Leeds Galvanising & Powder Coating Limited - Period Ending 2023-10-31

LEEDS GALVANISING & POWDER COATING LIMITED - Company Information

Leeds Galvanising & Powder Coating Limited 07050671 false 2022-11-01 2023-10-31 2023-10-31 The principal activity of the company is hot dip galvanising, powder coating and shot blasting on mild steel fabrications. Digita Accounts Production Advanced 6.30.9574.0 true true true true true true true Class 1 Class 2 Class 3 true false true 07050671 2022-11-01 2023-10-31 07050671 2023-10-31 07050671 bus:Director2 1 2023-10-31 07050671 bus:Director7 2023-10-31 07050671 bus:OrdinaryShareClass1 bus:CumulativeShares 2023-10-31 07050671 2 2023-10-31 07050671 core:AcceleratedTaxDepreciationDeferredTax 2023-10-31 07050671 core:RetainedEarningsAccumulatedLosses 2023-10-31 07050671 core:ShareCapital 2023-10-31 07050671 core:CurrentFinancialInstruments 2023-10-31 07050671 core:CurrentFinancialInstruments core:WithinOneYear 2023-10-31 07050671 core:Non-currentFinancialInstruments core:AfterOneYear 2023-10-31 07050671 core:OtherResidualIntangibleAssets 2023-10-31 07050671 core:FurnitureFittingsToolsEquipment 2023-10-31 07050671 core:MotorVehicles 2023-10-31 07050671 bus:FRS102 2022-11-01 2023-10-31 07050671 bus:Audited 2022-11-01 2023-10-31 07050671 bus:FullAccounts 2022-11-01 2023-10-31 07050671 bus:RegisteredOffice 2022-11-01 2023-10-31 07050671 bus:Director1 2022-11-01 2023-10-31 07050671 bus:Director2 2022-11-01 2023-10-31 07050671 bus:Director2 1 2022-11-01 2023-10-31 07050671 bus:Director6 2022-11-01 2023-10-31 07050671 bus:Director7 2022-11-01 2023-10-31 07050671 bus:OrdinaryShareClass1 bus:CumulativeShares 2022-11-01 2023-10-31 07050671 bus:PrivateLimitedCompanyLtd 2022-11-01 2023-10-31 07050671 core:RetainedEarningsAccumulatedLosses 2022-11-01 2023-10-31 07050671 core:ShareCapital 2022-11-01 2023-10-31 07050671 core:IntangibleAssetsOtherThanGoodwill 2022-11-01 2023-10-31 07050671 core:OtherResidualIntangibleAssets 2022-11-01 2023-10-31 07050671 core:PlantEquipmentUnderOperatingLeases 2022-11-01 2023-10-31 07050671 core:ReportableOperatingSegment1 2022-11-01 2023-10-31 07050671 core:ReportableOperatingSegment2 2022-11-01 2023-10-31 07050671 core:ReportableOperatingSegment3 2022-11-01 2023-10-31 07050671 core:FurnitureFittings 2022-11-01 2023-10-31 07050671 core:FurnitureFittingsToolsEquipment 2022-11-01 2023-10-31 07050671 core:MotorVehicles 2022-11-01 2023-10-31 07050671 core:PlantMachinery 2022-11-01 2023-10-31 07050671 core:UKTax 2022-11-01 2023-10-31 07050671 1 2022-11-01 2023-10-31 07050671 countries:EnglandWales 2022-11-01 2023-10-31 07050671 2022-10-31 07050671 bus:Director2 1 2022-10-31 07050671 core:RetainedEarningsAccumulatedLosses 2022-10-31 07050671 core:ShareCapital 2022-10-31 07050671 core:OtherResidualIntangibleAssets 2022-10-31 07050671 core:FurnitureFittingsToolsEquipment 2022-10-31 07050671 core:MotorVehicles 2022-10-31 07050671 2021-11-01 2022-10-31 07050671 2022-10-31 07050671 bus:OrdinaryShareClass1 bus:CumulativeShares 2022-10-31 07050671 2 2022-10-31 07050671 core:AcceleratedTaxDepreciationDeferredTax 2022-10-31 07050671 core:RetainedEarningsAccumulatedLosses 2022-10-31 07050671 core:ShareCapital 2022-10-31 07050671 core:CurrentFinancialInstruments 2022-10-31 07050671 core:CurrentFinancialInstruments core:WithinOneYear 2022-10-31 07050671 core:Non-currentFinancialInstruments core:AfterOneYear 2022-10-31 07050671 core:OtherResidualIntangibleAssets 2022-10-31 07050671 core:FurnitureFittingsToolsEquipment 2022-10-31 07050671 core:MotorVehicles 2022-10-31 07050671 core:RetainedEarningsAccumulatedLosses 2021-11-01 2022-10-31 07050671 core:ShareCapital 2021-11-01 2022-10-31 07050671 core:PlantEquipmentUnderOperatingLeases 2021-11-01 2022-10-31 07050671 core:ReportableOperatingSegment1 2021-11-01 2022-10-31 07050671 core:ReportableOperatingSegment3 2021-11-01 2022-10-31 07050671 core:UKTax 2021-11-01 2022-10-31 07050671 2021-10-31 07050671 core:RetainedEarningsAccumulatedLosses 2021-10-31 07050671 core:ShareCapital 2021-10-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 07050671

