The director presents the Group Strategic Report for Greenock Holdings Limited (the "Company") and its subsidiaries (the "Group") for the year ended 29 June 2024.
The principal activity of the Company during the year was that of a holding company to its subsidiaries. The nature of the subsidiaries business activities includes sale of barbed wire products, high perimeter security fencing both manufactured and bought in and related security barriers. It is not anticipated that there will be any change to the principal activities of the Company and its subsidiaries in the near future.
The continued rise in domestic inflation has placed pressure on the supply of materials, most notably commodity and labour prices. Where possible these will be mitigated via long term supply contracts, and any customer pass through will be in line with contractual terms.
The key performance indicators of the Group include turnover, gross margin, profit before tax and net assets. As shown in the Group statement of comprehensive income, on page 11, the Group's turnover increased to £18.9m (2023: £10.6m) as trading activity in the United States market increased.
The gross margin increased in 2024 to 63% (2023: 43%) as a result of targeted selling price increases on a market-to-market basis to compensate for inflationary pressures on operating expenses.
The profit before tax for the year increased to £4.9m (2023: £1.7m loss) due to an increase in non-core income earned in the form of project management fees and interest received.
The net assets of the Group were £2.2m (2023: £1.2m net liabilities) at the year end and the growth in reserves is derived from trading profit for the year. The Group balance sheet on page 12 shows the Group's financial position.
The director monitors the Group's performance based on the key performance indicators mentioned above. The subsidiary companies monitor appropriate KPI's necessary for the understanding of the performance and financial position of the individual businesses.
The Group is exposed to general and industry specific business risks including the following:
Foreign exchange risk
The business activities expose it primarily to the financial risks of changes in foreign currency exchange rates. Material changes in the strength of the sterling against the functional currencies of the Company's subsidiaries could have an effect on the reported sterling profits in the financial statements. Currency risk is managed by the Group's treasury department. The business' principal financial instruments comprise of amounts owed to/by group undertakings, trade debtors, trade creditors, other debtors and other creditors. The main purpose of these instruments is to finance the business' operations. Refer to the Director's report on pages 3 to 4 for further financial risks of the Group.
Operational risk
The risk that incoming or outgoing payments will fail to be delivered as agreed by clients or the Group either through operational failures of the Group, its counter parties or fraud is mitigated by multiple manual and automated checks in the Operations department.
The director does not consider there to be any principal risks and uncertainties present other than those discussed above.
The director expects the general level of activity to remain consistent with 2024 in the forthcoming financial year.
On behalf of the board
The director presents her annual report and audited financial statements for the year ended 29 June 2024.
The results for the year are set out on page 10.
The director has not paid nor proposed a dividend for the year (2023: £nil).
Going concern
The director has assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The Company is a holding company that is funded by the ultimate controlling party, the Finch Settlement, and provides support to profit making subsidiaries within the Group. The director considers it highly unlikely that the shareholder's loan will be recalled in the foreseeable future except if the Company has funds to do so. The Group is profitable in the current year at £3.4m with a net assets position of £2.2m. The Group is also highly liquid with cash reserves at year end of £20.8m.
As a result of the Group's cash reserves, current trading performance and financial support noted above, the director has a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, she continues to adopt the going concern basis in preparing the financial statements.
The director who held office during the year and up to the date of signature of the financial statements was as follows:
United Kingdom company law requires the director to prepare financial statements for each financial year. Under that law, the director has elected to prepare the group and parent company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the director must not approve the financial statements unless she is satisfied that they give a true and fair view of the state of affairs of the group and parent company, and of the profit or loss of the group for that period.
In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and parent company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent company, and enable them to ensure that the financial statements comply with the Companies Act 2006. She is also responsible for safeguarding the assets of the group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Qualified opinion
We have audited the financial statements of Greenock Holdings Limited (the 'Parent company') and its subsidiaries (the 'Group') for the year ended 29 June 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 material 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).
Basis for qualified opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:
The information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the director's report have been prepared in accordance with applicable legal requirements.
