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REGISTERED NUMBER: 02878660 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

FOR

AZBIL TELSTAR UK LIMITED

AZBIL TELSTAR UK LIMITED (REGISTERED NUMBER: 02878660)

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 8

Balance Sheet 9

Statement of Changes in Equity 10

Notes to the Financial Statements 11


AZBIL TELSTAR UK LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2021







DIRECTORS: N M Street
J H Dick



SECRETARY: N M Street



REGISTERED OFFICE: Hawthorne House Dark Lane
Birstall
Batley
West Yorkshire
WF17 9LW



REGISTERED NUMBER: 02878660 (England and Wales)



SENIOR STATUTORY AUDITOR: David Stansfield ACCA



AUDITORS: Sedulo Audit Limited
Statutory Auditors
Regency Court
62-66 Deansgate
Manchester
M3 2EN

AZBIL TELSTAR UK LIMITED (REGISTERED NUMBER: 02878660)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021


The directors present their strategic report for the year ended 31 December 2021.

REVIEW OF BUSINESS
The statement of comprehensive income is set out on page 8 and shows turnover for the year of £8,969,684, this is annual growth of over 32%, and is the fourth year in a row where decisions made have lead to growth in the business. This result is pleasing, but expected following the positive backlog from year ending 2020 and strategic decision to move to new premises in Quarter 3 of 2020.

As a result of the increase in turnover, and increase in infrastructure, the company are continue to increase the headcount of the company to satisfy the clients requirements, and continued growth.

The Operational Profit of £259,915 was also an improvement on 2020.

Market conditions are expecting companies to become more sustainable and compliant, as a result the ISO:14001 certification was obtained, and the company are looking to obtain the ISO:37301 in the coming 18 months. These decisions are important actions to ensure ATUK are considering ethical and sustainable practices.

At the year end the assured backlog and pipeline were both healthy giving the Organisation confidence that future growth is possible.

PRINCIPAL RISKS AND UNCERTAINTIES
The entire business year was carried out in a pandemic, and the fact that ATUK remained open and satisfying clients requirements can be deemed a success. As we enter 2022, we appear to be getting to the back end of the covid pandemic, but this isn't the case around the world, and so continued focus on this is required.

The main risks for the business in 2022, are shortage of material, caused by the pandemic, shipping issues and labour issues and the cost of materials increasing.

The company's foreign exchange risks are managed by hedging all foreign currency projects thereby minimising the effect of currency fluctuations which have traditionally had a negative impact on ATUK. We are further minimising this risk buy asking worldwide clients to place orders in £ Sterling.

ATUK continues to have strict debtor procedures in place for current and potential customers to keep the risk of bad debts to a minimum.

Other than factors outside the company's control the directors are not aware of any significant risk which may adversely impact on the company during the forthcoming financial year.

ON BEHALF OF THE BOARD:





N M Street - Director


8 July 2022

AZBIL TELSTAR UK LIMITED (REGISTERED NUMBER: 02878660)

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.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the design, manufacture, validation and after care of Barrier System, Containment and Aseptic equipment for the pharmaceutical and life science market.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2021.

RESEARCH AND DEVELOPMENT
Using both internal expertise and external consultants the company continually invests in research and development into new products and processes.The company will continue to invest in research and development that has a suitable return.

FUTURE DEVELOPMENTS
Future developments are considered within the Strategic Report.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report.

N M Street
J H Dick

COMPANY'S POLICY ON PAYMENT OF CREDITORS
It is company policy to agree and clearly communicate the terms of payment as part of the commercial arrangement negotiated with suppliers and then to pay according to those terms based upon the timely receipt of an accurate invoice.

The number of average days purchases of the company represented by trade creditors at 31 December 2021 was 107 (2020 - 120).

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), including Financial Reporting Standard 101 'Reduced Disclosure Framework'. 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.

AZBIL TELSTAR UK LIMITED (REGISTERED NUMBER: 02878660)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2021


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
Sedulo Audit Limited have indicated their willingness to be re-appointed and appropriate arrangements have been put in place for them to be deemed re-appointed in the absence of an Annual General Meeting.

ON BEHALF OF THE BOARD:





N M Street - Director


8 July 2022

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
AZBIL TELSTAR UK LIMITED


Opinion
We have audited the financial statements of Azbil Telstar 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 101 'Reduced Disclosure Framework' (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.

Emphasis of matter
We draw attention to note 3 to the financial statements which explains the directors assessment of uncertainties arising from the Covid-19 pandemic and their impact on the company.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
AZBIL TELSTAR UK LIMITED


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.

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 three, 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
AZBIL TELSTAR 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.

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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Extent to which the audit was capable of detecting irregularities, including fraud
The primary responsibility for the prevention and detection of fraud rests with directors and management, and we cannot be expected to detect non-compliance with all laws and regulations.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our knowledge of the business and sector, enquiries of directors and management, and review of regulatory information and correspondence. We communicated identified laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit.

