Company registration number 06058179 (England and Wales)
INVESTMENT CASTING SYSTEMS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
INVESTMENT CASTING SYSTEMS LIMITED
COMPANY INFORMATION
Directors
Mr J Head
Mr E J Head
Company number
06058179
Registered office
Systems House
1 Claylands Way
Paignton
Devon
TQ4 7TY
Auditor
Simpkins Edwards Audit LLP
The Summit
Woodwater Park
Pynes Hill
Exeter
EX2 5WS
Business address
Systems House
1 Claylands Way
Paignton
Devon
TQ4 7TY
INVESTMENT CASTING SYSTEMS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10 - 11
Company balance sheet
12 - 13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 35
INVESTMENT CASTING SYSTEMS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -
The directors present the strategic report for the year ended 30 April 2024.
Fair review of the business
The directors consider that the key performance indicators are turnover, gross margin, earnings before interest, tax, depreciation and amortisation (EBITDA) and Net assets. Together these demonstrate the financial performance and strength of the company. An overview of these indicators for both the current and prior year are given below:
Turnover £8,109,267 (2023: £8,277,929) a decrease of 2%.
Gross profit £3,178,284 (2023: £2,729,502) an increase of 16.4%.
Gross profit margin 39.2% (2023: 32.9%).
EBITDA £1,430,306 (2023: £1,202,704) an increase of 18.9%.
Net assets £2,698,697 (2023: £2,907,955) a decrease of 7.2%.
2024 proved to be a good year overall. With the move to the new premises behind us, the decision was made to focus more on cost savings and improved productivity and efficiencies to directly impact profitability. As a result, gross margins increased even with a small decrease in turnover.
The group’s pre-tax profit for the financial year was negatively impacted by the £700,000 downward revaluation of investment properties, which was attributed to general economic factors, including increased interest rates, which impacted on investors’ required yields from commercial properties and also to the reduction in the remaining lease terms with tenants.
Principal risks and uncertainties
Group turnover is not easy to predict. While there is generally a core of repeat business, profitability relies heavily on securing new work each year to replace one-off contracts with certain customers. The period since year end has seen reduction in turnover, relative to the last 2 years and that has presented challenges in terms of covering overhead and debt servicing costs as explained more fully below.
The continued fluctuations in costs across the business, particularly raw materials, energy and interest rates provides a challenging environment to trade in, but these will be carefully monitored by the directors so that decisions regarding pricing can be swiftly reacted to. Looking ahead they would hope to see some cost stability and with greater focus on production efficiencies it would be expected that gross profit margins across the group can be maintained and improved upon.
The directors will continue to remain vigilant to unexpected challenges and are prepared to adapt quickly as they have done previously but, believe that the financial robustness, business strategies and management processes will enable the business to withstand any shocks or threats to its continuity in the next period or medium term.
Financial risks
Financial risk within the group is somewhat mitigated by the different industries in which they trade, as whilst the companies within the group complement each other they are also standalone companies offering a diverse range of products and services to different markets. In the past this has had the effect that, if one of the companies within the group is underperforming, although this has an adverse effect on the financial performance of the group, the other group companies are able to financially support the other until the industry recovers.
High levels of inflation and increases in interest rates are worrying as borrowings increased significantly due to the move. The group took advantage of CBIL's after the Aerospace industry collapsed during and after COVID, to help fund the move to the new premises in 2022, which would otherwise have been funded through cashflow. This has meant that there is more short-term debt than the directors had initially planned and also that investment in new machinery has been put on hold for the short term.
In response to rising debt servicing costs and the group not achieving its sales targets in the period since year end, the directors have taken the decision to sell the group’s investment properties in order to reduce borrowings and the ongoing cost of servicing those borrowings.
INVESTMENT CASTING SYSTEMS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Environmental risks managed
The directors are very aware of the risks of making products from plastic and the reactions of the public and environmental groups. They try to use as much reprocessed material as possible in products and usage of reprocessed materials has increased year on year for the past 6 years and now nearly 95% of all PP used in production is reprocessed material or a blend.
