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Registered number: 12808011










EVOLUTION FASTENERS (HOLDINGS) LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 
 
COMPANY INFORMATION


Directors
M Keisner 
K Leung 




Company secretary
P Lee



Registered number
12808011



Registered office
One Oaks Court
Warwick Road

Borehamwood

Hertfordshire

WD6 1GS




Independent auditors
Xeinadin Audit Limited
Chartered Accounts & Statutory Auditors

Becket House

36 Old Jewry

London

EC2R 8DD




Accountants
Elman Wall Limited
8th Floor

Becket House

36 Old Jewry

London

EC2R 8DD





 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 

CONTENTS



Page
Group Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Consolidated Statement of Comprehensive Income
9
Consolidated Balance Sheet
10 - 11
Company Balance Sheet
12
Consolidated Statement of Changes in Equity
13 - 14
Company Statement of Changes in Equity
15 - 16
Consolidated Statement of Cash Flows
17 - 18
Notes to the Financial Statements
19 - 37


 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

Introduction
 
The Directors present their strategic review of the Group for the year ended 31st March 2023.

Principal Activities and Business Review
 
The principal activity of the business is the design, production and distribution of fasteners for the construction industry.
The results for the year ended 31st March 2023 and its financial position were satisfactory.
Sales at £14,228,932 and Gross Profit of £5,593,951 were acceptable especially given the more difficult market conditions in the second half of the year.
Expenses reflected increased costs arising from general inflation, improvements to customer service and acquiring additional warehouse space.
The Group’s operating profit increased to £3,062,138 from £2,844,791, whilst its Net Assets rose from £6,895,217 to £8,560,130, after dividends paid of £911,200 (2022 £517,400).

Key Performance Indicators
 
The Group's key operating parameters include turnover. operating profit and net assets. Financial performance is reviewed in many ways including overall margins. working capital efficiency and return on capital.


2023
2022
Movement
Movement
        £
        £
        £
        %
Turnover

14,228,932

12,387,765

1,841,167
 
15
 
Operating profit excluding exceptional items

3,062,138

2,844,791

217,347
 
8
 
Net assets

8,560,130

6,895,217

1,664,913
 
24
 

Employees
 
The welfare of the Group's employees is of the highest importance: we strive to be a responsible employer and continuously review pay and benefits and aim always to provide a safe working environment. There is a clearly stated whistle-blower policy in place with a dedicated confidential hotline, and employee policies are clearly set out in the Group Handbook. During the year we were pleased to achieve “Investors in People” certification for our principal operating subsidiary.

Community and Environment
 
The Group aims to reduce the environmental impact of its operations by controlling all areas of its activities associated with the supply and distribution of its products. The Group is committed to reducing its carbon footprint through recyclable packaging, monitoring energy performance and considering the life cycle of its processes, products and services. 

Page 1

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Principal Risks and Uncertainties
 
The Group's operations expose it to some risks and uncertainties which the Directors believe could have an impact on the Group's financial performance. The principal risks and management's response to them are set out below.
Construction Sector
The Group’s principal market is the construction sector and as such its results are heavily influenced by the health of that sector.
Financial risk management objectives and policies
The Group's activities expose it to foreign currency risk which is partially hedged by financial derivatives.
Credit Risk
The Group provides credit terms to many of its customers and there is an associate risk that customers do not pay outstanding balances as they fall due. The Group has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to any customer is subject to a limit which is reviewed on an ongoing basis.
Information Technology
Technology systems are important to the Group's operations. Loss of service of key IT systems could potentially affect the Group's ability to fulfil customer orders. IT risks are assessed by senior management with the appropriate expertise and action plans, including disaster recovery plans.
Supply Chain Risk
The Group purchases most of its product from various overseas suppliers spread across different geographical locations. The risk of supply disruption is further mitigated through holding substantial levels of stock in its warehouses

Future Developments

The Group continues to organically develop its business by expanding customer service; products; and geographical reach. Additionally, it is focused on attaining further certification and approvals for its products and services.


This report was approved by the board and signed on its behalf.



M Keisner
Director

Date: 19 October 2023

Page 2

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023

The directors present their report and the financial statements for the year ended 31 March 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £2,491,967 (2022 - £2,462,606).

