Company registration number 08233395 (England and Wales)
SPEL HOLDINGS (CONSOLIDATED)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
SPEL HOLDINGS (CONSOLIDATED)
COMPANY INFORMATION
Directors
Mr P S Pocock
Mr Bryan Pocock
Secretary
Mr P S Pocock
Company number
08233395
Registered office
Lancaster Road
Shrewsbury
Shropshire
United Kingdom
SY1 3NQ
Auditor
Benee Consulting Limited
48 Durrell Drive
Rugby
Warwickshire
CV22 7GW
Accountant
Oldfield Advisory LLP
1120 Elliott Court
Herald Avenue
Coventry Business Park
Coventry
CV5 6UB
SPEL HOLDINGS (CONSOLIDATED)
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 31
SPEL HOLDINGS (CONSOLIDATED)
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
Introduction
The directors present the strategic report for the year ended 31 December 2024.
SPEL Products have been active in the GRP filament wound tanks since the process was patented and production commenced in 1989 providing a comprehensive range for many applications. Their use has been mainly in the design and development of high-performance fuel/oil separators, sewage treatment plants, package pumping stations (vertical and horizontal).
The group has been widening its range of products and systems in the protection of our environment with SPEL hydrodynamic vortex separators, SPEL Filters for capturing a range of minerals and dissolved pollutants and SPEL PuraFluent Sewage Treatment Plants to name a few. All these products are designed and manufactured to support the group’s passion of ensuring that our waterways are protected by high quality products that will ensure access to clean water for our children, our grandchildren, great grandchildren and beyond.
Review of the business
The business has enjoyed a long and strong period of development over the 60 years since its establishment in 1964 and this has continued throughout 2024; annual turnover has continued to grow, 2024: £9,032,796 - (2023: £8,831,245). Although this increase was less than the internal target of 5% it is a good result to achieve whilst making improvements on lead times and maintaining quality and delivery efficiency.
The growth in turnover during 2024 is the result of a modest increase in export sales. Despite the slight decrease in UK sales the business environment during 2024 was positive with more government bodies and companies seeing the need to ensure that our waterways are protected from pollution. During the year our sales and marketing team have been, alongside other parties, educating the industry through social media, presentations and CPD courses and we are therefore confident to see this contribution yield results in the coming years.
Future developments
The group has continued to invest in research and development throughout the year to innovate improvements to existing products and new products, thus maintaining a lead in the UK and global market.
Principal risks and uncertainties
Competition is always a challenge when standards are rigidly maintained. However, the group continues with a policy of advising the best and most economical ‘long term’ solution to ensure vital environmental standards are maintained.
Recruitment of skilled staff is an ongoing challenge due to the bespoke nature of the products and technical knowledge required. The group has a strong core team throughout the business and an integral training programme has been introduced in most areas so employees can learn all the necessary skills whilst working. The group has a banding pay structure for the production staff which aligns with their skill progression to maintain employees following the initial investment in training.
Credit control over recent years has been more of a challenge and this has been no different in 2024. The group continues to have efficient internal procedures such as taking deposit payments, stringent credit assessment and payment chasing to reduce the risk of default.
Opportunities are constantly developing as the awareness to protect our environment is becoming a greater issue with the relevant authorities. This is leading to an increase in regulation and consequently a need to provide a wider range of products to meet this protection.
Beside the protection of our environment, SPEL products are increasingly being used in other fields where storage, processing, pumping etc., operations and activities are being developed.
SPEL HOLDINGS (CONSOLIDATED)
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Key performance indicators
The main financial KPIs for the business are as follows: turnover growth, ROCE and a sustainable balance sheet.
At the year end the group had shareholders funds of £7,500,798 (2023 - £5,966,123). The directors believe the group's position to be sustainable, especially as the group's current assets exceed its current liabilities by £5,567,782 (2023 - £4,214,626), resulting in a strong current ratio, at the end of the year, of 3.9 (2023 - 3.4).
Other performance indicators
In addition to the key performance indicators detailed above the group also monitor daily booked orders, lead times, daily despatch and delivery on time against the group's internal goals.
