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REGISTERED NUMBER: 01671841 (England and Wales)








LINKAM SCIENTIFIC INSTRUMENTS LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2023






LINKAM SCIENTIFIC INSTRUMENTS LIMITED (REGISTERED NUMBER: 01671841)

CONTENTS OF THE FINANCIAL STATEMENTS
for the year ended 31 May 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Income and Retained Earnings 10

Balance Sheet 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 14


LINKAM SCIENTIFIC INSTRUMENTS LIMITED

COMPANY INFORMATION
for the year ended 31 May 2023







DIRECTORS: Mr A C F Kamp
Mr V B Kamp
Mr R Browne





SECRETARY: Mrs H Kenward





REGISTERED OFFICE: Unit 9 Perrywood Industrial Park
Honeycrock Lane
Salfords
Redhill
Surrey
RH1 5DZ





REGISTERED NUMBER: 01671841 (England and Wales)





AUDITORS: Bessler Hendrie LLP
Chartered Accountants
Statutory Auditor
Ashbourne House
The Guildway
Old Portsmouth Road
Guildford
Surrey
GU3 1LR

LINKAM SCIENTIFIC INSTRUMENTS LIMITED (REGISTERED NUMBER: 01671841)

STRATEGIC REPORT
for the year ended 31 May 2023


The directors present their strategic report for the year ended 31 May 2023.

REVIEW OF BUSINESS
The company's core activity remains the design, manufacture, and trading of scientific instruments, predominantly focused on those used in microscopy. Sales have been strong during this period, one that also encompasses two notable milestones, October saw the company celebrate its 40th year and April marked a year since the relocation to our new premises in Salfords Surrey.

The relocation has been a success, with the new building receiving very positive feedback from both staff and customers and having everybody under one roof has helped improve operational efficiency. At our previous location in Tadworth Surrey the three buildings that we owned have been sold, the leases on two others have been surrendered early and the final lease will run its course shortly after the year end. That will bring to an end a thirty-six-year tenure in Tadworth, and to the financial burden of buildings that are no longer required.

Now that the footfall at exhibitions is rising, we have been able to boost our marketing activities by showing at several large US and European exhibitions, that has added impetus to the roll out of recently introduced products. The end of travel restrictions to both China and Japan has also enabled face to face visits with our distribution partners in those countries. The ability to add further marketing options into the mix is a welcomed change to the restricted possibilities of the last few years and will be expanded upon in the next financial year.

We have seen significant change in the Chinese market, after several quiet years the Government there has been able to pump investment back into higher education and we have seen record sales in the region. There is though, the backdrop of the current political landscape and fear of trade tariffs on UK goods.

Supply issues have eased a little, but we are by no means back to what would traditionally have been considered "normal", that still means increased investment in stock, and at a time when inflation is driving material and salary costs. Those pressures meant having to increase our own prices, something that we tried to minimise in an effort to protect our market position, in result both our gross profit margin and operating profit have stayed within one percent of the previous financial year.

We have placed an increased amount of longer-term forward orders with our suppliers, to protect against supply issues and inflationary price rises, but have seen several of our OEM customers do the same with us, whilst good for our short-term sales orders this does carry the potential for reduced margin once the goods are shipped.

The board is pleased to report a 14% growth in customer orders, which represents some real growth above price changes. Cash flow has remained healthy throughout the year, despite the cost of finishing the refitting of our new building and dividends being paid to the shareholders. We finish the period on a sound financial footing.

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risk remains supply chain, in particular the semiconductor market. We have placed orders 12-18 months in advance to reduce the risk of shortages and continue to work closely with our suppliers to gain advanced warning of any future shortages, enabling time to seek alternative components, therefore reducing the business risk further. We anticipate that the supply chain issues will continue into 2024.

With cost-of-living and mortgage rates at levels that many of our staff have never seen before there will be further expectation on salaries, salaries that have already risen considerably over the last few years. We are confident that our packages are competitive and in line with market rates, but we are equally aware that finding new staff members is not easy, agency costs considerable and time lost to training not ideal. Like all employers we will do our best to retain our current staff where at all possible.


LINKAM SCIENTIFIC INSTRUMENTS LIMITED (REGISTERED NUMBER: 01671841)

STRATEGIC REPORT
for the year ended 31 May 2023

KEY PERFORMANCE INDICATORS
The directors considers that the key financial performance indicators are those that communicate the financial performance and strength of the Company as a whole and relate to turnover, gross profit and the net asset position.

