Company registration number 00728049 (England and Wales)
ACRASTYLE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
ACRASTYLE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
ACRASTYLE LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
1,020,110
1,042,325
Current assets
Stocks
1,373,438
949,740
Debtors
5
1,925,909
2,386,653
Cash at bank and in hand
526
173,875
3,299,873
3,510,268
Creditors: amounts falling due within one year
6
(2,522,719)
(2,886,372)
Net current assets
777,154
623,896
Total assets less current liabilities
1,797,264
1,666,221
Provisions for liabilities
(2,339,000)
(2,414,000)
Net liabilities
(541,736)
(747,779)
Capital and reserves
Called up share capital
84,908
84,908
Share premium account
1,045,191
1,045,191
Revaluation reserve
7
807,356
819,238
Profit and loss reserves
(2,479,191)
(2,697,116)
Total equity
(541,736)
(747,779)
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 26 June 2023 and are signed on its behalf by:
Mr P J Woolrich
Director
Company Registration No. 00728049
ACRASTYLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
1
Accounting policies
Company information
Acrastyle Limited is a private company limited by shares incorporated in England and Wales. The registered office is North Lonsdale Road, Ulverston, Cumbria, LA12 9DP.
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
Going concern
The accounts have been prepared on a going concern basis. true
Despite the fact that the balance sheet is in deficit the directors deem this to be appropriate for the following reasons.
The reason for the deficit is the defined benefit pension scheme and the company has met its obligations this year regarding the agreement entered into in February 2013 to eliminate the funding shortfall over a period of 18 years.
The company continues to receive support from its parent company and shareholders.
1.3
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.
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.
1.4
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:
Land and buildings Freehold
Straight line over 50 years
Plant and machinery
Straight line over 10 years
Fixtures, fittings & equipment
Straight line over 3 or 10 years
ACRASTYLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 3 -
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.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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).
1.6
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.
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.
1.7
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.
1.8
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 balance sheet 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.
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.
ACRASTYLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
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.
1.9
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.
1.10
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.11
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.
1.12
Retirement benefits
The company operates a stakeholder personal pension scheme and the costs charged in the financial statements represent the contributions payable by the company during the period.
The company also operated a defined benefit pension scheme. The assets of the scheme are held separately from those of the company. This scheme was closed in 2007.
Pension scheme liabilities are measured on an actuarial basis using a projected unit method and are discounted to their present value.
Pension scheme assets are valued at market value at the balance sheet date.
The pension scheme deficit is recognised in full on the balance sheet.
ACRASTYLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.
Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.
The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.
1.13
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.
1.14
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.
ACRASTYLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
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.
Defined benefit pension provision
The pension provision is calculated by an actuary based on market rates. Further information regarding the basis used for 2023 is shown in note 10.
Fixed assets
The useful life and depreciation rate of tangible fixed assets is reviewed annually and amended when necessary.
Stock provision
Stock is reviewed and if no movement in a 24 month period, 50% of the value is included within the stock provision
Bad debt provision
Management review balances and using knowledge of customer base decide whether a provision is required.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
51
55
ACRASTYLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 April 2022
1,000,000
379,750
1,379,750
Additions
12,535
12,535
At 31 March 2023
1,000,000
392,285
1,392,285
Depreciation and impairment
At 1 April 2022
337,425
337,425
Depreciation charged in the year
20,221
14,529
34,750
At 31 March 2023
20,221
351,954
372,175
Carrying amount
At 31 March 2023
979,779
40,331
1,020,110
At 31 March 2022
1,000,000
42,325
1,042,325
The land and buildings were revalued by Hyde Harrington, a firm of chartered surveyors on 31st March 2022 at a current use value of £1,000,000.
The revaluation surplus is disclosed in note 7.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
2023
2022
£
£
Cost
447,187
447,187
Accumulated depreciation
(283,239)
(274,900)
Carrying value
163,948
172,287
ACRASTYLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,350,619
1,860,298
Amounts owed by group undertakings
23,087
19,494
Other debtors
107,793
48,201
1,481,499
1,927,993
Deferred tax asset
444,410
458,660
1,925,909
2,386,653
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
144,008
Trade creditors
1,496,658
1,138,140
Taxation and social security
42,532
220,523
Other creditors
839,521
1,527,709
2,522,719
2,886,372
The bank overdraft is secured by a fixed and floating charge over the assets of the company and a legal first charge over the land and property at North Lonsdale Road, Ulverston.
7
Revaluation reserve
2023
2022
£
£
At beginning of year
819,238
504,913
Revaluation surplus arising in the year
314,325
Transfer to retained earnings
(11,882)
At end of year
807,356
819,238
8
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.
Senior Statutory Auditor:
Sarah Roberts BSc FCA
Statutory Auditor:
JL Winder & Co
ACRASTYLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
Total at end of year
5,762
11,674
10
Related party transactions
During the year the company made payments totalling £3,593 (2022 - £3,373) on behalf of it's parent company Acrastyle Switchgear Limited.
The balance owed at the year end totalled £23,087 (2022 - £19,494)
During the year the company purchased goods in the normal course of business from S&S Power Switchgear Engineering Limited totalling £37,626 (2022 - £63,142). Acrastyle Limited made sales of £nil (2022 - £nil) to S&S Power Switchgear Engineering Limited.
The amount owing to S&S Power Switchgear Engineering Limited at the year end was £Nil (2022 £(32,202)).
During the year Acrastyle Limited were invoiced £72,630 (2022 - £68,333 by Acrastyle Power India Limited in respect of engineering services. Acrastyle Power India Limited is the parent company of Acrastyle Switchgear Limited.
The amount owing to Acrastyle Power India Limited at the year end was £18,000 (2022 £6,000).
11
Pension scheme liability
As mentioned in note 1.13 the company has a defined benefit pension scheme which was closed in 2007.
At the year end this was in deficit by £2,339,000 (2022 :£2,414,000). This is represented by present value of funded obligations being £6,341,000 (2022 :£8,178,000), fair value of plan assets being £4,002,000 (2022: £5,764,000) and there is a deferred tax asset of £444,410 (2022:£458,660).
The total amount recognised in the profit and loss account was £211,000 (2022: £201,000)
The company has used the discount rate based on the iBoxx over 15 years corporate bond index for AA rated bonds in the calculation of the pension scheme liability this year and in the year ended 31st March 2022.
The discount rate this year is therefore 4.9%, the bond yield of 4.7% plus a margin of 0.2%.
The above figures have been prepared by the pension scheme's actuaries with regard to its accounting liabilities as at 31 March 2023.
12
Parent company
During the year the company was a wholly owned subsidiary of Acrastyle Switchgear Limited.
The parent company Acrastyle Switchgear Limited is a wholly owned subsidiary of Acrastyle Power (India) Limited, a company registered in India. The ultimate parent company is Hamilton and Company Ltd, a company registered in India.