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Company registration number: 1008689







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2024


SPECAC LIMITED






































img037e.png                        

 


SPECAC LIMITED
 


 
COMPANY INFORMATION


Directors
S D Allen (appointed 17 October 2024)
M Dearden (appointed 1 July 2024)
H J Dubina (appointed 19 March 2024)
J Ray (appointed 19 March 2024)




Company secretary
J D Jordan



Registered number
1008689



Registered office
Science And Innovation Centre Unit 12
Halo Business Park

Cray Avenue

Orpington

Kent

BR5 3FQ




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

95 Gresham Street

London

EC2V 7AB





 


SPECAC LIMITED
 



CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Statement of Comprehensive Income
9
Statement of Financial Position
10
Statement of Changes in Equity
11
Notes to the Financial Statements
12 - 24


 


SPECAC LIMITED
 


 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

Business review
 
The principal activity of the Company is the manufacture of Spectroscopy accessories, sample preparation, process, and optical products for the scientific instrument sector and various other applications within industry. The Group, in which the Company is a part of, continued to follow its long-term strategy in 2023/24, supplying market leading products to its global customers, with exports contributing 95.4% to group sales in the year (95.4% FY23).
Sales in FY24 fell slightly by 4.3% (FY23 9% growth), but the business continued to capitalise on-going growth in our core markets coupled with growth accelerating initiatives implemented to further underpin and accelerate growth. Including, enhancing corporate strategy and its implementation to ensure significant organic and accelerated growth (including acquisition) year on year long term.
The business continues a rigorous approach to both Top and Bottom line. Top line is focussing on improving Sales performance and New Product Development. Bottom line is focussing on improved cost control, driving improved ROI, coupled with strong debt management. 
On 1 March 2024, the entirety of the Group’s share capital was acquired by Specac Holdco Limited (“the Parent”). The majority shareholders of the Parent are Ampersand 2023 Limited Partnership. The ultimate parent company of Ampersand 2023 Limited Partnership is Ampersand Management LLC, an entity incorporated in the United States of America. 
In the year to 31 March 2024 the Company continued to invest in existing businesses, new technology and new ventures. On 21 March 2024, its subsidiary, Specac Inc. acquired the trade and assets of Harrick Scientific Products Inc.

Principal risks and uncertainties
 
The Company governs and manages various business and operational risks which are typical for a company of its size and sector. Governance is enhanced through regular Board and Leadership meetings which discuss and manage these risks to minimise their likelihood or impact on the company as far as is possible. Insurance, Proforma invoices for new customers, Quality audits and Health and Safety reviews amongst other activities play an appropriate role in mitigating these risks. The Company reviews its strategy on a regular basis to maximise its performance potential.

Financial key performance indicators

The Directors regard the following measures as key performance indicators of Company performance.  These have been discussed in the Business Review.

Key performance Indicators

2024
2023
        £
        £
Sales growth

(4.3%)

9.0%
 
International % total sales

95.4%

95.4%
 
EBITDA

£2.3m

£3.0m
 
EBITDA as % of sales

15.9%

20.0%
 
Average headcount

77

81
 
Sales per head

£188k

£185k
 

Page 1

 


SPECAC LIMITED
 



STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Other key performance indicators
 
The Company has continued to perform well in the year with the key performance indicators above expectations. The Directors were satisfied with the performance of the Company in the current year against these key performance indicators.


This report was approved by the board and signed on its behalf.



M Dearden
Director
Date: 3 June 2025

Page 2

 


SPECAC LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The Directors present their report and the financial statements for the year ended 31 March 2024.

Directors' responsibilities statement

The Directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 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 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £2,219,041 (2023 - £1,986,689).

No dividends have been proposed or declared in the year or since the year end (2023: Nil).

Directors

The Directors who served during the year were:

H J Dubina (appointed 19 March 2024)
J Ray (appointed 19 March 2024)
S J Postma (resigned 19 March 2024)
J Melville-Jackson (resigned 1 March 2024)
K O'Donovan (resigned 1 March 2024)

Future developments

Our success and financial performance are dependent on our ability to serve as a trusted, long-term partner to our many diverse customers. We continue to make targeted investments across high growth areas, and the success of these investments depends on their successful management and execution. 
We will continue to make strategic acquisitions in current and complementary customer market segments to supplement organic growth, solidify our current market presence and expand into new areas. 

