Eagle Scientific Limited - Limited company accounts 20.1
Eagle Scientific Limited - Limited company accounts 20.1
| EAGLE SCIENTIFIC LIMITED |
| GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 4 |
| Report of the Independent Auditors | 6 |
| Consolidated Income Statement | 10 |
| Consolidated Other Comprehensive Income | 11 |
| Consolidated Balance Sheet | 12 |
| Company Balance Sheet | 13 |
| Consolidated Statement of Changes in Equity | 14 |
| Company Statement of Changes in Equity | 15 |
| Consolidated Cash Flow Statement | 16 |
| Notes to the Consolidated Financial Statements | 17 |
| EAGLE SCIENTIFIC LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| SENIOR STATUTORY AUDITOR: | Hari Vasdev MEng FCA |
| AUDITORS: |
| Chartered Accountants and Statutory Auditor |
| Oakhurst House |
| 57 Ashbourne Road |
| Derby |
| Derbyshire |
| DE22 3FS |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| The directors present their strategic report of the company and the group for the year ended 31 March 2021. |
| BUSINESS REVIEW |
| The directors regard turnover, gross profit margin and net asset position as the key performance indicators of the group. |
| The group's turnover has seen a decrease of 40.1% from £13.7m in 2020 to £8.1m in 2021. This is largely due to the effects of the COVID 19 pandemic throughout the year. |
| Despite the difficult trading markets, gross profit margins have remained consistent with a small increase of 0.5% to 30.7% (2020: 30.2%). |
| The board are also pleased to see that there is a net asset position of £5,133,036 at the year end, which represents an small decrease of 1.9% in comparison to 2020. |
| Eagle Scientific Limited |
| The company has maintained a reasonable level of activity although lower than normally would be expected due to COVID 19. Activity is expected to increase significantly through the last two quarters of 2022. |
| Cooper Research Technology Limited |
| The company has significantly reduced its cost base and will derive the benefits from this in last two quarters of 2022. A number of important markets that were badly affected by COVID 19 have shown an increase in activity and the order book is now increasing. |
| Mercol Engineering Limited |
| The company has been operating at a reduced level due to the effect of COVID 19 and has reduced its cost base accordingly. |
| James Cox & Sons Inc. |
| The company has continued to trade well. The USA market for Asphalt Testing has remained strong and the impact of COVID 19 has been limited. Demand for products has continued into the new financial year. Testing in the Asphalt sector remains strong. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| COVID-19 |
| The key risk to the company is still the uncertainty caused by the COVID 19 pandemic. As forecast, delays in payment from existing contracts made the year challenging. Many of the group markets are facing difficulties with delays in payment and the issuance of new contracts. |
| Currency |
| An additional key risk to the group is the uncertainty in the currency exchange markets. This has a destabilising effect in terms of maintaining price lists for extended periods. The risk process is fully embedded in the business, and the monitoring and managing of risk is continually reviewed. |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| FINANCIAL INSTRUMENTS AND RISK MANAGEMENT |
| The group's financial assets and liabilities consist of trade debtors and creditors, cash balances, bank loans and overdrafts. The directors manage the group's exposure to financial risk by researching the credit worthiness of customers and by seeking advice from the group's providers of finance and its other external financial advisers. Currency risk is managed by holding Dollar and Euro bank accounts and where necessary by the use of forward contracts. The group does not trade speculatively in derivatives or similar instruments. |
| LIQUIDITY RISK |
| The Eagle Scientific group ensures that sufficient funds are available for the day to day operations of its subsidiaries. |
| RESEARCH AND DEVELOPMENT |
| Cooper Research Technology Limited has continued the development of new products within the Asphalt Testing sector for both industrial and research purposes. |
| ON BEHALF OF THE BOARD: |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| The directors present their report with the financial statements of the company and the group for the year ended 31 March 2021. |
| PRINCIPAL ACTIVITY |
| The principal activity of the group in the year under review was that of the design, manufacture and supply of high-performance materials testing equipment plus scientific, medical, educational and vocational training solutions. |
