United Bright Bar Co. Limited - Limited company accounts 23.2

REGISTERED NUMBER: 01376360 (England and Wales)

United Bright Bar Co. Limited

Strategic Report, Directors' Report and

Audited Financial Statements

for the Year Ended 31 March 2023

Page

Company Information

1

Strategic Report

2

Directors' Report

3

Independent Auditors' Report

4

Statement of Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Financial Statements

11

Directors:

C J Evans

P A Lavender

J G Russell

Secretary:

P A Lavender

Registered office:

Unit 4, Four Ashes Industrial Estate

Station Road

Four Ashes

Wolverhampton

West Midlands

WV10 7DG

Registered number:

01376360 (England and Wales)

Auditors:

Cooper Parry Group Limited

Statutory Auditor

New Derwent House

69-73 Theobalds Road

London

WC1X 8TA

Bankers:

Lloyds

5 Market Square

Stafford

ST16 2JL

The directors present their strategic report for the year ended 31 March 2023.

Review of business

The year ending 31 March 2023 has been a difficult but successful year for the company in a volatile market.

The team's focus on quality and production control, strong customer support, effective purchasing and prudent financial management have enabled it to finish the year with a strong balance sheet, well placed to trade in a sector which continues to be uncertain.

The quotas which the UK government have imposed post-Brexit on our European suppliers, which make little sense given the almost complete absence of UK sources of suitable raw materials, has been an unnecessary added burden.

The Company expresses its thanks to all its partners - customers ,suppliers, finance providers and stakeholders - and of course its staff and management, for their support and hard work. It looks forward to working with them all in the years ahead.

There are no signs of the market becoming more stable and predictable and the Board is confident that the Company's strengths and adaptability to change will enable it to achieve a positive result in the next financial year.

Results

The profit for the year, after taxation, amounted to £1,660,458 (2022: £1,590,702).

On behalf of the board:

P A Lavender - Director

7 December 2023

The directors present their report with the financial statements of the company for the year ended 31 March 2023.

Principal activity

The principal activity of the company in the year under review was that of the manufacture of bright drawn steel.

Dividends

The total distribution of dividends for the year ended 31 March 2023 will be £1,021,803 (2022: £703,700).

Directors

The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report.

C J Evans

P A Lavender

J G Russell

Statement of directors' responsibilities

The directors are responsible for preparing the Strategic Report, the Directors' 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 audit business of Haines Watts LLP was acquired by Cooper Parry Group Limited on 14 November 2023. Haines Watts LLP has resigned as auditor and Cooper Parry Group Limited has been appointed in its place.

The auditors, Cooper Parry, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

On behalf of the board:

P A Lavender - Director

7 December 2023

Opinion

We have audited the financial statements of United Bright Bar Co. Limited (the 'company') for the year ended 31 March 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and 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 March 2023 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 Directors' Report, but does not include the financial statements and our Auditors' Report 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.

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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

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 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, 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 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:

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 discussed with the Directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance.

During the audit we focused on laws and regulations which could reasonably be expected to 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 and enquiries with management.

Our procedures in relation to fraud included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates. 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.

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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

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 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.

Jonathan Moughton (Senior Statutory Auditor)

for and on behalf of Cooper Parry Group Limited

Statutory Auditor

New Derwent House

69-73 Theobalds Road

London

WC1X 8TA

15 December 2023

Turnover

3

16,831,404

15,284,202

Cost of sales

(13,338,354

)

(11,626,498

)

Gross profit

3,493,050

3,657,704

Administrative expenses

(1,518,877

)

(1,670,602

)

1,974,173

1,987,102

Other operating income

-

26,876

Operating profit

1,974,173

2,013,978

Interest receivable and similar income

9,267

11,287

1,983,440

2,025,265

Interest payable and similar expenses

6

(12,261

)

(33,126

)

Profit before taxation

7

1,971,179

1,992,139

Tax on profit

8

(310,721

)

(401,437

)

Profit for the financial year

1,660,458

1,590,702

Other comprehensive income

-

-

Total comprehensive income for the year

1,660,458

1,590,702

Fixed assets

Tangible assets

10

714,941

822,051

Current assets

Stocks

11

798,181

825,205

Debtors

12

4,359,303

5,015,577

Cash at bank and in hand

1,885,317

691,192

7,042,801

6,531,974

Creditors

Amounts falling due within one year

13

4,690,716

4,909,625

Net current assets

2,352,085

1,622,349

Total assets less current liabilities

3,067,026

2,444,400

Provisions for liabilities

15

115,956

131,985

Net assets

2,951,070

2,312,415

Capital and reserves

Called up share capital

16

68,667

68,667

Share premium

17

260,317

260,317

Retained earnings

17

2,622,086

1,983,431

Shareholders' funds

2,951,070

2,312,415

The financial statements were approved by the Board of Directors and authorised for issue on 7 December 2023 and were signed on its behalf by:

P A Lavender - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 April 2021

68,667

1,096,429

260,317

1,425,413

Changes in equity

Dividends

-

(703,700

)

-

(703,700

)

Total comprehensive income

-

1,590,702

-

1,590,702

Balance at 31 March 2022

68,667

1,983,431

260,317

2,312,415

Changes in equity

Dividends

-

(1,021,803

)

-

(1,021,803

)

Total comprehensive income

-

1,660,458

-

1,660,458

Balance at 31 March 2023

68,667

2,622,086

260,317

2,951,070

Cash flows from operating activities

Cash generated from operations

20

2,278,835

1,567,449

Interest paid

(12,261

)

