Ikarus Engineering Limited - Limited company accounts 20.1

REGISTERED NUMBER: 03300612 (England and Wales)

Strategic Report, Report of the Director and

Financial Statements for the Year Ended 31 March 2021

for

Ikarus Engineering Limited

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11

DIRECTOR:

L Csiki

SECRETARY:

L M Csiki

REGISTERED OFFICE:

Brigham House

93 High Street

Biggleswade

Bedfordshire

SG18 0LD

REGISTERED NUMBER:

03300612 (England and Wales)

SENIOR STATUTORY AUDITOR:

Martin Williams ACA

AUDITORS:

George Hay Partnership LLP

Chartered Accountants

and Statutory Auditor

Unit 1B

Focus 4

Fourth Avenue

Letchworth

Hertfordshire

SG6 2TU

The director presents his strategic report for the year ended 31 March 2021.

REVIEW OF BUSINESS

The results for the year and financial position of the Company are as shown in the annexed financial statements.

Turnover has decreased this year by 30% which is a higher downturn than original predicted but changes to current supply contracts, and the added complications caused by Brexit have meant it has been a challenging twelve month. The uncertainty and issues caused by Brexit continue to cause us issues in the current year, but we continue to work closely with our current customers, as well as continuing to work towards creating new connections within the market allowing us to supply more products to new and existing customers.

Our gross margin in percentage terms has decreased in the period from 28.1% to 21.71% which is as a result of changes in the make up of the ongoing projects, and also exchange rates fluctuations which have negatively affected us this year. Movement on the currency exchange rates can cause our profitability to fluctuate, but we monitor the situation closely and are positive that we can maintain a reasonable margin moving forward, even with the uncertainties surrounding the current markets. In future periods we expect that our gross profit margin will be negatively affected by ongoing price pressures within the industry and the fallout from Brexit affecting our trading within Europe moving forward but we continue to work on sustaining our margin by offsetting any selling price reductions with cheaper alternatives suppliers.

Return on capital employed (calculated as operating profit divided by the sum of capital and reserves) decreased to 59.3% (84.4% : 2020), this reflects the trading company only and is reflective of the conditions noted above.

In all cases the KPIs above have been calculated on a consistent basis and are based directly on the amounts shown in the financial statements.

At the end of the year even with the challenges affecting the market the Company was in a positive position with the Company's position in the market place remained strong.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties facing the company are:

- the effects of long term currency exchange rate fluctuations

- the ongoing effects on the Company of Brexit

- the continuing uncertainty and low growth projections surrounding the UK economy

- the continuing global recovery from COVID-19

FUTURE DEVELOPMENTS

We continue to work closely with our customers to develop new and existing products lines. The development stage of these products takes considerable time and resources and we hope in the future we will see the rewards of this investment.

We continue to look to the future, and securing contracts that preserve the prospects of Ikarus Engineering Ltd and its key partners.

ON BEHALF OF THE BOARD:

L Csiki - Director

31 March 2022

The director presents his report with the financial statements of the company for the year ended 31 March 2021.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the trading and distribution of engineering products.

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2021 will be £ 2,600,000 .

DIRECTOR

L Csiki held office during the whole of the period from 1 April 2020 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

L Csiki - Director

31 March 2022

Opinion

We have audited the financial statements of Ikarus Engineering Limited (the 'company') for the year ended 31 March 2021 which comprise the 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 March 2021 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 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 financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

We obtained an understanding of the legal and regulatory framework applicable to the Company, and the industry in which it operates by making enquiries of management. We also enquired as to whether there were any instances of non compliance with laws and regulations or whether there were any instances of fraud detected or suspected. The key laws and regulations considered include the UK Companies Act and UK Tax Legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty. These included compliance with Health and Safety legislation.

We obtained an understanding of the Company's operations, including the nature of the company, its control environment, business performance and its key performance indicators.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud and suspected fraud identified during the audit.However it is the primary responsibility of management and those charged with governance to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

We considered the extent to which non-compliance would have a material impact on the financial statements. We also evaluated the managements incentives and opportunities for fraudulent manipulation of the financial statements, including management override of controls, and determined that the principal risks were related to:

- Management bias in accounting estimates;

- Revenue recognition; and

- Management override of controls

We assessed the susceptibility of the Company's financial statements to material misstatement. Audit procedures performed by the engagement team include:

- Enquiries of management about their own identification and assessment of risk of irregularities

- Evaluation of the processes and controls established to address the risk of irregularities and fraud

- Testing manual journals, specifically those relating to large or unusual entries or entries relating to management estimates

- Testing the assumptions and judgements made by management in its significant accounting estimates, including reviewing historical data to assess the appropriateness of previous assessments