Leeds Galvanising & Powder Coating Limited

Annual Report and Financial Statements

for the Year Ended 31 October 2023

Leeds Galvanising & Powder Coating Limited

Contents

Company Information	1
Strategic Report	2 to 3
Directors' Report	4
Statement of Directors' Responsibilities	5
Independent Auditor's Report	6 to 8
Profit and Loss Account	9
Statement of Comprehensive Income	10
Balance Sheet	11
Statement of Changes in Equity	12
Notes to the Financial Statements	13 to 23

Leeds Galvanising & Powder Coating Limited

Company Information

Directors

D Cox

S P Kelly

S L Kelly

A Lawrence

Registered office

Unit 1 Albion Park
Armley Road
Leeds
West Yorkshire
LS12 2EJ

Auditors

KJA Kilner Johnson Limited
Network House
Stubs Beck Lane
West 26 Ind. Estate
Cleckheaton
West Yorkshire
BD19 4TT

Leeds Galvanising & Powder Coating Limited

Strategic Report for the Year Ended 31 October 2023

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

Principal activity

The principal activities of the company were those of hot dip galvanising, powder coating and shot blasting on mild steel fabrications.

Fair review of the business

Market conditions for the period ending 31st October 2023 were significantly softer than the previous financial year with general volumes and margins being difficult to maintain. Demand for higher end finishes where the Company applies several coatings to the same product was significantly reduced. This along with a general softening in the fencing, oil & gas, trailers & architectural steelwork markets presented a challenging sales environment.

This market changes along with significant commodity price volatility primarily driven by the escalation of events in Ukraine resulted in huge and previously unseen cost spikes in respect of gas, electricity and zinc and presented a very challenging first 6 months to the trading year. Given this reduced demand for services along with market conditions, the Company was unable to fully pass on increased costs during this period which resulted in a gross margin reduction of more than 10% in the first half of the year.

Although significantly increased by comparison to previously seen costs, thankfully supplier prices stabilised following the winter months, resulting in margins in the second half of the year returning to historical and targeted levels and a reporting period gross profit of £4.13m

Overall volumes in the reporting period were static with the previous financial year, however this only represented an increase in income by £56,000 to £10.45m with operating profit falling by £1.08m primarily due to the significant reduction in gross profit in the first half.

Given the changes in demand seen in the second half along with increased supplier price stability, the Directors feel the company is in an excellent position to capitalise from these market fundamentals and maintain a positive view for the next financial year.

The Directors employed significant resource in respect of R&D and Capital Expenditure to ensure the Company remained at the forefront of technological and engineering improvements and benefitted during the year from significant improvements made in previous years. Several projects are currently earmarked for next year with improvements to control/identification of materials along with building repairs.