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 ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. The laws and regulations applicable to the Group were identified through discussions with director and other management, and from our commercial knowledge and experience of the business. Of these laws and regulations, we focused on those that we considered may have a direct material effect on the financial statements or the operations of the Group, including the UK and US, corporate, tax, money laundering, data protection, employment, and health and safety, legislations, including US aviation regulations. The extent of compliance with these laws and regulations identified above was assessed through making enquiries of management and inspecting legal correspondence. The identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the 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; and
understanding the design of the Group's remuneration.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind material or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with relevant regulators including the Group’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the director and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment by for example forgery, or intentional misrepresentation or through collusion. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect noncompliance with all laws and regulations.
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.
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.
The Group Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.
The notes on pages 16 to 36 form part of these financial statements.
The notes on pages 16 to 36 form part of these financial statements.
The notes on pages 16 to 36 form part of these financial statements.
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 £5,371 (2023: £588 loss).
The notes on pages 16 to 36 form part of these financial statements.
The notes on pages 16 to 36 form part of these financial statements.
The notes on pages 16 to 36 form part of these financial statements.
Greenock Holdings Limited (“the Company”) is a private limited company, limited by shares incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The registered office is 105 High Street, Worcester, Worcestershire, United Kingdom, WR1 2HW.
The Group consists of Greenock Holdings Limited and all of its subsidiaries.
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 items at fair value.
The material accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.
Reduced disclosures
The Parent Company meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it. Exemptions have been taken in relation to:
Section 7 'Statement of Cash Flows' - Presentation of a Statement of Cash Flows and related notes and disclosures
Section 11 'Basic Financial Instruments' - Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument
Section 33 'Related Party Disclosures' - Compensation for key management personnel.
The Group financial statements consolidate the financial statements of the Company and its subsidiary undertakings drawn up to 29 June 2024. The results of subsidiaries acquired or sold are consolidated for the periods from or to the date on which control passed.
Business combinations are accounted for under the purchase method. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the Group. All intra-group transactions, balances, income and expenses are eliminated on consolidation.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
As permitted by s408 of the Companies Act 2006, no separate profit and loss account or statement of comprehensive income is presented in respect of the Parent Company. The profit/(loss) attributable to the Company is disclosed in the footnote to the Company's Balance Sheet.
The director has assessed the balance sheet and likely future cash flows at the date of approving these financial statements. The Group is principally funded by a related party. The director has requested and obtained support for the funding not to be repaid within 12 months of the date of these financial statements. Furthermore, the Group is profitable in the current year at £3.4m, with a net asset position of £2.2m, and cash reserves of £20.8m. As a result, the director has a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, she continues to adopt the going concern basis in preparing the financial statements.
Turnover is stated net of VAT and trade discounts and is recognised when the significant risks and rewards are considered to have been transferred to the buyer. Turnover from the sale of goods is recognised when the goods are physically delivered to the customer. Turnover from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable. Where a contract has only been partially completed at the balance sheet date turnover represents the fair value of the service provided to date based on the stage of completion of the contract activity at the balance sheet date. Where payments are received from customers in advance of services provided, the amounts are recorded as deferred income and included as part of creditors due within one year.
Other operating income
Other operating income relates to the cost re-imbursement charge for an aircraft. Amounts recharged to the lessee for aircraft‑related running costs (e.g. maintenance, insurance, regulatory fees) are presented as other operating income based on the Group’s assessment and the lease agreement.
Freehold land is not depreciated.
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.
Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.
Investments are measured at cost less impairment.
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, 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.
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.
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.
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, including creditors and 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.
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
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.
The tax expense represents the sum of the tax currently payable and deferred 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 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.
Short term 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.
Defined contribution schemes
The Group operates a defined contribution scheme. The amount charged to the Group Statement of Comprehensive Income in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Balance Sheet.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Balance Sheet date are reported at the rates of exchange prevailing at that date.
Non monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income.
Interest income
Interest income is recognised when it is probable that the economic benefits will flow to the Group and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.
Finance costs
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.
