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Registered number: 03139128










EAMONT HOLDINGS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

 
EAMONT HOLDINGS LIMITED
 
 
COMPANY INFORMATION


Directors
P I Robinson MBA, FCMA, FRSA 
D B Scott BSc, ACMA (resigned 31 January 2023)




Company secretary
P I Robinson MBA, FCMA, FRSA



Registered number
03139128



Registered office
Unit 8 Farmbrough Close
Stocklake Park Industrial Estate

Aylesbury

Buckinghamshire

HP20 1DQ




Independent auditor
MHA
Chartered Accountants & Statutory Auditors

Foundation Park

Roxborough Way

Maidenhead

SL6 3UD




Bankers
HSBC Bank plc
8 Market Square

Aylesbury

HP20 1TW





 
EAMONT HOLDINGS LIMITED
 

CONTENTS



Page
Group Strategic Report
1 - 3
Director's Report
4 - 5
Independent Auditor's Report
6 - 9
Consolidated Statement of Income and Retained Earnings
10
Consolidated Balance Sheet
11
Company Balance Sheet
12 - 13
Consolidated Statement of Cash Flows
14 - 15
Consolidated Analysis of Net Debt
16
Notes to the Financial Statements
17 - 34


 
EAMONT HOLDINGS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

Introduction
 
The overall scope of the group operations remains unchanged from the previous year. As we have started to emerge from some of the restrictions imposed due to the pandemic, the new working practices that enabled operational continuity together with the adaptability of employees have ensured continued delivery of products and services to all customers throughout the year. During this transitional period the group continued to deliver an acceptable level of profitability for the year.

Business review
 
As the holding company, EHL owns the 2 main businesses in the group: Possum Limited and Nortec Solutions Limited. EHL also has an investment fund in an Open-Ended Investment Company (OEIC) structure and owns 2 of the 3 industrial buildings used by Nortec. 
Possum Limited (PL)
PL is a medical technology business operating in 2 main markets.
Environmental Control Systems (ECS)
Main customer is the NHS. Business model - ECS are systems which enable people with disabilities to control items within their own homes without the help of family or carers. This provides independence, security, privacy, and electronic communication as well as entertainment to the client. PL develops and sells proprietary ECS. PL also operates a network of service engineers operating nationally to support users and their equipment.
PL has a leading position in the NHS ECS market in both products and service provision. Growth potential in this market is modest and is driven by new product developments and innovation in service delivery.
Telecare 
Main customers are Local Authorities. Telecare provides the frail elderly or people with disabilities with a dedicated telephone landline which is connected to an Alarm Response Centre (ARC). The care phone sends an alert to the ARC when activated by the user or by an automatic alarm e.g., smoke alarm. The operator at the ARC provides assistance by phone or arranges a visit from the response team or emergency services as appropriate.
PL supplies a range of telecare products from several companies and is the exclusive UK reseller of the Novo care phone from Legrand.
PL is the number 2 supplier of telecare products in the UK. The Directors anticipate significant growth in care phone sales in the next 2 or 3 years as phone networks transition from analogue to digital. The Directors recognise the need to recruit additional staff members to support the planned growth in activity.
During the year ended March 2023, PL’s sales increased by 12.8% to £6.6m. Towards the end of FY 2023 sales were adversely impacted by difficulties in obtaining products from 3rd party telecare suppliers. Overall, PBT remained steady at £1.2m.
Nortec Solutions Limited (NSL)
NSL is a Contract Electronic Manufacturing business (CEM) based in Warwickshire.  
NSL has several long-standing customers for whom it provides manufacturing services.  The customers operate in a diverse number of markets including automotive, aerospace, medical equipment, mining, marine navigation, and others.  NSL’s main activity is populating printed circuit boards to be incorporated into customers products. In addition, NSL carries out the complete fabrication processes for some of its customers.
NSL has traded for 30 years.  Unlike many of its competitors it has a secure financial position with no borrowings.  This enables NSL to provide improved security and service to customers by securing and fixing component supplies.
 
Page 1

 
EAMONT HOLDINGS LIMITED
 

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


Business review (continued)
Since acquisition by EHL in 2009, NSL turnover has increased three-fold.  The company has invested heavily in new, up to date production machinery including several surface mount technology production lines which augment capacity, as well as improving quality.  Investments in other types of production equipment has also widened the range of services which NSL can provide.
During the year ended March 2023, turnover increased by 21.7% to £5.2m and operating profit increased by 88.2% to £609k.