The Health, safety and welfare of our employees remains at the forefront of the Director’s concerns and the company continues to monitor all aspects of these on a regular basis in line with our ISO45001 accreditation. No financial restraints are made by the Board in these areas allowing Management to make decisions on the improvement of H&S/Welfare autonomously.

Further, the Company employs significant resource to training and development allowing transparent growth for employees to develop skills and understanding of our processes and in-turn, salary increases.

Given the challenging conditions in the reporting period the Directors consider the results to be positive.

Leeds Galvanising & Powder Coating Limited

Strategic Report for the Year Ended 31 October 2023 (continued)

Key performance indicators

The Directors and management regularly review the operating parameters of the Company and employ a broad range of Key Performance Indicators (KPI’s) covering all aspects of our operations including financial and non-financial targets to monitor the business performance as a whole.

These processes and targets are well known to staff and the Directors uphold the strong belief that no employees are incentivised through volume, with Quality, Health, Safety and Environment being the core areas that the Company drives it culture upon.

Principal risks and uncertainties

The risks to the Company are assessed on a regular basis though a number of metrics. These include regular analysis of commodity price exposure particularly in respect of zinc, gas and electricity and apply levies and surcharges to mitigate these fluctuations.

Further assessments in respect of risks associated with customers, financial exposure, suppliers, and liquidity along with health, safety and environment are undertaken periodically in line with our ISO9001, 14001 and 45001 accreditations.

Approved and authorised by the Board on 23 April 2024 and signed on its behalf by:

.........................................
S P Kelly
Director

Leeds Galvanising & Powder Coating Limited

Directors' Report for the Year Ended 31 October 2023

The directors present their report and the financial statements for the year ended 31 October 2023.

Directors of the company

The directors who held office during the year were as follows:

D Cox

S P Kelly

S L Kelly

A Lawrence (appointed 24 November 2022)

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

KJA Kilner Johnson Limited were appointed as auditors to the company and in accordance with s487(2) of the Companies Act 2006 they are deemed reappointed annually.

Approved and authorised by the Board on 23 April 2024 and signed on its behalf by:

.........................................
S P Kelly
Director

Leeds Galvanising & Powder Coating Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

•	select suitable accounting policies and 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 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.

Leeds Galvanising & Powder Coating Limited

Independent Auditor's Report to the Members of Leeds Galvanising & Powder Coating Limited

Opinion

We have audited the financial statements of Leeds Galvanising & Powder Coating Limited (the 'company') for the year ended 31 October 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, 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 October 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 auditor 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 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Leeds Galvanising & Powder Coating Limited

Independent Auditor's Report to the Members of Leeds Galvanising & Powder Coating Limited (continued)

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

•	the Strategic Report and 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 our 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 and 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 [set out on page 5], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Leeds Galvanising & Powder Coating Limited

Independent Auditor's Report to the Members of Leeds Galvanising & Powder Coating Limited (continued)

While planning our audit, we have made enquiries of management and those charged with governance around any actual or potential litigation and claims against the company for non-compliance with specific laws and regulations. The same has been done in respect of any instances of fraud or irregularities. The responses received have been communicated with the engagement team at the planning stage.

We have not been informed of any specific laws or regulatory related issues that could materially impact the financial statements in addition to this, there has been no suspected fraud or irregularities reported to us.

While planning our audit the engagement partner selected appropriately trained staff to be engaged in the audit and the team are allocated based on their competence and capabilities.

The audit work undertaken is a substantive work based audit approach, reviewing to source documentation where appropriate and includes a review and walkthrough of the systems which management have put in place. These tests are directional. Therefore, they are designed in a way to maximise audit effectiveness and the possible identification of any material fraud, irregularities, or instances of systems and procedure breaches. Our testing did not identify any issues that requires any additional reporting.