- Testing of controls related to completeness of sales, substantive testing of revenue and analytical

procedures.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Martin Williams ACA (Senior Statutory Auditor)

for and on behalf of George Hay Partnership LLP

Chartered Accountants

and Statutory Auditor

Unit 1B

Focus 4

Fourth Avenue

Letchworth

Hertfordshire

SG6 2TU

31 March 2022

TURNOVER

2

9,590,488

14,478,585

Cost of sales

7,508,280

10,338,639

GROSS PROFIT

2,082,208

4,139,946

Administrative expenses

524,220

601,283

OPERATING PROFIT

4

1,557,988

3,538,663

Interest receivable and similar income

10,858

3,298

1,568,846

3,541,961

Interest payable and similar expenses

5

284,372

339,984

PROFIT BEFORE TAXATION

1,284,474

3,201,977

Tax on profit

6

247,089

611,472

PROFIT FOR THE FINANCIAL YEAR

1,037,385

2,590,505

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,037,385

2,590,505

FIXED ASSETS

Tangible assets

8

539,579

555,378

CURRENT ASSETS

Stocks

9

2,395,836

3,814,468

Debtors

10

4,596,338

2,565,332

Cash at bank

1,657,455

3,884,817

8,649,629

10,264,617

CREDITORS

Amounts falling due within one year

11

2,497,370

2,930,339

NET CURRENT ASSETS

6,152,259

7,334,278

TOTAL ASSETS LESS CURRENT LIABILITIES

6,691,838

7,889,656

CREDITORS

Amounts falling due after more than one year

12

4,063,888

3,699,091

NET ASSETS

2,627,950

4,190,565

CAPITAL AND RESERVES

Called up share capital

13

1,000

1,000

Retained earnings

14

2,626,950

4,189,565

SHAREHOLDERS' FUNDS

2,627,950

4,190,565

The financial statements were approved by the director and authorised for issue on 31 March 2022 and were signed by:

L Csiki - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2019

1,000

4,099,060

4,100,060

Changes in equity

Dividends

-

(2,500,000

)

(2,500,000

)

Total comprehensive income

-

2,590,505

2,590,505

Balance at 31 March 2020

1,000

4,189,565

4,190,565

Changes in equity

Dividends

-

(2,600,000

)

(2,600,000

)

Total comprehensive income

-

1,037,385

1,037,385

Balance at 31 March 2021

1,000

2,626,950

2,627,950

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared in accordance with applicable accounting standards including "Financial Reporting Standard 102" The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the company.

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

Financial Reporting Standard 102 - reduced disclosure exemptions

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

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirement of paragraph 33.7.

Significant judgements and estimates

Stock Valuation and Obsolescence

The stock valuation is based on a historical cost basis and due to the changeable nature of the raw materials markets these are sometimes out dated. The standard approach in more recent years has been to revalue higher value stock lines to more recent purchase prices, but as this is not applied to all lines there is some degree of estimation of actual stock valuation each year

The company makes an estimate in relation to slow moving and obsolete stock, analysing between fast and slow moving lines in relation to ongoing contracts. Those that are slow moving are provided as obsolete.

COVID-19

During the year the pandemic outbreak of Covid-19 has continued to have a significant impact on both people and industry across the world. The director continues to carefully monitor the situation and follow the applicable guidance issued by the UK Government. Due to the nature of the outbreak and the ongoing affect it is having around the world it is currently very difficult to predict the overall impact this situation will have on the Company going forward. The Director has exercised judgement in evaluating the impact of Covid-19 on these financial statements and has reviewed the assets for impairment as deemed necessary.

Brexit

During the year the affects of the UK exiting the European Union had a significant impact on the Company's ability to move goods around Europe without significant delays or additional costs. As a result of these changes there have been significant changes to the ongoing contracts the Company holds, and as a result the Director has exercised judgement when evaluating the impact on these financial statements, especially when reviewing assets of impairment, like stock valuations.

Turnover

Turnover is the amount derived from ordinary activities, and is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances, and is stated net of VAT.

Revenue from the sale of goods is recognised when all the following conditions are satisfied:

- the Company has transferred to the buyer the significant risks and rewards of ownership of the goods;

- the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

- the amount of revenue can be measured reliably;

- it is probable that the economic benefits associated with the transaction will flow to the Company; and

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Specifically, revenue from the sale of goods is recognised when goods are delivered and legal title is

passed.

Tangible fixed assets

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

Freehold property

-

2% on cost

Plant and machinery

-

25% on reducing balance

At each balance sheet date, the Company reviews the carrying amounts of its property, plant and equipment to determine whether there is any indication that any items of property, plant and equipment have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Costs, which comprise direct production costs and an appropriate allocation of production overheads, are based on the method most appropriate to the type of inventory class, but usually on a first-in-first-out basis. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.

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 that have been enacted or substantively enacted by the balance sheet date.

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

Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate.

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.

Financial instruments

Debtors

Short term debtors are measured at transaction prices less impairment losses for bad and doubtful debts.

Creditors

Short term trade creditors are measured at transaction price. Other financial liabilities, including loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case these are stated at cost.

Group Loan

The loan with the company's parent undertaking is being repaid over a 5 year period with an effective interest rate of 7% pa. No fair value adjustments have been made in respect of this loan as the directors have assessed the rate to be on a commercial basis.

2.

