REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 December 2021 |
for |
Atlas Cranes UK Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 December 2021 |
for |
Atlas Cranes UK Limited |
Atlas Cranes UK Limited (Registered number: SC038800) |
Contents of the Financial Statements |
for the Year Ended 31 December 2021 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Statement of Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Notes to the Financial Statements | 12 |
Atlas Cranes UK Limited |
Company Information |
for the Year Ended 31 December 2021 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants & |
Statutory Auditors |
Sterling House |
1 Sheepscar Court |
Meanwood Road |
Leeds |
West Yorkshire |
LS7 2BB |
BANKERS: |
8 Canada Square |
London |
E14 5HQ |
Atlas Cranes UK Limited (Registered number: SC038800) |
Strategic Report |
for the Year Ended 31 December 2021 |
The directors present their strategic report for the year ended 31 December 2021. |
The company's principal activity during the year was the distribution, including parts and servicing, of hydraulic machinery. |
REVIEW OF BUSINESS AND FUTURE DEVELOPMENTS |
Turnover in 2021 of £18,851,000 was higher than 2020 turnover of £13,221,000 mainly due to the impact of Covid-19 in 2020 particularly as the business was forced to close for over 2 months to all but essential business during National Lockdown in 2020. The company has continued with a strategy of cost reduction to improve profitability and to keep sales prices as low as possible. |
The company made an operating profit for the financial year of £1,316,000 compared to a profit of £718,000 in 2020. The increase in profit from the prior year is entirely due to the lower sales in 2020 due to Covid-19. The prior year included the sale of the business property to another group company following a restructuring of the business resulting in a profit from sale in 2020 of £982,000. Substantial reserves are also held by the company and were £21,802,000 at the end of 2021. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks facing the industry is the uncertainty surrounding the economy due to price increases and the shortage of materials over some areas. Trading so far in 2022 has been good with increased sales and excellent orders intake. We are managing the price increase risk by managing costs and looking at alternative suppliers where possible. We are committed to supporting our employees, customers and business partners in a safe manner during this time. |
We forecast that the business will make a profit and positive cashflow for the 2022 year. |
KEY PERFORMANCE INDICATORS |
Key Performance Indicators (KPI's) in this business are measured at these functional level |
o Financial performance - this is compared to forecast and prior years |
o Customer satisfaction - measured by customer feedback |
o Quality assurance - measured by machine performance and first time fixes |
Financial performance is measured by turnover and operating profit. Turnover was higher in 2021 compared to 2020. This is due to Covid19 in 2020 and it is expected to increase in 2022. Operating profit was higher in 2021 than 2020 entirely due to higher margins on the higher sales. |
ON BEHALF OF THE BOARD: |
Atlas Cranes UK Limited (Registered number: SC038800) |
Report of the Directors |
for the Year Ended 31 December 2021 |
The directors present their report with the financial statements of the company for the year ended 31 December 2021. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2021. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report. |
FINANCIAL RISK MANAGEMENT |
The company's operations expose it to a variety of financial risks that include the effects of changes in debt market prices, credit risk, liquidity risk and interest rate risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of cash balances available versus future spend. |
The policies set by the board of directors are implemented by the company's finance department. The department has a policy and procedures manual that sets out specific guidelines to manage interest rate risk, credit risk and circumstances where it would be appropriate to use financial instruments to manage these. |
Price risk |
The company is exposed to commodity price risk as a result of its operations. However, given the size of the company's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature. |
Credit risk |
Credit risk arises from cash and cash equivalents, and deposits with banks and financial institutions, as well as credit exposures to wholesale and retail customers, including outstanding receivables and committed transactions. For banks and financial institutions, only independently rated parties with a minimum rating of 'A' are accepted. If wholesale customers are independently rated, these ratings are used. If there is no independent rating, risk control assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the board. The utilisation of credit limits is regularly monitored. The amount of exposure to any individual counterparty is subject to a limit, which is reassessed annually by the board. |
Liquidity risk |
The company actively maintains a cash balance and only loans out on short term to ensure the company has sufficient available funds for operations and planned expansions. |
Interest rate cash flow risk |
The company has interest-bearing assets. Interest-bearing assets include cash balances which earn interest at variable rate and related party loans which earn interest at fixed rate. The company does not rely on this interest for it's operations. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature. |
MATTERS COVERED IN THE STRATEGIC REPORT |
Disclosures with regards to principal activity, review of the business, future developments, principal risks and uncertainties and financial and other key performance indicators are included within the strategic report. |
Atlas Cranes UK Limited (Registered number: SC038800) |
Report of the Directors |
for the Year Ended 31 December 2021 |
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. |
AUDITORS |
Under section 487(2) of the Companies Act 2006, Haines Watts Leeds LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Atlas Cranes UK Limited |
Opinion |
