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Tinius Olsen Limited

Registered number: 00998521
Annual Report
For the year ended 31 December 2023

 
TINIUS OLSEN LIMITED
 
 
COMPANY INFORMATION


Directors
C R Tait III 
M Youings 
M J Wheeler 
S L Elliott 




Company secretary
S Elliott



Registered number
00998521



Registered office
6 Perrywood Business Park
Honeycrock Lane

Salfords

Surrey

RH1 5DZ




Independent auditor
Mazars LLP
Chartered Accountants & Statutory Auditor

2nd Floor

6 Sutton Plaza

Sutton Court Road

Sutton

Surrey

SM1 4FS





 
TINIUS OLSEN LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 3
Directors' Report
 
4 - 5
Directors' Responsibilities Statement
 
6
Independent Auditor's Report
 
7 - 10
Consolidated Statement of Comprehensive Income
 
11
Consolidated Statement of Financial Position
 
12 - 13
Company Statement of Financial Position
 
14 - 15
Consolidated Statement of Changes in Equity
 
16
Company Statement of Changes in Equity
 
17
Consolidated Statement of Cash Flows
 
18 - 19
Consolidated Analysis of Net Debt
 
20
Notes to the Financial Statements
 
21 - 47


 
TINIUS OLSEN LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The Directors present  their  strategic  report  together  with  the audited consolidated  financial  statements for Tinius Olsen Limited (the 'Company') and its subsidiaries (the 'Group') for the year  ended 31 December 2023.

Business review
 
In presenting this report the financial statements consolidate the results of Tinius Olsen Limited ("the Company"), its subsidiary undertaking Tinius Olsen India Pvt Limited incorporated in India and its subsidiary undertaking Tinius Olsen Testing Machine Company Shanghai Ltd incorporated in the Peoples Republic of China. The Group made a profit before taxation of £1,207,117 (2022: loss of £351,981) for the year ended 31 December 2023. The underlying performance of the Company made a profit before taxation of £1,076,308 (2022: loss of £409,400). The Company will be able to maintain positive cash balances for the foreseeable future and therefore the going concern basis of accounting has been adopted.

Principal risks and uncertainties
 
The Directors consider that the key business risk remains competition and as such this continues to be monitored by a regular review of market share and margins. Continuing economic uncertainty in the world is a consideration and as such will be monitored as to any affect this may have on the business.

Economic impact of global events

UK businesses are facing many uncertainties and challenges caused by political, economic, social, technological, legal and environmental factors. These uncertainties have contributed to an environment where there exists a range of issues and risks, including inflation, rising interest rates, labour shortages, disrupted supply chains and new ways of working.
The Directors have carried out an assessment of the potential impact of these uncertainties on the business, including the impact of mitigation measures, and concluded that the greatest impact on the business is expected to be from the economic ripple effect on the global economy. The Directors have taken account of these potential impacts in their going concern assessment.
The Company continues to work with its partners to minimise any impacts of these events and maximise the realisation of any opportunities they may provide to the business.

Page 1

 
TINIUS OLSEN LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Financial key performance indicators
 
The board utilises a number of key performance indicators to enable consistent method of analysing performance. The key performance indicators, which are used by the board are as follows:
Gross profit margin performance for all customers
Gross profit margin measures the profit achieved on sales after taking account of the direct cost incurred for each customer. These trends are closely monitored and help ensure that all customer relationships are sustainable. This has reduced to 57% compared with last year 2022: 60%.
Revenue
Revenue measures the level of turnover with customers, after taking account trade discounts. In a normal trading year, this is used to compare performance against prior years and forecasts. In 2022, the Group experienced supply chain shortages for certain components necessary to ship higher capacity and price machines. In 2023, supply chain shortages were not as prevalent resulting in turnover with customers that was 8% higher than our 2021 results. Comparison to 2021 is more relevant given the anomalies that existed in 2022.

Net profit performance
The net profit performance measures the net profit achieved after taking account the total costs incurred including both direct and indirect cost i.e. profit on ordinary activities after taxation. This is used to compare the Group's performance against prior year and forecasts, this year's net profit performance is 9.6% (2022: loss of 3.7%, 2021: profit of 13.2%).
Current ratio performance
The current ratio measures that the Group has sufficient current assets to cover its current liability and used in the measurement of the Group's liquidity. The current ratio is currently at 1.91 (2022: 2.23).