The group was awarded the Ecovadis Silver 2022 rating and continues to achieve the same high standard annually placing it in the top 15% of companies assessed which measures performance of environment, labour, human rights & ethics and sustainable procurement.
A target has been set to achieve a 50% reduction in baseline emissions by 2025 and net zero by the end of 2030. Significant steps have been taken to record and monitor the businesses baseline and make staff and other stakeholders aware of the part they can play to reduce the carbon footprint.
Non- financial Key Performance Indicators
Non-financial KPI’s are maintained and reviewed to ensure that the business is working as efficiently as possible. These measures are used to assess performance of individual departments as well as both customer and supplier performance. The directors monitor the following:-
Order book
Quote turnaround
Despatched on time
Yield/scrap
Non-Conformance Reports
Complaints
Future developments
As referred to above, a reduction in turnover since year end caused significant challenges for the group in terms of profitability and cash flow. Payment terms were agreed with certain creditors and financial support provided by the company directors - in the form of loans to the company and security offered to new lenders on personal assets - in order to ensure that the group could continue to trade. Additionally, external investment has been arranged which resulted in a recent injection of cash necessary to bring creditor obligations up to date.
In order to put the group on a stronger financial footing and reduce future debt servicing obligations, the group’s investment properties have been marketed for sale, with completion of those sales anticipated within 2 months of the date of signing of these financial statements. The sale proceeds have been committed to the reduction in borrowings.
New sources of work have been secured in the latter part of 2024/25, which are projected to add significant growth in turnover and profitability over the next 3 years and a return to cash positive trading. Strategies are being implemented to further build on sales with exciting opportunities arising as major UK-based companies introduce automated fulfilment centres, which are expected to increase demand for the plastic storage boxes produced by the group.
While the immediate short-term will require careful management of cash flow, the directors are confident that the period beyond that will see the group reporting strong results. This confidence is supported by detailed projections of profit and loss and cash flow which have been prepared on the basis of information currently available and a healthy pipeline of work.
INVESTMENT CASTING SYSTEMS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
Financial instruments
Due to the nature of the financial instruments used by the group, there is limited exposure to currency, price or credit risk. The group's approach to managing other risks applicable to the financial instruments concerned is shown below:
In respect of bank balances, the liquidity risk is managed by maintaining sufficient cash reserves to cover planned expenditure for the foreseeable future.
Bank loans, including the confidential invoice discounting facility, are secured by means of a fixed and floating charge over the group's assets.
Hire purchase and finance lease obligations are secured upon the assets acquired.
Certain of the group’s borrowing facilities bear interest at variable rates, giving some exposure to movements in the Bank of England base rate. Liquidity risk is managed by forecasting cash requirements and ensuring that sufficient funds are available to meet debt servicing commitments as they fall due.
Mr J Head
Director
21 July 2025
INVESTMENT CASTING SYSTEMS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
The directors present their annual report and financial statements for the year ended 30 April 2024.
Principal activities
The principal activity of the company and the group continued to be that of the manufacture of injection moulded products and tool making.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £344,810. 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 J Head
Mr E J Head
Ms J E Frith
(Appointed 1 June 2023 and resigned 18 December 2024)
Auditor
The auditor, Simpkins Edwards Audit LLP, 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.
On behalf of the board
Mr J Head
Director
21 July 2025
INVESTMENT CASTING SYSTEMS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 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.
INVESTMENT CASTING SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INVESTMENT CASTING SYSTEMS LIMITED
- 6 -
Opinion
We have audited the financial statements of Investment Casting Systems Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise 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 30 April 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.
The above statements notwithstanding, we draw attention to note 1.4 in the financial statements which explains circumstances relevant to going concern. Our opinion is not modified in respect of this matter.
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.
INVESTMENT CASTING SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INVESTMENT CASTING SYSTEMS LIMITED
- 7 -
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.
