Company registration number 00068499 (England and Wales)
STEPHENSON GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
STEPHENSON GROUP LIMITED
COMPANY INFORMATION
Directors
J M Story
L Flannery
R L Carr
L Bilbrough
T R Bentley
T J M Bentley
S Bradley
(Appointed 1 January 2024)
Company number
00068499
Registered office
Brookfoot House
Low Lane
Horsforth
Leeds
West Yorkshire
LS18 5PU
Auditor
BHP LLP
1st Floor
Mayesbrook House
Lawnswood Business Park
Leeds
LS16 6QY
Bankers
Barclays Bank Plc
10 Market Street
Bradford
West Yorkshire
STEPHENSON GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 29
STEPHENSON GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The directors present the strategic report for the year ended 30 September 2024.
Principal activities
The principal activity of the company is the development, manufacture and supply of specialty chemicals.
Business Model
Stephenson Group Limited (“Stephenson”) manufactures and supplies specialty personal care ingredients and solutions. With over 100 years of experience supplying chemicals and soap bases, Stephenson has significant expertise in the areas in which it operates. 80% of Stephenson sales are to export markets, with a sizable presence in the US and Europe.
Stephenson innovates, develops, and manufactures quality technical products for a range of applications from its research and development and manufacturing facilities.
Business review and results
The business environment in fiscal year 2024 was more stable compared to the challenges that were faced in 2023. Raw material prices showed less volatility and supply chains showed improved stability. A stronger focus on sustainability as a competitive advantage reemerged, as it became more of a business driver and less about compliance. This switch in emphasis plays to Stephenson’s strengths, with sustainability being a strong part of our core message.
In the year ended 30 September 2024, Stephenson sales were £28,245k compared to the prior year of £26,971k an increase of close to 5%. Gross Profit margins improved and the business recorded an operating profit of £3,424k vs £2,493k in the previous period. This result is after the write down of a debt relating to an overseas customer by just over £1m. Little of the debt was incurred in the current financial year, and the profit excluding this item would have been £4,511k.
The business is placing growing emphasis on sustainable innovation, making significant investments in developing innovative products to support this goal, while also fostering a company-wide culture that drives change and promotes collaboration with our supply chain to use sustainable raw materials.
Financial key performance indicators
The directors consider the key financial KPI’s to be:
• Sales growth and order intake
• Customer and product profitability
• Operation cost measures, including purchase price variances, labour cost per tonne, and waste.
• Debt levels
• Working capital levels
• Debtor and Creditor days analysis
Other key performance indicators
In addition, non-financial KPI’s include:
• Health & Safety compliance
• Customer retention analysis
• Quality control metrics
• Operations measures
• Environmental Impact
STEPHENSON GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Principal risks and uncertanties
Exchange rate risk
A significant proportion of Stephenson’s sales are exported and are priced in either Euros or US dollars. Accordingly, the Company has significant accounts receivable in these currencies. The exchange rate risk is managed by forward contracts, where appropriate. In addition, the Company continues to purchase key raw materials in currency to create a natural hedge and mitigate the impact of foreign currency fluctuations.
Credit risk
The Company’s principal financial assets are stock and trade debtors that represent the Company’s main exposure to credit risk in relation to financial assets.
The credit risk is primarily attributable to its trade debtors. The risk is managed by maintaining a strict credit policy and effective credit rating of prospective customers. In addition, the Company has a credit insurance policy in place which covers the majority of trade receivables.
Operational risk
The Company has appropriate reporting systems and produces timely and accurate management information which is regularly reviewed by the directors and other stakeholders.
Price risk
The Company is exposed to pressure on margins, with a number of raw materials being commodities and as such susceptible to volatility which could impact on margins. Stephenson has contracts with suppliers to mitigate price fluctuations where possible.
Liquidity risk
The Company has sufficient banking facilities in place to meet its current and future working capital requirements.
Future developments
Growing consumer interest in solid format personal care products is being driven by the environmental advantages of significantly reducing plastic packaging and water usage. The Company has set ambitious plans to expand its range of solid format products, recognising the substantial growth potential and aligning its efforts with its broader sustainability goals.
