Company registration number 2346358 (England and Wales)
SOUTH WEST STRUCTURALS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
SOUTH WEST STRUCTURALS LIMITED
COMPANY INFORMATION
Directors
Mr SJ Knowles
Mr GG Watt
Secretary
Mr PR Campbell
Company number
2346358
Registered office
Salisbury House
London Wall
London
EC2M 5PS
Auditor
Cottons Accountants LLP
The Stables
Church Walk
Daventry
Northamptonshire
UK
NN11 4BL
SOUTH WEST STRUCTURALS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
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
Company statement of cash flows
16
Notes to the financial statements
17 - 33
SOUTH WEST STRUCTURALS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 1 -
The directors present the strategic report for the year ended 31 March 2025.
Review of the business
The principal activity of the group is that of traders of steel and associated products.
The directors consider that both the level of business and the financial position at the end of the year continue to be satisfactory. The group continues to strive to grow the customer and product base, whilst maintaining historical business relationships.
The group continues to enjoy an excellent reputation as one of few medium-sized independent steel traders able to compete with the large groups in its selected product and sale areas.
Steel by nature is a highly recyclable product. The group favours steel produced from scrap and endeavours to keep vehicle movements to a minimum. It is the policy of the group, where possible, to ship in bulk to reduce ship movements.
The group continues to respect the personal concerns and requirements of all staff.
Principal risks and uncertainties
The group is exposed to interest rate risk on its borrowings and is reliant upon facilities with its bankers (and related parties), which presents both liquidity and cash-flow risks. The directors are of the opinion that the group's bankers are currently satisfied with the group's financial performance and do not believe that there is any immediate risk of facilities being withdrawn. The group endeavors to always operate with a margin of available banking facilities.
The group is exposed to foreign exchange risk due to the nature of large foreign currency transactions. This is significantly mitigated through the use of forward exchange agreements matched to foreign currency contractual liabilities. There is a small residual risk attached to the possibility of being under or over-covered on contracts, but the directors consider this to be minimal.
Credit risk is mitigated through sales being credit insured or covered by security (either by way of letters of credit or cash deposits). The policy of the group is that all customers who wish to trade on credit terms with the group are subject to credit verification procedures. Receivables balances are monitored on an ongoing basis.
Commodity price risk is mitigated through the group principally operating with back-to-back trades, contractually covered with both supplier and customer.
Development and performance
Future developments
The directors note a satisfactory start to the new financial year. However, it is foreseen that UK Government policies on taxation and subsidy, together with import restrictions, may have an unpredictable impact during the year. Such impact may not be negative if UK construction is a beneficiary of these policies. The directors do not currently see a major impact upon the medium-term stability of the company and its finances.
Key performance indicators
The group's key financial and other performance indicators during the year were as follows:
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Return on capital employed | | | |
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SOUTH WEST STRUCTURALS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 2 -
Slavery and Human Trafficking Statement
The Modern Slavery Act 2015 requires certain businesses to publish a statement setting out the steps taken in the previous financial year to ensure that slavery and human trafficking is not taking place in their supply chains or own business.
Our supply chain
The group is committed to working with its supply chain and customer base to ensure that they are aware of their responsibilities under the Modern Slavery Act 2015 and that all parties remain committed to tacking the problems through their own actions.
The products sold or utilised by the group are primarily sourced from long-standing suppliers located world-wide. We work closely with steel producers all over the world and aim to visit these suppliers a minimum of once a year in order to keep in close contact with all levels of management throughout the supplier and in order to understand any changes in their production or raw material procurement.
The group does not knowingly deal with any businesses that are involved in slavery or human trafficking but does understand that this is a hidden problem that must be tackled in conjunction with suppliers. It is also fully aware of the issues and the group policy is stated in this document.
Employees
All employees involved in procurement are aware if the Modern Slavery Act 2015 and understand the requirement to report any suspicions that they may have of any violations on the part of any of our suppliers. They will also be kept advised of any changes to the act in the future.
If any violation is found through our engagement processes we will take action to address the situation, taking into consideration the interests of those whose rights have been violated.
This policy will be reviewed annually unless circumstances demand a more frequent review.
