUARD FOUNDRY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
555,262
257,486
Interest paid
(49,417)
(22,584)
Income taxes refunded
-
0
225,935
Net cash inflow from operating activities
505,845
460,837
Investing activities
Purchase of tangible fixed assets
(601,986)
(554,820)
Proceeds from disposal of tangible fixed assets
6,000
-
0
Interest received
11
371
Net cash used in investing activities
(595,975)
(554,449)
Financing activities
Repayment of bank loans
-
0
(197,917)
Payment of finance leases obligations
123,388
257,790
Dividends paid
(29,888)
(15,940)
Net cash generated from financing activities
93,500
43,933
Net increase/(decrease) in cash and cash equivalents
3,370
(49,679)
Cash and cash equivalents at beginning of year
61,223
110,902
Cash and cash equivalents at end of year
64,593
61,223
Relating to:
Cash at bank and in hand
64,788
61,223
Bank overdrafts included in creditors payable within one year
(195)
-
0
VANGUARD FOUNDRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
1
Accounting policies
Company information

Vanguard Foundry Limited is a private company limited by shares incorporated in England and Wales. The registered office is Bott Lane, Lye, Stourbridge, West Midlands, United Kingdom, DY9 7AW.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention.The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
5% straight line
Leasehold land and buildings
Straight line over 8 years
Plant and equipment
10% and 20% straight line
Computers
33% straight line
Motor vehicles
33.3% straight line

Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

VANGUARD FOUNDRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

VANGUARD FOUNDRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

VANGUARD FOUNDRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

VANGUARD FOUNDRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.13
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Work in progress

WIP has its total estimated to be 80% of its original value. This is done as all of the WIP is at varying levels between the earliest stages of around 55% and the almost final stage of 95%; the average of this after years of experience is estimated to 80% which is assessed year on year to ensure its within an acceptable range.

Depreciation

Depreciation is spread over the useful life of the asset. Judgement has been used to assess the useful life of each asset being somewhere between 3 and 20 years depending on the type and quality of the asset. Assets can be impaired to an estimated value if additional damage is incurred on these assets.

VANGUARD FOUNDRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Pattening and casting
12,850,103
11,162,784
2024
2023
£
£
Turnover analysed by geographical market
UK
11,570,061
10,655,969
Europe
978,645
484,540
ROW
301,397
22,275
12,850,103
11,162,784
2024
2023
£
£
Other revenue
Interest income
11
371
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
956
(16,908)
Fees payable to the company's auditor for the audit of the company's financial statements
8,400
8,000
Depreciation of owned tangible fixed assets
214,115
112,735
Profit on disposal of tangible fixed assets
(6,000)
-
Operating lease charges
224,899
187,441
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
102
102
VANGUARD FOUNDRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
5
Employees
(Continued)
- 18 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,914,324
3,624,078
Social security costs
404,726
364,651
Pension costs
163,313
171,493
4,482,363
4,160,222
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
192,062
172,109
Company pension contributions to defined contribution schemes
24,859
25,192
216,921
197,301
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
11
371
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
11
371
8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
20,450
7,664
Other interest
28,967
14,920
49,417
22,584
VANGUARD FOUNDRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
9
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
(144,696)
-
0

The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
672,180
314,288
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
168,045
78,572
Tax effect of expenses that are not deductible in determining taxable profit
2,409
(5,253)
Tax effect of utilisation of tax losses not previously recognised
(90,989)
-
0
Unutilised tax losses carried forward
-
0
43,390
Permanent capital allowances in excess of depreciation
(79,465)
(116,709)
Research and development tax credit
(144,696)
-
0
Taxation credit for the year
(144,696)
-
10
Dividends
2024
2023
£
£
Final paid
29,888
15,940
VANGUARD FOUNDRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
11
Tangible fixed assets
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 October 2023
338,194
43,382
3,663,449
182,351
46,777
4,274,153
Additions
50,998
15,468
515,008
11,512
9,000
601,986
Disposals
-
0
-
0
-
0
-
0
(25,813)
(25,813)
At 30 September 2024
389,192
58,850
4,178,457
193,863
29,964
4,850,326
Depreciation and impairment
At 1 October 2023
143,501
24,863
3,037,767
158,785
34,694
3,399,610
Depreciation charged in the year
7,148
3,619
177,508
21,524
4,316
214,115
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(25,813)
(25,813)
At 30 September 2024
150,649
28,482
3,215,275
180,309
13,197
3,587,912
Carrying amount
At 30 September 2024
238,543
30,368
963,182
13,554
16,767
1,262,414
At 30 September 2023
194,693
18,519
625,682
23,566
12,083
874,543
12
Stocks
2024
2023
£
£
Raw materials and consumables
383,410
342,930
Work in progress
519,302
469,636
Finished goods and goods for resale
133,823
121,716
1,036,535
934,282
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,326,044
1,597,184
Corporation tax recoverable
144,696
-
0
Other debtors
107,434
185,384
Prepayments and accrued income
159,180
182,049
2,737,354
1,964,617
VANGUARD FOUNDRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
15
195
-
0
Obligations under finance leases
16
124,368
66,709
Trade creditors
1,431,281
1,104,860
Taxation and social security
292,470
234,163
Other creditors
625,797
847,261
Accruals and deferred income
408,780
215,840
2,882,891
2,468,833