These tests and other areas of our audit work are designed to enhance our ability to detect cases of material fraud and certain irregularities. It should be noted that our audit is carried out using a material based approach and therefore does not test every transaction, as such it would not detect all instances of irregularities and specifically fraud which is inherently more difficult to detect.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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.

......................................
Raza Effendi (Senior Statutory Auditor)
For and on behalf of KJA Kilner Johnson Limited, Statutory Auditor

Network House
Stubs Beck Lane
West 26 Ind. Estate
Cleckheaton
West Yorkshire
BD19 4TT

23 April 2024

Leeds Galvanising & Powder Coating Limited

Profit and Loss Account for the Year Ended 31 October 2023

	Note	2023 £	2022 £
Turnover	3	10,458,868	10,402,562
Cost of sales		(6,328,185)	(5,344,606)
Gross profit		4,130,683	5,057,956
Administrative expenses		(1,922,443)	(1,733,081)
Operating profit	5	2,208,240	3,324,875
Other interest receivable and similar income	6	32,182	422
Interest payable and similar expenses	7	(14,861)	(4,043)
		17,321	(3,621)
Profit before tax		2,225,561	3,321,254
Tax on profit	10	(455,311)	(623,942)
Profit for the financial year		1,770,250	2,697,312

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

Leeds Galvanising & Powder Coating Limited

Statement of Comprehensive Income for the Year Ended 31 October 2023

	2023 £	2022 £
Profit for the year	1,770,250	2,697,312
Total comprehensive income for the year	1,770,250	2,697,312

Leeds Galvanising & Powder Coating Limited

(Registration number: 07050671)
Balance Sheet as at 31 October 2023

	Note	2023 £	2022 £
Fixed assets
Intangible assets	11	56,160	18,232
Tangible assets	12	508,178	665,462
		564,338	683,694
Current assets
Stocks	13	580,446	743,680
Debtors	14	5,162,313	2,790,134
Cash at bank and in hand		1,639,394	2,089,091
		7,382,153	5,622,905
Creditors: Amounts falling due within one year	16	(789,392)	(865,862)
Net current assets		6,592,761	4,757,043
Total assets less current liabilities		7,157,099	5,440,737
Creditors: Amounts falling due after more than one year	16	-	(14,567)
Provisions for liabilities		(127,045)	(166,366)
Net assets		7,030,054	5,259,804
Capital and reserves
Called up share capital		1	1
Retained earnings		7,030,053	5,259,803
Shareholders' funds		7,030,054	5,259,804

Approved and authorised by the Board on 23 April 2024 and signed on its behalf by:

.........................................
S P Kelly
Director

Leeds Galvanising & Powder Coating Limited

Statement of Changes in Equity for the Year Ended 31 October 2023

	Share capital £	Retained earnings £	Total £
At 1 November 2022	1	5,259,803	5,259,804
Profit for the year	-	1,770,250	1,770,250
At 31 October 2023	1	7,030,053	7,030,054

	Share capital £	Retained earnings £	Total £
At 1 November 2021	1	3,176,915	3,176,916
Profit for the year	-	2,697,312	2,697,312
Dividends	-	(614,424)	(614,424)
At 31 October 2022	1	5,259,803	5,259,804

Leeds Galvanising & Powder Coating Limited

Notes to the Financial Statements for the Year Ended 31 October 2023

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 1 Albion Park
Armley Road
Leeds
West Yorkshire
LS12 2EJ

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are presented in GBP, with the figures rounded to the nearest £1.

Summary of disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

- The requirement of Section 7 Statement of Cash Flows.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of the group prepares publicly available consolidated financial statements, which are intended to give a true and fair view of the assets, liabilities, financial position and profit and loss of the group.

Name of parent of group

These financial statements are consolidated in the financial statements of Leeds Galvanising Holdings Limited.

The financial statements of Leeds Galvanising Holdings Limited may be obtained from Companies House.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Leeds Galvanising & Powder Coating Limited

Notes to the Financial Statements for the Year Ended 31 October 2023 (continued)

2	Accounting policies (continued)

Judgements

The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenditure in the reporting period. Actual results may differ from those estimates.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Government grants

Revenue-based grants received are accrued and credited to the Profit and Loss Account in the same period that the related expenditure is incurred.

