Company registration number 13057059 (England and Wales)
UNILATHE HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2023
UNILATHE HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr A Sims
(Appointed 31 October 2022)
Mr E Sims
Secretary
Mrs E White
Company number
13057059
Registered office
Ford Green Business Park,
Ford Green Road
Smallthorne
Stoke on Trent
Staffordshire
ST6 1NG
Auditor
BK Plus Audit Limited
2-6 Adventure Place
Hanley
Stoke on Trent
Staffordshire
England
ST1 3AF
Bankers
HSBC Bank Plc
Crown Bank
Hanley
Stoke on Trent
Staffordshire
ST1 1DA
UNILATHE HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Company statement of cash flows
13
Notes to the financial statements
14 - 32
UNILATHE HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 30 APRIL 2023
- 1 -

The directors present the strategic report for the period ended 30 April 2023.

Review of the business

This represents the first year of trading of Unilathe Holdings Limited. The company was established to facilitate the purchase of the premises at Ford Green Business Park from which Unilathe Limited has traded since 2004. Contemporaneous with that purchase on 21 March 2023, the shareholding of Unilathe Limited was transferred to Holdings such that it became a wholly owned subsidiary. These accounts therefore reflect the consolidated balance sheet as at 30 April 2023 and the consolidated profit and loss account from the date of purchase.

The establishment of the entire business within a group structure is a further significant step in effectively announcing the determination of the shareholders to see it continue to develop commercially. The overall footprint of the premises allows for further planned expansion, whilst the recent growth of Unilathe Limited confirms the availability of strategic opportunities within the markets in which it operates. These are being developed through additional significant investment in plant and machinery, systems, including digitalisation, and people. Such increases in productive capacity have been matched with improved efficiency, leading to increased turnover and profitability.

Principal risks and uncertainties

The macro-economic climate will always impact Unilathe Limited, the one trading business within the group, and an ability to respond to key risks and uncertainties is fundamental. This aspect will always play a key part in strategic considerations. Additionally, the business continues to be dependant on being able to recruit skilled labour in an environment where there is an overall shortage. We continue to develop our apprenticeship scheme in an effort to recruit people with the right acumen and then put them through a programme to develop appropriate skills. This is proving worthwhile but as the business expands we still need to recruit additional, capable skilled labour.

Key performance indicators

The trend of increasing customer demand continues. The areas of assessment continue to highlight safety, quality, cost, delivery and people and therefore our strict measurement of these aspects is key to our success. In addition, the key financial criteria of margin control, liquidity and gearing ratios constitute the majority of our monitoring focus as we ensure the future progress of the business.

By order of the board

Mrs E White
Secretary
13 March 2024
UNILATHE HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 30 APRIL 2023
- 2 -

The directors present their annual report and financial statements for the period ended 30 April 2023.

Principal activities

The principal activity of the company is that of a holding company. The principal activity of the group is that of general sub-contract engineers.

 

Review of the business

The purchase of the premises from which Unilathe Limited has traded since 2004 represents a fundamental indication of management’s intention to invest in the future of the business. It illustrates a confidence in the future, as does the continued investment in plant and machinery, systems, including digitalisation, and people. This provides the platform for the continued development and expansion of the property and of our productive capacity.

The year has seen the trading company increase turnover by 39%, whilst better margins have led to a marked improvement in profitability. This has been achieved through the development of our relationships with key customers, as well as the commitment and loyalty of our staff, all of whom illustrate their determination to continually develop their skills and provide a pre-eminent level of service to those customers. We are indeed most grateful to all our employees for consistently helping to move the business forward.

We have always believed that Unilathe has a distinctive culture, one of hard work and entrepreneurship, which leads to an approach of “we make it happen”. This is achieved by embracing change and instilling a confidence in customers and employees alike. We therefore remain optimistic for the future and believe that the business is well structured, liquid and modestly geared and, having a young and dynamic management team, is well placed to continue the progress of last year.

