Company registration number 01101489 (England and Wales)
CAPITAL REFRACTORIES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
CAPITAL REFRACTORIES LIMITED
COMPANY INFORMATION
Directors
M L Stuart-Harris
J P R Newsome
Secretary
D H Newsome
Company number
01101489
Registered office
Capital Refractories Limited
Station Road
Clowne
S43 4AB
Auditor
BHP LLP
Albert Works
Sidney Street
Sheffield
S1 4RG
Bankers
Lloyds Bank
1 High Street
Sheffield
S1 2GA
CAPITAL REFRACTORIES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8 - 9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 35
CAPITAL REFRACTORIES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 1 -
The directors present the strategic report for the year ended 30 November 2024.
Fair review of the business
The principal activity of the group continues to be the manufacture and sale of refractory materials, ceramic cores and related products.
The directors report a group profit of £3.6m (2023: £3.1m) for the year ended 30 November 2024.
Group cash has decreased this year by £291k.
The directors are confident in the future growth opportunities for the company. They believe that the company is in a good financial position and identified risks are being well managed, with careful focus on appropriate diversification and development of new products.
The Group is seeing the benefit of its ongoing investment in R&D and innovation with the success of its Biomass and Ceramic Filters product ranges. The Group continued to invest in new production capacity at its manufacturing sites to support future growth.
Principal risks and uncertainties
Given the nature of the group’s activities, the directors regard the principal risks to be exposure from the key overseas markets in which the group operates including foreign currency and global supply chain. The directors regularly review their risks and take appropriate action to mitigate them.
Future developments
The directors will continue to develop strategic plans to improve the long term performance of the business. The group is committed to innovation and investment, so as to maintain its position at the forefront of the refractory lining and technical ceramic industry.
Key performance indicators
The principal key performance indicators used by the directors to monitor the group are as follows:
Turnover - £45m (2023: £47m)
Gross profit - £16.2m (2023: £16.6m)
Operating profit - £4.9m (2023: £4.3m)
J P R Newsome
Director
11 August 2025
CAPITAL REFRACTORIES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 2 -
The directors present their annual report and financial statements for the year ended 30 November 2024.
Principal activities
The principal activities of the group continued to be those of the manufacture and sale of refractory materials, ceramic cores and related products.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £850,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
M L Stuart-Harris
J P R Newsome
Research and development
The group engages in research and development activities with the main activities being process improvement.
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The group's policy is to consult and discuss with employees at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
Auditor
The auditor, BHP, Chartered Accountants, are deemed to be reappointed under section 487 (2) of the Companies Act 2006.
Energy and carbon report
As no single entity within the group is classified as large, it is not required to report on its emissions, energy consumption or energy efficiency activities.
CAPITAL REFRACTORIES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 3 -
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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.
Strategic report
The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments.
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
J P R Newsome
Director
11 August 2025
CAPITAL REFRACTORIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CAPITAL REFRACTORIES LIMITED
- 4 -
Opinion
We have audited the financial statements of Capital Refractories Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 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 November 2024 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
CAPITAL REFRACTORIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CAPITAL REFRACTORIES LIMITED
- 5 -
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.
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 the directors and other management, and from our commercial knowledge and experience of the sector
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 Companies Act 2006, taxation legislation, employment 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
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
CAPITAL REFRACTORIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CAPITAL REFRACTORIES LIMITED
- 6 -
We assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
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
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
discussions with senior management regarding relevant regulations and reviewing the company’s legal and professional fees
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
Adrian Staniforth (Senior Statutory Auditor)
For and on behalf of BHP LLP, Statutory Auditor
Chartered Accountants
Albert Works
Sidney Street
Sheffield
S1 4RG
12 August 2025
CAPITAL REFRACTORIES LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 7 -
2024
2023
as restated
Notes
£
£
Turnover
3
44,973,369
47,353,674
Cost of sales
(28,741,234)
(30,739,159)
Gross profit
16,232,135
16,614,515
Distribution costs
(46,373)
(66,795)
Administrative expenses
(11,359,349)
(12,287,659)
Other operating income
106,267
24,220
Operating profit
4
4,932,680
4,284,281
Interest receivable and similar income
9
93,876
49,055
Interest payable and similar expenses
8
(99,697)
(36,354)
Change in fair value of financial assets
10
46,421
-
Profit before taxation
4,973,280
4,296,982
Tax on profit
11
(1,334,401)
(1,196,606)
Profit for the financial year
3,638,879
3,100,376
Other comprehensive income
Currency translation loss taken to retained earnings
(557,878)
(389,472)
Total comprehensive income for the year
3,081,001
2,710,904
Profit for the financial year is attributable to:
- Owners of the parent company
3,224,818
2,557,200
- Non-controlling interests
414,061
543,176
3,638,879
3,100,376
Total comprehensive income for the year is attributable to:
- Owners of the parent company
2,666,940
2,167,728
- Non-controlling interests
414,061
543,176
3,081,001
2,710,904
The profit and loss account has been prepared on the basis that all operations are continuing operations.
