Advanced Engineering Techniques Limited - Limited company accounts 20.1
Advanced Engineering Techniques Limited - Limited company accounts 20.1
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 October 2021 |
for |
Advanced Engineering Techniques Limited |
Advanced Engineering Techniques Limited (Registered number: 02427380) |
Contents of the Financial Statements |
for the Year Ended 31 October 2021 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Independent Auditors' Report | 6 |
Statement of Comprehensive Income | 9 |
Statement of Financial Position | 10 |
Statement of Changes in Equity | 11 |
Statement of Cash Flows | 12 |
Notes to the Statement of Cash Flows | 13 |
Notes to the Financial Statements | 15 |
Advanced Engineering Techniques Limited |
Company Information |
for the Year Ended 31 October 2021 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants & Statutory Auditor |
Marland House |
13 Huddersfield Road |
Barnsley |
South Yorkshire |
S70 2LW |
Advanced Engineering Techniques Limited (Registered number: 02427380) |
Strategic Report |
for the Year Ended 31 October 2021 |
The directors present their strategic report for the year ended 31 October 2021. |
REVIEW OF BUSINESS |
The directors aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year-end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face. |
Turnover increased by £3,346k (35%), and the gross profit percentage increased to 12.5% (2020: 6.2%). Administrative expenses increased by £70k (4.3%) which, taken with the increase in gross profit, resulted in the company recording a profit before tax of £108k (2020: loss before tax of £326k). |
This increase in turnover and resulting profit reflects the increased production levels in the current year following the reduced impact of the global COVID-19 pandemic which hugely impacted the economy and businesses in all sectors, including the manufacturing industry in the previous year. |
The impact of the pandemic, in conjunction with the United Kingdom's departure from the EU on 1 January 2021 and the related trade agreement are constantly monitored by the directors in order for the related risks to be managed swiftly and effectively. In addition, the impact of the recent developments in Ukraine are also being monitored. |
The Company's financial projections indicate that it has sufficient facilities and funds to operate for at least the next 12 months and its bankers continue to be supportive. Accordingly, as the Company continues to recover from the pandemic, the directors have a reasonable expectation that the company has adequate financial resources to continue in operational existence for the foreseeable future and so the financial statements are prepared on a going concern basis. |
Advanced Engineering Techniques Limited (Registered number: 02427380) |
Strategic Report |
for the Year Ended 31 October 2021 |
PRINCIPAL RISKS AND UNCERTAINTIES |
COVID-19 - As described in the development and performance review above, the global COVID-19 pandemic has caused significant disruption globally, and in the UK, including in our own manufacturing industry. Whilst the success of the UK vaccination programme has enabled the removal of most UK societal restrictions, uncertainty is likely to continue for the foreseeable future. |
Price risk - The company has no exposure to equity securities price risk as it holds no listed or other equity investments. |
Credit risk - The company has implemented policies that require appropriate credit checks on potential customers before credit sales are made. |
Liquidity risk - The company actively maintains a mixture of long-term and short term debt and in particular bank overdraft and invoice discounting finance that is designed to ensure that the company has sufficient available funds for its operations. |
Interest rate cashflow risk - The company has interest bearing liabilities by way of bank loans and overdrafts, and therefore is exposed to interest rate cashflow risk. The board of directors regularly review the level and mix of debt to manage interest rate risk. |
Foreign currency exchange risk - Where the company has transactions denominated in foreign currency and so is exposed to exchange rate risk, it manages this risk by keeping under review the need for forward contracts in the appropriate foreign currency as required. |
Key performance indicators - We consider that our key performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover and gross margin. |
ON BEHALF OF THE BOARD: |
Advanced Engineering Techniques Limited (Registered number: 02427380) |
Report of the Directors |
for the Year Ended 31 October 2021 |
The directors present their report with the financial statements of the Company for the year ended 31 October 2021. |
PRINCIPAL ACTIVITY |
The principal activity of the Company in the year under review was that of laser engineers, component producers and fabricators. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 October 2021 was £98,461. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 November 2020 to the date of this report. |
Other changes in directors holding office are as follows: |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the Company's auditors are aware of that information. |
Advanced Engineering Techniques Limited (Registered number: 02427380) |
Report of the Directors |
for the Year Ended 31 October 2021 |
AUDITORS |
The auditors, Harris & Co Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Independent Auditors' Report to the Members of |