| DIVIDENDS |
| No dividends will be distributed for the year ended 31 March 2021. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 April 2020 to the date of this report. |
| DISCLOSURE IN THE STRATEGIC REPORT |
| Certain matters required by regulation to be dealt with in the Report of the Directors have been dealt with in the Strategic Report. These include financial instruments and research and development. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Group 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 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 group'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 group's auditors are aware of that information. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| EAGLE SCIENTIFIC LIMITED |
| Opinion |
| We have audited the financial statements of Eagle Scientific Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2021 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement 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 group's and of the parent company affairs as at 31 March 2021 and of the group's loss 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 group 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 group's and the parent 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 Group Strategic Report and the Report of the Directors, 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| EAGLE SCIENTIFIC LIMITED |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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. |
| 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| EAGLE SCIENTIFIC LIMITED |
| 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. |
| As part of our planning process: |
| - We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud. |
| - We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102 and Companies Act 2006. |
| - We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly. |
| -Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment. |
| The key procedures we undertook to detect irregularities including fraud during the course of the audit included: |
| - Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual. |
| - Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied. |
| - Testing key revenue lines, in particular cut-off, for evidence of management bias. |
| - Obtaining third-party confirmation of material bank balances. |
| - Documenting and verifying all significant related party and consolidated balances and transactions. |
| -Reviewing sensitive expense accounts for evidence of non-compliance with laws and regulations or fraud. |
| 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. |
| As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also: |
| - | Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
| - | Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control. |
| - | Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
| - | Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Report of the Auditors to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Report of the Auditors. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| EAGLE SCIENTIFIC LIMITED |
| - | Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
| - | Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express and opinion on the consolidated financial statements. |
| We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. |
| 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. |
| for and on behalf of |
| Chartered Accountants and Statutory Auditor |
| Oakhurst House |
| 57 Ashbourne Road |
| Derby |
| Derbyshire |
| DE22 3FS |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| CONSOLIDATED INCOME STATEMENT |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 2021 | 2020 |
| as restated |
| Notes | £ | £ |
| TURNOVER | 3 | 8,092,400 | 13,697,494 |
| Cost of sales | 5,606,701 | 9,565,576 |
| GROSS PROFIT | 2,485,699 | 4,131,918 |
| Administrative expenses | 2,905,492 | 3,590,267 |
| (419,793 | ) | 541,651 |
| Other operating income | 346,870 | 7,181 |
| OPERATING (LOSS)/PROFIT | 5 | (72,923 | ) | 548,832 |
| Interest receivable and similar income | 15,536 | 3,014 |
| (57,387 | ) | 551,846 |
| Interest payable and similar expenses | 6 | 58,980 | 46,008 |
| (LOSS)/PROFIT BEFORE TAXATION | (116,367 | ) | 505,838 |
| Tax on (loss)/profit | 7 | (13,799 | ) | (18,465 | ) |
| (LOSS)/PROFIT FOR THE FINANCIAL YEAR | ( |
) |
| (Loss)/profit attributable to: |
| Owners of the parent | (102,568 | ) | 524,303 |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| CONSOLIDATED OTHER COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 2021 | 2020 |
