Trumeter Technologies Limited - Period Ending 2022-12-31

TRUMETER TECHNOLOGIES LIMITED - Company Information

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Registration number: 07115948

Trumeter Technologies Limited

Financial Statements

for the Year Ended 31 December 2022

Trumeter Technologies Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 14

Trumeter Technologies Limited

Company Information

Directors

Mr JC Smith

Mr J Carr

Mr G Copitch

Mr D Weidenbaum

Company secretary

Mr D Weidenbaum

Registered office

Pilot Mill
Alfred Street
Bury
Lancashire
BL9 9JR

Auditors

Alextra Audit Limited
7-9 Macon Court
Crewe
Cheshire
CW1 6EA

Trumeter Technologies Limited

(Registration number: 07115948)
Balance Sheet as at 31 December 2022

	Note	2022 £	2021 £
Fixed assets
Intangible assets	5	1,221,734	953,244
Tangible assets	6	9,053	4,634
		1,230,787	957,878
Current assets
Stocks	7	302,805	222,992
Debtors	8	1,799,197	1,389,776
Cash at bank and in hand		20,569	303,438
		2,122,571	1,916,206
Creditors: Amounts falling due within one year	9	(963,072)	(852,384)
Net current assets		1,159,499	1,063,822
Total assets less current liabilities		2,390,286	2,021,700
Creditors: Amounts falling due after more than one year	9	(231,667)	(290,170)
Net assets		2,158,619	1,731,530
Capital and reserves
Called up share capital		100,000	100,000
Retained earnings		2,058,619	1,631,530
Shareholders' funds		2,158,619	1,731,530

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 6 September 2023 and signed on its behalf by:

.........................................
Mr JC Smith
Director

Trumeter Technologies Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

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:
Pilot Mill
Alfred Street
Bury
Lancashire
BL9 9JR
England

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 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

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 are prepared in Sterling, which is the functional currency of the company. All monetary amounts are rounded to the nearest £.

Audit report

The Independent Auditor's Report was qualified. This is due to this being the first year that the company has been audited and as such we have not been able to obtain sufficient appropriate audit evidence regarding the opening balances. The name of the Senior Statutory Auditor who signed the audit report on 11 September 2023 was Matthew Geoffrey Price FCCA, who signed for and on behalf of Alextra Audit Limited.

Trumeter Technologies Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

Judgements

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 that 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 where revision affects only that period, or in the period of revision and future periods where the revision affects both current and future periods.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Government grants

Government Grants are recognised using the accrual model. Grants which relate to revenue shall be recognised in other operating income on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate.
Any amounts outstanding at the year end will be included within other debtors.

Foreign currency transactions and balances

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 the transaction. Exchange differences are taken into account in arriving at the operating profit.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current 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 temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Trumeter Technologies Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

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.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

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
Furniture, fittings and equipment	25% straight line

Intangible assets

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is possible that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Development Costs	5 years straight line

Trumeter Technologies Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

Impairment of fixed assets

At each reporting end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any), Where is is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Intangible assets with indefinite useful lives and intangible assets note yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Trumeter Technologies Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

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.

Trumeter Technologies Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

Financial instruments

Classification
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12
‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company’s statement of financial position when the company
becomes party to the contractual provisions of the instrument.

Financial assets are classified into specified categories. The classification depends on the nature and purpose
of the financial assets and is determined at the time of recognition.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when
there is a legally 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.

Basic Financial Assets
Basic financial assets which include trade and other receivables and cash and bank balances, are initially
measured at transaction price including transaction costs are subsequently carried at amortised cost using the
effective interest method 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.

Other Financial Assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or
joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are
subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that
investments in equity instruments that are not publicly traded and whose fair values cannot be measured
reliably are measured at cost less impairment.

Classification of Financial Liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual
arrangements entered into. An equity instrument is any contract that evidences a residual interest in the
assets of the company after deducting all of its liabilities.

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies
and preference shares that are classified as debt, 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 receipts discounted at a market rate of interest.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of
business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year
or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at
transaction price and subsequently measured at amortised cost using the effective interest method.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 27 (2021 - 23).

Trumeter Technologies Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

4	Auditors' remuneration

The company has taken advantage of not disclosing auditors' remuneration in the individual financial statements as they are disclosed in the consolidated financial statements of the parent company Trumeter Group Limited.

5	Intangible assets

	Development costs £	Total £
Cost or valuation
At 1 January 2022	3,119,940	3,119,940
Additions - internally developed	876,917	876,917
At 31 December 2022	3,996,857	3,996,857
Amortisation
At 1 January 2022	2,166,696	2,166,696
Amortisation charge	608,427	608,427
At 31 December 2022	2,775,123	2,775,123
Carrying amount
At 31 December 2022	1,221,734	1,221,734
At 31 December 2021	953,244	953,244

Intangible assets as at 31 December 2022 represent development costs capitalised during the year. These costs have been capitalised as the directors are satisfied as to the technical, commercial and financial viability of the individual projects to which they relate. Capitalised development costs are being amortised over a 5 year period based on expected product life.