Advanced Engineering Techniques Limited |
Opinion |
We have audited the financial statements of Advanced Engineering Techniques Limited (the 'Company') for the year ended 31 October 2021 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Auditors' Report thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors 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 Directors have been prepared in accordance with applicable legal requirements. |
Independent Auditors' Report to the Members of |
Advanced Engineering Techniques Limited |
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 Directors. |
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 four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
- Enquiring of management, including obtaining and reviewing supporting documentation, concerning the company's policies and procedures relating to: |
o Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; |
o Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
o The internal controls established to mitigate risk related to fraud or non-compliance with laws & regulations; |
- Obtaining an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the company. The key laws and regulations we considered in this context included the UK Companies Act, UK Generally Accepted Accounting Practice, tax legislation and the Government's Coronavirus Business Support Schemes. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report. |
Independent Auditors' Report to the Members of |
Advanced Engineering Techniques Limited |
Audit response to risks identified |
Our procedures to respond to risks identified included the following: |
- Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations; |
- Enquiring of management concerning actual and potential litigation and claims; |
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud; and |
- In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing the judgements used in accounting estimates to assess whether these may be indicative of potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
Use of our report |
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants & Statutory Auditor |
Marland House |
13 Huddersfield Road |
Barnsley |
South Yorkshire |
S70 2LW |
Advanced Engineering Techniques Limited (Registered number: 02427380) |
Statement of Comprehensive |
Income |
for the Year Ended 31 October 2021 |
2021 | 2020 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
(64,356 | ) | (1,030,360 | ) |
Other operating income | 4 |
OPERATING PROFIT/(LOSS) | 6 | ( |
) |
Interest payable and similar expenses | 7 |
PROFIT/(LOSS) BEFORE TAXATION | ( |
) |
Tax on profit/(loss) | 8 | ( |
) | ( |
) |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
Advanced Engineering Techniques Limited (Registered number: 02427380) |
Statement of Financial Position |
31 October 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Capital redemption reserve | 22 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Advanced Engineering Techniques Limited (Registered number: 02427380) |
Statement of Changes in Equity |
for the Year Ended 31 October 2021 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 November 2019 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 October 2020 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 October 2021 |
Advanced Engineering Techniques Limited (Registered number: 02427380) |
Statement of Cash Flows |
for the Year Ended 31 October 2021 |
2021 | 2020 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) | ( |
) |
New hire purchase agreements | 130,000 | 59,700 |
Hire purchase repayments in year | (239,722 | ) | (316,026 | ) |
Amount withdrawn by directors | (4,138 | ) | (5,358 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
(2,555,831 |
) |
(2,283,292 |
) |
Cash and cash equivalents at end of year |
2 |
( |
) |
( |
) |
Advanced Engineering Techniques Limited (Registered number: 02427380) |
Notes to the Statement of Cash Flows |
for the Year Ended 31 October 2021 |
1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2021 | 2020 |
£ | £ |
Profit/(loss) before taxation | ( |
) |
Depreciation charges |
Loss/(profit) on disposal of fixed assets | ( |
) |
Finance costs | 88,013 | 97,909 |
777,125 | 241,542 |
Increase in stocks | ( |
) | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 October 2021 |
31/10/21 | 1/11/20 |
£ | £ |
Cash and cash equivalents | 215,958 | 311 |
Bank overdrafts | ( |
) | ( |
) |
(2,846,740 | ) | (2,555,831 | ) |
Year ended 31 October 2020 |
31/10/20 | 1/11/19 |
£ | £ |
Cash and cash equivalents | 311 | 37,257 |
Bank overdrafts | ( |
) | ( |
) |
(2,555,831 | ) | (2,283,292 | ) |
Advanced Engineering Techniques Limited (Registered number: 02427380) |
Notes to the Statement of Cash Flows |
for the Year Ended 31 October 2021 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/11/20 | Cash flow | At 31/10/21 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 311 | 215,647 | 215,958 |
Bank overdrafts | (2,556,142 | ) | (506,556 | ) | (3,062,698 | ) |
(2,555,831 | ) | ( |
) | (2,846,740 | ) |
Debt |
Finance leases | (530,736 | ) | 109,722 | (421,014 | ) |
Debts falling due within 1 year | (20,000 | ) | (259,007 | ) | (279,007 | ) |
Debts falling due after 1 year | (303,119 | ) | 240,389 | (62,730 | ) |
(853,855 | ) | 91,104 | (762,751 | ) |
Total | (3,409,686 | ) | (199,805 | ) | (3,609,491 | ) |
Advanced Engineering Techniques Limited (Registered number: 02427380) |
Notes to the Financial Statements |
for the Year Ended 31 October 2021 |
1. | STATUTORY INFORMATION |