Results and dividends

The results for the period are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

Mr A Sims
(Appointed 31 October 2022)
Mr E Sims
Future developments

The group continues to invest in state-of-the-art technology in order to maintain its reputation for quality production in line with the numerous industry and customer accreditations which it holds. It has an enviable reputation which has been further enhanced this year through its responsiveness and commitment to quality and efficiency. This all makes for a particularly exciting future.

Auditor

BK Plus Audit Limited were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

UNILATHE HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2023
- 3 -
Statement of directors' responsibilities

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.

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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

By order of the board
Mrs E White
Secretary
13 March 2024
UNILATHE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF UNILATHE HOLDINGS LIMITED
- 4 -
Opinion

We have audited the financial statements of Unilathe Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 30 April 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, the company 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:

UNILATHE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF UNILATHE HOLDINGS LIMITED
- 5 -
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.

Extent to which the audit was considered capable of detecting irregularities including fraud

As part of designing our audit , we determined materiality and assessed the risk of material misstatement in the financial statements, including fraud. We made enquiries of management of their own assessment of risk and fraud.

We ensured that the engagement team had the appropriate competence, capabilities and skills to identify non-compliance with laws and regulations and to identify indications of fraud.

We identified laws and regulations applicable to the company through discussions directors and management and focused on specific laws which we considered may have a direct material effect on the financial such as financial reporting requirements including the Companies Act 2006 and United Kingdom Accounting Standards, taxation legislation, data protection regulations, employment law and health and safety regulations.

 

We assessed the extent of compliance with the laws and regulations by making enquires of management and reviewing invoices for legal and professional fees.

We assessed the susceptibility of the financial statements to material misstatements, including obtaining an understanding of how fraud might occur by making enquiries of management as to where they considered there was a susceptibility to fraud and their knowledge of any suspected, alleged or actual fraud.

We considered the internal controls in place to mitigate the risks of fraud and non-compliance with laws and regulations.

UNILATHE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF UNILATHE HOLDINGS LIMITED
- 6 -
Audit resonse to the risks identified

To address the risk of fraud through management bias and override of controls we

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries posted during the year and at the year end to identify unusual transactions;

- assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias;

- investigated the rationale behind significant or unusual transactions; and

- performed substantive procedures such as walkthrough tests on major transaction cycles including sales, purchase and payroll.

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial disclosures to underlying supporting documents;

- enquiring of management as to any actual or potential litigation;

- reviewing correspondence with HM Revenue and Customs; and

- reviewing legal and professional costs incurred during the year to identify any indicators of non-compliance with laws and regulations.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

David Bould FCCA (Senior Statutory Auditor)
For and on behalf of BK Plus Audit Limited
15 March 2024
Chartered Certified Accountants
Statutory Auditor
2-6 Adventure Place
Hanley
Stoke on Trent
Staffordshire
England
ST1 3AF
UNILATHE HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 APRIL 2023
- 7 -
Period
Year
ended
ended
30 April
31 December
2023
2021
Notes
£
£
Turnover
3
1,426,726
-
Cost of sales
(1,007,822)
-
0
Gross profit
418,904
-
Administrative expenses
(314,917)
-
0
Other operating income
428
-
Operating profit
4
104,415
-
Interest receivable and similar income
7
26
-
0
Interest payable and similar expenses
8
(15,841)
-
0
Profit before taxation
88,600
-
Tax on profit
9
(21,900)
-
0
Profit for the financial period
25
66,700
-
0
Profit for the financial period is all attributable to the owners of the parent company.
Total comprehensive income for the period is all attributable to the owners of the parent company.
UNILATHE HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
30 APRIL 2023
30 April 2023
- 8 -
30 April 2023
31 December 2021
Notes
£
£
£
£
Fixed assets
Tangible assets
10
6,440,452
-
0
Current assets
Stocks
13
1,282,496
-
Debtors
14
3,630,701
-
Cash at bank and in hand
531,609
100
5,444,806
100
Creditors: amounts falling due within one year
15
(4,349,645)
-
Net current assets
1,095,161
100
Total assets less current liabilities
7,535,613
100
Creditors: amounts falling due after more than one year
16
(2,912,822)
-
Provisions for liabilities
Deferred tax liability
19
959,101
-
0
(959,101)
-
Net assets
3,663,690
100
Capital and reserves
Called up share capital
22
200
100
Share premium account
23
3,448,970
-
0
Other reserves
147,820
-
0
Profit and loss reserves
25
66,700
-
Total equity
3,663,690
100

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 13 March 2024 and are signed on its behalf by:
13 March 2024
Mr A Sims
Director
Company registration number 13057059 (England and Wales)
UNILATHE HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 30 APRIL 2023
30 April 2023
- 9 -
30 April 2023
31 December 2021
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,879,769
-
0
Investments
11
3,449,070
-
0
5,328,839
-
0
Current assets
Debtors
14
10,154
-
0
Cash at bank and in hand
250,070
100
260,224
100
Creditors: amounts falling due within one year
15
(506,388)
-
Net current (liabilities)/assets
(246,164)
100
Total assets less current liabilities
5,082,675
100
Creditors: amounts falling due after more than one year
16
(1,504,641)
-
Net assets
3,578,034
100
Capital and reserves
Called up share capital
22
200
100
Share premium account
23
3,448,970
-
0
Other reserves
147,820
-
0
Profit and loss reserves
25
(18,956)
-
Total equity
3,578,034
100

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £18,956 (2021 - £0 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

The financial statements were approved by the board of directors and authorised for issue on 13 March 2024 and are signed on its behalf by:
13 March 2024
Mr A Sims
Director
Company registration number 13057059 (England and Wales)
UNILATHE HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 APRIL 2023
- 10 -
Share capital
Share premium account
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2021
-
0
-
0
-
-
0
-
Year ended 31 December 2021:
Profit and total comprehensive income
-
-
-
-
-
Issue of share capital
22
100
-
0
-
-
100
Balance at 31 December 2021
100
-
0
-
-
0
100
Period ended 30 April 2023:
Profit and total comprehensive income
-
-
-
66,700
66,700
Issue of share capital
22
100
3,448,970
-
-
3,449,070
Transfers
-
-
147,820
-
147,820
Balance at 30 April 2023
200
3,448,970
147,820
66,700
3,663,690
UNILATHE HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 APRIL 2023
- 11 -
Share capital
Share premium account
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2021
-
0
-
0
-
-
0
-
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
-
-
-
0
Issue of share capital
22
100
-
0
-
-
100
Balance at 31 December 2021
100
-
0
-
-
0
100
Period ended 30 April 2023:
Profit and total comprehensive income
-
-
-
(18,956)
(18,956)
Issue of share capital
22
100
3,448,970
-
-
3,449,070
Transfers
-
-
147,820
-
147,820
Balance at 30 April 2023
200
3,448,970
147,820
(18,956)
3,578,034
UNILATHE HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 APRIL 2023
- 12 -
2023
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
29
1,350,201
-
0
Interest paid
(15,841)
-
0
Income taxes paid
(428,160)
-
0
Net cash inflow/(outflow) from operating activities
906,200
-
Investing activities
Purchase of business
241,454
-
Purchase of tangible fixed assets
(1,229,069)
-
Proceeds from disposal of tangible fixed assets
13,790
-
Interest received
26
-
0
Net cash used in investing activities
(973,799)
-
Financing activities
Proceeds from issue of shares
-
100
Repayment of borrowings
(1,435,879)
-
Proceeds from new bank loans
2,685,879
-
Repayment of bank loans
(20,881)
-
Payment of finance leases obligations
(630,011)
-
Net cash generated from financing activities
599,108
100
Net increase in cash and cash equivalents
531,509
100
Cash and cash equivalents at beginning of period
100
-
0
Cash and cash equivalents at end of period
531,609
100
UNILATHE HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 APRIL 2023
- 13 -
2023
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
30
890,805
-
0
Interest paid
(7,414)
-
0
Net cash inflow/(outflow) from operating activities
883,391
-
Investing activities
Purchase of tangible fixed assets
(1,879,769)
-
0
Net cash used in investing activities
(1,879,769)
-
Financing activities
Proceeds from issue of shares
-
100
Proceeds from new bank loans
1,250,000
-
Repayment of bank loans
(3,652)
-
Net cash generated from financing activities
1,246,348
100
Net increase in cash and cash equivalents
249,970
100
Cash and cash equivalents at beginning of period
100
-
0
Cash and cash equivalents at end of period
250,070
100
UNILATHE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 APRIL 2023
- 14 -
1
Accounting policies
Company information

Unilathe Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

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

1.1
Reporting period

The company has extended its accounting period to 30 April 2023. This has been to done to coincide with the year end of its subsidiary undertaking Unilathe Limited.

1.2
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.3
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.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.4
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Unilathe 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 30 April 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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

UNILATHE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 15 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.5
Going concern

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

1.6
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.

1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
2% straight line on buildings
Plant and equipment
15% per annum reducing balance
Office equipment
15% per annum reducing balance
Motor vehicles
25% per annum reducing balance
Tooling and fixturing
5 years 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.

UNILATHE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 16 -
1.8
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.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible 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.

UNILATHE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 17 -

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.

1.10
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.

1.11
Cash and cash equivalents

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

1.12
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.

UNILATHE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 18 -
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.

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.

Derecognition of financial liabilities

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

1.13
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.

1.14
Taxation

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

UNILATHE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 19 -
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.

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.

1.15
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.

1.16
Retirement benefits

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

1.17
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.

UNILATHE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 20 -
1.18
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
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.

3
Turnover and other revenue
2023
2021
£
£
Turnover analysed by class of business
Sale of goods
1,425,376
-
Rent received
1,350
-
1,426,726
-
2023
2021
£
£
Other revenue
Interest income
26
-
Grants received
428
-
4
Operating profit
2023
2021
£
£
Operating profit for the period is stated after charging/(crediting):
Exchange losses
2,566
-
Government grants
(428)
-
Depreciation of owned tangible fixed assets
51,519
-
Loss on disposal of tangible fixed assets
413
-
Operating lease charges
28,519
-
UNILATHE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2023
- 21 -
5
Auditor's remuneration
2023
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
5,000
-
Audit of the financial statements of the company's subsidiaries
1,685
-
6,685
-
6
Employees

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

Group
Company
2023
2021
2023
2021
Number
Number
Number
Number
Production staff
98
-
-
-
Directors
6
-
-
-
Office, administration and management
4
-
-
-
Total
108
-
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2021
2023
2021
£
£
£
£
Wages and salaries
456,852
-
0
-
0
-
0
Social security costs
48,522
-
-
-
Pension costs
14,556
-
0
-
0
-
0
519,930
-
0
-
0
-
0
7
Interest receivable and similar income
2023
2021
£
£
Interest income
Interest on bank deposits
26
-
0
2023
2021
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
26
-
UNILATHE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2023
- 22 -
8
Interest payable and similar expenses
2023
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
9,125
-
Other finance costs:
Interest on finance leases and hire purchase contracts
6,716
-
Total finance costs
15,841
-
0
9
Taxation
2023
2021
£
£
Current tax
Adjustments in respect of prior periods
(36,956)
-
0
Deferred tax
Origination and reversal of timing differences
45,363
-
0
Changes in tax rates
13,493
-
0
Total deferred tax
58,856
-
0
Total tax charge
21,900
-
0

The actual charge for the period can be reconciled to the expected charge/(credit) for the period based on the profit or loss and the standard rate of tax as follows:

2023
2021
£
£
Profit before taxation
88,600
-
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 0%)
16,834
-
Tax effect of expenses that are not deductible in determining taxable profit
10,095
-
0
Tax effect of income not taxable in determining taxable profit
(79)
-
0
Unutilised tax losses carried forward
(3,923)
-
0
Change in unrecognised deferred tax assets
25,467
-
0
Effect of change in corporation tax rate
(1,477)
-
Permanent capital allowances in excess of depreciation
11,939
-
0
Research and development tax credit
(36,956)
-
0
Taxation charge
21,900
-
UNILATHE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2023
- 23 -
10
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Office equipment
Motor vehicles
Tooling and fixturing
Total
£
£
£
£
£
£
Cost
At 1 January 2022
-
0
-
0
-
0
-
0
-
0
-
0
Additions
1,879,769
-
0
-
0
-
0
-
0
1,879,769
Business combinations
-
0
4,497,540
8,497
9,406
110,962
4,626,405
Disposals
-
0
(7,935)
-
0
(6,268)
-
0
(14,203)
At 30 April 2023
1,879,769
4,489,605
8,497
3,138
110,962
6,491,971
Depreciation and impairment
At 1 January 2022
-
0
-
0
-
0
-
0
-
0
-
0
Depreciation charged in the period
-
0
46,965
628
250
3,676
51,519
At 30 April 2023
-
0
46,965
628
250
3,676
51,519
Carrying amount
At 30 April 2023
1,879,769
4,442,640
7,869
2,888
107,286
6,440,452
Company
Freehold land and buildings
£
Cost
At 1 January 2022
-
0
Additions
1,879,769
At 30 April 2023
1,879,769
Depreciation and impairment
At 1 January 2022 and 30 April 2023
-
0
Carrying amount
At 30 April 2023
1,879,769

Investment properties used by another group entity have been accounted for using the cost model. The carrying value of these investment properties included within company tangible fixed assets is £1,879,769 (2021 - £nil). The carrying value of these investment properties included within group tangible fixed assets is £1,879,769 (2021 - £nil).

11
Fixed asset investments
Group
Company
2023
2021
2023
2021
Notes
£
£
£
£
Investments in subsidiaries
12
-
0
-
0
3,449,070
-
0
UNILATHE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2023
11
Fixed asset investments
(Continued)
- 24 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2022
-
Additions
3,449,070
At 30 April 2023
3,449,070
Carrying amount
At 30 April 2023
3,449,070
At 31 December 2021
-
12
Subsidiaries

Details of the company's subsidiaries at 30 April 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Unilathe Limited
Ford Green Business Park, Ford Green Road, Smallthorne, Stoke on Trent, Staffordshire, ST6 1NG
Ordinary shares
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Unilathe Limited
3,534,726
762,541
13
Stocks
Group
Company
2023
2021
2023
2021
£
£
£
£
Finished goods and goods for resale
1,282,496
-
0
-
0
-
0
UNILATHE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2023
- 25 -
14
Debtors
Group
Company
2023
2021
2023
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,420,031
-
0
-
0
-
0
Other debtors
26,386
-
931
-
0
Prepayments and accrued income
178,131
-
0
3,070
-
0
3,624,548
-
4,001
-
Amounts falling due after more than one year:
Deferred tax asset (note 19)
6,153
-
0
6,153
-
0
Total debtors
3,630,701
-
10,154
-
15
Creditors: amounts falling due within one year
Group
Company
2023
2021
2023
2021
Notes
£
£
£
£
Bank loans
17
1,350,304
-
0
44,154
-
0
Obligations under finance leases
18
530,822
-
0
-
0
-
0
Trade creditors
1,691,177
-
0
420
-
0
Amounts owed to group undertakings
-
0
-
0
202,997
-
0
Other taxation and social security
473,783
-
-
-
Government grants
20
2,557
-
0
-
0
-
0
Other creditors
113,692
-
0
253,817
-
0
Accruals and deferred income
187,310
-
0
5,000
-
0
4,349,645
-
506,388
-
0

Other creditors represent amounts loaned to the company by the directors.

