Alfatronix Ltd - Period Ending 2021-11-30

Alfatronix Ltd

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 10

Alfatronix Ltd

Company Information

Directors

K V Reilly L J Kitching C Black M Reilly C M Phillips A Hadfield

Registered office

Unit 29 Newtown Business Park Ringwood Road Poole BH12 3LL

Auditors

PKF Francis Clark Chartered Accountants & Registered Auditors Towngate House 2-8 Parkstone Road Poole Dorset BH15 2PW

Alfatronix Ltd

Balance Sheet

30 November 2021

	Note	2021 £	2020 £
Fixed assets
Tangible assets	7	303,270	413,987
Current assets
Stocks	8	1,538,800	1,114,203
Debtors	9	2,647,895	2,501,261
Cash at bank and in hand		769,675	981,690
		4,956,370	4,597,154
Creditors: Amounts falling due within one year	10	(774,628)	(466,555)
Net current assets		4,181,742	4,130,599
Total assets less current liabilities		4,485,012	4,544,586
Provisions for liabilities	11	(192,863)	(327,151)
Net assets		4,292,149	4,217,435
Capital and reserves
Called up share capital		62,000	62,000
Capital redemption reserve		369,449	369,449
Profit and loss account		3,860,700	3,785,986
Total equity		4,292,149	4,217,435

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 6 April 2022 and signed on its behalf by:
 

......................................... K V Reilly Director

Company Registration Number: 01416679

Alfatronix Ltd

Notes to the Financial Statements

Year Ended 30 November 2021

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 29
Newtown Business Park
Ringwood Road
Poole
BH12 3LL

These financial statements were authorised for issue by the Board on 6 April 2022.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 including Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

These financial statements have been prepared using £ Sterling and have been rounded to the nearest whole pound.

Going concern

The directors have considered the ongoing impact of the coronavirus pandemic on income streams and have reviewed the level of core overheads of the business, to determine if there is sufficient working capital to meet these requirements, for a period of at least twelve months from the date of approval of these financial statements. This review considered the company having a significant fall in income as a result of future lockdowns.

Following this review, based on the information available to date the directors are satisfied that the company has sufficient cash balances to meet these requirements and, accordingly, the directors continue to adopt the going concern basis of presentation.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the manufacture and sale of other electrical equipment. Turnover is shown net of value added tax and is recognised upon despatch and delivery of goods.

Alfatronix Ltd

Notes to the Financial Statements

Year Ended 30 November 2021

Government grants

Conditional government grant income is recognised under the accrual model within the financial statements and as such are recognised on a systematic basis over the periods in which the company recognised the related costs for which the grants are intended to compensate.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

Tax is recognised in profit or loss. The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Plant and machinery	25% straight line basis
Computer equipment	50% straight line basis
Leasehold property	Period of lease

Development costs

Research and development expenditure is written off as incurred.

Alfatronix Ltd

Notes to the Financial Statements

Year Ended 30 November 2021

Warranties

The company provides lifetime guarantees in respect of its products, subject to certain conditions, and the cost of any claims under the guarantee would be written off in the year of the claim.

Where claims have not been settled at year end and the timing of settlement is uncertain, the future costs and likelihood of a claim are estimated. The future costs are estimated using the information available on the claims of the specific products which have been settled during the year and after the year end. The likelihood of future claims is assessed based on known issues and historic trends. These amounts are included in provisions.

Stocks

Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price anticipated costs to completion and selling costs.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

 

Alfatronix Ltd

Notes to the Financial Statements

Year Ended 30 November 2021

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 61 (2020 - 67).

