Axium Process Limited - Limited company accounts 18.2

REGISTERED NUMBER: 04432600 (England and Wales)

AXIUM PROCESS LIMITED

REPORT OF THE DIRECTORS AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2019

Page

Company Information

1

Report of the Directors

2

Income Statement

3

Balance Sheet

4

to

5

Notes to the Financial Statements

6

to

10

DIRECTORS:

D W Houldsworth

Mrs M Houldsworth

P C Taylor

D P Davies

G H Vity

SECRETARY:

Mrs M Houldsworth

REGISTERED OFFICE:

Unit 2C Hendy Industrial Estate

Hendy

Swansea

SA4 0XP

REGISTERED NUMBER:

04432600 (England and Wales)

ACCOUNTANTS:

Gerald Thomas

Chartered Accountants

3 New Mill Court

Swansea Enterprise Park

Swansea

SA7 9FG

The directors present their report with the financial statements of the company for the year ended 30 June 2019.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the manufacture of stainless steel

systems, including membrane filtration technologies as well as customised fabrication and components.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 July 2018 to the date of this

report.

D W Houldsworth

Mrs M Houldsworth

P C Taylor

D P Davies

G H Vity

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006

relating to small companies.

ON BEHALF OF THE BOARD:

Mrs M Houldsworth - Secretary

30 September 2019

TURNOVER

4,639,975

4,448,917

Cost of sales

3,216,421

3,114,788

GROSS PROFIT

1,423,554

1,334,129

Administrative expenses

1,314,268

1,305,584

109,286

28,545

Other operating income

26,659

4,800

OPERATING PROFIT

135,945

33,345

Exceptional items

4

-

426,204

135,945

(392,859

)

Interest receivable and similar income

82

114

136,027

(392,745

)

Interest payable and similar expenses

10,732

9,033

PROFIT/(LOSS) BEFORE TAXATION

125,295

(401,778

)

Tax on profit/(loss)

(69,114

)

(1,982

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

194,409

(399,796

)

FIXED ASSETS

Tangible assets

5

1,007,600

988,020

CURRENT ASSETS

Stocks

488,646

454,177

Debtors

6

1,750,984

1,577,905

Cash at bank and in hand

693

42,413

2,240,323

2,074,495

CREDITORS

Amounts falling due within one year

7

900,199

831,881

NET CURRENT ASSETS

1,340,124

1,242,614

TOTAL ASSETS LESS CURRENT LIABILITIES

2,347,724

2,230,634

CREDITORS

Amounts falling due after more than one year

8

(2,244,192

)

(2,351,495

)

PROVISIONS FOR LIABILITIES

(29,983

)

-

NET ASSETS/(LIABILITIES)

73,549

(120,861

)

CAPITAL AND RESERVES

Called up share capital

1,000

1,000

Fair value reserve

10

176,309

178,553

Retained earnings

(103,760

)

(300,414

)

SHAREHOLDERS' FUNDS

73,549

(120,861

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2019 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors on 30 September 2019 and were signed on its behalf by:

D W Houldsworth - Director

1.	STATUTORY INFORMATION

Axium Process 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" including the provisions of Section 1A "Small Entities" 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 amounts of assets and liabilities that are not readily

apparent from other sources. The estimates and associated assumptions are based on historical

experience and other factors which 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 if the revision only effects that

period, or in the period of the revision and future periods if the revision affects both current and future

periods.

The following are the critical judgements that the directors have made in the process of applying the

company's accounting policies and that have the most significant effect on the amounts recognised in

the financial statements.

Exceptional items

Where the company incurs costs or is entitled to income which the directors consider are either

outside the scope of normal operating activities or unusually material to the accounts in terms of size

or incidence, then such amounts are classified as exceptional items and disclosed separately on the

face of the income statement and described further in a separate note to the accounts.

Impairment of assets

Assets are assessed for indicators of impairment at each balance sheet date. If there is objective

evidence of impairment, an impairment loss is recognised in the income statement.

Provisions and contingencies

Provisions are recognised when the company has a present obligation as a result of a past event and a

reliable estimate can be made of a probable adverse outcome. Otherwise, material contingent liabilities

are disclosed unless a transfer of economic benefits is considered remote. Contingent assets are only

disclosed if an inflow of economic benefits is probable.

