Company registration number 03040494 (England and Wales)
ASME ENGINEERING LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
ASME ENGINEERING LTD
COMPANY INFORMATION
Directors
S Gibbons
M Gibbons
S Perkins
Secretary
S Gibbons
Company number
03040494
Registered office
2 Grace House
Harrovian Business Village
Bessborough Road
Harrow
HA1 3EX
Auditor
Evans Mockler Limited
5 Beauchamp Court
Victors Way
Barnet
London
EN5 5TZ
ASME ENGINEERING LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
ASME ENGINEERING LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Review of the business
The company proudly supports construction projects across Southeast England from our Harrow base, specializing in structural steelwork and architectural metalwork. Our comprehensive operations include in-house design, workshop fabrication, site welding, and installation, complemented by subcontracted works such as cross-laminated timber, decking, and intumescent painting.
Our strategic objectives are clear:
Sustainable Growth: We are committed to ensuring business continuity through prudent cash flow management and strategic investments.
In-house Excellence: By expanding our in-house capabilities, we aim to deliver even greater value to our clients while reducing reliance on external resources.
Diversification and Expansion: We are continuously exploring new opportunities to diversify our offerings and expand our market presence.
Client Partnerships: Building strong relationships with clients who appreciate quality and reliability is at the core of our strategy.
Principal risks and uncertainties
We proactively manage risks to safeguard our business:
Insurance and Fire Protection: Comprehensive coverage and robust safety protocols are in place to mitigate these risks.
Talent Acquisition and Retention: By investing in our workforce and offering competitive compensation, we ensure access to skilled labour.
Client Payment Assurance: Rigorous client assessments and credit control procedures help mitigate the risk of non-payment.
Development and performance
The year ended 31 December 2024 marked a transformative period for our company, characterised by strategic growth and operational enhancements. We focused on positioning ourselves for long-term success by taking on larger, more impactful projects and streamlining our job portfolio. Key highlights include:
Team Strengthening: We have significantly bolstered our design capabilities with the addition of a new design manager and drafting manager. By offering competitive salaries to our project managers and quantity surveyors, we are attracting top-tier talent, enhancing the overall quality and expertise of our team.
Operational Enhancements: Investments in improved workshop facilities, including state-of-the-art fume extraction systems, and an expanded fleet, have increased our operational efficiency and capacity.
Significant Developments: While we bid farewell to Chris Grigsby as Finance Director, we are excited about the adoption of cutting-edge 3D setting out technology and the acquisition of the Ladbrook storage site, which will support our growth ambitions.
Key performance indicators
We measure our success through key financial and non-financial metrics, including:
ASME ENGINEERING LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Environmental and Social Responsibility
Our commitment to environmental sustainability is evident in our initiatives to re-use steel, reducing waste and minimizing our environmental footprint. We are dedicated to making a positive impact on our community and the environment.
S Gibbons
Director
14 August 2025
ASME ENGINEERING LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company continued to be that of a steel engineering company.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £166,700. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
S Gibbons
M Gibbons
S Perkins
C Grigsby
(Resigned 14 March 2024)
Future developments
We are excited about the future and have several promising initiatives on the horizon:
Operational Expansion: We are exploring the establishment of our own intumescent painting operations and expanding our haulage fleet to better serve our clients.
Workforce Development: Introducing welding apprenticeships will allow us to cultivate skilled talent from within, ensuring a robust and capable workforce.
Client Acquisition: We are actively pursuing relationships with high-quality clients who value excellence and timely delivery, aligning with our commitment to superior service.
We are confident in our ability to deliver exceptional quality and service. As a company that values integrity and excellence, we believe that our prospects are bright. We look forward to continuing to work with creditworthy companies that seek reliable and ethically responsible partners like us.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
S Gibbons
Director
14 August 2025
ASME ENGINEERING LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
ASME ENGINEERING LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ASME ENGINEERING LTD
- 5 -
Opinion
We have audited the financial statements of ASME Engineering Ltd (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 company's affairs as at 31 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
ASME ENGINEERING LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ASME ENGINEERING LTD (CONTINUED)
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Extent to which the audit was capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the Directors (as required by auditing standards).
we had regard to laws and regulations in areas that directly affect the financial statements including financial reporting and taxation legislation. We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.
with the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to enquiry of the Directors.
we communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.
we addressed the risk of fraud through management override of controls, by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
ASME ENGINEERING LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ASME ENGINEERING LTD (CONTINUED)
- 7 -
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.