Alfatronix Ltd

Notes to the Financial Statements

Year Ended 30 November 2021

4

Taxation

Tax charged/(credited) in the profit and loss account

	2021  £	2020  £
Current taxation
UK corporation tax	6,580	24,224
UK corporation tax adjustment to prior periods	(51)	-
	6,529	24,224
Deferred taxation
Arising from origination and reversal of timing differences	(3,862)	(16,147)
Tax expense in the income statement	2,667	8,077

5	Other operating income

The analysis of the company's other operating income for the year is as follows:

	2021 £	2020 £
Government grants	46,290	272,965

6	Intangible assets

	Corporate brand  £	Total £
Cost or valuation
At 1 December 2020	500,000	500,000
At 30 November 2021	500,000	500,000
Amortisation
At 1 December 2020	500,000	500,000
At 30 November 2021	500,000	500,000
Carrying amount
At 30 November 2021	-	-
At 30 November 2020	-	-

Alfatronix Ltd

Notes to the Financial Statements

Year Ended 30 November 2021

7	Tangible assets

	Short leasehold land and buildings £	Computer equipment  £	Plant and machinery  £	Total £
Cost or valuation
At 1 December 2020	78,850	200,895	1,523,227	1,802,972
Additions	-	7,308	121,328	128,636
Disposals	(29,211)	(168,367)	(703,106)	(900,684)
At 30 November 2021	49,639	39,836	941,449	1,030,924
Depreciation
At 1 December 2020	47,608	187,764	1,153,613	1,388,985
Charge for the year	11,920	12,789	196,871	221,580
Eliminated on disposal	(30,107)	(167,414)	(685,390)	(882,911)
At 30 November 2021	29,421	33,139	665,094	727,654
Carrying amount
At 30 November 2021	20,218	6,697	276,355	303,270
At 30 November 2020	31,242	13,131	369,614	413,987

Included within the net book value of land and buildings above is £20,218 (2020 - £31,242) in respect of long leasehold land and buildings.
 

8

Stocks

	2021 £	2020 £
Other inventories	1,538,800	1,114,203

9

Debtors

	Note	2021 £	2020 £
Trade debtors		980,034	940,402
Amounts owed by group undertakings and undertakings in which the company has a participating interest	14	1,433,741	1,433,741
Prepayments		56,323	67,906
Other debtors		177,797	59,212
		2,647,895	2,501,261

Alfatronix Ltd

Notes to the Financial Statements

Year Ended 30 November 2021

10

Creditors

Creditors: amounts falling due within one year

	2021 £	2020 £
Due within one year
Trade creditors	694,442	311,317
Corporation tax	6,580	24,403
Taxation and social security	53,508	73,595
Other creditors	1,662	41,605
Accruals and deferred income	18,436	15,635
	774,628	466,555

11	Deferred tax and other provisions

	Warranties £	Deferred tax £	Total £
At 1 December 2020	264,496	62,655	327,151
Increase (decrease) in existing provisions	(130,426)	(3,862)	(134,288)
At 30 November 2021	134,070	58,793	192,863

12	Share capital

Allotted, called up and fully paid shares

	2021		2020
	No.	£	No.	£
Ordinary 'A' shares of £1 each	57,000	57,000	57,000	57,000
Ordinary 'B' shares of £1 each	5,000	5,000	5,000	5,000
	62,000	62,000	62,000	62,000

Rights, preferences and restrictions

Ordinary 'B' shares have the following rights, preferences and restrictions: No voting rights.

Alfatronix Ltd

Notes to the Financial Statements

Year Ended 30 November 2021

13	Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of rental commitments not included in the balance sheet is £405,799 (2020 - £477,410).

The total amount of operating lease commitments not included in the balance sheet is £Nil (2020 - £6,506).

Contingent liabilities

Bank facilities are secured by an unlimited inter-company guarantee with Alfatronix (Holdings) Limited.

14	Related party transactions

Summary of transactions with parent

Alfatronix (Holdings) Limited
 As at 30 November 2021, £1,433,741 (2020: £1,433,741) was due from Alfatronix (Holdings) Limited. The inter-company loan is interest free and repayable on demand.

Dividends totalling £765,001 (2020: £742,049) were paid to Alfatronix (Holdings) Limited during the course of the year.
 

15	Audit report

The Independent Auditors' Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report was Chloe Mills FCA, who signed for and on behalf of PKF Francis Clark on 12 April 2022.