Company registration number 03322474 (England and Wales)
ENTACO LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
ENTACO LIMITED
COMPANY INFORMATION
Directors
Mr S M Brown
Mr M Chaloner
(Appointed 20 February 2024)
Company number
03322474
Registered office
Unit 46
Washford Industrial Estate
Heming Road
Redditch
Worcestershire
UK
B98 0EA
Auditor
Azets Audit Services
St Davids Court
Union Street
Wolverhampton
West Midlands
United Kingdom
WV1 3JE
ENTACO LIMITED
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
Notes to the financial statements
11 - 25
ENTACO LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

The directors present the strategic report for the year ended 30 September 2024.

Review of the business

Sales of Entaco Limited’s (“the Company”) medical devices and hand sewing needles saw a reduction of 5.7% over the corresponding 2023 levels as some key customers across both divisions experienced reduced demand for the Company’s products.

 

The Company’s gross margins were impacted by the reduced volume and rising labour and raw material costs.

 

The administration expenses include £369,558 of exceptional costs relating to the MBO earlier in the year. The company’s adjusted EBITDA loss was £182,135 for the year.

Principal risks and uncertainties

The Directors have identified the following principal risks and uncertainties affecting the Company.

 

Market risk: The Company is affected by exchange rate movements. The Company manages its exposure to these movements through spot rate currency exchange transactions, through natural hedging through purchasing and selling in equivalent currencies and through forward currency time options.

 

Legislative and regulatory risk: The Directors remain alert to the impact of regulatory and legislative changes on the Company's operations.

 

Actions of competitors: The Directors continue to take appropriate steps to develop new products and markets to protect the intellectual property of the Group in all of the areas where it operates.

 

Supply chain, energy costs, and inflation: Supply chain issues resulting from the war in Ukraine and red sea crisis have affected the group although they have been managed with minimal disruption. In respect of energy costs and inflation, although the Company is not wholly protected from movement in the underlying market rate, other than government intervention, the company does not have fixed price long term contracts with its customers and is therefore in a position to negotiate price rises according to increased costs. The directors are closely monitoring its costs across all group companies and taking appropriate action as necessary in respect of negotiations with its customers to manage increases in order to recoup additional costs although there can be a time lag between increasing costs and increased pricing being realised.

Key performance indicators

Apart from the measures identified above in the business review, the Directors are of the opinion that no further inclusion of financial and non-financial key performance indicators is necessary for an understanding of the development, performance or position of the Company's business.

 

Going Concern

The Directors have considered the relevant information including resilient post year end trading activity and the continued profitability, the company annual budgets and forecast future cashflows up to 30 September 2026 in making their assessment.

 

Based on the Directors' assessments and having regard to the funding resources and facilities currently available to the Company and the cashflow headroom available to it under various scenarios reviewed, the Directors have concluded that there is no material uncertainty and that they can continue to trade and adopt the going concern basis in preparing the Financial Statements. Accordingly, the Financial Statements have been prepared on a going concern basis.

 

ENTACO LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -

On behalf of the board

Mr M Chaloner
Director
15 August 2025
ENTACO LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -

The directors present their annual report and financial statements for the year ended 30 September 2024.

Principal activities

The principal activity of the company continued to be that of hand sewing needles, medical devices and other metal products.

 

During the prior year the company transferred its contamination control division to a newly formed fellow subsidary. Redditch Medical Limited, owned by its immediate parent entity,

Results and dividends

The loss for the year, after taxation, amounted to £652,467 (2023: Loss - £4,312).

No ordinary dividends were paid. 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:

Mr A J Stringer
(Resigned 20 February 2024)
Mr S M Brown
Mr J D Tucker
(Resigned 22 December 2023)
Mr M Chaloner
(Appointed 20 February 2024)
Post reporting date events

There have been no significant events affecting the Company since year end.

Future developments

This is covered in strategic report on Page 1.

Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the 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.