Research and development activities

Significant research and development was undertaken by the Company, both through part customer funded programmes and in support of the Company’s own projects. The Company continued its strong track record of developing new products and services during the year. 

Page 3

 


SPECAC LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Matters covered in the Strategic Report

The Company has chosen in accordance with Section 414C(II) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out within the Company’s Strategic Report, the information required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This include information that would have been included in the business review and details of the principal risks and uncertainties.

Disclosure of information to auditors

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

The auditorsMenzies LLPwill 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.
 





M Dearden
Director

Date: 3 June 2025

Page 4

 


SPECAC LIMITED
 

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SPECAC LIMITED

Opinion


We have audited the financial statements of Specac Limited (the 'Company') for the year ended 31 March 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 March 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 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.


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 Auditors' Report thereon. The Directors are responsible for the other information contained within the Annual ReportOur 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.


Page 5

 


SPECAC LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SPECAC LIMITED (CONTINUED)

Opinion 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 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.


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:


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 Directors' Responsibilities Statement set out on page 3, 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.


Page 6

 


SPECAC LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SPECAC LIMITED (CONTINUED)

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 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:

The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant:
 
The Companies Act 2006;
Financial Reporting Standard 102;
UK employment legislation;
General Data Protection Regulations; and, 
UK tax legislation

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to management and those responsible for legal and compliance procedures.
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
 
Identifying and assessing the measures management has in place to prevent and detect fraud;
Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
Challenging assumptions and judgements made by management in its significant accounting estimates; and
Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
 
The use of management override of controls to manipulate results, or to cause the Company to enter into transactions not in its best interests; or
Posting of unusual journals and complex transactions.


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.


Page 7

 


SPECAC LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SPECAC LIMITED (CONTINUED)

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 2006Our 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.





Robin Hopkins FCA (Senior Statutory Auditor)
for and on behalf of
Menzies LLP
Chartered Accountants
Statutory Auditor
95 Gresham Street
London
EC2V 7AB

3 June 2025
Page 8

 


SPECAC LIMITED
 


 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£
£

  

Turnover
 4 
14,314,278
14,959,041

Cost of sales
  
(8,181,539)
(8,113,938)

Gross profit
  
6,132,739
6,845,103

Distribution costs
  
(1,281,712)
(1,578,720)

Administrative expenses
  
(3,002,085)
(2,669,227)

Exceptional administrative expenses
  
208,329
(330,296)

Other operating income
 5 
134,202
85,384

Operating profit
 6 
2,191,473
2,352,244

Interest receivable and similar income
 10 
77,453
-

Profit before tax
  
2,268,926
2,352,244

Tax on profit
 11 
(49,885)
(365,555)

Profit for the financial year
  
2,219,041
1,986,689

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 12 to 24 form part of these financial statements.

Page 9

 


SPECAC LIMITED
REGISTERED NUMBER:1008689



STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible Fixed Assets
 13 
1,215,096
1,413,703

Investments
 14 
3,308,981
250,000

  
4,524,077
1,663,703

Current assets
  

Stocks
 15 
3,591,559
4,323,305

Debtors: amounts falling due within one year
 16 
8,276,495
2,775,147

Cash at bank and in hand
 17 
2,887,276
3,819,766

  
14,755,330
10,918,218

Creditors: amounts falling due within one year
 18 
(4,060,580)
(2,664,539)

Net current assets
  
 
 
10,694,750
 
 
8,253,679

Total assets less current liabilities
  
15,218,827
9,917,382

Provisions for liabilities
  

Deferred tax
 19 
(139,022)
(115,599)

Other provisions
 20 
(141,939)
(141,939)

  
 
 
(280,961)
 
 
(257,538)

Net assets
  
14,937,866
9,659,844


Capital and reserves
  

Called up share capital 
 21 
378,899
73,001

Share premium account
 22 
4,504,378
1,751,295

Profit And Loss Account
 22 
10,054,589
7,835,548

  
14,937,866
9,659,844


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




M Dearden
Director

Date: 3 June 2025

The notes on pages 12 to 24 form part of these financial statements.

