REGISTERED NUMBER: 13195197 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 March 2023 |
for |
Atkinson Equipment Group Limited |
REGISTERED NUMBER: 13195197 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 March 2023 |
for |
Atkinson Equipment Group Limited |
Atkinson Equipment Group Limited (Registered number: 13195197) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 March 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
Atkinson Equipment Group Limited |
Company Information |
for the Year Ended 31 March 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
Atkinson Equipment Group Limited (Registered number: 13195197) |
Group Strategic Report |
for the Year Ended 31 March 2023 |
The directors present their strategic report of the company and the group for the year ended 31 March 2023. |
The company is a holding company, therefore the principal activity is the receipt of group dividends and payment of dividends to shareholders. The principal activity of the group in the year under review was that of precision engineers, storage, warehousing, distribution and wholesaling agents. |
REVIEW OF BUSINESS |
The Directors are extremely pleased with the performance for the year with the results showing another strong set of results against a backdrop of an ongoing difficult economic and political climate, both domestically in the UK and more widely on a global scale. The Group has continued to supply its wide and varied customer base and the continuing factor that we are so diverse has helped us achieve this result. |
Supply related challenges and continued inflationary price influences have had to be overcome and this has required strong leadership from our Directors and Operational Senior Management Team to constantly monitor the situation. |
We are a key distributor to many different markets and despite the issues highlighted above, we have, in the main, maintained continuity of supply of products where possible and we are extremely pleased as a business to have achieved this. Whilst the future certainly remains very uncertain, our strong infrastructure leaves us well positioned to deal with whatever may happen next. |
Operating profitability is healthy and as has been stated before this is because of the sound business principles applied by an experienced, stable, and well-managed management team and well-respected workforce. |
As highlighted in previous years, the Board's primary focus, as always, has been in providing top quality service and |
products to our customers. This determination remains unchanged and is a key element in our success. |
We have since the year end completed the acquisition of a competitor in the same plastic and metal packaging distribution sector as our main packaging subsidiary. We see this as a major strategic initiative and believe these businesses will complement each other. |
In addition to this acquisition, we have also purchased a sophisticated precision engineering manufacturing company, supplying some of the most demanding sectors of industry. This will also work alongside our other long standing engineering company. |
Both acquisitions show our intent to continue with growth and development in different areas and we hope to benefit from economies of scale with these acquisitions. |
With the balance sheet showing a strong position, this asset base will continue to enable the company to push ahead with confidence and look to continue the reinvestment programme in our various Group Companies. In addition, our distribution business's multi depot setup enables us to more efficiently service the UK market and we continue to benefit from the economies of scale that comes with effective management of this set-up. |
Our Consolidated Balance Sheet continues to show a negative goodwill position which is where the previous majority shareholder has sold most of his shares back to the Group at a discounted value. |
Research and Development |
Research and Development is something that is constantly being performed by the Group. This can be in relation to |
potential new products or initiatives that key customers wish us to look at on their behalf. |
Within the Packaging Company we are continuing to work with our Suppliers about 'greener' alternatives and whilst we are not market-makers we have been made aware of new products as "Sustainable Packaging" that is increasingly important to consumers. We can offer 100% recyclable new plastics, as plastics can be made from strictly controlled renewable raw materials. |
Atkinson Equipment Group Limited (Registered number: 13195197) |
Group Strategic Report |
for the Year Ended 31 March 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors have identified the following principal risks and uncertainties affecting the company: |
Market risk: Both the Product and Engineering Divisions within the Parent Company are affected by the market price of the stock or raw materials they purchase. There is little control we can directly influence over this other than maintain regular dialogue with our long-standing suppliers. |
Also, the Wholesale and Distribution business is affected by the market price of raw materials of both plastic and metal in the products it purchases from our manufacturing suppliers. There is little control we can directly influence over this other than maintain regular dialogue with our long-standing suppliers. |
Legislative and regulatory risk: There are no new changes that have been introduced, but the Company does monitor any changes in legislative or regulatory risk. |