Mr Bryan Pocock
Director
24 June 2025
SPEL HOLDINGS (CONSOLIDATED)
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the group continued to be that of the development and sale of quality products and systems for the storage, attenuation, monitoring, treatment and utilisation of surface water.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £370,229. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr P S Pocock
Mr Bryan Pocock
Financial instruments
The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Post reporting date events
On the 20 February 2025, a portion of the group's freehold property was sold to a connected party for £542,000. Further information is provided in note 23.
Future developments
Details of future developments are given in the Strategic Report.
Auditor
The auditor, Benee Consulting Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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 auditor of the company 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 auditor of the company 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.
SPEL HOLDINGS (CONSOLIDATED)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
On behalf of the board
Mr Bryan Pocock
Director
24 June 2025
SPEL HOLDINGS (CONSOLIDATED)
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
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 group and company, and of the profit or loss of the group 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
SPEL HOLDINGS (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SPEL HOLDINGS (CONSOLIDATED)
- 6 -
Opinion
We have audited the financial statements of SPEL Holdings (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2024 and of the group's 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 group and parent 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 group's and parent 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.
SPEL HOLDINGS (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SPEL HOLDINGS (CONSOLIDATED)
- 7 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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 parent 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 parent 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.
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.
Extent to which the audit was considered capable of detecting irregularities, including fraud;
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
SPEL HOLDINGS (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SPEL HOLDINGS (CONSOLIDATED)
- 8 -
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Sarah Flint BSc FCA (Senior Statutory Auditor)
For and on behalf of Benee Consulting Limited, Statutory Auditor
48 Durrell Drive
Rugby
Warwickshire
CV22 7GW
24 June 2025
SPEL HOLDINGS (CONSOLIDATED)
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
9,032,796
8,831,245
Cost of sales
(3,629,286)
(3,723,288)
Gross profit
5,403,510
5,107,957
Administrative expenses
(2,956,207)
(2,634,957)
Other operating income
600
22,062
Operating profit
4
2,447,903
2,495,062
Interest receivable and similar income
7
125,763
77,121
Interest payable and similar expenses
8
(45,641)
(66,908)
Profit before taxation
2,528,025
2,505,275
Tax on profit
9
(623,121)
(578,912)
Profit for the financial year
22
1,904,904
1,926,363
Profit for the financial year is all attributable to the owners of the parent company.
SPEL HOLDINGS (CONSOLIDATED)
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
2024
2023
£
£
Profit for the year
1,904,904
1,926,363
Other comprehensive income
-
-
Cash flow hedges gain arising in the year
Total comprehensive income for the year
1,904,904
1,926,363
Total comprehensive income for the year is all attributable to the owners of the parent company.
SPEL HOLDINGS (CONSOLIDATED)
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
Tangible assets
11
2,204,370
2,338,995
2,204,370
2,338,995
Current assets
Stocks
14
729,564
978,327
Debtors
15
2,267,783
675,907
Cash at bank and in hand
4,481,073
4,302,052
7,478,420
5,956,286
Creditors: amounts falling due within one year
16
(1,910,638)
(1,741,660)
Net current assets
5,567,782
4,214,626
Total assets less current liabilities
7,772,152
6,553,621
Creditors: amounts falling due after more than one year
17
(271,354)
(584,358)
Provisions for liabilities
Deferred tax liability
19
3,140
-
(3,140)
Net assets
7,500,798
5,966,123
Capital and reserves
Called up share capital
21
55,497
55,497
Profit and loss reserves
22
7,445,301
5,910,626
Total equity
7,500,798
5,966,123
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 24 June 2025 and are signed on its behalf by:
24 June 2025
Mr Bryan Pocock
Director
Company registration number 08233395 (England and Wales)
SPEL HOLDINGS (CONSOLIDATED)
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
12
100
100
100
100
Current assets
Debtors
15
56,902
646,632
Creditors: amounts falling due within one year
16
-
(140,000)
Net current assets
56,902
506,632
Total assets less current liabilities
57,002
506,732
Creditors: amounts falling due after more than one year
17
-
(449,730)
Net assets
57,002
57,002
Capital and reserves
Called up share capital
21
55,497
55,497
Profit and loss reserves
22
1,505
1,505
Total equity
57,002
57,002
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £370,229 (2023 - £538,442 profit).