On behalf of the board
Mr M Chaloner
Director
15 August 2025
ENTACO LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 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:

 

 

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.

ENTACO LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ENTACO LIMITED
- 5 -
Opinion

We have audited the financial statements of Entaco Limited (the 'company') for the year ended 30 September 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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:

Basis for opinion

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.

Other information

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:

ENTACO LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ENTACO LIMITED
- 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:

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.

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.

ENTACO LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ENTACO LIMITED
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Lee Meredith BFP ACA
Senior Statutory Auditor
For and on behalf of Azets Audit Services
18 August 2025
Chartered Accountants
Statutory Auditor
St Davids Court
Union Street
Wolverhampton
West Midlands
United Kingdom
WV1 3JE
ENTACO LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
6,310,176
6,692,926
Cost of sales
(5,478,249)
(5,364,197)
Gross profit
831,927
1,328,729
Distribution costs
(149,562)
(382,842)
Administrative expenses (including exceptional costs of £369,558 (2023 £92,673)
(1,293,526)
(934,643)
Operating (loss)/profit
5
(611,161)
11,244
Interest receivable and similar income
8
2,932
5,020
Interest payable and similar expenses
9
(44,238)
(42,550)
Loss before taxation
(652,467)
(26,286)
Tax on loss
10
39,480
21,974
Loss for the financial year
(612,987)
(4,312)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

The notes on pages 11 to 25 form part of these financial statements.

ENTACO LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 9 -
30 September 2024
7 October 2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
11
185,503
231,143
Investments
12
1
1
185,504
231,144
Current assets
Stocks
14
1,214,685
1,277,156
Debtors
15
5,297,040
4,980,223
Cash at bank and in hand
131,658
866,424
6,643,383
7,123,803
Creditors: amounts falling due within one year
16
(1,779,114)
(1,652,707)
Net current assets
4,864,269
5,471,096
Total assets less current liabilities
5,049,773
5,702,240
Provisions for liabilities
Provisions
18
318,000
318,000
Deferred tax liability
19
-
0
39,480
(318,000)
(357,480)
Net assets
4,731,773
5,344,760
Capital and reserves
Called up share capital
21
2
2
Profit and loss reserves
4,731,771
5,344,758
Total equity
4,731,773
5,344,760

The notes on pages 11 to 25 form part of these financial statements.

The financial statements were approved by the board of directors and authorised for issue on 15 August 2025 and are signed on its behalf by:
Mr M Chaloner
Director
Company Registration No. 03322474
ENTACO LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 7 October 2023:
Balance at 8 October 2022
2
5,349,070
5,349,072
Year ended 7 October 2023:
Loss and total comprehensive income for the year
-
(4,312)
(4,312)
Balance at 7 October 2023
2
5,344,758
5,344,760
Year ended 30 September 2024:
Loss and total comprehensive income for the year
-
(612,987)
(612,987)
Balance at 30 September 2024
2
4,731,771
4,731,773

The notes on pages 11 to 25 form part of these financial statements.

ENTACO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
1
Accounting policies
Company information

Entaco Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 46, Washford Industrial Estate, Heming Road, Redditch, Worcestershire, UK, B98 0EA.

 

The Company's principal activity is the manufacture of hand sewing needles, contamination control products, medical devices and other metal products.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This 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:

 

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

Entaco Limited is a wholly owned subsidiary of Entaco Topco Limited and the results of Entaco Limited are included in the consolidated financial statements of Entaco Topco Limited which are available from Unit 46 Washford Industrial Estate, Heming Road, Redditch, United Kingdom, B98 0EA.

1.2
Going concern

The Directors have considered the relevant information including resilient post year end trading activity and the continued profitability, the company annual budgets and forecast future cashflows up to 30 September 2026 in making their assessment.true

 

Based on the Directors' assessments and having regards to the funding resources and facilities currently available to the Company and the wider Group and the cashflow headroom available to it under various scenarios reviewed, the Directors have concluded that there is no material uncertainty and that they can continue to trade and adopt the going concern basis in preparing the Financial Statements. Accordingly, the Financial Statements have been prepared on a going concern basis.

