REGISTERED NUMBER: |
The Agricultural Engineers Association |
Company Limited by Guarantee |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 October 2023 |
REGISTERED NUMBER: |
The Agricultural Engineers Association |
Company Limited by Guarantee |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 October 2023 |
The Agricultural Engineers Association |
Company Limited by Guarantee (Registered number: 00544745) |
Contents of the Financial Statements |
for the Year Ended 31 October 2023 |
Page |
Company information | 1 |
Strategic report | 2 | to | 4 |
Report of the directors | 5 | to | 6 |
Report of the independent auditors | 7 | to | 10 |
Statement of income and retained earnings | 11 |
Statement of financial position | 12 |
Statement of cash flows | 13 |
Notes to the statement of cash flows | 14 |
Notes to the financial statements | 15 | to | 22 |
The Agricultural Engineers Association |
Company Limited by Guarantee |
Company Information |
for the Year Ended 31 October 2023 |
Directors: |
Secretary: |
Registered office: |
Registered number: |
Auditors: |
Bank House |
Broad Street |
Spalding |
Lincolnshire |
PE11 1TB |
The Agricultural Engineers Association |
Company Limited by Guarantee (Registered number: 00544745) |
Strategic Report |
for the Year Ended 31 October 2023 |
The directors present their strategic report for the year ended 31 October 2023. |
Principal activities |
The company is a trade association representing the interests of the manufacturers and suppliers of agricultural machinery and outdoor power equipment. Throughout the year it has provided advice, assistance, and training for its members on economic, technical, and legal issues and in other relevant spheres of business activity. |
Constitution and Governance |
The Agricultural Engineers Association (AEA) is a company limited by guarantee. All full members of the AEA are guarantors and are company law members of the Company. The number of full members is unlimited. |
The Board of Directors (described in the Articles of Association as the Board of Management) is in overall control of the Company assisted by the Farm Equipment Council and the Outdoor Power Equipment Council in the determination of policy issues. |
The Board is constituted of : |
(a) The officers of the Association, being the President, the Chairman of the Farm Equipment Council, the Chairman of the Outdoor Power Equipment Council and the Immediate Past President, |
(b) Two members appointed by the Farm Equipment Council and two members appointed by the Outdoor Power and Equipment Council, and |
(c) The Chief Executive Officer for the time being of the Association |
Outdoor Power Equipment Limited is a wholly owned dormant subsidiary. |
Samuelson Shows Limited is a wholly owned dormant subsidiary. |
The Agricultural Engineers Association |
Company Limited by Guarantee (Registered number: 00544745) |
Strategic Report |
for the Year Ended 31 October 2023 |
Review of developments |
A review of the business activities and future developments of the AEA are contained in the "AEA Annual Review 2023". |
In 2023 the AEA continued to support its members in a changing environment. Even though supply chains have now eased across many of our members' distribution channels, inflationary costs resonate from the previous year and the cost-of-living crisis all began to close in with most members towards the end of the year predicting a tightening of the market and downturn of the industry. The year ahead will see a new Government, and the AEA will be asking whomsoever is in power, for consistency and stability. We ask that legislation is carefully considered in the context of still relating to a global market, and to consider that divergence for the sole purpose of legislation in England and Wales, is expensive, disruptive, and detrimental to the UK economy. We also ask for a government that supports its SMEs, particularly in export, but also in ensuring that the skills market supports talent in niche areas and where there is a need from employers for trained personnel. |
The membership continues to support the AEA, seeing high value in being well-informed. Members respect the Association for its expertise on economic and legislative issues. Main achievements throughout the year included the lobbying of government on the Equipment Theft (Prevention) Act, a piece of legislation that could have serious implications for our markets if not enacted in a considerate and timely manner; the development and promotion of the skills initiative We Are Land-based Engineering, created to provide information on careers across both the Agricultural and Outdoor Power Engineering sectors, and now gaining traction through schools and educational establishments, as well as the support of industry through manufacturers and dealers and the progressive strengthening of BAGMA, the British Agricultural & Garden Machinery Association, with the addition of personnel and services, in particular the appointment of Nick Darking as a new Director, and a partnership with the buying group, Troy Global; |
Highlights for the AEA in the financial year included: |
- The facilitation of information for members through face-to face and on-line meetings. This included all Council meetings, Technical Committee meetings, Special Interest Groups, networking, and events. |
- The provision of market intelligence through various Newsletters and Bulletins including the Economic Newsletters, and the Manufacturer's Bulletins. |
- The representation and management of, including guidance, assistance, and input, into the UK legislative framework, the global, European, and International technical standards forums, including BSI, CEN/CENELEC and ISO/IEC. |
