ABA Market Research Limited - Limited company accounts 22.3

REGISTERED NUMBER: 04404540 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 March 2022

for

ABA Market Research Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Independent Auditors' Report

5

Income Statement

9

Statement Of Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

Ms A Bainbridge

Mr D Bainbridge

Mr P Norris

REGISTERED OFFICE:

First Floor Hart House

6 London Road

St Albans

Hertfordshire

AL1 1NG

REGISTERED NUMBER:

04404540 (England and Wales)

AUDITORS:

WMT

Statutory Auditor, Chartered Accountants

Verulam Point

Station Way

St Albans

Hertfordshire

AL1 5HE

The directors present their strategic report for the year ended 31 March 2022.

REVIEW OF BUSINESS AND KEY PERFORMANCE INDICATORS

The directors and management aim to present a balanced and comprehensive review of the development and performance of the 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.

As a market research company, the company continues to provide market research information and insightful reports to its clients. The company focuses on the retail sector and has many leading retailers as its clients.

We consider the key performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover, profit margin and cash flow.

The company's turnover has increased by 15.7% to £7,214,248 from £6,235,044 in 2021. This increase was mainly a result of higher level contracts with existing customers.

Overall gross profit has increased to £2,905,080 (40%) from £1,744,096 (28%) with the margins increasing. Operating profit/(loss) has increased to £1,235,821 (17.1%) from £606,333) (9.7%). After taxation, £1,190,867 has been added to reserves.

Total cash flow for 2022 was an increase of £533,934. This was due to an operating cash flow of £888,666. The company maintains high cash balances, £2,921,673 at the year-end so is unaffected by occasional changes in the pattern of receivables. Cash flow management remains a priority and the company aims to maintain a strong positive cash balance. Cash flow management involves prompt invoicing of our clients and agreeing and adhering to fair terms with all our suppliers.

As for many businesses of our size, the business environment in which we operate continues to be challenging. We continue to work hard for our clients to ensure that the company continues to maintain and grow its revenue.

With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen events outside of our control.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors and management continue to pursue a relevant and current risk management policy wherever possible. They also maintain a strategy of strong cash flow and working capital management; which is reflected in the company's strong positive net cash position. The principal risks of the business are loss of key accounts, or decreased market research by some of the large retailers. The market research industry is fast moving and demand for product mix can change rapidly. Accordingly the business has a flexible, adaptable approach.

ON BEHALF OF THE BOARD:

Ms A Bainbridge - Director

23 December 2022

The directors present their report with the financial statements of the company for the year ended 31 March 2022.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the provision of market research services, specialising in the retail sector.

DIVIDENDS

The directors have declared dividends amounting to £274,563 (2021 - £207,423) and they do not recommend further dividend payments this year.

RESEARCH AND DEVELOPMENT

The directors and management have invested significant amounts in research & development related activities to develop and improve data processing methods. This investment will enhance and protect the Company's branded service proposition in order to increase sales and profitability. Total R & D expenditure in the year has been calculated as £535,557 (2021 - £580,730). The directors and management will continue to invest in research and development.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2021 to the date of this report.

Ms A Bainbridge

Mr D Bainbridge

Mr P Norris

FUTURE DEVELOPMENTS

The prime business objective is to deliver sustainable growth in shareholder value. This requires growth in the long term combined with strong cash generation. The strategy is to drive high quality performance in what the company does for existing and prospective customers and to further promote the organisation and its services.

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.

AUDITORS

The auditors, WMT, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Ms A Bainbridge - Director

23 December 2022

Opinion

We have audited the financial statements of ABA Market Research Limited (the 'company') for the year ended 31 March 2022 which comprise the Income Statement, Statement Of Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 2022 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.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

- the parent company 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.

Matter on which we are required to report under the Companies Act 2006

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 directors' report.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:

Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.

Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include health and safety legislation, employment law, information legislation including data protection.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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.

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.

