Galvanised Sheets & Coil Limited - Limited company accounts 23.2

REGISTERED NUMBER: 01035162 (England and Wales)

GALVANISED SHEETS & COIL LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

DIRECTORS:

D W Broadhurst

L L Wheeler

REGISTERED OFFICE:

Doris Road

Bordesley Green

Birmingham

West Midlands

B9 4SJ

REGISTERED NUMBER:

01035162 (England and Wales)

AUDITORS:

Sephton & Company LLP

Chartered Certified Accountants

Statutory Auditors

Marston House

5 Elmdon Lane

Marston Green

Solihull

West Midlands

B37 7DL

The directors present their strategic report for the year ended 31 December 2022.

REVIEW OF BUSINESS

We aim to present a balanced and comprehensive review of the development and performance of our business during the period and its position at the period end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

There has been no change in the principal activities of the company during the period.

PRINCIPAL RISKS AND UNCERTAINTIES

As for many business of our size, the business environment in which we operate continues to be challenging. The market is highly competitive and margins continue to be under pressure. we are of course subject to world economic patterns and the level of activity within our economy.

With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside our control.

The company's principle financial instruments comprise bank balances, trade creditors and trade debtors. The main purpose of these instruments is to raise funds for the company's operations.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet the amounts due.

Investments of cash surpluses are made through banks and companies which must fulfil credit rating criteria approved by the board.

DEVELOPMENT AND PERFORMANCE

We consider that our key performance indicators are those that communicate performance and strength of the company as a whole, these being turnover, gross margin and return on capital employed.

Turnover has decreased by 2.74% compared to the previous period. Gross margin has decreased to 20.32% (2021 24.19%).

Overall there has been an operating profit of £1,627,529 (2021 £2,675,088) and a profit before tax of £1,634,483 (2021 £2,675,168). After taxation £1,331,314 (2021 £2,167,232) has been added to reserves.

Return on capital employed has decreased to 21.52% (2021 42.14%). Return on capital employed is calculated as profit before, interest and tax divided by capital employed, which constitutes total assets less current liabilities.

ON BEHALF OF THE BOARD:

D W Broadhurst - Director

30 August 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2022.

DIVIDENDS

Interim dividends totalling £3529.41168 per share were paid during the year. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2022 will be £ 120,000 .

The director recommends no change to the monthly dividend.

DIRECTORS

D W Broadhurst has held office during the whole of the period from 1 January 2022 to the date of this report.

Other changes in directors holding office are as follows:

L L Wheeler - appointed 18 August 2022

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Sephton & Company LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

D W Broadhurst - Director

30 August 2023

Opinion

We have audited the financial statements of Galvanised Sheets & Coil Limited (the 'company') for the year ended 31 December 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, 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 our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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.

The corresponding figures shown in these financial statements are unaudited.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognizing that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Steven Douglas Connell (Senior Statutory Auditor)

for and on behalf of Sephton & Company LLP

Chartered Certified Accountants

Statutory Auditors

Marston House

5 Elmdon Lane

Marston Green

Solihull

West Midlands

B37 7DL

30 August 2023

TURNOVER

3

16,206,651

16,662,787

Cost of sales

12,913,803

12,631,957

GROSS PROFIT

3,292,848

4,030,830

Administrative expenses

1,665,319

1,363,782

1,627,529

2,667,048

Other operating income

-

8,040

OPERATING PROFIT

5

1,627,529

2,675,088

Interest receivable and similar income

6

7,249

87

1,634,778

2,675,175

Interest payable and similar expenses

7

295

7

PROFIT BEFORE TAXATION

1,634,483

2,675,168

Tax on profit

8

303,169

507,936

PROFIT FOR THE FINANCIAL YEAR

1,331,314

2,167,232

PROFIT FOR THE YEAR

1,331,314

2,167,232

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,331,314

2,167,232

FIXED ASSETS

Tangible assets

10

86,080

73,309

CURRENT ASSETS

Stocks

11

1,851,952

2,387,399

Debtors

12

2,937,201

3,938,015

Cash at bank and in hand

3,503,174

3,058,507

8,292,327

9,383,921

CREDITORS

Amounts falling due within one year

13

815,163

3,109,104

NET CURRENT ASSETS

7,477,164

6,274,817

TOTAL ASSETS LESS CURRENT LIABILITIES

7,563,244

6,348,126

PROVISIONS FOR LIABILITIES

15

3,804

-

NET ASSETS

7,559,440

6,348,126

CAPITAL AND RESERVES

Called up share capital

16

34

34

Capital redemption reserve

17

66

66

Retained earnings

17

7,559,340

6,348,026

SHAREHOLDERS' FUNDS

7,559,440

6,348,126

The financial statements were approved by the Board of Directors and authorised for issue on 30 August 2023 and were signed on its behalf by:

