Company registration number 06219040 (England and Wales)
AUDASI HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
AUDASI HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr Adrian Barraclough
Mr Ben Weber
Company number
06219040
Registered office
31 The Square
Dringhouses
York
North Yorkshire
YO24 1UR
Auditor
BHP LLP
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
AUDASI HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 36
AUDASI HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 1 -

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

Fair review of the business

The continued controlled profitable growth of the group remains a key priority of the Directors while ensuring that the business remains a safe and secure place to work for our staff, customers, suppliers, and stakeholders.

 

Quick Slide Limited has continued to grow and in tandem with this invested in some significant machinery, technology, training, research and development.

 

We aim to keep a stimulated and well-rewarded workforce, trade partners and suppliers while continuing to introduce powerful new initiatives.

 

Audasi Holdings Limited, being the holding company of Quick Slide Limited continues it’s valuable position.

 

With it’s systems business ‘Renaissance’ goods can be procured at favourable prices and transferred to Quick Slide Limited downstream taking out weekly ‘peaks and troughs’ of ad-hoc price changes to the trade.

 

The Holding company also facilitates investment in 3rd party business, IP and Innovations which down the line will benefit Quick Slide Limited and ultimately the group.

 

Looking forward to next year

PEST analysis is always huge on our agenda, especially as we become more dependent on the size of the potential market.

 

We appreciate our market will be smaller and also due to considered instability in some supply areas for raw materials such as China have procurement options in other areas and also carry a stock level probably 50% more than the norm for our industry.

AUDASI HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 2 -
Development and performance

Although the marketplace for our industry has had a strong year there have been significant challenges with:

 

 

With great effort, we grew our Turnover by over 20%.

 

This was a strategic plan of growing our strong clients and moving on some weaker clients to our competitors. This allowed us to focus on strong clients and build their volumes thereby protecting future business and reducing costs such as distribution and customer care.

 

We also further developed our relationships with our supplier base working closely on new innovations for mutual gain. This should keep us in a strong position for future years.

 

Our IT department also benefitted from investment in software, staffing and technical innovations.

 

Understanding that IT is playing a bigger and bigger element in the manufacturing industry we recognised that we need to stay ahead of the curve and now this takes a more and more significant part of our focus.

 

IT security is also a huge threat and we’ve seen many competitors and associates affected by ransomware etc.

 

Therefore, we have invested heavily in security and internal procedures.

 

Finally, we have invested very heavily in capital plant equipment for manufacturing. This not only provides repeatable quality and increased throughput, it also gives much confidence to our stakeholders going forward that we’re the company to partner with and work for.

 

Last years Initiatives

 

 

Looking forward to next year

This next year looks like it’s going to be a challenging one for our industry with forecasts of a downturn in home improvements in the order of 20%.

 

We will definitely benefit from the strong relationships we forged during our last year in both sales and supply.

 

Our product range has also grown to include a modern external door system (Indifold) and internal heritage glazing system that provide our clients with a broader product base aimed at the high end of our market.

 

We also plan to play a bigger part in the new build sector. Although this market is shrinking, the repeatable quality and 99.4% OTIF (on time in full) of our business is something that aligns so well with the new build sector.

 

Research and development remains a real key focus for us also, constantly deploying our best resources to working to create a better and more secure future.

 

AUDASI HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 3 -
Key performance indicators

In terms of the market sector, our planned sales split across our key market sectors remained the same. There was though an increase in sales volume capacity within these markets which put pressure on our gross margins.

 

We closely monitor various areas of the business right from web hits, and trade partner applications all the way through to after-sales costs.

 

These statistics allow us to have a deep understanding of the business not just orders and accounts.

 

We’re also introducing many considered new products at exhibitions and trade shows which again facilitate direct feedback not just from our clients but theirs.

 

The current year’s order book is strong, with all markets being well represented.

 

The directors remain committed to adding new products to the group’s portfolio that will generate additional revenue in the coming years.