ENTACO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 12 -
1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably. The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

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:

Leasehold land and buildings
20% straight line
Plant and equipment
10% and 20% straight line
Office equipment
20% straight line
Computer software
20% straight line
Motor vehicles
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

ENTACO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -
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.

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.

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.

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.

ENTACO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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.

1.9
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.

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.

1.10
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

ENTACO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

 

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

 

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

 

Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

1.12
Leases

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

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 leases asset are consumed.

1.13
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.

1.14

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

ENTACO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual value of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

Impairment of debtors

The Company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the ageing profile of debtors and historical experience,

Impairment of stocks

Certain factors could affect the realisable value of the Company's stocks, including customer demand and market conditions. The Company considers the length of time the entity has held the items when evaluating the value of stock.

Overhead recovery rate

The Company assesses the materials included in work in progress and finished foods as a proportion of materials purchased in the year and uses this as a basis for absorbing production related overheads into the year end stock valuation.

Dilapidation provision

The Company has estimated a provision in respect to dilapidations for the units in use. The estimate is made by assuming any costs/changes to the property will be equivalent to the cost to restore the property.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Hand sewing needles, medical devices and other metal products
6,310,176
6,692,926
ENTACO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
3
Turnover and other revenue
(Continued)
- 17 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
1,089,781
1,396,847
Rest of Europe
922,032
878,132
Rest of the World
4,298,363
4,417,947
6,310,176
6,692,926
2024
2023
£
£
Other revenue
Interest income
2,932
5,020
4
Exceptional item
2024
2023
£
£
Expenditure
Exceptional item
369,558
92,673

Exceptional costs relate to management recharges and costs in respect of professional fees incurred for a non recurring corporate transaction.

5
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging:
£
£
Exchange losses
29,038
184,332
Depreciation of owned tangible fixed assets
59,468
36,229
Depreciation of tangible fixed assets held under finance leases
-
24,270
Operating lease charges
278,358
287,045
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Employees
94
103
ENTACO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
6
Employees
(Continued)
- 18 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,857,670
1,713,248
Social security costs
229,015
220,229
Pension costs
77,644
80,758
2,164,329
2,014,235
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
156,075
287,479
Company pension contributions to defined contribution schemes
1,385
-
157,460
287,479
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
n/a
297,486
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
2,932
5,020
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
44,238
40,172
Interest on finance leases and hire purchase contracts
-
2,378
44,238
42,550
ENTACO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
10
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
(39,480)
(21,974)

The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Loss before taxation
(652,467)
(26,286)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.10%)
(163,117)
(5,809)
Tax effect of expenses that are not deductible in determining taxable profit
91,145
1,331
Group relief
-
0
(2,048)
Permanent capital allowances in excess of depreciation
-
0
(243)
Deferred tax adjustments in respect of prior years
-
0
(25,636)
Remeasurement of deferred tax for changes in tax rate
-
0
10,431
Deferred tax not provided
32,492
-
0
Taxation credit for the year
(39,480)
(21,974)

 

ENTACO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
11
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Office equipment
Computer software
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 8 October 2023
116,102
2,011,133
42,129
44,548
9,744
2,223,656
Additions
-
0
9,341
-
0
4,487
-
0
13,828
At 30 September 2024
116,102
2,020,474
42,129
49,035
9,744
2,237,484
Depreciation and impairment
At 8 October 2023
116,102
1,790,174
40,852
35,641
9,744
1,992,513
Depreciation charged in the year
-
0
50,272
215
8,981
-
0
59,468
At 30 September 2024
116,102
1,840,446
41,067
44,622
9,744
2,051,981
Carrying amount
At 30 September 2024
-
0
180,028
1,062
4,413
-
0
185,503
At 7 October 2023
-
0
220,959
1,277
8,907
-
0
231,143