During the year Dividends of £911,200 (2022: £517,400) were paid.

Directors

The directors who served during the year were:

M Keisner 
K Leung 

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Page 3

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditorsXeinadin Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





M Keisner
Director

Date: 19 October 2023

Page 4

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EVOLUTION FASTENERS (HOLDINGS) LIMITED
 

Opinion


We have audited the financial statements of Evolution Fasteners (Holdings) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2023, which comprise the Group Statement of Comprehensive Income, the Group and Company Balance Sheets, the Group Statement of Cash Flows, the Group and Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 March 2023 and of the Group's 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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 or the 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.


Page 5

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EVOLUTION FASTENERS (HOLDINGS) LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' 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.


Opinion 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 Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company 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.


Page 6

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EVOLUTION FASTENERS (HOLDINGS) LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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 Group's and 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


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 an Auditors' 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 Group 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:

Enquiry of management and those charged with governance around actual and potential litigation and claims to identify any instances of non-compliance with laws and regulations;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.



We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.


Page 7

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EVOLUTION FASTENERS (HOLDINGS) LIMITED (CONTINUED)


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 2006Our 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 Auditors' 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.





Karanjit Gill FCCA (Senior Statutory Auditor)
  
for and on behalf of
Xeinadin Audit Limited
 
Chartered Accounts & Statutory Auditors
  
Becket House
36 Old Jewry
London
EC2R 8DD

19 October 2023
Page 8

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
Note
£
£

  

Turnover
 4 
14,228,932
12,387,765

Cost of sales
  
(8,634,981)
(7,441,562)

Gross profit
  
5,593,951
4,946,203

Administrative expenses
  
(2,558,313)
(2,140,097)

Other operating income
 5 
26,500
38,685

Operating profit
 6 
3,062,138
2,844,791

Interest receivable and similar income
 10 
51
-

Interest payable and similar expenses
 11 
(32,495)
-

Profit before taxation
  
3,029,694
2,844,791

Tax on profit
 12 
(537,727)
(382,185)

Profit for the financial year
  
2,491,967
2,462,606

  

Foreign exchange
  
57,146
(26,530)

Other comprehensive income for the year
  
57,146
(26,530)

Total comprehensive income for the year
  
2,549,113
2,436,076

Profit for the year attributable to:
  

Owners of the parent Company
  
2,491,967
2,462,606

  
2,491,967
2,462,606

There were no recognised gains and losses for 2023 or 2022 other than those included in the consolidated statement of comprehensive income.

The notes on pages 19 to 37 form part of these financial statements.

Page 9

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
REGISTERED NUMBER: 12808011

CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 14 
69,722
46,967

Tangible assets
 15 
278,296
245,813

  
348,018
292,780

Current assets
  

Stocks
 17 
6,731,720
4,542,821

Debtors: amounts falling due within one year
 18 
3,237,875
3,148,445

Cash at bank and in hand
 19 
432,619
559,931

  
10,402,214
8,251,197

Creditors: amounts falling due within one year
 20 
(2,145,411)
(1,609,979)

Net current assets
  
 
 
8,256,803
 
 
6,641,218

Total assets less current liabilities
  
8,604,821
6,933,998

Provisions for liabilities
  

Deferred taxation
 21 
(44,691)
(38,781)

  
 
 
(44,691)
 
 
(38,781)

Net assets
  
8,560,130
6,895,217


Capital and reserves
  

Called up share capital 
 22 
40,000
38,500

Share premium account
 24 
25,500
-

Redeemable preference shares
 23 
115,000
115,000

Capital redemption reserve
 24 
(12,500)
(12,500)

Foreign exchange reserve
 24 
(57,846)
(114,992)

Other reserves
 24 
765,822
765,822

Profit and loss account
 24 
7,684,154
6,103,387

  
8,560,130
6,895,217


Page 10

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
REGISTERED NUMBER: 12808011
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 19 October 2023.




M Keisner
Director

The notes on pages 19 to 37 form part of these financial statements.