 

The group's key financial and other performance indicators during the year were as follows:

 

                        2023        2022        2021

Turnover                        £    29,600,753    24,203,219    19,505,035    

Gross profit margin                %    39        42        37            

Profit/(loss) on ordinary activities before taxation    £    4,008,519    4,152,530    2,473,756

 

Price risk, credit risk, liquidity risk and cash flow risk

The company’s principle financial instruments comprise trade debtors, trade creditors, and hire purchase contracts. The main purpose of these instruments is to raise funds for the company’s operations and to finance them. Owing to the nature of the financial instruments used there is no exposure to price risk.

 

The company’s approach to managing other risks applicable to the financial instruments concerned is set out below.

 

The trade debtors, credit and cash flow risks are managed by policies concerning the credit offering to customers and the monitoring of amounts outstanding in terms of time and credit limits. Weekly credit control meetings ensure aged debt is minimal.

 

The creditors liquidity risk is managed by cashflow planning ensuring sufficient funds are available to meet amounts due.

 

The bank loans are secured on the group's fixed assets. The interest rate and monthly repayment on the bank loans are fixed. The business manages the liquidity risk by ensuring that there are sufficient funds to meet the repayments.

 

The business is a lessee in respect of assets under hire purchase contracts. The liquidity risk in respect of these is a managed by ensuring that there are sufficient funds to meet the payments.

 

The fundamental change in the market has continued to be increased competition in the window company sector.

 

This has had negligible impact on our turnover as we have continued to direct our sales more towards the end user marketplace where our major competitors are unable to follow.

 

We have offered a high level of service and support to our trade customers that ensures that we continue to sell at a profitable level but also forge partnerships rather than fickle short-term relationships.

AUDASI HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 4 -

On behalf of the board

Mr Adrian Barraclough
Director
20 February 2024
AUDASI HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 5 -

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

Principal activities

The principal activity of the group continued to be that of the manufacture, wholesale and retail of uPVC windows. The principal activity of the company is that of a holding company and rental of property.

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £501,650. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr Adrian Barraclough
Mr Ben Weber
Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr Adrian Barraclough
Director
20 February 2024
AUDASI HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2023
- 6 -

The directors are responsible for preparing the Annual Report 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

AUDASI HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF AUDASI HOLDINGS LIMITED
- 7 -
Opinion

We have audited the financial statements of Audasi Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

AUDASI HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AUDASI HOLDINGS LIMITED
- 8 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that 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.

We focused on laws and regulations, relevant to the company, which could give rise to a material misstatement in the financial statements. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management, review of client's operation of controls within the year (in particular; management and security of stock, treatment of revenue within the accounts and the posting of manual journals affecting the balances within the accounts) and review of expenses, such as legal costs. There are inherent limitations in the audit procedures described 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.

As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

AUDASI HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AUDASI HOLDINGS LIMITED
- 9 -

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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Ann Brown (Senior Statutory Auditor)
For and on behalf of BHP LLP
20 February 2024
Chartered Accountants
Statutory Auditor
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
AUDASI HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
29,600,753
24,203,219
Cost of sales
(18,081,645)
(14,029,028)
Gross profit
11,519,108
10,174,191
Distribution costs
(1,529,342)
(1,290,468)
Administrative expenses
(6,306,616)
(4,759,001)
Other operating income
92,793
48,253
Operating profit
4
3,775,943
4,172,975
Share of results of associates and joint ventures
159,248
-
Interest receivable and similar income
8
97,286
15,318
Interest payable and similar expenses
9
(23,958)
(35,763)
Profit before taxation
4,008,519
4,152,530
Taxation
10
(831,749)
(792,955)
Profit for the financial year
3,176,770
3,359,575
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