CAPITAL REFRACTORIES LIMITED
GROUP BALANCE SHEET
AS AT 30 NOVEMBER 2024
30 November 2024
- 8 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
13
189,128
292,066
Other intangible assets
13
152,316
169,946
Total intangible assets
341,444
462,012
Tangible assets
14
8,548,577
7,814,665
Investments
15
493,327
126,044
9,383,348
8,402,721
Current assets
Stocks
17
8,059,402
7,080,292
Debtors
18
11,411,263
10,015,994
Cash at bank and in hand
7,622,610
8,250,940
27,093,275
25,347,226
Creditors: amounts falling due within one year
19
(6,261,550)
(6,111,254)
Net current assets
20,831,725
19,235,972
Total assets less current liabilities
30,215,073
27,638,693
Creditors: amounts falling due after more than one year
20
(1,358,099)
(992,720)
Provisions for liabilities
Deferred tax liability
23
846,000
616,000
(846,000)
(616,000)
Net assets
28,010,974
26,029,973
Capital and reserves
Called up share capital
25
15,000
15,000
Revaluation reserve
120,246
120,246
Profit and loss reserves
26,229,433
24,412,493
Equity attributable to owners of the parent company
26,364,679
24,547,739
Non-controlling interests
1,646,295
1,482,234
Total equity
28,010,974
26,029,973
CAPITAL REFRACTORIES LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT 30 NOVEMBER 2024
30 November 2024
- 9 -
The financial statements were approved by the board of directors and authorised for issue on 11 August 2025 and are signed on its behalf by:
11 August 2025
M L Stuart-Harris
J P R Newsome
Director
Director
Company registration number 01101489 (England and Wales)
CAPITAL REFRACTORIES LIMITED
COMPANY BALANCE SHEET
AS AT 30 NOVEMBER 2024
30 November 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
13
996
996
Tangible assets
14
1,446,273
1,500,450
Investments
15
861,451
730,745
2,308,720
2,232,191
Current assets
Stocks
17
2,919,548
2,631,097
Debtors
18
5,591,617
4,107,416
Cash at bank and in hand
2,424,991
2,281,002
10,936,156
9,019,515
Creditors: amounts falling due within one year
19
(1,917,251)
(1,722,740)
Net current assets
9,018,905
7,296,775
Total assets less current liabilities
11,327,625
9,528,966
Creditors: amounts falling due after more than one year
20
(8,900)
(29,102)
Provisions for liabilities
Deferred tax liability
23
230,000
221,000
(230,000)
(221,000)
Net assets
11,088,725
9,278,864
Capital and reserves
Called up share capital
25
15,000
15,000
Profit and loss reserves
11,073,725
9,263,864
Total equity
11,088,725
9,278,864
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 £2,659,862 (2023 - £1,781,212 profit).