We discussed with directors and management the policies and procedures in place to ensure compliance with laws and regulations and otherwise prevent, deter and detect fraud.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations identified as potentially having a material effect on the financial statements. Our procedures included review of financial statement information and testing of that information, enquiry of management and examination of relevant documentation, analytical procedures to identify unusual or unexpected relationships that may indicate fraud, and procedures to address the risk of fraud through director or management override of controls.

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.




David Stansfield ACCA (Senior Statutory Auditor)
for and on behalf of Sedulo Audit Limited
Statutory Auditors
Regency Court
62-66 Deansgate
Manchester
M3 2EN

8 July 2022

AZBIL TELSTAR UK LIMITED (REGISTERED NUMBER: 02878660)

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021

31.12.21 31.12.20
Notes £    £    £    £   

TURNOVER 4 8,969,684 6,807,076

Cost of sales 6,845,122 4,940,919
GROSS PROFIT 2,124,562 1,866,157

Distribution costs 266,115 153,910
Administrative expenses 1,623,532 1,521,631
1,889,647 1,675,541
234,915 190,616

Other operating income 25,000 51,655
OPERATING PROFIT 259,915 242,271


Interest payable and similar expenses 6 26,730 36,051
PROFIT BEFORE TAXATION 7 233,185 206,220

Tax on profit 8 - (138,909 )
PROFIT FOR THE FINANCIAL YEAR 233,185 345,129


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

233,185

345,129

AZBIL TELSTAR UK LIMITED (REGISTERED NUMBER: 02878660)

BALANCE SHEET
31 DECEMBER 2021

31.12.21 31.12.20
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 87 87
Tangible assets 10 134,772 165,684
134,859 165,771

CURRENT ASSETS
Stocks 11 194,088 387,080
Debtors 12 4,010,210 3,088,805
Cash at bank and in hand 461,313 679,803
4,665,611 4,155,688
CREDITORS
Amounts falling due within one year 13 4,214,931 4,029,029
NET CURRENT ASSETS 450,680 126,659
TOTAL ASSETS LESS CURRENT
LIABILITIES

585,539

292,430

CREDITORS
Amounts falling due after more than one year 14 1,878,884 1,818,960
NET LIABILITIES (1,293,345 ) (1,526,530 )

CAPITAL AND RESERVES
Called up share capital 15 838,735 838,735
Share premium 16 249,655 249,655
Capital redemption reserve 16 510 510
Retained earnings 16 (2,382,245 ) (2,615,430 )
SHAREHOLDERS' FUNDS (1,293,345 ) (1,526,530 )

The financial statements were approved by the Board of Directors and authorised for issue on 8 July 2022 and were signed on its behalf by:





N M Street - Director


AZBIL TELSTAR UK LIMITED (REGISTERED NUMBER: 02878660)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021

Called up Capital
share Retained Share redemption Total
capital earnings premium reserve equity
£    £    £    £    £   

Balance at 1 January 2020 838,735 (2,960,559 ) 249,655 510 (1,871,659 )

Changes in equity
Total comprehensive income - 345,129 - - 345,129
Balance at 31 December 2020 838,735 (2,615,430 ) 249,655 510 (1,526,530 )

Changes in equity
Total comprehensive income - 233,185 - - 233,185
Balance at 31 December 2021 838,735 (2,382,245 ) 249,655 510 (1,293,345 )

AZBIL TELSTAR UK LIMITED (REGISTERED NUMBER: 02878660)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021


1. STATEMENT OF CHANGES IN EQUITY

Total comprehensive income is fully attributable to owners of the parent.

2. STATUTORY INFORMATION

Azbil Telstar UK Limited is a private company, limited by shares, domiciled and registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

3. ACCOUNTING POLICIES

Basis of preparation
These financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are prepared in pound sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.

The presentation of financial statements in accordance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies.

Going concern
In common with virtually every other business in the country, the company has been experiencing the effects of the Coronavirus pandemic. Whilst the full impact of this exceptional situation on the company cannot be assessed with complete certainty at the current time, the Directors believe they have taken all possible steps to protect the company including accessing relevant Government assistance.

The parent company has indicated its intention to continue to provide financial support to the entity for a period of at least 12 months from the date of the Directors' Report.

In addition the company has built up a substantial order book at 31 December 2021 and is forecast to trade profitably in the future.

At the time of signing these accounts the Directors are of the opinion that the company will remain viable for the foreseeable future and therefore these Financial Statements have been prepared on the Going Concern basis.

Disclosure exemptions
The company has taken advantage of certain disclosure exemptions available under FRS 101 in relation to:
-financial instruments where disclosure requirements appear in the group accounts;
-fair value measurement;
-share based payments;
-the presentation of a cash flow statement and associated notes;
-the presentation of comparative information in respect of tangible fixed assets;
-capital management;
-related party disclosures and transactions

Where required, equivalent disclosures are given in the group accounts of the ultimate parent company.