Mark Cook (Senior Statutory Auditor)
For and on behalf of Evans Mockler Limited, Statutory Auditor
Chartered Certified Accountants
5 Beauchamp Court
Victors Way
Barnet
London
EN5 5TZ
14 August 2025
ASME ENGINEERING LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
12,440,369
14,873,464
Cost of sales
(9,836,074)
(12,056,876)
Gross profit
2,604,295
2,816,588
Administrative expenses
(2,410,925)
(2,449,189)
Operating profit
4
193,370
367,399
Interest receivable and similar income
28
53
Interest payable and similar expenses
8
(27,981)
(34,913)
Profit before taxation
165,417
332,539
Tax on profit
9
106,624
59,538
Profit for the financial year
272,041
392,077
The profit and loss account has been prepared on the basis that all operations are continuing operations.
ASME ENGINEERING LTD
BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,901,886
1,993,268
Current assets
Stocks
12
282,592
420,397
Debtors
13
2,983,760
2,991,203
Cash at bank and in hand
442,398
476,840
3,708,750
3,888,440
Creditors: amounts falling due within one year
14
(2,719,993)
(2,962,593)
Net current assets
988,757
925,847
Total assets less current liabilities
2,890,643
2,919,115
Creditors: amounts falling due after more than one year
15
(141,985)
(257,291)
Provisions for liabilities
Deferred tax liability
(79,324)
(97,831)
Net assets
2,669,334
2,563,993
Capital and reserves
Called up share capital
20
333,334
333,334
Revaluation reserve
624,332
624,332
Profit and loss reserves
1,711,668
1,606,327
Total equity
2,669,334
2,563,993
The financial statements were approved by the board of directors and authorised for issue on 14 August 2025 and are signed on its behalf by:
S Gibbons
Director
Company Registration No. 03040494
ASME ENGINEERING LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2023
333,334
624,332
1,458,250
2,415,916
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
392,077
392,077
Dividends
10
-
-
(244,000)
(244,000)
Balance at 31 December 2023
333,334
624,332
1,606,327
2,563,993
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
272,041
272,041
Dividends
10
-
-
(166,700)
(166,700)
Balance at 31 December 2024
333,334
624,332
1,711,668
2,669,334
ASME ENGINEERING LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
305,128
145,782
Interest paid
(27,981)
(34,913)
Income taxes refunded
66,622
131,686
Net cash inflow from operating activities
343,769
242,555
Investing activities
Purchase of tangible fixed assets
(13,889)
(26,724)
Proceeds from disposal of tangible fixed assets
9,758
10,793
Proceeds from repayment of loans
165,097
Interest received
28
53
Net cash (used in)/generated from investing activities
(4,103)
149,219
Financing activities
Repayment of borrowings
(11,786)
Repayment of bank loans
(140,146)
(140,793)
Repayment of hire purchase liabilities
(67,262)
(48,412)
Dividends paid
(166,700)
(244,000)
Net cash used in financing activities
(374,108)
(444,991)
Net decrease in cash and cash equivalents
(34,442)
(53,217)
Cash and cash equivalents at beginning of year
476,840
530,057
Cash and cash equivalents at end of year
442,398
476,840
ASME ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information
ASME Engineering Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 2 Grace House, Harrovian Business Village, Bessborough Road, Harrow, HA1 3EX.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for 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.
Where the outcome of a long term contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a long term contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
1.4
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
Not depreciated
Plant and machinery etc
10% straight line
Fixtures and fittings
10% straight line
Computers
20% straight line
Motor vehicles
10% straight line
ASME ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company 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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
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.
1.7
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.
ASME ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
ASME ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
ASME ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
ASME ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’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
The turnover and profit before taxation are attributable to one principal activity, steel engineering. Turnover is attributable to a single geographical market, United Kingdom.