| as restated |
| Notes | £ | £ |
| (LOSS)/PROFIT FOR THE YEAR | (102,568 | ) | 524,303 |
| OTHER COMPREHENSIVE INCOME |
| Foreign exchange differences | 5,168 | (7,555 | ) |
| on consolidation |
| Income tax relating to other comprehensive income |
- |
- |
| OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
5,168 |
(7,555 |
) |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
516,748 |
| Note |
| Prior year adjustment | 10 | (33,615 | ) |
| TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT |
(131,015 |
) |
| Total comprehensive income attributable to: |
| Owners of the parent | (131,015 | ) | 516,748 |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| CONSOLIDATED BALANCE SHEET |
| 31 MARCH 2021 |
| 2021 | 2020 | 2019 |
| as restated |
| Notes | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 11 | 157,304 | 187,267 | 217,230 |
| Tangible assets | 12 | 1,024,696 | 1,079,565 | 1,148,396 |
| Investments | 13 | - | - | - |
| Investment property | 14 | 169,949 | 169,949 | 169,949 |
| 1,351,949 | 1,436,781 | 1,535,575 |
| CURRENT ASSETS |
| Stocks | 15 | 1,363,161 | 1,911,398 | 1,594,691 |
| Debtors | 16 | 5,739,544 | 5,645,150 | 2,116,001 |
| Cash at bank and in hand | 832,950 | 1,079,953 | 2,341,224 |
| 7,935,655 | 8,636,501 | 6,051,916 |
| CREDITORS |
| Amounts falling due within one year | 17 | (3,465,286 | ) | (4,638,739 | ) | (2,585,856 | ) |
| NET CURRENT ASSETS | 4,470,369 | 3,997,762 | 3,466,060 |
| TOTAL ASSETS LESS CURRENT LIABILITIES | 5,822,318 | 5,434,543 | 5,001,635 |
| CREDITORS |
| Amounts falling due after more than one year |
18 |
(689,282 |
) |
(177,796 |
) |
(198,465 |
) |
| PROVISIONS FOR LIABILITIES | 22 | - | (26,311 | ) | (3,482 | ) |
| NET ASSETS | 5,133,036 | 5,230,436 | 4,799,688 |
| CAPITAL AND RESERVES |
| Called up share capital | 23 | 150,000 | 150,000 | 150,000 |
| Capital redemption reserve | 24 | 50,000 | 50,000 | 50,000 |
| Retained earnings | 24 | 4,933,036 | 5,030,436 | 4,599,688 |
| SHAREHOLDERS' FUNDS | 5,133,036 | 5,230,436 | 4,799,688 |
| The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 26 October 2021 and were signed on its behalf by: |
| T J Johnsen - Director |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| COMPANY BALANCE SHEET |
| 31 MARCH 2021 |
| 2021 | 2020 |
| as restated |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 11 |
| Tangible assets | 12 |
| Investments | 13 |
| Investment property | 14 |
| CURRENT ASSETS |
| Stocks | 15 |
| Debtors | 16 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 17 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
18 |
( |
) |
| PROVISIONS FOR LIABILITIES | 22 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 23 |
| Capital redemption reserve | 24 |
| Retained earnings | 24 |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 120,544 | 324,329 |
| The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| Called up | Capital |
| share | Retained | redemption | Total |
| capital | earnings | reserve | equity |
| £ | £ | £ | £ |
| Balance at 1 April 2019 | 150,000 | 4,599,688 | 50,000 | 4,799,688 |
| Changes in equity |
| Dividends | - | (86,000 | ) | - | (86,000 | ) |
| Total comprehensive income | - | 550,363 | - | 550,363 |
| Balance at 31 March 2020 | 150,000 | 5,064,051 | 50,000 | 5,264,051 |
| Prior year adjustment | - | (33,615 | ) | - | (33,615 | ) |
| As restated | 150,000 | 5,030,436 | 50,000 | 5,230,436 |
| Changes in equity |
| Total comprehensive income | - | (97,400 | ) | - | (97,400 | ) |
| Balance at 31 March 2021 | 150,000 | 4,933,036 | 50,000 | 5,133,036 |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| COMPANY STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| Called up | Capital |
| share | Retained | redemption | Total |
| capital | earnings | reserve | equity |
| £ | £ | £ | £ |
| Balance at 1 April 2019 |
| Changes in equity |
| Dividends | - | ( |
) | - | ( |
) |
| Total comprehensive income | - |
| Balance at 31 March 2020 |
| Changes in equity |
| Total comprehensive income | - |
| Balance at 31 March 2021 |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| CONSOLIDATED CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 2021 | 2020 |
| as restated |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 30 | (937,096 | ) | (1,981,616 | ) |
| Interest paid | (58,980 | ) | (46,008 | ) |
| Tax paid | 40,939 | (47,734 | ) |
| Net cash from operating activities | (955,137 | ) | (2,075,358 | ) |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | (35,106 | ) | (47,125 | ) |
| Sale of tangible fixed assets | 13,484 | 26,710 |
| Interest received | 15,536 | 3,014 |
| Net cash from investing activities | (6,086 | ) | (17,401 | ) |