The financial statements were approved by the board of directors and authorised for issue on 11 August 2025 and are signed on its behalf by:
11 August 2025
M L Stuart-Harris
J P R Newsome
Director
Director
Company registration number 01101489 (England and Wales)
CAPITAL REFRACTORIES LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
As restated for the period ended 30 November 2023:
Balance at 1 December 2022
15,000
120,246
23,213,947
23,349,193
1,537,315
24,886,508
Year ended 30 November 2023:
Profit for the year
-
-
2,557,200
2,557,200
543,176
3,100,376
Other comprehensive income:
Currency translation differences
-
-
(389,472)
(389,472)
-
(389,472)
Total comprehensive income
-
-
2,167,728
2,167,728
543,176
2,710,904
Dividends
12
-
-
(1,217,439)
(1,217,439)
(350,000)
(1,567,439)
Other movements
-
-
248,257
248,257
(248,257)
-
Balance at 30 November 2023
15,000
120,246
24,412,493
24,547,739
1,482,234
26,029,973
Year ended 30 November 2024:
Profit for the year
-
-
3,224,818
3,224,818
414,061
3,638,879
Other comprehensive income:
Currency translation differences
-
-
(557,878)
(557,878)
-
(557,878)
Total comprehensive income
-
-
2,666,940
2,666,940
414,061
3,081,001
Dividends
12
-
-
(850,000)
(850,000)
(250,000)
(1,100,000)
Balance at 30 November 2024
15,000
120,246
26,229,433
26,364,679
1,646,295
28,010,974
CAPITAL REFRACTORIES LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 December 2022
15,000
8,682,652
8,697,652
Year ended 30 November 2023:
Profit and total comprehensive income for the year
-
1,781,212
1,781,212
Dividends
-
(1,200,000)
(1,200,000)
Balance at 30 November 2023
15,000
9,263,864
9,278,864
Year ended 30 November 2024:
Profit and total comprehensive income
-
2,659,861
2,659,861
Dividends
-
(850,000)
(850,000)
Balance at 30 November 2024
15,000
11,073,725
11,088,725
CAPITAL REFRACTORIES LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 13 -
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
4,115,128
7,599,367
Interest paid
(99,697)
(36,354)
Income taxes paid
(994,350)
(1,493,432)
Net cash inflow from operating activities
3,021,081
6,069,581
Investing activities
Purchase of intangible assets
-
(176,295)
Purchase of tangible fixed assets
(2,483,390)
(3,231,908)
Proceeds from disposal of tangible fixed assets
89,353
87,352
Proceeds from disposal of subsidiaries, net of cash disposed
-
(14,122)
Purchase of investments
(320,862)
-
Repayment of loans
66,002
(114,075)
Interest received
93,876
49,055
Net cash used in investing activities
(2,555,021)
(3,399,993)
Financing activities
Proceeds from new bank loans
847,000
1,033,000
Repayment of bank loans
(382,326)
(666,442)
Purchase of derivatives
-
(20,594)
Payment of finance leases obligations
(121,957)
(215,688)
Dividends paid to equity shareholders
(850,000)
(1,217,439)
Dividends paid to non-controlling interests
(250,000)
(350,000)
Net cash used in financing activities
(757,283)
(1,437,163)
Net (decrease)/increase in cash and cash equivalents
(291,223)
1,232,425
Cash and cash equivalents at beginning of year
8,250,940
7,137,587
Effect of foreign exchange rates
(337,107)
(119,072)
Cash and cash equivalents at end of year
7,622,610
8,250,940
CAPITAL REFRACTORIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 14 -
1
Accounting policies
Company information
Capital Refractories Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Station Road, Clowne, S43 4AB.
The group consists of Capital Refractories 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 certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
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’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’ – Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
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.
CAPITAL REFRACTORIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Capital Refractories Ltd together with all entities controlled by the parent company (its subsidiaries unless excluded see below) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 30 November 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.
PT Caprefindo Manufacturing has been excluded from the consolidation on the basis that the company is dormant and its inclusion is not material for the purpose of giving a true and fair view.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.7
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
1.8
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.
CAPITAL REFRACTORIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 16 -
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 Buildings
30/40 years straight line
Leasehold improvements
20% reducing balance
Plant & machinery
15%/20% reducing balance
Fixtures, fittings & equipment
15% reducing balance
Motor vehicles
25% reducing balance
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.
1.9
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.
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.
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.
CAPITAL REFRACTORIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 17 -
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.
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.
1.12
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.
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.
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.
CAPITAL REFRACTORIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 18 -
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 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
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.
CAPITAL REFRACTORIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.15
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.16
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.
1.17
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.
1.18
Retirement benefits
Pension contributions in respect of certain employees are charged to the profit and loss account as incurred.
1.19
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.
CAPITAL REFRACTORIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 20 -
1.20
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account. Exchange differences arising on the re-translation of the opening net investments in subsidiary undertakings are taken to reserves.
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.