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Plant and equipment
-
0
76,615
12
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
13
1
1
13
Subsidiaries

Details of the company's subsidiaries at 30 September 2024 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Indirect
Needle & Tackle Company Limited
United Kingdom
Dormant
Ordinary
100.00
-
John James & Sons Limited
United Kingdom
Dormant
Ordinary
0
100.00
ENTACO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
13
Subsidiaries
(Continued)
- 21 -

Registered office addresses (all UK unless otherwise indicated):

1
Unit 46 Washford Industrial, Estate Heming Road, Redditch, Worcestershire, B98 0EA
2
Unit 46 Washford Industrial, Estate Heming Road, Redditch, Worcestershire, B98 0EA

 

14
Stocks
2024
2023
£
£
Raw materials and consumables
530,155
501,084
Work in progress
309,741
292,681
Finished goods and goods for resale
374,789
483,391
1,214,685
1,277,156

An impairment charge of £168,705 (2023: £200,326) was recognised in cost of sales against stock during the year due to slow-moving and obsolete stock.

15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,275,334
1,583,504
Corporation tax recoverable
-
0
20,972
Amounts owed by group undertakings
3,773,986
3,176,994
Other debtors
86,742
64,770
Prepayments and accrued income
160,978
133,983
5,297,040
4,980,223

The impairment reversal recognised in the statement of comprehensive income for the period in respect of bad and doubtful trade debtors was £21,091 (2023: £27,095 impairment charge).

 

Amounts owed by group undertakings are payable on demand and non-interest bearing.

ENTACO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
17
-
0
5,721
Trade creditors
465,295
424,154
Amounts owed to group undertakings
1,056,013
204,798
Corporation tax
12,928
-
0
Other taxation and social security
83,142
87,922
Other creditors
23,491
797,244
Accruals and deferred income
138,245
132,868
1,779,114
1,652,707

Obligations under finance leases and hire purchase contracts are secured against the assets to which they relate.

17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
-
0
5,721
18
Provisions for liabilities
2024
2023
£
£
318,000
318,000
Movements on provisions:
£
At 8 October 2023 and 30 September 2024
318,000
ENTACO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 23 -
19
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
-
41,982
Short term timing differences
-
(2,502)
-
39,480
2024
Movements in the year:
£
Liability at 8 October 2023
39,480
Credit to profit or loss
(39,480)
Liability at 30 September 2024
-

 

20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
77,644
80,758

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. The pension cost charge represents contributions payable by the Company to the fund and amounted to £77,644 (2023: £80,758).

 

Contributions totalling £21,855 (2023: £16,848) were payable to the fund at the balance sheet date and are included in creditors.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
2
2
2
2
ENTACO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 24 -
22
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
198,532
375,525
Between two and five years
517,139
879,872
In over five years
3,195
-
0
718,866
1,255,397
23
Related party transactions

Included in exceptional items are management recharges amounting to £339,000 (2023: £nil) from 3W Equity Limited, a related party. At the year end the balance outstanding was £75,000 (2023:£nil).

24
Prior period adjustment

The prior period adjustment relates to unpresented cheques that were included within cash and bank at the prior period end and have been reclassified to trade creditors.

Changes to the balance sheet
As previously reported
Adjustment
As restated at 7 Oct 2023
£
£
£
Current assets
Bank and cash
792,991
73,433
866,424
Creditors due within one year
Other creditors
(1,485,631)
(73,433)
(1,559,064)
Net assets
5,344,760
-
5,344,760
Capital and reserves
Total equity
5,344,760
-
5,344,760
Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 7 October 2023
£
£
£
Loss for the financial period
(4,312)
-
(4,312)
ENTACO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
25
Ultimate controlling party

At the year end the Company's immediate parent undertaking was Entaco Group Limited, and the ultimate parent undertaking was Entaco Topco Limited, by virtue of its shareholding in Entaco Holdings Limited, both companies are incorporated in England and Wales.

 

There is no ultimate controlling party of the group.

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