Turnover
Turnover is derived from ordinary activities represented by net invoiced goods, long term contracts completed in the year and a percentage of completion for long term contracts ongoing at the year end.

AZBIL TELSTAR UK LIMITED (REGISTERED NUMBER: 02878660)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


3. ACCOUNTING POLICIES - continued

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

Short leasehold - Over the life of the lease
Fixtures and fittings - 50% on reducing balance, 30% on reducing balance and 25% on cost

Financial instruments
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

The company only enters into transactions in 'basic' financial instruments which result in the recognition of assets and liabilities; these include trade and other debtors and creditors, bank balances, loans from banks and other third parties, and loans to related parties.

Basic financial assets (other than those classified as payable within one year) are initially measured at cost, and are subsequently carried at cost or amortised cost using the effective interest method, less any impairment losses. Basic financial assets classified as receivable within one year are not amortised.

Basic financial liabilities (other than those classified as payable within one year) are initially recognised at present value of future cash flows and subsequently at amortised costs using the effective interest method. Basic financial liabilities classified as payable within one year are not amortised.

Financial assets and liabilities are offset, with the net amounts reported 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.

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads

Work-In-Progress

For long term contracts which have started but not completed at 31 December each year the company has adopted the following policy:-

Costs to date for ongoing projects where the project is not considered material and is not included in long term contracts are disclosed under work-in-progress at lower of cost and net realisable value.

AZBIL TELSTAR UK LIMITED (REGISTERED NUMBER: 02878660)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


3. ACCOUNTING POLICIES - continued

Taxation
Current taxes are based on the results shown in the financial statements and are calculated according to local tax rules, using tax rates enacted or substantially enacted by the balance sheet date.

Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognised in the tax computation.

A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse.

Deferred tax assets and liabilities are not discounted.

Research and development
Research and development costs are capitalised under intangible assets. The costs used incorporate both materials and labour which includes a proportion of overheads.

Only costs relating to specific projects of research and development are capitalised and only to the extent that the directors believe the costs are relevant to future revenues that will be generated as a result.

Amortisation is calculated evenly over a maximum of five years in line with group accounting policy. The directors review all individual projects each year and if they believe a shorter period is more appropriate or a project has become obsolete it is amortised over a shorter period or written off.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at either the rates of exchange ruling at the balance sheet date or the rate of exchange agreed in any respective hedging contract. 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.

Employee benefit costs
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate.

AZBIL TELSTAR UK LIMITED (REGISTERED NUMBER: 02878660)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


3. ACCOUNTING POLICIES - continued

Contracts with customers
Large contracts are recognised as follows:

Amounts by which recognised turnover is in excess of invoices raised to date is separately disclosed within debtors as amounts due from contract customers.

Amounts by which invoices raised to date is in excess of recognised turnover is separately disclosed within creditors as amounts due to contract customers.

Amounts by which recorded expenditure is in excess of costs to date is disclosed within accruals.

All costs to date on projects calculated in this way are taken out of work-in-progress.

This accounting policy is considered by the directors to be the most accurate way of accounting for profit on long term contracts evenly over the life of each project.

Leases
Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset asset are consumed.

Grant income
Grants in relation to tangible fixed asset are credited to profit and loss account over the useful lives of the related assets, whereas those in relation to expenditure are credited when the expenditure is charged to profit and loss.

4. TURNOVER

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

An analysis of turnover by geographical market is given below:

31.12.21 31.12.20
£    £   
United Kingdom 1,220,345 928,953
Europe 3,665,552 3,712,301
Rest of world 4,083,787 2,165,822
8,969,684 6,807,076

5. EMPLOYEES AND DIRECTORS
31.12.21 31.12.20
£    £   
Wages and salaries 1,951,824 1,674,008
Social security costs 205,305 185,684
Other pension costs 153,263 120,511
2,310,392 1,980,203

AZBIL TELSTAR UK LIMITED (REGISTERED NUMBER: 02878660)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


5. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
31.12.21 31.12.20

Operations and sales 42 38
Administration and finance 3 6
45 44

31.12.21 31.12.20
£    £   
Directors' remuneration 103,804 101,267
Directors' pension contributions to money purchase schemes 10,317 6,400

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

Money purchase schemes 1 1

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.21 31.12.20
£    £   
Loans from group undertakings 26,730 36,051

7. PROFIT BEFORE TAXATION

The profit before taxation is stated after charging:
31.12.21 31.12.20
£    £   
Depreciation - owned assets 42,398 27,808
Loss on disposal of fixed assets 664 -
Auditors' remuneration 10,500 10,500
Auditors' remuneration for non audit work 12,000 27,782
Pension costs 153,263 120,511
(Profit) / Loss on foreign exchange 41,962 159,923
Operating lease charges 117,038 88,360