| Cash flows from financing activities |
| New loans in year | 810,333 | 3,418,423 |
| Loan repayments in year | (144,855 | ) | (2,436,095 | ) |
| Government grants received | 315,884 | - |
| Equity dividends paid | - | (86,000 | ) |
| Net cash from financing activities | 981,362 | 896,328 |
| Increase/(decrease) in cash and cash equivalents | 20,139 | (1,196,431 | ) |
| Cash and cash equivalents at beginning of year |
31 |
617,882 |
1,814,313 |
| Cash and cash equivalents at end of year | 31 | 638,021 | 617,882 |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 1. | STATUTORY INFORMATION |
| Eagle Scientific Limited is a |
| 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets. |
| Basis of consolidation |
| The consolidated financial statements incorporate the financial statements of the company and all of its subsidiary undertakings. The acquisition method of accounting has been adopted. |
| Related party exemption |
| 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', not to disclose related party transactions with wholly owned subsidiaries within the group. |
| Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
| Critical accounting judgements and key sources of estimation uncertainty |
| In the application of the group's accounting policies, the directors are required to make judgements, estimates and assumptions regarding the carrying amounts of the group's assets and liabilities. These are based on historical experience and other factors that are considered relevant. They are reviewed on a regular basis and changes recognised in the period in which the estimate is revised. Actual results may differ from these estimates. |
| The following are the critical accounting judgements and key sources of estimation uncertainty: |
| Intangible and tangible fixed assets are amortised or depreciated over their useful economic lives taking into account their residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing the asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual values consider such things as future market conditions, the remaining life of the asset and projected disposal values. |
| The recoverability of debtors is assessed on the likelihood and circumstances of the particular charge. |
| The value of stock is assessed for impairment. In re-assessing the stock value, factors such as slow movement and obsolescence are taken into account. |
| Turnover |
| Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
| Turnover is recognised when the group has transferred the significant risks and rewards of ownership to the buyer and it is probable that the group will receive the previously agreed upon payment. |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 2. | ACCOUNTING POLICIES - continued |
| Goodwill |
| Tangible fixed assets |
| Freehold property | - |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Motor vehicles | - |
| Computer equipment | - |
| Government grants |
| Revenue based government grants are recognised as other income in the Income Statement. Government grants are recognised on a systematic basis over the periods in which the related cost or costs, which the grant is intended to compensate, is recognised. |
| Capital based government grants are included within other creditors in the balance sheet and recognised as other income in the Income Statement over the expected useful economic lives of the assets to which they relate. |
| Investment property |
| Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
| Stocks and work in progress |
| 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 in bringing stocks to their present location and condition. |
| For certain work in progress and finished goods manufactured by the group, cost is taken as production cost, which includes an appropriate proportion of attributable overheads. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 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. |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 2. | ACCOUNTING POLICIES - continued |
| 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. |
| Research and development |
| Expenditure on research and development is written off in the year in which it is incurred. |
| 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 profit or loss on a straight line basis over the period of the lease. |
| Pension costs and other post-retirement benefits |
| The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
| Financial assets and liabilities |
| Short term debtors are measured at transaction price, less any impairment. Other financial assets, including loans to group companies are measured initially at fair value, net of transactions cost and are subsequently measured at amortised cost using the effective interest method, less any impairment. |