Advanced Engineering Techniques Limited is a |
The presentation and functional currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
From mid-March 2020 the global COVID-19 pandemic has hugely impacted the UK and caused enormous disruption across the whole society, economy and businesses in all sectors, including the manufacturing industry. |
The impact of the pandemic, in conjunction with the United Kingdom's departure from the EU on 1 January 2021 and the related trade agreement are constantly monitored by the directors in order for the related risks to be managed swiftly and effectively. In addition, the impact of the recent developments in Ukraine are also being monitored. |
The Company's financial projections indicate that it has sufficient facilities and funds to operate for at least the next 12 months and its bankers continue to be supportive. Accordingly, as the Company continues to recover from the pandemic, the directors have a reasonable expectation that the company has adequate financial resources to continue in operational existence for the foreseeable future and so the financial statements are prepared on a going concern basis. |
Significant judgements and estimates |
The principal accounting policies and significant judgements and estimates applied in the preparation of these financial statements are set out below. These policies, judgements and estimates have been consistently applied to all years presented unless otherwise stated. |
The significant judgements and estimates applied are: |
- | the useful lives and residual values of tangible fixed assets at the end of their useful lives |
- | the stage of completion and resulting valuation of items in work in progress |
Turnover |
Turnover represents amounts earned on goods sold and services provided during the year, derives from the provision of goods and services falling within the company's ordinary activities and is recognised in the financial statements at the date that the goods are despatched. |
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 or, if held under a finance lease, over the lease term, whichever is shorter. |
Long leasehold | - | Straight line over 25 to 30 years |
Plant and machinery | - | Straight line over 5 to 15 years |
Fixtures and fittings | - | Straight line over 3 to 15 years |
Motor vehicles | - | Straight line over 4 years |
Advanced Engineering Techniques Limited (Registered number: 02427380) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2021 |
3. | ACCOUNTING POLICIES - continued |
Government grants |
Government grants are recognised in accordance with the accrual model of Section 24 of FRS 102. |
Grants became receivable as compensation for expenses already incurred for the purpose of giving immediate financial support to the entity with no future related costs recognised in income in the period in which the grant became receivable. |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport and handling costs bringing stocks to their present location and condition, including an appropriate amount of fixed and variable overheads. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred taxation |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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. |
Advanced Engineering Techniques Limited (Registered number: 02427380) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2021 |
4. | OTHER OPERATING INCOME |
2021 | 2020 |
£ | £ |
Sundry receipts | 15,000 | - |
Coronavirus grants |
Capital grants released |
Exchange gains | 116 | 1,344 |
260,634 | 802,005 |
Coronavirus grants relate to Job Retention Support Scheme Grants received from government during the pandemic. In the opinion of the directors, there are no material unfulfilled conditions or other contingencies relating to this income. |
5. | EMPLOYEES AND DIRECTORS |
2021 | 2020 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2021 | 2020 |
Sales, design and manufacturing staff | 139 | 135 |
Administrative staff and directors | 11 | 11 |
2021 | 2020 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
Information regarding the highest paid director is as follows: |
2021 | 2020 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
Advanced Engineering Techniques Limited (Registered number: 02427380) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2021 |
6. | OPERATING PROFIT/(LOSS) |
The operating profit (2020 - operating loss) is stated after charging/(crediting): |
2021 | 2020 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Loss/(profit) on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Foreign exchange differences | ( |
) | ( |
) |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2021 | 2020 |
£ | £ |
Bank interest |
Hire purchase |
8. | TAXATION |
Analysis of the tax credit |
The tax credit on the profit for the year was as follows: |
2021 | 2020 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) | ( |
) |
Deferred tax | ( |
) |
Tax on profit/(loss) | ( |
) | ( |
) |
Reconciliation of total tax credit included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2021 | 2020 |
£ | £ |
Profit/(loss) before tax | ( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) | ( |
) |
Depreciation in excess of capital allowances |
Adjustments to tax charge in respect of previous periods | ( |
) |
previous years |
Deferred taxation | ( |
) |
Total tax credit | (132,027 | ) | (89,509 | ) |
Advanced Engineering Techniques Limited (Registered number: 02427380) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2021 |
