Company Registration No. 11419350 (England and Wales)
Modulift Holdings Limited
Director's Report and Consolidated Financial Statements
For the Year Ended 31 December 2021
Modulift Holdings Limited
Contents
Page
Company information
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Notes to the financial statements
14 - 25
Modulift Holdings Limited
Company Information
Page 1
Directors
Sarah Spivey
Stefan Duller
Company number
11419350
Registered office
15 Newton Road
Poole
Dorset
BH13 7EX
Auditor
Azets Audit Services
37 Commercial Road
Poole
Dorset
BH14 0HU
Modulift Holdings Limited
Directors' Report
For the year ended 31 December 2021
Page 2

The directors present their annual report and financial statements for the year ended 31 December 2021.

Principal activities

The principal activity of the company and group continued to be that of the design and manufacture of lifting and handling equipment.

Results and dividends

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Sarah Spivey
Stefan Duller
Suzanne Spencer
(Resigned 31 May 2021)
Markus Gruber
(Resigned 31 May 2021)
Auditor

Azets Audit Services were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

This report was approved by the board and signed on its behalf by:
Sarah Spivey
Director
29 June 2022
Modulift Holdings Limited
Directors' Responsibilities Statement
For the year ended 31 December 2021
Page 3

The directors are responsible for preparing the Annual Report 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Modulift Holdings Limited
Independent Auditor's Report
To the members of Modulift Holdings Limited
Page 4
Opinion

We have audited the financial statements of Modulift Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2021 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

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 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 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 group's and parent 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

Modulift Holdings Limited
Independent Auditor's Report (Continued)
To the members of Modulift Holdings Limited
Page 5
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report.

 

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:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is 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 parent 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.

Auditor's 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 auditor's 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.

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.

The extent to which the audit was considered capable of detecting 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;

Modulift Holdings Limited
Independent Auditor's Report (Continued)
To the members of Modulift Holdings Limited
Page 6

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Modulift Holdings Limited
Independent Auditor's Report (Continued)
To the members of Modulift Holdings Limited
Page 7

Comparative figures

The comparative figures have not been audited.

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 an auditor's 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

.............................................................
Mr Andrew John Singleton FCCA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
Statutory Auditor
37 Commercial Road
Poole
Dorset
BH14 0HU
Date:
8 July 2022
Modulift Holdings Limited
Group Profit And Loss Account
For the year ended 31 December 2021
Page 8
2021
2020
Notes
£
£
Turnover
6,421,621
5,317,991
Cost of sales
(3,288,250)
(2,699,233)
Gross profit
3,133,371
2,618,758
Administrative expenses
(1,783,864)
(1,858,389)
Other operating income
30,013
165,280
Operating profit
1,379,520
925,649
Interest receivable and similar income
4
42
386
Interest payable and similar expenses
(13,865)
(55,101)
Profit before taxation
1,365,697
870,934
Tax on profit
(234,676)
(122,324)
Profit for the financial year
1,131,021
748,610
Profit for the financial year is all attributable to the owners of the parent company.
Modulift Holdings Limited
Group Statement of Comprehensive Income
For the year ended 31 December 2021
Page 9
2021
2020
£
£
Profit for the year
1,131,021
748,610
Other comprehensive income
Currency translation differences
(10,636)
-
0
Total comprehensive income for the year
1,120,385
748,610
Total comprehensive income for the year is all attributable to the owners of the parent company.
Modulift Holdings Limited
Group Balance Sheet
As at 31 December 2021
Page 10
2021
2020
Notes
£
£
£
£
Fixed assets
Intangible assets
5
3,141
2,678
Tangible assets
6
2,331,433
2,394,484
2,334,574
2,397,162
Current assets
Stocks
568,741
278,778
Debtors
9
982,443
1,057,174
Cash at bank and in hand
1,688,513
1,531,432
3,239,697
2,867,384
Creditors: amounts falling due within one year
10
(1,150,847)
(1,241,678)
Net current assets
2,088,850
1,625,706
Total assets less current liabilities
4,423,424
4,022,868
Creditors: amounts falling due after more than one year
11
-
(714,074)
Provisions for liabilities
(165,882)
(171,637)
Net assets
4,257,542
3,137,157
Capital and reserves
Called up share capital
14
110
110
Share premium account
202,990
202,990
Profit and loss reserves
4,054,442
2,934,057
Total equity
4,257,542
3,137,157

These financial statements have been prepared in accordance with the provisions applicable to groups and companies subject to the small companies regime.