Financial instruments
 
Working capital requirements are met principally out of retained profits. In addition, trade debtors and trade creditors arise directly from the Group's operations. The Group does not enter into any hedging arrangements. 
Credit risk and currency risk arise from the Group's activities. The Group's policy in respect of credit risk is to require appropriate credit checks on potential customers before sales are made, where possible. The Group's policy in respect of currency risk is to invoice primarily in sterling. These risks are monitored by the board of Directors and were not considered to be significant at the Statement of Financial Position date.
The Group's policy in respect of interest rate risk and liquidity risk is to maintain a readily accessible bank deposit accounts to ensure the Group has sufficient funds for operations. The cash deposits are held in current accounts which earn interest at a floating rate. Debt is currently maintained at a fixed interest rate with the parent Company, Tinius Olsen International Company. The Directors monitor the liquidity and cash flow of the Group carefully. 

Page 2

 
TINIUS OLSEN LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


This report was approved by the board and signed on its behalf by:


M Youings
Director

Date: 11 April 2024

Page 3

 
TINIUS OLSEN LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their annual report and the audited consolidated financial statements of Tinius Olsen Limited (the 'Company') for the year ended 31 December 2023.

Principal activity

The principal activity of the Group and Company during the year was that of producers of load test equipment. 

Results and dividends

The Group profit for the year, after taxation, amounted to £870,707 (2022: loss of £222,194).

The directors do not recommend the payment of a dividend (2022: £nil).

Directors

The directors who served during the year and to the date of this report were:

C R Tait III 
M Youings 
M J Wheeler 
S L Elliott (appointed 20 March 2023)

Future developments

The Group continues to run an extensive research and development programme which, in the opinion of the directors, is essential for the growth of the business. 

Directors' indemnities

As permitted by the Companies Act 2006, the Company has indemnified the directors and officers in respect of proceedings which may be brought by third parties and such indemnification was in place throughout the year and at the date of approval of these financial statements. Neither the Company's indemnity nor insurance provides cover in the event that a director or officer is proved to have acted fraudulently or dishonestly. 

Matters covered in the Group Strategic Report

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

Provision of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware; and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company and Group since the year end.

Page 4

 
TINIUS OLSEN LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Auditor

The auditor, Mazars LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf by:
 





M Youings
Director

Date: 11 April 2024

Page 5

 
TINIUS OLSEN LIMITED
 
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated audited consolidated financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare audited consolidated financial statements for each financial year. Under that law the directors have elected to prepare the audited consolidated financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 audited consolidated financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these audited consolidated financial statements, the directors are required to:

select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 6

 
TINIUS OLSEN LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TINIUS OLSEN LIMITED
 

Opinion

We have audited the financial statements of Tinius Olsen Limited (the ‘Company’) for the year ended 31 December 2023 which comprise the Consolidated Statement of Comprehensive Income, the Group and Company Statements of Financial Position, the Group and Company Statements of Changes in Equity, the Group Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. 
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the Group's and of the Parent Company’s affairs as at 31 December 2023 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s 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 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.
Page 7

 
TINIUS OLSEN LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TINIUS OLSEN LIMITED
 

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 the audit:
 
the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In 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 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:

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.

Page 8

 
TINIUS OLSEN LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TINIUS OLSEN LIMITED
 

Responsibilities of Directors

As explained more fully in the Directors' Responsibilities Statement set out on page 5, 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 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 intend either to liquidate the 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.
 
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. 

Based on our understanding of the [company] and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation and anti-money laundering regulation.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
Inquiring of management and, where appropriate, those charged with governance, as to whether the company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the Company which were contrary to applicable laws and regulations, including fraud.  

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006. 
Page 9

 
TINIUS OLSEN LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TINIUS OLSEN LIMITED
 

In addition, we evaluated the directors' and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of override of controls, and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to revenue recognition (which we pinpointed to the occurrence assertion) and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:
Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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 auditor’s report.

Use of the audit report

This report is made solely to the Company's members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body for our audit work, for this report, or for the opinions we have formed.




Yuvan Deena (Senior statutory auditor)  
for and on behalf of Mazars LLP

Chartered Accountants and Statutory Auditor 
2nd Floor
6 Sutton Plaza
Sutton Court Road
Sutton
SM1 4FS

15 April 2024
Page 10

 
TINIUS OLSEN LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
  
9,088,579
5,914,164

Cost of sales
  
(3,940,121)
(2,378,849)

Gross profit
  
5,148,458
3,535,315

Distribution costs
  
(2,876,885)
(1,636,592)

Administrative expenses
  
(1,577,746)
(2,388,872)

Other operating income
 5 
343,964
129,016

Operating profit/(loss)
 6 
1,037,791
(361,133)

Interest receivable and similar income
 10 
190,179
36,481

Interest payable and similar expenses
 11 
(20,853)
(27,329)

Profit/(loss) before taxation
  
1,207,117
(351,981)

Tax on profit/(loss)
 12 
(336,410)
129,787

Profit/(loss) for the financial year
  
870,707
(222,194)

  

Currency translation differences gains/(losses)
  
21,612
(17,736)

Other comprehensive income/(expense) for the year
  
21,612
(17,736)

Total comprehensive income/(expense) for the year
  
892,319
(239,930)

Profit/(loss) for the year attributable to:
  

Owners of the parent Company
  
870,707
(222,194)

  
870,707
(222,194)

Total comprehensive income/(expense) for the year attributable to:
  

Owners of the parent Company
  
892,319
(239,930)

  
892,319
(239,930)

The Consolidated Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.