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 24 June 2025 and are signed on its behalf by:
24 June 2025
Mr Bryan Pocock
Director
Company registration number 08233395 (England and Wales)
SPEL HOLDINGS (CONSOLIDATED)
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
55,472
4,522,733
4,578,205
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,926,363
1,926,363
Issue of share capital
21
25
-
25
Dividends
10
-
(538,470)
(538,470)
Balance at 31 December 2023
55,497
5,910,626
5,966,123
Year ended 31 December 2024:
Profit and total comprehensive income
-
1,904,904
1,904,904
Dividends
10
-
(370,229)
(370,229)
Balance at 31 December 2024
55,497
7,445,301
7,500,798
SPEL HOLDINGS (CONSOLIDATED)
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
55,472
1,532
57,004
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
538,443
538,443
Issue of share capital
21
25
-
25
Dividends
10
-
(538,470)
(538,470)
Balance at 31 December 2023
55,497
1,505
57,002
Year ended 31 December 2024:
Profit and total comprehensive income
-
370,229
370,229
Dividends
10
-
(370,229)
(370,229)
Balance at 31 December 2024
55,497
1,505
57,002
SPEL HOLDINGS (CONSOLIDATED)
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
2,682,648
3,007,225
Interest paid
(45,641)
(66,908)
Income taxes paid
(652,423)
(694,165)
Net cash inflow from operating activities
1,984,584
2,246,152
Investing activities
Purchase of tangible fixed assets
(109,671)
(286,503)
Proceeds from disposal of tangible fixed assets
49,300
53,499
Loans made
(1,047,722)
-
Interest received
125,763
77,121
Net cash used in investing activities
(982,330)
(155,883)
Financing activities
Proceeds from issue of shares
-
25
Repayment of borrowings
(453,004)
125,831
Dividends paid to equity shareholders
(370,229)
(538,470)
Net cash used in financing activities
(823,233)
(412,614)
Net increase in cash and cash equivalents
179,021
1,677,655
Cash and cash equivalents at beginning of year
4,302,052
2,624,397
Cash and cash equivalents at end of year
4,481,073
4,302,052
SPEL HOLDINGS (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
1
Accounting policies
Company information
SPEL Holdings (company number 08233395) is a private unlimited company, incorporated in England and Wales and domiciled in the United Kingdom. Its registered office and principal place of business is: Lancaster Road, Harlescott, Shrewsbury, SY1 3NQ.
The group consists of SPEL Holdings and all of its subsidiaries.
The principal activity of the group continued to be that of the development and sale of quality products and systems for the storage, attenuation, monitoring, treatment and utilisation of surface water.
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
The 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 for parent company information presented within the consolidated financial statements:
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
SPEL HOLDINGS (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company SPEL Holdings together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.5
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.
Interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable.
SPEL HOLDINGS (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.6
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.7
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
50 years straight line
Plant and equipment
4 and 7 years straight line
Fixtures and fittings
4 years straight line
Motor vehicles
4 years straight line
Moulds
4 years straight line
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 recognised in the profit and loss account.
1.8
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
SPEL HOLDINGS (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.9
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.10
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.
Stock is measured on a first in, first-out basis.
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.
1.11
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.
SPEL HOLDINGS (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 20 -
1.12
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
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 group 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 group after deducting all of its liabilities.
SPEL HOLDINGS (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 21 -
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.13
Equity instruments
Equity instruments issued by the group 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 group.
1.14
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
SPEL HOLDINGS (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 22 -
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 if, and only if, there is 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.
1.15
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.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
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 leased asset are consumed.
1.18
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
SPEL HOLDINGS (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 23 -
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Raw materials 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 including processing costs. Management use compaction factors specific to stock items held, which include some element of estimation, as part of the stock valuation method. The carrying value of stock is £729,564 (2023: £978,327).