Tangible assets
The charge in respect of depreciation is derived after determining an estimate of an asset's expected useful life and the expected residual value at the end of its life. The useful lives and residual values of the company's assets may vary depending on several factors such as, technological innovation, maintenance programmes and future market conditions. They are determined by management at the time the asset is acquired and reviewed annually for appropriateness.
Recoverability of trade debtors
The directors make provisions for doubtful debts based on an assessment of the recoverability of trade debtors. Provisions are applied to trade debtors where events or changes in circumstances indicate that the carrying amounts may not be recoverable. This methodology is applied on a customer by customer basis.
3
Turnover
An analysis of the group's turnover is as follows:
2024
2023
£
£
Turnover analysed by geographical market
UK
5,466,606
6,595,651
EC & Europe
8,540,383
8,161,881
Rest of the World
30,966,380
32,596,142
44,973,369
47,353,674
No further geographical split of sales is presented as in the opinion of the directors this would be prejudicial to the interests of the entity.
CAPITAL REFRACTORIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 21 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
214,513
305,374
Research and development costs
109,389
82,976
Depreciation of owned tangible fixed assets
1,371,392
1,000,061
Depreciation of tangible fixed assets held under finance leases
68,575
93,982
Profit on disposal of tangible fixed assets
(612)
(20,036)
Amortisation of intangible assets
120,568
110,283
Operating lease charges
450,073
369,078
5
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
Production staff
163
164
17
23
Administration staff
72
63
34
26
Selling and distribution staff
34
39
9
11
Total
269
266
60
60
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
8,612,416
8,234,253
2,854,786
3,062,166
Social security costs
496,037
458,208
288,767
290,265
Pension costs
210,236
246,093
54,030
100,979
9,318,689
8,938,554
3,197,583
3,453,410
Redundancy payments made or committed
104,157
10,584
95,867
-
CAPITAL REFRACTORIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 22 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
366,289
450,106
Company pension contributions to defined contribution schemes
10,000
8,000
376,289
458,106
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
275,376
264,442
Company pension contributions to defined contribution schemes
10,000
8,000
7
Auditor's remuneration
2024
2023
Fees payable to the company's auditor:
£
£
For audit services
Audit of the financial statements of the group and company
37,680
36,583
Audit of the company's subsidiaries
16,976
16,482
54,656
53,065
For other services
All other non-audit services
9,636
9,356
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
64,064
45,954
Other interest on financial liabilities
2,926
4,341
66,990
50,295
Other finance costs:
Interest on finance leases and hire purchase contracts
8,814
7,120
(Loss)/gain on hedging instrument in a fair value hedge
23,143
(21,061)
Other interest
750
-
Total finance costs
99,697
36,354
CAPITAL REFRACTORIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 23 -
9
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
75,833
30,271
Other interest income
18,043
18,784
Total income
93,876
49,055
10
Amounts written off investments
2024
2023
£
£
Fair value gains/(losses) on financial instruments
Gain on financial assets held at fair value through profit or loss
50,495
-
Exchange loss on financial assets held at fair value through profit or loss
(4,074)
46,421
-
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
457,737
146,467
Adjustments in respect of prior periods
115,000
(2,801)
Total UK current tax
572,737
143,666
Foreign current tax on profits for the current period
585,965
826,384
Adjustments in foreign tax in respect of prior periods
(54,301)
(78,754)
Total current tax
1,104,401
891,296
Deferred tax
Origination and reversal of timing differences
230,000
305,310
Total tax charge
1,334,401
1,196,606
CAPITAL REFRACTORIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
11
Taxation
(Continued)
- 24 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
4,973,280
4,296,982
