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Registered number: 10305232










GASTITE SYSTEMS LIMITED










DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2023

 
GASTITE SYSTEMS LIMITED
 

COMPANY INFORMATION


Directors
A Cooling (resigned 2 September 2023)
J Maggi 
P McCaffrey 
G W Hencher (appointed 2 September 2023)




Registered number
10305232



Registered office
Brooklyn House
44 Brook Street

Loughborugh

Shepshed

LE12 9RG




Independent auditors
James Cowper Kreston Audit
Chartered Accountants and Statutory Auditor

James Cowper Kreston Audit

George Street

Reading

Berkshire

RG1 8LS





 
GASTITE SYSTEMS LIMITED
 

CONTENTS



Page
Directors' Report
1 - 2
Independent Auditors' Report
3 - 5
Statement of Comprehensive Income
6
Balance Sheet
7
Statement of Changes in Equity
8
Notes to the Financial Statements
9 - 21


 
GASTITE SYSTEMS LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2023

The Directors present their report and the financial statements for the year ended 31 July 2023.

The Directors have not prepared a Strategic report, as permitted by section 414B of Companies Act 2006.

Directors

The Directors who served during the year were:

A Cooling (resigned 2 September 2023)
J Maggi 
P McCaffrey 

Principal activity

The principal activity of the Company is to supply engineered components that heat and move fluids and gases.

Results and dividends

The loss for the year, after taxation, amounted to £426,000 (2022 - profit £230,000).

No dividends have been paid (2022 - £Nil).

Directors' responsibilities statement

The Directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the Directors are required to:


select suitable accounting policies and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Political contributions

The Company made no political donations and incurred no political expenditure during the financial period.

Page 1

 
GASTITE SYSTEMS LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023

Disclosure 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's auditors are 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's auditors are aware of that information.

Post balance sheet events

On 1 August 2023, Gastite Systems transferred all assets and liabilities to Amnitec Limited.

Auditors

The auditorsJames Cowper Kreston Auditwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Small companies note

In preparing this report, the Directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

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





G W Hencher
Director
Date: 20 March 2024

Page 2

 
GASTITE SYSTEMS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GASTITE SYSTEMS LIMITED
 

Opinion


We have audited the financial statements of Gastite Systems Limited (the 'Company') for the year ended 31 July 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity 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 101 ‘Reduced Disclosure Framework’ (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


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


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.


Emphasis of matter - non-going concern basis of preparation


We draw attention to the disclosure made in note 2.1 to the financial statements which explains that the financial statements have not been prepared on the going concern basis for the reason set out in that note. Our opinion is not modified in respoect of this matter.













Page 3

 
GASTITE SYSTEMS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GASTITE SYSTEMS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Directors are 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Directors' Report has been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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; or
the Directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 1, 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 either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 4

 
GASTITE SYSTEMS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GASTITE SYSTEMS LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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.

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 noncompliance.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities,including fraud, were as follows:
 
Enquiry of management and those charged with governance around actual and potential litigation and claims;
Enquiry of management and those charged with governance to identify any material instances of non-compliance with laws and regulations;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work to address the risk of irregularities due to 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 evidence of bias

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 Auditors' Report.

Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our 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 Auditors' 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.





Alan Poole BA (Hons) FCA (Senior Statutory Auditor)
  
for and on behalf of
James Cowper Kreston Audit
 
Chartered Accountants and Statutory Auditor
  
James Cowper Kreston Audit
George Street
Reading
Berkshire
RG1 8LS

20 March 2024
Page 5

 
GASTITE SYSTEMS LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2023

2023
2022
Note
£000
£000

  

Turnover
 4 
2,127
3,643

Cost of sales
  
(1,414)
(2,312)

Gross profit
  
713
1,331

Distribution costs
  
(652)
(816)

Administrative expenses
  
(273)
(134)

Exceptional administrative expenses
 10 
(195)
-

Operating (loss)/profit
 5 
(407)
381

Interest payable and similar expenses
 8 
(19)
(97)

(Loss)/profit before tax
  
(426)
284

Tax on (loss)/profit
 9 
-
(54)

(Loss)/profit for the financial year
  
(426)
230

Other comprehensive income:
  

Items that will not be reclassified to profit or loss:
  

Total comprehensive income for the year
  
(426)
230

The notes on pages 9 to 21 form part of these financial statements.