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of water storage tanks
9,032,796
8,831,245
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
7,752,966
7,965,618
Middle East
923,636
574,139
European Union
286,918
241,485
Rest of the World
69,276
50,003
9,032,796
8,831,245
2024
2023
£
£
Other revenue
Interest income
125,763
77,121
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(1,213)
498
Research and development costs
41,740
23,649
Fees payable to the group's auditor for the audit of the group's financial statements
2,000
2,000
Depreciation of owned tangible fixed assets
242,718
250,723
Profit on disposal of tangible fixed assets
(47,722)
(45,955)
Operating lease charges
57,000
57,000
SPEL HOLDINGS (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
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 group and company
2,000
2,000
Audit of the financial statements of the company's subsidiaries
13,750
12,000
15,750
14,000
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
60
57
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,087,253
1,963,187
Social security costs
221,317
190,962
-
-
Pension costs
351,607
216,274
2,660,177
2,370,423
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
117,319
77,121
Other interest income
8,444
-
Total income
125,763
77,121
8
Interest payable and similar expenses
2024
2023
£
£
Other interest on financial liabilities
45,641
66,908
SPEL HOLDINGS (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
627,723
584,658
Deferred tax
Origination and reversal of timing differences
(4,602)
(5,746)
Total tax charge
623,121
578,912
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
2,528,025
2,505,275
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.51%)
632,006
588,990
Tax effect of expenses that are not deductible in determining taxable profit
3,404
3,504
Permanent capital allowances in excess of depreciation
20,706
20,775
Other permanent differences
(56,786)
(28,611)
Deferred tax adjustment
(4,602)
(5,746)
Taxation charge
594,728
578,912
Taxation charge in the financial statements
623,121
578,912
Reconciliation - the current year tax charge does not reconcile to the above analysis. Please review figures in the database.
(28,393)
-
A deferred tax asset of £1,462 is expected to reverse in the next year as capital allowances are claimed (see note 19).
Factors that may affect future tax charges
The group expects capital allowances available for tax purposes to be similar to, or lower than, the depreciation charged in the financial statements in future years. As depreciation is not deductible for tax purposes, this difference may lead to higher taxable profits and, consequently, a higher corporation tax charge.
However, the group undertakes qualifying research and development activities and intends to continue claiming R&D tax relief. These claims are expected to reduce taxable profits and may give rise to enhanced deductions. As a result, the group anticipates that future corporation tax liabilities will be lower than would otherwise be expected based solely on accounting profits.
SPEL HOLDINGS (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
370,229
538,470
11
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Moulds
Total
£
£
£
£
£
£
Cost
At 1 January 2024
3,240,901
2,306,711
394,290
475,443
243,245
6,660,590
Additions
51,021
12,266
37,800
8,584
109,671
Disposals
(6,938)
(107,179)
(1,648)
(115,765)
At 31 December 2024
3,240,901
2,357,732
399,618
406,064
250,181
6,654,496
Depreciation and impairment
At 1 January 2024
1,397,608
2,109,584
378,707
223,996
211,700
4,321,595
Depreciation charged in the year
64,419
81,490
5,970
73,737
17,102
242,718
Eliminated in respect of disposals
(6,938)
(105,846)
(1,403)
(114,187)
At 31 December 2024
1,462,027
2,191,074
377,739
191,887
227,399
4,450,126
Carrying amount
At 31 December 2024
1,778,874
166,658
21,879
214,177
22,782
2,204,370
At 31 December 2023
1,843,293
197,127
15,583
251,447
31,545
2,338,995
The company had no tangible fixed assets at 31 December 2024 or 31 December 2023.
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
100
100
SPEL HOLDINGS (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
12
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024 and 31 December 2024
100
Carrying amount
At 31 December 2024
100
At 31 December 2023
100
13
Subsidiaries
Details of the company's subsidiaries at 31 December 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Spel Ltd
Lancaster Road, Shrewsbury, Shropshire, United Kingdom, SY1 3NQ
Ordinary
100.00
-
Spel Products
As above
Ordinary
0
100.00
14
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
506,306
670,996
-
-
Work in progress
216,855
302,878
-
-
Promotional goods
6,403
4,453
729,564
978,327
-
-
The differences between purchase and replacement cost are not material.
The amount of inventories recognised as an expense during the year was £3,629,286 (2023 - £3,723,288). This includes raw materials, carriage inward, and other related direct costs allocated to goods sold during the period.