(33,126

)

Tax paid

(209,556

)

37,248

Net cash from operating activities

2,057,018

1,571,571

Cash flows from investing activities

Purchase of tangible fixed assets

(20,475

)

(206,465

)

Interest received

9,267

11,287

Net cash from investing activities

(11,208

)

(195,178

)

Cash flows from financing activities

Loan repayments in year

-

(500,000

)

Equity dividends paid

(851,685

)

(703,700

)

Net cash from financing activities

(851,685

)

(1,203,700

)

Increase in cash and cash equivalents

1,194,125

172,693

Cash and cash equivalents at beginning of year

21

691,192

518,499

Cash and cash equivalents at end of year

21

1,885,317

691,192

1.	Statutory information

United Bright Bar Co. 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.

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

The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period.

There is estimation uncertainty in calculating bad debt provisions and a review of trade debtors is carried regularly. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provision do not match the level of debts which ultimately prove to be uncollectable.

There is also estimation uncertainty in calculating stock provisions. Slow moving and obsolete stocks are monitored during the year. Whilst every attempt is made to ensure that the stock provisions are as accurate as possible, there remain a risk that the provisions do not match the ultimate unrealised value of stock held.

Turnover

The turnover shown in the profit and loss account represents amounts invoiced during the year for the manufacture of bright drawn steel, exclusive of Value Added Tax.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Leasehold property

-

Straight line over the term of the lease

Plant & machinery

-

5% - 10% on cost per annum

Fixtures & fittings

-

12.5% on cost per annum

Office equipment

-

33.3% on cost per annum

Motor vehicles

-

25% on cost per annum

Stocks

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.The company is the beneficiary of Research & Development (R&D) tax relief from the UK Government in the form of reductions in its annual tax liability, as well as repayable tax credits. Current tax assets or reductions in current tax liabilities for R&D claims are only recognised when the amount can be reliably determined and the probability of HM Revenue & Customs accepting the claim is considered high.

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.

Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the income statement.

Pensions

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.

Financial instruments policy

Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts which are an integral part of the company's cash management.

Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.

Going concern

The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment.

Based on these assessments, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

3.

Turnover

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

An analysis of turnover by geographical market is given below:

2023

2022

£

£

United Kingdom

16,002,474

14,403,215

Europe

795,304

697,114

Rest of World

33,626

183,873

16,831,404

15,284,202

4.	Employees and directors

2023

2022

£

£

Wages and salaries

1,135,119

1,102,696

Social security costs

134,341

126,751

Other pension costs

73,647

164,035

1,343,107

1,393,482

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

2023

2022

Employees

29

28

5.	Directors' emoluments

2023

2022

£

£

Directors' remuneration

300,406

287,151

Directors' pension contributions to money purchase schemes

35,641

129,536

Information regarding the highest paid director is as follows:

2023

2022

£

£

Emoluments etc

121,036

114,678

Pension contributions to money purchase schemes

31,061

125,171

6.

Interest payable and similar expenses

2023

2022

£

£

Other loan interest payable

12,261

33,126

7.	Profit before taxation

The profit is stated after charging/(crediting):

2023

2022

£

£

Depreciation - owned assets

127,585

145,700

Foreign exchange differences

15,544

(1,758

)

Auditors' remuneration

11,800

10,000

Operating leases - other

22,888

24,581

Hire of plant and equipment

7,954

8,928

Leasehold property rent

243,524

234,389

8.

Taxation

Analysis of the tax charge

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

2023

2022

£

£

Current tax:

UK corporation tax

363,998

209,556

Prior year tax

(37,248

)

24,669

Total current tax

326,750

234,225

Deferred tax

(16,029

)

167,212

Tax on profit

310,721

401,437

The entries for corporation tax relate to R&D tax credit claims made in respect of the year. The company will continue to make tax claims in future years.

9.

Dividends

2023

2022

£

£

Ordinary shares of £1 each

Interim

1,021,803

703,700

10.	Tangible fixed assets

Fixtures

Short

Plant and

and

leasehold

machinery

fittings

£

£

£

Cost

At 1 April 2022

20,417

3,050,399

4,467

Additions

-

17,036

-

At 31 March 2023

20,417

3,067,435

4,467

Depreciation

At 1 April 2022

6,499

2,242,452

4,281

Charge for year

2,320

123,981

186

At 31 March 2023

8,819

2,366,433

4,467

Net book value

At 31 March 2023

11,598

701,002

-

At 31 March 2022

13,918

807,947

186

Motor

Office

vehicles

equipment

Totals

£

£

£

Cost

At 1 April 2022

18,500

24,481

3,118,264

Additions

-

3,439

20,475

At 31 March 2023

18,500

27,920

3,138,739

Depreciation

At 1 April 2022

18,500

24,481

2,296,213

Charge for year

-

1,098

127,585

At 31 March 2023

18,500

25,579

2,423,798

Net book value

At 31 March 2023

-

2,341

714,941

At 31 March 2022

-

-

822,051

11.

Stocks

2023

2022

£

£

Raw materials

154,854

448,313

Finished goods

643,327

376,892

798,181

825,205

12.

Debtors: amounts falling due within one year

2023

2022

£

£

Trade debtors

4,191,510

4,879,141

Other debtors

167,793

136,436

4,359,303

5,015,577