Wickman Coventry Limited - Limited company accounts 18.1.1

REGISTERED NUMBER: 03134891 (England and Wales)

Strategic report, report of the directors and

Financial statements

For the period

1 January 2017 to 30 September 2017

For

WICKMAN COVENTRY LIMITED

Page

Company information

1

Strategic report

2

Report of the directors

4

Independent auditors' report

6

Income statement

9

Other comprehensive income

10

Balance sheet

11

Statement of changes in equity

12

Cash flow statement

13

Notes to the financial statements

14

Directors:

C P Barrett

O A Coyne

Secretary:

O A Coyne

Registered office:

Automatic House Discovery Way

Leofric Business Park

Binley

Coventry

West Midlands

CV3 2TD

Registered number:

03134891 (England and Wales)

Senior statutory auditor:

Mr Malcolm John Dewhurst FCCA

Independent auditors:

Gane Jackson Scott LLP

Chartered Certified Accountants

and Statutory Auditor

Second Floor, Kestrel House

Falconry Court

Bakers Lane

Epping

Essex

CM16 5BD

Bankers:

HSBC Bank Plc

Market Place

Willenhall

West Midlands

WV13 2AF

The directors present their strategic report for the period 1 January 2017 to 30 September 2017.

In order to align its accounting reference date with that of the parent company, the company shortened its

accounting period to the 9 months ended 30 September 2017. The comparative amounts are in respect of the

twelve months to 31 December 2016.

Review of business

The principal activity of the company continues to be the sales and related design, development & build of

Wickman Multi Spindle machine tools serving a diverse range of industries in many countries around the world. In

addition a growing emphasis has been put upon the sales of products manufactured within the Tajmac group with

these being Mori-Say Multi Spindle Machines & Cucchi BLT bar loaders.

The supply of spare parts and the provision of service continue to make a significant contribution to the companies

revenue.

Results and performance

The results for the year on pages 9 to 28 demonstrate steady trading for the company with turnover of £2.6M for the

9 months (2016 £4.6M over 12 months). The company is showing a loss for the period of £2,573 before tax (2016

£24,871 profit]. The profit and loss reserve has increased from £250,633 in 2016 to £256,763. The company's

performance broadly tracked the proposed budget.

Business environment

The company continues to operate and compete in a Niche market with operations in the UK, Europe, USA, Brazil

& China. The directors are confident that the company will be able to take advantage of the opportunities in this mix

of established and developing markets. China is viewed by the directors as having a huge potential for growth of

the business and Wickman are well positioned in this area through its JV company European Turning Technologies

(ETT) based in Kunshan in the Jiangsu Province of China.

Business review

- Market Development: No new geographical areas were opened during 2017. The company has concentrated on

maximising potential in its main and established markets namely , UK, Europe, North America, India , China with its

JV company ETT and Brazil.

- Product Development: 2017 has built on the investments made in previous years into new product development,

coming to fruition with the deliveries of new higher tech & higher specification machines having been made and

machines signed off by the customers. The newly developed products have enabled the company to open up new

market opportunities allowing Wickman to compete in a more rewarding sector of the market.

- Process improvements: a project has been followed during 2106 and 2017 to reduce the number of hours

required to build a machine. An ultimate target of building a standard Wickman ACW model in a maximum of 1000

hours has been set and is being worked towards. The initiative has seen around 20% of hours saved on each

machine build and the implementation team are confident that the target of 1000 hours will be achieved over the

next year. As well as reducing production hours the project has helped to raise build continuity and quality.

Key performance indicators

As part of Wickmans strategy KPI's are tracked & reviewed at regular monthly & quarterly management and board

meetings. These meetings involve the senior management team, the directors and the share holders of the

business.

- Sales Performance - sales are reviewed monthly to assess performance against budget and to ensure all

opportunities are pursued

- Gross Margin Percentage - Gross Margins by project and product are constantly reviewed to indentify areas

where improvements can be made.