Trumeter Technologies Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

6	Tangible assets

	Furniture, fittings and equipment £	Plant and machinery £	Total £
Cost or valuation
At 1 January 2022	73,490	25,940	99,430
Additions	9,794	-	9,794
Disposals	(64,351)	(7,486)	(71,837)
At 31 December 2022	18,933	18,454	37,387
Depreciation
At 1 January 2022	70,976	23,821	94,797
Charge for the year	4,001	1,374	5,375
Eliminated on disposal	(64,352)	(7,486)	(71,838)
At 31 December 2022	10,625	17,709	28,334
Carrying amount
At 31 December 2022	8,308	745	9,053
At 31 December 2021	2,515	2,119	4,634

Stocks

	2022 £	2021 £
Stocks	302,805	222,992

Debtors

Current	Note	2022 £	2021 £
Trade debtors		224,366	240,270
Amounts owed by group undertakings		1,218,918	1,049,019
Other debtors		4,651	7,539
Deferred tax asset	11	351,262	92,948
		1,799,197	1,389,776

Trumeter Technologies Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

Creditors

Creditors: amounts falling due within one year

	Note	2022 £	2021 £
Due within one year
Loans and borrowings	10	317,081	284,641
Trade creditors		53,817	3,185
Taxation and social security		77,031	85,273
Accruals and deferred income		484,808	430,685
Other creditors		30,335	48,600
		963,072	852,384

Creditors: amounts falling due after more than one year

	Note	2022 £	2021 £
Due after one year
Loans and borrowings	10	231,667	290,170

Trumeter Technologies Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

10	Loans and borrowings

	2022 £	2021 £
Non-current loans and borrowings
Bank borrowings	231,667	290,000
Other borrowings	-	170
	231,667	290,170

	2022 £	2021 £
Current loans and borrowings
Bank borrowings	70,000	60,000
Bank overdrafts	148,320	76,284
Other borrowings	98,761	148,357
	317,081	284,641

Included within Bank overdrafts is £148,320 (2021: £76,284) which is secured by a fixed and floating charge dated 20 March 2012 and 3 June 2017 over all the property and undertakings of the company.

Included within Other borrowings is £98,143 (2021: £140,880) in relation to a invoice discount facility which is secured by a fixed and floating charge dated 22 December 2016 and 1 March 2019 over all the property or undertakings of the company.

Trumeter Technologies Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

11	Deferred taxation

Deferred tax assets and liabilities are offset were the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes at the relevant rates of 2022: 25% 2021: 19%:

2022	Assets 2022 £
Accelerated capital allowances	(2,263)
Tax losses	352,037
Other timing differences	1,488
Deferred tax asset	351,262

2021	Assets 2021 £
Accelerated capital allowances	(880)
Tax losses	92,933
Other timing differences	895
Deferred tax asset	92,948

12	Financial commitments, guarantees and contingent liabilities

The company is party to certain loan facilities with its fellow group undertaking. Trumeter Company Inc. that are secured on the assets of the company (Trumeter Technologies Limited). The maximum liability that Trumeter Company Inc. had in respect of this loan facility at 31 December 2022 was £1,199,698 $1,451,274 (2021: £808,521 $1,092,474)

13	Obligations under leases and hire purchase contracts

Operating leases

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

	2022 £	2021 £
Not later than one year	74,930	54,561
Later than one year and not later than five years	135,707	50,559
	210,637	105,120

Trumeter Technologies Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

14	Related party transactions

The company has taken advantage of the exemption from disclosure of intra group transactions in accordance with FRS102 paragraph 33.1A. These accounts are consolidated within the group financial statements prepared by Trumeter Group Limited.

Energize Capital Limited also has a fixed charge over the company during the year.

During the year the Directors and the company's that they own made charges of £353,278 (2021: £369,736) to the company in respect of management services and corporate finance services provided.

Transactions with directors

At the balance sheet date an amount of £Nil (2021: £27,199) was outstanding and is included within creditors < 1 year.

15	Parent and ultimate parent undertaking

The company's immediate parent and ultimate parent undertaking is Trumeter Group Limited, incorporated in England & Wales. The directors are considered to be the ultimate controlling party by virtue of their shareholding in the company.

The parent of the largest group in which these financial statements are consolidated is Trumeter Group Limited, incorporated in England & Wales.

The address of Trumeter Group Limited is:
Pilot Mill
Alfred Street
Bury
Lancashire
England
BL9 9JR

16	Prior period adjustment

The accounts have been restated to correct the cash at bank and in hand value, Bank overdraft value and Other borrowings value which was not correctly disclosed in the 31 December 2021 accounts. The change has not resulted in a change in profits or net assets at 31 December 2021:

Summary of prior period accounting impact:

Increase in cash at bank and in hand £217,164
Increase in creditors - Current loans and borrowings - Bank overdraft £76,284
Increase in creditors - Current loans and borrowings - Other borrowings £140,880

17	Exceptional items

Included within exceptional items is £116,430 (2021: £Nil) in relation to a one off bonus paid to the employees. The directors consider this cost to be exceptional and therefore have disclosed separately as this is not directly comparable to the previous year