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REGISTERED NUMBER: 14360682 (England and Wales)















GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD 16 SEPTEMBER 2022 TO 31 DECEMBER 2023

FOR

NARROW AISLE GROUP TOPCO LIMITED

NARROW AISLE GROUP TOPCO LIMITED (REGISTERED NUMBER: 14360682)






CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD 16 SEPTEMBER 2022 TO 31 DECEMBER 2023




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Consolidated Income Statement 10

Consolidated Other Comprehensive Income 11

Consolidated Balance Sheet 12

Company Balance Sheet 13

Consolidated Statement of Changes in Equity 14

Company Statement of Changes in Equity 15

Consolidated Cash Flow Statement 16

Notes to the Consolidated Cash Flow Statement 17

Notes to the Consolidated Financial Statements 18


NARROW AISLE GROUP TOPCO LIMITED

COMPANY INFORMATION
FOR THE PERIOD 16 SEPTEMBER 2022 TO 31 DECEMBER 2023







DIRECTORS: D J Houston
J B Maguire
J S Porter
P Wooldridge
C C Randle





SECRETARY: Higgs Secretarial Limited





REGISTERED OFFICE: 3 Waterfront Business Park
Dudley Road
Brierley Hill
West Midlands
DY5 1LX





REGISTERED NUMBER: 14360682 (England and Wales)





AUDITORS: Crombies Accountants Limited
Chartered Accountants and Statutory Auditor
34 Waterloo Road
Wolverhampton
West Midlands
WV1 4DG

NARROW AISLE GROUP TOPCO LIMITED (REGISTERED NUMBER: 14360682)

GROUP STRATEGIC REPORT
FOR THE PERIOD 16 SEPTEMBER 2022 TO 31 DECEMBER 2023

The directors present their strategic report of the company and the group for the period 16 September 2022 to 31 December 2023.

REVIEW OF BUSINESS
The principal activities of the group in the year under review were the design, development, manufacture, sale and service of forklift trucks. It also operates a hire fleet through the subsidiary company, Flexi Forklift Rental
Limited, which is maintained by the group.

PRINCIPAL RISKS AND UNCERTAINTIES
The group continues to sell into some foreign markets priced in US dollars providing a partial natural hedge against purchases in US dollars. The group manages the financial risks by monitoring exchange rates, conducting transactions in the most appropriate currency, executing forward foreign exchange contracts and by maintaining close relationships with customers.

The group has some key suppliers which it uses regularly. Relationships with them have been built up over many years based on quality of product, technical back up and competencies, service provision and pricing. In the event of failure of supply from any one component supplier, it would be disruptive but would not be a significant threat with other suppliers available to meet the group's needs.

Established supply chains have worked well through recent global difficulties, and we expect them to remain robust for the foreseeable future.

The group is exposed to significant levels of trade credit. It manages all trade debtors by imposing customer specific terms including secured payment, payment by direct debit and by monitoring independent credit scores of each customer. Maintaining close contact with customers ensures that contract payment terms are met.

The market-related and macro-economic risks continue to create uncertainty regarding the business performance of the group and its operating segments.

RESULTS AND PERFORMANCE
The results for the year are shown in the annexed financial statements.

Pleasingly the group turnover in the year has increased by 6% from the previous year. The directors will continue their close attention to enhancing margin improvement.

KEY PERFORMANCE INDICATORS
The key performance indicators used to assess the group's performance are the level of turnover being achieved in each business segment together with their associated gross profit percentages.


NARROW AISLE GROUP TOPCO LIMITED (REGISTERED NUMBER: 14360682)

GROUP STRATEGIC REPORT
FOR THE PERIOD 16 SEPTEMBER 2022 TO 31 DECEMBER 2023

FUTURE DEVELOPMENTS
All Flexi trucks produced by group companies are reliable proven products and the group continues to ensure that reliability is maintained through all aspects of manufacture.

The group will continue to enhance its range of products by ensuring that it uses the highest quality components in expanding its product range to enable it to meet the ever-increasing requirements of the modern logistics environment.

In addition, the group continues to invest significantly in Research & Development with the current focus on full digital controls along with the use of cutting edge Lithion Ion battery technology, thus allowing customers greater and more efficient use of their Flexi trucks in order to increase their own productivity. The new developments are also aimed at reducing energy consumption and other improved environmental considerations.