D W Broadhurst - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2021

34

4,300,794

66

4,300,894

Changes in equity

Dividends

-

(120,000

)

-

(120,000

)

Total comprehensive income

-

2,167,232

-

2,167,232

Balance at 31 December 2021

34

6,348,026

66

6,348,126

Changes in equity

Dividends

-

(120,000

)

-

(120,000

)

Total comprehensive income

-

1,331,314

-

1,331,314

Balance at 31 December 2022

34

7,559,340

66

7,559,440

Cash flows from operating activities

Cash generated from operations

1

1,421,453

2,436,258

Interest paid

(295

)

(7

)

Government grants

-

8,040

Tax paid

(828,591

)

(22,416

)

Net cash from operating activities

592,567

2,421,875

Cash flows from investing activities

Purchase of tangible fixed assets

(35,749

)

(53,409

)

Sale of tangible fixed assets

-

16,709

Interest received

7,249

87

Net cash from investing activities

(28,500

)

(36,613

)

Cash flows from financing activities

Amount withdrawn by directors

600

-

Equity dividends paid

(120,000

)

(120,000

)

Net cash from financing activities

(119,400

)

(120,000

)

Increase in cash and cash equivalents

444,667

2,265,262

Cash and cash equivalents at beginning of year

2

3,058,507

793,245

Cash and cash equivalents at end of year

2

3,503,174

3,058,507

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2022

2021

(Unaudited)

£

£

Profit before taxation

1,634,483

2,675,168

Depreciation charges

22,978

19,189

Profit on disposal of fixed assets

-

(5,604

)

Government grants

-

(8,040

)

Finance costs

295

7

Finance income

(7,249

)

(87

)

1,650,507

2,680,633

Decrease/(increase) in stocks

535,447

(276,543

)

Decrease/(increase) in trade and other debtors

1,022,104

(250,083

)

(Decrease)/increase in trade and other creditors

(1,786,605

)

282,251

Cash generated from operations

1,421,453

2,436,258

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2022

31/12/22

1/1/22

£

£

Cash and cash equivalents

3,503,174

3,058,507

Year ended 31 December 2021

31/12/21

1/1/21

(Unaudited)

£

£

Cash and cash equivalents

3,058,507

793,245

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/22

Cash flow

At 31/12/22

£

£

£

Net cash

Cash at bank and in hand

3,058,507

444,667

3,503,174

3,058,507

444,667

3,503,174

Total

3,058,507

444,667

3,503,174

1.	STATUTORY INFORMATION

Galvanised Sheets & Coil Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates

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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, cash and bank balances, loans to or from related parties and current asset investments. All such instruments are measured initially and subsequently at the transaction price.

At the end of each reporting period debt financial assets are assessed for impairment, and their carrying value reduced if necessary. Any impairment is recognised in the profit and loss account.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Government grants

Grants relating to revenue are recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2022

2021

(Unaudited)

£

£

Steel sales

16,206,651

16,662,787

16,206,651

16,662,787

An analysis of turnover by geographical market is given below:

2022

2021

(Unaudited)

£

£

United Kingdom

16,206,651

16,662,787

16,206,651

16,662,787

4.	EMPLOYEES AND DIRECTORS

2022

2021

(Unaudited)

£

£

Wages and salaries

775,780

650,013

Social security costs

90,529

66,526

Other pension costs

14,324

12,956

880,633

729,495

The average number of employees during the year was as follows:

2022

2021

(Unaudited)

Directors

2

1

Direct labour

13

14

Sales

2

2

Administration

2

2

19

19

2022

2021

(Unaudited)

£

£

Directors' remuneration

139,691

-

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2022

2021

(Unaudited)

£

£

Other operating leases

83,597

83,093

Depreciation - owned assets

22,978

19,189

Profit on disposal of fixed assets

-

(5,604

)

Auditors' remuneration

5,000

-

6.

INTEREST RECEIVABLE AND SIMILAR INCOME

2022

2021

(Unaudited)

£

£

Bank interest received

7,249

87

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2022

2021

(Unaudited)

£

£

Bank interest

-

7

Late payment interest

295

-

295

7

8.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2022

2021

(Unaudited)

£

£

Current tax:

UK corporation tax

299,365

507,936

Deferred tax

3,804

-

Tax on profit

303,169

507,936

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2022

2021

(Unaudited)

£

£

Profit before tax

1,634,483

2,675,168

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2021 - 19%)

310,552

508,282

Effects of:

Expenses not deductible for tax purposes

(7,176

)

1,894

Capital allowances in excess of depreciation

(207

)

(2,240

)

Total tax charge

303,169

507,936