Page 11

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
REGISTERED NUMBER: 12808011

COMPANY BALANCE SHEET
AS AT 31 MARCH 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 16 
166,000
166,000

  
166,000
166,000

Current assets
  

Cash at bank and in hand
 19 
1,800
-

  
1,800
-

Creditors: amounts falling due within one year
 20 
(730,808)
(767,045)

Net current liabilities
  
 
 
(729,008)
 
 
(767,045)

Total assets less current liabilities
  
(563,008)
(601,045)

  

  

Net liabilities
  
(563,008)
(601,045)


Capital and reserves
  

Called up share capital 
 22 
40,000
38,500

Share premium account
 24 
25,500
-

Redeemable preference shares
 23 
115,000
115,000

Capital redemption reserve
 24 
(12,500)
(12,500)

Profit and loss account
 24 
(731,008)
(742,045)

  
(563,008)
(601,045)


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 19 October 2023.


M Keisner
Director

The notes on pages 19 to 37 form part of these financial statements.

Page 12

 

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023



Called up share capital
Share premium account
Capital redemption reserve
Redeemable preference shares
Foreign exchange reserve
Other reserves
Profit and loss account
Total equity


£
£
£
£
£
£
£
£


At 1 April 2022
38,500
-
(12,500)
115,000
(114,992)
765,822
6,103,387
6,895,217



Comprehensive income for the year


Profit for the year

-
-
-
-
-
-
2,491,967
2,491,967


Currency translation differences
-
-
-
-
57,146
-
-
57,146



Other comprehensive income for the year
-
-
-
-
57,146
-
-
57,146



Total comprehensive income for the year
-
-
-
-
57,146
-
2,491,967
2,549,113



Contributions by and distributions to owners


Dividends: Equity capital
-
-
-
-
-
-
(911,200)
(911,200)


Shares issued during the year
1,500
25,500
-
-
-
-
-
27,000



Total transactions with owners
1,500
25,500
-
-
-
-
(911,200)
(884,200)



At 31 March 2023
40,000
25,500
(12,500)
115,000
(57,846)
765,822
7,684,154
8,560,130



The notes on pages 19 to 37 form part of these financial statements.

Page 13

 

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022



Called up share capital
Capital redemption reserve
Redeemable preference shares
Foreign exchange reserve
Other reserves
Profit and loss account
Total equity


£
£
£
£
£
£
£


At 1 April 2021 (as previously stated)
38,500
(12,500)
115,000
(88,462)
765,822
4,311,681
5,130,041


Prior year adjustment
-
-
-
-
-
(153,500)
(153,500)


At 1 April 2021 (as restated)
38,500
(12,500)
115,000
(88,462)
765,822
4,158,181
4,976,541



Comprehensive income for the year


Profit for the year

-
-
-
-
-
2,462,606
2,462,606


Currency translation differences
-
-
-
(26,530)
-
-
(26,530)



Other comprehensive income for the year
-
-
-
(26,530)
-
-
(26,530)



Total comprehensive income for the year
-
-
-
(26,530)
-
2,462,606
2,436,076



Contributions by and distributions to owners


Dividends: Equity capital
-
-
-
-
-
(517,400)
(517,400)



Total transactions with owners
-
-
-
-
-
(517,400)
(517,400)



At 31 March 2022
38,500
(12,500)
115,000
(114,992)
765,822
6,103,387
6,895,217



The notes on pages 19 to 37 form part of these financial statements.

Page 14

 

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED


 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023



Called up share capital
Share premium account
Capital redemption reserve
Redeemable preference shares
Profit and loss account
Total equity


£
£
£
£
£
£


At 1 April 2022
38,500
-
(12,500)
115,000
(742,045)
(601,045)



Comprehensive income for the year


Profit for the year

-
-
-
-
922,237
922,237



Other comprehensive income for the year
-
-
-
-
-
-



Total comprehensive income for the year
-
-
-
-
922,237
922,237



Contributions by and distributions to owners


Dividends: Equity capital
-
-
-
-
(911,200)
(911,200)


Shares issued during the year
1,500
25,500
-
-
-
27,000



Total transactions with owners
1,500
25,500
-
-
(911,200)
(884,200)



At 31 March 2023
40,000
25,500
(12,500)
115,000
(731,008)
(563,008)



The notes on pages 19 to 37 form part of these financial statements.