Quality of staff is an important factor both in terms of manufacturing a reliable product and service provision to existing customers and to enable the company to grow. It is the group's policy to ensure that it employs sufficient staff, adequately trained and of the right calibre to meet these requirements.

The group therefore has a strong basis for believing it will at least retain its market position, both domestically and abroad, maintain profitability at satisfactory levels and continue to generate cash through the forthcoming year.

ON BEHALF OF THE BOARD:





D J Houston - Director


27 March 2024

NARROW AISLE GROUP TOPCO LIMITED (REGISTERED NUMBER: 14360682)

REPORT OF THE DIRECTORS
FOR THE PERIOD 16 SEPTEMBER 2022 TO 31 DECEMBER 2023

The directors present their report with the financial statements of the company and the group for the period 16 September 2022 to 31 December 2023.

INCORPORATION
The group was incorporated on 16 September 2022 .

DIVIDENDS
No dividends will be distributed for the period ended 31 December 2023.

DIRECTORS
The directors who have held office during the period from 16 September 2022 to the date of this report are as follows:

D J Houston - appointed 13 October 2022
J B Maguire - appointed 13 October 2022
J S Porter - appointed 16 September 2022
P Wooldridge - appointed 13 October 2022
C C Randle - appointed 13 October 2022

All the directors who are eligible offer themselves for election at the forthcoming first Annual General Meeting.

DISCLOSURE IN THE STRATEGIC REPORT
Disclosures in respect of future developments, risks and uncertainties, key performance indicators and results and performance are shown in the Strategic Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies 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 company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

NARROW AISLE GROUP TOPCO LIMITED (REGISTERED NUMBER: 14360682)

REPORT OF THE DIRECTORS
FOR THE PERIOD 16 SEPTEMBER 2022 TO 31 DECEMBER 2023


AUDITORS
The auditors, Crombies Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





D J Houston - Director


27 March 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
NARROW AISLE GROUP TOPCO LIMITED

Opinion
We have audited the financial statements of Narrow Aisle Group Topco Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 affairs as at 31 December 2023 and of the group's profit for the period 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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 directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
NARROW AISLE GROUP TOPCO LIMITED


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 Report of the Directors.

We have nothing to report in respect of the following matters where 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 directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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 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 directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
NARROW AISLE GROUP TOPCO LIMITED


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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

-the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

-we identified the laws and regulations applicable to the company through discussions with directors and other management

-we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental (including Waste Electrical and Electronic Equipment recycling (WEEE) Regulations 2013) and health and safety legislation;

-we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

-identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

-making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

-considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

-performed analytical procedures to identify any unusual or unexpected relationships;

-tested journal entries to identify unusual transactions;

-assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and

-investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

-agreeing financial statement disclosures to underlying supporting documentation;

-reading the minutes of meetings of those charged with governance;

-enquiring of management as to actual and potential litigation and claims; and


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
NARROW AISLE GROUP TOPCO LIMITED

-reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion

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 Report of the Auditors.

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 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.




Ian Cattell FCA (Senior Statutory Auditor)
for and on behalf of Crombies Accountants Limited
Chartered Accountants and Statutory Auditor
34 Waterloo Road
Wolverhampton
West Midlands
WV1 4DG

27 March 2024

NARROW AISLE GROUP TOPCO LIMITED (REGISTERED NUMBER: 14360682)

CONSOLIDATED
INCOME STATEMENT
FOR THE PERIOD 16 SEPTEMBER 2022 TO 31 DECEMBER 2023

Notes £    £   

TURNOVER 3 33,544,086

Cost of sales 24,890,793
GROSS PROFIT 8,653,293

Distribution costs 713,691
Administrative expenses 5,330,730
6,044,421
OPERATING PROFIT 5 2,608,872

Interest receivable and similar income 895
2,609,767

Interest payable and similar expenses 6 760,347
PROFIT BEFORE TAXATION 1,849,420

Tax on profit 7 295,919
PROFIT FOR THE FINANCIAL PERIOD 1,553,501
Profit attributable to:
Owners of the parent 1,553,501

NARROW AISLE GROUP TOPCO LIMITED (REGISTERED NUMBER: 14360682)

CONSOLIDATED
OTHER COMPREHENSIVE INCOME
FOR THE PERIOD 16 SEPTEMBER 2022 TO 31 DECEMBER 2023

Notes £   

PROFIT FOR THE PERIOD 1,553,501


OTHER COMPREHENSIVE INCOME -
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD

1,553,501

Total comprehensive income attributable to:
Owners of the parent 1,553,501

NARROW AISLE GROUP TOPCO LIMITED (REGISTERED NUMBER: 14360682)

CONSOLIDATED BALANCE SHEET
31 DECEMBER 2023

Notes £    £   
FIXED ASSETS
Intangible assets 9 5,050,457
Tangible assets 10 2,562,878
Investments 11 -
7,613,335

CURRENT ASSETS
Stocks 12 6,518,707
Debtors 13 4,999,519
Cash at bank 91,527
11,609,753
CREDITORS
Amounts falling due within one year 14 7,352,839
NET CURRENT ASSETS 4,256,914
TOTAL ASSETS LESS CURRENT
LIABILITIES

11,870,249

CREDITORS
Amounts falling due after more than one year 15 (6,328,960 )

PROVISIONS FOR LIABILITIES 19 (604,809 )
NET ASSETS 4,936,480

CAPITAL AND RESERVES
Called up share capital 20 6,500
Retained earnings 21 4,929,980
SHAREHOLDERS' FUNDS 4,936,480

The financial statements were approved by the Board of Directors and authorised for issue on 27 March 2024 and were signed on its behalf by:





D J Houston - Director


NARROW AISLE GROUP TOPCO LIMITED (REGISTERED NUMBER: 14360682)

COMPANY BALANCE SHEET
31 DECEMBER 2023

Notes £    £   
FIXED ASSETS
Intangible assets 9 -
Tangible assets 10 -
Investments 11 6,325,507
6,325,507

CURRENT ASSETS
Cash at bank 97

CREDITORS
Amounts falling due within one year 14 3,047,597
NET CURRENT LIABILITIES (3,047,500 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,278,007

CAPITAL AND RESERVES
Called up share capital 20 6,500
Merger relief reserve 21 3,271,507
SHAREHOLDERS' FUNDS 3,278,007

Company's profit for the financial year -

The financial statements were approved by the Board of Directors and authorised for issue on 27 March 2024 and were signed on its behalf by:





D J Houston - Director


NARROW AISLE GROUP TOPCO LIMITED (REGISTERED NUMBER: 14360682)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD 16 SEPTEMBER 2022 TO 31 DECEMBER 2023

Called up
share Retained Total
capital earnings equity
£    £    £   

Changes in equity
Issue of share capital 6,500 - 6,500
Total comprehensive income - 1,553,501 1,553,501
Balance at 31 December 2023 6,500 1,553,501 1,560,001

NARROW AISLE GROUP TOPCO LIMITED (REGISTERED NUMBER: 14360682)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD 16 SEPTEMBER 2022 TO 31 DECEMBER 2023

Called up Merger
share Retained relief Total
capital earnings reserve equity
£    £    £    £   

Changes in equity
Issue of share capital 6,500 - - 6,500
Total comprehensive income - - 3,271,507 3,271,507
Balance at 31 December 2023 6,500 - 3,271,507 3,278,007

NARROW AISLE GROUP TOPCO LIMITED (REGISTERED NUMBER: 14360682)

CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIOD 16 SEPTEMBER 2022 TO 31 DECEMBER 2023

Notes £   
Cash flows from operating activities
Cash generated from operations 1 (3,656,483 )
Interest paid (760,347 )
Tax paid 68,776
Net cash from operating activities (4,348,054 )

Cash flows from investing activities
Purchase of intangible fixed assets (4,410,184 )
Purchase of tangible fixed assets (949,404 )
Sale of tangible fixed assets 807,855
Interest received 895
Net cash from investing activities (4,550,838 )

Cash flows from financing activities
New loans in year 6,328,960
Loan repayments in year 464,763
Share issue 6,500
Net cash from financing activities 6,800,223

Decrease in cash and cash equivalents (2,098,669 )
Cash and cash equivalents at beginning of
period

2

-

Cash and cash equivalents at end of period 2 (2,098,669 )