| Short term creditors are measured at transaction price. Other financial liabilities, including loans from group companies are measured initially at fair value, net of transaction cost and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
| Going concern |
| After reviewing the group's cashflow forecasts and projections plus the latest management accounts, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The group therefore continues to adopt the going concern policy in preparing its financial statements. |
| The impact of COVID-19 on the rest of the group has been considered by the directors and they have concluded that there is no significant doubt about the group's ability to continue as a going concern. The government support utilised by the group was the Coronavirus Job Retention Scheme and a government backed CBILS loan to assist with cashflow issues that the group were facing as a result of the global travel retractions to certain countries. Since the year end global travel restrictions have started to ease which has allowed completion of a number of ongoing projects and subsequently resulted in the settlement of outstanding debtors. |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 3. | TURNOVER |
| The turnover and loss (2020 - profit) before taxation are attributable to the one principal activity of the group. |
| An analysis of turnover by geographical market is given below: |
| 2021 | 2020 |
| as restated |
| £ | £ |
| United Kingdom |
| Europe |
| Rest of the world | 6,879,562 | 12,018,714 |
| 4. | EMPLOYEES AND DIRECTORS |
| 2021 | 2020 |
| as restated |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the year was as follows: |
| 2021 | 2020 |
| as restated |
| Administrative | 44 | 48 |
| Operational | 31 | 33 |
| 2021 | 2020 |
| as restated |
| £ | £ |
| Directors' remuneration |
| Directors' pension contributions to money purchase schemes |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes |
| Information regarding the highest paid director is as follows: |
| 2021 | 2020 |
| as restated |
| £ | £ |
| Emoluments etc |
| Pension contributions to money purchase schemes |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 5. | OPERATING (LOSS)/PROFIT |
| The operating loss (2020 - operating profit) is stated after charging/(crediting): |
| 2021 | 2020 |
| as restated |
| £ | £ |
| Operating lease payments |
| Other operating leases |
| Depreciation - owned assets |
| (Profit)/loss on disposal of fixed assets | ( |
) |
| Goodwill amortisation |
| Auditors' remuneration |
| Foreign exchange differences | ( |
) |
| Government grants | ( |
) | ( |
) |
| 6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2021 | 2020 |
| as restated |
| £ | £ |
| Bank interest |
| Bank loan interest |
| 7. | TAXATION |
| Analysis of the tax credit |
| The tax credit on the loss for the year was as follows: |
| 2021 | 2020 |
| as restated |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Prior year tax adjustment | - | (114,637 | ) |
| Total current tax | ( |
) |
| Deferred tax | ( |
) |
| Tax on (loss)/profit | ( |
) | ( |
) |
| UK corporation tax has been charged at 19% (2020 - 19%). |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 7. | TAXATION - continued |
| Reconciliation of total tax credit 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 |
| as restated |
| £ | £ |
| (Loss)/profit before tax | ( |
) |
| (Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
( |
) |
| Effects of: |
| Expenses not deductible for tax purposes |
| Adjustments to tax charge in respect of previous periods | ( |
) |
| Effect of goodwill amortisation | 5,692 | 5,692 |
| Other permanent differences | 2,403 | 14,117 |
| Total tax credit | (13,799 | ) | (18,465 | ) |
| Tax effects relating to effects of other comprehensive income |
| 2021 |
| Gross | Tax | Net |
| £ | £ | £ |
| Foreign exchange differences | - | 5,168 |
| on consolidation |
| 5,168 | - | 5,168 |
| 2020 |
| Gross | Tax | Net |
| £ | £ | £ |
| Foreign exchange differences | ( |
) | - | (7,555 | ) |
| on consolidation |
| (7,555 | ) | - | (7,555 | ) |
| In his budget of 11 March 2020. the Chancellor of the Exchequer announced that the UK corporation tax rate will remain at 19% for the years starting 1 April 2020 and 1 April 2021. This has been reflected in the group's financial statements in the current and future years and deferred tax has subsequently been provided at this rate. This will impact the amount of future cash tax payments made by the group. |
| In the future, the group expects to be able to continue to claim capital allowances in excess of depreciation. |
