Registered number: 03133576
FOR THE YEAR ENDED 31 AUGUST 2025
FERNITE OF SHEFFIELD LIMITED
COMPANY INFORMATION
FERNITE OF SHEFFIELD LIMITED
CONTENTS
FERNITE OF SHEFFIELD LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2025
The director presents his strategic report for the year ended 31 August 2025.
The financial results for the year ended 31 August 2025 are in line with the director's expectations. The company continues to focus on achieving growth through solving cutting issues for its customers and becoming their supplier of choice.
The company continues to develop operations and workforce, with the objective of being a great place to work for great people.
The company continues to develop operations and workforce, with the objective of being a great place to work for great people.
The company continues to take advantage of turbulence on international markets by flexibly adapting and supplying the best quality products combined with outstanding applications knowledge and innovative approach.
The recent increase to NI is not helpful and the company has re-structured to grow core business that requires less overhead, focussing investment in efficiencies to expand within key niche markets to grow profitability.
The recent increase to NI is not helpful and the company has re-structured to grow core business that requires less overhead, focussing investment in efficiencies to expand within key niche markets to grow profitability.
The other KPIs that the company use are operational (staff retention and motivation) and from a customer service perspective (customer feeback, retention and new customers).
This report was approved by the board on 28 May 2026 and signed on its behalf.
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FERNITE OF SHEFFIELD LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 AUGUST 2025
The director presents his report and the financial statements for the year ended 31 August 2025.
The director is responsible for preparing the Strategic report, the Director's report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the director is required to:
∙select suitable accounting policies for the company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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 to enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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.
The profit for the year, after taxation, amounted to £99,978 (2024 - £115,882).
No dividends have been paid during the year (2024: £Nil).
The director who served during the year was:
The company will continue in its quest to build a great UK manufacturing business, recognised as its customers' favourite supplier, manufacturing great products with a friendly, reliable service. The company will be a great place to work for great employees, generating a sustainable profit.
To that end the company will continue to optimise key processes and expand market share in existing markets in order to achieve over £100,000 turnover per employee during 2025-26, shifting emphasis towards manufactured products. The director believes this approach will result in significant growth in turnover and profitability in 2025-26, with additional turnover of £1m and an additional 10 percentage points in gross profit. Apprenticeships and training will be used to develop the workforce and maintain status as the premier employer in the industry.
To that end the company will continue to optimise key processes and expand market share in existing markets in order to achieve over £100,000 turnover per employee during 2025-26, shifting emphasis towards manufactured products. The director believes this approach will result in significant growth in turnover and profitability in 2025-26, with additional turnover of £1m and an additional 10 percentage points in gross profit. Apprenticeships and training will be used to develop the workforce and maintain status as the premier employer in the industry.
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FERNITE OF SHEFFIELD LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
The auditors, Barnett & Turner Accountants Ltd, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 28 May 2026 and signed on its behalf.
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FERNITE OF SHEFFIELD LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FERNITE OF SHEFFIELD LIMITED
We have audited the financial statements of Fernite of Sheffield Limited (the 'company') for the year ended 31 August 2025, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of 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 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 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.
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FERNITE OF SHEFFIELD LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FERNITE OF SHEFFIELD LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The director is 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.
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.
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 Director's report.
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FERNITE OF SHEFFIELD LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FERNITE OF SHEFFIELD LIMITED (CONTINUED)
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 Auditors' 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.
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:
As part of our planning process:
∙We enquired of management regarding the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud.
∙We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006 and current tax legislation.
∙We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.
∙Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
∙Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.
∙Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
∙Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to the valuation of stock.
∙Testing key revenue lines, in particular cut-off, for evidence of management bias.
∙Performing a physical verification of key assets and stock items (including testing of the stock system).
∙Obtaining third-party confirmation of material bank balances.
∙Documenting and verifying all significant related party balances and transactions.