The financial statements were approved and authorised for issue by the board of directors and are signed on its behalf by:
Sarah Spivey
Director
29 June 2022
2022-08-19
Modulift Holdings Limited
Company Balance Sheet
As at 31 December 2021
31 December 2021
Page 11
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
6
1,844,063
1,871,928
Investments
7
2,929
100
1,846,992
1,872,028
Current assets
Cash at bank and in hand
79,601
207,938
Creditors: amounts falling due within one year
10
(13,287)
(49,818)
Net current assets
66,314
158,120
Total assets less current liabilities
1,913,306
2,030,148
Creditors: amounts falling due after more than one year
11
-
(714,074)
Provisions for liabilities
(74,834)
(73,113)
Net assets
1,838,472
1,242,961
Capital and reserves
Called up share capital
14
110
110
Share premium account
202,990
202,990
Profit and loss reserves
1,635,372
1,039,861
Total equity
1,838,472
1,242,961

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £595,511 (2020 - £780,421 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and authorised for issue by the board of directors and are signed on its behalf by:
Sarah Spivey
Director
29 June 2022
Company Registration No. 11419350
Modulift Holdings Limited
Group Statement of Changes in Equity
For the year ended 31 December 2021
Page 12
Share capital
Share premium account
Own shares
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2020
100
-
0
27,590
2,338,508
2,366,198
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
-
-
748,610
748,610
Issue of share capital
14
10
202,990
-
-
203,000
Dividends
-
-
-
(153,061)
(153,061)
Other movements
-
-
(27,590)
-
(27,590)
Balance at 31 December 2020
110
202,990
-
0
2,934,057
3,137,157
Year ended 31 December 2021:
Profit for the year
-
-
-
1,131,021
1,131,021
Other comprehensive income:
Currency translation differences
-
-
-
(10,636)
(10,636)
Total comprehensive income for the year
-
-
-
1,120,385
1,120,385
Balance at 31 December 2021
110
202,990
-
0
4,054,442
4,257,542
Modulift Holdings Limited
Company Statement of Changes in Equity
For ther year ended 31 December 2021
Page 13
Share capital
Share premium account
Own shares
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2020
100
-
0
27,590
412,501
440,191
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
-
-
780,421
780,421
Issue of share capital
14
10
202,990
-
-
203,000
Dividends
-
-
-
(153,061)
(153,061)
Other movements
-
-
(27,590)
-
(27,590)
Balance at 31 December 2020
110
202,990
-
0
1,039,861
1,242,961
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
-
595,511
595,511
Balance at 31 December 2021
110
202,990
-
0
1,635,372
1,838,472
Modulift Holdings Limited
Notes to the Group Financial Statements
For the year ended 31 December 2021
Page 14
1
Accounting policies
Company information

Modulift Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 15 Newton Road, Poole, Dorset, BH13 7EX.

 

The group consists of Modulift Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Modulift Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2021. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Modulift Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2021
1
Accounting policies
(Continued)
Page 15
1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
Research and development expenditure

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

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Intangible fixed assets other than goodwill

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

 

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

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Development costs
20% straight line
1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Modulift Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2021
1
Accounting policies
(Continued)
Page 16

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
2% straight line
Leasehold land and buildings
20% straight line
Plant and equipment
20% straight line
Fixtures and fittings
20% straight line
Computers
33% straight line

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

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
Impairment of fixed assets

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

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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

 

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

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Modulift Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2021
1
Accounting policies
(Continued)
Page 17
1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.13
Financial instruments

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

 

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

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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

Modulift Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2021
1
Accounting policies
(Continued)
Page 18
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Modulift Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2021
1
Accounting policies
(Continued)
Page 19
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.15
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Modulift Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2021
1
Accounting policies
(Continued)
Page 20
1.18
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss 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 leased asset are consumed.