AUDASI HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 MAY 2023
31 May 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
600,046
293,052
Tangible assets
13
2,829,068
1,337,772
Investment properties
14
614,301
614,301
Investments
15
747,134
-
0
4,790,549
2,245,125
Current assets
Stocks
18
2,147,504
1,947,214
Debtors
19
3,728,010
3,232,033
Cash at bank and in hand
4,114,564
4,165,552
9,990,078
9,344,799
Creditors: amounts falling due within one year
20
(6,175,020)
(5,687,288)
Net current assets
3,815,058
3,657,511
Total assets less current liabilities
8,605,607
5,902,636
Creditors: amounts falling due after more than one year
21
(179,824)
(417,888)
Provisions for liabilities
Deferred tax liability
23
581,626
315,711
(581,626)
(315,711)
Net assets
7,844,157
5,169,037
Capital and reserves
Called up share capital
25
79
79
Profit and loss reserves
7,844,078
5,168,958
Total equity
7,844,157
5,169,037
The financial statements were approved by the board of directors and authorised for issue on 20 February 2024 and are signed on its behalf by:
20 February 2024
Mr  Adrian  Barraclough
Director
AUDASI HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 MAY 2023
31 May 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
-
0
4,725
Investment properties
14
614,301
614,301
Investments
15
1,390,789
486,080
2,005,090
1,105,106
Current assets
Debtors
19
1,392,660
1,363,398
Cash at bank and in hand
258,379
144,362
1,651,039
1,507,760
Creditors: amounts falling due within one year
20
(2,875,061)
(1,804,836)
Net current liabilities
(1,224,022)
(297,076)
Total assets less current liabilities
781,068
808,030
Provisions for liabilities
23
-
0
(7,922)
Net assets
781,068
800,108
Capital and reserves
Called up share capital
25
79
79
Profit and loss reserves
780,989
800,029
Total equity
781,068
800,108

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £482,610 (2022 - £1,780,934 profit).

The financial statements were approved by the board of directors and authorised for issue on 20 February 2024 and are signed on its behalf by:
20 February 2024
Mr  Adrian  Barraclough
Director
Company Registration No. 06219040
AUDASI HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2021
100
3,872,783
3,872,883
Year ended 31 May 2022:
Profit and total comprehensive income for the year
-
3,359,575
3,359,575
Dividends
11
-
(63,400)
(63,400)
Own shares acquired
-
(2,000,000)
(2,000,000)
Redemption of shares
25
(21)
-
(21)
Balance at 31 May 2022
79
5,168,958
5,169,037
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
3,176,770
3,176,770
Dividends
11
-
(501,650)
(501,650)
Balance at 31 May 2023
79
7,844,078
7,844,157
AUDASI HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2021
100
1,082,495
1,082,595
Year ended 31 May 2022:
Profit and total comprehensive income for the year
-
1,780,934
1,780,934
Dividends
11
-
(63,400)
(63,400)
Own shares acquired
-
(2,000,000)
(2,000,000)
Redemption of shares
25
(21)
-
(21)
Balance at 31 May 2022
79
800,029
800,108
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
482,610
482,610
Dividends
11
-
(501,650)
(501,650)
Balance at 31 May 2023
79
780,989
781,068
AUDASI HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
32
4,475,235
4,011,162
Interest paid
(23,958)
(35,763)
Income taxes paid
(1,032,084)
(519,416)
Net cash inflow from operating activities
3,419,193
3,455,983
Investing activities
Purchase of tangible fixed assets
(1,914,665)
(201,162)
Proceeds from disposal of tangible fixed assets
51,250
31,600
Purchase of investment property
-
(4,284)
Purchase of subsidiaries, net of cash acquired
(316,823)
-
Net assets acquired on acquisition
(44,346)
Purchase of associates
(587,886)
-
Repayment of loans
(22,878)
-
Interest received
43,386
15,318
Dividends received
53,900
-
0
Net cash used in investing activities
(2,738,062)
(158,528)
Financing activities
Redemption of shares
-
0
(21)
Purchase of treasury shares
-
0
(2,000,000)
Repayment of bank loans
-
(295,873)
Payment of finance leases obligations
(230,469)
(258,148)
Dividends paid to equity shareholders
(501,650)
(63,400)
Net cash used in financing activities
(732,119)
(2,617,442)
Net (decrease)/increase in cash and cash equivalents
(50,988)
680,013
Cash and cash equivalents at beginning of year
4,165,552
3,485,539
Cash and cash equivalents at end of year
4,114,564
4,165,552
AUDASI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
- 16 -
1
Accounting policies
Company information

Audasi Holdings Limited (“the company”) is a limited company domiciled and incorporated in England and Wales. The registered office is 31 The Square, Dringhouses, York, North Yorkshire, YO24 1UR.The registration number is 06219040.