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. In so doing, we considered the following:-
The nature of the company, its control environment and performance indicators;
Results of our enquiries of management and directors regarding their own identification and assessment of the risks of irregularities; and
the matters discussed among the audit engagement team regarding how and where irregularities might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in relation to the recognition of revenue and valuation of stock. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
INVESTMENT CASTING SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INVESTMENT CASTING SYSTEMS LIMITED
- 8 -
We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context relate to Health and Safety and the UK Companies Act.
Our procedures in response to the risks identified included the following:
reviewing the financial statement disclosures and testing to supporting documentation;
understanding and evaluating the design and implementation of management controls;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
challenging assumptions and judgements made by management in their significant accounting estimates, in particular, in relation to income recognition and stock valuation; and
in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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.
Jonathan Williams BSc FCA CTA (Senior Statutory Auditor)
For and on behalf of Simpkins Edwards Audit LLP, Statutory Auditor
Chartered Accountants
The Summit
Woodwater Park
Pynes Hill
Exeter
EX2 5WS
22 July 2025
INVESTMENT CASTING SYSTEMS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
8,109,267
8,277,929
Cost of sales
(4,930,983)
(5,548,427)
Gross profit
3,178,284
2,729,502
Distribution costs
(322,102)
(349,697)
Administrative expenses
(2,068,105)
(1,788,452)
Other operating income
216,139
162,769
Operating profit
5
1,004,216
754,122
Interest receivable and similar income
8
2,413
274
Interest payable and similar expenses
9
(371,710)
(379,053)
Fair value losses on investment properties
14
(700,000)
(Loss)/profit before taxation
(65,081)
375,343
Tax on (loss)/profit
10
200,633
45,012
Profit for the financial year
135,552
420,355
Profit for the financial year is attributable to:
- Owners of the parent company
73,442
404,711
- Non-controlling interests
62,110
15,644
135,552
420,355
Total comprehensive income for the year is attributable to:
- Owners of the parent company
73,442
404,711
- Non-controlling interests
62,110
15,644
135,552
420,355
INVESTMENT CASTING SYSTEMS LIMITED
GROUP BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
59,683
56,786
Tangible assets
13
4,643,631
4,893,870
Investment property
14
2,311,946
3,011,946
7,015,260
7,962,602
Current assets
Stocks
17
805,865
625,612
Debtors
18
985,413
2,037,359
Cash at bank and in hand
284,946
761,713
2,076,224
3,424,684
Creditors: amounts falling due within one year
19
(3,629,719)
(4,960,764)
Net current liabilities
(1,553,495)
(1,536,080)
Total assets less current liabilities
5,461,765
6,426,522
Creditors: amounts falling due after more than one year
20
(1,868,664)
(2,431,432)
Provisions for liabilities
Deferred tax liability
23
894,404
1,087,135
(894,404)
(1,087,135)
Net assets
2,698,697
2,907,955
Capital and reserves
Called up share capital
25
201
201
Capital redemption reserve
417
417
Other reserves
346,582
346,582
Profit and loss reserves
2,331,910
2,603,278
Equity attributable to owners of the parent company
2,679,110
2,950,478
Non-controlling interests
19,587
(42,523)
Total equity
2,698,697
2,907,955
INVESTMENT CASTING SYSTEMS LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
30 APRIL 2024
30 April 2024
- 11 -
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 21 July 2025 and are signed on its behalf by:
21 July 2025
Mr J Head
Director
Company registration number 06058179 (England and Wales)
INVESTMENT CASTING SYSTEMS LIMITED
COMPANY BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
49,399
46,883
Tangible assets
13
3,534,583
3,772,984
Investment property
14
2,311,946
3,011,946
Investments
15
348,687
348,687
6,244,615
7,180,500
Current assets
Stocks
17
548,270
141,843
Debtors
18
345,465
786,932
Cash at bank and in hand
85,617
63,465
979,352
992,240
Creditors: amounts falling due within one year
19
(2,768,702)
(2,657,746)
Net current liabilities
(1,789,350)
(1,665,506)
Total assets less current liabilities
4,455,265
5,514,994
Creditors: amounts falling due after more than one year
20
(1,838,144)
(2,377,213)
Provisions for liabilities
Deferred tax liability
23
742,756
945,660
(742,756)
(945,660)
Net assets
1,874,365
2,192,121
Capital and reserves
Called up share capital
25
201
201
Capital redemption reserve
417
417
Other reserves
346,582
346,582
Profit and loss reserves
1,527,165
1,844,921
Total equity
1,874,365
2,192,121
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 £27,054 (2023 - £332,809 profit).