Page 10

 


SPECAC LIMITED
 



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 April 2022
73,001
1,751,295
5,848,859
7,673,155



Profit for the year
-
-
1,986,689
1,986,689



At 1 April 2023
73,001
1,751,295
7,835,548
9,659,844



Profit for the year
-
-
2,219,041
2,219,041


Contributions by and distributions to owners

Shares issued during the year
305,898
2,753,083
-
3,058,981


At 31 March 2024
378,899
4,504,378
10,054,589
14,937,866


Page 11

 


SPECAC LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

Specac Limited is a private company limited by shares incorporated in England and Wales and domiciled in the United Kingdom. The address of its registered office and principal place of business are disclosed on the Company Information page. The principal activities of the company was the design and manufacture of accessories for the scientific instrumentation industry.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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.

  
2.2

Disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Specac International Limited which can be obtained from Companies House. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:
(a) No cash flow statement has been presented for the company.
(b) Disclosures in respect of financial instruments have not been presented.
(c) No disclosure has been given for the aggregate remuneration of key management personnel.

 
2.3

Exemption from preparing consolidated financial statements

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.

 
2.4

Revenue

Revenue from the sale of goods is recognised in accounting periods in which the risks and rewards of ownership have been transferred to the customer, which is usually when title passes on delivery.
Revenue is measured at the fair value of the consideration received, net of trade discounts and sales taxes.

 
2.5

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 12

 


SPECAC LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.5
Tangible fixed assets (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.

Depreciation is provided on the following basis:

Leasehold improvements
-
Over the remaining lease term
Plant and machinery
-
10% to 50% straight line
Fixtures, fittings, software, tools & equipment
-
33% straight line

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.

No borrowing costs are capitalised as part of property, plant and equipment.
Depreciation is not charged on assets under construction until these assets are in use.

 
2.6

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.7

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

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

 
2.8

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Statement of Financial Position 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.

Page 13

 


SPECAC LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.9

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

 
2.10

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.11

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.12

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 14

 


SPECAC LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.13

Current and deferred taxation

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

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.14

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

 
2.15

Research and development

Research and development expenditure is written off in the period in which it is incurred.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions
that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the
circumstances.
Significant judgements
The company uses judgement over the method and rates in which absorption costing on stock is applied.  A rate is determined from specific costs applied over typical hours that have been worked.
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the
related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
Management use estimation to calculate a provision on stock held by reviewing slower moving stock and providing
for the stock over a certain criteria. 

Page 15

 


SPECAC LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Sale of goods
14,314,278
14,959,041

14,314,278
14,959,041


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
653,153
688,296

Rest of Europe
3,307,068
2,808,290

Rest of the world
5,530,050
6,282,318

Other overseas
4,824,007
5,180,137

14,314,278
14,959,041



5.


Other operating income

2024
2023
£
£

Research and development tax credits
134,202
85,238

Sundry income
-
146

134,202
85,384



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Research & development charged as an expense
671,012
655,674

Exchange differences
(7,728)
(17,578)

Other operating lease rentals
126,315
451,128

Page 16

 


SPECAC LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
24,000
23,650


8.


Employees

Staff costs, including Directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
3,323,660
3,410,068

Social security costs
337,989
362,830

Cost of defined contribution scheme
381,005
356,407

4,042,654
4,129,305


The average monthly number of employees, including the Directors, during the year was as follows:


        2024
        2023
            No.
            No.







Production & operations
40
42



Admin & design
21
22



Sales & marketing
16
17

77
81

Page 17

 


SPECAC LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
342,037
359,726

Company contributions to defined contribution pension schemes
59,527
42,400

401,564
402,126


During the year retirement benefits were accruing to 2 Directors (2023 - 2) in respect of defined contribution pension schemes.

The highest paid Director received remuneration of £243,273 (2023 - £201,300).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £41,719 (2023 - £25,600).


10.


Interest receivable

2024
2023
£
£


Bank interest receivable
77,453
-

77,453
-


11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
33,550
399,131

Adjustments in respect of previous periods
(7,088)
(8,797)


26,462
390,334


Total current tax
26,462
390,334

Deferred tax


Origination and reversal of timing differences
23,423
(24,779)

Total deferred tax
23,423
(24,779)


Taxation on profit on ordinary activities
49,885
365,555
Page 18

 


SPECAC LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
2,268,926
2,352,244


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
567,232
446,926

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
46,240
195

Capital allowances for year in excess of depreciation
28,179
(22,194)

R&D expenditure credits
33,550
-

Adjustments to tax charge in respect of prior periods
(7,088)
(8,797)

Change in tax rate on deferred tax
-
(5,947)

Group relief
(618,228)
(44,628)

Total tax charge for the year
49,885
365,555


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


12.


