Alphr Technology Limited - Limited company accounts 16.3

REGISTERED NUMBER: 02967759 (England and Wales)

Report of the Directors and

Financial Statements for the Period 1 March 2016 to 31 December 2016

for

Alphr Technology Limited

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

4

Statement of Comprehensive Income

6

Balance Sheet

7

Statement of Changes in Equity

8

Notes to the Financial Statements

9

DIRECTORS:

K S Basra

P Stolpe

M O'Brien

Mrs C Fennessy

SECRETARY:

K S Basra

REGISTERED OFFICE:

Unit 1b

Focus 4

Fourth Avenue

Letchworth Garden City

Hertfordshire

SG6 2TU

REGISTERED NUMBER:

02967759 (England and Wales)

AUDITORS:

George Hay Partnership LLP

Chartered Accountants

and Statutory Auditor

Unit 1B

Focus 4

Fourth Avenue

Letchworth

Hertfordshire

SG6 2TU

The directors present their report with the financial statements of the company for the period 1 March 2016 to 31 December 2016.

DIVIDENDS

No dividends will be distributed for the period ended 31 December 2016.

DIRECTORS

K S Basra has held office during the whole of the period from 1 March 2016 to the date of this report.

Other changes in directors holding office are as follows:

I H Smith - resigned 20 September 2016

P Stolpe - appointed 20 September 2016

M O'Brien - appointed 20 September 2016

Mrs C Fennessy - appointed 20 September 2016

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors and the financial statements in

accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law

the directors have elected to prepare the financial statements in accordance with United Kingdom Generally

Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company

law the directors must not approve the financial statements unless they are satisfied that they give a true and

fair view of the state of affairs of the company and of the profit or loss of the company for that period. In

preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain

the company's transactions and disclose with reasonable accuracy at any time the financial position of the

company and enable them to ensure that the financial statements comply with the Companies Act 2006. They

are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for

the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the

Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps

that he or she ought to have taken as a director in order to make himself or herself aware of any relevant

audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, George Hay Partnership LLP, will be proposed for re-appointment at the forthcoming Annual

General Meeting.

ON BEHALF OF THE BOARD:

K S Basra - Director

27 April 2017

We have audited the financial statements of Alphr Technology Limited for the period ended

31 December 2016 on pages six to eighteen. The financial reporting framework that has been applied in their

preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally

Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting

Standard applicable in the UK and Republic of Ireland'.

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.

Respective responsibilities of directors and auditors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient

to give reasonable assurance that the financial statements are free from material misstatement, whether

caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to

the company's circumstances and have been consistently applied and adequately disclosed; the

reasonableness of significant accounting estimates made by the directors; and the overall presentation of the

financial statements. In addition, we read all the financial and non-financial information in the Report of the

Directors to identify material inconsistencies with the audited financial statements and to identify any

information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge

acquired by us in the course of performing the audit. If we become aware of any apparent material

misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2016 and of its profit for the period 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.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit, the information given in the Report of

the Directors for the financial year for which the financial statements are prepared is consistent with the

financial statements, and has been prepared in accordance with applicable legal requirements. In the light of

the knowledge and understanding of the company and its environment, we have not identified any material

misstatements in the Report of the Directors.

Matters on which we are required to report by exception

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

-	the 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.

Martin Williams ACA (Senior Statutory Auditor)

for and on behalf of George Hay Partnership LLP

Chartered Accountants

and Statutory Auditor

Unit 1B

Focus 4

Fourth Avenue

Letchworth

Hertfordshire

SG6 2TU

22 May 2017

TURNOVER

3

6,420,860

5,954,882

Cost of sales

4,560,357

4,041,924

GROSS PROFIT

1,860,503

1,912,958

Administrative expenses

1,034,739

1,354,503

825,764

558,455

Other operating income

2,500

3,050

OPERATING PROFIT

5

828,264

561,505

Interest receivable and similar income

388

457

828,652

561,962

Interest payable and similar expenses

6

2,086

2,375

PROFIT BEFORE TAXATION

826,566

559,587

Tax on profit

7

162,148

121,420

PROFIT FOR THE FINANCIAL PERIOD

664,418

438,167

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

664,418

438,167

FIXED ASSETS

Tangible assets

9

87,527

106,072

Investments

10

111,258

33

198,785

106,105

CURRENT ASSETS

Stocks

11

138,264

122,795

Debtors

12

2,910,657

2,246,963

Cash at bank and in hand

357,786

746,648

3,406,707

3,116,406

CREDITORS

Amounts falling due within one year

13

1,671,195

1,942,348

NET CURRENT ASSETS

1,735,512

1,174,058

TOTAL ASSETS LESS CURRENT LIABILITIES

1,934,297

1,280,163

CREDITORS

Amounts falling due after more than one year

14

(32,507

)