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
INVESTMENT CASTING SYSTEMS LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 30 APRIL 2024
30 April 2024
- 13 -
The financial statements were approved by the board of directors and authorised for issue on 21 July 2025 and are signed on its behalf by:
21 July 2025
Mr J Head
Director
Company registration number 06058179 (England and Wales)
INVESTMENT CASTING SYSTEMS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 14 -
Share capital
Revaluation reserve
Capital redemption reserve
Merger reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
£
£
Balance at 1 May 2022
201
431,250
417
346,582
2,115,128
2,893,578
(58,167)
2,835,411
Year ended 30 April 2023:
Profit and total comprehensive income
-
-
-
-
404,711
404,711
15,644
420,355
Dividends
11
-
-
-
-
(347,811)
(347,811)
-
(347,811)
Transfers
-
(431,250)
-
-
431,250
-
-
-
Balance at 30 April 2023
201
417
346,582
2,603,278
2,950,478
(42,523)
2,907,955
Year ended 30 April 2024:
Profit and total comprehensive income
-
-
-
-
73,442
73,442
62,110
135,552
Dividends
11
-
-
-
-
(344,810)
(344,810)
-
(344,810)
Balance at 30 April 2024
201
417
346,582
2,331,910
2,679,110
19,587
2,698,697
INVESTMENT CASTING SYSTEMS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
Share capital
Revaluation reserve
Capital redemption reserve
Merger reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 May 2022
201
431,250
417
346,582
1,428,673
2,207,123
Year ended 30 April 2023:
Profit and total comprehensive income for the year
-
-
-
-
332,809
332,809
Dividends
11
-
-
-
-
(347,811)
(347,811)
Transfers
-
(431,250)
-
-
431,250
-
Balance at 30 April 2023
201
417
346,582
1,844,921
2,192,121
Year ended 30 April 2024:
Profit and total comprehensive income
-
-
-
-
27,054
27,054
Dividends
11
-
-
-
-
(344,810)
(344,810)
Balance at 30 April 2024
201
417
346,582
1,527,165
1,874,365
INVESTMENT CASTING SYSTEMS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
1,234,335
1,804,096
Interest paid
(371,710)
(379,053)
Net cash inflow from operating activities
862,625
1,425,043
Investing activities
Purchase of intangible assets
(11,000)
(18,385)
Purchase of tangible fixed assets
(85,753)
(553,622)
Proceeds from disposal of tangible fixed assets
12,501
-
Repayment of loans
-
820
Interest received
2,413
274
Net cash used in investing activities
(81,839)
(570,913)
Financing activities
Proceeds from borrowings
-
540,000
Repayment of bank loans
(750,068)
(201,897)
Payment of finance leases obligations
(162,675)
(278,552)
Dividends paid to equity shareholders
(344,810)
(347,811)
Net cash used in financing activities
(1,257,553)
(288,260)
Net (decrease)/increase in cash and cash equivalents
(476,767)
565,870
Cash and cash equivalents at beginning of year
761,713
195,843
Cash and cash equivalents at end of year
284,946
761,713
INVESTMENT CASTING SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 17 -
1
Accounting policies
Company information
Investment Casting Systems Limited is a private company limited by shares incorporated in England and Wales. The registered office is Systems House, 1 Claylands Way, Paignton, Devon, TQ4 7TY.
The group consists of Investment Casting Systems Limited and all of its subsidiaries.
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 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:
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 33 ‘Related Party Disclosures’: Compensation for key management personnel.
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.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Investment Casting Systems Limited 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 30 April 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.