Included within other creditors is and amount due to Close Brothers Limited of £628,722 (2023: £849,626) in relation to an invoice finance facility. This is secured by way of a fixed and floating charge over all present and future assets of the Company.

 

Net obligations under finance leases and hire purchase contracts are secured on the assets they relate to.

 

Bank loans relate to amounts owed to Close Invoice Finance Limited in relation to a CBILS and is secured by way of a fixed charge over the freehold property.

15
Loans and overdrafts
2024
2023
£
£
Bank overdrafts
195
-
0
Payable within one year
195
-
0
16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
124,368
66,709
In two to five years
286,937
221,208
411,305
287,917

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

VANGUARD FOUNDRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
16
286,937
221,208
18
Pension Commitments

The Company operates a defined contributions pension scheme. Outstanding contributions at 30 September 2023 are included within other creditors due within one year and amounted to £50,945 (2023: £41,309).

19
Government grants
2024
2023
£
£
Arising from government grants
-
349
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
163,313
171,493

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
39,850
39,850
39,850
39,850
22
Contingent Asset: R&D Tax Relief

The company expects to submit a Research & Development (R&D) tax relief claim in respect of qualifying expenditure incurred during the year ended 30 September 2024.

 

As at the date of approval of these financial statements, the claim had not yet been submitted to HMRC, and the amount of any potential benefit could not be reliably estimated. However, the directors believe the company has incurred qualifying expenditure and are in the process of preparing the claim.

 

In accordance with FRS 102 Section 21 – Provisions and Contingencies, the potential benefit is considered a contingent asset, and has not been recognised in these financial statements. The directors consider the inflow of economic benefits to be probable, but not virtually certain, at the reporting date.

 

The company expects to submit the claim in due course and will recognise the benefit once the inflow of economic benefits becomes virtually certain and measurable.

VANGUARD FOUNDRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 23 -
23
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
150,734
170,091
Between two and five years
234,883
317,573
In over five years
5,480
9,864
391,097
497,528
24
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
-
126,666
25
Events after the reporting date

On 31st October 2024 a management buyout occurred seeing Vanguard 2024 Limited purchase all shares in Vanguard Foundry Limited and become ultimate controlling party. As part of this transaction Brian Higgins has resigned as director.

26
Ultimate Controlling Party

During the year the Company is controlled by the shareholders. Brian Higgins is the person with significant control due to having the largest shareholding within the entity.

 

On 31st October 2024 a management buyout occurred seeing Vanguard 2024 Limited purchase all shares in Vanguard Foundry Limited and become ultimate controlling party.

VANGUARD FOUNDRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 24 -
27
Cash generated from operations
2024
2023
£
£
Profit after taxation
816,876
314,288
Adjustments for:
Taxation credited
(144,696)
-
0
Finance costs
49,417
22,584
Investment income
(11)
(371)
Gain on disposal of tangible fixed assets
(6,000)
-
Depreciation and impairment of tangible fixed assets
214,115
112,735
Decrease in deferred income
(349)
(4,188)
Movements in working capital:
Increase in stocks
(102,253)
(127,683)
(Increase)/decrease in debtors
(628,041)
396,821
Increase/(decrease) in creditors
356,204
(456,700)
Cash generated from operations
555,262
257,486
28
Analysis of changes in net debt
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
61,223
3,565
64,788
Bank overdrafts
-
0
(195)
(195)
61,223
3,370
64,593
Obligations under finance leases
(287,917)
(123,388)
(411,305)
(226,694)
(120,018)
(346,712)
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