The notes on pages 21 to 47 form part of these financial statements.

Page 11

 
TINIUS OLSEN LIMITED
REGISTERED NUMBER: 00998521

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 13 
-
-

Tangible assets
 14 
1,555,093
1,647,515

Investments
 15 
620,000
620,000

Investment property
 16 
700,000
460,000

  
2,875,093
2,727,515

Current assets
  

Stocks
 17 
4,004,233
3,427,396

Debtors: amounts falling due within one year
 18 
5,139,173
2,944,031

Cash at bank and in hand
 19 
636,564
998,585

  
9,779,970
7,370,012

Creditors: amounts falling due within one year
 20 
(5,131,575)
(3,301,934)

Net current assets
  
 
 
4,648,395
 
 
4,068,078

Total assets less current liabilities
  
7,523,488
6,795,593

Creditors: amounts falling due after more than one year
 21 
(116,624)
(316,453)

Deferred taxation
 25 
(35,405)
-

  
 
 
(35,405)
 
 
-

Net assets
  
7,371,459
6,479,140

Page 12

 
TINIUS OLSEN LIMITED
REGISTERED NUMBER: 00998521
    
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Capital and reserves
  

Called up share capital 
 26 
18,000
18,000

Share premium account
 27 
558,000
558,000

Capital contribution reserve
 27 
32,619
32,619

Profit and loss account
 27 
6,762,840
5,870,521

Total equity
  
7,371,459
6,479,140


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

M Youings
Director
Date: 11 April 2024

The notes on pages 21 to 47 form part of these financial statements.

Page 13

 
TINIUS OLSEN LIMITED
REGISTERED NUMBER: 00998521

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 13 
-
-

Tangible assets
 14 
1,528,395
1,565,036

Investments
 15 
1,792,277
1,792,277

Investment property
 16 
700,000
460,000

  
4,020,672
3,817,313

Current assets
  

Stocks
 17 
3,019,832
2,555,424

Debtors: amounts falling due within one year
 18 
5,240,108
3,179,409

Cash at bank and in hand
 19 
234,069
431,877

  
8,494,009
6,166,710

Creditors: amounts falling due within one year
 20 
(3,646,747)
(1,739,548)

Net current assets
  
 
 
4,847,262
 
 
4,427,162

Total assets less current liabilities
  
8,867,934
8,244,475

Creditors: amounts falling due after more than one year
 21 
(116,624)
(314,535)

Deferred taxation
 25 
(60,291)
-

  
 
 
(60,291)
 
 
-

Net assets
  
8,691,019
7,929,940

Page 14

 
TINIUS OLSEN LIMITED
REGISTERED NUMBER: 00998521
    
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£


Capital and reserves
  

Called up share capital 
 26 
18,000
18,000

Share premium account
 27 
558,000
558,000

Capital contribution reserve
 27 
32,619
32,619

Profit and loss account
 27 
8,082,400
7,321,321

Total equity
  
8,691,019
7,929,940


The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the parent company for the year was £761,079 (2022: loss of £244,636).
 
The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




M Youings
Director

Date: 11 April 2024

The notes on pages 21 to 47 form part of these financial statements.

Page 15

 
TINIUS OLSEN LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Share premium account
Capital contribution reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 January 2022
18,000
558,000
32,619
6,110,451
6,719,070


Comprehensive income for the year

Loss for the year

-
-
-
(222,194)
(222,194)

Currency translation differences
-
-
-
(17,736)
(17,736)


Other comprehensive expense for the year
-
-
-
(17,736)
(17,736)


Total comprehensive income for the year
-
-
-
(239,930)
(239,930)


Total transactions with owners
-
-
-
-
-



At 1 January 2023
18,000
558,000
32,619
5,870,521
6,479,140


Comprehensive income for the year

Profit for the year

-
-
-
870,707
870,707

Currency translation differences
-
-
-
21,612
21,612


Other comprehensive expense for the year
-
-
-
21,612
21,612


Total comprehensive expense for the year
-
-
-
892,319
892,319


Total transactions with owners
-
-
-
-
-


At 31 December 2023
18,000
558,000
32,619
6,762,840
7,371,459


The notes on pages 21 to 47 form part of these financial statements.

