AVS Steps Limited
Financial Statements
For the year ended 30 April 2023
Pages for Filing with Registrar
Company Registration No. 03973828 (England and Wales)
AVS Steps Limited
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 10
AVS Steps Limited
Balance Sheet
As at 30 April 2023
Page 1
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
5
27,694
54,697
Tangible assets
6
216,140
245,228
243,834
299,925
Current assets
Stock
7
832,426
798,621
Debtors
8
494,518
287,466
Cash at bank and in hand
1,034,902
591,727
2,361,846
1,677,814
Creditors: amounts falling due within one year
9
(654,360)
(538,478)
Net current assets
1,707,486
1,139,336
Total assets less current liabilities
1,951,320
1,439,261
Provisions for liabilities
10
(110,449)
(110,765)
Net assets
1,840,871
1,328,496
Capital and reserves
Called up share capital
11
100
100
Profit and loss reserves
1,840,771
1,328,396
Total equity
1,840,871
1,328,496
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 29 September 2023 and are signed on its behalf by:
Mr S. Egerton
Mr J. Prince
Director
Director
Company Registration No. 03973828
AVS Steps Limited
Notes to the Financial Statements
For the year ended 30 April 2023
Page 2
1
Accounting policies
Company information
AVS Steps Limited is a private company limited by shares, domiciled and incorporated in England and Wales. The registered office is Rhino House, Deans Road, Ellesmere Port, Cheshire, CH65 4DR.
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 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. The principal accounting policies adopted are set out below.
1.2
Exemptions for qualifying entities under FRS 102
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Kruger Bidco Limited. These consolidated financial statements are available from its registered office, Rhino House, Deans Road, Ellesmere Port, United Kingdom, CH65 4DR.
1.3
Going concern
The company made a profit of £true512,375 for the year, and had net assets of £1,840,871 and net current assets of £1,707,486 at the balance sheet. The company has traded positively since the year-end. The directors have produced forecasts and as a result, they have a reasonable expectation that the company has adequate resources to continue in operational existence for at least 12 months from the date of approval of the financial statements. Therefore the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
AVS Steps Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2023
1
Accounting policies
(Continued)
Page 3
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods 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.
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
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.
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.
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
4 years straight line
1.6
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.
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:
Plant and equipment
20% Straight line
Motor vehicles
25% Reducing balance
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 credited or charged to profit or loss.
Fixed assets held for sale are transferred to current asset investments.
AVS Steps Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2023
1
Accounting policies
(Continued)
Page 4
1.7
Stock
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.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock 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.
1.8
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities (when applicable).
1.9
Financial instruments
The company 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 company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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.
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 company transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
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 company after deducting all of its 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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
AVS Steps Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2023
1
Accounting policies
(Continued)
Page 5
1.10
Equity instruments
Equity instruments issued by the company 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 company.
1.11
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 company’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 when the company has 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.
1.12
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.13
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.
AVS Steps Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2023
1
Accounting policies
(Continued)
Page 6
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
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 leases asset are consumed.
1.16
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
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Depreciation/amortisation
The annual depreciation and amortisation charges in respect of tangible and intangible fixed assets are based on the directors' best estimate of the useful economic lives and residual values of each asset class. The useful economic lives and residual values of each asset class are reassessed annually. Annual impairment reviews are performed on each class of asset to ensure that the carrying values are appropriate.
Stock provisions
The company makes an estimate of the value of obsolete and slow moving stock lines based on the ageing of the stock in hand. Provisions are made where the estimated selling price less is less than the original cost.
Deferred tax
Provisions for deferred tax assets and liabilities are made where the timing differences between the recognition of accounting and taxable profits can be assessed with reasonable certainty. Variances are provided for in full where the recognition criteria of FRS102 section 29 are met.
AVS Steps Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2023
Page 7
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
18
17
4
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
135,786
Deferred tax
Origination and reversal of timing differences
(316)
31,084
Total tax charge
135,470
31,084
5
Intangible fixed assets
Development costs
£
Cost
At 1 May 2022
116,161
Additions
2,469
At 30 April 2023
118,630
Amortisation and impairment
At 1 May 2022
61,464
Amortisation charged for the year
29,472
At 30 April 2023
90,936
Carrying amount
At 30 April 2023
27,694
At 30 April 2022
54,697
AVS Steps Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2023
Page 8
6
Tangible fixed assets
Plant and machinery & motor vehicles
£
Cost
At 1 May 2022
350,882
Additions
39,286
At 30 April 2023
390,168
Depreciation and impairment
At 1 May 2022
105,654
Depreciation charged in the year
68,374
At 30 April 2023
174,028
Carrying amount
At 30 April 2023
216,140
At 30 April 2022
245,228
7
Stock
2023
2022
£
£
Raw materials and consumables
490,991
427,721
Work in progress
56,919
57,953
Finished goods and goods for resale
284,516
312,947
832,426
798,621
8
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
415,640
256,615
Amounts owed by group undertakings
30,304
2,124
Other debtors
35,016
26,178
Prepayments and accrued income
13,558
2,549
494,518
287,466
AVS Steps Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2023
Page 9
9
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
447,875
354,114
Amounts due to fellow group undertakings
71,647
77,352
Corporation tax
38,511
3,271
Accruals and deferred income
96,327
103,741
654,360
538,478
10
Provisions for liabilities
2023
2022
£
£
Warranty provision
56,057
56,057
Deferred tax liabilities
54,392
54,708
110,449
110,765
11
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Jeremy Read.
The auditor was Moore Kingston Smith LLP.
13
Operating lease commitments
Lessee
At the reporting end date the companies commitments for future minimum lease payments under non-cancellable operating leases was nil.
AVS Steps Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2023
Page 10
14
Financial commitments, guarantees and contingent liabilities
Rhino Products Limited, Rhino Products Holdings Limited, Kruger Bidco Limited, Rhino Products BV and AVS Steps Limited have given a multilateral guarantee in favour of HSBC bank. A second multilateral guarantee in favour of HSBC bank given by Kruger Bidco Limited, AVS Steps Limited, Rhino Products Holdings Limited, Rhino Products Limited, Hubb Systems Limited and Rhino Products BV. Total borrowings at the year end were £9,637,178.
The debentures held by the group are secured by way of fixed and floating charges in favour of the bank, against the assets of Kruger Bidco Limited, AVS Steps Limited, Rhino Products Holdings Limited, Rhino Products Limited, Hubb Systems Limited and Rhino Products BV.
15
Related party transactions
AVS Steps Limited has taken the exemption to not disclose related party transactions with companies under the same control in accordance with FRS 102 - Section 33 "Related Party Disclosures".
16
Parent company
The immediate parent company of AVS Steps Limited is Rhino Products Holdings Limited, a company incorporated in the United Kingdom. The ultimate parent company of AVS Steps Limited is Kruger Bidco Limited, a company incorporated in the United Kingdom.
The consolidated financial statements of Kruger Bidco Limited can be obtained from Rhino House, Deans Road, Ellesmere Port, Cheshire, CH65 4DR.