INVESTMENT CASTING SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 18 -
1.4
Going concern
In the period since the year end, the company and group have faced significant cash flow challenges as a result of a reduction in turnover relative to recent years. Those years have seen large contracts for the manufacture of products for blue chip customers. However, the same level of demand was not seen in 2024/25.
Payment terms were agreed with certain creditors and the company and group were able to secure additional borrowing to fund working capital requirements, supported by security offered on personal assets of the company directors. The directors also advanced further loans to the company and group. Additionally, a cash injection has been achieved recently from an external investor, which has brought most creditor obligations back within normal terms.
Investment properties owned by the parent company are in the process of being sold and the proceeds of approximately £2.2m will be applied in reducing group borrowings and future servicing obligations.
New sources of work have been secured in the latter part of 2024/25, which are projected to add significant growth in turnover and profitability over the next 3 years and a return to cash positive trading in the next few months. Strategies are being implemented to further build on sales with exciting opportunities arising as major UK-based companies introduce automated fulfilment centres, which are expected to increase demand for the plastic storage boxes produced by the group.
The directors have prepared profit and loss and cash flow projections at company and group level, allowing for the new sources of income. Those projections demonstrate the company and group’s ability to continue to trade as a going concern for the foreseeable future. As with all projections, there are potential variances in the timing and value of future cash flows. Nevertheless, the directors are confident that the company has access to appropriate financing facilities in the event that financial support is required.
Based on the above, the directors are satisfied that the company and group of which it is a member are a going concern and have prepared the financial statements on that basis.
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.
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.
1.6
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.
Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Software
10% per annum on a straight line basis
Patents & licences
10% per annum on a straight line basis
1.7
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
INVESTMENT CASTING SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 19 -
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
Over the term of the lease on a straight-line basis
Plant and equipment
7.5% per annum on a reducing balance for tooling, 10% per annum on a straight-line basis for other plant and machinery
Fixtures and fittings
20% per annum on a reducing balance basis
Motor vehicles
20% per annum on a straight-line basis
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
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.9
Fixed asset investments
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.
1.10
Impairment of fixed assets
At each reporting period end date, the group 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.
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.
1.11
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.
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.
1.12
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.
INVESTMENT CASTING SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 20 -
1.13
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.
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.
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.
1.14
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.
1.15
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.
INVESTMENT CASTING SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 21 -
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.
1.16
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.
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.18
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.19
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
INVESTMENT CASTING SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 22 -
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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Economic life of plant machinery and tooling
The directors have implemented a continual maintenance programme for various plant, machinery and tooling. This programme has the effect of extending the economic life of various items of plant and machinery, beyond the normal expectations. The policies used are detailed above.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
7,154,337
6,737,143
Europe
507,262
815,391
Rest of the World
447,668
725,395
8,109,267
8,277,929
2024
2023
£
£
Other revenue
Interest income
2,413
274
Grants received
-
13,178
Rental income arising from investment properties
207,404
149,591
Other income
8,735
-
4
Exceptional item
2024
2023
£
£
Expenditure
Exceptional costs of moving to new premises
-
49,057