Principal risks and uncertainties
 
Possum Limited (PL)
Environmental Control Systems (ECS)
Technological changes continue to present PL with both challenges and opportunities.  Mature products using established components face the risk of obsolescence.  PL obviates this by investing in Research & Development to update the designs of established products.  R&D also incorporates emerging technologies into new PL products to improve product functionality and provide inter-operability with other suppliers’ products.
Telecare
In Telecare, the main risks are reliance on products from third party suppliers.  However, PL has been an exclusive reseller for its major supplier for over a decade and continues to increase market share.  In addition, the Directors ensure that written exclusive agreements are in place with third party suppliers.
Exposure to Foreign Currency exchange movements can impact on the costs of third-party products which are sourced from the EU and beyond.  Whilst the Group does not currently enter into any form of forward contracts to fix rates, it does utilise a number of different brokers to ensure the best rates of exchange are obtained.  In addition, the Group has no borrowings and carries high levels of cash and convertible investments on its balance sheet.
Nortec Solutions Limited (NSL)
The CEM market in which NSL operates is low risk relative to many others.  UK manufacturing is benefitting from the onshoring of production away from remote countries potentially affected by interruptions to supply lines.  Since Brexit NSL has gained significant business from EU territories.  Security is ensured by having many customers in different industries and continued investment in plant and machinery.

Page 2

 
EAMONT HOLDINGS LIMITED
 

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

Financial key performance indicators
 
The Directors monitor the financial performance of the business by reference to Key Performance Indicators, including sales growth, margin, and profit before tax and cashflows.
The Directors are satisfied with the financial performance of the business and some KPI’s are set out below:
    
   
 2023  2022  
     £000  £000  
Turnover   £11,610 £9,945  
Operating profit  £1,759 £1,657  
Operating profit %  15.2%  16.6%
Operating cashflow           £1,345          £934

Environmental & Social Responsibility
 
The Company complies with all relevant legislation regarding environmental issues and has a written Equality & Diversity Policy of which all staff are aware of.


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



P I Robinson MBA, FCMA, FRSA
Director

Date: 6 March 2024

Page 3

 
EAMONT HOLDINGS LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2023

The director presents his report and the financial statements for the year ended 31 March 2023.

Director's responsibilities statement

The director is responsible for preparing the Group Strategic Report, the Director's Report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the 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 director must not approve the financial statements unless he is 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 financial statements, the director is 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;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006He is 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.

Results and dividends

The profit for the year, after taxation, amounted to £1,417,632 (2022 - £1,490,018).

During the year the directors recommended dividends of £500,000 (2022: £725,000).

Directors

The directors who served during the year were:

P I Robinson MBA, FCMA, FRSA 
D B Scott BSc, ACMA (resigned 31 January 2023)

Financial risk management policies and objectives

The Group uses various financial instruments including cash, listed investments, trade creditors and trade debtors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Company's operations. The principle credit risk arises from debtors which consist of a number of diverse customers including a significant proportion within the public sector. No single customer represents a significant proportion of debtors. In order to manage credit risk the directors set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the credit controller on a regular basis in conjunction with debt ageing and collection history.

Page 4

 
EAMONT HOLDINGS LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Future developments

The Group is committed to continued development of its business operations and investment activity. Key to this is ensuring that product offerings are kept fresh and up to date and that the production capabilities and capacity are sufficient to meet demands now and in the future. The directors continually review the business strategy to ensure that the Group can meet the challenges that arise and take advantage of opportunities to ensure that the business continues to deliver the level of service and product quality that the customer demands whilst remaining on track to achieve an acceptable level of profitability.

Matters covered in the Group Strategic Report

The business review and the principal risks and uncertainties sections are not shown in the Directors' Report, because they are shown in the Strategic Report instead under s414c(11).

Disclosure of information to auditor

The director at the time when this Director's Report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and

he 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.