This statement is made pursuant to section 54 of the Modern Slavery Act 2015 and constitutes the group's slavery and human trafficking statement for the year ended 31st March 2025.
SOUTH WEST STRUCTURALS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 3 -
Section 172 Statement
The board of directors of South West Structurals Group consider that they have acted in good faith in a way that would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1) (a-f) of the Companies Act 2006) in the decisions taken during the year ended 31 March 2025.
Specific ways we addressed the needs of our stakeholders are:
Our customers
Consideration of our customers is integrated throughout our business
We focus on delivering a high level of customer service and satisfaction by understanding our customers' needs and requirements
We continue to work closely with our customers to ensure the highest level of customer service is provided
Our suppliers
We use external suppliers to provide the products we sell
We need to ensure our suppliers are providing high quality goods that meet our customers' expectations
We review all our suppliers in line with our company practices and modern slavery regulations before we commit to using them
Our people
Our people's health, safety, wellbeing and development are central to our business
We recognise that diversity and inclusion are key to developing our people and encourage people to be themselves at work
Our community and environment
Our shareholders
Shareholders are actively involved in strategic decision making
All directors are part of the senior leadership team, who meet regularly to discuss the company strategy
Mr SJ Knowles
Director
31 July 2025
SOUTH WEST STRUCTURALS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 4 -
The directors present their annual report and financial statements for the year ended 31 March 2025.
Principal activities
The principal activity of the company continued to be that of a holding company and for the group continued to be that of traders of steel and related products.
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. 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 SJ Knowles
Mr GG Watt
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.
On behalf of the board
Mr SJ Knowles
Director
31 July 2025
SOUTH WEST STRUCTURALS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2025
- 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.
SOUTH WEST STRUCTURALS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SOUTH WEST STRUCTURALS LIMITED
- 6 -
Opinion
We have audited the financial statements of South West Structurals Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 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, the company 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 March 2025 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.
SOUTH WEST STRUCTURALS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SOUTH WEST STRUCTURALS LIMITED
- 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industry;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, anti-bribery, employment, environmental and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of factual, suspected and alleged fraud;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
maintaining professional skepticism throughout the audit.
SOUTH WEST STRUCTURALS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SOUTH WEST STRUCTURALS LIMITED
- 8 -
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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.
Richard Wilch FCCA (Senior Statutory Auditor)
For and on behalf of Cottons Accountants LLP, Statutory Auditor
Chartered Accountants
The Stables
Church Walk
Daventry
Northamptonshire
NN11 4BL
UK
31 July 2025
SOUTH WEST STRUCTURALS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2025
- 9 -
2025
2024
Notes
£
£
Turnover
3
55,604,221
60,120,821
Cost of sales
(49,313,691)
(53,007,302)
Gross profit
6,290,530
7,113,519
Administrative expenses
(3,986,457)
(4,780,974)
Operating profit
6
2,304,073
2,332,545
Interest receivable and similar income
9
148,737
146,311
Interest payable and similar expenses
8
(657,613)
(877,203)
Profit before taxation
1,795,197
1,601,653
Tax on profit
10
(448,042)
(443,399)
Profit for the financial year
22
1,347,155
1,158,254
Profit for the financial year is attributable to:
- Owner of the parent company
1,293,328
1,128,999
- Non-controlling interests
53,827
29,255
1,347,155
1,158,254
SOUTH WEST STRUCTURALS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
- 10 -
2025
2024
£
£
Profit for the year
1,347,155
1,158,254
Other comprehensive income
-
-
Cash flow hedges gain arising in the year
Total comprehensive income for the year
1,347,155
1,158,254
Total comprehensive income for the year is attributable to:
- Owners of the parent company
1,293,328
1,128,999
- Non-controlling interests
53,827
29,255
1,347,155
1,158,254
SOUTH WEST STRUCTURALS LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2025
31 March 2025
- 11 -
2025
2024
Notes
£
£
£
£
Fixed assets
Intangible assets
Tangible assets
11
882,424
927,034
882,424
927,034
Current assets
Stocks
14
9,915,688
11,220,453
Debtors
15
15,506,098