Our focus on the personal care sector is enabling the business to pursue new opportunities and align more closely with our core strategic priorities. Several new products in development are already demonstrating strong growth potential, supported by significant investments in both research and development and capital equipment.
Corporate social responsibility
Our corporate social responsibility plans fall into three distinct categories. Our culture and looking after our people and their families, our community through support for charities and education and our sustainability strategy.
We continue to champion the use of sustainable Palm Oil, and work hard with suppliers to source more of our materials from responsible sources.
Our new product development in the last 12 months has been focussed on 2 primary product groups. Firstly, esterification technology to create a range of 100% natural esters that are multi-functional using green chemistry techniques. Secondly, solid format personal care products, which have a low carbon footprint, are concentrated so reducing water usage, and packaged in sustainable materials supporting the challenge of eliminating single use plastic.
STEPHENSON GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
On behalf of the board
T J M Bentley
Director
T J M Bentley
Director
18 June 2025
STEPHENSON GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
The directors present their annual report and financial statements for the year ended 30 September 2024.
Results and dividends
The profit for the year, after taxation, amounted to £4,516,225 (2023 - £2,032,523).
Ordinary dividends were paid amounting to £4,719,235 (2023 - £1,260,000). 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:
J M Story
L Flannery
R L Carr
L Bilbrough
T R Bentley
T J M Bentley
S Bradley
(Appointed 1 January 2024)
Auditor
The auditor, BHP LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on XX March 2025 and signed on its behalf.
Research and development activities
The Stephenson business has and continues to invest heavily in R&D, with a significant element of our improvement in sales coming from new product groups developed in house with protected IP. The constant drive for enhanced products and process both in our factory and at our customers continues to drive our R&D and innovation functions as the key to mid to long term success of our business and to our customers who create value from our products.
Going concern
In the opinion of the Directors, the Company has sufficient financial resources together with clearly defined performance objectives. The Company has strong support of its bankers and shareholders in working towards meeting its financial objectives. As a consequence the Directors believe that the Company is well placed to manage its business risks successfully.
The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt a going concern basis of accounting in preparing the annual report and the financial statements.
Matters covered in the strategic report
Certain information is not shown in the Directors' Report because it is shown in the Strategic Report instead under s414C(11). The Strategic Report includes a business review and market overview, information about the Company's principal risks and uncertainties, future developments and information about the Company's financial key performance indicators.
STEPHENSON GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -
Statement of directors' responsibilities
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:
select suitable accounting policies 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement 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
T J M Bentley
Director
18 June 2025
STEPHENSON GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STEPHENSON GROUP LIMITED
- 6 -
Opinion
We have audited the financial statements of Stephenson Group Limited (the 'company') for the year ended 30 September 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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:
give a true and fair view of the state of the company's affairs as at 30 September 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.
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.
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:
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.
STEPHENSON GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STEPHENSON GROUP LIMITED (CONTINUED)
- 7 -
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, 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.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the Company through discussions with directors and other management, and from our commercial knowledge and experience of the trade;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company;
we assessed the extent of compliance with the laws and regulations considered above through making enquiries of management; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
STEPHENSON GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STEPHENSON GROUP LIMITED (CONTINUED)
- 8 -
We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risks of fraud through management bias and override controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
discussions with senior management regarding relevant regulations and reviewing the Company’s legal and professional fees.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the director’s and other management and the inspection of regulatory and legal correspondence.
As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of the nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
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.
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.
Jamie Williams
Senior Statutory Auditor
For and on behalf of BHP LLP
18 June 2025
Chartered Accountants
Statutory Auditor
1st Floor
Mayesbrook House
Lawnswood Business Park
Leeds
LS16 6QY
STEPHENSON GROUP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
28,245,105
26,970,701
Cost of sales
(15,622,758)
(16,616,105)
Gross profit
12,622,347
10,354,596
Administrative expenses
(9,198,569)
(7,861,616)
Operating profit
4
3,423,778
2,492,980
Interest receivable and similar income
8
24,736
Interest payable and similar expenses
9
(110,201)
(92,000)
Profit before taxation
3,338,313
2,400,980
Tax on profit
10
(733,601)
(368,457)
Profit for the financial year
2,604,712
2,032,523
Other comprehensive income
Actuarial loss on defined benefit pension schemes
(24,000)
(259,000)
Tax relating to other comprehensive income
6,000
64,750
Total comprehensive income for the year
2,586,712
1,838,273
The profit and loss account has been prepared on the basis that all operations are continuing operations.