Auditor

The auditor, MHA, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. Following a rebranding exercise on 15 May 2023 the trading name of the company’s independent auditor changed from MHA MacIntyre Hudson to MHA.
Under section 487(2) of the Companies Act 2006MHA will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

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





P I Robinson MBA, FCMA, FRSA
Director

Date: 6 March 2024

Page 5

 
EAMONT HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBER OF EAMONT HOLDINGS LIMITED
 

Opinion


We have audited the financial statements of Eamont Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2023, which comprise the Consolidated Statement of Income and Retained Earnings, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 March 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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.


Page 6

 
EAMONT HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBER OF EAMONT HOLDINGS LIMITED (CONTINUED)


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 director is responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion 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 Group Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Director's 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Page 7

 
EAMONT HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBER OF EAMONT HOLDINGS LIMITED (CONTINUED)


Responsibilities of director
 

As explained more fully in the Director's Responsibilities Statement set out on page 4, the director is 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 director determines 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 director is responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the Group or the parent Company or to cease operations, or has 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 Group financial statements.


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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Enquiry of management and those charged with governance around actual and potential litigation and claims;
Performing audit work over the risk of management override of controls, including testing of journal entries
      and other adjustments for appropriateness, evaluating the business rationale of significant transactions
      outside the normal course of business and reviewing accounting estimates for bias:
Reviewing minutes of meetings of those charged with governance;
Testing of key controls over expenditure to ensure the correct authorisation; 
Substantive testing to ensure accuracy for key financial statement areas;
Analytical procedures to highlight any unexpected discrepancies;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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.


Page 8

 
EAMONT HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBER OF EAMONT HOLDINGS LIMITED (CONTINUED)


Use of our report
 

This report is made solely to the Company's member in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's member 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 member for our audit work, for this report, or for the opinions we have formed.





Katharine Arnott BSc FCA (Senior Statutory Auditor)
  
for and on behalf of
MHA
 
Maidenhead, United Kingdom
Date:
  

8 March 2024
Page 9

 
EAMONT HOLDINGS LIMITED
 
 
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
Note
£
£

  

Turnover
 4 
11,610,312
9,944,858

Cost of sales
  
(6,289,031)
(5,148,412)

Gross profit
  
5,321,281
4,796,446

Administrative expenses
  
(3,567,509)
(3,139,347)

Other operating income
 5 
5,500
-

Operating profit
 6 
1,759,272
1,657,099

Interest payable and similar expenses
  
(48)
-

Other finance income
  
(44,044)
208,737

Profit before tax
  
1,715,180
1,865,836

Tax on profit
 9 
(297,548)
(375,818)

Profit after tax
  
1,417,632
1,490,018

  

  

Retained earnings at the beginning of the year
  
7,634,087
6,869,069

Profit for the year attributable to the owners of the parent
  
1,417,632
1,490,018

Dividends declared and paid
  
(500,000)
(725,000)

Retained earnings at the end of the year
  
8,551,719
7,634,087

The notes on pages 17 to 34 form part of these financial statements.

Page 10

 
EAMONT HOLDINGS LIMITED
REGISTERED NUMBER: 03139128

CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 11 
938,266
1,065,813

Investments
 12 
3,425,093
3,269,137

  
4,363,359
4,334,950

Current assets
  

Stocks
 14 
2,108,255
2,367,837

Debtors
 15 
2,722,882
2,312,307

Cash at bank and in hand
  
1,917,200
1,437,118

  
6,748,337
6,117,262

Creditors: amounts falling due within one year
 16 
(2,245,542)
(2,521,327)

Net current assets
  
 
 
4,502,795
 
 
3,595,935

Total assets less current liabilities
  
8,866,154
7,930,885

Provisions for liabilities
  

Deferred taxation
 18 
(314,335)
(296,698)

  
 
 
(314,335)
 
 
(296,698)

Net assets
  
8,551,819
7,634,187


Capital and reserves
  

Called up share capital 
 19 
100
100

Profit and loss account
  
8,551,719
7,634,087

  
8,551,819
7,634,187


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

P I Robinson MBA, FCMA, FRSA
Director

Date: 6 March 2024

The notes on pages 17 to 34 form part of these financial statements.

Page 11

 
EAMONT HOLDINGS LIMITED
REGISTERED NUMBER: 03139128

COMPANY BALANCE SHEET
AS AT 31 MARCH 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 12 
3,711,496
3,555,540

Investment property
 13 
780,000
780,000

  
4,491,496
4,335,540

Current assets
  

Debtors
 15 
1,627
1,548

Cash at bank and in hand
  
41,096
53,448

  
42,723
54,996

Creditors: amounts falling due within one year
 16 
(173,999)
(19,762)

Net current (liabilities)/assets
  
 
 
(131,276)
 
 
35,234

Total assets less current liabilities
  
4,360,220
4,370,774

  

Provisions for liabilities
  

Deferred taxation
 18 
(286,936)
(286,936)

  
 
 
(286,936)
 
 
(286,936)

Net assets
  
4,073,284
4,083,838


Capital and reserves
  

Called up share capital 
 19 
100
100

Profit and loss account brought forward
  
4,083,738
3,299,305

Profit for the year
  
489,446
1,509,433

Dividend declared and paid

  

(500,000)
(725,000)

Profit and loss account carried forward
  
4,073,184
4,083,738

  
4,073,284
4,083,838


Page 12

 
EAMONT HOLDINGS LIMITED
REGISTERED NUMBER: 03139128
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023

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



P I Robinson MBA, FCMA, FRSA
Director

Date: 6 March 2024

The notes on pages 17 to 34 form part of these financial statements.

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 £27,752 (2022: £1,509,433).

Page 13

 
EAMONT HOLDINGS LIMITED
 

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

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
1,417,632
1,490,018

Adjustments for:

Depreciation of tangible assets
300,570
264,842

Loss on disposal of tangible assets
(8,194)
(39,675)

Interest paid
48
-

Taxation charge
297,548
375,818

Decrease/(increase) in stocks
259,582
(634,978)

(Increase) in debtors
(410,575)
(183,615)

(Decrease)/increase in creditors
(321,641)
107,269

Net fair value losses/(gains) recognised in P&L
44,044
(208,737)

Corporation tax (paid)
(234,055)
(237,003)

Net cash generated from operating activities

1,344,959
933,939


Cash flows from investing activities

Purchase of tangible fixed assets
(176,229)
(325,570)

Proceeds on sale of tangible fixed assets
11,400
51,039

Purchase of listed investments
(200,000)
(600,000)

Net cash from investing activities

(364,829)
(874,531)
Page 14

 
EAMONT HOLDINGS LIMITED
 

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


2023
2022

£
£



Cash flows from financing activities

Dividends paid
(500,000)
(725,000)

Interest paid
(48)
-

Net cash used in financing activities
(500,048)
(725,000)

Net increase/(decrease) in cash and cash equivalents
480,082
(665,592)

Cash and cash equivalents at beginning of year
1,437,118
2,102,710

Cash and cash equivalents at the end of year
1,917,200
1,437,118


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,917,200
1,437,118

1,917,200
1,437,118


The notes on pages 17 to 34 form part of these financial statements.

Page 15

 
EAMONT HOLDINGS LIMITED
 

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




At 1 April 2022
Cash flows
At 31 March 2023
£

£

£

Cash at bank and in hand

1,437,118

480,082

1,917,200


1,437,118
480,082
1,917,200

The notes on pages 17 to 34 form part of these financial statements.

Page 16

 
EAMONT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1.


General information

Eamont Holdings Limited is a private company incorporated in England whose registered office is at Unit 8, Farmbrough Close, Stocklake Park Industrial Estate, Aylesbury, Buckinghamshire, HP20 1DQ.
The principal activities of the Group are the provision of environmental control systems and technology enabled care and support products and services for disabled people, the design and manufacture of electronic and electrical equipment, and the provision of software and hardware design services. 

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 Income and Retained Earnings in these financial statements.

The financial statements are presented in Sterling (£).

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 Balance Sheet, 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 Consolidated Statement of Income and Retained Earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102.

Page 17

 
EAMONT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

  
2.3

Turnover

Turnover is the total amount receivable by the Group for goods and services provided, excluding VAT and trade discounts.
Sale of goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
Rendering of services
Service revenues are recognised over the period to which they relate. In respect of contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced.

  
2.4

Employee benefits

Short-term employee benefits and contributions to defined contribution pension plans are recognised as an expense in the period in which they are incurred.

  
2.5

Foreign currency translation

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating profit.

 
2.6

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.7

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. 
Grants of a revenue nature are recognised in the Consolidated Statement of Income and Retained Earnings in the same period as the related expenditure.