12,558,894
Cash at bank and in hand
3,897,216
7,609,010
29,319,002
31,388,357
Creditors: amounts falling due within one year
16
(12,140,486)
(15,560,074)
Net current assets
17,178,516
15,828,283
Total assets less current liabilities
18,060,940
16,755,317
Provisions for liabilities
Provisions
18
38,468
80,000
(38,468)
(80,000)
Net assets
18,022,472
16,675,317
Capital and reserves
Called up share capital
21
140,000
140,000
Share premium account
22
1,485,000
1,485,000
Capital redemption reserve
22
25,000
25,000
Profit and loss reserves
22
16,029,233
14,735,905
Equity attributable to owner of the parent company
17,679,233
16,385,905
Non-controlling interests
343,239
289,412
Total equity
18,022,472
16,675,317
The financial statements were approved by the board of directors and authorised for issue on 31 July 2025 and are signed on its behalf by:
31 July 2025
Mr SJ Knowles
Director
Company registration number 2346358 (England and Wales)
SOUTH WEST STRUCTURALS LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2025
31 March 2025
- 12 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
11
82,926
84,552
Investments
12
554,345
554,345
637,271
638,897
Current assets
Debtors
15
20,447,955
21,775,096
Cash at bank and in hand
3,265
2,949
20,451,220
21,778,045
Creditors: amounts falling due within one year
16
(6,622,942)
(8,952,605)
Net current assets
13,828,278
12,825,440
Total assets less current liabilities
14,465,549
13,464,337
Provisions for liabilities
Provisions
18
38,468
80,000
(38,468)
(80,000)
Net assets
14,427,081
13,384,337
Capital and reserves
Called up share capital
21
140,000
140,000
Share premium account
22
1,485,000
1,485,000
Capital redemption reserve
22
25,000
25,000
Profit and loss reserves
22
12,777,081
11,734,337
Total equity
14,427,081
13,384,337
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 £1,042,744 (2024 - £951,226 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 31 July 2025 and are signed on its behalf by:
31 July 2025
Mr SJ Knowles
Director
Company registration number 2346358 (England and Wales)
SOUTH WEST STRUCTURALS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 13 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
£
£
Balance at 1 April 2023
140,000
1,485,000
25,000
13,606,906
15,256,906
260,000
15,516,906
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
-
1,128,999
1,128,999
29,255
1,158,254
Other movements
-
-
-
-
-
157
157
Balance at 31 March 2024
140,000
1,485,000
25,000
14,735,905
16,385,905
289,412
16,675,317
Year ended 31 March 2025:
Profit and total comprehensive income
-
-
-
1,293,328
1,293,328
53,827
1,347,155
Balance at 31 March 2025
140,000
1,485,000
25,000
16,029,233
17,679,233
343,239
18,022,472
SOUTH WEST STRUCTURALS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 14 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 April 2023
140,000
1,485,000
25,000
10,783,111
12,433,111
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
-
951,226
951,226
Balance at 31 March 2024
140,000
1,485,000
25,000
11,734,337
13,384,337
Year ended 31 March 2025:
Profit and total comprehensive income
-
-
-
1,042,744
1,042,744
Balance at 31 March 2025
140,000
1,485,000
25,000
12,777,081
14,427,081
SOUTH WEST STRUCTURALS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
- 15 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
26
(1,722,301)
10,922,052
Interest paid
(657,613)
(877,203)
Income taxes paid
(344,904)
(823,332)
Net cash (outflow)/inflow from operating activities
(2,724,818)
9,221,517
Investing activities
Purchase of tangible fixed assets
(14,334)
(67,291)
Proceeds from disposal of tangible fixed assets
-
12,500
Interest received
148,737
146,311
Net cash generated from investing activities
134,403
91,520
Financing activities
Repayment of borrowings
(1,150,600)
(1,340,656)
Repayment of bank loans
-
(3,161,243)
Net cash used in financing activities
(1,150,600)
(4,501,899)
Net (decrease)/increase in cash and cash equivalents
(3,741,015)
4,811,138
Cash and cash equivalents at beginning of year
7,609,010
2,797,872
Cash and cash equivalents at end of year
3,867,995
7,609,010
Relating to:
Cash at bank and in hand
3,897,216
7,609,010
Bank overdrafts included in creditors payable within one year
(29,221)
-
SOUTH WEST STRUCTURALS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
- 16 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
27
(74,975)
388,398
Interest paid
(639,676)
(817,946)
Income taxes paid
(230,042)
(701,534)
Net cash outflow from operating activities
(944,693)
(1,131,082)
Investing activities
Interest received
2,095,609
2,105,573
Net cash generated from investing activities
2,095,609
2,105,573
Financing activities
Repayment of borrowings
(1,150,600)
(986,111)
Net cash used in financing activities
(1,150,600)
(986,111)
Net increase/(decrease) in cash and cash equivalents
316
(11,620)
Cash and cash equivalents at beginning of year
2,949
14,569
Cash and cash equivalents at end of year
3,265
2,949
SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
- 17 -
1
Accounting policies
Company information
South West Structurals Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Salisbury House, London Wall, London, England, EC2M 5PS.