 

The group consists of Audasi Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

AUDASI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 17 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Audasi Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 May 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue un operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

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.

AUDASI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 18 -

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:

Plant and equipment
10% reducing balance or 10% straight line
Fixtures and fittings
30% 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 recognised in the profit and loss account.

1.8
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

AUDASI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 19 -
1.10
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

1.11
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.12
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.

AUDASI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 20 -
1.13
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where 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 have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 group after deducting all of its liabilities.

AUDASI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 21 -
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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group 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 group.

1.15
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

AUDASI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 22 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
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.

1.17
Retirement benefits

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

1.18
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

AUDASI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 23 -
1.19
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.

 

Grants received in relation to the government Coronavirus Job Retention Scheme (Furlough) have been recognised within other operating income. The grant is accounted for on the accruals basis once the related payroll return has been submitted.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

Stock and work in progress

An element of estimation is involved in the year end work in progress calculations. An average sales price per unit method is required to calculate semi-finished materials, which involves estimation by key members of the stock department of expected margin and level of completion at year end.

 

Warranty provision

An element of judgement is involved in the percentage used to calculate the warranty provision of customer turnover. The warranty provision calculated is then compared to actual returns in the prior year.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sales
29,600,753
24,203,219
2023
2022
£
£
Turnover analysed by geographical market
UK
29,600,753
24,203,219
AUDASI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
3
Turnover and other revenue
(Continued)
- 24 -
2023
2022
£
£
Other revenue
Interest income
43,386
15,318
Dividends received
53,900
-
Grants received
-
48,253
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
-
(48,253)
Depreciation of owned tangible fixed assets
319,239
152,657
Depreciation of tangible fixed assets held under finance leases
104,130
122,126
Profit on disposal of tangible fixed assets
(51,250)
(16,720)
Amortisation of intangible assets
54,175
-
Operating lease charges
431,577
358,252
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
7,675
10,080
Audit of the financial statements of the company's subsidiaries
27,250
23,510
34,925
33,590
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Adminstration and support
33
32
7
8
Production
142
123
-
-
Sales, marketing and distribution
41
36
-
-
Total
216
191
7
8
AUDASI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
6
Employees
(Continued)
- 25 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
7,287,502
6,150,018
268,736
338,407
Social security costs
544,139
441,078
-
-
Pension costs
113,418
91,472
17,150
16,268
7,945,059
6,682,568
285,886
354,675
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
195,165
108,417
Company pension contributions to defined contribution schemes
15,750
15,900
210,915
124,317

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 2).

 

The remunerations disclosed above includes £136,831 paid to the highest paid director.

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
25,001
381
Other interest income
18,385
14,937
Total interest revenue
43,386
15,318
Other income from investments
Dividends received
53,900
-
0
Total income
97,286
15,318

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
25,001
381
AUDASI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 26 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
10,930
Other finance costs:
Interest on finance leases and hire purchase contracts
23,958
24,833
Total finance costs
23,958
35,763
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
546,472
777,000
Adjustments in respect of prior periods
(23)
(120)
Total current tax
546,449
776,880
Deferred tax
Origination and reversal of timing differences
265,915
16,411
Adjustment in respect of prior periods
19,385
(336)
Total deferred tax
285,300
16,075
Total tax charge
831,749
792,955