In the application of the Group's accounting policies, which are described in note 1, the director is required to make judgements (other than those involving estimations) that have a significant impact on the amounts recognised and to make estimates and assumptions about the carrying amounts 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.
Critical judgements in applying the Group's accounting policies
Management did not identify any areas of critical judgement or key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements.
Key sources of estimation uncertainty
The extent to which deferred tax assets can be recognised is based on an assessment of the probability that future taxable income will be available against which the deductible temporary differences and tax loss carry forwards can be utilised. Please refer to note 20 for more details.
The prior year financial statements were not audited and not required to be audited.
The average monthly number of persons (including directors) employed by the Group and Company during the year was:
Their aggregate remuneration comprised:
Other interest comprises of interest payable to related parties.
The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
Factors that may affect future tax charges
Effective from 1 April 2023, the UK corporate tax rate increased from 19% to 25% (for companies with profits over £250,000) and continues to be 19% (for companies with profits of £50,000 or less). Companies with profits between £50,000 and £250,000 pay tax at the main rate reduced by a marginal relief providing a gradual increase in the effective Corporation Tax rate. As a result deferred tax has been calculated at 25% (2023: 25%).
In August 2020, Cochrane USA Inc. a group subsidiary acquired a N719SH Dassault Falcon 900EX Aircraft for $8,328,925.
For US legal reasons Cochrane USA Inc. contributed the aircraft to the TVPX Trust. TVPX Trust is an aircraft owner trust held under TVPX Aircraft Solutions Inc who are the sole trustee (i.e. owner trustee) and Cochrane USA is the sole beneficiary of the trust.
The TVPX Trust and Cochrane USA have entered into an Aircraft Operating Lease Agreement, whereby Cochrane USA obtains the exclusive right to use and to operate the aircraft.
The Owner is The TVPX Trust and the Operator is Cochrane US Inc.
There has been no Sale and Lease back instead the Operator has transferred the asset to the Trust.
A subsequent dry lease agreement was concluded between Cochrane USA Inc. and Cochrane Steel Products (RSA), whereby Cochrane Steel Products was granted the right of use of the aircraft under certain conditions.
Details of the Company's subsidiaries at 29 June 2024 are as follows:
Details of joint ventures at 29 June 2024 are as follows:
There are no material differences between the replacement cost of stock and the Balance Sheet amounts.
Amounts owed by group undertakings are unsecured, repayable on demand and bears interest at 5.25% (2023: 5%) per annum at year end.
Refer to related party transactions note 25 for more details on the amounts owed by undertakings in which the Company has a participating interest.
Trade debtors include provision for doubtful debts £550,570 (2023: £39,179).
Other debtors include amounts owed to related parties of £6,335,805 (2023: £905,363).
The amounts owed to parent undertakings include loans which do not have a fixed repayment term and includes an interest bearing loan and a non-interest bearing loan. The interest-bearing loan bears interest at Barclays Bank deposit rates, which is at 5.25% (2023: 5% p.a).
Amounts owed to group undertakings are unsecured, repayable on demand and interest free.
Other creditors include Amounts due to related parties of £30,551,191 (2023: £24,794,207).
The following are the major deferred tax liabilities and assets recognised by the Group and Company, and movements thereon:
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.
Contributions totaling £nil (2023: £nil) were payable to the fund at the year-end.
The profit and loss account represents cumulative profits or losses, cumulative translation difference net of dividends paid and other adjustments.
Other reserves
Other reserves relate to currency translation difference arising on translation of the opening net assets and results of overseas operations and change in presentational currency of subsidiaries.
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:
The Company has availed of the exemption provided in FRS 102 Section 33 Related Party Disclosures not to disclose transactions entered into with fellow group companies that are wholly owned within the Group of companies of which the Company is a wholly owned member.
The Group and the Company's other debtors include amounts owed by Mr. R B Cochrane, a director of Cochrane Industries UK Limited and also a shareholder of Greenock Holdings Ltd., of £563,127 (2023: £453,255). Interest paid on the loan was £13,264 in the current year (2023: £5,600).