The group consists of South West Structurals 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. The principal accounting policies adopted are set out below.
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.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company South West Structurals 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 31 March 2025. 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.
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.
SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 18 -
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.
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
Over 50 years
Leasehold land and buildings
Over the period of the lease
Fixtures and fittings
4-7 years straight line
Computers
2-3 years straight line
Motor vehicles
4 years straight line
No depreciation is provided on the land element of freehold land and buildings.
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.
1.7
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.
SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 19 -
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.
1.8
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.
SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 20 -
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.10
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11
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.
SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 21 -
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.
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.
SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 22 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.12
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.
1.13
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.
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.
1.14
Provisions
Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 23 -
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.
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.
3
Turnover and other revenue
2025
2024
£
£
Other revenue
Interest income
148,737
146,311
4
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
4,825
2,925
Audit of the financial statements of the company's subsidiaries
23,776
25,062
28,601
27,987
SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 24 -
5
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2025
2024
2025
2024
Number
Number
Number
Number
Sales and administration
11
11
-
-
Distribution
3
3
-
-
Directors
7
7
2
2
Total
21
21
2
2
Their aggregate remuneration comprised:
Group
Company
2025
2024
2025
2024
£
£
£
£
Wages and salaries
2,368,497
3,135,991
940,000
1,250,000
Social security costs
335,459
434,733
132,120
171,244
Pension costs
106,505
56,737
2,810,461
3,627,461
1,072,120
1,421,244
6
Operating profit
2025
2024
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(33,791)
1,078
Depreciation of owned tangible fixed assets
58,944
74,098
Profit on disposal of tangible fixed assets
-
(12,500)
Operating lease charges
65,052
68,316
7
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
940,000
600,000
SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
7
Directors' remuneration
(Continued)
- 25 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
940,000
600,000
8
Interest payable and similar expenses
2025
2024
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
18,064
57,328
Other interest on financial liabilities
639,549
818,065
657,613
875,393
Other finance costs:
Other interest
-
1,810
Total finance costs
657,613
877,203
9
Interest receivable and similar income
2025
2024
£
£
Interest income
Bank interest received
136,766
107,490
Other interest income
11,971
38,821
Total income
148,737
146,311
10
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
459,097
444,242
Deferred tax
Origination and reversal of timing differences
(11,055)
(843)
Total tax charge
448,042
443,399
SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
10
Taxation
(Continued)
- 26 -
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:
2025
2024
£
£
Profit before taxation
1,795,197
1,601,653
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
448,799
400,413
Tax effect of expenses that are not deductible in determining taxable profit
5,919
23,774
Change in unrecognised deferred tax assets
(36,729)
33,561
Permanent capital allowances in excess of depreciation
(4,178)
(2,092)
Depreciation on assets not qualifying for tax allowances
8,806
11,862
Tax (decrease)/increase from effect of capital allowances and depreciation
23,250
(47,000)
Profit adjustments from director bonus c/fwd
(522)
17,534
Movement in deferred tax
2,697
5,347
Taxation charge
448,042
443,399
11
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2024
979,886
131,712
75,966
30,809
166,643
1,385,016
Additions
7,289
7,045
14,334
At 31 March 2025
987,175
131,712
83,011
30,809
166,643
1,399,350
Depreciation and impairment
At 1 April 2024
237,088
47,160
52,958
30,011
90,765
457,982
Depreciation charged in the year
14,744
1,626
9,481
799
32,294
58,944
At 31 March 2025
251,832
48,786
62,439
30,810
123,059
516,926
Carrying amount
At 31 March 2025
735,343
82,926
20,572
(1)
43,584
882,424
At 31 March 2024
742,798
84,552
23,008
798
75,878
927,034
SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
11
Tangible fixed assets
(Continued)
- 27 -
Company
Leasehold land and buildings
£
Cost
At 1 April 2024 and 31 March 2025
131,712
Depreciation and impairment
At 1 April 2024
47,160
Depreciation charged in the year
1,626
At 31 March 2025
48,786
Carrying amount
At 31 March 2025
82,926
At 31 March 2024
84,552
The carrying value of land and buildings comprises freehold land at net book value of £250,000 (2024: £250,000) and freehold buildings and improvements at net book value of £478,000 (2024: £492,798).