Exceptional items

2024
2023
£
£


Restructuring and severance
(208,329)
231,526

One off product costs
-
98,770

(208,329)
330,296

Exceptional expenses of £(208,329) (2023: £231,526) relate to restructuring and severance during the period.  Costs of £Nil (2023: £98,770) relate to one off costs related to exiting legacy materials from our product range.

Page 19

 


SPECAC LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

13.


Tangible fixed assets





Leasehold improvements
Plant and machinery
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 April 2023
1,754,598
609,098
578,193
2,941,889


Additions
1,180
60,249
70,080
131,509



At 31 March 2024

1,755,778
669,347
648,273
3,073,398



Depreciation


At 1 April 2023
642,296
499,388
386,502
1,528,186


Charge for the year on owned assets
161,324
66,258
102,534
330,116



At 31 March 2024

803,620
565,646
489,036
1,858,302



Net book value



At 31 March 2024
952,158
103,701
159,237
1,215,096



At 31 March 2023
1,112,302
109,710
191,691
1,413,703


14.


Fixed asset investments





Shares in group undertakings

£



Cost


At 1 April 2023
250,000


Additions
3,058,981



At 31 March 2024
3,308,981





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Specac Inc.
141 Tompkins Avenue, 2nd Floor, PO Box 277, Pleasantville, New York 10570
Ordinary
100%

During the year the Company provided a capital contribution to its subsidiary.

Page 20

 


SPECAC LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

15.


Stocks

2024
2023
£
£

Raw materials and consumables
1,865,558
2,179,793

Work in progress
319,891
397,315

Finished goods and goods for resale
1,406,110
1,746,197

3,591,559
4,323,305


Impairment losses recognised or (reversed) in profit or loss was (£37,742) (2023: (£130,181)).


16.


Debtors

2024
2023
£
£


Trade debtors
1,398,940
1,158,658

Amounts owed by group undertakings
6,242,085
1,273,077

Other debtors
100,298
82,610

Prepayments and accrued income
240,520
260,802

Tax recoverable
294,652
-

8,276,495
2,775,147



17.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
2,887,276
3,819,766

2,887,276
3,819,766


Page 21

 


SPECAC LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

18.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
669,636
487,535

Amounts owed to group undertakings
2,361,906
516,108

Corporation tax
-
116,086

Other taxation and social security
66,674
75,178

Other creditors
34,379
62,448

Accruals and deferred income
927,985
1,407,184

4,060,580
2,664,539


Within other creditors are amounts due on defined contribution pension schemes of £32,161 (2023: £60,230).


19.


Deferred taxation




2024


£






At beginning of year
(115,599)


Charged to profit or loss
(23,423)



At end of year
(139,022)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(147,062)
(131,588)

Other timing differences
8,040
15,989

(139,022)
(115,599)

Page 22

 


SPECAC LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

20.


Provisions




Dilapidations

£





At 1 April 2023
141,939



At 31 March 2024
141,939

The above provisions relate to dilapidations costs which are expected to be incurred in exiting the lease of the premises that it trades in.


21.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



378,899 (2023 - 73,001) Ordinary shares of £1.00 each
378,899
73,001

The shares have attached to them full voting, dividend and capital distribution rights.

During the year 305,898 ordinary shares were issued at £10 per share.


22.


Reserves

Share premium account

This reserve records the amount above the nominal value received for shares sold, less transaction costs.

Profit and loss account

This reserve records retained earnings and accumulated losses.


23.


Commitments under operating leases

At 31 March 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
523,008
524,990

Later than 1 year and not later than 5 years
1,905,711
1,930,988

Later than 5 years
63,459
560,091

2,492,178
3,016,069

Page 23

 


SPECAC LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

24.Other financial commitments

There is a floating charge over the assets of the Company in relation to loans owed by a parent company.


25.


Related party transactions

The company is exempt from disclosing related party transactions with entities that are part of the Specac International Limited group.


26.


Controlling party

The Company's immediate parent undertaking is Specac International Limited, a company incorporated in the United Kingdom. Specac International Limited prepares group accounts, and that group is the largest and smallest group of undertakings for which group accounts are drawn up. Copies of the group accounts are publicly available at Companies House.  Ampersand 2023 Limited Partnership, incorporated in the USA, is the Company's ultimate parent company.
There is not considered to be one controlling party.

 
Page 24