Page 16

 
TINIUS OLSEN LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Share premium account
Capital contribution reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 January 2022
18,000
558,000
32,619
7,565,957
8,174,576


Comprehensive income for the year

Loss for the year
-
-
-
(244,636)
(244,636)


Other comprehensive income for the year
-
-
-
-
-


Total comprehensive income for the year
-
-
-
(244,636)
(244,636)


Total transactions with owners
-
-
-
-
-



At 1 January 2023
18,000
558,000
32,619
7,321,321
7,929,940


Comprehensive expense for the year

Profit for the year
-
-
-
761,079
761,079


Other comprehensive income for the year
-
-
-
-
-


Total comprehensive income for the year
-
-
-
761,079
761,079


Total transactions with owners
-
-
-
-
-


At 31 December 2023
18,000
558,000
32,619
8,082,400
8,691,019


The notes on pages 21 to 47 form part of these financial statements.

Page 17

 
TINIUS OLSEN LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit/(loss) for the financial year
870,707
(222,194)

Adjustments for:

Amortisation of intangible assets
-
4,000

Depreciation of tangible assets
146,703
136,033

Impairments of fixed assets
-
2,094

Interest paid
20,853
27,329

Interest received
(190,179)
(36,481)

Taxation charge
336,410
(129,787)

Increase in stocks
(576,837)
(918,501)

(Increase)/decrease in debtors
(271,129)
497,055

Increase in creditors
1,640,616
1,102,061

Revaluation surplus on investment property
(240,000)
-

Corporation tax (paid)
(285,018)
(186,784)

Foreign exchange
64,198
5,572

Net cash generated from operating activities

1,516,324
280,397


Cash flows from investing activities

Purchase of unlisted investment
-
(620,000)

Purchase of tangible fixed assets
(57,159)
(230,927)

Sale of tangible fixed assets
2,878
-

New loans to investments
(1,940,000)
(1,500,000)

Interest received
190,179
36,481

Net cash from investing activities

(1,804,102)
(2,314,446)

Cash flows from financing activities

Repayment of/new finance leases
(10,804)
-

Interest paid on loan
(20,853)
-

Capital element of lease repaid
-
(2,428)

Repayment of intercompany loans
-
(98,776)

Net cash used in financing activities
(31,657)
(101,204)
Page 18

 
TINIUS OLSEN LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022

£
£



Net (decrease) in cash and cash equivalents
(319,435)
(2,135,253)

Cash and cash equivalents at beginning of year
998,585
3,157,146

Foreign exchange losses
(42,586)
(23,308)

Cash and cash equivalents at the end of year
636,564
998,585


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
636,564
998,585

636,564
998,585


The notes on pages 21 to 47 form part of these financial statements.

Page 19

 
TINIUS OLSEN LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023





At 1 January 2023
Cash flows
Repayment of finance leases
At 31 December 2023
£

£

£

£

Cash at bank and in hand

998,585

(362,021)

-

636,564

Finance leases

(12,749)

-

10,804

(1,945)


985,836
(362,021)
10,804
634,619

The notes on pages 21 to 47 form part of these financial statements.

Page 20

 
TINIUS OLSEN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Tinius Olsen Limited (the "Company") is a private company limited by shares, and incorporated in England and Wales. The address of its registered office is 6 Perrywood Business Park, Honeycrock Lane, Salfords, Redhill, Surrey, RH1 5DZ.
The principal activity of the Group and Company during the year was that of producers of load test equipment.

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 Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income and Statement of Cashflows in these financial statements.

The financial statements have been presented in Pounds Sterling as this is the currency of the primary economic environment in which the Group and Company operates and is rounded to the nearest pound.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

The year end of Tinius Olsen-India Private Limited is 31 March. The consolidated financial statements incorporates Tinius Olsen-India Private Limited results as at 31 December 2023. 

 
2.3

Going concern

Having considered the basis of preparation and the underlying assumptions of the Group's forecast for the twelve months following the approval of these financial statements, the directors have a reasonable expectation that the Group will be able to meet its liabilities as they fall due during that period of time. It is on this basis that the directors consider it appropriate to prepare the financial statements on a going concern basis for at least 12 months from the date of signing.

Page 21

 
TINIUS OLSEN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentation 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 Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in Statement of Comprehensive Income within 'administrative expenses'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

  
2.5

Turnover

Turnover represents sales to outside customers at invoiced amounts less value added tax or local taxes on sales and is recognised when the risks and rewards of ownership has passed to the customer. These criteria are considered to be met when the goods are dispatched. 