INVESTMENT CASTING SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
5
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
12,650
(1,933)
Government grants
-
(13,178)
Fees payable to the group's auditor for the audit of the group's financial statements
9,500
9,500
Depreciation of owned tangible fixed assets
270,216
260,855
Depreciation of tangible fixed assets held under finance leases
137,275
181,244
Loss on disposal of tangible fixed assets
10,500
-
Amortisation of intangible assets
8,103
6,483
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
Directors
3
2
3
2
Production
55
52
-
-
Administrative
15
12
-
-
Total
73
66
3
2
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,293,874
2,093,520
-
-
Social security costs
183,272
174,496
-
-
Pension costs
39,396
35,316
-
-
2,516,542
2,303,332
-
-
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
74,670
19,200
Company pension contributions to defined contribution schemes
1,210
-
75,880
19,200
INVESTMENT CASTING SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
2,413
274
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
167,795
134,747
Interest on invoice finance arrangements
105,400
94,706
Other interest on financial liabilities
6,275
78,480
Interest on finance leases and hire purchase contracts
54,620
72,330
Other interest
37,620
(1,210)
Total finance costs
371,710
379,053
10
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
(7,902)
Deferred tax
Origination and reversal of timing differences
(27,240)
32,916
Adjustment in respect of prior periods
(165,491)
(77,928)
Total deferred tax
(192,731)
(45,012)
Total tax credit
(200,633)
(45,012)
INVESTMENT CASTING SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
10
Taxation
(Continued)
- 25 -
The actual credit for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
(Loss)/profit before taxation
(65,081)
375,343
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(16,270)
71,315
Tax effect of expenses that are not deductible in determining taxable profit
8,600
983
Tax effect of utilisation of tax losses not previously recognised
(21,066)
Change in unrecognised deferred tax assets
(9,034)
Adjustments in respect of prior years
(7,902)
Effect of change in corporation tax rate
-
(8,605)
Permanent capital allowances in excess of depreciation
(22,901)
Depreciation on assets not qualifying for tax allowances
1,496
1,156
Deferred tax adjustments in respect of prior years
(165,491)
(77,926)
Taxation credit
(200,633)
(45,012)
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
344,810
347,811
12
Intangible fixed assets
Group
Software
Patents & licences
Total
£
£
£
Cost
At 1 May 2023
65,315
12,111
77,426
Additions
9,355
1,645
11,000
At 30 April 2024
74,670
13,756
88,426
Amortisation and impairment
At 1 May 2023
18,432
2,208
20,640
Amortisation charged for the year
6,839
1,264
8,103
At 30 April 2024
25,271
3,472
28,743
INVESTMENT CASTING SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
12
Intangible fixed assets
(Continued)
- 26 -
Carrying amount
At 30 April 2024
49,399
10,284
59,683
At 30 April 2023
46,883
9,903
56,786
Company
Software
£
Cost
At 1 May 2023
65,315
Additions
9,355
At 30 April 2024
74,670
Amortisation and impairment
At 1 May 2023
18,432
Amortisation charged for the year
6,839
At 30 April 2024
25,271
Carrying amount
At 30 April 2024
49,399
At 30 April 2023
46,883
INVESTMENT CASTING SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 27 -
13
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2023
2,256,600
5,112,855
116,206
9,854
7,495,515
Additions
178,768
1,485
180,253
Disposals
(157,630)
(157,630)
At 30 April 2024
2,256,600
5,133,993
117,691
9,854
7,518,138
Depreciation and impairment
At 1 May 2023
89,752
2,463,556
38,483
9,854
2,601,645
Depreciation charged in the year
90,266
282,516
34,709
407,491
Eliminated in respect of disposals
(134,629)
(134,629)
At 30 April 2024
180,018
2,611,443
73,192
9,854
2,874,507
Carrying amount
At 30 April 2024
2,076,582
2,522,550
44,499
4,643,631
At 30 April 2023
2,166,848
2,649,299
77,723
4,893,870
Company
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2023
1,867,132
4,316,911
116,206
9,854
6,310,103
Additions
105,387
1,485
106,872
Disposals
(157,630)
(157,630)
At 30 April 2024
1,867,132
4,264,668
117,691
9,854
6,259,345
Depreciation and impairment
At 1 May 2023
74,232
2,414,550
38,483
9,854
2,537,119
Depreciation charged in the year
74,687
212,876
34,709
322,272
Eliminated in respect of disposals
(134,629)
(134,629)
At 30 April 2024
148,919
2,492,797
73,192
9,854
2,724,762
Carrying amount
At 30 April 2024
1,718,213
1,771,871
44,499
3,534,583
At 30 April 2023
1,792,900
1,902,361
77,723
3,772,984
INVESTMENT CASTING SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
13
Tangible fixed assets
(Continued)
- 28 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
957,359
995,567
864,937
894,699
14
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 May 2023
3,011,946
3,011,946
Net gains or losses through fair value adjustments
(700,000)
(700,000)
At 30 April 2024
2,311,946
2,311,946
Investment property comprises freehold property held for rental income and its investment potential. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 1 February 2024 by Jones Lang LaSalle Chartered Surveyors, who are not connected with the group.