Actions of competitors: As has been proven with our recent investments, the directors continue to explore for further products that it can sell across the Group. Our Sales and Marketing teams are initiative-taking in looking for new opportunities especially in markets that we have not previously been involved in. |
Operational risks: Cover is in place for the provision of general and fleet insurance for the operational aspects of the business. Much of the Group also has a trade credit insurance policy over its book debts and in conjunction with a strictly controlled credit function we endeavour to minimise the risk of any bad debts. |
In respect of our IT infrastructure there are robust controls to safeguard our data, provide backup information in the |
event of disaster recovery and our hardware and software is monitored annually. |
KEY PERFORMANCE INDICATORS |
Year ended31 Mar 2023 |
Period 11 Feb 2021 to 31 Mar 2022 |
Turnover (£) | 32,331,221 | 34,635,581 |
Gross profit (£) | 8,036,626 | 8,237,375 |
Gross profit margin (%) | 24.86 | 23.78 |
Profit before tax (£) | 3,803,470 | 5,082,320 |
As stated above during what has been challenging times, we have managed to maintain our turnover, gross profit margin percentage, and importantly grow our profit before tax. Our ongoing review of customer service means we are continually monitoring our efficiency levels which may result in changes to the depots out of which customers are serviced. |
ON BEHALF OF THE BOARD: |
Atkinson Equipment Group Limited (Registered number: 13195197) |
Report of the Directors |
for the Year Ended 31 March 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2023. |
DIVIDENDS |
Interim dividends per share on the Ordinary A £1 shares were paid during the year totalling NIL (2022: £42,275). The directors recommend that no final dividend be paid on these shares. |
Interim dividends per share on the Ordinary B £1 shares were paid during the year totalling £360,983 (2022: £259,612). The directors recommend that no final dividend be paid on these shares. |
Interim dividends per share on the Ordinary C £1 shares were paid during the year totalling NIL (2022: £42,275). The directors recommend that no final dividend be paid on these shares. |
The total distribution of dividends for the period ended 31 March 2023 will be £360,983 (2022: £344,162). |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
The company and group use various financial instruments including loans, cash equity capital and various items such as trade debtors and creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company and group's operations. |
The existence of these financial instruments exposes the company and group to a number of financial risks which are described in more detail below. |
The directors review and agree policies for managing the financial risks and these are summarised below. |
Market risk |
Market risk encompasses three types of risk being price risk, interest rate risk and currency risk. |
Price risk |
The company and group operates in a competitive market. If the company and group does not continue to compete effectively by developing its product range and responding to activities in the market it could lose customers and its results, cash flow and financial conditions could adversely be affected. |
Interest rate risk |
Surplus cash generated by the company and group is invested in interest bearing deposit accounts. Company and group bank borrowings incur interest at market rates. The company and group is therefore exposed to interest rate risk which is managed by a review of facilities available to the company and group. |
Currency risk |
The company and group makes purchases from a small number of suppliers whose invoices are denominated in currencies other than sterling. The most frequently used currencies other than sterling are the Euro and the US Dollar, with separate bank accounts being maintained for each with any currency fluctuation being transferred to the profit and loss account. |
Credit risk |
The company and group's principal assets are cash deposits and trade debtors. The credit risk associated with cash deposits is limited as the accounts are held with major UK high street banks only. The principal credit risk arises from trade debtors and the company and group manages closely its exposure to bad debts. |
Liquidity risk |
The company and group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. |
The company and group policy throughout the year has been to hold cash balances in readily accessible cash deposits and utilise leasing facilities for tangible asset acquisitions. |
Atkinson Equipment Group Limited (Registered number: 13195197) |
Report of the Directors |
for the Year Ended 31 March 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 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 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Sumer Audit, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Atkinson Equipment Group Limited |
Opinion |
We have audited the financial statements of Atkinson Equipment Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and 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 group's and of the parent company 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 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 group's and 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group Strategic Report and the Report of the Directors 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 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 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. |
Report of the Independent Auditors to the Members of |
Atkinson Equipment Group Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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 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: |