We have audited the financial statements of Atlas Cranes UK Limited (the 'company') for the year ended 31 December 2021 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 company's affairs as at 31 December 2021 and of its profit 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 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 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 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 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 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. |
Report of the Independent Auditors to the Members of |
Atlas Cranes UK Limited |
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. |
Report of the Independent Auditors to the Members of |
Atlas Cranes UK 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the company through discussions with directors and other management; and from our commercial knowledge and experience of this sector |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation; |
- we assessed the extent of compliance with laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit |
- use of data analytics to review the client data for unusual trends/anomalies |
We assessed the susceptibility of the company's financial statements to misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and |
- understanding the design of the company's remuneration policies. |
To address the risk of fraud through management bias and override of controls, including the impact on revenue recognition, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 4 were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions |
- used data analytics to assist with risk based transactional testing. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosure to underlying supporting documentation; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC and relevant regulators. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Report of the Independent Auditors to the Members of |
Atlas Cranes UK Limited |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion |
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 Report of the Auditors. |
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 & |
Statutory Auditors |
Sterling House |
1 Sheepscar Court |
Meanwood Road |
Leeds |
West Yorkshire |
LS7 2BB |
Atlas Cranes UK Limited (Registered number: SC038800) |
Statement of Comprehensive Income |
for the Year Ended 31 December 2021 |
31/12/21 | 31/12/20 |
Notes | £'000 | £'000 | £'000 | £'000 |
TURNOVER | 5 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
1,077 | 1,201 |
1,316 | 474 |
Other operating income |
OPERATING PROFIT | 8 |
Profit on disposal of fixed |
assets | 9 |
1,316 | 1,700 |
Interest receivable and similar income | 10 |
PROFIT BEFORE TAXATION |
Tax on profit | 11 | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Atlas Cranes UK Limited (Registered number: SC038800) |
Balance Sheet |
31 December 2021 |
31/12/21 | 31/12/20 |
Notes | £'000 | £'000 | £'000 | £'000 |
FIXED ASSETS |
Tangible assets | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 17 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Share premium | 19 |
Other reserves | 19 |
Retained earnings | 19 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Atlas Cranes UK Limited (Registered number: SC038800) |
Statement of Changes in Equity |
for the Year Ended 31 December 2021 |
Called up |
share | Retained | Share | Other | Total |
capital | earnings | premium | reserves | equity |
£'000 | £'000 | £'000 | £'000 | £'000 |
Balance at 1 January 2020 | ( |
) |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 December 2020 | ( |
) |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 December 2021 | ( |
) |
Atlas Cranes UK Limited (Registered number: SC038800) |
Notes to the Financial Statements |
for the Year Ended 31 December 2021 |
1. | STATUTORY INFORMATION |
Atlas Cranes UK Limited is a |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information in making their assessment. Based on these assessments, given the measures that could be undertaken to mitigate the current conditions, and the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts. |
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 requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c). |
Turnover |
Turnover derives from one class of business comprising the distribution and servicing of hydraulic cranes and related parts and accessories, representing the invoiced value of goods and services supplied by the company, exclusive of value added tax and customs duty. The company imports truck mounted hydraulic cranes which are sold to customers. The company also sells parts for the cranes, services cranes in the field and carries out fitting and repair work. |
Turnover is recognised when title and risk of loss pass to the customer. |
Tangible fixed assets |
Plant and machinery | - |
Government grants |
Government grants are recognised using the accruals model. Grants relating to revenue are recognised in the income statement on a systematic basis over the period in which the company recognises the related costs for which the grants are intended to compensate. |
Atlas Cranes UK Limited (Registered number: SC038800) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
3. | ACCOUNTING POLICIES - continued |
Stocks and work in progress |
Stocks and work in progress are stated at the lower of cost and net realisable value. In general, cost is determined on a first in first out basis and includes transport and handling costs. In the case of manufactured products, cost includes all direct expenditure and an appropriate proportion of production overheads based on the normal level of activity. Where necessary, provision is made for obsolete, slow-moving and defective stocks. |
At each balance sheet date, stocks are assessed for impairment. If stock is 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. |
Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the balance sheet date. |
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Atlas Cranes UK Limited (Registered number: SC038800) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
3. | 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. |
Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
Creditors |
Short term creditors are measured at the transaction price. |
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. |
Foreign currency translation |