16
Creditors: amounts falling due after more than one year
Group
Company
2023
2021
2023
2021
Notes
£
£
£
£
Bank loans and overdrafts
17
1,314,694
-
0
1,202,194
-
0
Obligations under finance leases
18
1,273,734
-
0
-
0
-
0
Government grants
20
21,947
-
0
-
0
-
0
Other creditors
302,447
-
0
302,447
-
0
2,912,822
-
1,504,641
-
UNILATHE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2023
16
Creditors: amounts falling due after more than one year
(Continued)
- 26 -

Other creditors represent amounts loaned to the company by the directors.

Amounts included above which fall due after five years are as follows:
Payable by instalments
1,947,162
-
957,837
-
17
Loans and overdrafts
Group
Company
2023
2021
2023
2021
£
£
£
£
Bank loans
2,664,998
-
0
1,246,348
-
0
Payable within one year
1,350,304
-
0
44,154
-
0
Payable after one year
1,314,694
-
0
1,202,194
-
0

The long-term loans are secured by fixed charges over the assets of the company.

 

18
Finance lease obligations
Group
Company
2023
2021
2023
2021
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
602,691
-
0
-
0
-
0
In two to five years
1,380,509
-
0
-
0
-
0
1,983,200
-
-
-
Less: future finance charges
(178,644)
-
0
-
0
-
0
1,804,556
-
-
0
-
0

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

Assets held under hire purchase and similar contracts are secured on the assets concerned.

UNILATHE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2023
- 27 -
19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2021
2023
2021
Group
£
£
£
£
Accelerated capital allowances
1,022,291
-
-
-
Tax losses
(63,190)
-
6,153
-
959,101
-
6,153
-
Liabilities
Liabilities
Assets
Assets
2023
2021
2023
2021
Company
£
£
£
£
Tax losses
-
-
6,153
-
Group
Company
2023
2023
Movements in the period:
£
£
Asset at 1 January 2022
-
-
Charge/(credit) to profit or loss
452,465
(6,153)
Effect of change in tax rate - profit or loss
120,116
-
Other
380,367
-
Liability/(Asset) at 30 April 2023
952,948
(6,153)

Other movements on deferred tax represent the deferred tax acquired upon the acquisition of the subsidiary undertaking.

20
Government grants
Group
Company
2023
2021
2023
2021
£
£
£
£
Arising from government grants
24,504
-
-
-
UNILATHE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2023
20
Government grants
(Continued)
- 28 -

Deferred income is included in the financial statements as follows:

Current liabilities
2,557
-
0
-
0
-
0
Non-current liabilities
21,947
-
0
-
0
-
0
24,504
-
-
-
21
Retirement benefit schemes
2023
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
14,556
-

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.

22
Share capital
Group and company
2023
2021
2023
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
200
100
200
100

During the period the company issued 100 ordinary £1 shares in exchange for 100% of the share capital of the subsidiary. The consideration received was £34,490.70 per share. The difference between the nominal value of the shares and the consideration is shown in the share premium account.