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery, employment law and company legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements of the company. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and taxation legislation. |
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure, and management bias in accounting estimates and judgemental areas of the financial statements such as the valuation of inter-company balances, the finances charges that have been imputed thereon, and the calculation of deferred income. Audit procedures performed by the audit engagement team included: |
- Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud; |
- Understanding of management's internal controls designed to prevent and detect irregularities, and fraud; |
- Reviewing the Company's legal costs to check for non-compliance with laws and regulations and fraud; |
- Reviewing Board of Directors minutes; |
- Review of tax compliance with the involvement of our tax specialists in the audit; |
- Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing of |
expenses; |
- Testing transactions entered into outside of the normal course of the company's business; and |
- Identifying and testing journal entries, in particular any journal entries with fraud characteristics such as journals with |
round numbers. |
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the 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 |
Atkinson Equipment Group 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. |
for and on behalf of |
Statutory Auditor |
Chartered Accountants |
County Gate |
County Way |
Trowbridge |
Wiltshire |
BA14 7FJ |
Atkinson Equipment Group Limited (Registered number: 13195197) |
Consolidated |
Income Statement |
for the Year Ended 31 March 2023 |
Period |
11.2.21 |
Year Ended | to |
31.3.23 | 31.3.22 |
as restated |
Notes | £ | £ |
TURNOVER | 4 | 32,331,221 | 34,635,581 |
Cost of sales | 24,294,595 | 26,398,206 |
GROSS PROFIT | 8,036,626 | 8,237,375 |
Administrative expenses | 4,313,635 | 4,063,720 |
3,722,991 | 4,173,655 |
Other operating income | 5 | 165,073 | 329,493 |
OPERATING PROFIT | 7 | 3,888,064 | 4,503,148 |
Interest receivable and similar income | 21,828 | 3,809 |
3,909,892 | 4,506,957 |
Gain/loss on revaluation of investment property |
- |
716,519 |
3,909,892 | 5,223,476 |
Interest payable and similar expenses | 8 | 106,422 | 141,156 |
PROFIT BEFORE TAXATION | 3,803,470 | 5,082,320 |
Tax on profit | 9 | 416,337 | 816,777 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 3,387,133 | 4,265,543 |
Atkinson Equipment Group Limited (Registered number: 13195197) |
Consolidated |
Other Comprehensive Income |
for the Year Ended 31 March 2023 |
Period |
11.2.21 |
Year Ended | to |
31.3.23 | 31.3.22 |
as restated |
Notes | £ | £ |
PROFIT FOR THE YEAR | 3,387,133 | 4,265,543 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
3,387,133 |
4,265,543 |
Total comprehensive income attributable to: |
Owners of the parent | 3,387,133 | 4,265,543 |
Atkinson Equipment Group Limited (Registered number: 13195197) |
Consolidated Balance Sheet |
31 March 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 13 | (785,234 | ) | (1,641,852 | ) |
Tangible assets | 14 | 2,613,113 | 2,782,892 |
Investments | 15 | - | - |
Investment property | 16 | 350,000 | 1,386,519 |
2,177,879 | 2,527,559 |
CURRENT ASSETS |
Stocks | 17 | 4,352,723 | 4,389,581 |
Debtors | 18 | 5,603,445 | 6,296,625 |
Investments | 19 | 63,735 | 63,735 |
Cash at bank | 4,606,946 | 1,492,212 |
14,626,849 | 12,242,153 |
CREDITORS |
Amounts falling due within one year | 20 | 5,518,337 | 5,767,916 |
NET CURRENT ASSETS | 9,108,512 | 6,474,237 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
11,286,391 |
9,001,796 |
CREDITORS |
Amounts falling due after more than one year |
21 |
(1,348,317 |
) |
(2,079,061 |
) |
PROVISIONS FOR LIABILITIES | 25 | (313,574 | ) | (417,683 | ) |
NET ASSETS | 9,624,500 | 6,505,052 |
CAPITAL AND RESERVES |
Called up share capital | 26 | 440 | 440 |
Revaluation reserve | 27 | - | 557,385 |
Other reserves | 27 | 595,367 | 472,634 |
Other reserves | 27 | 1,969,440 | 1,969,440 |
Retained earnings | 27 | 7,059,253 | 3,505,153 |
9,624,500 | 6,505,052 |
The financial statements were approved by the Board of Directors and authorised for issue on 21 November 2023 and were signed on its behalf by: |
S T Pearce - Director |
Atkinson Equipment Group Limited (Registered number: 13195197) |
Company Balance Sheet |
31 March 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 13 |
Tangible assets | 14 |
Investments | 15 |
Investment property | 16 |
CURRENT ASSETS |
Debtors | 18 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 20 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
21 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 26 |
Other reserves | 27 |
Retained earnings | 27 |
Company's profit for the financial year | 1,380,302 | 3,658,566 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Atkinson Equipment Group Limited (Registered number: 13195197) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 March 2023 |
Called up |
share | Retained | Revaluation |
capital | earnings | reserve |
£ | £ | £ |
Changes in equity |
Issue of share capital | 440 | - | - |
Dividends | - | (344,161 | ) | - |
Total comprehensive income | - | 3,849,314 | 557,385 |
Balance at 31 March 2022 | 440 | 3,505,153 | 557,385 |
Changes in equity |
Dividends | - | (360,983 | ) | - |
Total comprehensive income | - | 3,915,083 | (557,385 | ) |
Balance at 31 March 2023 | 440 | 7,059,253 | - |
Other | Other | Total |
reserves | reserves | equity |