The company's functional and presentational currency is GBP (£). |
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. |
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. |
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account. |
Provisions for liabilities |
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. |
Provisions are charged as an expense to the profit and loss account in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. |
When payments are eventually made, they are charged to the provision carried in the balance sheet. |
Employee benefits |
Short term employee benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which they are incurred. |
Atlas Cranes UK Limited (Registered number: SC038800) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
4. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where significant judgments and estimates have been made include the warranty provision and provisions for obsolete and slow moving stock. |
5. | TURNOVER |
All turnover arose within the United Kingdom and was derived wholly from the company's principal activity. |
6. | EMPLOYEES AND DIRECTORS |
2021 | 2020 |
£'000 | £'000 |
Wages and salaries | 2,281 | 2,109 |
Social security costs | 238 | 202 |
Other pension costs | 111 | 69 |
2,630 | 2,380 |
The average number of employees during the year was 62 (2020: 57). |
7. | DIRECTORS' EMOLUMENTS |
2021 | 2020 |
£'000 | £'000 |
Directors emoluments | 277 | 256 |
Company contributions to defined contribution pension schemes | 56 | 10 |
333 | 266 |
The highest paid director received remuneration of £106,300 (2020: £115,958). |
The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £43,733 (2020: £4,119). |
8. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2021 | 2020 |
£'000 | £'000 |
Depreciation on owned assets | 227 | 200 |
Profit on disposal of fixed assets | 13 | (22 | ) |
Audit fees | 15 | 15 |
Cost of sales foreign exchange differences | 4 | 115 |
Profit on sale of property | - | (982 | ) |
9. | EXCEPTIONAL ITEMS |
31/12/21 | 31/12/20 |
£'000 | £'000 |
Profit on disposal of fixed |
assets |
Atlas Cranes UK Limited (Registered number: SC038800) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
Exceptional items in 2020 represent the profit on the disposal of the property to another group company during the year. |
10. | INTEREST RECEIVABLE AND SIMILAR INCOME |
31/12/21 | 31/12/20 |
£'000 | £'000 |
Loan interest receivable |
11. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
31/12/21 | 31/12/20 |
£'000 | £'000 |
Current tax: |
UK corporation tax |
Adjustments in respect of previous years | - | (24 | ) |
Total current tax | ( |
) |
Deferred tax |
Tax on profit | ( |
) |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31/12/21 | 31/12/20 |
£'000 | £'000 |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
Research and development tax relief | (156 | ) | (209 | ) |
Deferred tax calculation adjustments | (5 | ) | - |
Non taxable property transfer | - | (187 | ) |
Total tax charge/(credit) | 157 | (4 | ) |
Atlas Cranes UK Limited (Registered number: SC038800) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
12. | TANGIBLE FIXED ASSETS |
Plant and |
machinery |
£'000 |
COST |
At 1 January 2021 |
Additions |
Disposals | ( |
) |
At 31 December 2021 |
DEPRECIATION |
At 1 January 2021 |
Charge for year |
Eliminated on disposal | ( |
) |
At 31 December 2021 |
NET BOOK VALUE |
At 31 December 2021 |
At 31 December 2020 |
13. | STOCKS |
31/12/21 | 31/12/20 |
£'000 | £'000 |
Stocks |
Work-in-progress |
Finished goods |
14. | DEBTORS |
31/12/21 | 31/12/20 |
£'000 | £'000 |
Amounts falling due within one year: |
Trade debtors |
Tax |
Prepayments and accrued income |
Amounts falling due after more than one year: |
Other debtors |
Aggregate amounts |
Atlas Cranes UK Limited (Registered number: SC038800) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31/12/21 | 31/12/20 |
£'000 | £'000 |
Trade creditors |
Amounts owed to group undertakings |
Tax | ( |
) |
Social security and other taxes |
VAT | 497 | 523 |
Other creditors |
Accruals and deferred income |
16. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31/12/21 | 31/12/20 |
£'000 | £'000 |
Within one year |
Between one and five years |
17. | PROVISIONS FOR LIABILITIES |
31/12/21 | 31/12/20 |
£'000 | £'000 |
Deferred tax | 12 | 4 |
Other provisions | 251 | 294 |
Deferred | Other |
tax | provisions |
£'000 | £'000 |
Balance at 1 January 2021 |
Provided during year |
Utilised during year | ( |
) |
Balance at 31 December 2021 |
The provision for deferred taxation is made up as follows: |
2021 | 2020 |
£'000 | £'000 |
Accelerated capital allowances | 22 | 6 |
Deferred tax on pension | (10 | ) | (2 | ) |
12 | 4 |
The company provides for actual and anticipated warranty claims on its products. The period of the warranty can extend from 12 months to 60 months. The calculation of the provision is based on the history of the past claims and the number of products still under warranty. |
Atlas Cranes UK Limited (Registered number: SC038800) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31/12/21 | 31/12/20 |
value: | £'000 | £'000 |
Ordinary | 1 | 8,002 | 8,002 |
19. | RESERVES |
Retained | Share | Other |
earnings | premium | reserves | Totals |
£'000 | £'000 | £'000 | £'000 |
At 1 January 2021 | ( |
) | 12,236 |
Profit for the year |
At 31 December 2021 | ( |
) | 13,800 |
20. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £110,000 (2020: £69,000). Contributions totalling £53,000 (2020: £11,000) were payable to the fund at the balance sheet date. |
21. | RELATED PARTY DISCLOSURES |
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. |
2021 | 2020 |
£'000 | £'000 |
Amounts due in respect of loans to companies owned by a close family member of a director |
9,123 |
9,520 |
Interest receivable at 5% on these loans | 373 | 387 |
Interest receivable at 1.8% on these loans | 32 | - |
22. | ULTIMATE CONTROLLING PARTY |
The Company's parent undertaking is FF UK Immobilien Verwaltungs GmbH & Co. KG (registered number HRA 206764), a company incorporated in Germany. |
The ultimate parent company and controlling party is Atlas Holding GmbH (Company registration number HRA 20215), a company incorporated in Germany. |
The consolidated financial statements of the parent company will be available at Stedinger Strasse 324, 27751 Delmenhorst, Neidersachsen, Germany. |