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
4,008,519
4,152,530
Expected tax charge based on the standard rate of corporation tax in the UK of 20.00% (2022: 19.00%)
801,811
788,981
Tax effect of expenses that are not deductible in determining taxable profit
33,235
9,886
Tax effect of income not taxable in determining taxable profit
(40,686)
-
0
Change in unrecognised deferred tax assets
(17,967)
(1,560)
Adjustments in respect of prior years
19,214
(456)
Effect of change in corporation tax rate
-
2,641
Fixed asset differences
(20,604)
(10,250)
Effect of change in deferred tax rates
56,746
3,713
Taxation charge
831,749
792,955
AUDASI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 27 -
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
501,650
63,400
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 June 2022
358,089
Additions
361,169
At 31 May 2023
719,258
Amortisation and impairment
At 1 June 2022
65,037
Amortisation charged for the year
54,175
At 31 May 2023
119,212
Carrying amount
At 31 May 2023
600,046
At 31 May 2022
293,052
The company had no intangible fixed assets at 31 May 2023 or 31 May 2022.
AUDASI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 28 -
13
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 June 2022
2,078,840
219,206
210,724
2,508,770
Additions
1,810,209
892
103,564
1,914,665
At 31 May 2023
3,889,049
220,098
314,288
4,423,435
Depreciation and impairment
At 1 June 2022
874,900
190,762
105,336
1,170,998
Depreciation charged in the year
333,159
15,388
74,822
423,369
At 31 May 2023
1,208,059
206,150
180,158
1,594,367
Carrying amount
At 31 May 2023
2,680,990
13,948
134,130
2,829,068
At 31 May 2022
1,203,940
28,444
105,388
1,337,772
Company
Fixtures and fittings
£
Cost
At 1 June 2022 and 31 May 2023
23,249
Depreciation and impairment
At 1 June 2022
18,524
Depreciation charged in the year
4,725
At 31 May 2023
23,249
Carrying amount
At 31 May 2023
-
0
At 31 May 2022
4,725

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
633,919
738,048
-
0
-
0
AUDASI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 29 -
14
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 June 2022 and 31 May 2023
614,301
614,301

The fair value of the investment property has been arrived at on the basis of Directors' best estimate of market value at the year end and is not based on a valuation by an independent valuer.

15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
802,903
486,080
Investments in associates
17
747,134
-
0
587,886
-
0
747,134
-
0
1,390,789
486,080
Movements in fixed asset investments
Group
Shares in associates
£
Cost or valuation
At 1 June 2022
-
Additions
587,886
Valuation changes
159,248
At 31 May 2023
747,134
Carrying amount
At 31 May 2023
747,134
At 31 May 2022
-
AUDASI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
15
Fixed asset investments
(Continued)
- 30 -
Movements in fixed asset investments
Company
Shares in subsidiaries and associates
£
Cost or valuation
At 1 June 2022
486,080
Additions
904,709
At 31 May 2023
1,390,789
Carrying amount
At 31 May 2023
1,390,789
At 31 May 2022
486,080
16
Subsidiaries

Details of the company's subsidiaries at 31 May 2023 are as follows:

Name of undertaking
Nature of business
Class of
% Held
shareholding
Direct
Indirect
Quick Slide Limited
Window manufacturing
Ordinary
100.00
Quickslide Windows Direct Limited
Retails of windows
Ordinary
100.00
Renaissance Window Systems Limited
Distribution of profile and hardware
Ordinary
100.00
Indifold Doors Limited
Door manufacturing
Ordinary
100.00

The investments in subsidiaries are all stated at cost.

 

All of the subsidiaries are consolidated.

The UK registered office for Indifold Doors Limited is: Unit 24 Flush Mills, Heckmondwike, WF16 0EN.

 

All other subsidiaries have the UK registered office of: Unit 15, Heaton Estate, Bradford Road, Brighouse, HD6 4BW.

 

17
Associates

Details of associates at 31 May 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Kolor-Seal Limited
Unit 6 Ellis Hill, Deighton, Huddersfield, HD2 1WB
Ordinary
49
AUDASI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 31 -
18
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
2,147,504
1,947,214
-
-
19
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,045,064
1,346,437
2,880
-
0
Gross amounts owed by contract customers
124,868
201,251
-
0
-
0
Amounts owed by group undertakings
-
-
84,164
126,525
Other debtors
1,314,928
1,264,592
1,280,289
1,229,335
Prepayments and accrued income
243,150
419,753
18,341
7,538
3,728,010
3,232,033
1,385,674
1,363,398
Amounts falling due after more than one year:
Deferred tax asset (note 23)
-
0
-
0
6,986
-
0
Total debtors
3,728,010
3,232,033
1,392,660
1,363,398
20
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
22
237,555
229,960
-
0
-
0
Trade creditors
3,266,293
2,886,825
19,500
7,667
Amounts owed to group undertakings
-
0
-
0
2,417,404
1,727,304
Amounts owed to undertakings in which the group has a participating interest
123,815
-
0
123,815
-
0
Corporation tax payable
154,593
620,843
22,317
31,975
Other taxation and social security
478,675
645,910
35,100
31,910
Other creditors
1,075,844
627,341
250,000
-
0
Accruals and deferred income
838,245
676,409
6,925
5,980
6,175,020
5,687,288
2,875,061
1,804,836