- The management and development of the National Sprayer Testing and National Spreader Testing Schemes (NSTS). |
- A continued Training for Business programme offering customised training to the agricultural and outdoor power sectors. |
- The provision of in-house data to members of the Vehicle Data Management System (VRMS) for first registrations scheme. |
- The provision of Secretariat Services to the Milking Equipment Association Limited (MEA). |
- The organisation, management, and delivery of the Tillage event on Thursday 14th September 2023, at W H Corbett, Norton-Juxta-Twycross, CV9 3QH. |
- The maintenance of secure and active relationships with relevant organisations in the UK such as IAGRE, BIGGA, GMA, EAMA, MAKE UK, the Agri Supply Chain Coalition and Export Partners UK, and with it, close engagement with DEFRA, DIT, DfT, BEIS and other Government Departments. |
The Agricultural Engineers Association |
Company Limited by Guarantee (Registered number: 00544745) |
Strategic Report |
for the Year Ended 31 October 2023 |
- The continued membership of the Agri-tech WG for the Department of International Trade (DIT) and the development and part ownership of the Agri-tech portal website. |
- The continued support of the Landbased Training and Engineering Committee (LETEC), including its work on Trailblazer Apprenticeships and on T Level Qualifications. |
- The development and continued promotion of the comprehensive skills campaign We Are Land-based Engineering, providing information and material to attract the next generation of technicians and engineers into the sector. |
- Enhanced and improved social and digital media presence. |
- The support of Industry led Schemes such as the Voluntary Initiative, the Amenity Forum, and the CESAR Scheme. |
- The continued support and commitment of relevant European Organisations such as CEMA, EGMF ATVEA and global organisations such as Agrievolution. |
- The transition and investment into British Agricultural & Garden Machinery Association (BAGMA), including: |
- The appointment of a new General Manager (appointed March 2023) |
- The appointment of a CRM Administrator |
- The addition of Troy Global buying group to the portfolio of services |
- Increased communication to members and public via marketing and social media |
Results |
The Company made an operating loss for the year which after taxation amounted to £22,856. At the 31 of October 2023 the company had net assets of £1,604,536. Full details of income and expenditure for the year are shown in the Financial Statements accompanying the Report. Prudent investment and the accumulation of reserves enable the company to enjoy a stable position and be positive and confident about the future. |
Employment |
The company is committed to ensuring that its recruitment and employment policies are executed without discrimination in the form of race, creed, gender, disability or otherwise. The objective is to recruit and retain highly qualified and motivated staff who will share in the success of the business of the Association. |
Health and safety |
The Board has received regular reports from the Health & Safety Committee on the safety of the premises and working conditions. No health and safety issues were reported. |
On behalf of the board: |
The Agricultural Engineers Association |
Company Limited by Guarantee (Registered number: 00544745) |
Report of the Directors |
for the Year Ended 31 October 2023 |
The directors present their report with the financial statements of the company for the year ended 31 October 2023. |
Directors |
The directors shown below have held office during the whole of the period from 1 November 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
Statement of directors' responsibilities |
The directors are responsible for preparing the Strategic report, the Report of the directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Statement as to disclosure of information to auditors |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
The Agricultural Engineers Association |
Company Limited by Guarantee (Registered number: 00544745) |
Report of the Directors |
for the Year Ended 31 October 2023 |
Auditors |
The auditors, Moore Thompson, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
The Agricultural Engineers Association |
Company Limited by Guarantee |
Opinion |
We have audited the financial statements of The Agricultural Engineers Association Company Limited by Guarantee (the 'company') for the year ended 31 October 2023 which comprise the Statement of income and retained earnings, Statement of financial position, Statement of cash flows and Notes to the statement of cash flows, Notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 October 2023 and of its loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic report and the Report of the directors, but does not include the financial statements and our Report of the auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Report of the Independent Auditors to the Members of |
The Agricultural Engineers Association |
Company Limited by Guarantee |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic report and the Report of the directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic report and the Report of the directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Report of the directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of directors' responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
The Agricultural Engineers Association |