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.01%)
1,243,320
988,736
Tax effect of expenses that are not deductible in determining taxable profit
5,168
11,973
Tax effect of income not taxable in determining taxable profit
(19,968)
Chargeable gains and losses
22,252
Movement in deferred tax not recognised
788
(489)
Adjustments in respect of prior years
115,000
(2,801)
Double tax relief
(874)
(666)
Permanent capital allowances in excess of depreciation
27,767
(13,222)
Research and development tax credit
(80,918)
(148,983)
Other permanent differences
17,435
9,971
Effect of overseas tax rates
4,431
327,781
Remeasurement of deferred tax for changes in tax rates
24,306
Taxation charge
1,334,401
1,196,606
12
Dividends
2024
2023
£
£
Dividends paid
1,100,000
1,567,439
CAPITAL REFRACTORIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 25 -
13
Intangible fixed assets
Group
Goodwill
Software
Patents
Intellectual property
Total
£
£
£
£
£
Cost
At 1 December 2023 and 30 November 2024
1,051,059
176,295
37,762
16,130
1,281,246
Amortisation and impairment
At 1 December 2023
758,993
7,345
37,762
15,134
819,234
Amortisation charged for the year
102,938
17,630
120,568
At 30 November 2024
861,931
24,975
37,762
15,134
939,802
Carrying amount
At 30 November 2024
189,128
151,320
996
341,444
At 30 November 2023
292,066
168,950
996
462,012
Company
Goodwill
Patents
Intellectual property
Total
£
£
£
£
Cost
At 1 December 2023 and 30 November 2024
21,677
37,762
12,000
71,439
Amortisation and impairment
At 1 December 2023 and 30 November 2024
21,677
37,762
11,004
70,443
Carrying amount
At 30 November 2024
996
996
At 30 November 2023
996
996
CAPITAL REFRACTORIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 26 -
14
Tangible fixed assets
Group
Freehold Buildings
Leasehold improvements
Assets under construction
Plant & machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 December 2023
3,616,244
237,439
756,515
11,387,169
1,412,829
936,865
18,347,061
Additions
742,069
1,445,526
36,932
258,863
2,483,390
Disposals
(22,739)
(25,644)
(214,450)
(262,833)
Transfers
794,453
(1,444,031)
649,578
Exchange adjustments
(140,210)
(52,808)
(306,116)
(61,978)
(17,357)
(578,469)
At 30 November 2024
4,270,487
237,439
1,745
13,153,418
1,362,139
963,921
19,989,149
Depreciation and impairment
At 1 December 2023
1,536,590
195,920
7,432,227
898,165
469,494
10,532,396
Depreciation charged in the year
137,963
8,304
1,050,554
99,399
143,747
1,439,967
Eliminated in respect of disposals
(19,646)
(21,656)
(132,790)
(174,092)
Exchange adjustments
(105,767)
(213,505)
(27,747)
(10,680)
(357,699)
At 30 November 2024
1,568,786
204,224
8,249,630
948,161
469,771
11,440,572
Carrying amount
At 30 November 2024
2,701,701
33,215
1,745
4,903,788
413,978
494,150
8,548,577
At 30 November 2023
2,079,654
41,519
756,515
3,954,942
514,664
467,371
7,814,665
CAPITAL REFRACTORIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 27 -
Company
Freehold Buildings
Plant & machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 December 2023
913,936
2,327,750
441,583
482,064
4,165,333
Additions
153,511
23,890
135,909
313,310
Disposals
(96,672)
(96,672)
At 30 November 2024
913,936
2,481,261
465,473
521,301
4,381,971
Depreciation and impairment
At 1 December 2023
669,168
1,378,847
404,562
212,306
2,664,883
Depreciation charged in the year
22,848
219,643
9,261
82,093
333,845
Eliminated in respect of disposals
(63,030)
(63,030)
At 30 November 2024
692,016
1,598,490
413,823
231,369
2,935,698
Carrying amount
At 30 November 2024
221,920
882,771
51,650
289,932
1,446,273
At 30 November 2023
244,768
948,903
37,021
269,758
1,500,450
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 & machinery
227,240
284,050
227,240
284,050
Motor vehicles
47,081
68,909
47,081
68,909
274,321
352,959
274,321
352,959
15
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
16
126,044
126,044
494,168
494,168
Loans to subsidiaries
16
236,577
Unlisted investments
367,283
367,283
493,327
126,044
861,451
730,745
CAPITAL REFRACTORIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
15
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Group
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 December 2023
1,310,260
-
1,310,260
Additions
-
320,862
320,862
Valuation changes
-
50,495
50,495
At 30 November 2024
1,310,260