The valuation was made on an open market value basis by reference to market evidence transaction prices for similar properties.
15
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
16
348,687
348,687
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 May 2023 and 30 April 2024
348,687
Carrying amount
At 30 April 2024
348,687
At 30 April 2023
348,687
16
Subsidiaries
Details of the company's subsidiaries at 30 April 2024 are as follows:
INVESTMENT CASTING SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
16
Subsidiaries
(Continued)
- 29 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Technical Composite Systems Limited
Systems House, 1 Claylands Way, Paignton Devon TQ4 7TY
Ordinary
52.00
Casting Support Systems Limited
Systems House, 1 Clayland Way, Paignton, Devon, TQ4 7TY
Ordinary
100.00
17
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
175,012
208,727
31,000
31,000
Work in progress
561,564
322,343
503,928
103,568
Finished goods and goods for resale
69,289
94,542
13,342
7,275
805,865
625,612
548,270
141,843
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
958,675
1,715,207
260,039
411,069
Corporation tax recoverable
7,902
7,902
Amounts owed by group undertakings
-
-
67,227
126,876
Other debtors
3,296
56,512
5,585
Prepayments and accrued income
15,540
265,640
10,297
243,402
985,413
2,037,359
345,465
786,932
Group
The value of trade debtors which are secured under a confidential discounting agreement is £709,022 (2023: £1,616,005). The cash advanced by the invoice discounting company is included within creditors falling due within one year.
Company
The value of trade debtors which are secured under a confidential discounting agreement is £154,454 (2023: £374,436). The cash advanced by the invoice discounting company is included within creditors falling due within one year.
Amounts owed by group undertakings are unsecured, interest free and repayable on demand.
INVESTMENT CASTING SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 30 -
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
21
983,496
1,269,899
552,893
550,798
Obligations under finance leases
22
181,490
150,562
157,934
129,507
Trade creditors
1,181,042
1,510,573
784,845
636,601
Amounts owed to group undertakings
414,580
379,314
Other taxation and social security
486,537
414,328
106,696
243,883
Other creditors
373,356
363,889
370,174
332,644
Accruals and deferred income
423,798
1,251,513
381,580
384,999
3,629,719
4,960,764
2,768,702
2,657,746
Other creditors include loans from the directors of £297,761 (2023: £267,420) which are unsecured and repayable on demand. Interest of 72,776 (2023: £72,776) has been accrued in relation to directors' loans.
Other creditors include loans from a related party of £69,025 (2023: £62,750) which are unsecured and repayable on demand. Interest is charged at 10%.
20
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
21
1,438,826
1,902,491
1,438,826
1,902,491
Obligations under finance leases
22
429,838
528,941
399,318
474,722
1,868,664
2,431,432
1,838,144
2,377,213
21
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
2,422,322
3,172,390
1,991,719
2,453,289
Payable within one year
983,496
1,269,899
552,893
550,798
Payable after one year
1,438,826
1,902,491
1,438,826
1,902,491
INVESTMENT CASTING SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
21
Loans and overdrafts
(Continued)
- 31 -
The following bank loan facilities existed at the year end:-
Group and company
A mortgage of £851,566 (2023: £913,247) repayable by instalments with a variable interest rate. This is a rolling facility which is renewed every 5 years with the next renewal date being April 2027. The loan is secured by a charge over the group's investment properties.
Coronavirus Business Interruption Loans totalling £690,899 (2023: £980,352), which are unsecured and repayable by instalments over the period to March 2027. The loans bear interest at rates between 3% and 8%.
A Coronavirus Business Interruption Loan of £327,995 (2023: 427,995), repayable by instalments over the period to July 2027 and with a fixed interest rate. The loan is secured by charges over freehold property owned by the company, and a cross company guarantee over the assets held in Casting Support Systems Limited and Technical Composites Systems Limited.