NARROW AISLE GROUP TOPCO LIMITED (REGISTERED NUMBER: 14360682)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIOD 16 SEPTEMBER 2022 TO 31 DECEMBER 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
£   
Profit before taxation 1,849,420
Depreciation charges 518,970
Profit on disposal of fixed assets (228,930 )
Finance costs 760,347
Finance income (895 )
2,898,912
Increase in stocks (6,518,707 )
Increase in trade and other debtors (4,999,519 )
Increase in trade and other creditors 4,962,831
Cash generated from operations (3,656,483 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Period ended 31 December 2023
31.12.23 16.9.22
£    £   
Cash and cash equivalents 91,527 -
Bank overdrafts (2,190,196 ) -
(2,098,669 ) -


3. ANALYSIS OF CHANGES IN NET DEBT

At 16.9.22 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank - 91,527 91,527
Bank overdrafts - (2,190,196 ) (2,190,196 )
- (2,098,669 ) (2,098,669 )
Debt
Debts falling due after 1 year - (6,328,960 ) (6,328,960 )
- (6,328,960 ) (6,328,960 )
Total - (8,427,629 ) (8,427,629 )

NARROW AISLE GROUP TOPCO LIMITED (REGISTERED NUMBER: 14360682)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD 16 SEPTEMBER 2022 TO 31 DECEMBER 2023

1. STATUTORY INFORMATION

Narrow Aisle Group Topco Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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

Basis of consolidation
The consolidated financial statements present the results of the ultimate holding company and its subsidiaries;

Narrow Aisle Limited
Flexi Forklift Rental Limited
Narrow Aisle Holdings Limited

as if they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The registered office of each of the subsidiaries is situated at 3 Waterfront Business Park, Dudley Road, Brierley Hill, West Midlands DY5 1LX.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

NARROW AISLE GROUP TOPCO LIMITED (REGISTERED NUMBER: 14360682)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 16 SEPTEMBER 2022 TO 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Significant judgements and estimates
In preparing these financial statements, the directors have had to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenditure.

The estimates and associated assumptions are based on historic experiences and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The judgements, estimates and assumptions which have significant risk of material adjustments to carrying amount of assets and liabilities are:

-Tangible fixed assets

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors, In re-assessing asset lives, factors such as technical innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

-Stock provisions

The company has recognised provisions for the impairment of stock. The judgements, estimates and associated assumptions necessary to calculate these provisions are based on historical experience and other reasonable factors. In the case of the provisions for the impairment of stock, this covers obsolescence through technological or customer specific reasons. This provision is based on the assessment of stock value and ageing, quantities on hand, usage, changes in the market, technical developments and warranty periods. The value of stock included in the financial statements is net of the provision for the impairment of stock.

-Bad debt provision

The company has recognised provisions against specific trade debtor balances. The judgements and estimates necessary to calculate these provisions are based on historical experience and other reasonable factors. This provision is based on the age of debt balances and the assessed recoverability. The value of trade debtors in note 11 is stated net of the provision of bad debts.

Changes in accounting policies
During the year the directors carried out an impairment review of the fixed assets held by the subsidiary, Flexi Forklift Rental Limited and concluded that forklift trucks bought back from customers should not be depreciated as they have a value higher than their acquisition costs. Furthermore any refurbishment expenditure on these trucks should be capitalised and these policies should be applied retrospectively. This has resulted in a reduction of £668,938 in the depreciation charge for the year in both Flexi Forklift Rental limited and the group.

NARROW AISLE GROUP TOPCO LIMITED (REGISTERED NUMBER: 14360682)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 16 SEPTEMBER 2022 TO 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and it can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Turnover is recognised from the sale of goods when the entity has transferred to the buyer the significant risks and rewards of ownership of the goods. This usually occurs when the buyer takes possession of the goods.

Income from operating leases and contract rental
Assets held for short term operating leases are included in current assets at net realisable value. Assets held for long term operating leases are included in fixed assets

Income from operating leases and and contract rentals is included in turnover and is recognised in the Profit and Loss account on a straight line basis over the period of the agreement.

Goodwill on consolidation
On 16 September 2022 the company acquired the whole of the share capital of Narrow Aisle Holdings Limited and its subsidiaries. Goodwill arising on consolidation of the accounts of Narrow Aisle Holdings Limited and its subsidiaries is being written off over its useful life of 20 years.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of twenty years.