£ | £ | £ |
Changes in equity |
Issue of share capital | - | - | 440 |
Dividends | - | - | (344,161 | ) |
Total comprehensive income | 472,634 | - | 4,879,333 |
Consolidation Reserve | - | 1,969,440 | 1,969,440 |
Balance at 31 March 2022 | 472,634 | 1,969,440 | 6,505,052 |
Changes in equity |
Dividends | - | - | (360,983 | ) |
Total comprehensive income | 122,733 | - | 3,480,431 |
Balance at 31 March 2023 | 595,367 | 1,969,440 | 9,624,500 |
Atkinson Equipment Group Limited (Registered number: 13195197) |
Company Statement of Changes in Equity |
for the Year Ended 31 March 2023 |
Called up |
share | Retained | Other | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
Changes in equity |
Issue of share capital | - | - |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2022 | 440 | 3,455,561 | 3,928,635 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) |
Balance at 31 March 2023 |
Atkinson Equipment Group Limited (Registered number: 13195197) |
Consolidated Cash Flow Statement |
for the Year Ended 31 March 2023 |
Period |
11.2.21 |
Year Ended | to |
31.3.23 | 31.3.22 |
as restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 31 | 3,864,569 | 3,194,021 |
Finance costs paid | (857 | ) | - |
Government grants received | - | 40,682 |
Tax paid | (601,233 | ) | (725,389 | ) |
Net cash from operating activities | 3,262,479 | 2,509,314 |
Cash flows from investing activities |
Purchase of intangible fixed assets | - | 2,569,855 |
Purchase of tangible fixed assets | (270,879 | ) | (3,093,523 | ) |
Purchase of investment property | - | (670,000 | ) |
Sale of tangible fixed assets | 358,245 | 9,093 |
Sale of investment property | 1,036,519 | - |
Cash on Acquisition of Subsidiaries | - | 4,297,963 |
Consolidation Effect | - | 20,619 |
Interest received | 21,828 | 3,809 |
Net cash from investing activities | 1,145,713 | 3,137,816 |
Cash flows from financing activities |
New loans in year | - | (276,688 | ) |
Net Capital repayments in year | (979,863 | ) | (3,585,504 | ) |
Amount withdrawn by directors | 47,388 | 50,995 |
Share issue | - | 440 |
Equity dividends paid | (360,983 | ) | (344,161 | ) |
Net cash from financing activities | (1,293,458 | ) | (4,154,918 | ) |
Increase in cash and cash equivalents | 3,114,734 | 1,492,212 |
Cash and cash equivalents at beginning of year |
32 |
1,492,212 |
- |
Cash and cash equivalents at end of year | 32 | 4,606,946 | 1,492,212 |
Atkinson Equipment Group Limited (Registered number: 13195197) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 March 2023 |
1. | STATUTORY INFORMATION |
Atkinson Equipment Group Limited is a |
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 as modified by the revaluation of certain assets. |
The principal accounting policies applied in the preparation of these financial statements are set out below. |
These policies have been consistently applied to all the years presented, unless otherwise stated. |
Basis of consolidation |
The consolidated financial statements incorporate the financial statements of the company and all group |
undertakings. These are adjusted, where appropriate, to conform to group accounting policies. |
Acquisitions are accounted for under the acquisition method and goodwill on consolidation is capitalised and |
written off over three years from the date of acquisition. The results of the companies acquired or disposed are included in the profit and loss account after or up to the date that control passes respectively. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Significant judgements and estimates |
In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting |
estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the |
financial statements are described below: |
Investment property - Investment property is stated at fair value based upon either an independent third party |
valuer or a valuation by directors who have experience in the location and category of property valued. The |
valuer uses observable market prices adjusted as necessary for any difference in the future, location or condition of the specific asset. |
Trade and other receivables - The allowance for doubtful accounts involves significant management judgement and review of individual receivables based on individual customer creditworthiness, current economic trends and analysis of historical bad debts on a portfolio basis. |
Stock provisions - Significant estimates are involved in the determination of stock provisions. Management |
exercise significant judgement in determining whether costs of stock items can be recovered. A provision is |
made where a loss can be reliably estimated. |
Investments - Investments are stated at their historic cost to the company less, where appropriate, impairment provisions for any permanent or temporary diminution in value. The determination of the recoverable amount of an investment involves the use of estimates by management. |
Atkinson Equipment Group Limited (Registered number: 13195197) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
3. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable. Turnover is reduced for |
customer returns, rebates or other similar allowances and is net of value added taxes. Turnover includes |
revenue earned from the sale of goods and from the rendering of services. |
Revenue 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; |
- the company retains neither continuing managerial involvement to the degree 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 can be measured reliably. |
Specifically, revenue from the sale of goods is primarily recognised upon delivery of goods to customers. |
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. |