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to Statement of Comprehensive Income on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 22

 
TINIUS OLSEN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.7

Leased assets: the Group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

  
2.8

Research and development

All research and development costs are written of as incurred. 

 
2.9

Interest receivable and similar income

Interest receivable and similar income is recognised in Statement of Comprehensive Income using the effective interest method.

 
2.10

Interest payable and similar expenses

Interest payable and similar expenses are charged to Statement of Comprehensive Income 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.

 
2.11

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

Page 23

 
TINIUS OLSEN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income 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 reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting 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;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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 reporting date.

 
2.13

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. Amortisation charge for the year is included within administrative expenses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Amortisation is charged to administrative expenses in the Statement of Comprehensive Income.

 
2.14

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.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Page 24

 
TINIUS OLSEN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.14
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:

Freehold property
-
over 67 years
Plant and machinery
-
over 7 to 10 years
Motor vehicles
-
over 3 to 5 years
Fixtures and fittings (larger items)
-
over 10 to 20 years
Fixtures and fittings (smaller items)
-
over 3 to 7 years

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.

Depreciation is charged to administrative expenses in the Statement of Comprehensive Income.

 
2.15

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in Statement of Comprehensive Income.

 
2.16

Valuation of investments

Investments in subsidiaries and other unlisted investments are measured at cost less accumulated impairment.

 
2.17

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 reporting 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 Statement of Comprehensive Income.

 
2.18

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.

Page 25

 
TINIUS OLSEN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.19

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.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.20

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.

 
2.21

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

Page 26

 
TINIUS OLSEN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.22

Financial instruments

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

The Group 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 Group's Statement of Financial Position when the Group 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 Group'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 Statement of Comprehensive Income.

Page 27

 
TINIUS OLSEN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.22
Financial instruments (continued)

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 Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies 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.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

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 Group 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 Group 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 Group's contractual obligations expire or are discharged or cancelled.

Page 28

 
TINIUS OLSEN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Critical judgements in applying the Company's accounting policies
The critical judgements that the directors have made in the process of applying the Company's accounting policies that have the most significant effect on the statutory financial statements are discussed below.
(i) Assessing indicators of impairment
In assessing whether there have been any indicators of impairment assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no indicators of impairments identified during the current financial year.
Key sources of estimation uncertainty
(i) Valuation of investment properties
The Company obtain regular third party valuations, from qualified valuers. Where necessary, these are updated based on lease terms, market conditions and sales prices based upon known market transactions for similar properties as a basis for determining the directors' estimation of the fair value of the investment properties. However, the valuation of the Group's investment property is inherently subjective, as it is made on the basis of valuation assumptions. 
(ii) Stock valuation and provision
Stock is reviewed annually with reference to current and new products along with recent sales history of the related products.  
The Directors have considered whether the net realisable value of inventory was lower than the carrying value. Slow-moving, excess and obsolete inventory are reviewed and provided for as necessary. The Directors, having reviewed the run off of inventory subsequent to the year end and the prices achieved have concluded that its net realisable value was not materially lower than the net carrying value at year end.


4.


Turnover

An analysis of turnover by geographical location is as follows:


2023
2022
£
£



United Kingdom
1,739,096
938,587

Rest of Europe
1,564,185
894,265

Rest of World
5,785,298
4,081,312

9,088,579
5,914,164

All turnover arose from the same class of business. 

Page 29

 
TINIUS OLSEN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Other operating income

2023
2022
£
£

Other operating income
343,964
129,016


Other operating income relates to commission income which is a direct charge from the US.


6.


Operating profit/(loss)

The operating profit is stated after (crediting)/charging:

2023
2022
£
£


 
Research & development charged as an expense
8,060
18,319

Gains on foreign exchange differences
41,148
37,709

Operating lease rentals
24,506
21,781

Depreciation of tangible assets
146,703
132,079

Amortisation of intangible assets
-
4,000

Finance lease expense
10,804
2,428

Revaluation surplus on investment property
(240,000)
-

Loss on disposal
-
2,094


7.


Auditor's remuneration

2023
2022
£
£



Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
58,000
50,000

2023
2022
£
£



All other services
22,640
13,164

Page 30

 
TINIUS OLSEN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Employees

Staff costs were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
2,502,735
2,240,392
2,024,214
1,790,750

Social security costs
210,522
212,019
210,221
211,107

Cost of defined contribution scheme
181,437
173,743
165,874
162,593

2,894,694
2,626,154
2,400,309
2,164,450


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Office and management
20
18



Manufacturing
19
20



Sales and design
23
23

62
61

The Company currently contributes to a Group personal pension plan, which is a defined contribution scheme. The assets of the plan are held separately from those of the Company in an independently administered fund. Then pension cost charge also includes contributions payable by the Company to this fund.