Page 18

 
EAMONT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

  
2.8

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all risks and rewards of ownership of the leased asset to the Company. All other leases are classified as operating leases.
The payments made under operating leases are charged to the Statement of Income and Retained Earnings on a straight line basis over the period of the lease, unless the payments are structured to increase in line with expected general inflation, in which case the Company recognises annual payment expense equal to amounts owed to the lessor.
The aggregate benefit of lease incentives are recognised as a reduction to the expense recognised over the lease term on a straight line basis.

 
2.9

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 and the Group operate and generate income.

 
2.10

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.

 Amortisation is provided on the following bases:

Computer software
-
33%
straight line

If there is an indication that there has been a significant change in amortisation rate of an asset, the amortisation is revised prospectively to reflect the new expectation.

 
2.11

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 19

 
EAMONT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)


2.11
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.

The rates applicable are:

Long-term leasehold property
-
2% straight line
Leasehold improvement
-
Over the period of the lease
Plant and machinery
-
10% - 33% straight line
Motor vehicles
-
25% 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.

  
2.12

Investment properties

Investment properties are measured at fair value. Changes in fair value are recognised in the Statement of Income and Retained Earnings. 

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

 
2.14

Stocks

Stocks are stated at the lower of cost, using the first in, first out method, and selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items.

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.

 
2.15

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 20

 
EAMONT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.16

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.

 
2.17

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.

  
2.18

Provisions for liabilities

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.
Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance cost in the Statement of Income and Retained Earnings in the period it arises.
The Group recognises a provision for annual leave accrued by employees as a result of services rendered in the current period, and which employees are entitled to carry forward and use within the next 9 months. The provision is measured at the salary cost payable for the period of absence.

 
2.19

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.

Page 21

 
EAMONT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 
Significant judgements
The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:
Recognition of provisions and contingencies - Judgement is exercised by management to distinguish between provisions and contingencies.
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
Net realisable value of stock - To determine net realisable value, management takes into account the most reliable evidence available at the dates the estimates are made.
Deferred taxation - Where a deferred tax asset has been recognised, judgement is made on the recoverability of that asset. This is based on sensitising management forecasts to estimate the future taxable profits against which the losses will be relieved. Judgements have been made in respect of profitability going forward based upon current and anticipated sales.
Where a deferred tax asset has not been recognised, judgement has been made by the directors of the Company that the asset should not be recognised based on the expectation of the current market. This is then reviewed and approved by the Board of Directors on an annual basis.


4.


Turnover

The turnover and profit before tax are attributable to the principal activities of the Group.

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
11,574,773
9,812,552

Rest of Europe
35,539
132,306

11,610,312
9,944,858


The turnover is derived from both the sale of goods and the provision of services.

Page 22

 
EAMONT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

5.


Other operating income

2023
2022
£
£

Other operating income
5,500
-





6.


Operating profit

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

2023
2022
£
£

Depreciation of owned fixed assets
300,570
264,842

Amortisation
-
-

Profit on disposal of fixed assets
(8,194)
(39,675)

Revaluation of investment
44,044
(208,737)

Research & development charged as an expense
91,564
105,229

Auditors's remuneration
25,500
24,700

Auditor's remuneration - tax compliance services
3,500
3,225

Auditor's remuneration - other services
6,000
5,525

Exchange differences
38,368
(24,157)

Other operating lease rentals
132,891
71,854

Page 23

 
EAMONT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

7.


Employees

Staff costs, including director's remuneration, were as follows:


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


Wages and salaries
2,213,590
2,066,590
-
-

Social security costs
220,830
198,018
-
-

Cost of defined contribution scheme
103,687
121,172
-
-

2,538,107
2,385,780
-
-


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



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Administration
14
14
2
2



Service Operations
26
27
-
-



Production
24
24
-
-



Sales & Marketing
6
6
-
-



Research & Development
1
1
-
-

71
72
2
2


8.


Director's remuneration

2023
2022
£
£

Director's emoluments
125,954
135,928

Group contributions to defined contribution pension schemes
12,623
29,305

138,577
165,233


During the year retirement benefits were accruing to no directors (2022 - NIL) in respect of defined contribution pension schemes.