9. | DIVIDENDS |
2021 | 2020 |
£ | £ |
A Ordinary shares of £1 each |
Interim |
B Ordinary shares of £1 each |
Interim |
C Ordinary shares of £1 each |
Interim |
D Ordinary shares of £1 each |
Interim |
10. | INTANGIBLE FIXED ASSETS |
Developme |
costs |
£ |
COST |
At 1 November 2020 |
Additions |
At 31 October 2021 |
NET BOOK VALUE |
At 31 October 2021 |
At 31 October 2020 |
The development costs balance represent assets under construction. On completion the assets will be capitalised and depreciated in line with the policies detailed in note 3 to the accounts. |
11. | TANGIBLE FIXED ASSETS |
Fixtures |
Long | Plant and | and | Motor |
leasehold | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 November 2020 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 October 2021 |
DEPRECIATION |
At 1 November 2020 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 October 2021 |
NET BOOK VALUE |
At 31 October 2021 |
At 31 October 2020 |
Advanced Engineering Techniques Limited (Registered number: 02427380) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2021 |
11. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST |
At 1 November 2020 |
Transfer to ownership | 366,500 |
At 31 October 2021 |
DEPRECIATION |
At 1 November 2020 |
Charge for year |
Transfer to ownership | (168,062 | ) |
At 31 October 2021 |
NET BOOK VALUE |
At 31 October 2021 |
At 31 October 2020 |
12. | STOCKS |
2021 | 2020 |
£ | £ |
Raw materials |
Work-in-progress |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade debtors |
Other debtors |
Directors' current accounts | 29,103 | 24,965 |
Corporation tax |
Prepayments and accrued income |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Bank loans and overdrafts (see note 16) |
Hire purchase contracts (see note 17) |
Trade creditors |
Social security and other taxes |
VAT | 342,322 | 384,768 |
Other creditors |
Directors' current accounts | 2,692 | 2,692 |
Accruals and deferred income |
Advanced Engineering Techniques Limited (Registered number: 02427380) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2021 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued |
The bank overdraft is secured by a fixed charge over the assets of the company including outstanding sales invoices. |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2021 | 2020 |
£ | £ |
Bank loans (see note 16) |
Hire purchase contracts (see note 17) |
The hire purchase creditors are secured on the assets to which they relate. |
16. | LOANS |
An analysis of the maturity of loans is given below: |
2021 | 2020 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2021 | 2020 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Advanced Engineering Techniques Limited (Registered number: 02427380) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2021 |
17. | LEASING AGREEMENTS - continued |
Non-cancellable | operating leases |
2021 | 2020 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
2021 | 2020 |
£ | £ |
Bank overdrafts |
Bank loans |
Hire purchase contracts | 421,014 | 530,736 |
The bank overdrafts and loans are secured by a fixed charge over the assets of the company including outstanding sales invoices. The hire purchase creditors are secured on the assets to which they relate. |
19. | FINANCIAL INSTRUMENTS |
The carrying amounts of the company's financial instruments are: |
Financial assets |
Debt instruments measured at amortised cost £4,026,106 (2020: £2,997,729). |
Financial liabilities |
Measured at amortised cost £6,483,897 (2020: £4,893,488). |
20. | PROVISIONS FOR LIABILITIES |
2021 | 2020 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Deferred |
tax |
£ |
Balance at 1 November 2020 |
Charge to Statement of Comprehensive Income during year |
Balance at 31 October 2021 |
Advanced Engineering Techniques Limited (Registered number: 02427380) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2021 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
A Ordinary | £1 | 13 | 13 |
B Ordinary | £1 | 12 | 12 |
C Ordinary | £1 | 25 | 25 |
D Ordinary | £1 | 25 | 25 |
75 | 75 |
22. | RESERVES |
Reserves consist of the following: |
Retained earnings represents the company's cumulative distributable reserves. |
Capital redemption reserve represents cumulative amounts set aside within reserves as share capital is redeemed or repurchased. |
23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 October 2021 and 31 October 2020: |
2021 | 2020 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
The above loans are all interest free and repayable on demand. |
24. | RELATED PARTY DISCLOSURES |
2021 | 2020 |
£ | £ |
Rent payable |
Administration charge | (15,000 | ) | (30,000 | ) |
Amount due to related party |
Advanced Engineering Techniques Limited (Registered number: 02427380) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2021 |
24. | RELATED PARTY DISCLOSURES - continued |
During the year, a total of key management personnel compensation of £ |
25. | SUBSEQUENT EVENTS |
Following the year end, a Coronavirus Business Interruption Loan entered into in the year ending 31/10/2020 had its repayment period extended from two to six years. As the event occured following the year end, under s32 FRS 102, the conditions that existed at the balance sheet date have been disclosed in the accounts for the year ending 31/10/2021. |
In the accounts for the year ending 31/10/2022 the analysis of the maturity of the loans will be updated to recognise the loan amounts due within one year, one to two years and two to five years accordingly. |