ADVANCED SMOKE GROUP LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
ADVANCED SMOKE GROUP LIMITED
COMPANY INFORMATION
Directors
R E Royle
D J Royle
Company number
06709805 (England and Wales)
Registered office
46 Kenilworth Drive
Oadby Industrial Estate
Leicester
LE2 5LG
Accountants
Ashworth Moulds
11 Nicholas Street
Burnley
Lancashire
BB11 2AL
ADVANCED SMOKE GROUP LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 10
ADVANCED SMOKE GROUP LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
3
59,871
1,776
Tangible assets
4
108,317
123,440
168,188
125,216
Current assets
Stocks
52,188
90,443
Debtors
5
1,110,920
863,148
Cash at bank and in hand
255
93
1,163,363
953,684
Creditors: amounts falling due within one year
6
(927,826)
(804,663)
Net current assets
235,537
149,021
Total assets less current liabilities
403,725
274,237
Creditors: amounts falling due after more than one year
7
(21,667)
(30,411)
Net assets
382,058
243,826
Capital and reserves
Called up share capital
8
2
2
Profit and loss reserves
382,056
243,824
Total equity
382,058
243,826
The notes on pages 3 - 10 form an integral part of these financial statements.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial Period ended 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the Period in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
- 1 -
ADVANCED SMOKE GROUP LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2023
31 March 2023
The financial statements were approved by the board of directors and authorised for issue on 27 October 2023 and are signed on its behalf by:
R E Royle
D J Royle
Director
Director
Company Registration No. 06709805
- 2 -
ADVANCED SMOKE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
Company information
Advanced Smoke Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is 46 Kenilworth Drive, Oadby Industrial Estate, Leicester, LE2 5LG.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
- 3 -
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.
Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly labour rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
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.
ADVANCED SMOKE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
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:
Patents & licences
33.3% straight line
Development costs
20% 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:
Leasehold improvements
10% straight line
Plant and equipment
15% reducing balance
Fixtures and fittings
15% reducing balance
Motor vehicles
15% 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.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.8
Stocks
- 4 -
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.
ADVANCED SMOKE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
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.
A financial instrument is a contract giving rise to a financial asset (such as trade and other debtors, cash and bank balances) or a financial liability (such as trade and other creditors, bank and other loans, hire purchase and lease creditors) or an equity instrument (such as ordinary or preference shares).
Financial instruments are recognised in the company's balance sheet when the company becomes a party to the contractual provisions of the instrument.
All the company's financial instruments are basic financial instruments and are recognised at amortised cost using the effective interest method.
Amortised cost: the original transaction value, less amounts settled, less any adjustment for impairment.
Effective interest method: where a financial instrument falls due more than 12 months after the balance sheet date and is subject to a rate of interest which is below a market rate, the original transaction value is discounted using a market rate of interest to give the net present value of future cash flows.
Derecognition of financial assets
Financial assets cease to be recognised only when the contractual rights to the cash flows expire, or when substantially all the risks and rewards of ownership are transferred to another entity.
Financial liabilities cease to be recognised when and only when the company's obligations are discharged, cancelled, or they expire.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
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.
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 reserves, in which case the deferred tax is also dealt with in reserves.
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.
- 5 -
ADVANCED SMOKE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the Period was:
2023
2022
Number
Number
Total
28
31
- 6 -
ADVANCED SMOKE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
3
Intangible fixed assets
Patents & licences
Development costs
Total
£
£
£
Cost
At 1 September 2022
20,420
228,875
249,295
Additions
59,790
59,790
At 31 March 2023
20,420
288,665
309,085
Amortisation and impairment
At 1 September 2022
18,644
228,875
247,519
Amortisation charged for the Period
1,695
1,695
At 31 March 2023
20,339
228,875
249,214
Carrying amount
At 31 March 2023
81
59,790
59,871
At 31 August 2022
1,776
1,776
4
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 September 2022
68,312
54,554
40,636
155,743
319,245
Disposals
(15,362)
(15,362)
At 31 March 2023
68,312
54,554
25,274
155,743
303,883
Depreciation and impairment
At 1 September 2022
48,564
45,887
29,936
71,418
195,805
Depreciation charged in the Period
3,985
759
936
7,378
13,058
Eliminated in respect of disposals
(13,297)
(13,297)
At 31 March 2023
52,549
46,646
17,575
78,796
195,566
Carrying amount
At 31 March 2023
15,763
7,908
7,699
76,947
108,317
At 31 August 2022
19,748
8,667
10,700
84,325
123,440
- 7 -
ADVANCED SMOKE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
344,388
76,352
Corporation tax recoverable
2,937
Other debtors
549,398
615,006
Prepayments and accrued income
10,255
72,468
906,978
763,826
Deferred tax asset
19,218
6,809
926,196
770,635
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
184,724
92,513
Total debtors
1,110,920
863,148
6
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
290,816
281,064
Obligations under finance leases
11,472
19,557
Trade creditors
367,797
371,829
Corporation tax
(2,937)
Other taxation and social security
28,348
29,854
Other creditors
13,207
47,159
Directors loan accounts
55,745
47,875
Accruals and deferred income
160,441
10,262
927,826
804,663
The bank overdraft is secured by fixed and floating charges over the company's undertakings and assets.
Bank loans relate to a Bounce Back loan payable over six years. Interest is chargeable 12 months after the loan being drawn down. This loan is 100% government backed.
Hire purchase agreements are secured against the assets to which they relate.
- 8 -
ADVANCED SMOKE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
7
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
21,667
27,500
Obligations under finance leases
2,911
21,667
30,411
8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
2
2
2
2
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
£
£
142,267
193,250
10
Prior period adjustment
During the period the directors have reconsidered the classification of payroll and interest related expenditure together with the timing of when debtors and creditors fall due. In addition the directors have identified that the VAT debtor had previously been overstated in both the year ended 31 March 21 and the period to 31 August 22 and have taken the opportunity to correct these errors . This has resulted in a prior period restatement, the effects of which are noted below:
Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Aug 2022
£
£
£
Current assets
Debtors due after one year
673,771
(581,258)
92,513
Debtors due within one year
204,874
565,761
770,635
Creditors due within one year
Other creditors
(466,863)
(10,262)
(477,125)
Creditors due after one year
Other creditors
(10,262)
10,262
-
Net assets
259,323
(15,497)
243,826
Capital and reserves
Profit and loss reserves
259,321
(15,497)
243,824
- 9 -
ADVANCED SMOKE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
10
Prior period adjustment
(Continued)
Reconciliation of changes in equity
1 April
31 August
2021
2022
£
£
Adjustments to prior Period
Correction of VAT debtor
(2,946)
(15,497)
Equity as previously reported
196,282
259,323
Equity as adjusted
193,336
243,826
Analysis of the effect upon equity
Profit and loss reserves
(2,946)
(15,497)
- 10 -
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