Capital-based grants and contributions received are credited in full to the Profit and Loss Account on receipt, where there are no conditions attached to its use. Where there are conditions attached to its use, the receipts are credited in the year that the capital expenditure is incurred.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Leeds Galvanising & Powder Coating Limited

Notes to the Financial Statements for the Year Ended 31 October 2023 (continued)

2	Accounting policies (continued)

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Plant and machinery	15% reducing balance
Fixtures and fittings	15% reducing balance
Motor vehicles	25% reducing balance

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Website development costs	6.5% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Leeds Galvanising & Powder Coating Limited

Notes to the Financial Statements for the Year Ended 31 October 2023 (continued)

2	Accounting policies (continued)

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Turnover

The analysis of the company's turnover for the year by class of business is as follows:

	2023 £	2022 £
Revenue	10,438,868	10,358,902
Grant income	20,000	43,660
	10,458,868	10,402,562

Turnover by geographical location has not been disclosed as in the directors’ opinion, the disclosure of this information would be seriously prejudicial to the interests of the group.

4	Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

Leeds Galvanising & Powder Coating Limited

Notes to the Financial Statements for the Year Ended 31 October 2023 (continued)

4	Other gains and losses (continued)

	2023 £	2022 £
(Loss)/gain on disposal of tangible assets	(12,865)	1,025

5	Operating profit

Arrived at after charging/(crediting)

	2023 £	2022 £
Depreciation expense	89,679	132,857
Amortisation expense	3,992	1,268
Operating lease expense - plant and machinery	41,909	46,129
Loss/(profit) on disposal of property, plant and equipment	12,865	(1,025)

6	Other interest receivable and similar income

	2023 £	2022 £
Other finance income	32,182	422

7	Interest payable and similar expenses

	2023 £	2022 £
Interest on obligations under finance leases and hire purchase contracts	5,913	3,580
Interest expense on other finance liabilities	3,490	-
Foreign exchange gains	5,458	463
	14,861	4,043

8	Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

	2023 £	2022 £
Wages and salaries	3,056,814	2,831,784
Other short-term employee benefits	8,236	6,995
Pension costs, defined contribution scheme	300,576	42,516
Other employee expense	3,527	5,379
	3,369,153	2,886,674

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

Leeds Galvanising & Powder Coating Limited

Notes to the Financial Statements for the Year Ended 31 October 2023 (continued)

8	Staff costs (continued)

	2023 No.	2022 No.
Production	64	64
Administration and support	9	9
Distribution	6	6
	79	79

9	Directors' remuneration

The directors' remuneration for the year was as follows:

	2023 £	2022 £
Remuneration	207,000	187,833

During the year the number of directors who were receiving benefits and share incentives was as follows:

	2023 No.	2022 No.
Accruing benefits under money purchase pension scheme	4	4

Taxation

Tax charged/(credited) in the profit and loss account

	2023 £	2022 £
Current taxation
UK corporation tax	494,632	566,134
Deferred taxation
Arising from origination and reversal of timing differences	(39,321)	57,808
Tax expense in the income statement	455,311	623,942

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 22.52% (2022 - 19%).

The differences are reconciled below:

Leeds Galvanising & Powder Coating Limited

Notes to the Financial Statements for the Year Ended 31 October 2023 (continued)

10	Taxation (continued)

	2023 £	2022 £
Profit before tax	2,225,561	3,321,254
Corporation tax at standard rate	501,148	631,038
Effect of expense not deductible in determining taxable profit (tax loss)	84	-
Deferred tax (credit)/expense relating to changes in tax rates or laws	(3,904)	39,928
Decrease from effect of tax incentives	(41,580)	(41,084)
Tax decrease from effect of capital allowances and depreciation	(437)	(5,940)
Total tax charge	455,311	623,942