8. TAXATION

Analysis of tax income
31.12.21 31.12.20
£    £   
Current tax:
Tax - (138,909 )
Total tax income in statement of comprehensive income - (138,909 )

AZBIL TELSTAR UK LIMITED (REGISTERED NUMBER: 02878660)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


8. TAXATION - continued

Factors affecting the tax expense
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
£    £   
Profit before income tax 233,185 206,220
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2020 - 19%)

44,305

39,182

Effects of:
Expenses not deductible for tax purposes 10,402 7,751
Income deductible in determining taxable profit (2,248 ) (2,063 )
Depreciation in excess of capital allowances 5,059 (13,384 )
Utilised tax losses (57,518 ) (31,486 )
Research and development credit - (138,909 )

Tax income - (138,909 )

The company has tax losses of approximately £2,437,000 (2020: £2,833,000) to offset against future trading profits. A deferred tax asset of £463,000 (2020: £538,000) has not been provided in respect of these losses due to the uncertainty over the timing of their recovery.

9. INTANGIBLE FIXED ASSETS
Development
costs
£   
COST
At 1 January 2021 404,887
Disposals (404,800 )
At 31 December 2021 87
AMORTISATION
At 1 January 2021 404,800
Eliminated on disposal (404,800 )
At 31 December 2021 -
NET BOOK VALUE
At 31 December 2021 87
At 31 December 2020 87

AZBIL TELSTAR UK LIMITED (REGISTERED NUMBER: 02878660)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


10. TANGIBLE FIXED ASSETS
Fixtures
Short and
leasehold fittings Totals
£    £    £   
COST
At 1 January 2021 226,044 492,079 718,123
Additions - 12,150 12,150
Disposals (128,524 ) (267,043 ) (395,567 )
At 31 December 2021 97,520 237,186 334,706
DEPRECIATION
At 1 January 2021 145,997 406,442 552,439
Charge for year 12,667 29,731 42,398
Eliminated on disposal (127,860 ) (267,043 ) (394,903 )
At 31 December 2021 30,804 169,130 199,934
NET BOOK VALUE
At 31 December 2021 66,716 68,056 134,772
At 31 December 2020 80,047 85,637 165,684

11. STOCKS
31.12.21 31.12.20
£    £   
Raw materials 194,088 387,080

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.21 31.12.20
£    £   
Trade debtors 1,039,664 1,216,206
Amounts owed by group undertakings 172,367 254,478
Amounts due from contract
customers 2,626,539 1,458,043
Other debtors 15,214 25,530
VAT 75,994 90,653
Prepayments and accrued income 80,432 43,895
4,010,210 3,088,805

AZBIL TELSTAR UK LIMITED (REGISTERED NUMBER: 02878660)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.21 31.12.20
£    £   
Trade creditors 1,433,466 1,256,441
Amounts owed to group undertakings 433,530 103,154
Social security and other taxes 55,727 46,640
Other creditors 152,844 151,789
Amounts due to contract
customers 1,603,065 1,961,762
Loans from group undertaking 200,000 200,000
Accruals and deferred income 336,299 309,243
4,214,931 4,029,029

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.12.21 31.12.20
£    £   
Loans from group undertaking 1,878,884 1,818,960

15. CALLED UP SHARE CAPITAL


Allotted, issued and fully paid:
Number: Class: Nominal 31.12.21 31.12.20
value: £    £   
83,873,500 Ordinary 0.01 838,735 838,735

Full voting and dividend rights are attached to the Ordinary shares.

16. RESERVES
Capital
Retained Share redemption
earnings premium reserve Totals
£    £    £    £   

At 1 January 2021 (2,615,430 ) 249,655 510 (2,365,265 )
Profit for the year 233,185 233,185
At 31 December 2021 (2,382,245 ) 249,655 510 (2,132,080 )

17. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the company to the scheme and amounted to £153,263 (2020: £120,511).

AZBIL TELSTAR UK LIMITED (REGISTERED NUMBER: 02878660)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


18. OPERATING LEASE COMMITMENTS

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

31.12.202131.12.2020
£   £   
Within one year153,157126,429
Between two and five years364,246507,120
517,403633,549

19. RELATED PARTY DISCLOSURES

As detailed in note 3 ''accounting policies'' the company has taken advantage of the exemption not to disclose related party transactions with wholly owned subsidiaries within the group.

20. ULTIMATE CONTROLLING PARTY

Azbil Corporation (incorporated in Japan) is regarded by the directors as being the company's ultimate parent company.

Azbil Telstar S.L.U (incorporated in Spain) is regarded by the directors as the company's parent company.

The group's consolidated financial statements are publically available from www.azbil.com.