371,357
1,681,617
Impairment
At 1 December 2023
1,184,216
-
1,184,216
Foreign exchange movements
-
4,074
4,074
At 30 November 2024
1,184,216
4,074
1,188,290
Carrying amount
At 30 November 2024
126,044
367,283
493,327
At 30 November 2023
126,044
-
126,044
Movements in fixed asset investments
Company
Shares in subsidiaries
Loans to subsidiaries
Other investments
Total
£
£
£
£
Cost or valuation
At 1 December 2023
1,678,384
236,577
-
1,914,961
Additions
-
-
320,862
320,862
Valuation changes
-
-
50,495
50,495
Repayments
-
(236,577)
-
(236,577)
At 30 November 2024
1,678,384
-
371,357
2,049,741
Impairment
At 1 December 2023
1,184,216
-
-
1,184,216
Foreign exchange movements
-
-
4,074
4,074
At 30 November 2024
1,184,216
-
4,074
1,188,290
Carrying amount
At 30 November 2024
494,168
-
367,283
861,451
At 30 November 2023
494,168
236,577
-
730,745
CAPITAL REFRACTORIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 29 -
16
Subsidiaries
Details of the company's subsidiaries at 30 November 2024 are as follows:
Name of undertaking
Address
Class of
% Held
shares held
Direct
Capital Injection Ceramics Ltd
1
Ordinary shares
75.00
Capital Refractories (Shanghai) Technology Ltd
2
Ordinary shares
100.00
Capital Refractories Inc
3
Ordinary shares
100.00
Capital Refractories S.r.o
4
Ordinary shares
100.00
Caprefindia Private Ltd
5
Ordinary shares
100.00
PT Caprefindo
6
Ordinary shares
100.00
PT Caprefindo Manufacturing
7
Ordinary shares
100.00
Registered office addresses (all UK unless otherwise indicated):
1
Station Road, Clowne, Derbyshire S43 4AB
2
No 1590 Yan An West Road, Changning District, Shanghai, China
3
1548 Mims Ave, SW Birmingham, AL 35211 USA
4
Podnikatelu 909/2 , Senov, 793 34, Czech Republic
5
Anna Main Road, Thirumullaivoyal, Chennai, India
6&7
Ruko Kalimas, Blok C No.1, Jl, Chairil Anwar, Sub-district Margahayu, District East Bekasi, Bekasi 17113, Indonesia
17
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
4,422,813
3,705,182
1,902,538
1,482,284
Work in progress
149,154
175,615
-
-
Finished goods and goods for resale
3,487,435
3,199,495
1,017,010
1,148,813
8,059,402
7,080,292
2,919,548
2,631,097
CAPITAL REFRACTORIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 30 -
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
9,571,497
8,705,425
3,898,592
3,256,584
Corporation tax recoverable
26,664
101,788
26,664
9,917
Amounts owed by group undertakings
-
-
1,067,323
560,652
Other debtors
1,243,819
1,044,805
125,316
186,603
Prepayments and accrued income
494,496
98,595
473,722
93,660
11,336,476
9,950,613
5,591,617
4,107,416
Deferred tax asset (note 23)
74,787
44,787
11,411,263
9,995,400
5,591,617
4,107,416
Amounts falling due after more than one year:
Derivative financial instruments
-
20,594
-
-
Total debtors
11,411,263
10,015,994
5,591,617
4,107,416
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
21
536,062
477,563
Obligations under finance leases
22
38,390
140,145
38,390
140,145
Trade creditors
3,568,056
3,192,103
1,023,565
884,890
Amounts owed to group undertakings
165,171
83,603
Corporation tax payable
703,969
639,042
62,198
Other taxation and social security
307,783
383,756
112,342
112,623
Other creditors
110,955
60,764
28,291
16,489
Accruals and deferred income
996,335
1,217,881
487,294
484,990
6,261,550
6,111,254
1,917,251
1,722,740
CAPITAL REFRACTORIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 31 -
20
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
21
1,345,699
963,618
Obligations under finance leases
22
8,900
29,102
8,900
29,102
Derivative financial instruments
3,500
1,358,099
992,720
8,900
29,102
21
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
1,881,761
1,441,181
Payable within one year
536,062
477,563
Payable after one year
1,345,699
963,618
Group bank borrowings are secured over the assets of the group with a charge over commercial property and an unlimited debenture incorporating a fixed and floating charge.
The bank loans included above are repayable monthly and interest is charged as follows:
1.15% over PRIBOR
1.34% over EURIBOR
1.44% over EURIBOR
1.50% over EURIBOR
22
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
38,390
140,145
38,390
140,145
In two to five years
8,900
29,102
8,900
29,102
47,290
169,247
47,290
169,247
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.