As disclosed within the financial statements, the key reported figures are as follows:



Year Ended Year Ended
31.5.23 31.5.22
£ £
Turnover 8,080,459 7,292,054
Gross profit 3,963,816 3,538,033
Net assets 9,551,965 9,818,961

FINANCIAL RESULTS
A summary of the results of the year's trading is given on page 10 of the financial statements.

FUTURE DEVELOPMENTS
We have a number of new products currently undergoing testing in the field, several existing products being updated due to the obsolescence of certain components and we are working with some new partners on OEM projects.

There will no doubt be challenges ahead, but also plenty of opportunity.

ON BEHALF OF THE BOARD:





Mr R Browne - Director


2 November 2023

LINKAM SCIENTIFIC INSTRUMENTS LIMITED (REGISTERED NUMBER: 01671841)

REPORT OF THE DIRECTORS
for the year ended 31 May 2023


The directors present their report with the financial statements of the company for the year ended 31 May 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of manufacturing and development of scientific instruments. These accounts include the results of the company's branch located in Holland.

DIVIDENDS
Dividends of £3.6m were paid during the year. No dividends were distributed in the prior year.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 June 2022 to the date of this report.

Mr A C F Kamp
Mr V B Kamp
Mr R Browne

POLITICAL DONATIONS AND EXPENDITURE
During the year the company made charitable donations of £204 (2022: £750) to various UK charities.

DISCLOSURE IN THE STRATEGIC REPORT
As permitted by Paragraph 1A of Schedule 7 to the Large and Medium-size Companies and Groups (Accounts and Reports) Regulations 2008 certain matters which are required to be disclosed in the report of the directors' have been omitted as they are included in the Strategic Report on pages 2 to 4. These matters relate to likely future developments.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements 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 company 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

LINKAM SCIENTIFIC INSTRUMENTS LIMITED (REGISTERED NUMBER: 01671841)

REPORT OF THE DIRECTORS
for the year ended 31 May 2023


AUDITORS
The auditors, Bessler Hendrie LLP, have indicated their willingness to continue in office.

ON BEHALF OF THE BOARD:





Mr R Browne - Director


2 November 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LINKAM SCIENTIFIC INSTRUMENTS LIMITED


Opinion
We have audited the financial statements of Linkam Scientific Instruments Limited (the 'company') for the year ended 31 May 2023 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The 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 company's affairs as at 31 May 2023 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LINKAM SCIENTIFIC INSTRUMENTS LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the 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.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LINKAM SCIENTIFIC INSTRUMENTS LIMITED


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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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, and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with management. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our approach was as follows:

- We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and the sector in which it operates and determined that the significant frameworks, which are directly relevant to specific assertions in the financial statements, are those that relate to the reporting framework (FRS 102 including the Companies Act 2006) and the relevant tax regulations in the UK. This included discussions amongst the members of the audit team and tax specialists.
- We understood how the company is complying with those frameworks through enquiry with management.
- We assessed the risks related to the control environment and in particular those related to management override of controls given the size of the business.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:

- Inquire of management regarding their knowledge and actions relating to any non-compliance with laws and regulations that could affect the financial statements.
- Reviewing the financial statement disclosures and testing supporting documentation.
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
- Reading minutes of meetings of management.
- Obtaining and reading correspondence from legal and regulatory bodies including HMRC.
- In addressing the risk of fraud through management override of controls, testing the appropriateness of journal adjustments, accounting estimates and judgements made.
- Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LINKAM SCIENTIFIC INSTRUMENTS LIMITED


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.




Matthew Oliver (Senior Statutory Auditor)
for and on behalf of Bessler Hendrie LLP
Chartered Accountants
Statutory Auditor
Ashbourne House
The Guildway
Old Portsmouth Road
Guildford
Surrey
GU3 1LR

2 November 2023

LINKAM SCIENTIFIC INSTRUMENTS LIMITED (REGISTERED NUMBER: 01671841)