Page 24

 
EAMONT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

9.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
326,222
258,170


Total current tax
326,222
258,170

Deferred tax


Origination and reversal of timing differences
(28,674)
117,648

Total deferred tax
(28,674)
117,648


Taxation on profit on ordinary activities
297,548
375,818

Factors affecting tax charge for the year

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

2023
2022
£
£


Profit on ordinary activities before tax
1,715,180
1,865,836


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
325,884
354,509

Effects of:


Expenses/(income) not deductible for tax purposes/taxable
(92,981)
(3,166)

Capital allowances for year in excess of depreciation
17,103
(610)

Short term timing difference leading to taxation
63,874
22,881

Adjustment in research and development tax credit leading to an increase/(decrease) in the tax charge
(24,700)
(52,903)

Untaxable fair value adjustments
8,368
55,107

Total tax charge for the year
297,548
375,818





Page 25

 
EAMONT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

10.


Intangible assets

Group





Computer software

£



Cost


At 1 April 2022
3,146



At 31 March 2023

3,146



Amortisation


At 1 April 2022
3,146



At 31 March 2023

3,146



Net book value



At 31 March 2023
-



At 31 March 2022
-



Page 26

 
EAMONT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

11.


Tangible fixed assets

Group






Leasehold improvements
Long leasehold property
Plant and machinery
Motor vehicles
Total

£
£
£
£
£



Cost


At 1 April 2022
59,540
478,305
1,590,670
410,296
2,538,811


Additions
-
-
89,195
87,034
176,229


Disposals
-
-
-
(29,491)
(29,491)



At 31 March 2023

59,540
478,305
1,679,865
467,839
2,685,549



Depreciation


At 1 April 2022
59,540
96,458
1,096,185
220,815
1,472,998


Charge for the year on owned assets
-
9,566
208,708
82,296
300,570


Disposals
-
-
-
(26,285)
(26,285)



At 31 March 2023

59,540
106,024
1,304,893
276,826
1,747,283



Net book value



At 31 March 2023
-
372,281
374,972
191,013
938,266



At 31 March 2022
-
381,847
494,485
189,481
1,065,813

Page 27

 
EAMONT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

12.


Fixed asset investments

Group





Investments in subsidiary companies
Listed investments
Total

£
£
£



Market value


At 1 April 2022
-
3,269,137
3,269,137


Additions
-
200,000
200,000


Revaluations
-
(44,044)
(44,044)



At 31 March 2023
-
3,425,093
3,425,093




Company





Investments in subsidiary companies
Listed investments
Total

£
£
£



Cost or valuation


At 1 April 2022
286,403
3,269,137
3,555,540


Additions
-
200,000
200,000


Revaluations
-
(44,044)
(44,044)



At 31 March 2023
286,403
3,425,093
3,711,496




Page 28

 
EAMONT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Possum Limited
Provision of environment control systems and Technology Enabled Care products and services for disabled
Ordinary
100%
Nortec Solutions Limited
Design and manufacture of electronic and electrical equipment
Ordinary
  100%
Possum Controls Limited
Dormant
Ordinary
  100%
Possability Services Limited
Dormant
Ordinary
100%
Possum Research and Development Limited
Dormant
Ordinary
100%

Possum Controls Limited and Possum Research and Development Limited has been indirectly owned through Possum Limited.
All subsidiaries are incorporated in England and Wales and are included within the consolidated financial statements.


13.


Investment property

Group





Company





Investment property

£



Valuation


At 1 April 2022
780,000



At 31 March 2023
780,000

Page 29

 
EAMONT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

14.


Stocks

Group
Group
2023
2022
£
£

Raw materials and consumables
40,857
41,058

Work in progress (goods to be sold)
1,241,499
1,281,770

Finished goods and goods for resale
825,899
1,045,009

2,108,255
2,367,837



15.


Debtors

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

Due within one year

Trade debtors
2,375,436
1,970,285
-
-

Other debtors
66,728
1,300
-
-

Prepayments and accrued income
280,718
340,722
1,627
1,548

2,722,882
2,312,307
1,627
1,548



16.


Creditors: Amounts falling due within one year

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

Trade creditors
715,434
958,369
-
-

Amounts owed to group undertakings
-
-
148,361
-

Corporation tax
215,891
170,035
(5,738)
8,026

Other taxation and social security
567,211
443,949
-
-

Other creditors
358
358
-
-

Accruals and deferred income
746,648
948,616
31,376
11,736

2,245,542
2,521,327
173,999
19,762


Page 30

 
EAMONT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

17.