Obligations under finance leases and hire purchase contracts are secured on the assets to which they relate.

AUDASI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 32 -
21
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
22
179,824
417,888
-
0
-
0

Obligations under finance leases and hire purchase contracts are secured on the assets to which they relate.

22
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
237,555
229,960
-
0
-
0
In two to five years
179,824
417,888
-
0
-
0
417,379
647,848
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery and are secured on the assets to which they relate. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

23
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
581,626
315,711
-
-
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Accelerated capital allowances
-
7,922
6,986
-
AUDASI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
23
Deferred taxation
(Continued)
- 33 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 June 2022
315,711
7,922
Charge/(credit) to profit or loss
265,915
(14,908)
Liability/(Asset) at 31 May 2023
581,626
(6,986)

The deferred tax liability set out above includes £67,000 which is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
113,418
91,472

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

25
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 1p each
7,900
7,900
79
79

Each ordinary share is entitled to one vote. All dividends shall be apportioned and paid proportionately to the amounts paid up on the ordinary shares.

AUDASI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 34 -
26
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
568,276
563,946
-
-
Between two and five years
745,944
1,174,621
-
-
1,314,220
1,738,567
-
-
27
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2023
2022
2023
2022
£
£
£
£
Acquisition of tangible fixed assets
920,700
-
-
-
28
Related party transactions
Transactions with related parties

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Entities over which the group has control, joint control or significant influence
123,815
-

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Other related parties
808,845
800,000
AUDASI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 35 -
29
Directors' transactions

Dividends totalling £450,850 (2022 - £54,524) were paid in the year in respect of shares held by the company's directors.

Advances or credits have been granted by the group to its directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Mrs A Weber
3.00
7,040
268
-
(7,308)
-
Mr A Barraclough
3.00
422,049
390,063
14,124
(510,793)
315,443
Mr B Weber
3.00
-
286,400
2,698
(175,400)
113,698
429,089
676,731
16,822
(693,501)
429,141
30
Controlling party

The company is considered to be under the control of the Board of Directors.

31
Audit exemption provided to certain UK Group subsidiaries

The Company is providing certain wholly owned UK subsidiaries (as disclosed in note 16 and which are included within these Group consolidated financial statements) with guarantee of their respective debts in the form prescribed by Section 479C of the Companies Act 2006 ('the Act') such that they can claim exemption from requiring an audit in accordance with Section 479A of the Act. These guarantees cover all of the outstanding actual and contingent liabilities of these companies at 31 May 2023:

 

Indifold Doors Limited        Company number 12510502

AUDASI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 36 -
32
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
3,176,770
3,359,575
Adjustments for:
Share of results of associates and joint ventures
(159,248)
-
Taxation charged
831,749
792,955
Finance costs
23,958
35,763
Investment income
(97,286)
(15,318)
Gain on disposal of tangible fixed assets
(51,250)
(16,720)
Amortisation and impairment of intangible assets
54,175
-
Depreciation and impairment of tangible fixed assets
423,369
274,783
Movements in working capital:
Increase in stocks
(200,290)
(708,003)
Increase in debtors
(473,099)
(375,460)
Increase in creditors
946,387
663,587
Cash generated from operations
4,475,235
4,011,162
33
Analysis of changes in net funds - group
1 June 2022
Cash flows
31 May 2023
£
£
£
Cash at bank and in hand
4,165,552
(50,988)
4,114,564
Obligations under finance leases
(647,848)
230,469
(417,379)
3,517,704
179,481
3,697,185
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