STATEMENT OF INCOME AND RETAINED EARNINGS
for the year ended 31 May 2023

2023 2022
Notes £    £   

TURNOVER 5 8,080,459 7,292,054

Cost of sales (4,116,643 ) (3,754,021 )
GROSS PROFIT 3,963,816 3,538,033

Administrative expenses (1,651,604 ) (1,442,669 )
2,312,212 2,095,364

Other operating income - 36,000
OPERATING PROFIT 8 2,312,212 2,131,364

Profit on sale of fixed assets 10 1,426,835 -
3,739,047 2,131,364

Interest receivable and similar income 11 22,724 245
3,761,771 2,131,609

Interest payable and similar expenses 12 (2,232 ) -
PROFIT BEFORE TAXATION 3,759,539 2,131,609

Tax on profit 13 (426,535 ) (382,876 )
PROFIT FOR THE FINANCIAL YEAR 3,333,004 1,748,733

Retained earnings at beginning of year 9,808,961 8,060,228

Dividends 14 (3,600,000 ) -

RETAINED EARNINGS AT END OF YEAR 9,541,965 9,808,961

LINKAM SCIENTIFIC INSTRUMENTS LIMITED (REGISTERED NUMBER: 01671841)

BALANCE SHEET
31 May 2023

2023 2022
Notes £    £   
FIXED ASSETS
Tangible assets 15 5,917,857 6,366,766

CURRENT ASSETS
Stocks 16 1,011,366 905,522
Debtors 17 1,915,963 1,558,895
Cash at bank and in hand 2,437,882 2,110,507
5,365,211 4,574,924
CREDITORS
Amounts falling due within one year 18 (1,343,947 ) (809,931 )
NET CURRENT ASSETS 4,021,264 3,764,993
TOTAL ASSETS LESS CURRENT LIABILITIES 9,939,121 10,131,759

PROVISIONS FOR LIABILITIES 20 (387,156 ) (312,798 )
NET ASSETS 9,551,965 9,818,961

CAPITAL AND RESERVES
Called up share capital 21 10,000 10,000
Retained earnings 22 9,541,965 9,808,961
SHAREHOLDERS' FUNDS 9,551,965 9,818,961

The financial statements were approved by the Board of Directors and authorised for issue on 2 November 2023 and were signed on its behalf by:





Mr A C F Kamp - Director


LINKAM SCIENTIFIC INSTRUMENTS LIMITED (REGISTERED NUMBER: 01671841)

CASH FLOW STATEMENT
for the year ended 31 May 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,294,779 2,887,384
Interest paid (2,232 ) -
Tax paid (28,578 ) (375,299 )
Net cash from operating activities 2,263,969 2,512,085

Cash flows from investing activities
Purchase of tangible fixed assets (590,366 ) (1,670,171 )
Sale of tangible fixed assets 2,232,012 3,400
Interest received 22,724 245
Net cash from investing activities 1,664,370 (1,666,526 )

Cash flows from financing activities
Amount introduced by directors - 1,961
Amount withdrawn by directors (964 ) -
Equity dividends paid (3,600,000 ) -
Net cash from financing activities (3,600,964 ) 1,961

Increase in cash and cash equivalents 327,375 847,520
Cash and cash equivalents at beginning of
year

2

2,110,507

1,262,987

Cash and cash equivalents at end of year 2 2,437,882 2,110,507

LINKAM SCIENTIFIC INSTRUMENTS LIMITED (REGISTERED NUMBER: 01671841)

NOTES TO THE CASH FLOW STATEMENT
for the year ended 31 May 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 3,759,539 2,131,609
Depreciation charges 232,550 156,328
Profit on disposal of fixed assets (1,425,287 ) (3,400 )
Movement in warranty provision (1,599 ) 1,919
Finance costs 2,232 -
Finance income (22,724 ) (245 )
2,544,711 2,286,211
Increase in stocks (105,844 ) (142,300 )
(Increase)/decrease in trade and other debtors (357,068 ) 586,506
Increase in trade and other creditors 212,980 156,967
Cash generated from operations 2,294,779 2,887,384

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 May 2023
31.5.23 1.6.22
£    £   
Cash and cash equivalents 2,437,882 2,110,507
Year ended 31 May 2022
31.5.22 1.6.21
£    £   
Cash and cash equivalents 2,110,507 1,262,987


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.6.22 Cash flow At 31.5.23
£    £    £   
Net cash
Cash at bank and in hand 2,110,507 327,375 2,437,882
2,110,507 327,375 2,437,882
Total 2,110,507 327,375 2,437,882

LINKAM SCIENTIFIC INSTRUMENTS LIMITED (REGISTERED NUMBER: 01671841)

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 May 2023


1. STATUTORY INFORMATION

Linkam Scientific Instruments Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


The company's principal place of business is Unit 9 Perrywood Industrial Park, Honeycrock Lane, Salfords, Redhill, Surrey, RH1 5DZ.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention. Monetary amounts in these financial statements are rounded to the nearest £.

Turnover
Turnover represents net invoiced sales of goods, namely scientific instruments, excluding value added tax.

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:

-the company has transferred to the buyer the significant risks and rewards of ownership of the goods, which is upon dispatch;
-the company 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 economic benefits associated with the transaction will flow to the company; and
-the costs incurred or to be incurred in respect of the transaction will flow to the company.

Tangible fixed assets
Tangible fixed assets are stated at their historic cost price less accumulated depreciation. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for use. The assets residual values, useful lives and depreciation methods are reviewed if there is an indication of significant change since the last reporting date.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under finance lease, over the lease term, whichever is the shorter.

Land and buildings- 2% on cost (excluding the cost attributable to land)
Plant and machinery - 33% on cost, 20% on cost and 10% on cost
Fixture and fittings - 20% on cost
Motor Vehicles - 25% on cost

On disposal, the difference between net proceeds and the carrying amount of the item disposed of is recognised in the profit and loss account.

LINKAM SCIENTIFIC INSTRUMENTS LIMITED (REGISTERED NUMBER: 01671841)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 May 2023


3. ACCOUNTING POLICIES - continued

Government grants
Government grants in the prior year relate to Minimal Financial Assistance (previously Special Drawing Rights) received under the government subsidy control regime and are recognised on the performance basis. Grants relating to revenue are recognised in income on a systematic basis over the period in which the entity recognises the related costs for which the grant is intended to compensate.

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is measured on a first in first out basis.

Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

All financial assets and liabilities are initially measured at transaction price and subsequently measured at amortised cost. The company has no financial assets nor liabilities which are measured at fair value through profit or loss.

Trade and other debtors are recognised and carried forward at invoiced amounts less provision for any doubtful debts. Bad debts are written off when identified.

Cash and cash equivalents comprise of cash at bank and in hand, and are included in the balance sheet at cost.

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

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date. Timing differences are differences between the company's taxable profits and its results as stated in the financial statements.

Deferred tax is measured at the average tax rates that are expected to apply in the periods in which timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantially enacted by the balance sheet date. Deferred tax is measured on a non-discounted basis.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


LINKAM SCIENTIFIC INSTRUMENTS LIMITED (REGISTERED NUMBER: 01671841)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 May 2023


3. ACCOUNTING POLICIES - continued

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the average rates of exchange during the year. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Leasing commitments
Rentals payable under operating leases are charged against income on a straight line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight line basis over the lease term.

Holiday pay
The company recognises an accrual for holiday entitlement earned by employees as a result of services rendered in the current period, and which employees are entitled to carry forward and use within the subsequent financial year. The provision is measured at the salary cost payable for the period of absence including employers national insurance costs.

Provisions for liabilities
Provisions are recognised in the financial statements for all expected future cash outflows arising in respect of warranty provisions.

A provision is made for the estimated liability on all products which are the subject of warranty agreements. The amount recognised is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, based on the estimated risks and uncertainties surrounding the obligation.

4. SIGNIFICANT JUDGEMENTS AND ESTIMATES

The preparation of the financial statements requires management to make judgements, estimates and assumptions in the application of accounting policies that affect reported amounts of assets, liabilities and profit and loss. In preparing these financial statements, management have made the following key judgements and estimates which are significant to the financial statements.

Impairment of fixed assets
Management assess the impairment of non-current assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

Assessment of useful lives of property, plant and equipment
The estimated useful life of assets reflect management's estimate of the period that the company intends to derive future economic benefit from the use of the company's property, plant and equipment. These are assessed annually by management with reference to the expected level of usage, historical experience and expected level of technological developments that could affect the useful economic lives of these assets.

LINKAM SCIENTIFIC INSTRUMENTS LIMITED (REGISTERED NUMBER: 01671841)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 May 2023


5. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 1,248,037 987,220
Europe 2,364,297 2,246,965
United States of America 1,218,133 1,313,669
Asia 2,942,085 2,407,056
Rest of world 307,907 337,144
8,080,459 7,292,054

6. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 2,472,870 2,252,021
Social security costs 262,302 241,799
Other pension costs 136,332 123,476
2,871,504 2,617,296

The average number of employees during the year was as follows:
2023 2022

Production and R&D 44 39
Sales and administration 13 14
57 53

LINKAM SCIENTIFIC INSTRUMENTS LIMITED (REGISTERED NUMBER: 01671841)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 May 2023


7. DIRECTORS' EMOLUMENTS




Year
Ended

Year
Ended
31.5.23 31.5.22
£ £
Emoluments etc. 279,407 266,281
Pension contributions to money purchase schemes 15,080 11,576

Information regarding the highest paid director is as follows:





YearEnded

Year
Ended
31.5.23 31.5.22
£ £
Emoluments etc. 148,420 142,595
Pension contributions to money purchase schemes - -

The number of directors to whom retirement benefits were accruing was as follows:

Defined contribution schemes 2 2

8. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Depreciation - owned assets 232,550 156,328
Loss/(profit) on disposal of fixed assets 1,548 (3,400 )
Foreign exchange differences 9,813 10,532
Overseas taxes 6,843 5,201
Auditor's remuneration (note 9) 45,425 40,439
Government grants - (36,000 )

LINKAM SCIENTIFIC INSTRUMENTS LIMITED (REGISTERED NUMBER: 01671841)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 May 2023


9. AUDITORS' REMUNERATION



Year Ended Year Ended
31.5.23 31.5.22
£ £
Fees payable to the company's auditor for the audit of the company's
annual accounts


22,250


24,500
Tax compliance services 6,700 6,200
Advisory services 10,400 4,500
Other non-audit services 6,075 5,239
45,425 40,439


10. EXCEPTIONAL ITEMS
2023 2022
£    £   
Profit on sale of fixed assets 1,426,835 -

The exceptional items relate to the sale of the three former operating units that ceased to be used once the company had moved into its new premises at Perrywood Industrial Park.

11. INTEREST RECEIVABLE AND SIMILAR INCOME
2023 2022
£    £   
Deposit account interest 19,667 245
Other interest received 3,057 -
22,724 245

12. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Interest payable 2,232 -

LINKAM SCIENTIFIC INSTRUMENTS LIMITED (REGISTERED NUMBER: 01671841)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 May 2023


13. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 342,000 160,000
Relating to prior year 8,578 (3,701 )
Total current tax 350,578 156,299

Deferred tax 75,957 226,577
Tax on profit 426,535 382,876

UK corporation tax has been charged at 20% (2022 - 19%).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 3,759,539 2,131,609
Profit multiplied by the standard rate of corporation tax in the UK of 20%
(2022 - 19%)

751,908

405,006

Effects of:
Capital allowances in excess of depreciation (57,433 ) (182,277 )
Non deductible expenses 2,372 110
Temporary timing differences 61 1,874
Research and development tax credit (145,200 ) (66,500 )
Relating to prior year 8,578 (3,701 )
Rounding 639 1,787
Movement in deferred tax 75,957 226,577
Double taxation relief (5,393 ) -
Exceptional items (204,954 ) -
Total tax charge 426,535 382,876

Corporation tax has been charged at an effective rate of 20% following the increase in the UK Corporation Tax rate to 25% from 1 April 2023.

14. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Ordinary B Shares 3,600,000 -

LINKAM SCIENTIFIC INSTRUMENTS LIMITED (REGISTERED NUMBER: 01671841)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 May 2023


15. TANGIBLE FIXED ASSETS
Fixtures
Freehold Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1 June 2022 6,255,763 1,608,534 329,909 20,140 8,214,346
Additions 266,300 306,862 17,204 - 590,366
Disposals (1,159,846 ) (213,889 ) (118,112 ) - (1,491,847 )
At 31 May 2023 5,362,217 1,701,507 229,001 20,140 7,312,865
DEPRECIATION
At 1 June 2022 474,861 1,183,728 175,567 13,424 1,847,580
Charge for year 87,893 98,025 41,597 5,035 232,550
Eliminated on disposal (386,834 ) (189,366 ) (108,922 ) - (685,122 )
At 31 May 2023 175,920 1,092,387 108,242 18,459 1,395,008
NET BOOK VALUE
At 31 May 2023 5,186,297 609,120 120,759 1,681 5,917,857
At 31 May 2022 5,780,902 424,806 154,342 6,716 6,366,766

Included in cost of land and buildings is freehold land of £1,340,000 (2022: £1,340,000) which is not depreciated

16. STOCKS
2023 2022
£    £   
Raw materials 857,366 767,954
Work-in-progress 77,826 88,466
Finished goods 76,174 49,102
1,011,366 905,522

The replacement cost of stock is not considered to be materially different from the carrying amount stated in the accounts.