The stage of completion of the contract is measured by comparing costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably. |
Goodwill |
In order to facilitate the retirement of certain directors and shareholders, the group underwent a reorganisation during the period. An amount of negative goodwill was recognised by the group in its consolidated account as a result and the directors have elected for this amount to be amortised over a period of three years with effect from March 2021. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
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 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 shorter. |
Long leasehold | - over period of lease |
Plant and machinery | - 20% on straight line, 20% on reducing balance, 15% on reducing balance |
Fixtures and fittings | - 33% on straight line, 30% on reducing balance, 15% on reducing balance and 10% on reducing balance |
Motor vehicles | - 25% on reducing balance and 35% on reducing balance |
Long leasehold improvements | - 10% on straight line and 15% on reducing balance |
The long leasehold building leases vary in length between 80 and 94 years. |
Freehold land is not depreciated. |
Impairment of non financial assets |
At each reporting date, the company reviews the carrying amounts of its property, plant and equipment to determine whether there is any indication that any items of property, plant and equipment have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the profit and loss. |
If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in the profit and loss. |
Investment property |
Investment property is carried at fair value. Revaluation surpluses are recognised in the income statement. Deferred taxation is provided on these gains at the rate expected to apply when the property is sold |
Atkinson Equipment Group Limited (Registered number: 13195197) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
3. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Costs, which comprise direct production costs, are based on the method most appropriate to the type of inventory class, but usually on a first-in-first-out basis. Overheads are charged to profit or loss as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs. |
When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of stocks recognised as an expense in the period in which the reversal occurs. |
Work in progress is valued on the basis of direct costs plus attributable overheads based on normal levels of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Transactions in currencies other than the functional currency of the company are recorded at the rate of exchange on the date the transaction occurred. Monetary items denominated in other currencies are translated at the rate prevailing at the end of the reporting period. All differences are taken to the statement of comprehensive income. Non-monetary items that are measured at historic cost in a foreign currency are not retranslated. |
Hire purchase and leasing commitments |
Assets that are held by Company under leases which transfer to the company substantially all the risks and rewards of ownership are classified as being held under finance leases. Leases which do not transfer substantially all the risks and rewards of ownership to the company are classified as operating leases. |
Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Atkinson Equipment Group Limited (Registered number: 13195197) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has chosen to adopt the requirements of sections 11 and 12 of FRS 102 in respect of the measurement and disclosure of financial instruments. |
Trade and other debtors |
Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the balance sheet, bank overdrafts are shown within borrowings or current liabilities. |
Impairment of financial assets |
Financial assets, are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected. |
For all other financial assets, objective evidence of impairment could include: |
- significant financial difficulty of the issuer or counterparty; or |
- breach of contract, such as a default or delinquency in interest or principal payments; or |
- it becoming probable that the borrower will enter bankruptcy or financial re-organisation; or |
- the disappearance of an active market for that financial asset because of financial difficulties. |
For certain categories of financial asset, such as trade receivables, assets that are assessed not to be impaired individually are, in addition, assessed for impairment on a collective basis. Objective evidence of impairment for a portfolio of receivables could include the company's past experience of collecting payments, an increase in the number of delayed payments in the portfolio past the average credit period of 30 days, as well as observable changes in national or local economic conditions that correlate with default on receivables. |
For financial assets carried at amortised cost, the amount of the impairment loss recognised is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate. |
For financial assets carried at cost, the amount of the impairment loss is measured as the difference between the asset's carrying amount and the present value of the estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment loss will not be reversed in subsequent periods. |
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables, where the carrying amount is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in profit or loss. |
For financial assets measured at amortised cost, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised. |
