Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31false2023-01-01engien design and manufacture2322truetrueThe members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006. 03668354 2023-01-01 2023-12-31 03668354 2022-01-01 2022-12-31 03668354 2023-12-31 03668354 2022-12-31 03668354 c:Director1 2023-01-01 2023-12-31 03668354 d:Buildings d:ShortLeaseholdAssets 2023-01-01 2023-12-31 03668354 d:Buildings d:ShortLeaseholdAssets 2023-12-31 03668354 d:Buildings d:ShortLeaseholdAssets 2022-12-31 03668354 d:PlantMachinery 2023-01-01 2023-12-31 03668354 d:PlantMachinery 2023-12-31 03668354 d:PlantMachinery 2022-12-31 03668354 d:PlantMachinery d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 03668354 d:MotorVehicles 2023-01-01 2023-12-31 03668354 d:MotorVehicles 2023-12-31 03668354 d:MotorVehicles 2022-12-31 03668354 d:MotorVehicles d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 03668354 d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 03668354 d:CurrentFinancialInstruments 2023-12-31 03668354 d:CurrentFinancialInstruments 2022-12-31 03668354 d:Non-currentFinancialInstruments 2023-12-31 03668354 d:Non-currentFinancialInstruments 2022-12-31 03668354 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 03668354 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 03668354 d:Non-currentFinancialInstruments d:AfterOneYear 2023-12-31 03668354 d:Non-currentFinancialInstruments d:AfterOneYear 2022-12-31 03668354 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2023-12-31 03668354 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2022-12-31 03668354 d:ShareCapital 2023-12-31 03668354 d:ShareCapital 2022-12-31 03668354 d:SharePremium 2023-12-31 03668354 d:SharePremium 2022-12-31 03668354 d:OtherMiscellaneousReserve 2023-01-01 2023-12-31 03668354 d:OtherMiscellaneousReserve 2023-12-31 03668354 d:OtherMiscellaneousReserve 2022-12-31 03668354 d:RetainedEarningsAccumulatedLosses 2023-12-31 03668354 d:RetainedEarningsAccumulatedLosses 2022-12-31 03668354 c:FRS102 2023-01-01 2023-12-31 03668354 c:AuditExempt-NoAccountantsReport 2023-01-01 2023-12-31 03668354 c:FullAccounts 2023-01-01 2023-12-31 03668354 c:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 03668354 e:PoundSterling 2023-01-01 2023-12-31 iso4217:GBP xbrli:pure
Registered number: 03668354






ADVANCED ENGINE RESEARCH LIMITED
UNAUDITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023










img2198.png

 
ADVANCED ENGINE RESEARCH LIMITED
REGISTERED NUMBER:03668354

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 4 
568,936
673,470

  
568,936
673,470

Current assets
  

Stocks
 5 
3,568,938
2,703,514

Debtors
 6 
432,611
630,363

Cash at bank and in hand
 7 
667,490
17,104

  
4,669,039
3,350,981

Creditors: amounts falling due within one year
 8 
(1,636,440)
(559,906)

Net current assets
  
 
 
3,032,599
 
 
2,791,075

Total assets less current liabilities
  
3,601,535
3,464,545

Creditors: amounts falling due after more than one year
 9 
(1,341,101)
(1,285,256)

  

Net assets
  
2,260,434
2,179,289


Capital and reserves
  

Called up share capital 
  
284
284

Share premium account
 11 
394,802
394,802

Other reserves
 11 
15,673,376
15,633,345

Profit and loss account
 11 
(13,808,028)
(13,849,142)

  
2,260,434
2,179,289


Page 1

 
ADVANCED ENGINE RESEARCH LIMITED
REGISTERED NUMBER:03668354
    
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

The directors consider that the company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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

The company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




M Lancaster
Director

Date: 10 April 2024

Page 2

 
ADVANCED ENGINE RESEARCH LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Advanced Engine Research Limited is a private company limited by shares, incorporated in England and Wales.  Its registered office is Millhouse, 32-38 East Street, Rochford, Essex, SS4 1DB.
The principal activity of the company continued to be that of engine design and manufacture.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The following principal accounting policies have been applied:

 
2.2

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 3

 
ADVANCED ENGINE RESEARCH LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the company has transferred the significant risks and rewards of ownership to the buyer;
the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.4

Operating leases: the company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.6

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 4

 
ADVANCED ENGINE RESEARCH LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.7

Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the company in independently administered funds.

 
2.8

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 5

 
ADVANCED ENGINE RESEARCH LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.9
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

S/Term Leasehold Property
-
over term of the lease
Plant & machinery
-
25%
Motor vehicles
-
25%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.10

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.11

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.13

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 6

 
ADVANCED ENGINE RESEARCH LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.14

Financial instruments

The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

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

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

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the company after the deduction of all its liabilities.
Page 7

 
ADVANCED ENGINE RESEARCH LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.14
Financial instruments (continued)


Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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


3.


Employees

The average monthly number of employees, including directors, during the year was 23 (2022 -22).

Page 8

 
ADVANCED ENGINE RESEARCH LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Tangible fixed assets





S/Term Leasehold Property
Plant & machinery
Motor vehicles
Total

£
£
£
£



Cost or valuation


At 1 January 2023
646,273
1,542,001
25,534
2,213,808


Additions
2,334
14,711
-
17,045



At 31 December 2023

648,607
1,556,712
25,534
2,230,853



Depreciation


At 1 January 2023
348,833
1,165,972
25,534
1,540,339


Charge for the year on owned assets
50,834
70,744
-
121,578



At 31 December 2023

399,667
1,236,716
25,534
1,661,917



Net book value



At 31 December 2023
248,940
319,996
-
568,936



At 31 December 2022
297,440
376,030
-
673,470

The net book value of assets held under hire purchase contracts or finance leases at the balance sheet date is £Nil (2022: £138,300).


5.


Stocks

2023
2022
£
£

Raw materials and consumables
2,447,483
1,658,426

Work in progress (goods to be sold)
1,121,455
1,045,088

3,568,938
2,703,514


Page 9

 
ADVANCED ENGINE RESEARCH LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Debtors


2023
2022
£
£

Due after more than one year

Other debtors
49,451
57,652

49,451
57,652

Due within one year

Trade debtors
279,154
267,669

Other debtors
36,919
245,346

Prepayments and accrued income
67,087
59,696

432,611
630,363



7.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
667,490
17,104

Less: bank overdrafts
-
(1)

667,490
17,103



8.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
-
1

Trade creditors
147,912
156,613

Other taxation and social security
60,363
29,492

Obligations under finance lease and hire purchase contracts
-
29,623

Other creditors
6,722
4,921

Accruals and deferred income
1,421,443
339,256

1,636,440
559,906


Page 10

 
ADVANCED ENGINE RESEARCH LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Other loans
1,341,101
1,285,256

1,341,101
1,285,256


Included in other loans is £657,000 loan stock convertible into share capital at the rate of 95% of the value of the loan stock.
Interest is payable at the rate of 8.5% per annum on the initial loan stock value.
The loan stock will be repayable on 31 December 2024 if the conversion option is not exercised.
RR Dyson holds a debenture containing fixed and floating charges over the assets of the company.


10.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due 1-2 years

Other loans
1,341,101
1,285,256




11.


Reserves

Other reserves

Other reserves consist of a capital contribution reserve in relation to a long term loan that has been discounted in accordance with FRS 102.


12.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £41,724 (2022: £34,424). Contributions totalling £6,722 (2022: £4,922) were payable to the fund at the balance sheet date and are included in creditors.

 
Page 11