Axium Process Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 04432600 (England and Wales)

AXIUM PROCESS LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

Page

Company Information

1

Balance Sheet

2

to

3

Notes to the Financial Statements

4

to

9

DIRECTORS:

D W Houldsworth

Mrs M Houldsworth

P C Taylor

D P Davies

G H Vity

SECRETARY:

Mrs M Houldsworth

REGISTERED OFFICE:

Unit 2C Hendy Industrial Estate

Hendy

Swansea

SA4 0XP

REGISTERED NUMBER:

04432600 (England and Wales)

ACCOUNTANTS:

Gerald Thomas

Chartered Accountants

3 New Mill Court

Swansea Enterprise Park

Swansea

SA7 9FG

FIXED ASSETS

Tangible assets

4

1,111,097

1,214,596

CURRENT ASSETS

Stocks

524,603

456,527

Debtors

5

1,976,001

1,820,306

Cash at bank and in hand

389,377

17,686

2,889,981

2,294,519

CREDITORS

Amounts falling due within one year

6

1,538,472

853,767

NET CURRENT ASSETS

1,351,509

1,440,752

TOTAL ASSETS LESS CURRENT LIABILITIES

2,462,606

2,655,348

CREDITORS

Amounts falling due after more than one year

7

(1,961,535

)

(2,265,818

)

PROVISIONS FOR LIABILITIES

(93,892

)

(63,292

)

NET ASSETS

407,179

326,238

CAPITAL AND RESERVES

Called up share capital

1,000

1,000

Fair value reserve

9

171,123

173,840

Retained earnings

235,056

151,398

SHAREHOLDERS' FUNDS

407,179

326,238

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2021 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

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

(b)

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

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 24 March 2022 and were signed on its behalf by:

D W Houldsworth - Director

1.	STATUTORY INFORMATION

Axium Process Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors which are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision only effects that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The following are the critical judgements that the directors have made in the process of applying the company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Exceptional items

Where the company incurs costs or is entitled to income which the directors consider are either outside the scope of normal operating activities or unusually material to the accounts in terms of size or incidence, then such amounts are classified as exceptional items and disclosed separately on the face of the income statement and described further in a separate note to the accounts.

Impairment of assets

Assets are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the income statement.

Provisions and contingencies

Provisions are recognised when the company has a present obligation as a result of a past event and a reliable estimate can be made of a probable adverse outcome. Otherwise, material contingent liabilities are disclosed unless a transfer of economic benefits is considered remote. Contingent assets are only disclosed if an inflow of economic benefits is probable.

Turnover

Turnover is the amount derived from ordinary activities, stated after trade discounts, other sales taxes and VAT. The amount recorded as turnover in respect of long term contracts is ascertained by reference to the value of the work carried out to date. Attributable profit is recognised as the difference between recorded turnover and related costs. Other turnover is recognised on the dispatch of goods to the customer.

Tangible fixed assets

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

Plant and machinery etc

-

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

Government grants

Grants are credited to deferred revenue when entitlement to the grant has been established. Grants towards capital expenditure are then released to the income statement over the useful life of the assets. Grants towards revenue expenditure are released to the income statement as the related expenditure is incurred.

Stocks

Stocks and work-in-progress are stated at the lower of cost and net realisable value. Cost includes materials, direct labour and production overheads appropriate to the relevant stage of production. Net realisable value is based on estimated selling price less all further costs to completion and any relevant selling and distribution costs.

Financial instruments

Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Basic financial liabilities, including trade and other creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

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

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet and depreciated over their estimated useful lives.

The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Research and development

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

Going concern

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

The company is supported via loans from its shareholder directors and these directors have confirmed that they are willing to continue to support the company for the foreseeable future.

The directors have considered the potential impact of the Coronavirus pandemic; the directors recognise that the situation is still evolving and the potential future impact on the business are uncertain. The directors have taken steps to mitigate the risk to the business and although there is uncertainty, the directors are confident that all reasonable measures which can be taken, have been, to safeguard the business.

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

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 72 (2020 - 74 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 July 2020

2,418,141

Additions

51,016

Disposals

(2,305

)

At 30 June 2021

2,466,852

DEPRECIATION

At 1 July 2020

1,203,545

Charge for year

154,515

Eliminated on disposal

(2,305

)

At 30 June 2021

1,355,755

NET BOOK VALUE

At 30 June 2021

1,111,097

At 30 June 2020

1,214,596

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

480,536

659,984

Amounts recoverable on

long-term contracts

1,453,928

1,087,513

Other debtors

41,537

72,809

1,976,001

1,820,306

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Bank loans and overdrafts

40,727

-

Hire purchase contracts

95,062

104,501

Trade creditors

727,360

406,708

Taxation and social security

145,697

147,180

Other creditors

529,626

195,378

1,538,472

853,767

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Bank loans

156,667

200,000

Hire purchase contracts

193,218

258,730

Amounts owed to group undertakings

29,878

27,162

Other creditors

1,581,772

1,779,926

1,961,535

2,265,818

8.	SECURED DEBTS

The following secured debts are included within creditors:

2021

2020

£

£

Hire purchase contracts

288,280

363,231

Bank loans

-

200,000

288,280

563,231

Hire purchase contracts are secured on the assets to which they relate. The bank loan is secured by a government guarantee of 80% of the loan, with the remaining loan being secured by a charge over the company's assets.

9.

RESERVES

Fair

value

reserve

£

At 1 July 2020

173,840

Reserve transfer

(2,717

)

At 30 June 2021

171,123

10.	OTHER FINANCIAL COMMITMENTS

Operating lease payments committed to be paid at the balance sheet date amounted to £444,635 (2020: £85,333).

11.	RELATED PARTY DISCLOSURES

Included in creditors are the following amounts due to the directors. The movements in the year represent s repayments made by the company to the directors.

2020

2020

£

£

Creditors falling due within one year

120,000

120,000

Creditors falling due after more than one year

1,566,225

1,719,715

Total amount due

1,686,225

1,839,725

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

At the balance sheet date the parent company, Moda Systems Limited, was owed £29,877 (2020 - £27,161). This loan has been stated at fair value and effective interest charged to the income statement annually at a rate of 10%.