Page 15

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022


Called up share capital
Capital redemption reserve
Redeemable preference shares
Profit and loss account
Total equity

£
£
£
£
£

At 1 April 2021
38,500
(12,500)
115,000
(736,532)
(595,532)


Comprehensive income for the year

Profit for the year

-
-
-
511,887
511,887


Other comprehensive income for the year
-
-
-
-
-


Total comprehensive income for the year
-
-
-
511,887
511,887


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(517,400)
(517,400)


Total transactions with owners
-
-
-
(517,400)
(517,400)


At 31 March 2022
38,500
(12,500)
115,000
(742,045)
(601,045)


The notes on pages 19 to 37 form part of these financial statements.

Page 16

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
2,491,967
2,462,606

Adjustments for:

Amortisation of intangible assets
9,457
8,451

Depreciation of tangible assets
71,006
61,728

Profit on disposal of tangible assets
(4,918)
-

Interest paid
32,495
-

Interest received
(51)
-

Taxation charge
537,727
382,185

(Increase) in stocks
(2,188,899)
(1,891,406)

(Increase) in debtors
(469,928)
(657,881)

(Decrease)/increase in creditors
(450,821)
58,525

Corporation tax (paid)
(101,795)
(206,303)

Foreign exchange
8,559
(27,748)

Net cash generated from operating activities

(65,201)
190,157


Cash flows from investing activities

Purchase of intangible fixed assets
(32,212)
(36,532)

Purchase of tangible fixed assets
(90,409)
(70,268)

Sale of tangible fixed assets
8,979
4,617

Interest received
51
-

Net cash from investing activities

(113,591)
(102,183)
Page 17

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023


2023
2022

£
£



Cash flows from financing activities

Issue of ordinary shares
27,000
-

Repayment of loans
-
(50,000)

Movements on invoice discounting
968,175
-

Dividends paid
(911,200)
(517,400)

Interest paid
(32,495)
-

Net cash used in financing activities
51,480
(567,400)

Net (decrease) in cash and cash equivalents
(127,312)
(479,426)

Cash and cash equivalents at beginning of year
559,931
1,039,357

Cash and cash equivalents at the end of year
432,619
559,931


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
432,619
559,931

432,619
559,931


The notes on pages 19 to 37 form part of these financial statements.

Page 18

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1.


General information

Evolution Fasteners (Holdings) Limited is a private Company, limited by shares incorporated in England and Wales, United Kingdom. The Company's registration number is 04042865 and address of registered office 1 Oaks Court, Warwick Road, Borehamwood, Hertfordshire, WD6 1GS.
The principal activity of the Company is the parent holding company of Evolution Fasteners (UK) Limited and its subsidiaries.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 19

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Group's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Page 20

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.5

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 21

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.11

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and
the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of
the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost
less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a
straight line basis to the consolidated statement of comprehensive income over its useful economic
life.

Page 22

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the following methods.

Depreciation is provided on the following basis:

Long-term leasehold property
-
10% straight line method
Plant and machinery
-
10-25% straight line method
Motor vehicles
-
20% reducing balance
Testing Laboratory
-
12.5% straight line method

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.13

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.15

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 23

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.16

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.17

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.18

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.19

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

 
2.20

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Investments in non-derivative instruments that are equity to the issuer are measured:
Page 24

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)


2.20
Financial instruments (continued)

at fair value with changes recognised in the Consolidated Statement of Comprehensive Income if the shares are publicly traded or their fair value can otherwise be measured reliably;
at cost less impairment for all other investments.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Statement of Comprehensive Income.

 
2.21

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the group'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 recognised 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 revision and future periods where the revision affects both current and future periods.
Critical judgements
The directors are of the view that there are no further critical judgements (apart from those involving estimates) in applying their accounting policies that have had a significant effect on amounts recognised in the financial statements.
Key sources of estimation uncertainty
The directors are of the view that there are no estimates or assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.

Page 25

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Manufacture and distribution of fasteners
14,228,932
12,387,765

14,228,932
12,387,765


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
11,734,232
10,647,488

Rest of Europe
2,491,553
1,740,277

Rest of the World
3,147
-

14,228,932
12,387,765



5.