Deferred tax

Deferred tax assets and liabilities

2023	Asset £	Liability £
Capital allowances in advance of depreciation	-	127,045
	-	127,045

2022	Asset £	Liability £
Capital allowances in advance of depreciation	-	166,366
	-	166,366

Leeds Galvanising & Powder Coating Limited

Notes to the Financial Statements for the Year Ended 31 October 2023 (continued)

11	Intangible assets

	Other intangible assets £	Total £
Cost or valuation
At 1 November 2022	19,500	19,500
Additions acquired separately	41,920	41,920
At 31 October 2023	61,420	61,420
Amortisation
At 1 November 2022	1,268	1,268
Amortisation charge	3,992	3,992
At 31 October 2023	5,260	5,260
Carrying amount
At 31 October 2023	56,160	56,160
At 31 October 2022	18,232	18,232

12	Tangible assets

	Furniture, fittings and equipment £	Motor vehicles £	Total £
Cost or valuation
At 1 November 2022	1,942,581	131,100	2,073,681
Additions	30,720	-	30,720
Disposals	-	(131,100)	(131,100)
At 31 October 2023	1,973,301	-	1,973,301
Depreciation
At 1 November 2022	1,375,444	32,775	1,408,219
Charge for the year	89,679	-	89,679
Eliminated on disposal	-	(32,775)	(32,775)
At 31 October 2023	1,465,123	-	1,465,123
Carrying amount
At 31 October 2023	508,178	-	508,178
At 31 October 2022	567,137	98,325	665,462

Leeds Galvanising & Powder Coating Limited

Notes to the Financial Statements for the Year Ended 31 October 2023 (continued)

Stocks

	2023 £	2022 £
Finished goods and goods for resale	580,446	743,680

Debtors

	Note	2023 £	2022 £
Trade debtors		2,881,355	2,723,301
Other debtors		2,223,978	1
Prepayments		18,595	66,832
Accrued income		32,182	-
Corporation tax asset	10	6,203	-
		5,162,313	2,790,134

15	Cash and cash equivalents

	2023 £	2022 £
Cash on hand	11,502	5,995
Cash at bank	325,510	603,972
Other cash and cash equivalents	1,302,382	1,479,124
	1,639,394	2,089,091

Creditors

	Note	2023 £	2022 £
Due within one year
Trade creditors		200,729	185,171
Social security and other taxes		376,088	338,086
Other creditors		35,927	66,868
Accruals		176,648	84,603
Corporation tax liability	10	-	191,134
		789,392	865,862
Due after one year
Other non-current financial liabilities		-	14,567

Leeds Galvanising & Powder Coating Limited

Notes to the Financial Statements for the Year Ended 31 October 2023 (continued)

17	Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £300,576 (2022 - £42,516).

18	Share capital

Allotted, called up and fully paid shares

	2023		2022
	No.	£	No.	£
Ordinary shares of £1 each	1	1	1	1

Dividends

	2023	2022
	£	£
Final dividend of £1.00 (2022 - £2.00) per ordinary share	-	-
Interim dividend of £Nil (2022 - £614,424.00) per ordinary share	-	614,424
	-	614,424

The company paid dividends in the year in the amount of £nil (2022: £614,424).

20	Related party transactions

Transactions with directors

2023	At 1 November 2022 £	Advances to director £	At 31 October 2023 £
S P Kelly
Other debtors includes a loan to the director which is unsecured and repayable on demand. Interest is charged by the company in line with the official rate of interest.	-	2,183,977	2,183,977

Leeds Galvanising & Powder Coating Limited

Notes to the Financial Statements for the Year Ended 31 October 2023 (continued)

20	Related party transactions (continued)

Summary of transactions with other related parties

Included within Other debtors is £40,000 (2022 - £nil) due from Kutchakelly Property Limited, a company under common control.

Included within Other creditors is £3,005 (2022 - £3,005) due to Kiutchakelly Enterprises Limited, a company under common control.

21	Parent and ultimate parent undertaking

The company's immediate parent is Leeds Galvanising Holdings Limited, incorporated in England & Wales.