Graham Wintle (Senior Statutory Auditor)

for and on behalf of WMT

Statutory Auditor, Chartered Accountants

Verulam Point

Station Way

St Albans

Hertfordshire

AL1 5HE

23 December 2022

TURNOVER

7,214,248

6,235,044

Cost of sales

4,309,168

4,490,948

GROSS PROFIT

2,905,080

1,744,096

Administrative expenses

1,669,543

1,625,174

1,235,537

118,922

Other operating income

3

-

486,623

OPERATING PROFIT

6

1,235,537

605,545

Interest receivable and similar income

284

788

PROFIT BEFORE TAXATION

1,235,821

606,333

Tax on profit

8

44,954

(16,483

)

PROFIT FOR THE FINANCIAL YEAR

1,190,867

622,816

PROFIT FOR THE YEAR

1,190,867

622,816

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,190,867

622,816

FIXED ASSETS

Tangible assets

11

187,151

160,754

CURRENT ASSETS

Stocks

12

20,811

14,221

Debtors

13

2,895,649

2,418,196

Cash at bank and in hand

2,921,673

2,387,739

5,838,133

4,820,156

CREDITORS

Amounts falling due within one year

14

1,741,015

1,621,670

NET CURRENT ASSETS

4,097,118

3,198,486

TOTAL ASSETS LESS CURRENT LIABILITIES

4,284,269

3,359,240

PROVISIONS FOR LIABILITIES

15

18,662

9,937

NET ASSETS

4,265,607

3,349,303

CAPITAL AND RESERVES

Called up share capital

16

10,089

10,089

Retained earnings

17

4,255,518

3,339,214

SHAREHOLDERS' FUNDS

4,265,607

3,349,303

The financial statements were approved by the Board of Directors and authorised for issue on 23 December 2022 and were signed on its behalf by:

Ms A Bainbridge - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2020

10,089

2,923,821

2,933,910

Changes in equity

Dividends

-

(207,423

)

(207,423

)

Total comprehensive income

-

622,816

622,816

Balance at 31 March 2021

10,089

3,339,214

3,349,303

Changes in equity

Dividends

-

(274,563

)

(274,563

)

Total comprehensive income

-

1,190,867

1,190,867

Balance at 31 March 2022

10,089

4,255,518

4,265,607

Cash flows from operating activities

Cash generated from operations

1

745,525

1,501,363

Tax paid

143,141

-

Net cash from operating activities

888,666

1,501,363

Cash flows from investing activities

Purchase of tangible fixed assets

(80,453

)

(3,604

)

Sale of tangible fixed assets

-

1,000

Interest received

284

788

Net cash from investing activities

(80,169

)

(1,816

)

Cash flows from financing activities

Equity dividends paid

(274,563

)

(207,423

)

Net cash from financing activities

(274,563

)

(207,423

)

Increase in cash and cash equivalents

533,934

1,292,124

Cash and cash equivalents at beginning of year

2

2,387,739

1,095,615

Cash and cash equivalents at end of year

2

2,921,673

2,387,739

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.3.22

31.3.21

£

£

Profit before taxation

1,235,821

606,333

Depreciation charges

54,057

112,972

Loss on disposal of fixed assets

-

190

Finance income

(284

)

(788

)

1,289,594

718,707

(Increase)/decrease in stocks

(6,590

)

6,013

(Increase)/decrease in trade and other debtors

(635,221

)

688,256

Increase in trade and other creditors

97,742

88,387

Cash generated from operations

745,525

1,501,363

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2022

31.3.22

1.4.21

£

£

Cash and cash equivalents

2,921,673

2,387,739

Year ended 31 March 2021

31.3.21

1.4.20

£

£

Cash and cash equivalents

2,387,739

1,095,615

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.21

Cash flow

At 31.3.22

£

£

£

Net cash

Cash at bank and in hand

2,387,739

533,934

2,921,673

2,387,739

533,934

2,921,673

Total

2,387,739

533,934

2,921,673

1.	STATUTORY INFORMATION

ABA Market Research 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 address of the parent company ABAMR2 Ltd (Company no 10101605) is 2 Adelaide Street, St. Albans, Hertfordshire, AL3 5BH

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'' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover represents net invoiced value of services provided, excluding value added tax, recognized in respect of services supplied during the year. Turnover is recognized to the extent that it is probable that the economic benefits will flow to the company and turnover can be reliably measured.

Tangible fixed assets

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

Improvements to property

-

straight line over the lease term

Plant and machinery

-

25% - 33% straight line rates on cost

Fixtures and fittings

-

25% on cost

Stocks

Work in progress relates to the preliminary expenses incurred prior to commencement of project field work that are deferred and will be recovered.

Taxation

Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that that have been enacted or substantively enacted by the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated.

Deferred tax assets are only recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed.

Deferred tax is recognised when income or expenses from a subsidiary or associate have been recognised, and will be assessed for tax in a future period, except where:

- the group is able to control the reversal of the timing difference; and

- it is probable that the timing difference will not reverse in the foreseeable future.

A deferred tax liability or asset is recognised for the additional tax that will be paid or avoided in respect of assets and liabilities that are recognised in a business combination. The amount attributed to goodwill is adjusted by the amount of deferred tax recognised.