Atkinson Equipment Group Limited (Registered number: 13195197) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
3. | ACCOUNTING POLICIES - continued |
Trade and other creditors |
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. |
Related parties |
For the purposes of these financial statements, a party is considered to be related to the company if: |
(i) the party has the ability, directly or indirectly, through one or more intermediaries, to control the company or exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the company; |
(ii) the company and the party are subject to common control; |
(iii) the party is an associate of the company or a joint venture in which the company is a venturer; |
(iv) the party is a member of key management personnel of the company or the company's parent, or a close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals; |
(v) the party is a close family member of a party referred to in (i) or is an entity under the control, joint control or significant influence of such individuals; or |
(vi) the party is a post-employment benefit plan which is for the benefit of employees of the company or of any entity that is a related party of the company. |
Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity. |
Current asset investments |
Current asset investments are stated at the lower of cost and net realisable value. |
Provisions |
Provisions are recognised when the company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense. |
Dividend Income |
Dividend income is recognised when the right to receive payment is established. |
Distributions to equity holders |
Dividends and other distributions to company’s shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the company’s shareholders. These amounts are recognised in the statement of changes in equity. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
Period |
11.2.21 |
Year Ended | to |
31.3.23 | 31.3.22 |
as restated |
£ | £ |
Precision engineers | 3,446,159 | 4,043,331 |
Distribution/wholesaling agent | 28,885,062 | 30,592,250 |
32,331,221 | 34,635,581 |
Atkinson Equipment Group Limited (Registered number: 13195197) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
4. | TURNOVER - continued |
An analysis of turnover by geographical market is given below: |
Period |
11.2.21 |
Year Ended | to |
31.3.23 | 31.3.22 |
as restated |
£ | £ |
United Kingdom | 31,979,414 | 34,116,176 |
Europe | 308,175 | 482,670 |
Rest of World | 43,632 | 36,735 |
32,331,221 | 34,635,581 |
5. | OTHER OPERATING INCOME |
Period |
11.2.21 |
Year Ended | to |
31.3.23 | 31.3.22 |
as restated |
£ | £ |
Rents received | 15,005 | 38,259 |
Sundry receipts | 150,068 | 126,252 |
Management Charges Received | - | 124,300 |
Government grants | - | 40,682 |
165,073 | 329,493 |
6. | EMPLOYEES AND DIRECTORS |
Period |
11.2.21 |
Year Ended | to |
31.3.23 | 31.3.22 |
as restated |
£ | £ |
Wages and salaries | 4,174,345 | 4,446,002 |
Social security costs | 426,261 | 432,867 |
Other pension costs | 297,295 | 304,944 |
4,897,901 | 5,183,813 |
The average number of employees during the year was as follows: |
Period |
11.2.21 |
Year Ended | to |
31.3.23 | 31.3.22 |
as restated |
Direct Staff | 65 | 83 |
Administrative Staff | 60 | 48 |
Period |
11.2.21 |
Year Ended | to |
31.3.23 | 31.3.22 |
as restated |
£ | £ |
Directors' remuneration | 193,524 | 300,334 |
Directors' pension contributions to money purchase schemes | 41,324 | 44,541 |
Atkinson Equipment Group Limited (Registered number: 13195197) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
6. | EMPLOYEES AND DIRECTORS - continued |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 4 | 4 |
7. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
Period |
11.2.21 |
Year Ended | to |
31.3.23 | 31.3.22 |
as restated |
£ | £ |
Hire of plant and machinery | 355 | 525 |
Depreciation - owned assets | 354,880 | 380,631 |
Profit on disposal of fixed assets | (272,377 | ) | (9,093 | ) |
Goodwill amortisation | (856,618 | ) | (928,003 | ) |
Auditors' remuneration | 14,525 | - |
The auditing of accounts of any associate of the company | 48,385 | - |
Other non- audit services | - | 31,452 |
Foreign exchange differences | (29,141 | ) | 15,404 |
Cost of inventories recognised as expense | 20,709,760 | 23,287,158 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
11.2.21 |
Year Ended | to |
31.3.23 | 31.3.22 |
as restated |
£ | £ |
Bank interest | 38 | - |
Loan | 105,565 | 141,156 |
Hire purchase | 819 | - |
106,422 | 141,156 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
Period |
11.2.21 |
Year Ended | to |
31.3.23 | 31.3.22 |
as restated |
£ | £ |
Current tax: |
UK corporation tax | 557,447 | 652,844 |
Deferred tax | (141,110 | ) | 163,933 |
Tax on profit | 416,337 | 816,777 |
Atkinson Equipment Group Limited (Registered number: 13195197) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
9. | TAXATION - continued |
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: |
Period |
11.2.21 |
Year Ended | to |
31.3.23 | 31.3.22 |
as restated |
£ | £ |
Profit before tax | 3,803,470 | 5,082,320 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
722,659 |
965,641 |
Effects of: |
Expenses not deductible for tax purposes | (154,995 | ) | (177,717 | ) |
Income not taxable for tax purposes | (541 | ) | - |
Capital allowances in excess of depreciation | (7,127 | ) | (18,038 | ) |
Utilisation of tax losses | 29,355 | 29,710 |
R&D Deduction | - | (9,379 | ) |
Deferred Tax Movement | (141,110 | ) | 166,619 |
Group Consolidation Effect | - | (1,082 | ) |
Group Relief | - | (2,838 | ) |
Gain on Revaluation | - | (136,139 | ) |
Chargeable Gain | 99,217 | - |
Double Taxation Relief | (131,121 | ) | - |