During the year, the Company incurred certain costs on behalf of Greenock Investments Limited, a company in which Mrs. A R Mindry is a director. Included within debtors at the year end was an outstanding balance due from Greenock Investments Limited of £90,334 (2023: £90,334).
During the year, the Group incurred certain costs of £31,500 (2023: £27,400) in audit and accountancy fees and £10,890 (2023: £Nil) in other admin on behalf of Greenock Investments Limited, a Company in which Mrs A R Mindry is a director.
The Group's other debtors include amounts owed by Cochrane Gulf FZE, a wholly owned subsidiary of Greenock Investments Limited, a Company in which Mrs A R Mindry is a director of £87,381 (2023: £Nil). Interest received on the loan was £481 in the current year (2023: £Nil).
The Group's other debtors include amounts owed by Cochrane Steel Products Proprietary Limited, a company with common control, of £5,423,374 (2023: £232,853), by Greenock Investments Limited £261,092 (2023: £218,702).
The Group and the Company's creditors include amounts owed to parent undertakings, owed to Finch Investments Limited (Nevis), the ultimate controlling party, of £2,451,233 (2023: £2,461,220). During the year, the Group paid interest to the parent company Finch Investments Limited of £42,408 in the current year (2023: £57,277).
The Group's other creditors includes amounts owed to Cochrane Gulf FZE Limited of £30,378,222 (2023: £23,765,164) and to Cochrane Steel Products Proprietary Limited £172,969 (2023: 1,029,043). During the year, the Group paid interest to Cochrane Gulf FZE Limited of £698,193 in the current year (2023: £558,911).
The Group’s other debtors include amounts owed by Cochrane JV LLC, a joint venture entity in which Cochrane USA Inc. is a 50% partner of £830 (2023: £553). During the year Cochrane JV LLC charged management fees to the Group of £592,618 (2023: £586,902).
The Group’s other debtors include amounts advanced to K A Cochrane, a family member of RB Cochrane of £791 (2023: £792).
During the year the Group has purchased goods from Cochrane Steel Products (Pty) Ltd of £5,185,559 (2023: £4,501,527) and were charged administration fees of £66,661 (2023: £41,518).
Cochrane USA Inc. entered into a dry lease agreement with Cochrane Steel Products (Pty) Ltd in terms of which Cochrane Steel Products (Pty) Ltd was granted the indefinite use of an aircraft. During the year Cochrane USA Inc. charged a cost re-imbursement of £1,440,121 (2023: £1,466,060) to Cochrane Steel Products (Pty) Ltd.
During the year the Group has incurred a cost contribution charge from Cochrane Steel Products (Pty) Ltd for the use of the aircraft for the Group’s benefit of £514,348 (2023: £872,715).
Cochrane Industries UK Limited,
During the year the directors identified that in the prior year, the administration costs of Cochrane Industries UK Limited, a subsidiary in the Group, were overstated by £41,350. The impact of the prior year adjustment has increased retained earnings by £41,350 and a decrease in accruals.
During the year the directors identified that in the prior year trade debtors and other tax and social security were understated by £86,345 as a result of not reclassifying material balances. There is no impact on retained earnings.
During the year the directors identified that in the prior year the corporation tax creditor was understated by £151,083 and other debtors also understated by the same amount. There is no impact on retained earnings.
Cochrane USA Inc
During the year the directors identified that in the FY 2022 the deferred tax payable was understated by £543,148 and provision also understated by the same amount. The impact on the retained earnings is a decrease of £543,148.
During the year the directors identified that in the prior year revenue was overstated by £862,999, cost of sales overstated by £81,957, administrative expenses understated by £1,351,004 and other income understated by £1,466,060.
Consolidated accounts
The total impact of the above adjustments in FY2022 was an increase of £590,763 in the closing retained earnings and equity and decrease in debtors due more than one year by £590,763.
The total impact of the above adjustments in FY2023 was a decrease of £204,774 in the closing retained earnings and equity, an increase in creditors less than one year of £1,060,761 and a decrease in debtors due within one year of £855,987.
Please see further analysis below: