Company registration number 04077820 (England and Wales)
AUTOKONTROL LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 AUGUST 2022
PAGES FOR FILING WITH REGISTRAR
AUTOKONTROL LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
AUTOKONTROL LIMITED
BALANCE SHEET
AS AT
30 AUGUST 2022
30 August 2022
- 1 -
30 August 2022
31 August 2021
Notes
£
£
£
£
Fixed assets
Intangible assets
3
400,000
450,000
Tangible assets
4
9,157
18,240
409,157
468,240
Current assets
Stocks
142,096
253,543
Debtors
5
333,108
194,155
Cash at bank and in hand
17,327
17,012
492,531
464,710
Creditors: amounts falling due within one year
6
(582,688)
(446,758)
Net current (liabilities)/assets
(90,157)
17,952
Total assets less current liabilities
319,000
486,192
Creditors: amounts falling due after more than one year
7
(112,621)
(160,391)
Net assets
206,379
325,801
Capital and reserves
Called up share capital
8
16,167
16,167
Share premium account
358,833
358,833
Revaluation reserve
9
318,342
352,106
Capital redemption reserve
2,500
2,500
Profit and loss reserves
10
(489,463)
(403,805)
Total equity
206,379
325,801

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 24 November 2023 and are signed on its behalf by:
CML Downing
Director
Company Registration No. 04077820
AUTOKONTROL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 AUGUST 2022
- 2 -
1
Accounting policies
Company information

Autokontrol Limited is a private company limited by shares incorporated in England and Wales. The registered office is Regency House, 45-53 Chorley New Road, Bolton, BL1 4QR.

1.1
Reporting period

Last year, in order to align with its group, the company shortened its accounting period end from 31 October 2021 to 31 August 2021, and therefore the current year ended 31 August 2022 (including relevant notes) is not directly comparable with the comparative results for the ten month period ended 31 August 2021.

 

1.2
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of intangible assets at fair value. The principal accounting policies adopted are set out below.

Autokontrol Limited is a wholly owned subsidiary of Scorpion Automotive Limited and the results of Autokontrol Limited are included in the consolidated financial statements of Scorpion Automotive Limited which are available from Scorpion House, Drumhead Road, Chorley North Business Park, Chorley, Lancs PR6 7BZ.

1.3
Going concern

At the reporting date the company had net trueassets amounting to £206,379 (2021: £325,801) and reported a loss before tax of £119,422 (2021: £178,762). The directors have prepared budgets and forecasts which demonstrate that the company can manage its working capital and generate sufficient operating cash flows to enable it to meet its liabilities for the foreseeable future. In addition Scorpion Automotive Limited has provided a letter of support confirming its intention to continue to support the company. A restructuring exercise is being undertaken in order to reduce costs.

For these reasons, the directors consider it appropriate to prepare the financial statements on the going concern basis. The accounts do not reflect the adjustments that would have been made should cash flows not be as forecast or should continuing finance not be available, namely reducing the value of assets to their realisable amounts, providing for any further liabilities which may arise and reclassifying all fixed assets and long term liabilities as current asset and liabilities respectively.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred.

AUTOKONTROL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 AUGUST 2022
1
Accounting policies
(Continued)
- 3 -
1.6
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.

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
10% Straight line
1.7
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:

Fixtures, fittings and equipment
10-20% Straight line
Motor vehicles
25% Straight line

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.

1.8
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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

AUTOKONTROL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 AUGUST 2022
1
Accounting policies
(Continued)
- 4 -
1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

AUTOKONTROL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 AUGUST 2022
1
Accounting policies
(Continued)
- 5 -
1.12
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.16
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.

1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2022
2021
Number
Number
Total
12
15
AUTOKONTROL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 AUGUST 2022
- 6 -
3
Intangible fixed assets
Patents
£
Cost or valuation
At 1 September 2021 and 30 August 2022
500,000
Amortisation and impairment
At 1 September 2021
50,000
Amortisation charged for the year
50,000
At 30 August 2022
100,000
Carrying amount
At 30 August 2022
400,000
At 31 August 2021
450,000

If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

2022
2021
£
£
Cost
476,576
476,576
Accumulated amortisation
394,918
378,682
Carrying value
81,658
97,894

The revaluation surplus is disclosed in note 9.

4
Tangible fixed assets
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
Cost
At 1 September 2021 and 30 August 2022
122,748
14,000
136,748
Depreciation and impairment
At 1 September 2021
106,024
12,484
118,508
Depreciation charged in the year
7,683
1,400
9,083
At 30 August 2022
113,707
13,884
127,591
Carrying amount
At 30 August 2022
9,041
116
9,157
At 31 August 2021
16,724
1,516
18,240
AUTOKONTROL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 AUGUST 2022
- 7 -
5
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
326,470
188,952
Prepayments and accrued income
6,638
5,203
333,108
194,155
6
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans
47,770
43,896
Trade creditors
45,042
95,615
Amounts owed to group undertakings
123,700
41,215
Taxation and social security
231,113
174,864
Invoice discounting advance
101,588
60,293
Other creditors
26,025
25,875
Accruals and deferred income
7,450
5,000
582,688
446,758

The bank loans and overdrafts are secured on the assets of the company.

 

The invoice discounting advance is secured on the company's trade debtors.

7
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
112,621
160,391

The bank loans are secured on the assets of the company.

8
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
1,616,667
1,616,667
16,167
16,167
AUTOKONTROL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 AUGUST 2022
- 8 -
9
Revaluation reserve
2022
2021
£
£
At the beginning of the year
352,106
385,870
Transfer to retained earnings
(33,764)
(33,764)
At the end of the year
318,342
352,106
10
Profit and loss reserves
2022
2021
£
£
At the beginning of the year
(403,805)
(244,807)
Loss for the year
(119,422)
(178,762)
Dividends declared and paid in the year
-
(14,000)
Transfer from revaluation reserve
33,764
33,764
At the end of the year
(489,463)
(403,805)
11
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Nilesh Modhvadia
Statutory Auditor:
Cowgill Holloway LLP
12
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:

2022
2021
£
£
35,425
54,230
13
Related party transactions

The company has taken advantage of the exemption available in FRS 102 "Related party disclosures" whereby it has not disclosed transactions with the parent company or any wholly owned subsidiary undertaking of the group.

AUTOKONTROL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 AUGUST 2022
- 9 -
14
Directors' transactions

The company paid rents of £12,000 (2021: £6,000) to Downing & Downing on its trading premises at a commercial rent.

15
Parent company

The company is a wholly owned subsidiary of Scorpion Automotive Limited.

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