Impairment losses of £120,349 (2022: £115,661) were recognised in respect of slow moving and obsolete items in costs of sale during the year.

17. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,737,972 1,236,669
Other debtors 20,265 31,353
VAT 67,779 133,128
Prepayments and accrued income 89,947 157,745
1,915,963 1,558,895

An impairment credit of £Nil (2022: £5,478) was recognised in administrative expenses against trade debtors during the year due to bad and doubtful debts now recovered.

LINKAM SCIENTIFIC INSTRUMENTS LIMITED (REGISTERED NUMBER: 01671841)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 May 2023


18. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Payments on account 149,475 80,489
Trade creditors 320,859 219,741
Tax 342,000 20,000
Social security and other taxes 58,770 59,953
Other creditors 44,973 21,060
Directors' current accounts 1,128 2,092
Accruals and deferred income 426,742 406,596
1,343,947 809,931

19. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 3,167 57,333
Between one and five years - 8,167
3,167 65,500

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

Lease payments of £57,333 (2022: £59,000) have been recognised as an expense during the year.

20. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 375,300 299,343
Provisions 11,856 13,455
387,156 312,798

Deferred Warranty
tax provision
£    £   
Balance at 1 June 2022 299,343 13,455
Utilised during year - (1,599 )
Accelerated capital allowances 67,954 -
Short term timing differences (63 ) -
Change in applicable tax rates 8,066 -
Balance at 31 May 2023 375,300 11,856

LINKAM SCIENTIFIC INSTRUMENTS LIMITED (REGISTERED NUMBER: 01671841)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 May 2023


20. PROVISIONS FOR LIABILITIES - continued

The deferred tax balance at 31 May 2023 is represented by the following: -

- Liability relating to accelerated capital allowances of £379,000 (2022: £302,980)
- Asset relating to short term timing differences of £3,700 (2022: £3,637)

Deferred tax of £43,770 is expected to reverse in the next year as accelerated capital allowances reduce.

The deferred tax liability at the year end represents accelerated capital allowances and other short term timing differences reversing within one year. Deferred tax has been calculated at the enacted rate of 25% (2022: effective rate 24.3%)

Warranty provisions relate to the provision for future costs expected to be incurred on repairing equipment that has been sold and damaged within the warranty period. The provision is expected to be utilised within 12 months of the warranty period.

21. CALLED UP SHARE CAPITAL




Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
5,100 A Ordinary share capital £1 5,100 5,100
4,900 B Ordinary share capital £1 4,900 4,900
10,000 10,000

Each share is entitled to one vote in any circumstances and each share is also entitled pari passu to dividend payments or any other distribution, including a distribution arising on wind up of the company.

22. RESERVES
Retained
earnings
£   

At 1 June 2022 9,808,961
Profit for the year 3,333,004
Dividends (3,600,000 )
At 31 May 2023 9,541,965

Retained earnings includes all current period and prior period profits and losses which are distributable.

23. PENSION COMMITMENTS

The company makes payments into a pension fund on behalf of employees. The assets of the schemes are held separately from those of the company in independently administered funds. The pension cost charge of £136,332 (2022: £123,476) represents contributions payable by the company to the fund. There were outstanding contributions at the year end of £14,850 (2022: £14,546) included in the balance sheet.

LINKAM SCIENTIFIC INSTRUMENTS LIMITED (REGISTERED NUMBER: 01671841)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 May 2023


24. OTHER FINANCIAL COMMITMENTS

At the year end the company had outstanding purchase order commitments of circa £394k with suppliers, which have been entered in to in order to manage the flow of stock in the months ahead.

25. RELATED PARTY DISCLOSURES

At 31 May 2023, included within other creditors is £1,128 (2022: £2,092) owed to the director by the company. No interest was charged in the year and the balance is repayable on demand.

During the year, a total of key management personnel compensation of £645,018 (2022: £598,332) was paid.

26. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Mr A C F Kamp.