Page 31

 
TINIUS OLSEN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Directors' remuneration

2023
2022
£
£



Directors' emoluments
400,690
308,521

Company contributions to defined contribution pension schemes
64,688
49,587

Benefits in kind
4,774
4,774

470,152
362,882

There were 3 directors in the Company's defined contribution pension scheme during the year (2022: 2).
Emoluments of the highest paid director was £182,159 (2022: £176,104). Company pension contributions of £29,772 (2022: £27,596) were made to a defined contribution scheme on his behalf. The director received benefits in kind of £nil (2022: £nil). 
Key management personnel is considered to be the board of directors and total compensation paid to key management personnel is equal to directors' remuneration. 


10.


Interest receivable and similar income

2023
2022
£
£


Other interest receivable
190,179
36,481


11.


Interest payable and similar expenses

2023
2022
£
£


Interest payable on intercompany balances
20,042
24,901

Leases interest
811
2,428

20,853
27,329

Page 32

 
TINIUS OLSEN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Tax on profit/(loss)


2023
2022
£
£

Corporation tax


Current tax on profits for the year
96,453
-

Adjustments in respect of previous periods
-
(818)


96,453
(818)

Foreign tax


Foreign tax on income for the year
46,047
34,974

Foreign tax in respect of prior periods
-
2,376

46,047
37,350

Total current tax
142,500
36,532

Deferred tax


Movement in the period
155,116
(105,762)

Effect of tax rate change on opening balance
-
(21,807)

Adjustments in respect of prior periods
38,794
(38,750)

Total deferred tax
193,910
(166,319)


Taxation on profit/(loss)
336,410
(129,787)
Page 33

 
TINIUS OLSEN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
12.Tax on profit/(loss) (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022: lower than) the standard rate of corporation tax in the UK of 23.52% (2022:19%). The differences are explained below:

2023
2022
£
£


Profit/(loss) before tax
1,207,117
(263,765)


Profit/(loss) multiplied by standard rate of corporation tax in the UK of 23.52% (2022: 19%)
283,914
(50,115)

Effects of:


Expenses not deductible for tax purposes
1,940
(383)

Capital allowances for year in excess of depreciation
1,111
(21,807)

Adjustments to tax charge in respect of previous periods
-
376

Adjustments to tax charge in respect of previous periods - deferred tax
38,794
(38,750)

Additional deduction for R&D expenditure
-
(29,313)

Fixed asset differences
16,958
10,205

Chargeable gains/(losses)
50,143
-

Income not taxable for tax purposes
(56,450)
-

Total tax charge for the year
336,410
(129,787)


Factors that may affect future tax charges

In the Spring Budget 2021, the Government announced that from 1 April 2023 the corporation tax rate will increase to 25%. Since the proposal to increase the rate to 25% had not been substantively enacted at the balance sheet date, its effects are not included in these financial statements. However, it is likely that the overall effect of the change, had it been substantively enacted by the balance sheet date, would be small.

Page 34

 
TINIUS OLSEN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Intangible assets

Group and Company





Computer software

£



Cost


At 1 January 2023
11,996



At 31 December 2023

11,996



Amortisation


At 1 January 2023
11,996


Charge for the year
-



At 31 December 2023

11,996



Net book value



At 31 December 2023
-



At 31 December 2022
-



Page 35

 
TINIUS OLSEN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Tangible fixed assets

Group






Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost


At 1 January 2023
2,096,471
737,544
143,094
1,316,422
4,293,531


Additions
-
13,900
-
43,259
57,159


Disposals
-
-
(1,408)
(195,460)
(196,868)



At 31 December 2023

2,096,471
751,444
141,686
1,164,221
4,153,822



Depreciation


At 1 January 2023
848,802
646,502
125,714
1,024,998
2,646,016


Charge for the year
31,447
31,719
4,954
78,583
146,703


Disposals
-
-
-
(193,990)
(193,990)



At 31 December 2023

880,249
678,221
130,668
909,591
2,598,729



Net book value



At 31 December 2023
1,216,222
73,223
11,018
254,630
1,555,093



At 31 December 2022
1,247,669
91,042
17,380
291,424
1,647,515




The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Freehold property
1,216,222
1,247,669

1,216,222
1,247,669



Page 36

 
TINIUS OLSEN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           14.Tangible fixed assets (continued)