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

With the exception of changes arising on the initial recognition of a business combination, the tax expense (income) is presented either in profit or loss, other comprehensive income or equity depending on the transaction that resulted in the tax expense (income).

Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. Deferred tax assets and deferred tax liabilities are offset only if:

- the group has a legally enforceable right to set off current tax assets against current tax liabilities, and

- the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously.

Research and development

Research and development expenditure is written off to the profit and loss account in the year in which it is incurred. Research and development tax credits are only recognised when agreed and receivable by the company.

Hire purchase and leasing commitments

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 makes contributions to pension schemes for directors. Contributions payable to the director's pension scheme are charged to the profit and loss account in the period to which they relate.

Financial instruments

De-recognised assets/liabilities

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Investments in non-convertible preference shares and in non-puttable ordinary and preference shares are measured:

at fair value with changes recognised in the Statement of comprehensive income if the shares are publicly traded or their fair value can otherwise be measured reliably;

at cost less impairment for all other investments.

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 comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of financial position 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.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.

Debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in other operating expenses.

Significant judgements and estimates

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include revenue recognition and deferred tax.

3.	OTHER OPERATING INCOME

The amount of £486,623 in 2021 included in sundry receipts relates to the payments received from the Coronavirus Job Retention Scheme for employees who were furloughed in the year.

.

4.	EMPLOYEES AND DIRECTORS

31.3.22

31.3.21

£

£

Wages and salaries

2,330,467

2,591,374

Social security costs

264,635

272,082

Pension costs

58,944

75,669

Directors pension costs

450

450

2,654,496

2,939,575

The average number of employees during the year was 58 (2021 - 75).

In addition to the above, during the year, the company had 34 staff on zero hour contracts (2021 - 48)

5.	DIRECTORS' EMOLUMENTS

31.3.22

31.3.21

£

£

Directors' remuneration

15,000

15,000

Directors' pension contributions to money purchase schemes

450

450

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

The total of these emoluments were paid to one director and this director was the highest paid.

6.	OPERATING PROFIT

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

31.3.22

31.3.21

£

£

Other operating leases

141,904

133,652

Depreciation - owned assets

54,056

112,971

Loss on disposal of fixed assets

-

190

Foreign exchange differences

(364

)

-

Auditors' remuneration (Note 7)

10,000

10,033

7.	AUDITORS' REMUNERATION

31.3.22

31.3.21

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

10,000

10,033

Total audit fees

10,000

11,500

8.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

31.3.22

31.3.21

£

£

Current tax:

UK corporation tax

36,229

-

Deferred tax

8,725

(16,483

)

Tax on profit

44,954

(16,483

)

UK corporation tax has been charged at 19% (2021 - 19%).

Reconciliation of total tax charge/(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:

31.3.22

31.3.21

£

£

Profit before tax

1,235,821

606,333

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2021 - 19%)

234,806

115,203

Effects of:

Expenses not deductible for tax purposes

8,771

11,754

Capital allowances in excess of depreciation

(13,310

)

-

previous periods

Losses

(53,030

)

-

Additional deduction for R&D expenditure

(132,283

)

(143,440

)

Total tax charge/(credit)

44,954

(16,483

)

9.

DIVIDENDS

31.3.22

31.3.21

£

£

Ordinary A shares of £1 each

Final

274,563

207,423

10.	FINANCIAL INSTRUMENTS

31.3.22

31.3.21

£

£

Financial assets measured at amortised cost

5,838,133

4,820,156

5,838,133

4,820,156

31.3.22

31.3.21

£

£

Financial liabilities measured at amortised cost

1,675,569

1,556,348

1,675,569

1,556,348

Financial assets measured at amortised cost comprises of trade debtors, other debtors, amounts owed by group undertakings and cash.

Financial liabilities measured at amortised cost comprises of trade creditors, other creditors and accruals and deferred income.

11.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

Totals

£

£

£

£

COST

At 1 April 2021

230,501

306,636

75,503

612,640

Additions

-

51,519

28,934

80,453

At 31 March 2022

230,501

358,155

104,437

693,093

DEPRECIATION

At 1 April 2021

102,392

276,297

73,197

451,886

Charge for year

21,983

28,309

3,764

54,056

At 31 March 2022

124,375

304,606

76,961

505,942

NET BOOK VALUE

At 31 March 2022

106,126

53,549

27,476

187,151

At 31 March 2021

128,109

30,339

2,306

160,754

12.

STOCKS

31.3.22

31.3.21

£

£

Work-in-progress

20,811

14,221