Company registration number 03703984 (England and Wales)
NFM EUROPE LIMITED
(FORMERLY NFM IDDON LIMITED)
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
PAGES FOR FILING WITH REGISTRAR
NFM EUROPE LIMITED
(FORMERLY NFM IDDON LIMITED)
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
NFM EUROPE LIMITED
(FORMERLY NFM IDDON LIMITED)
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
3
133,451
134,650
Current assets
Stocks
159,142
165,565
Debtors
4
195,851
340,095
Cash at bank and in hand
140,768
500,029
495,761
1,005,689
Creditors: amounts falling due within one year
5
(1,428,804)
(1,590,211)
Net current liabilities
(933,043)
(584,522)
Total assets less current liabilities
(799,592)
(449,872)
Creditors: amounts falling due after more than one year
6
(10,274)
(20,922)
Net liabilities
(809,866)
(470,794)
Capital and reserves
Called up share capital
7
100,000
100,000
Profit and loss reserves
(909,866)
(570,794)
Total equity
(809,866)
(470,794)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 20 June 2025 and are signed on its behalf by:
Mr S Swallen
Director
Company registration number 03703984 (England and Wales)
NFM EUROPE LIMITED
(FORMERLY NFM IDDON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
1
Accounting policies
Company information
NFM Europe Limited is a private company limited by shares incorporated in England and Wales. The registered office is Units 125-126 Brookfield Place, Walton Summit, Bamber Bridge, Preston, PR5 8BF.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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
These financial statements are prepared on the going concern basis however, the directors are aware of a material uncertainty which may cast significant doubt on the company’s ability to continue as a going concern.
The company is reliant on the financial support of its U.S. parent company, NFM Welding Engineers Inc. to fund past and future losses of the company. At this stage, the directors of NFM Welding Engineers Inc. have indicated that they will continue their support for at least 12 months from the date of the approval of these accounts and are satisfied that the US parent company will have sufficient funds to provide any support needed.
The company and its U.S. parent are currently negotiating a multi-national, multi-year customer contract which, if successful, would have a materially positive impact on the company’s continuing operations. The success and timing of these negotiations are presently uncertain; however, the directors are optimistic that the negotiations will be successful.
Should the negotiations be unsuccessful, the parent company will conduct a strategic review of the UK operations. The company is in the process of negotiating an amendment to its lease agreements such that a break clause could be exercised to vacate the trading premises in October 2026.
The outcome of the contract negotiation, the parent company’s strategic review and confirmation of ongoing support, will ultimately determine whether the company remains a going concern. These events and conditions create a material uncertainty that may cast significant doubt on the company’s ability to continue as a going concern.
Nevertheless, the directors of NFM Europe Limited are satisfied that the company has adequate resources to continue in operational existence for the foreseeable future and that it is appropriate to adopt the going concern basis of accounting in preparing the annual financial statements, however there remains a material uncertainty as noted above.
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. The fair value of consideration takes into account trade and settlement discounts.
NFM EUROPE LIMITED
(FORMERLY NFM IDDON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 3 -
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.
Revenue from long term contracts is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to labour and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, 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:
Leasehold improvements
Over the lease term
Plant and machinery
5 - 15 years
Patterns, tooling and drawings
5 years
Motor vehicles
5 years
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.
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).
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 is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in the profit or loss account.
1.6
Stocks
Stock and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. 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.
Amounts recoverable on long term contracts, which are included in debtors, are stated at the net sales value of the work done after provision for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in creditors as payments on account.
NFM EUROPE LIMITED
(FORMERLY NFM IDDON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 4 -
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 the profit or loss account.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
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.
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.
Impairment of financial assets
Financial assets 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 the profit or loss account.
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 and loans from fellow group companies, 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.
NFM EUROPE LIMITED
(FORMERLY NFM IDDON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 5 -
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Foreign exchange
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
14
10
NFM EUROPE LIMITED
(FORMERLY NFM IDDON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 6 -
3
Tangible fixed assets
Leasehold improvements
Plant and machinery etc
Total
£
£
£
Cost
At 1 May 2023
103,253
287,956
391,209
Additions
12,419
9,996
22,415
At 30 April 2024
115,672
297,952
413,624
Depreciation and impairment
At 1 May 2023
4,302
252,257
256,559
Depreciation charged in the year
10,343
13,271
23,614
At 30 April 2024
14,645
265,528
280,173
Carrying amount
At 30 April 2024
101,027
32,424
133,451
At 30 April 2023
98,951
35,699
134,650
4
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
48,115
56,828
Amounts owed by group undertakings
39,068
34,928
Other debtors
108,668
248,339
195,851
340,095
5
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
10,648
10,648
Trade creditors
23,261
59,523
Amounts owed to group undertakings
1,222,261
1,165,896
Taxation and social security
17,857
5,358
Other creditors
154,777
348,786
1,428,804
1,590,211
NFM EUROPE LIMITED
(FORMERLY NFM IDDON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 7 -
6
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
10,274
20,922
7
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,000
100,000
100,000
100,000
8
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
180,225
105,000
9
Related party transactions
The company has taken advantage of the exemption permitted under Section 1AC.33 from disclosing transactions with the consolidating parent that it is wholly owned by.
10
Parent company
The ultimate parent company is NFM Welding Engineers Inc, a company incorporated in the USA. The ultimate parent company registered address is: 577 Oberlin Road, Massillon, Ohio, 446457, USA.
NFM EUROPE LIMITED
(FORMERLY NFM IDDON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
11
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was qualified. The auditor reported as follows:
We have audited the financial statements of NFM Europe Limited (the 'company') for the year ended 30 April 2024 which comprise , the balance sheet 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:
give a true and fair view of the state of the company's affairs as at 30 April 2024 and of its loss 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 qualified opinion
We were unable to obtain sufficient and appropriate audit evidence regarding stock balances at 30 April 2024, which are included in the balance sheet at £159,142. We were also unable to obtain sufficient and appropriate audit evidence regarding the same balances at the prior year end, 30 April 2023, which are included in the balance sheet at £165,565.
Our audit procedures in both the current and prior year were limited due to the absence of adequate stock records and lack of reliable evidence to support management's valuation, we were unable to satisfy ourselves by alternative audit procedures concerning these stock amounts.
Consequently, we were unable to determine whether any adjustments to these balances were necessary, including those that may affect cost of sales for the current and prior years.
Additionally, we were unable to obtain sufficient and appropriate audit evidence for amounts recoverable on contracts as at 30 April 2022. We were there unable to determine whether any misstatement may have had a consequential effect on the cost of sales for the year ended 30 April 2023. Our opinion on the current period’s financial statements is also modified because of the possible effect of this matter on the comparability of the current period’s figures and the corresponding figures.
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 qualified opinion.
NFM EUROPE LIMITED
(FORMERLY NFM IDDON LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
11
Audit report information
(Continued)
- 9 -
Material uncertainty related to going concern
We draw attention to note 1.2 in the financial statements which indicates that the company’s ability to continue as a going concern is dependent on the successful outcome of a contract negotiation and the parent company’s strategic review and confirmation of ongoing support. As stated in note 1.2, these events and conditions, along with other matters as set forth in note 1.2, create a material uncertainty that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
Senior Statutory Auditor:
Paul Spencer BSc(Hons) FCA
Statutory Auditor:
MHA