SPEL HOLDINGS (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
959,224
536,452
Corporation tax recoverable
81,670
Amounts owed by group undertakings
-
-
27,634
140,000
Other debtors
1,079,363
32,842
29,268
29,268
Prepayments and accrued income
146,064
106,613
2,266,321
675,907
56,902
169,268
Deferred tax asset (note 19)
1,462
2,267,783
675,907
56,902
169,268
Amounts falling due after more than one year:
Amounts owed by group undertakings
-
-
-
477,364
Total debtors
2,267,783
675,907
56,902
646,632
Other debtors includes loans to directors totalling £1,047,721. Further information is provided in the related party note (note 25).
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Other borrowings
18
140,000
140,000
Trade creditors
564,410
450,632
Corporation tax payable
311,129
254,159
Other taxation and social security
307,467
206,827
-
-
Other creditors
132,883
24,576
Accruals and deferred income
594,749
665,466
1,910,638
1,741,660
140,000
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Other borrowings
18
271,354
584,358
449,730
SPEL HOLDINGS (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Other loans
271,354
724,358
589,730
Payable within one year
140,000
140,000
Payable after one year
271,354
584,358
449,730
The borrowings relate to loans from directors and their family members. A commercial rate of interest is paid on the loans and further details of these related party transactions are provided in note 24.
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
-
3,140
1,462
-
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 January 2024
3,140
-
Credit to profit or loss
(4,602)
-
Asset at 31 December 2024
(1,462)
-
The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilization of capital allowances against future expected profits of the same period.
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
351,607
216,274
SPEL HOLDINGS (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
20
Retirement benefit schemes
(Continued)
- 30 -
The group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The pension expense represents contributions payable by the group to the scheme and amounted to £351,607 (2023: £216,274). Contributions totalling £15,428 (2023: £12,592) were payable to the scheme at the balance sheet date and are included in creditors.
21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
55,497
55,497
55,497
55,497
22
Reserves
Profit and loss reserves
The profit and loss reserve represents accumulated profits generated since incorporation less distributions made to shareholders.
23
Events after the reporting date
On the 20 February 2025, a portion of the group's freehold property was sold to a connected party for £542,000, compared to a carrying value of £640,201. The sale was supported by an open market valuation and was followed by a leaseback arrangement, with the group continuing to occupy and operate from the property.
The transaction was considered a potential impairment indicator under FRS 102. A value in use calculation was performed based on the property's proportionate contribution to operating profit. This demonstrated a recoverable amount significantly higher than the carrying value, and accordingly, no impairment has been recognised.
24
Related party transactions
Included within other creditors are unsecured loans from from the directors totalling £100,221 (2023: £589,730). Of this balance £100,221 (2023: £140,000) is due within one year, and £Nil (2023 : £449,730) is due after more than one year. A market rate of interest is paid on the loans.
Also included in creditors due after more than one year are unsecured loans from family members of the directors. The total amount outstanding at the balance sheet date is £271,354 (2023: £134,628). A market rate of interest is paid on the loans.
Ultimate controlling party
The company is under the control of the directors by virtue of their ownership of the share capital of the company.
SPEL HOLDINGS (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 31 -
25
Directors' transactions
Included within other debtors due within one year are unsecured loans to a director totalling £1,047,721 (2023 - £Nil). The maximum amount outstanding during the year was £1,167,721. The balance comprises two separate arrangements with the same director, as follows:
Director's current account - overdrawn by £92,127 at the year end, which was the maximum outstanding during the year.
Loan account - a new loan advanced during the year of £1,075,594, of which £955,594 remained outstanding at the year end after partial repayments.
Both balances are unsecured, interest free, and repayable on demand. No amounts were written off or waived during the year.
26
Cash generated from group operations
2024
2023
£
£
Profit after taxation
1,904,904
1,926,363
Adjustments for:
Taxation charged
623,121
578,912
Finance costs
45,641
66,908
Investment income
(125,763)
(77,121)
Gain on disposal of tangible fixed assets
(47,722)
(45,955)
Depreciation and impairment of tangible fixed assets
242,718
250,723
Movements in working capital:
Decrease in stocks
248,763
309,041
(Increase)/decrease in debtors
(461,022)
445,559
Increase/(decrease) in creditors
252,008
(447,205)
Cash generated from operations
2,682,648
3,007,225
27
Analysis of changes in net funds - group
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
4,302,052
179,021
4,481,073
Borrowings excluding overdrafts
(724,358)
453,004
(271,354)
3,577,694
632,025
4,209,719
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