Other operating income

2023
2022
£
£

COVID 19 insurance loss claim
25,500
36,685

Development grant
1,000
2,000

26,500
38,685



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation
71,006
61,728

Other operating lease rentals
322,717
262,978

Amortisation
9,457
8,451

Page 26

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2023
2022
£
£



Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
16,875
-

Fees payable to the Company's auditors for non audit services
5,625
-

22,500
-


8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
1,562,920
1,340,316
-
-

Cost of defined contribution scheme
61,877
48,383
-
-

1,624,797
1,388,699
-
-


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Employees
36
33

The Company has no employees other than the directors, who did not receive any remuneration (2022 - £NIL)
Page 27

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
302,470
336,191

Group contributions to defined contribution pension schemes
14,292
7,438

316,762
343,629


During the year retirement benefits were accruing to 3 directors (2022 - 3) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £125,449 (2022 - £90,000).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £5,699 (2022 - £0).


10.


Interest receivable

2023
2022
£
£


Other interest receivable
51
-

51
-


11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
19,611
-

Other interest payable
12,884
-

32,495
-

Page 28

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
531,817
377,862


531,817
377,862


Total current tax
531,817
377,862

Deferred tax


Fixed asset timing differences
5,929
5,450

Short term timing differences
(19)
(1,127)

Total deferred tax
5,910
4,323


Tax on profit
537,727
382,185
Page 29

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is the same as (2022 - the same as) the standard rate of corporation tax in the UK of 19% (2022 - 19%) as set out below:

2023
2022
£
£


Profit on ordinary activities before tax
3,029,694
2,844,791


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
575,642
540,510

Effects of:


Fixed asset timing differences
(3,019)
(1,091)

Expenses not deductible for tax purposes
1,533
192

Additional deduction for R&D exemption
-
(57,458)

Exempt ABGH distributions
-
(108,300)

Group relief surrendered/(claimed)
-
(1,047)

Remeasurement of deferred tax for changes in tax rates
1,419
1,752

Foreign taxation
(18,996)
7,627

Adjustments to tax charge in respect of previous periods
(19,380)
-

Income Taxation withheld
528
-

Total tax charge for the year
537,727
382,185


Factors that may affect future tax charges

The rate of corporation tax has been increased from 19% to 25% with effect from 1 April 2023. Deferred
tax assets and liabilities have therefore been remeasured at 25%


13.


Dividends

2023
2022
£
£


Dividends
911,200
517,400

911,200
517,400

Page 30

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

14.


Intangible assets

Group





Research and Development
Trademarks
Total

£
£
£



Cost


At 1 April 2022
132,067
16,626
148,693


Additions
32,212
-
32,212



At 31 March 2023

164,279
16,626
180,905



Amortisation


At 1 April 2022
89,188
12,538
101,726


Charge for the year on owned assets
7,794
1,663
9,457



At 31 March 2023

96,982
14,201
111,183



Net book value



At 31 March 2023
67,297
2,425
69,722



At 31 March 2022
42,879
4,088
46,967



Page 31

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

15.


Tangible fixed assets

Group






Long-term leasehold property
Plant and machinery
Motor vehicles
Testing Laboratory
Total

£
£
£
£
£



Cost or valuation


At 1 April 2022
64,953
344,541
43,484
366,571
819,549


Additions
6,498
82,932
40,040
420
129,890


Disposals
-
-
(44,638)
-
(44,638)


Exchange adjustments
396
1,057
107
-
1,560



At 31 March 2023

71,847
428,530
38,993
366,991
906,361



Depreciation


At 1 April 2022
48,081
209,524
9,429
306,702
573,736


Charge for the year on owned assets
2,441
44,806
9,992
13,767
71,006


Disposals
-
-
(15,504)
-
(15,504)


Exchange adjustments
(551)
429
(1,051)
-
(1,173)



At 31 March 2023

49,971
254,759
2,866
320,469
628,065



Net book value



At 31 March 2023
21,876
173,771
36,127
46,522
278,296



At 31 March 2022
16,872
135,017
34,055
59,869
245,813

Page 32

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

16.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 April 2022
166,000



At 31 March 2023
166,000





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Evolution Fasteners (UK) Limited
1 Oaks Court, WarwickRoad, Borehamwood,Hertfordshire, WD6 1GS
Manufacture and distribution of premium quality, high performance fasteners
Ordinary
100%
Evolution Fasteners (IE) Limited
Unit 11, FinglasBusiness Centre,Jamestown Road,Finglas, Dublin 11,Dublin
Manufacture and distribution of premium quality, high performance fasteners
Ordinary
100%
Evolution Fasteners (NL) BV
Pastoorslaan 57
Hillegom
2182 BW
Netherlands
Manufacture and distribution of premium quality, high performance fasteners
Ordinary
100%
Evolution Fasteners (HK) Limited
Unit 2212, 22/F, CC WuBuilding, 302-308Hennessy Road,Wanchai, Hong Kong
Manufacture and distribution of premium quality, high performance fasteners
Ordinary
100%


17.