STEPHENSON GROUP LIMITED
BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
3,282,195
3,644,697
Current assets
Stocks
14
3,142,650
3,501,031
Debtors
15
5,658,078
7,156,792
Cash at bank and in hand
3,630,738
2,461,852
12,431,466
13,119,675
Creditors: amounts falling due within one year
16
(6,073,894)
(4,438,216)
Net current assets
6,357,572
8,681,459
Total assets less current liabilities
9,639,767
12,326,156
Provisions for liabilities
Deferred tax liability
17
607,000
689,866
Defined benefit pension liability
19
1,374,000
1,845,000
(1,981,000)
(2,534,866)
Net assets
7,658,767
9,791,290
Capital and reserves
Called up share capital
18
40,000
40,000
Capital redemption reserve
81,323
81,323
Profit and loss reserves
20
7,537,444
9,669,967
Total equity
7,658,767
9,791,290
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 18 June 2025 and are signed on its behalf by:
T J M Bentley
Director
Company registration number 00068499 (England and Wales)
STEPHENSON GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2022
40,000
81,323
9,091,694
9,213,017
Year ended 30 September 2023:
Profit
-
-
2,032,523
2,032,523
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
(259,000)
(259,000)
Tax relating to other comprehensive income
-
-
64,750
64,750
Total comprehensive income
-
-
1,838,273
1,838,273
Dividends
11
-
-
(1,260,000)
(1,260,000)
Balance at 30 September 2023
40,000
81,323
9,669,967
9,791,290
Year ended 30 September 2024:
Profit
-
-
2,604,712
2,604,712
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
(24,000)
(24,000)
Tax relating to other comprehensive income
-
-
6,000
6,000
Total comprehensive income
-
-
2,586,712
2,586,712
Dividends
11
-
-
(4,719,235)
(4,719,235)
Balance at 30 September 2024
40,000
81,323
7,537,444
7,658,767
STEPHENSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
1
Accounting policies
Company information
Stephenson Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is Brookfoot House, Low Lane, Horsforth, Leeds, West Yorkshire, LS18 5PU.
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of T Bentley Holdings Limited. These consolidated financial statements are available from its registered office, Brookfoot House, Low Lane, Horsforth, LS18 5PU.
STEPHENSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.2
Going concern
The Company is part of the T Bentley Holdings Limited Group structure. The company's ability to operate as a going concern is therefore directly linked to the Group's funding position which the Directors have considered in their assessment of going concern.true
After reviewing the Group's forecasts and risk assessments and making other enquiries, the Board has formed the judgement at the time of approving the financial statements that there is a reasonable expectation that the Group and the Company have adequate resourced to continue in operational existence for 12 months from the date of signing this Annual report and financial statements. For this reason, the Board continues to adopt the going concern basis in preparing the financial statements.
In arriving at their opinion, the Directors considered:
The forecasts on which the going concern assessment is based have been subject to sensitivity analysis and stress testing to assess the impact of the above risks and the Directors have also reviewed mitigating actions that could be taken. The conclusions from these reviews all supported the adoption of the going concern basis.
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
STEPHENSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Patents & licences
10 years
1.6
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:
Plant and equipment
10-20 years
Fixtures and fittings
5-10 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.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.
STEPHENSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.8
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.
1.9
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.
1.10
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.
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.
STEPHENSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 16 -
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.
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.
STEPHENSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 17 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
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.
1.13
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.
STEPHENSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.14
Retirement benefits
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 the Statement of Comprehensive Income 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.
The Company previously operated a defined benefit plan for certain employees. The Scheme closed to new members and to the future accrual of benefits on 31 March 2002. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.
The liability recognised in the Statement of Financial Position in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the reporting date less the fair value of plan assets at the reporting date out of which the obligations are to be settled.
