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Registered number: 01331066
AE INDUSTRIAL & AIR EQUIPMENT LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
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AE INDUSTRIAL & AIR EQUIPMENT LIMITED
REGISTERED NUMBER: 01331066
BALANCE SHEET
AS AT 30 SEPTEMBER 2021
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 8 June 2022.
The notes on pages 2 to 9 form part of these financial statements.
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AE INDUSTRIAL & AIR EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
AE Industrial & Air Equipment Limited is a private company limited by shares and incorporated in England. Its registered office is 191 Chatsworth Road, Chesterfield, Derbyshire, S40 2BD and its registered number is 01331066.
The principal activity of the company is that of distributors of engineering products.
The company's functional and presentational currency is pounds sterling.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared on a going concern basis and under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).
The following principal accounting policies have been applied:
Turnover, which excludes value-added tax and trade discounts, represents the invoiced value of goods and services supplied.
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:
Sale of goods
Turnover from the sale of goods is recognised when the company has transferred the significant risks and rewards of ownership to the buyer.
Rendering of services
Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract.
Cost of sales consists of all costs to the point of sale, including warehouse and transportation costs, and all costs of operating distribution outlets, stated net of discounts on purchases.
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Operating leases: the company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.
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AE INDUSTRIAL & AIR EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
2.Accounting policies (continued)
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of income and retained earnings in the same period as the related expenditure.
The company participates in the group's defined contribution plan for its employees. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from those of the company in independently administered funds.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
- the recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
- any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
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AE INDUSTRIAL & AIR EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is provided on the following basis:
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various rates between 10% and 20% on the reducing balance basis
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20% on the straight line basis
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Depreciation is charged so as to allocate their cost, less residual values, over their useful economic lives. The assets' residual values, useful lives, and depreciation methods are reviewed, and adjusted prospectively if appropriate or if there is an indication of a significant change since the last reporting date.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted averagebasis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is 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.
The company has only basic financial instruments that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans to or from related parties and investments in non-puttable ordinary shares.
Financial assets, being trade and other debtors and amounts due from group companies, are originally recognised at the transaction price and are subsequently carried at amortised cost, using the effective interest method, subject to any impairment losses. Financial liabilities, being trade and other creditors, are originally recognised at the transaction price and are subsequently carried at the amounts expected to be needed to settle the liability.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of income and retained earnings.
Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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AE INDUSTRIAL & AIR EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
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Judgements in applying accounting policies and key sources of estimation uncertainty
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Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical judgements in applying the entity's accounting policies
No significant judgements have had to be made by management in preparing these financial statements.
Critical accounting estimates and assumptions
Preparation of the financial statements requires management to make judgements and estimates. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
Stock provisioning
The company holds a range of stock, some of which is subject to changing customer demands, sometimes dictated by regulatory changes. As a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around its anticipated future saleability. See note 8 for the net carrying amount of stock, stated after the associated provision.
Impairment of debtors
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors, and historical experience. See note 9 for the net carrying amount of debtors, stated after the associated impairment provision.
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The average monthly number of employees, including directors, during the year was 39 (2020 - 44).
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AE INDUSTRIAL & AIR EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
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Current tax on profits for the year
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Factors affecting tax charge for the year
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The tax assessed for the year is lower than (2020 - higher than) the standard rate of corporation tax in the UK of19% (2020 -19%). The differences are explained below:
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Profit multiplied by standard rate of corporation tax in the UK of 19% (2020 - 19%)
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Expenses not deductible for tax purposes
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Capital allowances for year in excess of depreciation
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Total tax charge for the year
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There is no material unprovided deferred tax.
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AE INDUSTRIAL & AIR EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
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Charge for the year on owned assets
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Amounts owed by group undertakings
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AE INDUSTRIAL & AIR EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
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Creditors: Amounts falling due within one year
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Accruals and deferred income
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Allotted, called up and fully paid
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197,000 (2020 - 197,000) Ordinary shares of £1.00 each
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Commitments under operating leases
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At 30 September 2021 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Total operating lease costs for the year were £47,600 (2020 - £47,600).
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Related party transactions
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The company has taken advantage of the exemption granted in FRS 102 from the requirement to disclose transactions with other members of the Eyre & Elliston group as the company is wholly owned within the group.
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The company is a wholly owned subsidiary of Eyre & Elliston Holdings Limited, a company incorporated in England, which is the ultimate parent undertaking and whose registered office is 191 Chatsworth Road, Chesterfield, Derbyshire, S40 2BD. The group accounts of Eyre & Elliston Holdings Limited are available from the Registrar of Companies.
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AE INDUSTRIAL & AIR EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
The auditors' report on the financial statements for the year ended 30 September 2021 was unqualified.
The audit report was signed on 8 June 2022 by Andrew Irvine (Senior statutory auditor) on behalf of Shorts.
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