| 8. | INDIVIDUAL INCOME STATEMENT |
| As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 9. | DIVIDENDS |
| 2021 | 2020 |
| as restated |
| £ | £ |
| Ordinary shares of £1 each |
| Interim |
| 10. | PRIOR YEAR ADJUSTMENT |
| An unprovided sales credit note in the prior year has been assessed to have a material impact on the current year's financial statements of a subsidiary and therefore a prior year adjustment has been made. |
| 11. | INTANGIBLE FIXED ASSETS |
| Group |
| Goodwill |
| £ |
| COST |
| At 1 April 2020 |
| and 31 March 2021 |
| AMORTISATION |
| At 1 April 2020 |
| Amortisation for year |
| At 31 March 2021 |
| NET BOOK VALUE |
| At 31 March 2021 |
| At 31 March 2020 |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 12. | TANGIBLE FIXED ASSETS |
| Group |
| Improvements |
| Freehold | to | Plant and |
| property | property | machinery |
| £ | £ | £ |
| COST |
| At 1 April 2020 | 1,088,829 | 4,758 | 552,784 |
| Additions | - | - | 14,612 |
| Disposals | - | - | (6,855 | ) |
| Exchange differences | - | (451 | ) | (3,821 | ) |
| At 31 March 2021 | 1,088,829 | 4,307 | 556,720 |
| DEPRECIATION |
| At 1 April 2020 | 246,633 | 844 | 427,538 |
| Charge for year | 18,670 | 93 | 39,710 |
| Eliminated on disposal | - | - | (3,977 | ) |
| Exchange differences | - | (80 | ) | (2,870 | ) |
| At 31 March 2021 | 265,303 | 857 | 460,401 |
| NET BOOK VALUE |
| At 31 March 2021 | 823,526 | 3,450 | 96,319 |
| At 31 March 2020 | 842,196 | 3,914 | 125,246 |
| Fixtures |
| and | Motor | Computer |
| fittings | vehicles | equipment | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 April 2020 | 372,007 | 85,150 | 47,515 | 2,151,043 |
| Additions | 4,796 | 14,000 | 1,698 | 35,106 |
| Disposals | - | (9,991 | ) | - | (16,846 | ) |
| Exchange differences | (777 | ) | (1,174 | ) | - | (6,223 | ) |
| At 31 March 2021 | 376,026 | 87,985 | 49,213 | 2,163,080 |
| DEPRECIATION |
| At 1 April 2020 | 290,895 | 62,558 | 43,010 | 1,071,478 |
| Charge for year | 11,967 | 4,712 | 2,087 | 77,239 |
| Eliminated on disposal | - | (1,597 | ) | - | (5,574 | ) |
| Exchange differences | (635 | ) | (1,174 | ) | - | (4,759 | ) |
| At 31 March 2021 | 302,227 | 64,499 | 45,097 | 1,138,384 |
| NET BOOK VALUE |
| At 31 March 2021 | 73,799 | 23,486 | 4,116 | 1,024,696 |
| At 31 March 2020 | 81,112 | 22,592 | 4,505 | 1,079,565 |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 12. | TANGIBLE FIXED ASSETS - continued |
| Group |
| Included in cost of land and buildings is freehold land of £155,000 (2020 - £155,000) which is not depreciated. |
| Company |
| Fixtures |
| Freehold | Plant and | and |
| property | machinery | fittings |
| £ | £ | £ |
| COST |
| At 1 April 2020 |
| Additions |
| At 31 March 2021 |
| DEPRECIATION |
| At 1 April 2020 |
| Charge for year |
| At 31 March 2021 |
| NET BOOK VALUE |
| At 31 March 2021 |
| At 31 March 2020 |
| Motor | Computer |
| vehicles | equipment | Totals |
| £ | £ | £ |
| COST |
| At 1 April 2020 |
| Additions |
| At 31 March 2021 |
| DEPRECIATION |
| At 1 April 2020 |
| Charge for year |
| At 31 March 2021 |
| NET BOOK VALUE |
| At 31 March 2021 |
| At 31 March 2020 |
| Included in cost of land and buildings is freehold land of £ 155,000 (2020 - £ 155,000 ) which is not depreciated. |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 13. | FIXED ASSET INVESTMENTS |
| Company |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 April 2020 |
| and 31 March 2021 |
| NET BOOK VALUE |
| At 31 March 2021 |
| At 31 March 2020 |
| The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Subsidiaries |
| Registered office: Regent House, Lenton Street, Sandiacre, Nottingham, Nottinghamshire, NG10 5DJ |
| Nature of business: |
| % |
| Class of shares: | holding |
| Mercol Engineering Limited |
| Registered office: Regent House, Lenton Street, Sandiacre, Nottingham, Nottinghamshire, NG10 5DG |
| Nature of business: Manufacturer of instruments for testing |
| % |
| Class of shares: | holding |
| Ordinary | 100.00 |
| By virtue of the shares held in Cooper Research Technology Limited. |
| James Cox and Sons Inc. |
| Registered office: PO Box 674, Colfax CA95713, USA |
| Nature of business: Manufacturer of instruments for testing |
| % |
| Class of shares: | holding |
| Ordinary | 100.00 |
| By virtue of the shares held in Cooper Research Technology Limited. |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 14. | INVESTMENT PROPERTY |
| Group |
| Total |
| £ |
| FAIR VALUE |
| At 1 April 2020 |
| and 31 March 2021 | 169,949 |
| NET BOOK VALUE |
| At 31 March 2021 | 169,949 |
| At 31 March 2020 | 169,949 |
| The valuation of Investment Property is based on management's assessment of the fair value at each reporting date. |