Company






Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£

Cost


At 1 January 2023
2,096,471
732,238
85,185
864,839
3,778,733


Additions
-
12,415
-
39,127
51,542



At 31 December 2023

2,096,471
744,653
85,185
903,966
3,830,275



Depreciation


At 1 January 2023
848,802
642,353
81,629
640,913
2,213,697


Charge for the year
31,447
32,286
3,556
20,894
88,183



At 31 December 2023

880,249
674,639
85,185
661,807
2,301,880



Net book value



At 31 December 2023
1,216,222
70,014
-
242,159
1,528,395



At 31 December 2022
1,247,669
89,885
3,556
223,926
1,565,036





The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Freehold property
1,216,222
1,247,669

1,216,222
1,247,669


Page 37

 
TINIUS OLSEN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Fixed asset investments

Group





Unlisted investments

£



Cost


At 1 January 2023
620,000



At 31 December 2023
620,000






Net book value



At 31 December 2023
620,000



At 31 December 2022
620,000

Company





Investments in subsidiary companies
Unlisted investments
Total

£
£
£



Cost


At 1 January 2023
1,172,277
620,000
1,792,277



At 31 December 2023
1,172,277
620,000
1,792,277






Net book value



At 31 December 2023
1,172,277
620,000
1,792,277



At 31 December 2022
1,172,277
620,000
1,792,277


In the prior year, Tinius Olsen Limited (“Company”, “Investor”, “Lender”) invested £310,000 and £310,000, respectively, for a 17.69% diluted basis in Imetrum. The Investor contributed capital for the upside in Imetrum’s optical extensometry product line (“Vector”), directly as it relates to the materials testing industry.
A loan of £3,440,000 was provided to Imetrum and interest of £195,339 was charged in 2023.

Page 38

 
TINIUS OLSEN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Tinius Olsen India Private Limited
Tinius Olsen India Pvt. Ltd., 59 H (A, Noida Special Economy Zone, Block A, Phase-2, Noida, Uttar Pradesh 201305, India
Producers of load test equipment
Ordinary
100%
Tinius Olsen Testing Machine Company Shanghai Limited
Tinius Olsen Testing Machine Company Shanghai Ltd, Building No. 2, No. 123 Lane 1165, Jindu Road, Minhang District, Shanghai, China
Producers of load test equipment
Ordinary
100%


The aggregate of the share capital and reserves as at 31 December 2023 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit / (Loss)
£
£

Tinius Olsen India Private Limited
676,137
203,642

Tinius Olsen Testing Machine Company Shanghai Limited

(745,184)
(144,928)

Page 39

 
TINIUS OLSEN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Investment property

Group and Company


Freehold investment property

£



Valuation


At 1 January 2023
460,000


Surplus on revaluation
240,000



At 31 December 2023
700,000

The 2023 valuations were made by Vail Williams LLP, who are registered with the Royal Institution of Chartered Surveyors (RICS) at Red Book Valuation on an open market value for existing use basis.



If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2023
2022
£
£


Historic cost
673,187
673,187

673,187
673,187


17.


Stocks

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Raw materials and consumables
846,375
932,411
251,260
201,099

Work in progress (goods to be sold)
1,908,187
2,006,180
1,744,217
1,890,896

Finished goods and goods for resale
1,249,671
488,805
1,024,355
463,429

4,004,233
3,427,396
3,019,832
2,555,424


The difference between purchase price or production cost of stocks and their replacement cost is not material.

During the year, a stock provision of £359,539 (2022: £296,990) was recognised.

Page 40

 
TINIUS OLSEN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

18.


Debtors: amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
895,949
616,354
877,361
475,718

Amounts owed by group undertakings
464,774
177,738
742,504
788,004

Amounts owed by Imetrum
3,440,000
1,500,000
3,440,000
1,500,000

Other debtors
127,240
329,166
54,841
196,242

Prepayments and accrued income
172,502
106,825
125,402
60,192

Tax recoverable
38,708
54,695
-
-

Deferred taxation (note 25)
-
159,253
-
159,253

5,139,173
2,944,031
5,240,108
3,179,409


During the year, a bad debt provision of £45,697 (2022: £45,697) was recognised. 
Amounts owed by group undertakings are unsecured, interest free and repayable on demand. 
Amounts owed by group undertakings relate to entities outside of the UK Group and therefore not eliminated in these consolidated accounts. 