TURNOVER

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

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

2021

2020

£

£

Sale of goods

9,590,488

14,478,585

9,590,488

14,478,585

An analysis of turnover by geographical market is given below:

2021

2020

£

£

Europe

7,562,781

11,981,825

United States of America

85,769

73,824

Asia

1,941,938

2,422,936

9,590,488

14,478,585

3.	EMPLOYEES AND DIRECTORS

2021

2020

£

£

Wages and salaries

314,467

293,827

Social security costs

33,332

31,495

Other pension costs

23,136

21,337

370,935

346,659

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

2021

2020

Management & Administration

5

5

2021

2020

£

£

Director's remuneration

8,788

8,628

4.	OPERATING PROFIT

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

2021

2020

£

£

Depreciation - owned assets

15,799

16,298

Auditors Remuneration

14,950

14,450

Auditors' remuneration for non audit work

12,250

20,550

Net (gains) / losses on foreign exchange

318,913

(301,325

)

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2021

2020

£

£

Loan

284,372

339,984

6.

TAXATION

Analysis of the tax charge

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

2021

2020

£

£

Current tax:

UK corporation tax

247,089

611,472

Tax on profit

247,089

611,472

Reconciliation of total tax charge included in profit and loss

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

2021

2020

£

£

Profit before tax

1,284,474

3,201,977

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2020 - 19%)

244,050

608,376

Effects of:

Expenses not deductible for tax purposes

38

-

Depreciation in excess of capital allowances

3,001

3,096

Total tax charge

247,089

611,472

During the year the main rate of corporation tax was unchanged at 19%. The Chancellor of the Exchequer has announced in the 2021 Budget the intention to increase the main rate of Corporation Tax to 25% from 1 April 2023.

7.

DIVIDENDS

2021

2020

£

£

Interim

2,600,000

2,500,000

8.	TANGIBLE FIXED ASSETS

Freehold

Plant and

property

machinery

Totals

£

£

£

COST

At 1 April 2020

and 31 March 2021

715,030

51,340

766,370

DEPRECIATION

At 1 April 2020

165,641

45,351

210,992

Charge for year

14,301

1,498

15,799

At 31 March 2021

179,942

46,849

226,791

NET BOOK VALUE

At 31 March 2021

535,088

4,491

539,579

At 31 March 2020

549,389

5,989

555,378

9.

STOCKS

2021

2020

£

£

Stocks

2,395,836

3,814,468

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

1,214,702

2,171,611

Other debtors

2,166,093

78,002

Sundry Debtors and Prepayments

878,484

315,719

Tax

337,059

-

4,596,338

2,565,332

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade creditors

285,097

148,435

Amounts owed to group undertakings

1,320,000

1,320,000

Tax

-

292,794

Social security and other taxes

11,604

21,978

VAT

166,579

289,008

Other creditors

75,047

43,344

Accruals and deferred income

639,043

814,780

2,497,370

2,930,339

12.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Amounts owed to group undertakings

4,063,888

3,699,091

The Company was advanced a loan from its Parent, Ikarus Engineering (Holdings) Ltd, totalling £6,600,000 during the year ended 31 March 2016. The initial advance is repayable over 5 years, and interest is accruing at a rate of 7% p.a. Any further advances made by the Parent are under the same terms. At the balance sheet date a total of £5,538,888 remained outstanding.

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2021

2020

value:

£

£

1,000

Ordinary

1

1,000

1,000

14.

RESERVES

Retained

earnings

£

At 1 April 2020

4,189,565

Profit for the year

1,037,385

Dividends

(2,600,000

)

At 31 March 2021

2,626,950

Called-up share capital - represents the nominal value of shares that have been issued.

Retained earnings - includes all current and prior period retained profits and losses.

15.	PENSION COMMITMENTS

The company operates a defined contribution pension plan for its employees. The amount recognised as an expense in the period was £23,136 (2020 - £21,337)

16.	ULTIMATE PARENT COMPANY

Ikarus Engineering (Holdings) Ltd is regarded by the director as being the company's ultimate parent company.

17.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', as a wholly owned subsidiary not to disclose related party transactions with its parent company. The parent company Ikarus Engineering (Holdings) Limited prepares publicly available consolidated financial statements.

Entities over which the entity has control, joint control or significant influence

2021

2020

£

£

Sales

140,801

-

Amount due to related party

2,294,921

-

18.	ULTIMATE CONTROLLING PARTY

The company is under the control of its director, Mr L Csiki who owns 100% of the issued share capital of the ultimate parent company, Ikarus Engineering (Holdings) Ltd.

The company's results have been included in the consolidated financial statements of Ikarus Engineering (Holdings) Ltd, copies of which can be obtained from the registered office at:- 29E Warwick Square, Pimlico, London, SW1V 2AD.

19.	GENERAL INFORMATION

Ikarus Engineering Limited, a company limited by shares, is a limited company incorporated in England and Wales and has its principal place of business at 29E Warwick Square, Pimlico, London, SW1V 2AD.

The principal activity of the Company is detailed in the Report of the Director Report on page 3 of the Financial Statements.