| Company |
| Total |
| £ |
| FAIR VALUE |
| At 1 April 2020 |
| and 31 March 2021 |
| NET BOOK VALUE |
| At 31 March 2021 |
| At 31 March 2020 |
| Fair value at 31 March 2021 is represented by: |
| £ |
| Valuation in 2020 | 169,949 |
| If had not been revalued would have been included at the following historical cost: |
| 2021 | 2020 |
| as restated |
| £ | £ |
| Cost | 169,949 | 169,949 |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 15. | STOCKS |
| Group | Company |
| 2021 | 2020 | 2021 | 2020 |
| as restated | as restated |
| £ | £ | £ | £ |
| Raw materials | 280,290 | 287,471 |
| Work-in-progress | 85,198 | 142,022 |
| Finished goods | 997,673 | 1,481,905 |
| 1,363,161 | 1,911,398 |
| 16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2021 | 2020 | 2021 | 2020 |
| as restated | as restated |
| £ | £ | £ | £ |
| Trade debtors | 5,593,180 | 5,344,435 |
| Amounts owed by group undertakings | - | - |
| Other debtors | 28,419 | 27,887 |
| Tax | - | 114,637 |
| Corporation tax | 1,625 | 1,625 | - | - |
| VAT | 62,039 | - |
| Deferred tax asset | 2,942 | - | - | - |
| Prepayments and accrued income | 51,339 | 156,566 |
| 5,739,544 | 5,645,150 |
| Deferred tax asset |
| Group | Company |
| 2021 | 2020 | 2021 | 2020 |
| as restated | as restated |
| £ | £ | £ | £ |
| Accelerated capital allowances | (31,210 | ) | - |
| Tax losses carried forward | 31,351 | - |
| Other timing differences | 2,801 | - | - | - |
| 2,942 | - |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2021 | 2020 | 2021 | 2020 |
| as restated | as restated |
| £ | £ | £ | £ |
| Bank loans and overdrafts (see note 19) | 1,212,374 | 1,480,423 |
| Trade creditors | 1,479,206 | 2,178,653 |
| Amounts owed to group undertakings | - | - |
| Tax | 14,276 | 72,520 |
| Social security and other taxes | 232,727 | 93,026 |
| VAT | - | 9,660 | - | 3,354 |
| Other creditors | 155,993 | 21,452 |
| Dividends payable | 36,000 | 36,000 | 36,000 | 36,000 |
| Deferred income | - | 498,891 |
| Accrued expenses | 332,037 | 243,660 |
| Deferred government grants | 2,673 | 4,454 |
| 3,465,286 | 4,638,739 |
| 18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group | Company |
| 2021 | 2020 | 2021 | 2020 |
| as restated | as restated |
| £ | £ | £ | £ |
| Bank loans (see note 19) | 687,500 | 21,114 |
| Other creditors | - | 150,000 |
| Deferred government grants | 1,782 | 6,682 |
| 689,282 | 177,796 |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 19. | LOANS |
| An analysis of the maturity of loans is given below: |
| Group | Company |
| 2021 | 2020 | 2021 | 2020 |
| as restated | as restated |
| £ | £ | £ | £ |
| Amounts falling due within one year or on | demand: |
| Bank overdrafts | 194,929 | 462,071 |
| Bank loans - secured | 1,017,445 | 1,018,352 |
| 1,212,374 | 1,480,423 |
| Amounts falling due between one and two | years: |
| Bank loans 1-2 years - secured | 150,000 | 21,114 |
| Amounts falling due between two and five | years: |
| Bank loans 2-5 years - secured | 450,000 | - |
| Amounts falling due in more than five years: |
| Repayable by instalments |
| Bank loans more 5 yr by instal | 87,500 | - | - | - |
| The £900k bank loan is repayable on demand and the related facilities are continued to be extended by the bank. Interest on the loan is charged at 2.25% above base rate. |
| The £750k CBILS loan is repayable in monthly instalments from November 2021 onwards and will be fully repaid in October 2026. Interest is charged at 3.99% above base rate. |
| The remaining bank loan is repayable in monthly instalments and will be fully repaid in April 2022. Interest is charged at 3.35% above base rate. |
| 20. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Non-cancellable operating | leases |
| 2021 | 2020 |
| as restated |
| £ | £ |
| Within one year | 29,175 | 53,443 |
| Between one and five years | 66,459 | 13,613 |
| 95,634 | 67,056 |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 21. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| Group |
| 2021 | 2020 |
| as restated |
| £ | £ |
| Bank overdrafts | 194,929 | 462,071 |
| Bank loans | 1,704,945 | 1,039,466 |
| 1,899,874 | 1,501,537 |
| All loans excluding the CBILS loan are secured against the assets to which they relate. Details of other securities are provided in the other financial commitments note. |
| During the year, the net cashflow covenant on one of the loans was not met. It is expected that the loan provider will continue to support the subsidiary company affected on the basis that there are sufficient company assets and group cash reserves to repay the loan in full, if required. |
| 22. | PROVISIONS FOR LIABILITIES |