23
Share premium account
Group
Company
2023
2021
2023
2021
£
£
£
£
At the beginning of the period
-
0
-
0
-
0
-
0
Arising on the issue of new shares
3,448,970
-
3,448,970
-
At the end of the period
3,448,970
-
0
3,448,970
-
0
UNILATHE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2023
- 29 -
24
Other reserves
2023
2021
Group and company
£
£
At the beginning of the period
-
-
Additions
147,820
-
At the end of the period
147,820
-

Other reserves represents the adjustment on the repayable directors loan to reflect the net present value of the future repayments,

25
Profit and loss reserves
Group
Company
2023
2021
2023
2021
£
£
£
£
At the beginning of the period
-
-
-
-
Profit/(loss) for the period
66,700
-
(18,956)
-
0
At the end of the period
66,700
-
(18,956)
-
26
Acquisition of a business

On 21 March 2023 the group acquired 100 percent of the issued capital of Unilathe Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
4,626,405
-
4,626,405
Inventories
1,138,434
-
1,138,434
Trade and other receivables
3,849,209
-
3,849,209
Cash and cash equivalents
241,454
-
241,454
Borrowings
(1,435,879)
-
(1,435,879)
Obligations under finance leases
(1,783,867)
-
(1,783,867)
Trade and other payables
(1,802,560)
-
(1,802,560)
Tax liabilities
(465,115)
-
(465,115)
Deferred government grants
(24,918)
-
(24,918)
Deferred tax
(894,093)
-
(894,093)
Total identifiable net assets
3,449,070
-
3,449,070
Goodwill
-
Total consideration
3,449,070
UNILATHE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2023
26
Acquisition of a business
(Continued)
- 30 -
The consideration was satisfied by:
£
Issue of shares
3,449,070
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
1,425,376
Profit after tax
85,656
27
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
2021
2023
2021
£
£
£
£
Within one year
34,302
-
11,434
-
Between two and five years
77,775
-
25,925
-
112,077
-
37,359
-
28
Related party transactions
Transactions with related parties

During the period the company acquired freehold land and buildings from S&M Properties a partnership in which one of the directors had a stake. The company paid the market value rate for the share of the property not owned by the director. The director introduced his share of the property into the business by way of an interest free loan of £700,000 repayable over 6 years with the remaining £702,500 being by way of a gift to the company for nil consideration.

 

The balance due to the director on the loan at the year end was £700,000. This has been discounted reflect the net present value of future repayments and is included in other creditors.

UNILATHE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2023
- 31 -
29
Cash generated from/(absorbed by) group operations
2023
2021
£
£
Profit for the period after tax
66,700
-
Adjustments for:
Taxation charged
21,900
-
0
Finance costs
15,841
-
0
Investment income
(26)
-
0
Loss on disposal of tangible fixed assets
413
-
Depreciation and impairment of tangible fixed assets
51,519
-
Decrease in provisions
(24,918)
-
Movements in working capital:
Increase in stocks
(144,062)
-
Decrease in debtors
224,661
-
Increase in creditors
1,113,669
-
Increase in deferred income
24,504
-
Cash generated from/(absorbed by) operations
1,350,201
-
30
Cash generated from/(absorbed by) operations - company
2023
2021
£
£
Loss for the period after tax
(18,956)
-
Adjustments for:
Taxation credited
(6,153)
-
0
Finance costs
7,414
-
0
Movements in working capital:
Increase in debtors
(4,001)
-
Increase in creditors
912,501
-
Cash generated from/(absorbed by) operations
890,805
-
31
Analysis of changes in net funds/(debt) - group
1 January 2022
Cash flows
Acquisitions and disposals
New finance leases
30 April 2023
£
£
£
£
£
Cash at bank and in hand
100
531,509
-
-
531,609
Borrowings excluding overdrafts
-
(1,229,119)
(1,435,879)
-
(2,664,998)
Obligations under finance leases
-
(1,153,856)
-
(650,700)
(1,804,556)
100
(1,851,466)
(1,435,879)
(650,700)
(3,937,945)
UNILATHE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 APRIL 2023
- 32 -
32
Analysis of changes in net funds/(debt) - company
1 January 2022
Cash flows
30 April 2023
£
£
£
Cash at bank and in hand
100
249,970
250,070
Borrowings excluding overdrafts
-
(1,246,348)
(1,246,348)
100
(996,378)
(996,278)
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