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
78
Depreciation of owned tangible fixed assets
98,187
99,158
(Profit)/loss on disposal of tangible fixed assets
(2,674)
11,161
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
11,500
8,500
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
35
36
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,634,707
1,728,258
Social security costs
187,129
197,920
Pension costs
127,208
28,316
1,949,044
1,954,494
ASME ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
161,849
174,854
Company pension contributions to defined contribution schemes
101,840
6,000
263,689
180,854
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
20,046
24,130
Other finance costs:
Interest on finance leases and hire purchase contracts
7,935
10,783
27,981
34,913
9
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
93
Other tax reliefs
(88,210)
(66,715)
Total current tax
(88,117)
(66,715)
Deferred tax
Origination and reversal of timing differences
(18,507)
7,177
Total tax credit
(106,624)
(59,538)
ASME ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
9
Taxation
(Continued)
- 19 -
The actual credit 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
165,417
332,539
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
41,354
83,135
Tax effect of expenses that are not deductible in determining taxable profit
15,504
17,655
Permanent capital allowances in excess of depreciation
(7,801)
(31,751)
Depreciation on assets not qualifying for tax allowances
24,976
24,790
Research and development tax credit
(162,150)
(66,715)
Deferred tax
(18,507)
7,176
R&D claim
(93,828)
Taxation credit for the year
(106,624)
(59,538)
10
Dividends
2024
2023
£
£
Interim paid
166,700
244,000
ASME ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
11
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2024
1,500,000
1,772,930
3,272,930
Additions
13,889
13,889
Disposals
(80,021)
(80,021)
At 31 December 2024
1,500,000
1,706,798
3,206,798
Depreciation and impairment
At 1 January 2024
1,279,662
1,279,662
Depreciation charged in the year
98,187
98,187
Eliminated in respect of disposals
(72,937)
(72,937)
At 31 December 2024
1,304,912
1,304,912
Carrying amount
At 31 December 2024
1,500,000
401,886
1,901,886
At 31 December 2023
1,500,000
493,268
1,993,268
Land and buildings comprises freehold property of £1,500,000. The fair value of the freehold property has been arrived at on the basis of a valuation carried out at 31 December 2024 by the Directors. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
12
Stocks
2024
2023
£
£
Raw materials and consumables
282,592
420,397
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
814,422
224,585
Gross amounts owed by contract customers
1,844,706
2,450,283
Corporation tax recoverable
88,210
66,715
Other debtors
102,021
93,387
Prepayments and accrued income
134,401
156,233
2,983,760
2,991,203
ASME ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
16
83,003
139,066
Hire purchase liabilities
17
31,222
67,261
Trade creditors
2,136,479
2,416,719
Taxation and social security
43,783
46,872
Other creditors
330,466
129,821
Accruals and deferred income
95,040
162,854
2,719,993
2,962,593
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
109,900
193,983
Hire purchase liabilities
17
32,085
63,308
141,985
257,291
16
Loans and overdrafts
2024
2023
£
£
Bank loans
192,903
333,049
Payable within one year
83,003
139,066
Payable after one year
109,900
193,983
Barclays Bank PLC hold charges on 17 September 2010 and 13 December 2010 for debentures. Both of the charges contain fixed and floating charges over all the properties or undertakings of the company.
17
Hire purchase liabilities
2024
2023
Future minimum payments due under hire purchase:
£
£
Within one year
31,222
67,261
In two to five years
32,085
63,308
63,307
130,569
ASME ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
79,324
7,177
Property revaluations
-
90,654
79,324
97,831
2024
Movements in the year:
£
Liability at 1 January 2024
97,831
Credit to profit or loss
(18,507)
Liability at 31 December 2024
79,324
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
127,208
28,316
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
333,334
333,334
333,334
333,334
ASME ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
21
Cash generated from operations
2024
2023
£
£
Profit after taxation
272,041
392,077
Adjustments for:
Taxation credited
(106,624)
(59,538)
Finance costs
27,981
34,913
Investment income
(28)
(53)
(Gain)/loss on disposal of tangible fixed assets
(2,674)
11,161
Depreciation and impairment of tangible fixed assets
98,187
99,158
Movements in working capital:
Decrease/(increase) in stocks
137,805
(54,807)
Decrease in debtors
28,938
153,824
Decrease in creditors
(150,498)
(430,953)
Cash generated from operations
305,128
145,782
22
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
476,840
(34,442)
442,398
Borrowings excluding overdrafts
(333,049)
140,146
(192,903)
Hire purchase liabilities
(130,569)
67,262
(63,307)
13,222
172,966
186,188
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