Confidential invoice discounting agreements of £532,362 (2023: £850,796) (Company: £101,759 2023: £131,695). These are secured upon the trade debts to which they relate.
22
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
228,098
204,283
200,317
176,504
In two to five years
475,404
598,002
442,852
537,364
703,502
802,285
643,169
713,868
Less: future finance charges
(92,174)
(122,782)
(85,917)
(109,639)
611,328
679,503
557,252
604,229
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3-5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Finance leases obligations are secured on the assets acquired.
INVESTMENT CASTING SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 32 -
23
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
885,130
902,328
Tax losses
(95,031)
(94,499)
Investment property
122,500
297,500
Expenditure allowable in future periods
(18,195)
(18,194)
894,404
1,087,135
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
638,451
666,354
Investment property
122,500
297,500
Expenditure allowable in future periods
(18,195)
(18,194)
742,756
945,660
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 May 2023
1,087,135
945,660
Credit to profit or loss
(192,731)
(202,904)
Liability at 30 April 2024
894,404
742,756
The deferred tax liability set out above relates to accelerated capital allowances and unrealised gains on investment properties, netted against tax losses which are expected to be relieved against profits of future periods.
24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
39,396
35,316
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
INVESTMENT CASTING SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 33 -
25
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
Ordinary "B" shares of 1p each
400
400
4
4
Ordinary "A" shares of 1p each
9,651
9,651
97
97
10,151
10,151
201
201
The Ordinary, Ordinary A and Ordinary B shares are all entitled to dividends and all are entitled to vote at meetings.
26
Non-distributable profits reserve
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
892,500
461,250
892,500
461,250
Non distributable (losses) / profits in the year
(525,000)
431,250
(525,000)
431,250
At the end of the year
367,500
892,500
367,500
892,500
27
Operating lease commitments
The below relates to a property lease that expires in 2046.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
448,383
454,580
439,844
439,822
Between two and five years
1,820,407
1,793,095
1,796,078
1,781,397
In over five years
9,925,991
10,380,516
9,925,991
10,380,516
12,194,781
12,628,191
12,161,913
12,601,735
INVESTMENT CASTING SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
27
Operating lease commitments
(Continued)
- 34 -
Lessor
The operating leases represent leases of investment properties to third parties. The leases are negotiated over terms of 5 years and rentals are fixed for 5 years. All leases include a provision for five-yearly upward rent reviews according to prevailing market conditions. There are no options in place for either party to extend the lease terms.
At the reporting end date the group had contracted with tenants for the following minimum lease payments:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
207,404
207,404
207,404
207,404
Between two and five years
449,375
656,779
449,375
656,779
656,779
864,183
656,779
864,183
28
Directors' transactions
Dividends totalling £167,037 (2023 - £167,059) were paid in the year in respect of shares held by the company's directors.
29
Controlling party
The ultimate controlling party is Mr E J Head by virtue of his shareholding.
30
Cash generated from group operations
2024
2023
£
£
Profit after taxation
135,552
420,355
Adjustments for:
Taxation credited
(200,633)
(45,012)
Finance costs
371,710
379,053
Investment income
(2,413)
(274)
Loss on disposal of tangible fixed assets
10,500
-
Fair value loss on investment properties
700,000
Amortisation and impairment of intangible assets
8,103
6,483
Depreciation and impairment of tangible fixed assets
407,491
442,099
Movements in working capital:
Increase in stocks
(180,253)
(169,493)
Decrease/(increase) in debtors
1,059,848
(527,635)
(Decrease)/increase in creditors
(1,075,570)
1,298,520
Cash generated from operations
1,234,335
1,804,096
INVESTMENT CASTING SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 35 -
31
Analysis of changes in net debt - group
1 May 2023
Cash flows
New finance leases
30 April 2024
£
£
£
£
Cash at bank and in hand
761,713
(476,767)
-
284,946
Borrowings excluding overdrafts
(3,172,390)
750,068
-
(2,422,322)
Obligations under finance leases
(679,503)
(261,448)
(31,609)
(611,328)
(3,090,180)
11,853
(31,609)
(2,748,704)
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