Page 6

 
GASTITE SYSTEMS LIMITED
REGISTERED NUMBER: 10305232

BALANCE SHEET
AS AT 31 JULY 2023

2023
2022
Note
£000
£000

  

Fixed assets
  

Tangible assets
 11 
32
71

Investments
 12 
314
454

  
346
525

Current assets
  

Stocks
 13 
495
507

Debtors: amounts falling due after more than one year
 14 
-
35

Debtors: amounts falling due within one year
 14 
515
982

Cash at bank and in hand
 15 
50
27

  
1,060
1,551

Creditors: amounts falling due within one year
 16 
(1,145)
(1,395)

Net current (liabilities)/assets
  
 
 
(85)
 
 
156

  

Provisions for liabilities
  

Other provisions
  
(6)
-

  
 
 
(6)
 
 
-

  

Net assets
  
255
681


Capital and reserves
  

Called up share capital 
 18 
400
400

Other reserves
 19 
2
2

Profit and loss account
 19 
(147)
279

  
255
681


The Company's financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

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



G W Hencher
Director
Date: 20 March 2024

The notes on pages 9 to 21 form part of these financial statements.

Page 7

 
GASTITE SYSTEMS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023


Called up share capital
Other reserves
Profit and loss account
Total equity

£000
£000
£000
£000


At 1 August 2021
400
2
49
451



Profit for the year
-
-
230
230



At 1 August 2022
400
2
279
681



Loss for the year
-
-
(426)
(426)


At 31 July 2023
400
2
(147)
255


The notes on pages 9 to 21 form part of these financial statements.

Page 8

 
GASTITE SYSTEMS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

1.


General information

Gastite Systems Limited is a private company limited by shares and incorporated and domiciled in England and Wales. Its registered office is Brooklyn House 44 Brook Street, Shepshed, Loughborough United Kingdom, LE12 9RG.
The principal activity of the Company is to supply engineered components that heat and move fluids and gases.

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 101 'Reduced Disclosure Framework'  and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

These financial statements are presented in pounds sterling because that is the currency of the primary economic envrioment in which the Company operates. 

Breakup (non going concern) basis of preparation
After year end, proactive actions have been taken to liquidate this entity as part of a wider legal entity rationalisation exercise. As a result the Directors have concluded that the use of going concern basis for preparation of the financial statements is not appropriate. The financial statements have been prepared on a breakup basis as at 31 July 2023. As a consequence, the assets have been measured at their expected realisable value. The liabilities are measured and presented at their expected settlement values.

The following principal accounting policies have been applied:

Page 9

 
GASTITE SYSTEMS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.2

Financial Reporting Standard 101 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions under FRS 101:
the requirements of paragraphs 45(b) and 46-52 of IFRS 2 Share-based payment
the requirements of IFRS 7 Financial Instruments: Disclosures
the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers
the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases. The requirements of paragraph 58 of IFRS 16, provided that the disclosure of details in indebtedness relating to amounts payable after 5 years required by company law is presented separately for lease liabilities and other liabilities, and in total
the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:
 - paragraph 73(e) of IAS 16 Property, Plant and Equipment;
the requirements of IAS 7 Statement of Cash Flows
the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member
the requirements of paragraphs 130(f)(ii), 130(f)(iii), 134(d)-134(f) and 135(c)-135(e) of IAS 36 Impairment of Assets.

This information is included in the consolidated financial statements of Smiths Group Plc as at 31 July 2023 and these financial statements may be obtained from 4th Floor, 11-12 St Jame's Square, London, SW1Y 4LB.

 
2.3

Exemption from preparing consolidated financial statements

As the Company is wholly owned subsidiary of Smiths Group plc which prepares publicly available consolidated Group accounts including the Company, the Company has not prepared consolidated accounts as permitted by Section 400 of the Comapnies Act 2006. These financial statements present information about the Company as an individual undertaking and not about its group.

Page 10

 
GASTITE SYSTEMS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 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:

The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money.

Sale of goods

Revenue from the sale of goods is recognised on the satisfaction of performance obligations, such as the transfer of a promised good, identified in the contract between the Company and the customer.

A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

 
2.5

Finance costs

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

 
2.6

Pensions

Defined contribution pension plan

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

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

 
2.7

Taxation

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

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

 
2.8

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

Page 11

 
GASTITE SYSTEMS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.9

Tangible fixed assets

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

At each reporting date the Company 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.

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:

Long-term leasehold property
-
over the life of the lease
Plant and machinery
-
5 - 10 years
Other fixed assets
-
5 - 10 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.

 
2.10

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.11

Stocks

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

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

 
2.12

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.

 
2.13

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.

