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Registered number: 05469396










ADVANCED FIBREOPTIC ENGINEERING LIMITED










FINANCIAL STATEMENTS

INFORMATION FOR FILING WITH THE REGISTRAR

FOR THE YEAR ENDED 30 JUNE 2023



 
ADVANCED FIBREOPTIC ENGINEERING LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023

2023
2022
Note
£
£

  

Turnover
  
6,900,049
6,453,821

Cost of sales
  
(3,400,550)
(3,358,260)

Gross profit
  
3,499,499
3,095,561

Administrative expenses
  
(2,953,326)
(2,596,301)

Government grants
  
471,924
433,481

Operating profit
  
1,018,097
932,741

Interest payable and similar expenses
  
(10,295)
(10,178)

Profit before tax
  
1,007,802
922,563

Tax on profit
  
(182,369)
(87,941)

Profit for the financial year
  
825,433
834,622

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 3 to 11 form part of these financial statements.

Page 1

 
ADVANCED FIBREOPTIC ENGINEERING LIMITED
REGISTERED NUMBER: 05469396

BALANCE SHEET
AS AT 30 JUNE 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 4 
1,806,898
1,127,182

Tangible assets
 5 
494,030
466,607

  
2,300,928
1,593,789

Current assets
  

Stocks
 6 
1,026,099
1,065,254

Debtors
 7 
1,453,767
1,711,401

Cash at bank and in hand
 8 
359,792
444,572

  
2,839,658
3,221,227

Creditors: amounts falling due within one year
 9 
(618,962)
(900,462)

Net current assets
  
 
 
2,220,696
 
 
2,320,765

Total assets less current liabilities
  
4,521,624
3,914,554

Provisions for liabilities
  

Deferred tax
 10 
(495,265)
(338,628)

Other provisions
 12 
(257,339)
(257,339)

  
 
 
(752,604)
 
 
(595,967)

Net assets
  
3,769,020
3,318,587


Capital and reserves
  

Called up share capital 
  
100,000
100,000

Profit and loss account
  
3,669,020
3,218,587

  
3,769,020
3,318,587


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 financial statements were approved and authorised for issue by the board and were signed on its behalf on 31 January 2024.



N Martin
Director

The notes on pages 3 to 11 form part of these financial statements.

Page 2

 
ADVANCED FIBREOPTIC ENGINEERING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

1.


General information

Advanced Fibreoptic Engineering Limited is a company limited by shares and incorporated in England and Wales. The registered office is Unit 2 & 3 Glebe Court, West Oxfordshire Business Park, Carterton, OX18 3FX. The principal activity of the Company in the year under review was that of the design, development and manufacture of specialist fibreoptic components and assemblies.

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

Going concern

At the balance sheet date the Company had net assets of £3,769,020 (2022: £3,318,587) which includes net current assets of £2,220,696 (2022: £2,320,765) having made a profit before tax in the year of £1,007,802 (2022: £922,563). The directors believe it is appropriate to prepare the financial statements on a going concern basis.

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is pounds sterling rounded to the nearest pound.

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.

Page 3

 
ADVANCED FIBREOPTIC ENGINEERING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

 
2.4

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.

 
2.5

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.

 
2.6

Government grants

Grants are accounted for under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

 
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.

Page 4

 
ADVANCED FIBREOPTIC ENGINEERING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. 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

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.

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.

 
2.10

Development costs

Development costs are capitalised within intangible assets when they can be identified with a specific product or project anticipated to produce future benefits, and are amortised on a straight-line basis over the anticipated life of the benefits arising from the completed product or project which varies from 3-10 years.

  
2.11

Stocks and work in progress

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow-moving stocks. Cost is based on costs of materials.

Page 5

 
ADVANCED FIBREOPTIC ENGINEERING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

 
2.12

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.

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

Depreciation is provided on the following basis:

Plant & machinery
-
15% reducing balance
Motor vehicles
-
33% straight line
Fixtures & fittings
-
15% reducing balance / 33% straight line
Other Fixed Assets
-
33% straight line

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.

 
2.13

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.

 
2.14

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.

 
2.15

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.

 
2.16

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company 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 Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet 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 Balance Sheet.

Page 6

 
ADVANCED FIBREOPTIC ENGINEERING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

 
2.17

Financial instruments

The Company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
The Company also enters into forward foreign exchange contracts which are not basic financial instruments. These are initially recognised at fair value on the date a forward contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value are recognised in profit or loss in finance costs or income as appropriate. The Company does not currently apply hedge accounting for foreign exchange derivatives.

 
2.18

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Employees

The average monthly number of employees, including directors, during the year was 57 (2022 - 55).


4.


Intangible assets




Development

£



Cost


At 1 July 2022
1,397,993


Additions - internal
784,305



At 30 June 2023

2,182,298



Amortisation


At 1 July 2022
270,811


Charge for the year
104,589



At 30 June 2023

375,400



Net book value



At 30 June 2023
1,806,898



At 30 June 2022
1,127,182



Page 7

 
ADVANCED FIBREOPTIC ENGINEERING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

5.


Tangible fixed assets





Plant & machinery
Motor vehicles
Fixtures & fittings
Other fixed assets
Total

£
£
£
£
£



Cost or valuation


At 1 July 2022
722,011
29,435
758,778
79,851
1,590,075


Additions
110,360
-
18,783
-
129,143


Disposals
(1,047)
-
-
-
(1,047)



At 30 June 2023

831,324
29,435
777,561
79,851
1,718,171



Depreciation


At 1 July 2022
563,516
787
479,314
79,851
1,123,468


Charge for the year
36,693
4,305
60,722
-
101,720


Disposals
(1,047)
-
-
-
(1,047)



At 30 June 2023

599,162
5,092
540,036
79,851
1,224,141



Net book value



At 30 June 2023
232,162
24,343
237,525
-
494,030



At 30 June 2022
158,495
28,648
279,464
-
466,607

Page 8

 
ADVANCED FIBREOPTIC ENGINEERING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

6.


Stocks

2023
2022
£
£

Raw materials and consumables
893,351
859,563

Work in progress (goods to be sold)
132,748
118,358

Finished goods and goods for resale
-
87,333

1,026,099
1,065,254


The carrying value of stocks is stated net of impairment losses totalling £526,368 (2022 - £204,733). Impairment losses totalling £36,942 (2022 - £85,662) were recognised in profit and loss.


7.


Debtors

2023
2022
£
£



Trade debtors
1,110,072
1,366,304

Other debtors
211,070
250,668

Prepayments and accrued income
132,625
94,429

1,453,767
1,711,401



8.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
359,792
444,572



9.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
363,897
433,552

Other taxation and social security
58,951
56,068

Other creditors
4,229
2,881

Accruals and deferred income
191,885
407,961

618,962
900,462


Page 9

 
ADVANCED FIBREOPTIC ENGINEERING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

10.


Deferred taxation




2023


£






At beginning of year
(338,628)


Charged to profit or loss
(156,637)



At end of year
(495,265)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(338,628)
(344,530)

Short term timing differences
(156,637)
5,902

(495,265)
(338,628)


11.


Financial instruments

As at 30 June 2022, the Company was committed to the sale of foreign currency amounting to £392,833 (2022: £732,731).


12.


Provisions




Provisions

£





At 1 July 2022
257,339



At 30 June 2023
257,339

The provision relates to an estimate of the costs for restoration, repair and redecoration of the Company's leased premises at the termination of the leases in accordance with the terms of the lease agreements. 


13.


Pension commitments

The Company operates a defined contribution scheme at a cost during the year to the Company of £109,885 (2022: £85,145) with an amount outstanding at the year end £228 (2022: £237).

Page 10

 
ADVANCED FIBREOPTIC ENGINEERING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

14.


Related party transactions

During the year, the Company paid dividend of £375,000 (2022: £325,000) to its parent company, Adfen Investments Limited. 
During the year, the Company made sales of £Nil (2022: £2,267) to a director of which £nil (2022: £nil) was due at the year end. 


15.


Controlling party

The ultimate parent undertaking is Adfen Investments Limited.  The registered office is Units 2 & 3 Glebe Court, West Oxfordshire Business Park, Carterton, OX18 3FX. The Directors consider there is no one ultimate controlling party.


16.


Auditor's information

The auditor's report on the financial statements for the year ended 30 June 2023 was unqualified.

The audit report was signed on 31 January 2024 by Sue Staunton MA FCA CF (Senior Statutory Auditor) on behalf of James Cowper Kreston Audit.

Page 11