Group
Company
2025
2024
2025
2024
£
£
£
£
Freehold
728,200
742,798
12
Fixed asset investments
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Investments in subsidiaries
13
554,345
554,345
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2024 and 31 March 2025
554,345
Carrying amount
At 31 March 2025
554,345
At 31 March 2024
554,345
SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 28 -
13
Subsidiaries
Details of the company's subsidiaries at 31 March 2025 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Kromat Trading Limited
Salisbury House, London Wall, London, EC2M 5PS
Ordinary
76.00
-
Tubetrade PLC
As above
Ordinary
85.86
-
Ramsteel Tubes Limited
As above
Ordinary
0
85.86
14
Stocks
Group
Company
2025
2024
2025
2024
£
£
£
£
Finished goods and goods for resale
9,915,688
11,220,453
15
Debtors
Group
Company
2025
2024
2025
2024
Amounts falling due within one year:
£
£
£
£
Trade debtors
14,795,448
11,994,793
Corporation tax recoverable
34,616
132,383
14,301
132,383
Other debtors
265,667
127,323
20,433,616
21,642,658
Prepayments and accrued income
269,590
174,673
38
55
15,365,321
12,429,172
20,447,955
21,775,096
Amounts falling due after more than one year:
Deferred tax asset (note 19)
140,777
129,722
Total debtors
15,506,098
12,558,894
20,447,955
21,775,096
SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 29 -
16
Creditors: amounts falling due within one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans and overdrafts
17
29,221
Other borrowings
17
6,375,486
7,526,086
6,375,486
7,526,086
Trade creditors
2,563,969
4,012,305
5,957
Corporation tax payable
131,229
114,803
Other taxation and social security
1,525,875
1,016,863
30,000
171,244
Other creditors
82,000
79,500
5,949
Accruals and deferred income
1,432,706
2,810,517
205,550
1,255,275
12,140,486
15,560,074
6,622,942
8,952,605
17
Loans and overdrafts
Group
Company
2025
2024
2025
2024
£
£
£
£
Bank overdrafts
29,221
Other loans
6,375,486
7,526,086
6,375,486
7,526,086
6,404,707
7,526,086
6,375,486
7,526,086
Payable within one year
6,404,707
7,526,086
6,375,486
7,526,086
The bank indebtedness is secured by a debenture in favour of the group's bankers
18
Provisions for liabilities
Group
Company
2025
2024
2025
2024
£
£
£
£
Foreign exchange
38,468
80,000
38,468
80,000
Movements on provisions:
Foreign exchange
Group
£
Additional provisions in the year
38,468
SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
18
Provisions for liabilities
(Continued)
- 30 -
Foreign exchange
Company
£
Additional provisions in the year
38,468
The provision represents the Directors' prudent estimate of the potential foreign exchange difference arising from the repayment of the the loan provided by Mr S Knowles, repayable in euros to the equivalent of £4,800,000.