Total tax charge | 416,337 | 816,777 |
10. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
11. | DIVIDENDS |
Period |
11.2.21 |
Year Ended | to |
31.3.23 | 31.3.22 |
as restated |
£ | £ |
shares of each |
Interim | 360,983 | 344,161 |
12. | PRIOR YEAR ADJUSTMENT |
The Directors have agreed to include the amortisation of goodwill (2022: -£928,003) in administration costs. There is no impact on the group profit for the year. |
Atkinson Equipment Group Limited (Registered number: 13195197) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
13. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 | (2,569,855 | ) |
AMORTISATION |
At 1 April 2022 | (928,003 | ) |
Amortisation for year | (856,618 | ) |
At 31 March 2023 | (1,784,621 | ) |
NET BOOK VALUE |
At 31 March 2023 | (785,234 | ) |
At 31 March 2022 | (1,641,852 | ) |
14. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | Long | to | Plant and |
property | leasehold | property | machinery |
£ | £ | £ | £ |
COST |
At 1 April 2022 | 1,084,211 | 277,975 | 23,547 | 842,630 |
Additions | - | - | - | 78,888 |
Disposals | - | - | - | (223,240 | ) |
Reclassification/transfer | - | - | - | (102,329 | ) |
At 31 March 2023 | 1,084,211 | 277,975 | 23,547 | 595,949 |
DEPRECIATION |
At 1 April 2022 | - | 14,584 | 2,661 | 157,475 |
Charge for year | - | 17,693 | 3,542 | 142,199 |
Eliminated on disposal | - | - | - | (166,146 | ) |
Reclassification/transfer | - | - | - | (102,329 | ) |
At 31 March 2023 | - | 32,277 | 6,203 | 31,199 |
NET BOOK VALUE |
At 31 March 2023 | 1,084,211 | 245,698 | 17,344 | 564,750 |
At 31 March 2022 | 1,084,211 | 263,391 | 20,886 | 685,155 |
Atkinson Equipment Group Limited (Registered number: 13195197) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
14. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2022 | 147,145 | 787,229 | 786 | 3,163,523 |
Additions | 13,180 | 178,811 | - | 270,879 |
Disposals | (36,218 | ) | (207,747 | ) | - | (467,205 | ) |
Reclassification/transfer | 102,329 | - | - | - |
At 31 March 2023 | 226,436 | 758,293 | 786 | 2,967,197 |
DEPRECIATION |
At 1 April 2022 | 17,933 | 187,571 | 407 | 380,631 |
Charge for year | 17,269 | 173,825 | 352 | 354,880 |
Eliminated on disposal | (34,365 | ) | (180,916 | ) | - | (381,427 | ) |
Reclassification/transfer | 102,329 | - | - | - |
At 31 March 2023 | 103,166 | 180,480 | 759 | 354,084 |
NET BOOK VALUE |
At 31 March 2023 | 123,270 | 577,813 | 27 | 2,613,113 |
At 31 March 2022 | 129,212 | 599,658 | 379 | 2,782,892 |
15. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: Moat Works, Moat Road, West Wilts Trading Estate, Westbury, BA13 4JF |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year/period |
Atkinson Equipment Group Limited (Registered number: 13195197) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
16. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 April 2022 | 1,386,519 |
Disposals | (1,036,519 | ) |
At 31 March 2023 | 350,000 |
NET BOOK VALUE |
At 31 March 2023 | 350,000 |
At 31 March 2022 | 1,386,519 |
Fair value at 31 March 2023 is represented by: |
£ |
Valuation in 2022 | 180,000 |
Cost | 170,000 |
350,000 |
If investment property had not been revalued it would have been included at the following historical cost: |
2023 | 2022 |
as restated |
£ | £ |
Cost | 170,000 | 514,357 |
Investment property was valued on an open market basis on 31 March 2023 by the directors . |
17. | STOCKS |
Group |
2023 | 2022 |
as restated |
£ | £ |
Finished goods | 4,352,723 | 4,389,581 |
An impairment reversal was recognised in cost of sales against group stock of £21,041 (2022: £13,506). |
18. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
as restated | as restated |
£ | £ | £ | £ |
Trade debtors | 5,029,737 | 5,404,017 |
Other debtors | 91,510 | 449,748 |
Prepayments and accrued income | 482,198 | 442,860 |
5,603,445 | 6,296,625 |
Trade debtors are stated after provisions for impairment of £42,545 (2022: £20,729). |
Atkinson Equipment Group Limited (Registered number: 13195197) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
19. | CURRENT ASSET INVESTMENTS |
Group |
2023 | 2022 |
as restated |
£ | £ |
Other | 63,735 | 63,735 |
20. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
as restated | as restated |
£ | £ | £ | £ |
Other loans (see note 22) | 836,316 | 1,085,435 |
Trade creditors | 3,186,548 | 3,201,436 |
Amounts owed to group undertakings | - | - |
Tax | 26,528 | 211,424 |
Social security and other taxes | 843,122 | 819,976 |
Other creditors | 73,679 | 63,649 |
Directors' current accounts | 98,383 | 50,995 | 98,383 | 50,995 |
Accruals and deferred income | 453,761 | 335,001 |
5,518,337 | 5,767,916 |
Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand. |
Included within accruals are outstanding pension contributions of £25,881 (2022: £22,389). |
21. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
as restated | as restated |
£ | £ | £ | £ |
Other loans (see note 22) | 1,348,317 | 2,079,061 |
22. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
as restated | as restated |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Other loans | 836,316 | 1,085,435 |
Amounts falling due between one and two | years: |
Other loans - 1-2 years | 772,578 | 1,044,045 | 772,578 |
Amounts falling due between two and five | years: |
Other loans - 2-5 years | 575,739 | 1,035,016 |
23. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Atkinson Equipment Group Limited (Registered number: 13195197) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
as restated |
£ | £ |
Within one year | 666,582 | 649,379 |
Between one and five years | 2,137,167 | 2,384,122 |
In more than five years | 1,209,006 | 1,408,321 |