- Cash Flow - Cash flow is a key measure of the companies financial performance and is closely monitored

The business is operated in conjunction with a budget and is monitored against the planned budget.

Principal risks and uncertainties

The management of the business operations and the execution of the companies strategy in both terms of short

term budgets and long term goals are subject to a number of risks. Some of the emerging markets in which the

company operates are not as well developed as modern economies. This can leave the company open to potential

bad debts. The directors of the company approach this by exercising due diligence , gaining good working

relationships with customers and through agreeing terms of business which reduce the risk.

On behalf of the board:

O A Coyne - Director

28 June 2018

The directors present their report with the financial statements of the company for the period 1 January 2017 to 30 September 2017.

The items required by schedule 7 to Statutory Instrument 2008/410 have been included within the strategic report

ion pages 2 to 3.

Dividends

No dividends will be distributed for the period ended 30 September 2017.

Directors

The directors shown below have held office during the whole of the period from 1 January 2017 to the date of this

report.

C P Barrett

O A Coyne

Other changes in directors holding office are as follows:

R Dodd - resigned 27 February 2017

N P Forrest - resigned 19 May 2017

Strategic report

The strategic report as required by the Companies Act 2006 is included on pages 1 and 2 of the financial

statements.

Statement of directors' responsibilities

The directors are responsible for preparing the 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). 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;

-	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 ought to have taken as a director in order to make himself aware of any relevant audit information and to

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

On behalf of the board:

O A Coyne - Director

28 June 2018

Opinion

We have audited the financial statements of Wickman Coventry Limited (the 'company') for the period ended

30 September 2017 which comprise the Income statement, Other comprehensive income, Balance sheet,

Statement of changes in equity, 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).

This report is made solely to the company's shareholders, 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 shareholders

those matters we are required to state to them in an Auditors' report 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

shareholders as a body, for our audit work, for this report, or for the opinions we have formed.

In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion section of

our report, the financial statements:

- give a true and fair view of the state of the company's affairs as at 30 September 2017 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.

Basis for qualified opinion

The balance sheet includes stock with a carrying amount of £3,167,389. On 14 November 2017, the company

shortened its accounting period from 31 December to 30 September 2017. As a result, we were unable to observe

the counting of the physical stock as at the balance sheet date. The nature of the company's records are such that

we were unable to obtain sufficient appropriate audit evidence regarding the carrying amount of stock as at the

balance sheet date by using other audit procedures.

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 Auditor’s Responsibilities for the Audit of

the Financial Statements section of our report. We are independent of the company 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 qualified opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report

to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the

Strategic report and the Report of the directors, but does not include the financial statements and our Auditors'

report thereon.

Our opinion on the financial statements does not cover the other information and 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, 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.

Opinion 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 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 Strategic report and the Report of the directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the

audit, we have not identified material misstatements in the 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, 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.

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 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 company or to cease operations, or have no realistic

alternative but to do so.

Our 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 an Auditors' report 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial

Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors'

report.

Mr Malcolm John Dewhurst FCCA (Senior Statutory Auditor)

for and on behalf of Gane Jackson Scott LLP

Chartered Certified Accountants

and Statutory Auditor

Second Floor, Kestrel House

Falconry Court

Bakers Lane

Epping

Essex

CM16 5BD

28 June 2018

Turnover

3

2,561,831

4,624,021

Cost of sales

1,671,984

3,455,525

Gross profit

889,847

1,168,496

Administrative expenses

991,903

1,305,255

(102,056

)

(136,759

)

Other operating income

121,000

-

Operating profit/(loss)

5

18,944

(136,759

)

Exceptional bad debt

6

-

(757,929

)

Exceptional loan waiver

6

-

948,857

18,944

54,169

Interest receivable and similar income

136

104

19,080

54,273

Amounts written off investments

7

-

3,756

19,080

50,517

Interest payable and similar expenses

8

21,653

25,646

(Loss)/profit before taxation

(2,573

)

24,871

Tax on (loss)/profit

9

(8,703

)

(53,964

)