Company Limited by Guarantee |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- | the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- | we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the client company's sector. |
- | we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company; |
- | we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- | identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- | making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; |
- | considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
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 journals entries to identify unusual transactions; |
- | assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; |
- | investigated the rationale behind significant or unusual transactions. |
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 statement disclosures to underlying supporting documentation; |
- | reading the minutes of meetings of those charged with governance; |
- | enquiring of management as to actual and potential litigation and claims; |
- | reviewing correspondence with HMRC and the company's legal advisors. |
Report of the Independent Auditors to the Members of |
The Agricultural Engineers Association |
Company Limited by Guarantee |
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 for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Bank House |
Broad Street |
Spalding |
Lincolnshire |
PE11 1TB |
The Agricultural Engineers Association |
Company Limited by Guarantee (Registered number: 00544745) |
Statement of Income and Retained Earnings |
for the Year Ended 31 October 2023 |
2023 | 2022 |
Notes | £ | £ |
Turnover | 4 |
Cost of sales |
Gross profit |
Administrative expenses |
(21,592 | ) | 2,620 |
Other operating income | 5 |
Operating (loss)/profit | 7 | ( |
) |
Interest receivable and similar income |
(13,046 | ) | 4,175 |
Interest payable and similar expenses | 8 | ( |
) |
Loss before taxation | ( |
) | ( |
) |
Tax on loss | 9 | ( |
) |
(Loss)/profit for the financial year | ( |
) |
Retained earnings at beginning of year |
Retained earnings at end of year |
The Agricultural Engineers Association |
Company Limited by Guarantee (Registered number: 00544745) |
Statement of Financial Position |
31 October 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
Fixed assets |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
Current assets |
Debtors | 13 |
Investments | 14 |
Cash at bank |
Creditors |
Amounts falling due within one year | 15 |
Net current assets |
Total assets less current liabilities |
Provisions for liabilities | 17 |
Net assets |
Reserves |
Retained earnings | 18 |
The financial statements were approved by the Board of Directors and authorised for issue on |
The Agricultural Engineers Association |
Company Limited by Guarantee (Registered number: 00544745) |
Statement of Cash Flows |
for the Year Ended 31 October 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
550,121 |
Cash and cash equivalents at end of year |
2 |
592,031 |
629,058 |
The Agricultural Engineers Association |
Company Limited by Guarantee (Registered number: 00544745) |
Notes to the Statement of Cash Flows |
for the Year Ended 31 October 2023 |
1. | Reconciliation of loss before taxation to cash generated from operations |
2023 | 2022 |
£ | £ |
Loss before taxation | ( |
) | ( |
) |
Depreciation charges |
(Gain)/loss on revaluation of investment | (2,245 | ) | 4,736 |
Finance costs | (1,226 | ) | 5,540 |
Finance income | (7,437 | ) | (665 | ) |
78,809 | 103,413 |
Increase in trade and other debtors | ( |
) | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | Cash and cash equivalents |
The amounts disclosed on the Statement of cash flows in respect of cash and cash equivalents are in respect of these Statement of financial position amounts: |
Year ended 31 October 2023 |
31.10.23 | 1.11.22 |
£ | £ |
Cash and cash equivalents | 592,031 | 629,058 |
Year ended 31 October 2022 |
31.10.22 | 1.11.21 |
£ | £ |
Cash and cash equivalents | 629,058 | 550,121 |
3. | Analysis of changes in net funds |
At 1.11.22 | Cash flow | At 31.10.23 |
£ | £ | £ |
Net cash |
Cash at bank | 629,058 | (37,027 | ) | 592,031 |
629,058 | ( |
) | 592,031 |
Liquid resources |
Current asset investments | 39,225 | 2,245 | 41,470 |
39,225 | 2,245 | 41,470 |
Total | 668,283 | (34,782 | ) | 633,501 |
The Agricultural Engineers Association |
Company Limited by Guarantee (Registered number: 00544745) |
Notes to the Financial Statements |
for the Year Ended 31 October 2023 |
1. | Statutory information |
The Agricultural Engineers Association Company Limited by Guarantee is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | Statement of compliance |
3. | Accounting policies |
Basis of preparing the financial statements |
Preparation of consolidated financial statements |
The financial statements contain information about The Agricultural Engineers Association Company Limited by Guarantee as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements. |
Judgements and key sources of estimation uncertainty |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Revenue recognition |
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. |
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. |
Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Intangible fixed assets are being amortised evenly over their estimated useful life of four years. |
The Agricultural Engineers Association |
Company Limited by Guarantee (Registered number: 00544745) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
3. | Accounting policies - continued |
Tangible fixed assets |
Land | - | Not depreciated |