Stocks

Group
Group
2023
2022
£
£

Finished goods and materials
6,731,720
4,542,821

6,731,720
4,542,821


Page 33

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

18.


Debtors

Group
Group
2023
2022
£
£


Trade debtors
3,023,135
2,951,952

Other debtors
67,080
72,799

Prepayments and accrued income
147,660
123,694

3,237,875
3,148,445



19.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
432,619
559,931
1,800
-

432,619
559,931
1,800
-



20.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Trade creditors
277,076
579,644
-
-

Amounts owed to group undertakings
-
-
729,799
517,045

Corporation tax
312,242
294,164
9
-

Other taxation and social security
365,023
400,982
-
-

Proceeds of factored debts
968,175
-
-
-

Other creditors
121,422
275,245
1,000
250,000

Accruals and deferred income
101,473
59,944
-
-

2,145,411
1,609,979
730,808
767,045


HSBC UK Bank PLC holds charges over companies within the group. These include a fixed and floating charge over all assets and a legal assignment of contract monies . The floating charge  covers all the property or undertaking of the relevant companies. This contains a negative pledge.
HSBC Invoice Finance (UK) LTD holds charges over companies within the group. These include a fixed and floating charge. The floating charge  covers all the property or undertaking of the relevant companies. This contains a negative pledge.

Page 34

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

21.


Deferred taxation


Group



2023


£






At beginning of year
(38,781)


Charged to profit or loss
(5,910)



At end of year
(44,691)

Group
Group
2023
2022
£
£

Fixed asset timing differences
(45,837)
(39,908)

Short term timing differences
1,146
1,127

(44,691)
(38,781)

Page 35

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

22.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



400,000 (2022 - 385,000) Ordinary shares of £0.10 each
40,000
38,500


During the year 15,000 shares were allotted with a nominal value of £0.10 each.


23.


Redeemable preference shares

2023
2022
£
£

Allotted, called up and fully paid


115,000 Redeemable preference shares of £1.00 each
115,000
115,000

115,000
115,000


24.


Reserves

Share premium account

Share premium includes any premium recevied on issue of share capital. Any transaction costs
associated with the issuing of shares are deducted from share premium.

Foreign exchange reserve

Foreign exchange reserve records the difference between translated values of assets and liabilities of
foreign operations into the entity's functional currency.

Other reserves

Other reserves includes initial investment advanced into subsidiary's companies prior to the restructure of
the group.

Profit and loss account

Profit and loss includes all current and prior periods retained profit.


25.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £56,178 (2022: £48,383). Contributions totalling £6,536 (2021: £6,395) were payable to the fund at the balance sheet date and are included in creditors.

Page 36

 
EVOLUTION FASTENERS (HOLDINGS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

26.


Commitments under operating leases

At 31 March 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£
£

Not later than 1 year
367,486
195,394

Later than 1 year and not later than 5 years
1,286,135
703,351

Later than 5 years
838,371
698,876

2,491,992
1,597,621

27.


Related party transactions

During the year the Group had a loan account with the directors. Advances totalled £151,461 (2022: £12,690) and credits totalled £245,737 (2022: £30,515). At the year end the directors were owed by the Group £112,444 (2022: £18,169). The amount owed to the directors was fully repaid after the year end.
At the year end there were amounts owed to Evolution Fasteners (UK) Limited by a connected party. Amounts owed were £18,789 (2022: £22,395). The amount owed to the Company was fully repaid after the year end.
The Group has taken the exemption available to not disclose transactions within the year, between wholly owned subsidiaries, within the Group.


28.


Controlling party

The ultimate controlling party is M Keisner by virtue of his shareholding.

 
Page 37