Profit for the financial period

6,130

78,835

Profit for the period

6,130

78,835

Other comprehensive income

Employee share scheme A share issue

-

(21,000

)

Ordinary B share issue

-

(53,009

)

Income tax relating to components of other comprehensive income

-

-

Other comprehensive income For the period, net of income tax

-

(74,009

)

Total comprehensive income for the period

6,130

4,826

Fixed assets

Intangible assets

10

3,365

6,438

Tangible assets

11

286,406

265,715

Investments

12

524,462

223,300

814,233

495,453

Current assets

Stocks

13

3,167,389

2,729,106

Debtors

14

2,725,898

2,616,947

Cash at bank and in hand

358,833

263,797

6,252,120

5,609,850

Creditors

Amounts falling due within one year

15

4,766,311

4,313,470

Net current assets

1,485,809

1,296,380

Total assets less current liabilities

2,300,042

1,791,833

Creditors

Amounts falling due after more than one year

16

(544,684

)

(46,950

)

Provisions for liabilities

20

(4,345

)

-

Net assets

1,751,013

1,744,883

Capital and reserves

Called up share capital

21

1,387,729

1,387,729

Share premium

22

106,521

106,521

Retained earnings

22

256,763

250,633

Shareholders' funds

1,751,013

1,744,883

The financial statements were approved by the Board of Directors on 28 June 2018 and were signed on its behalf by:

O A Coyne - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2016

1,173,410

245,807

106,521

1,525,738

Changes in equity

Issue of share capital

214,319

-

-

214,319

Total comprehensive income

-

4,826

-

4,826

Balance at 31 December 2016

1,387,729

250,633

106,521

1,744,883

Changes in equity

Total comprehensive income

-

6,130

-

6,130

Balance at 30 September 2017

1,387,729

256,763

106,521

1,751,013

Cash flows from operating activities

Cash generated from operations

29

362,916

97,844

Interest paid

(21,109

)

(25,646

)

Interest element of hire purchase payments paid

(544

)

-

Tax paid

45,492

(35,792

)

Net cash from operating activities

386,755

36,406

Cash flows from investing activities

Purchase of tangible fixed assets

(13,117

)

(861

)

Purchase of fixed asset investments

(301,162

)

(24,233

)

Interest received

136

104

Net cash from investing activities

(314,143

)

(24,990

)

Cash flows from financing activities

Loan repayments in year

(9,161

)

(81,216

)

Capital repayments in year

(1,987

)

-

Net cash from financing activities

(11,148

)

(81,216

)

Increase/(decrease) in cash and cash equivalents

61,464

(69,800

)

Cash and cash equivalents at beginning of period

30

(360,444

)

(290,644

)

Cash and cash equivalents at end of period

30

(298,980

)

(360,444

)

1.	Statutory information

Wickman Coventry Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information page.

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

In order to align its accounting reference date with that of the parent company, the company shortened its

accounting period to the 9 months ended 30 September 2017. The comparative amounts are in respect of

the twelve months to 31 December 2016.

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" (FRS 102) and the Companies

Act 2006. The financial statements have been prepared under the historical cost convention and in

compliance with FRS 102. The principal accounting policies applied in the preparation of these financial

statements are set out below.

Preparation of consolidated financial statements

The financial statements contain information about Wickman Coventry Limited as an individual company and

do not contain consolidated financial information as the parent of a group. The company is exempt under

Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements

as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements

of its parent, TAJMAC MTM S.p.a., Via Gran Sasso, 15, 20092 Cinisello Balsamo, Milan, Italy.

Turnover

Turnover comprises revenue recognised by the company in respect of sales of goods and services provided

under contracts, exclusive of value added tax and trade discounts. Turnover is recognised in respect of

goods when they are physically dispatched to the customer. Turnover is recognised in respect of services to

the extent that there is a right to consideration and is recorded at the value of the consideration due. Where

a contract has only been partially completed at the balance sheet date, turnover represents the value of the

service provided to date based on the proportion of the total expected consideration at completion. Where

payments are received from customers in advance of services provided, the amounts are recorded as

payments on account and included as part of Creditors due within one year.