Page 12

 
GASTITE SYSTEMS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.14

Creditors

Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Creditors are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

  
2.15

Financial instruments

The Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The Company's accounting policies in respect of financial instruments transactions are explained below:
Financial assets and financial liabilities are initially measured at fair value. 
Financial assets
All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets.
Financial assets that are not held under the going concern basis are recognised at fair value, which represents the amounts that would be recoverable on the break-up of the Company. Loans and receivables from other Group companies are disclosed at their full carrying amount as the fair value reflects the amounts expected to be received from an orderly restructuring programme.
Financial liabilities
Fair value through profit or loss
Financial liabilities are classified as at fair value through profit or loss, when the financial liability is held for trading, or is designated as at fair value through profit or loss. This designation may be made if such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise, or the financial liability forms part of a group of financial instruments which is managed and its performance is evaluated on a fair value basis, or the financial liability forms part of a contract containing one or more embedded derivatives, and IFRS 9 permits the entire combined contract to be designated as at fair value through profit or loss. Any gains or losses arising on changes in fair value are recognised in profit or loss to the extent that they are not part of a designated hedging relationship.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Impairment of investments; the company makes an estimate of the recoverable value or investments at each period end. When assessing impairment, management considers factors such as net assets of the underlying investment and the expected future cash flows using an appropriate disount rate.


4.


Turnover

The whole of the turnover of £2,127k (2022: £3,643k) is attributable to day-to-day trading activity.

Page 13

 
GASTITE SYSTEMS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

5.


Operating (loss)/profit

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

2023
2022
£000
£000

Dilapidations expense
10
32

Depreciation of tangible fixed assets
39
62

Exchange differences
18
-

Defined contribution pension cost
25
23


6.


Auditors' remuneration

2023
2022
£000
£000

Fees payable to the Company's auditors for the audit of the Company's financial statements
27
57


7.


Employees

Staff costs were as follows:


2023
2022
£000
£000

Wages and salaries
513
563

Social security costs
48
40

Cost of defined contribution scheme
25
23

586
626


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


        2023
        2022
            No.
            No.







Sales
4
5



Finance
2
2



Marketing
1
1

7
8

The directors consider an amount of £16,000 (2022: £16,000) to be an appropriate estimation for services provided by the Directors to Gastite Systems Ltd.

Page 14

 
GASTITE SYSTEMS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

8.


Interest payable and similar expenses

2023
2022
£000
£000


Loans from group undertakings
18
19

Finance leases and hire purchase contracts
1
3

Other interest payable
-
75

19
97


9.


Taxation


2023
2022
£000
£000

Corporation tax


Current tax on profits for the year
-
54



Tax on (loss)/profit
-
54

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - the same as) the standard rate of corporation tax in the UK of21% (2022 - 19%). The differences are explained below:

2023
2022
£000
£000


(Loss)/profit on ordinary activities before tax
(426)
284


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 21% (2022 - 19%)
(77)
54

Effects of:


Expenses not deductible for tax purposes
30
-

Group relief
47
-

Total tax charge for the year
-
54

Page 15

 
GASTITE SYSTEMS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
 
9.Taxation (continued)


Factors that may affect future tax charges

Smiths Group Plc does not require UK companies to compensate the surrendering company for the receipt of group relief. As a result no payments or receipts in respect of group relief have been accrued in the current or previous year, and no payments or receipts will be made for group relief in future years while this policy remains in force.
The UK tax rate will increase from 19.0% to a marginal rate of up to 25.0% depending on taxable profits from 1 April 2023. This will have a consequential effect on the Company's future tax charge.


10.


Exceptional items

2023
2022
£000
£000


Audit overrun
55
-

Impairment of goodwill
140
-

195
-

Audit overrun
Exceptional items relate to the overruns that Amnitec incurred for the audit of the financial statements for the year ended 31 July 2022.
Impairment of goodwill
As of 31 July 2023, it was determined by management that Gastite Systems Deutschland would cease doing business in Germany due to failure to gain customers as well as the country's decision to move away from natural gas. The investment in subsidiary was reviewed and not impaired at that time, as it was concluded by management that net assets of the subsidiary were sufficient to cover the investment value. Further, due to Titeflex Corporation, a US corporation, covering all trading losses incurred by Gastite Systems Deutschland as required by local regulations, the net assets carrying amount as at 31 July 2023 was concluded as the best estimate of the recoverable amount of the investment. 
On 1 August 2023, Gastite Systems Deutschland entered into voluntary liquidation and marked the beginning of the one-year liquidation period, on conclusion of which a reassessment of the investment recoverability was performed.

Page 16

 
GASTITE SYSTEMS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

11.


Tangible fixed assets





Long-term leasehold property
Plant and machinery
Other fixed assets
Total

£000
£000
£000
£000



Cost or valuation


At 1 August 2022
366
32
27
425



At 31 July 2023

366
32
27
425



Depreciation


At 1 August 2022
295
32
27
354


Charge for the year
39
-
-
39



At 31 July 2023

334
32
27
393



Net book value



At 31 July 2023
32
-
-
32



At 31 July 2022
71
-
-
71




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


2023
2022
£000
£000

Long leasehold
32
71

32
71


Page 17

 
GASTITE SYSTEMS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

12.