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FERNITE OF SHEFFIELD LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FERNITE OF SHEFFIELD LIMITED (CONTINUED)
∙Reviewing documentation such as the company board minutes, correspondence with solicitors, for discussions of irregularities including fraud.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the director.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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.
for and on behalf of
Chartered Accountants
Registered Auditors
Cromwell House
68 West Gate
Nottinghamshire
NG19 1RR
29 May 2026
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FERNITE OF SHEFFIELD LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2025
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FERNITE OF SHEFFIELD LIMITED
REGISTERED NUMBER: 03133576
BALANCE SHEET
AS AT 31 AUGUST 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 May 2026.
The notes on pages 11 to 23 form part of these financial statements.
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FERNITE OF SHEFFIELD LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2025
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FERNITE OF SHEFFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
Fernite of Sheffield Limited is a private limited company incorporated and domiciled in England. Its registered office and principal place of business is situated at 1 Orgreave Road, Sheffield S13 9LQ.
The principal activity of the company is the manufacture of industrial cutting blades.
The principal activity of the company is the manufacture of industrial cutting blades.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The following principal accounting policies have been applied:
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7;
∙the requirement of paragraph 24(b) of IFRS 6 Exploration for and Evaluation of Mineral Resources to disclose the operating and investing cash flows arising from the exploration for and evaluation of mineral resources (when applying this standard in accordance with paragraph 34.11 of FRS 102).
This information is included in the consolidated financial statements of Green Mill Industries Limited as at 31 August 2025 and these financial statements may be obtained from Companies House.
The company is supported by its bankers in the form of an invoice financing facility. Discussions with the bank give the director no reason to believe that this support will be withdrawn. The director has reviewed the working capital requirements of the business and anticipated cash flows for the 12 months ending 31 May 2027.
On the basis of his assessment of the company’s financial position and of the enquiries made of the bank, the director has a reasonable expectation that the company will be able to continue in operational existence for the foreseeable future. Thus, he continues to adopt the going concern basis of accounting in preparing the financial statements.
On the basis of his assessment of the company’s financial position and of the enquiries made of the bank, the director has a reasonable expectation that the company will be able to continue in operational existence for the foreseeable future. Thus, he continues to adopt the going concern basis of accounting in preparing the financial statements.
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FERNITE OF SHEFFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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FERNITE OF SHEFFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
2.Accounting policies (continued)
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FERNITE OF SHEFFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
2.Accounting policies (continued)
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FERNITE OF SHEFFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
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FERNITE OF SHEFFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
2.Accounting policies (continued)
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Basic 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 the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
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FERNITE OF SHEFFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
Depreciation of tangible fixed assets:
Determining the appropriate rate of depreciation of tangible fixed assets requires an estimation of the useful economic life and ultimate net realisable value. The useful economic life is determined to be the period during which each asset will generate positive cash flows for the company.
Stock valuation:
Stock is valued at the lower of cost and net realisable value. cost is determined on a first-in, first-out basis. Stock is not affected by seasonality. Manufactured goods are valued using a Bill of Material, including estimated costs for machine set-up time and wages for the estimated time of the operator.
Analysis of turnover by country of destination:
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FERNITE OF SHEFFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
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FERNITE OF SHEFFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
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FERNITE OF SHEFFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
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FERNITE OF SHEFFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
The company uses an invoice financing facility for a proportion of its sales ledger.
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FERNITE OF SHEFFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
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FERNITE OF SHEFFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
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The company operates a defined contributions pension scheme. 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 £46,721 (2024 - £51,105). Contributions totalling £9,595 (2024 - £15,999) were payable to the fund at the balance sheet date and are included in creditors.
The company is a wholly owned subsidiary of Green Mill Industries Limited, a private limited company incorporated and domiciled in England.
J R Kitching holds the controlling interest in Green Mill Industries Limited and is therefore the ultimate controlling party of Fernite of Sheffield Limited.
J R Kitching holds the controlling interest in Green Mill Industries Limited and is therefore the ultimate controlling party of Fernite of Sheffield Limited.
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