19.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
636,564
998,585
234,069
431,877


Page 41

 
TINIUS OLSEN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Creditors: amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Trade creditors
1,842,197
2,218,458
556,805
696,133

Amounts owed to group companies
2,501,071
645,543
2,670,810
819,317

Corporation tax
95,692
-
95,692
-

Other taxation and social security
53,077
56,999
46,443
55,751

Obligations under finance lease and hire purchase contracts
1,945
10,831
-
-

Other creditors
179,419
40,590
-
-

Accruals and deferred income
458,174
329,513
276,997
168,347

5,131,575
3,301,934
3,646,747
1,739,548


Included within trade creditors is an amount due to Tinius Olsen International Company of £nil (2022: £819,419), relating to stock purchased from the ultimate parent.  
Included within other creditors is a leave provision of £53,814 (2022: £51,830). Refer to note 24.
Amounts owed to group undertakings, other than the loan from Tinius Olsen International Company are unsecured, interest free and repayable on demand. 
Amounts owed to group undertakings relate to entities outside of the UK Group and therefore not eliminated in these consolidated accounts. 


21.


Creditors: amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Net obligations under finance leases and hire purchase contracts
-
1,918
-
-

Amounts due to parent undertakings
116,624
314,535
116,624
314,535

116,624
316,453
116,624
314,535




Page 42

 
TINIUS OLSEN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

22.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Amounts falling due within one year

Amounts due to parent undertakings
197,911
91,102
197,911
91,102

Amounts falling due 1-2 years

Amounts due to parent undertakings
116,624
197,911
116,624
197,911

Amounts falling due 2-5 years

Amounts due to parent undertakings
-
116,624
-
116,624

314,535
405,637
314,535
405,637


Amounts due to parent undertaking comprise one loan of £314,535 (2022: £405,637).
The long-term loan attracts interest at 5.5% and is payable by equal monthly installments commencing 1 January 2007. The redemption date is January 2027.
The long-term loans are secured against, with a right of set off against, any and all present, future and after acquired funds, monies, balances, stocks, bonds, notes, deposit accounts, and other personal property of any nature whatsoever in which the Company has any interest.

Page 43

 
TINIUS OLSEN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

23.


Finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2023
2022
£
£

Within one year
1,945
10,831

Between 1-5 years
-
1,918

1,945
12,749


24.


Provisions

2023
£



Balance as at 1 January 2023
51,830

Amount debited through Statement of Comprehensive Income
(1,185)

Closing balance
50,645

The balance is included within accruals and deferred income at year end. 
Provisions relates to leave provision for employees. Leave provision is for leave encashment for leave given to the employees and gratuity which is a long term employee benefit given to employees as per gratuity act in India. Gratuity is paid to the employees after they leave the Company if they served the Company for more than 5 years. 

Page 44

 
TINIUS OLSEN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

25.


Deferred taxation


Group



2023
2022


£

£






At beginning of year
159,253
(7,066)


Charged to the Statement of Comprehensive Income
(194,658)
166,319



At end of year
(35,405)
159,253

Company


2023
2022


£

£






At beginning of year
159,253
(7,066)


Charged the Statement of Comprehensive Income
(219,544)
166,319



At end of year
(60,291)
159,253

The deferred taxation balance is made up as follows:

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
(35,405)
(49,560)
(60,291)
(49,560)

Losses and other deductions
-
155,516
-
155,516

Capital gains
-
53,297
-
53,297

(35,405)
159,253
(60,291)
159,253

Accelerated capital allowances are expected to be realised within the next 5 years.

Page 45

 
TINIUS OLSEN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

26.


Called up share capital

2023
2022
£
£
Allotted, called up and fully paid



18,000 (2022: 18,000) ordinary shares of £1.00 each
18,000
18,000


Ordinary shares carry voting rights, but no right to fixed income. 


27.


Reserves

Share premium account

This reserve records the amount above the nominal value received for shares sold, less transaction costs.

Profit and loss account

This reserve represents the cumulative profits and losses of the Group and the Company.

Capital contribution reserve 
This reserve represents the revaluation of freehold property. 


28.


Commitments under operating leases

At 31 December the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£
£

Not later than 1 year
17,028
22,076

Later than 1 year and not later than 5 years
9,885
30,207

26,913
52,283

29.Other commitments

At the year-end, Tinius Olsen India PVT Ltd has given bank guarantees to VAT authority Special Economic Zone against fixed deposit amounts of 1,085KINR (£10.23k).


30.


Related party transactions

At 31 December 2023 the Company was a wholly owned subsidiary of Tinius Olsen Limited, and as such has taken advantage of the exemption permitted by Section 33 ‘Related party disclosures’ not to provide disclosures of transactions entered into with other wholly owned members of the Group.   

Page 46

 
TINIUS OLSEN LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

31.


Post balance sheet events

There have been no significant events affecting the Company and Group since the year end.


32.


Controlling party

At 31 December 2023, the Company's ultimate parent company was Tinius Olsen International Company, a company incorporated in the United States of America, which is the parent of both the smallest and largest groups of which the Company is included in the consolidated accounts. 

Page 47