Fixed asset investments





Investments in subsidiary companies

£000



Cost or valuation


At 1 August 2022
454



At 31 July 2023

454



Impairment


Charge for the period
140



At 31 July 2023

140



Net book value



At 31 July 2023
314



At 31 July 2022
454

On 22 January 2019, the Company invested 100% in the share capital of Gastite Systems Deutschland GmBH, based in Germany, as part of business expansion strategy. The registered office address Gastite Systems Deutschland GmBH is Gewerbestrabe 15a, 86836 Graben.
As of 31 July 2023, it was determined by management that Gastite Systems Deutschland would cease doing business in Germany due to failure to gain customers as well as the country's decision to move away from natural gas. The investment in subsidiary was reviewed and not impaired at that time, as it was concluded by management that net assets of the subsidiary were sufficient to cover the investment value. Further, due to Titeflex Corporation, a US corporation, covering all trading losses incurred by Gastite Systems Deutschland as required by local regulations, the net assets carrying amount as at 31 July 2023 was concluded as the best estimate of the recoverable amount of the investment. 
On 1 August 2023, Gastite Systems Deutschland entered into voluntary liquidation and marked the beginning of the one-year liquidation period, on conclusion of which a reassessment of the investment recoverability was performed.

Page 18

 
GASTITE SYSTEMS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

13.


Stocks

2023
2022
£000
£000

Raw materials and consumables
76
293

Finished goods and goods for resale
419
214

495
507


Finished goods are stated net of £50k (2022: £66k) inventory provision.



14.


Debtors

2023
2022
£000
£000

Due after more than one year

Prepayments and accrued income
-
35

-
35


2023
2022
£000
£000

Due within one year

Trade debtors
494
954

Amounts owed by group undertakings
1
-

Prepayments and accrued income
20
28

515
982


No provision for expected credit loss has been made in either year on basis it is not material.


15.


Cash and cash equivalents

2023
2022
£000
£000

Cash at bank and in hand
50
27

50
27


Page 19

 
GASTITE SYSTEMS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

16.


Creditors: Amounts falling due within one year

2023
2022
£000
£000

Trade creditors
54
267

Amounts owed to group undertakings
854
882

Corporation tax
54
54

Other taxation and social security
63
19

Lease liabilities
29
68

Accruals and deferred income
91
105

1,145
1,395


Amounts owed to group undertakings includes trading balances of £384,000 paid under normal commercial terms and are non-interest bearing and repayable on demand. 
Amounts owed to group undertakings include a loan balance of £498,000 payable to Smiths Group International Holdings Ltd and bears interest at 12 month GBP LIBOR plus 2%. The repayment is due on 31 July 2025. The loan will be taken over by a group company due to the liquidation and hive up of the Assets and Liabilties and therefore is deemed to be current in nature.


17.


Provisions





Dilapidation reserve

£000





Charged to profit or loss
6



At 31 July 2023
6


18.


Share capital

2023
2022
£000
£000
Allotted, called up and fully paid



400,000 (2022 - 400,000) Ordinary shares of £1 each
400
400

The Company only has one class of share capital and all the shares rank equally.



19.


Reserves

Other reserves

Other reserves comprise the benefit to the Company £2,000 (2022: £2,000) from employee participation in the Smiths Group plc Save as You Earn share scheme.

Page 20

 
GASTITE SYSTEMS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

20.


Finance leases



The present value of minimum lease payments is analysed as follows:

2023
2022
£000
£000


Not later than 1 year
29
68

29
68


21.


Related party transactions

The Company has taken advantage of the exemption available in Section 33.1A of FRS 102 and has not disclosed transactions with the ulitmate parent company or any wholly owned subsidiary undertaking of the group.


22.


Post balance sheet events

On 1 August 2023, Gastite Systems transferred all assets and liabilities to Amnitec Limited.


23.


Controlling party

As at 31 July 2023, Gastite Systems Limited is a wholly owned subsidiary of Flex-Tek Group Limited which is a wholly owned subsidiary of Smiths Group International Holdings Limited.
The ultimate parent undertaking and controlling party is Smiths Group plc, which is the parent undertaking of the smallest and largest group to consolidate these financial statements. Smiths Group plc is incorporated in the United Kingdom and registered in England and Wales.
The annual report and financial statements of Smiths Group plc may be obtained from the Company Secretary, Smiths Group pl, 4th Floor, 11-12 St James's Square, London, England, United Kingdom, SW1Y 4LB
The financial statements contain information about the Company as an individual company and do not contain consolidated financial information as the parent of a group. The Company is exempt under section 400 of the Companies Act 2006 from the requirement to prepare consolidated financial statements as it is included by full consolidation in the consolidated financial statements of its intermediate/ultimate parent, Smiths Group pic, a company registered in England and Wales. Registered address is 4th Floor, 11-12 St James's Square, London, England, United Kingdom, SW1Y 4LB. 

Page 21