The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').
The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the Company's policy for similarly held assets. This includes the use of appropriate valuation techniques.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'.
The cost of the defined benefit plan, recognised in the Statement of Comprehensive Income as employee costs, except where included in the cost of an asset, comprises:
a) the increase in net pension benefit liability arising from employee service during the period; and
b) the cost of plan introductions, benefit changes, curtailments and settlements.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in Statement of Comprehensive Income as a "finance expense'.
1.15
Leases
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.
STEPHENSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
2
Judgements and key sources of estimation uncertainty
The critical judgments that the directors have made in the process of applying the Company's accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below.
(i) Assessing indicators of impairment
In assessing whether there have been any indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability and where applicable, the ability of the asset to be operated as planned. There have been no indicators of impairments identified during the current financial year.
Critical judgments in applying the accounting policies
The critical judgments that the directors have made in the process of applying the Company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are discussed below:
(i) Defined benefit pension scheme
The pension scheme assets and liabilities are valued using an actuarial valuation based on market assumptions.
(ii) Determining residual values and useful economic lives of tangible assets
The Company depreciates tangible assets, and amortises intangible assets, over their estimated useful lives. The estimation of the useful lives of tangible assets is based on historic performance as well as expectations about t future use and therefore requires estimates and assumptions to be applied. The estimation of useful lives of intangible assets is based on any contractual or legal rights associated with the asset, or the period in which the Company expects to use the asset if shorter. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.
Judgmental is also applied, when determining the residual values for fixed assets. When determining the residual value, the directors have assessed the amount that the Company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful life. Where possible this is done with reference to external market prices.
3
Turnover
The whole of the turnover is attributable to the principal activity of the Company.
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
7,224,956
5,834,881
Rest of Europe
10,835,210
9,936,664
Rest of the world
10,184,939
11,199,156
28,245,105
26,970,701
STEPHENSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
161,867
32,530
Research and development costs
229,908
200,000
Depreciation of owned tangible fixed assets
538,479
494,098
Profit on disposal of tangible fixed assets
(1,000)
-
Operating lease charges
155,787
142,110
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
26,750
29,000
The company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent company.
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Employees
99
103
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,825,073
3,533,300
Social security costs
392,716
376,747
Pension costs
220,854
186,796
4,438,643
4,096,843
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
368,281
472,234
Company pension contributions to defined contribution schemes
31,648
-
399,929
472,234
STEPHENSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
7
Directors' remuneration
(Continued)
- 21 -
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2023 - 4).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
156,000
130,383
Company pension contributions to defined contribution schemes
7,800
1,245
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
24,736
9
Interest payable and similar expenses
2024
2023
£
£
Net interest on the net defined benefit liability
85,000
92,000
Other interest
25,201
110,201
92,000
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
633,005
340,038
Adjustments in respect of prior periods
63,012
(2,377)
Total current tax
696,017
337,661
Deferred tax
Origination and reversal of timing differences
40,402
33,466
Adjustment in respect of prior periods
(2,818)
(2,670)
Total deferred tax
37,584
30,796
Total tax charge
733,601
368,457
STEPHENSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
10
Taxation
(Continued)
- 22 -
The actual 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
3,338,313
2,400,980
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.01%)
834,578
528,456
Tax effect of expenses that are not deductible in determining taxable profit
30,263
3,052
Tax effect of income not taxable in determining taxable profit
(110,041)
Change in unrecognised deferred tax assets
4,005
Adjustments in respect of prior years
63,012
(2,377)
Group relief
(35,973)
Depreciation on assets not qualifying for tax allowances
8,752
5,986
Research and development tax credit
(57,447)
(57,221)
Deferred tax adjustments in respect of prior years
(2,818)
(2,670)
Other differences
(733)
Patent box additional deduction
(106,746)
Movement in deferred tax not recognised
(20)
Taxation charge for the year
733,601
368,457
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2023
£
£
Deferred tax arising on:
Actuarial differences recognised as other comprehensive income
(6,000)
(64,750)
11
Dividends
2024
2023
£
£
Final paid
4,719,235
1,260,000
STEPHENSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 23 -
12
Intangible fixed assets
Goodwill
Patents & licences
Total
£
£
£
Cost
At 1 October 2023 and 30 September 2024
150,000
170,669
320,669
Amortisation and impairment
At 1 October 2023 and 30 September 2024
150,000
170,669
320,669
Carrying amount
At 30 September 2024
At 30 September 2023
13
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 October 2023
7,640,015
197,987
28,531
7,866,533
Additions
62,661
113,316
175,977
At 30 September 2024
7,702,676
197,987
141,847
8,042,510
Depreciation and impairment
At 1 October 2023
4,021,063
172,242
28,531
4,221,836
Depreciation charged in the year
513,417
6,176
18,886
538,479
At 30 September 2024
4,534,480
178,418
47,417
4,760,315
Carrying amount
At 30 September 2024
3,168,196
19,569
94,430
3,282,195
At 30 September 2023
3,618,952
25,745
3,644,697
Included in Plant and equipment is a value of £184,534 (2023: £113,223) relating to Assets Under Construction not yet depreciated.