| Group | Company |
| 2021 | 2020 | 2021 | 2020 |
| as restated | as restated |
| £ | £ | £ | £ |
| Deferred tax |
| Accelerated capital allowances | - | 34,700 |
| Tax losses carried forward | - | (5,616 | ) |
| Other timing differences | - | (2,773 | ) | - | - |
| - | 26,311 | 6,000 | 4,000 |
| Group |
| Deferred |
| tax |
| £ |
| Balance at 1 April 2020 | 26,311 |
| Credit to Income Statement during year | (29,253 | ) |
| Balance at 31 March 2021 | (2,942 | ) |
| Company |
| Deferred |
| tax |
| £ |
| Balance at 1 April 2020 |
| Charge to Income Statement during year |
| Balance at 31 March 2021 |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 23. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2021 | 2020 |
| value: | as restated |
| £ | £ |
| Ordinary | £1 | 150,000 | 150,000 |
| 24. | RESERVES |
| Group |
| Capital |
| Retained | redemption |
| earnings | reserve | Totals |
| £ | £ | £ |
| At 1 April 2020 | 5,064,051 | 50,000 | 5,114,051 |
| Prior year adjustment | (33,615 | ) | (33,615 | ) |
| 5,030,436 | 5,080,436 |
| Deficit for the year | (102,568 | ) | (102,568 | ) |
| Foreign exchange differences | 5,168 | - | 5,168 |
| At 31 March 2021 | 4,933,036 | 50,000 | 4,983,036 |
| Company |
| Capital |
| Retained | redemption |
| earnings | reserve | Totals |
| £ | £ | £ |
| At 1 April 2020 | 5,119,848 |
| Profit for the year |
| At 31 March 2021 | 5,240,392 |
| 25. | PENSION COMMITMENTS |
| The group operates a defined contribution pension scheme for the benefits of its employees. The costs of the scheme are recognised in the year in which contributions are payable are disclosed in the employees and directors note. |
| 26. | CONTINGENT LIABILITIES |
| As part of the normal course of business, the group has given a number of guarantees secured by its bankers. The total amount guaranteed at the balance sheet date was £801,797 (2020 - £453,028). |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 27. | OTHER FINANCIAL COMMITMENTS |
| The group has an undertaking to its bankers for full group security incorporating debentures and corporate guarantees for the group's borrowings dated 10 January 2017. The net amount outstanding to the bank in respect of the undertaking at 31 March 2021 was £1,164,612 (2020 - £492,622). |
| The bank borrowings are secured by a fixed and floating charge over the assets of the group. |
| 28. | RELATED PARTY DISCLOSURES |
| The following advances and credits to associates of directors subsisted during the years ended 31 March 2021 and 31 March 2020: |
| 2021 | 2020 |
| £ | £ |
| Balance outstanding at start of year | - | 40,000 |
| Amounts advanced | - | - |
| Amounts repaid | - | (40,000 | ) |
| Balance outstanding at end of year | - | - |
| All advances are interest free and repayable on demand. |
| 29. | ULTIMATE CONTROLLING PARTY |
| The controlling party is T J Johnsen. |
| 30. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2021 | 2020 |
| as restated |
| £ | £ |
| (Loss)/profit before taxation | (116,367 | ) | 505,838 |
| Depreciation charges | 107,435 | 116,855 |
| (Profit)/loss on disposal of fixed assets | (2,212 | ) | 2,665 |
| Foreign exchange differences | 5,168 | (7,555 | ) |
| Government grants | (321,333 | ) | (7,455 | ) |
| Finance costs | 58,980 | 46,008 |
| Finance income | (15,536 | ) | (3,014 | ) |
| (283,865 | ) | 653,342 |
| Decrease/(increase) in stocks | 548,237 | (316,707 | ) |
| Increase in trade and other debtors | (206,089 | ) | (3,414,512 | ) |
| (Decrease)/increase in trade and other creditors | (995,379 | ) | 1,096,261 |
| Cash generated from operations | (937,096 | ) | (1,981,616 | ) |
| EAGLE SCIENTIFIC LIMITED (REGISTERED NUMBER: 01446445) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MARCH 2021 |
| 31. | 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 2021 |
| 31.3.21 | 1.4.20 |
| £ | £ |
| Cash and cash equivalents | 832,950 | 1,079,953 |
| Bank overdrafts | (194,929 | ) | (462,071 | ) |
| 638,021 | 617,882 |
| Year ended 31 March 2020 |
| 31.3.20 | 1.4.19 |
| as restated |
| £ | £ |
| Cash and cash equivalents | 1,079,953 | 2,341,224 |
| Bank overdrafts | (462,071 | ) | (526,911 | ) |
| 617,882 | 1,814,313 |
| 32. | ANALYSIS OF CHANGES IN NET DEBT |
| At 1.4.20 | Cash flow | At 31.3.21 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 1,079,953 | (247,003 | ) | 832,950 |
| Bank overdrafts | (462,071 | ) | 267,142 | (194,929 | ) |
| 617,882 | 20,139 | 638,021 |
| Debt |
| Debts falling due within 1 year | (1,018,352 | ) | 907 | (1,017,445 | ) |
| Debts falling due after 1 year | (21,114 | ) | (666,386 | ) | (687,500 | ) |
| (1,039,466 | ) | (665,479 | ) | (1,704,945 | ) |
| Total | (421,584 | ) | (645,340 | ) | (1,066,924 | ) |