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Assets
Assets
2025
2024
Group
£
£
Accelerated capital allowances
18,528
15,049
Retirement benefit obligations
16,750
40,000
Other
105,499
74,673
140,777
129,722
The company has no deferred tax assets or liabilities.
Group
Company
2025
2025
Movements in the year:
£
£
Asset at 1 April 2024
(129,722)
-
Credit to profit or loss
(11,055)
-
Asset at 31 March 2025
(140,777)
-
20
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
106,505
56,737
SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
20
Retirement benefit schemes
(Continued)
- 31 -
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.
21
Share capital
Group and company
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
140,000
140,000
140,000
140,000
The company has one class of ordinary shares which carry no right to fixed income. The shares carry the right to participate in any distribution of the company with respects both capital and dividends. The shares carry rights to participate in a vote of the members, whether by poll or show of hands.
22
Reserves
Share premium
The share premium account represents the excess of amounts subscribed above the nominal value of allotted shares.
Capital redemption reserve
The capital redemption reserve represents the nominal value of own shares purchased and cancelled in 2006.
23
Operating lease commitments
Lessee
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
2025
2024
2025
2024
£
£
£
£
Within one year
37,368
37,992
-
-
Between two and five years
58,405
95,772
-
-
95,773
133,764
-
-
SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 32 -
24
Directors' transactions
During the year, Tubetrade plc provided advances and loans to certain directors.
As at 31 March 2025, Mr P McCammon owed the company £20,000 (2024: £20,000). This balance is interest free and repayable on demand.
As at 31 March 2025, Mr D Howells owed the company £2,200 (2024: £5,000). This balance is interest free and repayable on demand.
As at 31 March 2025, Mr D Howells owed the company £57,994 (2024: £62,325). This loan is subject to 2% interest. The interest charged during the year was £1,169 (2024: £1,255). This loan is repayable on demand.
At 31 March 2025 a balance was payable by South West Structurals Limited to a director of £6,375,486 (2024: £7,526,086). Interest arose on the loan during the year of £600,668 (2024: £817,946).
25
Controlling party
The ultimate controlling party is Mr S J Knowles, a director of the company.
26
Cash (absorbed by)/generated from group operations
2025
2024
£
£
Profit after taxation
1,347,155
1,158,253
Adjustments for:
Taxation charged
448,042
443,399
Finance costs
657,613
877,203
Investment income
(148,737)
(146,311)
Gain on disposal of tangible fixed assets
-
(12,500)
Depreciation and impairment of tangible fixed assets
58,944
74,098
Decrease in provisions
(41,532)
-
Movements in working capital:
Decrease in stocks
1,304,765
3,959,389
(Increase)/decrease in debtors
(3,033,916)
4,525,870
(Decrease)/increase in creditors
(2,314,635)
42,651
Cash (absorbed by)/generated from operations
(1,722,301)
10,922,052
SOUTH WEST STRUCTURALS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 33 -
27
Cash (absorbed by)/generated from operations - company
2025
2024
£
£
Profit after taxation
1,042,744
951,226
Adjustments for:
Taxation charged
348,124
317,618
Finance costs
639,676
817,946
Investment income
(2,095,609)
(2,105,573)
Depreciation and impairment of tangible fixed assets
1,626
1,626
Decrease in provisions
(41,532)
-
Movements in working capital:
Decrease in debtors
1,209,059
161,485
(Decrease)/increase in creditors
(1,179,063)
244,070
Cash (absorbed by)/generated from operations
(74,975)
388,398
28
Analysis of changes in net funds/(debt) - group
1 April 2024
Cash flows
31 March 2025
£
£
£
Cash at bank and in hand
7,609,010
(3,711,794)
3,897,216
Bank overdrafts
(29,221)
(29,221)
7,609,010
(3,741,015)
3,867,995
Borrowings excluding overdrafts
(7,526,086)
1,150,600
(6,375,486)
82,924
(2,590,415)
(2,507,491)
29
Analysis of changes in net debt - company
1 April 2024
Cash flows
31 March 2025
£
£
£
Cash at bank and in hand
2,949
316
3,265
Borrowings excluding overdrafts
(7,526,086)
1,150,600
(6,375,486)
(7,523,137)
1,150,916
(6,372,221)
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