Goodwill

Goodwill represents the excess of consideration paid for the acquisition of a business in 1996 over the fair

value of the identifiable assets and liabilities. Goodwill is amortised to the profit and loss account on a

straight line basis over its estimated life of twenty years. Useful life is determined by reference to the period

over which the values of the underlying business are expected to exceed the values of the net assets.

Goodwill is reviewed for impairment at the end of the first financial year following acquisition and in other

periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Patents

Patents are valued at cost less accumulated amortisation. Amortisation is calculated to write off cost in equal

annual instalments from the patent filing date to its expiry date.

Tangible fixed assets

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

Freehold property

-

2.5% on cost

Plant and machinery

-

10% on cost

Fixtures and fittings

-

10% and 20% on reducing balance

Motor vehicles

-

25% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stock is valued at the lower of cost and net realisable value. Cost of spares stock is determined on a first in

first out basis. Cost of machine stock includes purchase cost together with all direct materials and direct

labour costs. Provision is made for slow moving, obsolete or damaged stock where the net realisable value

is less than cost. Net realisable value represents estimated selling price less costs to complete and sell.

Debtors

Trade and other debtors including amounts owed by group undertakings are recognised initially at

transaction price unless a financing arrangement exists in which case they are measured at the present

value of future receipts discounted at a market rate.Subsequently these are measured at amortised cost less

any provision for impairment.

Cash and cash equivalents

Cash and cash equivalents include cash on hand and on demand deposits.

Trade and other creditors

Trade and other creditors are classified as current liabilities if payment is due within one year or less. Trade

creditors are recognised initially at the transaction price and subsequently measured at amortised cost using

the effective interest method.

Loans

Loans are recognised originally at the transaction price and subsequently at amortised cost. Interest is

recognised on the basis of the effective interest method and is included within finance costs. Loans are

classified as current liabilities unless the company has a right to defer settlement of the liability for a period

exceeding 12 months after the reporting date.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement,

except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted

or substantively enacted by the balance sheet date.

Deferred tax

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

balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different

from those in which they are recognised in financial statements. Deferred tax is measured using tax rates

and laws that have been enacted or substantively enacted by the period end and that are expected to apply

to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that

they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of

transaction. The resulting monetary assets and liabilities 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 dealt with in the profit and loss account.

Hire purchase and leasing commitments

Assets purchased under hire purchase contracts and finance leases are capitalised as tangible fixed assets.

Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful

lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases

are those where substantially all of the benefits and risks of ownership are assumed by the company.

Obligations under such agreements are included in creditors net of the finance charge allocated to future

periods. The finance element of the rental payment is charged to the profit and loss account so as to

produce a constant periodic rate of charge on the net obligations outstanding in each period. Rentals payable

under operating leases where substantially all of the benefits and risks of ownership remain with the lessor

are charged to profit and loss account as incurred.

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.

Investments

Investments in subsidiary undertakings and associates are stated at cost less provision for permanent

diminution in value.

3.

Turnover

The turnover and loss (2016 - 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

1/1/17

to

Year Ended

30/9/17

31/12/16

£

£

Sales of spares

1,177,405

1,694,824

Sales of machines

957,451

2,496,064

Service of machines

134,627

204,885

Miscellaneous sales

292,348

228,248

2,561,831

4,624,021

An analysis of turnover by geographical market is given below:

Period

1/1/17

to

Year Ended

30/9/17

31/12/16

£

£

United Kingdom

384,275

1,165,454

Europe

1,383,389

858,473

Rest of the world

794,167

2,600,094

2,561,831

4,624,021

4.	Employees and directors

Period

1/1/17

to

Year Ended

30/9/17

31/12/16

£

£

Wages and salaries

952,585

1,367,507

Social security costs

90,032

132,458

Other pension costs

22,902

37,229

1,065,519

1,537,194