1.19
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.20
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Auditor's remuneration
2021
2020
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
15,000
-
3
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2021
2020
2021
2020
Number
Number
Number
Number
Total
32
32
2
2
Modulift Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2021
Page 21
4
Interest receivable and similar income
2021
2020
£
£
Other interest receivable and similar income
42
386
5
Intangible fixed assets
Group
Goodwill
Other
Total
£
£
£
Cost
At 1 January 2021
-
0
41,792
41,792
Additions
2,614
-
2,614
At 31 December 2021
2,614
41,792
44,406
Amortisation and impairment
At 1 January 2021
-
0
39,114
39,114
Amortisation charged for the year
261
1,890
2,151
At 31 December 2021
261
41,004
41,265
Carrying amount
At 31 December 2021
2,353
788
3,141
At 31 December 2020
-
0
2,678
2,678
The company had no intangible fixed assets at 31 December 2021 or 31 December 2020.
Modulift Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2021
Page 22
6
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
£
Cost
At 1 January 2021
1,899,793
20,962
812,083
18,942
56,922
2,808,702
Additions
-
0
-
0
139,045
-
0
127
139,172
Disposals
-
0
-
0
(15,000)
-
0
-
0
(15,000)
At 31 December 2021
1,899,793
20,962
936,128
18,942
57,049
2,932,874
Depreciation and impairment
At 1 January 2021
27,865
4,234
338,648
15,167
28,304
414,218
Depreciation charged in the year
27,865
4,192
149,155
1,159
12,352
194,723
Eliminated in respect of disposals
-
0
-
0
(7,500)
-
0
-
0
(7,500)
At 31 December 2021
55,730
8,426
480,303
16,326
40,656
601,441
Carrying amount
At 31 December 2021
1,844,063
12,536
455,825
2,616
16,393
2,331,433
At 31 December 2020
1,871,928
16,728
473,435
3,775
28,618
2,394,484
Company
Freehold land and buildings
£
Cost
At 1 January 2021 and 31 December 2021
1,899,793
Depreciation and impairment
At 1 January 2021
27,865
Depreciation charged in the year
27,865
At 31 December 2021
55,730
Carrying amount
At 31 December 2021
1,844,063
At 31 December 2020
1,871,928
Modulift Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2021
Page 23
7
Fixed asset investments
Group
Company
2021
2020
2021
2020
£
£
£
£
Investments in subsidiaries
-
0
-
0
2,929
100
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2021
100
Additions
2,829
At 31 December 2021
2,929
Carrying amount
At 31 December 2021
2,929
At 31 December 2020
100
8
Subsidiaries

Details of the company's subsidiaries at 31 December 2021 are as follows:

Name of undertaking
Principal Activity
Class of
% Held
shares held
Direct
Modulift UK Limited
Design and manufacture of lifting and handling equipment
Ordinary Shares
100.00
Modulift Czech Republic SRO
Sales of lifting and handling equipment
Ordinary Shares
100.00
9
Debtors
Group
Company
2021
2020
2021
2020
Amounts falling due within one year:
£
£
£
£
Trade debtors
906,660
1,049,617
-
0
-
0
Corporation tax recoverable
11,897
-
0
-
0
-
0
Other debtors
63,886
6,910
-
0
-
0
Prepayments and accrued income
-
0
647
-
0
-
0
982,443
1,057,174
-
-
Modulift Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2021
Page 24
10
Creditors: amounts falling due within one year
Group
Company
2021
2020
2021
2020
£
£
£
£
Bank loans
12
-
0
49,818
-
0
49,818
Obligations under finance leases
13
-
0
51,981
-
0
-
0
Trade creditors
847,008
760,311
-
0
-
0
Corporation tax payable
252,328
78,898
13,287
-
0
Other taxation and social security
34,092
29,580
-
-
Other creditors
6,004
241,515
-
0
-
0
Accruals and deferred income
11,415
29,575
-
0
-
0
1,150,847
1,241,678
13,287
49,818
11
Creditors: amounts falling due after more than one year
Group
Company
2021
2020
2021
2020
Notes
£
£
£
£
Bank loans and overdrafts
12
-
0
714,074
-
0
714,074
12
Loans and overdrafts
Group
Company
2021
2020
2021
2020
£
£
£
£
Bank loans
-
0
763,892
-
0
763,892
Payable within one year
-
49,818
-
49,818
Payable after one year
-
0
714,074
-
0
714,074
13
Finance lease obligations
Group
Company
2021
2020
2021
2020
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
-
0
51,981
-
0
-
0
Modulift Holdings Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2021
Page 25
14
Share capital
Group and company
2021
2020
Ordinary share capital
£
£
Issued and fully paid
1,100 Ordinary shares of 10p each
110
110
15
Operating lease commitments
Lessee

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

Group
Company
2021
2020
2021
2020
£
£
£
£
733,720
807,592
-
-
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