Turnover

Turnover is the amount derived from ordinary activities, stated after trade discounts, other sales taxes

and VAT. The amount recorded as turnover in respect of long term contracts is ascertained by

reference to the value of the work carried out to date. Attributable profit is recognised as the difference

between recorded turnover and related costs. Other turnover is recognised on the dispatch of goods to

the customer.

Tangible fixed assets

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

Plant and machinery etc

-

33% on cost, 25% on cost, 10% on cost and 5% on cost

Stocks

Stocks and work-in-progress are stated at the lower of cost and net realisable value. Cost includes

materials, direct labour and production overheads appropriate to the relevant stage of production. Net

realisable value is based on estimated selling price less all further costs to completion and any relevant

selling and distribution costs.

Financial instruments

Basic financial assets, which include trade and other debtors and cash and bank balances, are initially

measured at transaction price unless the arrangement constitutes a financing transaction, where the

transaction is measured at the present value of the future payments discounted at a market rate of

interest.

Basic financial liabilities, including trade and other creditors and bank loans, are initially recognised at

transaction price unless the arrangement constitutes a financing transaction, where the debt

instrument is measured at the present value of the future payments discounted at a market rate of

interest.

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

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at

the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of

exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at

the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the profit and loss on a straight line basis over the

period of the lease.

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet

and depreciated over their estimated useful lives.

The interest element of these obligations is charged to the profit and loss account over the relevant

period. The capital element of the future payments is treated as a liability.

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 are credited to deferred revenue when entitlement to the grant has been established. Grants

towards capital expenditure are then released to the income statement over the useful life of the

assets. Grants towards revenue expenditure are released to the income statement as the related

expenditure is incurred.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Going concern

The company has reported a profit for the year, and has both net current assets and net assets.

The company is supported via loans from its shareholder directors and these directors have confirmed

that they are willing to continue to support the company for the foreseeable future.

As such, the directors have prepared the financial statements using the going concern basis of

accounting.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 67 (2018 - 64 ) .

4.	EXCEPTIONAL ITEMS

2019

2018

£

£

Exceptional items

-

(426,204

)

During the prior year, the company undertook a contract to deliver a new type of installation. Certain

costs were incurred which related to the development of the installation were not recoverable from the

customer, but will benefit the company's product offering in the future. In line with the stated

accounting policy, these costs have been shown as exceptional in the current year.

5.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 July 2018

2,278,156

Additions

120,191

At 30 June 2019

2,398,347

DEPRECIATION

At 1 July 2018

1,290,136

Charge for year

100,611

At 30 June 2019

1,390,747

NET BOOK VALUE

At 30 June 2019

1,007,600

At 30 June 2018

988,020

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

636,109

322,636

Amounts recoverable on

long-term contracts

977,857

1,226,557

Other debtors

137,018

28,712

1,750,984

1,577,905

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Bank loans and overdrafts

4,936

-

Hire purchase contracts

58,727

79,546

Trade creditors

650,214

563,453

Taxation and social security

76,211

75,617

Other creditors

110,111

113,265

900,199

831,881

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2019

2018

£

£

Hire purchase contracts

99,600

144,155

Amounts owed to group undertakings

24,689

22,447

Other creditors

2,119,903

2,184,893

2,244,192

2,351,495

9.	SECURED DEBTS

The following secured debts are included within creditors:

2019

2018

£

£

Hire purchase contracts

158,327

223,701

Hire purchase contracts are secured on the assets to which they relate.

10.

RESERVES

Fair

value

reserve

£

At 1 July 2018

178,553

Reserve transfer

(2,244

)

At 30 June 2019

176,309

11.	OTHER FINANCIAL COMMITMENTS

Operating lease payments committed to be paid at the balance sheet date amounted to £137,019

(2018: £228,365).

12.	RELATED PARTY DISCLOSURES

Included in creditors are the following amounts due to the directors. The movements in the year

represent advances made to the company.

2019

2018

£

£

Creditors falling due within one year

15,810

9,725

Creditors falling due after more than one year

2,000,000

2,000,000

Total amount due

2,019,725

2,009,725

These amounts are unsecured, interest free and there are no formal repayment terms.

At the balance sheet date the parent company, Moda Systems Limited, was owed £24,692 (2018 -

£22,447). This loan has been stated at fair value and effective interest charged to the income

statement annually at a rate of 10%.