(42,791

)

PROVISIONS FOR LIABILITIES

19

(15,103

)

(15,103

)

NET ASSETS

1,886,687

1,222,269

CAPITAL AND RESERVES

Called up share capital

20

100

100

Retained earnings

21

1,886,587

1,222,169

SHAREHOLDERS' FUNDS

1,886,687

1,222,269

The financial statements were approved by the Board of Directors on 27 April 2017 and were signed on its behalf by:

K S Basra - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 March 2015

-

1,084,002

1,084,002

Changes in equity

Issue of share capital

100

-

100

Dividends

-

(300,000

)

(300,000

)

Total comprehensive income

-

438,167

438,167

Balance at 29 February 2016

100

1,222,169

1,222,269

Changes in equity

Total comprehensive income

-

664,418

664,418

Balance at 31 December 2016

100

1,886,587

1,886,687

1.	STATUTORY INFORMATION

Alphr Technology Limited is a private company, limited by shares, registered in England and Wales.

The company's registered number and registered address can be found on the Company Information

page. The company's place of business is Amor Way, Letchworth Garden City, SG6 1UG.

The Financial Statements are presented for a 10 month period to 31 December 2016, and therefore

means that the comparatives are not completely comparable. The change in the year is to bring the

year end in line with the ultimate parent.

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.

Financial reporting standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial

statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and

Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of Section 3 Financial Statement Presentation paragraph 3.17(d);

•

the requirement of Section 33 Related Party Disclosures paragraph 33.7.

Preparation of consolidated financial statements

The financial statements contain information about Alphr Technology Limited as an individual company

and do not contain consolidated financial information as the parent of a group. The company has taken

the option under Section 398 of the Companies Act 2006 not to prepare consolidated financial

statements.

Significant judgements and estimates

Valuation of Work in Progress

Work in progress is calculated based on the level of completion of contracts at the period end. The

completion level is determined by the Director based on available information about each works order,

whilst these are calculated as accurately as possible this does involve a certain level of estimation.

Turnover

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade

discounts.

The policy adopted for the recognition of turnover in relation to contracts is that when the outcome of a

contract can be estimated reliably, contract costs and turnover are recognised by reference to the

stage of completion at the balance sheet date.

Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the

period in which they are incurred and contract turnover is recognised to the extent of costs incurred

that it is probable will be recoverable.

When it is probable that contract costs will exceed the total contract turnover, the expected loss is

recognised as an expense immediately, with a corresponding provision.

Tangible fixed assets

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

Plant and machinery

-

33% on reducing balance, 25% on reducing balance and 10% on reducing balance

Investments in subsidiaries

Investment in subsidiary undertakings are recognised at cost less impairment.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for

obsolete and slow moving items.

Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as

reported in the statement of comprehensive income because of items of income or expense that are

taxable or deductible in other years and items that are never taxable or deductible. The Company's

liability for current tax is calculated using tax rates that have been enacted or substantively enacted by

the end of the reporting period.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at

the balance sheet date.

Deferred tax assets are recognised to the extent that it is probable that they will be recovered against

future taxable profits.

Deferred tax is calculated using the tax rates and laws that have been enacted or substantively

enacted by the reporting date that are expected to apply to the reversal of the timing differences.

Current or deferred tax for the year is recognised in profit or loss, except when they relate to items that

are recognised in other comprehensive income or directly in equity, in which case, the current and

deferred tax is also recognised in other comprehensive income or directly in equity respectively.

Foreign currencies

The financial statements are presented in Sterling (GBP), which is also the functional currency of the

company.

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 company operates a defined contribution pension scheme. Contributions payable to the

company's pension scheme are charged to profit or loss in the period to which they relate.

Financial instruments

Debtors

Short term debtors are measured at transaction price (which is usually the invoice price), less any

impairment losses for bad and doubtful debts.