14
Stocks
2024
2023
£
£
Raw materials and consumables
2,056,783
1,517,017
Finished goods and goods for resale
1,085,867
1,984,014
3,142,650
3,501,031
STEPHENSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 24 -
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,855,676
6,015,063
Amounts owed by group undertakings
478,362
Amounts owed by associated undertakings
115,484
43,711
Other debtors
64,332
21,774
Prepayments and accrued income
275,786
136,632
5,311,278
6,695,542
Deferred tax asset (note 17)
346,800
461,250
5,658,078
7,156,792
Amounts owed by group and associated undertakings are unsecured, interest free and repayable on demand.
16
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,947,422
3,097,673
Amounts owed to group undertakings
2,530,630
1,684
Corporation tax
627,217
337,661
Other taxation and social security
126,508
73,279
Other creditors
33,312
54,452
Accruals and deferred income
808,805
873,467
6,073,894
4,438,216
Amounts owed to group and associated undertakings are unsecured, interest free and repayable on demand.
STEPHENSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
607,000
689,866
-
-
Defined benefit pension scheme
-
-
346,800
461,250
607,000
689,866
346,800
461,250
2024
Movements in the year:
£
Liability at 1 October 2023
228,616
Charge to profit or loss
37,584
(Charged)/credited to other comprehensive income
(6,000)
Liability at 30 September 2024
260,200
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
40,000
40,000
40,000
40,000
The Ordinary shares have attached to them full voting, dividend and capital distribution (including on winding up) rights. They do not confer any rights of redemption nor a right to a fixed income.
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
220,854
186,796
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. There were contributions of £24,335 (2023 - £45,462) payable to the fund at the balance sheet date.
STEPHENSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
19
Retirement benefit schemes
(Continued)
- 26 -
Defined benefit schemes
The Company operates a defined benefit scheme, the Stephenson Group Limited Retirement Benefits Scheme (the "scheme"). The scheme is administered by a separate board of Trustees which is legally separate from Stephenson Group Limited (the “company”). The Trustees are composed of representatives of both the employer and members of the scheme.
The Scheme was closed to new members on 31 March 2002 and closed to future accrual of benefits on 31 March 2007. The most recent full funding valuation was on 1 April 2021 and was carried out by a qualified independent actuary. This has been updated to 30 September 2024.
The Company expects to contribute £598,000 to the scheme in the year ending 30 September 2025.
Additional employer contributions might be required if there are any redundancies or benefit augmentations during the year.
2024
2023
Key assumptions
%
%
Discount rate
5.05
5.45
Expected rate of increase of pensions in payment
2.80
3.00
Expected rate of salary increases
2.60
2.80
Mortality assumptions
2024
2023
Assumed life expectations on retirement at age 65:
Years
Years
Retiring today
- Males
21.7
21.8
- Females
23.7
23.6
Retiring in 20 years
- Males
22.7
22.7
- Females
24.9
24.8
The mortality assumptions are based on 100% of SAPS S2PXA "All lives" tables with allowance for future improvements in line with the CMI 2023 projections with a smoothing parameter for 7.0 and a long term trend rate of 1.00% p.a.