4,012,755 | 4,441,822 |
24. | FINANCIAL INSTRUMENTS |
The carrying value of the group's financial assets and liabilities are summarised by category below: |
2023 | 2022 |
£ | £ |
Financial Assets |
Measured at undiscounted amount receivable |
- Trade and other debtors and accrued income | 5,121,247 | 5,853,765 |
- Cash at bank and at hand | 4,606,946 | 1,492,212 |
9,728,193 | 7,345,977 |
Financial liabilities |
Measured at undiscounted amount payable |
- Trade and other creditors and accruals | (5,997,005 | ) | (6,815,577 | ) |
(5,997,005 | ) | (6,815,577 | ) |
25. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
as restated |
£ | £ |
Deferred tax | 210,574 | 351,683 |
Other provisions | 103,000 | 66,000 |
Aggregate amounts | 313,574 | 417,683 |
Group |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 April 2022 | 351,683 | 66,000 |
Provided during year | (141,109 | ) | 37,000 |
Balance at 31 March 2023 | 210,574 | 103,000 |
Other provisions relate to dilapidation in respect of leasehold properties. |
The deferred tax provision relates to the excess of taxation allowances over depreciation on fixed assets, investment property valuations and other timing differences. |
Atkinson Equipment Group Limited (Registered number: 13195197) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
26. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class | Nominal Value: | 2023 | 2022 |
£ | £ |
22 | Ordinary | £1 | 22 | 22 |
22 | Ordinary A | £1 | 22 | 22 |
374 | Ordinary B | £1 | 374 | 374 |
22 | Ordinary C | £1 | 22 | 22 |
440 | 440 |
There are no restrictions on the distribution of dividends and the repayment of capital or voting rights for any class of share. |
27. | RESERVES |
Group |
Retained | Revaluation | Other | Other |
earnings | reserve | reserves | reserves | Totals |
£ | £ | £ | £ | £ |
At 1 April 2022 | 3,505,153 | 557,385 | 472,634 | 1,969,440 | 6,504,612 |
Profit for the year | 3,387,133 | 3,387,133 |
Dividends | (360,983 | ) | (360,983 | ) |
Revaluation Adjustment | 422,385 | (422,385 | ) | 93,298 | - | 93,298 |
Capital Contribution | 105,565 | - | (105,565 | ) | - | - |
Reserves Transfer | - | (135,000 | ) | 135,000 | - | - |
At 31 March 2023 | 7,059,253 | - | 595,367 | 1,969,440 | 9,624,060 |
Company |
Retained | Other |
earnings | reserves | Totals |
£ | £ | £ |
At 1 April 2022 | 3,928,195 |
Profit for the year |
Dividends | ( |
) | ( |
) |
Revaluation Adjustment | - | 93,298 | 93,298 |
Capital Contribution | 105,565 | (105,565 | ) | - |
At 31 March 2023 | 5,040,812 |
28. | RELATED PARTY DISCLOSURES |
Key management personnel of the entity or its parent (in the aggregate) |
2023 | 2022 |
as restated |
£ | £ |
Amount due from related party | - | 276,688 |
Key management personnel compensation |
The remuneration of directors and other members of key management during the year was as follows: |
2023 | 2022 |
£ | £ |
Salaries and other short term benefits | 352,584 | 436,747 |
Atkinson Equipment Group Limited (Registered number: 13195197) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
29. | POST BALANCE SHEET EVENTS |
Atkinson Equipment Group Limited acquired 100% of the share capital of two companies in July 2023 as follows: |
Patrico Limited |
Nature of business: Wholesale supply of industrial containers |
Richmond Precision Services Limited |
Nature of business: Precision Engineers |
The value of the aggregate capital and reserves of the businesses at the date of acquisition had not been finalised at the date of this report. The acquisitions are anticipated to increase the turnover of the group by approximately £7m in the year to 31 March 2024 and to increase the aggregate capital and reserves of the group at the date of acquisition by approximately £3m. |
30. | ULTIMATE CONTROLLING PARTY |
Atkinson Equipment Group Limited is the ultimate controlling party of the Group. |
31. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
11.2.21 |
Year Ended | to |
31.3.23 | 31.3.22 |
as restated |
£ | £ |
Profit before taxation | 3,803,470 | 5,082,320 |
Depreciation charges | (501,737 | ) | (547,372 | ) |
Profit on disposal of fixed assets | (272,468 | ) | (9,093 | ) |
Gain on revaluation of fixed assets | - | (716,519 | ) |
Capital Contribution | (12,267 | ) | 472,634 |
Provision Increase | 37,000 | (13,000 | ) |
Deferred Tax Movements | (141,109 | ) | 39,212 |
Government grants | - | (40,682 | ) |
Finance costs | 106,422 | 141,156 |
Finance income | (21,828 | ) | (3,809 | ) |
2,997,483 | 4,404,847 |
Decrease/(increase) in stocks | 36,858 | (593,467 | ) |
Decrease/(increase) in trade and other debtors | 693,180 | (939,754 | ) |
Increase in trade and other creditors | 137,048 | 322,395 |
Cash generated from operations | 3,864,569 | 3,194,021 |
32. | 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 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 4,606,946 | 1,492,212 |
Period ended 31 March 2022 |
31.3.22 | 11.2.21 |
as restated |
£ | £ |
Cash and cash equivalents | 1,492,212 | - |
Atkinson Equipment Group Limited (Registered number: 13195197) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2023 |
33. | ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS |
At 1.4.22 | Cash flow | At 31.3.23 |
£ | £ | £ |
Net cash |
Cash at bank | 1,492,212 | 3,114,734 | 4,606,946 |
1,492,212 | 3,114,734 | 4,606,946 |
Liquid resources |
Current asset investments | 63,735 | - | 63,735 |
63,735 | - | 63,735 |
Debt |
Debts falling due within 1 year | (1,085,435 | ) | 249,119 | (836,316 | ) |
Debts falling due after 1 year | (2,079,061 | ) | 730,744 | (1,348,317 | ) |
(3,164,496 | ) | 979,863 | (2,184,633 | ) |
Total | (1,608,549 | ) | 4,094,597 | 2,486,048 |