Freehold property and car park | - | 50 / 25 / 5 years straight line |
Fixtures and fittings | - | 4 years straight line |
Office furniture | - | 4 years straight line |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Operating leases |
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis. |
Defined contribution plans |
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. |
When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises. |
The Agricultural Engineers Association |
Company Limited by Guarantee (Registered number: 00544745) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
3. | Accounting policies - continued |
Provisions |
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. |
Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises. |
Impairment of fixed assets |
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. |
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. |
Investments |
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. |
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss. |
4. | Turnover |
The turnover and loss before taxation are attributable to the one principal activity of the company. |
5. | Other operating income |
2023 | 2022 |
£ | £ |
Dividends receivable |
6. | Employees and directors |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The Agricultural Engineers Association |
Company Limited by Guarantee (Registered number: 00544745) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
6. | Employees and directors - continued |
The average number of employees during the year was as follows: |
2023 | 2022 |
Management staff | 7 | 5 |
Other staff | 11 | 13 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
7. | Operating (loss)/profit |
The operating loss (2022 - operating profit) is stated after charging: |
2023 | 2022 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Goodwill amortisation |
Intangible fixed assets amortisation |
Auditors remuneration |
8. | Interest payable and similar expenses |
2023 | 2022 |
£ | £ |
(Profit) / loss on fair value |
adjustment | ( |
) |
( |
) |
The Agricultural Engineers Association |
Company Limited by Guarantee (Registered number: 00544745) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
9. | Taxation |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the loss for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
PY tax adj | - | (2,526 | ) |
Total current tax | ( |
) |
Deferred tax | ( |
) |
Tax on loss | ( |
) |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Loss before tax | ( |
) | ( |
) |
Loss multiplied by the standard rate of corporation tax in the UK of |
( |
) |
( |
) |
Effects of: |
Income not taxable for tax purposes | ( |
) | ( |
) |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Adjustments to tax charge in respect of previous periods | ( |
) |
Deferred taxation | 11,036 | (21,832 | ) |
Fair value adjustment on financial assets | (307 | ) | 1,052 |
Tax loss carried forward | 1,879 | - |
Total tax charge/(credit) | 11,036 | (23,700 | ) |
The Agricultural Engineers Association |
Company Limited by Guarantee (Registered number: 00544745) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
10. | Intangible fixed assets |
Intangible |
fixed |
Goodwill | assets | Totals |
£ | £ | £ |
Cost |
At 1 November 2022 |
and 31 October 2023 |
Amortisation |
At 1 November 2022 |
Amortisation for year |
At 31 October 2023 |
Net book value |
At 31 October 2023 |
At 31 October 2022 |
11. | Tangible fixed assets |
Freehold |
property | Fixtures |
and car | Office | and |
park | furniture | fittings | Totals |
£ | £ | £ | £ |
Cost |
At 1 November 2022 |
Additions |
At 31 October 2023 |
Depreciation |
At 1 November 2022 |
Charge for year |
At 31 October 2023 |
Net book value |
At 31 October 2023 |
At 31 October 2022 |
12. | Investments |
Investments (neither listed nor unlisted) were as follows: |
2023 | 2022 |
£ | £ |
Other investments | 102 | 102 |
The Agricultural Engineers Association |
Company Limited by Guarantee (Registered number: 00544745) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
12. | Investments - continued |
The company owns a 100% shareholding in Outdoor Power Equipment Limited at 31 October 2023, a company incorporated in the UK of which is dormant. |
The company owns a 100% shareholding in Samuelson Shows Limited at 31 October 2023, a company incorporated in the UK which is dormant. |
13. | Debtors: amounts falling due within one year |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors | 324 | 33 |
Deferred tax asset |
Prepayments and accrued income |
Deferred tax asset |
2022 |
£ |
Additions | 21,832 |
Deferred tax | (20,406 | ) |
14. | Current asset investments |
2023 | 2022 |
£ | £ |
Other investments |
15. | Creditors: amounts falling due within one year |
2023 | 2022 |
£ | £ |
Trade creditors |
Corporation tax |
Social security and other taxes |
VAT | 25,337 | 5,203 |
Other creditors |
Accruals and deferred income |
The Agricultural Engineers Association |
Company Limited by Guarantee (Registered number: 00544745) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
16. | Leasing agreements |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
17. | Provisions for liabilities |
2023 |
£ |
Deferred tax |
Deferred tax | 9,610 |
Deferred |
tax |
£ |
Balance at 1 November 2022 | ( |
) |
Provided during year |
Balance at 31 October 2023 |
18. | Reserves |
Retained |
earnings |
£ |
At 1 November 2022 |
Deficit for the year | ( |
) |
At 31 October 2023 |
19. | Employee benefits |
Defined contribution plans |
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £208,996 (2022: £178,242). |