Intangible assets
The group has acquired a license to distribute its products throughout the USA. This is being amortised over its expected useful life of 20 years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 33.3% on cost, 11.1% on cost and 15% - 20% on cost
Fixtures and fittings - 15% - 20% on cost

Improvements to property are depreciated at 20% on cost or over the remaining period of the lease, whichever is the lower.

Tangible assets 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.

The group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the statement of income and retained earnings during the period in which they are incurred.

NARROW AISLE GROUP TOPCO LIMITED (REGISTERED NUMBER: 14360682)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 16 SEPTEMBER 2022 TO 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its net realisable value. The impairment loss is recognised immediately in the financial statements.

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the period comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Foreign currencies
Foreign currency transactions are translated into sterling using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the retranslation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. The assets of the scheme are held separately from those of the company in an independently administered fund.

NARROW AISLE GROUP TOPCO LIMITED (REGISTERED NUMBER: 14360682)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 16 SEPTEMBER 2022 TO 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
Financial assets

Financial assets comprise cash at bank and in hand, trade debtors, amounts owed by group undertakings and other debtors. These are initially recorded at cost on the date they originate and are subsequently recorded at cost less provisions for impairment. The company considers evidence of impairment for all individual trade and other debtors and amounts owed by group undertakings, and any subsequent impairment is recognised in the statement of income and retained earnings.

Impairment of financial assets

Impairment provisions are recognised when there is objective evidence that a financial asset or group of financial assets is impaired. Objective evidence includes significant financial difficulties of the counterparty, default or significant delays in payment.

Impairment provisions represent the difference between the net carrying amount of a financial asset and the value of the expected future cash receipts from that asset.

Financial liabilities

Financial liabilities comprise trade creditors, other creditors and accruals; these are initially recorded, and subsequently carried, at cost on the date they originate.

Financial liabilities also comprise obligations under finance lease and hire purchase contracts; these are initially recorded at cost on the date they originate and are subsequently carried at amortised cost under the effective interest method.

Provisions
Provisions are made where an event has taken place that gives rise to a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of obligation.

Provisions are charged as an expense to the statement of income and retained earnings in the year that the company becomes aware of the obligation, and are measured at the best estimate at the statement of financial position date of the expenditure required to settle obligation, taking into account relevant risks and uncertainties.

Going concern
In preparing the financial statements, the directors are responsible for assessing the group'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 group or to cease operations, or have no realistic alternative but to do so.

The directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

NARROW AISLE GROUP TOPCO LIMITED (REGISTERED NUMBER: 14360682)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 16 SEPTEMBER 2022 TO 31 DECEMBER 2023

3. TURNOVER

The turnover and profit before taxation are attributable to the principal activities of the group.

An analysis of turnover by class of business is given below:

£   
Sale of Equipment 28,281,298
Maintenance and Service Income 1,649,091
Sales of Parts 1,575,860
Hire Income 2,037,837
33,544,086

An analysis of turnover by geographical market is given below:

£   
United Kingdom 21,004,712
Europe 1,369,373
United States of America 7,656,660
Rest of World 3,513,341
33,544,086

4. EMPLOYEES AND DIRECTORS
£   
Wages and salaries 3,944,861
Social security costs 473,663
Other pension costs 65,835
4,484,359

The average number of employees during the period was as follows:

Office and management 24
Production and sales 56
80

£   
Directors' remuneration 775,280
Directors' pension contributions to money purchase schemes 4,851

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 4

NARROW AISLE GROUP TOPCO LIMITED (REGISTERED NUMBER: 14360682)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 16 SEPTEMBER 2022 TO 31 DECEMBER 2023

4. EMPLOYEES AND DIRECTORS - continued

Information regarding the highest paid director is as follows:
£   
Emoluments etc 255,138
Pension contributions to money purchase schemes 1,321

5. OPERATING PROFIT

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

£   
Depreciation - owned assets 210,752
Profit on disposal of fixed assets (228,930 )
Goodwill amortisation 255,523
Patents and licences amortisation 52,694
Auditors' remuneration 15,600
Foreign exchange differences (10,523 )