Creditors

Short term trade creditors are measured at the transaction price. Other financial liabilities, including

bank loans, are measured initially at fair value, net of transaction costs, and are measured

subsequently at amortised cost using the effective interest method unless the effect of discounting

would be immaterial, in which case these are stated at cost.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

Period

1.3.16

to

Year Ended

31.12.16

29.2.16

£

£

Sale of goods

6,420,860

5,954,882

6,420,860

5,954,882

4.	EMPLOYEES AND DIRECTORS

Period

1.3.16

to

Year Ended

31.12.16

29.2.16

£

£

Wages and salaries

1,905,478

1,908,656

Social security costs

5,606

-

Other pension costs

33,713

208,243

1,944,797

2,116,899

The average monthly number of employees during the period was as follows:

Period

1.3.16

to

Year Ended

31.12.16

29.2.16

Management and Administration

8

9

Sales and Production

47

42

55

51

Period

1.3.16

to

Year Ended

31.12.16

29.2.16

£

£

Directors' remuneration

51,393

16,102

Directors' pension contributions to money purchase schemes

5,150

189,979

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

Money purchase schemes

1

2

5.	OPERATING PROFIT

The operating profit is stated after charging:

Period

1.3.16

to

Year Ended

31.12.16

29.2.16

£

£

Hire of plant and machinery

1,646

1,933

Depreciation - owned assets

22,340

31,454

Auditors remuneration

4,000

4,000

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

1.3.16

to

Year Ended

31.12.16

29.2.16

£

£

Hire purchase

2,086

2,375

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the period was as follows:

Period

1.3.16

to

Year Ended

31.12.16

29.2.16

£

£

Current tax:

UK corporation tax

162,148

106,317

Deferred tax

-

15,103

Tax on profit

162,148

121,420

Reconciliation of total tax charge included in profit and loss

The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The

difference is explained below:

Period

1.3.16

to

Year Ended

31.12.16

29.2.16

£

£

Profit before tax

826,566

559,587

Profit multiplied by the standard rate of corporation tax in the UK of 20% (2016 - 20.085%)

165,313

112,393

Effects of:

Capital allowances in excess of depreciation

-

(1,065

)

Depreciation in excess of capital allowances

2,786

-

Research and Development enhanced deduction

(5,951

)

(5,011

)

Deferred Tax on accelerated capital allowances

-

15,103

Total tax charge

162,148

121,420

During the year the main rate of corporation tax was unchanged at 20%. During the 2015 Summer

Budget and the Spring Budget 2016 the Chancellor of the Exchequer announced that there would be

tax rate changes which will have an effect on the company's future tax position.These changes will

reduce the standard rate of UK corporation tax from 20% to 19% from 1 April 2017, and then a further

reduction to 17% from 1 April 2020.

Deferred tax relates to timing differences resulting from accelerated capital allowances, this has been

calculated at the rates at which it is expected to unwind.

8.

DIVIDENDS

Period

1.3.16

to

Year Ended

31.12.16

29.2.16

£

£

Interim

-

300,000

9.	TANGIBLE FIXED ASSETS

Plant and

machinery

£

COST

At 1 March 2016

386,288

Additions

3,795

At 31 December 2016

390,083

DEPRECIATION

At 1 March 2016

280,216

Charge for period

22,340

At 31 December 2016

302,556

NET BOOK VALUE

At 31 December 2016

87,527

At 29 February 2016

106,072

10.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 March 2016

33

Additions

111,225

At 31 December 2016

111,258

NET BOOK VALUE

At 31 December 2016

111,258

At 29 February 2016

33

The company's investments at the Balance Sheet date in the share capital of companies include the

following:

Alphr Technology Europe

Registered office:

Nature of business: Manufacture of high tech. calibration systems

%

Class of shares:

holding

Ordinary

95.00

2016

31.12.15

£

£

Aggregate capital and reserves

545,937

185,544

Profit for the year

355,197

42,206

During the year Alphr Technology Limited increased its holding in Alphr Technology Europe by 5%, to

hold 200 of the 210 Shares.

11.

STOCKS

2016

2016

£

£

Stocks

138,264

122,795

12.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2016

2016

£

£

Trade debtors

1,829,937

1,795,146

Amounts due under contracts

830,811

333,891

Sundry Debtors and Prepayments

19,441

117,926

Amounts Due from Group Undertakings

230,468

-

2,910,657

2,246,963

13.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2016

2016

£

£

Bank loans and overdrafts (see note 15)

36,055

-

Hire purchase contracts (see note 16)

12,291

11,754

Trade creditors

468,890

484,986

Amounts owed to group undertakings

-

172,175

Tax

82,148

106,317

Warranty Provision

71,503

65,331

Sundry Creditors and Accruals

241,446

96,568

Deferred Income

713,985

855,373

Taxation & Social Security

44,877

149,844

1,671,195

1,942,348

14.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2016

2016

£

£

Hire purchase contracts (see note 16)

32,507

42,791

15.

LOANS

An analysis of the maturity of loans is given below:

2016

2016

£

£

Amounts falling due within one year or on demand:

Bank overdrafts

36,055

-