Net obligations under finance lease and hire purchase contracts are secured by fixed charges on the assets concerned.
CAPITAL REFRACTORIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 32 -
23
Deferred taxation
Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
830,000
623,000
74,787
44,787
Short term timing differences
(6,000)
(7,000)
-
-
Capital gains
22,000
-
-
-
846,000
616,000
74,787
44,787
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Accelerated capital allowances
213,000
227,000
-
-
Short term timing differences
(5,000)
(6,000)
-
-
Capital gains
22,000
-
-
-
230,000
221,000
-
-
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 December 2023
571,213
221,000
Charge to profit or loss
200,000
9,000
Liability at 30 November 2024
771,213
230,000
24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
210,236
246,093
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.
CAPITAL REFRACTORIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 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
15,000
15,000
15,000
15,000
26
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
2024
2023
2024
2023
£
£
£
£
Within one year
279,516
253,913
36,614
35,004
Between two and five years
241,612
409,746
96,241
131,245
521,128
663,659
132,855
166,249
27
Capital commitments
Amounts contracted for but not provided in the financial statements:
Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
342,873
581,789
57,993
-
28
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
511,690
515,007
Transactions with related parties
Amounts outstanding at the year end in respect of a loan owed to the company from the daughter of a director was £24,300 (2023: £27,600).
Dividends to Directors
Dividends totalling £382,500 (2023: £540,000) were paid during the year to directors.
CAPITAL REFRACTORIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 34 -
29
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Loan
2.12
114,075
63,750
2,466
(132,218)
48,073
114,075
63,750
2,466
(132,218)
48,073
30
Cash generated from group operations
2024
2023
£
£
Profit after taxation
3,638,879
3,100,376
Adjustments for:
Taxation charged
1,334,401
1,196,606
Finance costs
99,697
36,354
Investment income
(93,876)
(49,055)
Gain on disposal of tangible fixed assets
(612)
(20,036)
Amortisation and impairment of intangible assets
120,568
110,283
Depreciation and impairment of tangible fixed assets
1,439,967
1,094,043
Foreign exchange gains on cash equivalents
-
(305,374)
Other gains and losses
(46,421)
-
Movements in working capital:
(Increase)/decrease in stocks
(979,110)
1,206,052
(Increase)/decrease in debtors
(1,526,990)
803,374
Increase in creditors
128,625
426,744
Cash generated from operations
4,115,128
7,599,367
31
Analysis of changes in net funds - group
1 December 2023
Cash flows
Market value movements
Exchange rate movements
30 November 2024
£
£
£
£
£
Cash at bank and in hand
8,250,940
(291,223)
-
(337,107)
7,622,610
Borrowings excluding overdrafts
(1,441,181)
(416,486)
(24,094)
-
(1,881,761)
Obligations under finance leases
(169,247)
121,957
-
-
(47,290)
6,640,512
(585,752)
(24,094)
(337,107)
5,693,559
CAPITAL REFRACTORIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 35 -
32
Prior period adjustment
Reconciliation of changes in equity - group
1 December
30 November
2022
2023
Notes
£
£
Adjustments to prior year
Capitalisation of software development
1
-
176,295
Amortisation charge
1
-
(7,345)
Adjustment to deferred tax for the above
1
-
(40,000)
Wages adjustment
2
-
(131,434)
Total adjustments
-
(2,484)
Equity as previously reported
24,886,508
26,032,457
Equity as adjusted
24,886,508
26,029,973
Analysis of the effect upon equity
Profit and loss reserves
-
(2,484)
Reconciliation of changes in profit for the previous financial period
2023
Notes
£
Adjustments to prior year
Capitalisation of software development
1
176,295
Amortisation charge
1
(7,345)
Adjustment to deferred tax for the above
1
(40,000)
Wages adjustment
2
(131,434)
Total adjustments
(2,484)
Profit as previously reported
3,102,860
Profit as adjusted
3,100,376
Reconciliation of changes in equity - company
The prior period adjustments do not give rise to any effect upon profit or equity in the company.
Notes to reconciliation
Note 1 -Software development costs
The financial statements have been restated to capitalise software development costs, which were previously expensed under research and development in the profit and loss account. These costs are now recorded as intangible assets and will be amortised over their useful life, rather than being recognised as an expense in the period incurred.
Note 2 - Wages adjustment
Correction to a consolidation adjustment
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