Amounts recognised in the profit and loss account
2024
2023
Costs/(income):
£
£
Net interest on net defined benefit liability/(asset)
85,000
92,000
STEPHENSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
19
Retirement benefit schemes
(Continued)
- 27 -
Amounts recognised in other comprehensive income
2024
2023
Costs/(income):
£
£
Actual return on scheme assets
(486,000)
217,000
Less: calculated interest element
207,000
195,000
Return on scheme assets excluding interest income
(279,000)
412,000
Actuarial changes related to obligations
303,000
(153,000)
Total costs
24,000
259,000
The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:
2024
2023
Liabilities/(assets):
£
£
Present value of defined benefit obligations
5,792,000
5,521,000
Fair value of plan assets
(4,418,000)
(3,676,000)
Deficit in scheme
1,374,000
1,845,000
2024
Movements in the present value of defined benefit obligations
£
Liabilities at 1 October 2023
5,521,000
Benefits paid
(324,000)
Actuarial gains and losses
303,000
Interest cost
292,000
At 30 September 2024
5,792,000
The defined benefit obligations arise from plans which are wholly or partly funded.
2024
Movements in the fair value of plan assets
£
Fair value of assets at 1 October 2023
3,676,000
Interest income
207,000
Return on plan assets (excluding amounts included in net interest)
279,000
Benefits paid
(324,000)
Contributions by the employer
580,000
At 30 September 2024
4,418,000
The actual return on plan assets was £486,000 (2023 - £217,000).
STEPHENSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
19
Retirement benefit schemes
(Continued)
- 28 -
2024
2023
Fair value of plan assets
£
£
Diversified Growth Fund
2,374,000
2,071,000
Bonds
1,915,000
1,506,000
Cash/net current assets
129,000
99,000
4,418,000
3,676,000
20
Profit and loss reserves
This reserve represents cumulative profits and losses less dividends paid.
21
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
151,365
126,351
Between two and five years
211,411
296,792
362,776
423,143
22
Other financial commitments
As at the year end the Company had committed to forward contract currency options totalling USD 1,500,000 (2023 - USD 2,400,000) with maturity dates ranging from October 2024 to January 2025 (2023 - October 2023 to January 2024).
As at the end of the year, the Company had committed to forward purchase contracts totalling £471,782 (2023 - £390,101) in respect of refined palm products with maturity dates in October 2024 to December 2024 (2023 - October 2023 to February 2024).
23
Related party transactions
Transactions with related parties
The Company has taken the exemption permitted by Section 33 Related Party Disclosures, not to disclose transactions made with other wholly owned group companies.
Sustain CO2 Limited and Stephenson Group Limited are related parties by virtue of common Directorships. During the year ended 30 September 2024, Stephenson Group Limited made product sales totalling £379,217 (2023 - £345,387) and recharges totalling £197,444 (2023 - £380,847) to Sustain CO2 Limited. At the year end date an amount totalling £115,484 (2023 - £59,782) was outstanding.
24
Ultimate controlling party
STEPHENSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
24
Ultimate controlling party
(Continued)
- 29 -
Up to 20 May 2024, the controlling party and parent undertaking was Thos. Bentley & Son Limited by virtue of its majority shareholding and the ultimate controlling party was The Trustees Of The T R Bentley 1997 Discretionary Settlement by virtue of their majority shareholding in the parent undertaking.
Since the 20 May 2024, Thos. Bentley & Son Limited has remained the immediate parent undertaking.
From 20 May 2024 until 9 September 2024 the controlling party and ultimate parent undertaking was TJM Bentley Holdings Limited by virtue of its majority shareholding and the ultimate controlling party was The Trustees Of The T R Bentley 1997 Discretionary Settlement by virtue of their majority shareholding in the parent undertaking.
Since 9 September 2024 the controlling party and ultimate parent undertaking is T Bentley Holdings Limited by virtue of its majority shareholding and the ultimate controlling party is The Trustees Of The T R Bentley 1997 Discretionary Settlement by virtue of their majority shareholding in the parent undertaking.
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