6. INTEREST PAYABLE AND SIMILAR EXPENSES
£   
Bank interest 118,213
Bank loan interest 300,007
Loan 342,127
760,347

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the period was as follows:
£   
Current tax:
UK corporation tax 131,036

Deferred tax 164,883
Tax on profit 295,919

NARROW AISLE GROUP TOPCO LIMITED (REGISTERED NUMBER: 14360682)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 16 SEPTEMBER 2022 TO 31 DECEMBER 2023

7. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The difference is explained below:

£   
Profit before tax 1,849,420
Profit multiplied by the standard rate of corporation tax in the UK of 25 % 462,355

Effects of:
Expenses not deductible for tax purposes 5,565
Capital allowances in excess of depreciation (18,537 )
Tax recovered in respect of previous periods (68,776 )
Change in rate of tax (26,470 )
Deferred tax movement 164,883
Utilisation of R & D claim (223,101 )
Total tax charge 295,919

Corporation tax is not provided to the extent that any profits are to be relieved by R & D claims in respect of the current and earlier periods and those R & D claims can be assessed with reasonable assurance at the date the accounts were approved.

8. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


NARROW AISLE GROUP TOPCO LIMITED (REGISTERED NUMBER: 14360682)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 16 SEPTEMBER 2022 TO 31 DECEMBER 2023

9. INTANGIBLE FIXED ASSETS

Group
Patents
and
Goodwill licences Totals
£    £    £   
COST
At 16 September 2022 - 1,053,877 1,053,877
Additions 4,410,184 - 4,410,184
At 31 December 2023 4,410,184 1,053,877 5,464,061
AMORTISATION
At 16 September 2022 - 105,387 105,387
Amortisation for period 255,523 52,694 308,217
At 31 December 2023 255,523 158,081 413,604
NET BOOK VALUE
At 31 December 2023 4,154,661 895,796 5,050,457
At 15 September 2022 - 948,490 948,490

The carrying value of goodwill relates to the acquisition of Narrow Aisle Holdings Limited in the year. Amortisation is included within administrative expenses.

10. TANGIBLE FIXED ASSETS

Group
Improvements Fixtures
to Plant and and
property machinery fittings Totals
£    £    £    £   
COST
At 16 September 2022 126,435 5,385,683 172,422 5,684,540
Additions 91,995 824,237 33,172 949,404
Disposals - (1,143,639 ) - (1,143,639 )
At 31 December 2023 218,430 5,066,281 205,594 5,490,305
DEPRECIATION
At 16 September 2022 70,468 3,084,365 126,556 3,281,389
Charge for period 31,094 157,722 21,936 210,752
Eliminated on disposal - (564,714 ) - (564,714 )
At 31 December 2023 101,562 2,677,373 148,492 2,927,427
NET BOOK VALUE
At 31 December 2023 116,868 2,388,908 57,102 2,562,878
At 15 September 2022 55,967 2,301,318 45,866 2,403,151

NARROW AISLE GROUP TOPCO LIMITED (REGISTERED NUMBER: 14360682)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 16 SEPTEMBER 2022 TO 31 DECEMBER 2023

11. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
Additions 6,325,507
At 31 December 2023 6,325,507
NET BOOK VALUE
At 31 December 2023 6,325,507


12. STOCKS


Group
£   
Raw materials 1,187,366
Work-in-progress 5,331,341
6,518,707

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR


Group
£   
Trade debtors 4,649,475
Other debtors 56,864
Prepayments 293,180
4,999,519

NARROW AISLE GROUP TOPCO LIMITED (REGISTERED NUMBER: 14360682)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 16 SEPTEMBER 2022 TO 31 DECEMBER 2023

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR


Group Company
£    £   
Bank loans and overdrafts (see note 16) 2,190,196 -
Trade creditors 2,969,658 -
Amounts owed to group undertakings - 2,880,930
Tax 199,812 -
Social security and other taxes 158,164 -
VAT 54,209 -
Other creditors 166,819 166,667
Pensions 494 -
Accrued expenses 1,613,487 -
7,352,839 3,047,597

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR


Group
£   
Bank loans (see note 16) 6,160,710
Other loans (see note 16) 168,250
6,328,960

16. LOANS

An analysis of the maturity of loans is given below:


Group
£   
Amounts falling due within one year or on demand:
Bank overdrafts 2,190,196
Amounts falling due between one and two years:
Bank loans - 1-2 years 940,012
Other loans - 1-2 years 168,250
1,108,262
Amounts falling due between two and five years:
Bank loans - 2-5 years 5,220,698

NARROW AISLE GROUP TOPCO LIMITED (REGISTERED NUMBER: 14360682)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 16 SEPTEMBER 2022 TO 31 DECEMBER 2023

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Non- cancellable operating leases
£   
Within one year 136,473
Between one and five years 116,265
252,738

Rentals applicable to operating leases where substantially all the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis.

18. SECURED DEBTS

The following secured debts are included within creditors:


Group
£   
Bank overdrafts 2,190,196
Bank loans 6,160,710
Other loans 168,250
8,519,156

The bank loans and overdrafts are secured by a fixed and floating charge over the assets of the group, together with a first ranking composite all-asset debenture over the group.

Other loans comprise 10% fixed rate secured loan notes issued to C. Randle, who is a director of the company.

19. PROVISIONS FOR LIABILITIES


Group
£   
Deferred tax 604,809

Group
Deferred
tax
£   
Provided during period 604,809
Balance at 31 December 2023 604,809

NARROW AISLE GROUP TOPCO LIMITED (REGISTERED NUMBER: 14360682)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 16 SEPTEMBER 2022 TO 31 DECEMBER 2023

20. CALLED UP SHARE CAPITAL

During the year the company issued (fully paid) the following Ordinary shares in consideration for the transfer to the company of 6,500 Ordinary shares of £1.00 each in Narrow Aisle Holdings Limited pursuant to a share purchase agreement.

A Ordinary 1,000
B Ordinary 1,500
C Ordinary 1,000
D Ordinary 1,154
E Ordinary 1,846

Total issued 6,500

All ordinary shares have rights to a share of capital on a distribution basis as specified in the Articles.

21. RESERVES

Group
Retained
earnings
£   

At 16 September 2022 3,376,479
Profit for the period 1,553,501
At 31 December 2023 4,929,980

Company
Merger
Retained relief
earnings reserve Totals
£    £    £   

Profit for the period - -
Merger relief reserve - 3,271,507 3,271,507
At 31 December 2023 - 3,271,507 3,271,507


NARROW AISLE GROUP TOPCO LIMITED (REGISTERED NUMBER: 14360682)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 16 SEPTEMBER 2022 TO 31 DECEMBER 2023

22. OTHER FINANCIAL COMMITMENTS

Guarantees and Commitments

Narrow Aisle Group Topco Limited and its subsidiaries are party to a composite account agreement with their bankers which provides unlimited guarantees by and between all parties to the agreement secured by a cross company debenture.

Other Commitments

The group provides a Residual Value Guarantee on certain sales contracts subject to external financing agreements. These guarantees indemnify the finance providers by guaranteeing a residual value for the relevant assets at the termination of the financing agreement. No provision is made in respect of future payments due under these agreements as the guaranteed amounts are calculated to be less than the market value of the underlying assets at termination, and hence no liability is considered to exist at the balance sheet date.

23. RELATED PARTY DISCLOSURES

During the year the group rented premises from a related party under the control of persons with significant influence over the group. The amount paid during the year was £82,170 (2022 £80,625) The balance outstanding from the group at the year end was £Nil (2022 £Nil)

The group also rented property from a retirement benefit scheme established for the benefit of past and current employees. The amount paid during the year was £25,000 (2022 £25,000). There was no balance due at either 31 December 2023 or 31 December 2022.

24. ACQUISITION OF SUBSIDIARIES

On 13 October 2022 Narrow Aisle Group Topco Limited acquired the assets and liabilities of Narrow Aisle Holdings Limited and its subsidiaries at a cost of £6,332,007, which can be broken down as follows:

£

Costs to acquire 6,332,007
Less share of identifiable net assets acquired 4,790,333
_________

Positive Goodwill 1,541,674
_________

The company owns all of the issued ordinary share capital of Narrow Aisle Holdings Limited directly and the other subsidiaries indirectly.

The transaction has been accounted for under the purchase method of accounting with the book values of the assets and liabilities considered to represent the fair value.