Financial instruments

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

Financial assets

Financial assets measured at fair value through profit or loss
5,342,293
4,706,255
3,752,592
3,322,585




Financial assets measured at fair value through profit or loss comprise cash and listed investments.


18.


Deferred taxation


Group



2023
2022


£

£






At beginning of year
(296,698)
(179,050)


Charged to profit or loss
(17,637)
(117,648)



At end of year
(314,335)
(296,698)

Page 31

 
EAMONT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
 
18.Deferred taxation (continued)

Company


2023
2022


£

£






At beginning of year
(286,936)
(192,169)


Charged to profit or loss
-
(94,767)



At end of year
(286,936)
(286,936)

The provision for deferred taxation is made up as follows:

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

Accelerated capital allowances
(95,732)
(67,084)
(11,011)
-

Potential gain on investment property
-
-
(57,322)
(57,322)

Potential gain on listed investments
(218,603)
(229,614)
(218,603)
(229,614)

(314,335)
(296,698)
(286,936)
(286,936)


19.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



100 (2022 - 100) Ordinary shares of £1 each
100
100



20.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group  in an independently administered fund. The pension cost charge represents contributions payable by the Group  to the fund and amounted to £103,687 (2022 - £121,171). Contributions totalling £15,629 (2022 - £17,328) were payable to the fund at the balance sheet date and are included in creditors.

Page 32

 
EAMONT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

21.


Commitments under operating leases

At 31 March 2023 the Group 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
81,773
81,773

Later than 1 year and not later than 5 years
101,487
185,501

183,260
267,274

22.


Related party transactions

The company has taken advantage of the exemption not to disclose transactions with related parties with other wholly owned members of the group under FRS102 section 33 related party disclosures.


2023
2022
£
£

Key management personnel included in operating expenses
243,101
309,867


23.


Ultimate controlling party

The ultimate controlling party is P I Robinson by virtue of his shareholding in the holding company.

Page 33

 
EAMONT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

24.


Financial risk management

The Group has exposure to two main areas of risk - foreign exchange currency exposure and customer credit exposure.
Foreign exchange transactional currency exposure
The Group is exposed to currency exchange risk due to a significant proportion of its payables being denominated in non-Sterling currencies. This risk is managed in a number of ways - wherever possible currency matching is undertaken where receivables in non-Sterling currency are matched against payables in the same currency by the operation of foreign currency bank accounts. Where there is a net exposure the Company monitors the exchange rates with a view to making strategic purchases of currency and also reviews options for forward contracts as appropriate.
Customer credit risk
The Group may offer credit terms to its customers which allow payment of the debt after delivery of the goods or performance of the service. The Company is at risk to the extent that a customer may be unable to pay the debt on the specified date. The risk is mitigated by strong on-going customer relationships and the application of credit limits and credit terms which are reviewed on a regular basis.
Customer/market risk
Credit risk: this is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation.
Market risk: this comprises currency risk, interest rate risk and other price risk.
 - Currency risk: this is the risk that the fair value or future cash flows of a financial asset will      fluctuate because of changes in foreign exchange rates.
 - Interest rate risk: this is the risk that fair value or future cash flows of a financial asset will       fluctuate because of changes in market interest rates.
 - Other price risk: this is the risk that the fair value or future cash flows of a financial asset will      fluctuate because of changes in market prices (other than those arising from interest rate risk or       currency risk), whether those changes are caused by factors specific to the individual financial      instrument or its issuer, or factors affecting all similar financial instruments traded in the market.
The directors have set the investment strategy for the Group after taking advice from a professional investment adviser. Subject to complying with the agreed strategy, which specifies the target proportions of the fund which should be invested in the principal market sectors, the day-to-day management of the asset portfolio of the Group including the full discretion for stock selection, is the responsibility of the investment manager. The directors manage investment risks, including credit risk and market risk, within agreed risk limits which are set taking into account the Group's strategic investment objectives. These investment objectives and risk limits are implemented through the investment management agreements in place with the Group's investment managers and monitored by the directors by regular reviews of the investment portfolio. 

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