REGISTERED NUMBER: 07797243 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 July 2023 |
for |
TecQuipment Holdings Limited |
REGISTERED NUMBER: 07797243 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 July 2023 |
for |
TecQuipment Holdings Limited |
TecQuipment Holdings Limited (Registered number: 07797243) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 July 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Consolidated Income Statement | 11 |
Consolidated Other Comprehensive Income | 12 |
Consolidated Balance Sheet | 13 |
Company Balance Sheet | 14 |
Consolidated Statement of Changes in Equity | 15 |
Company Statement of Changes in Equity | 16 |
Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Cash Flow Statement | 18 |
Notes to the Consolidated Financial Statements | 19 |
TecQuipment Holdings Limited |
Company Information |
for the Year Ended 31 July 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
The Point |
Granite Way |
Mountsorrel |
Loughborough |
Leicestershire |
LE12 7TZ |
TecQuipment Holdings Limited (Registered number: 07797243) |
Group Strategic Report |
for the Year Ended 31 July 2023 |
The directors present their strategic report of the company and the group for the year ended 31 July 2023. |
REVIEW OF BUSINESS |
The Group designs, manufactures, installs and offers support of technical teaching equipment for scientific engineering purposes predominately to universities and higher education establishments on a worldwide basis and operates within the United Kingdom. We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. |
Results and performance |
The results of the Group for the year show a profit on ordinary activities before tax of £0.57 million (2022 - £0.64 million). |
This is before the contribution made to the Employee Ownership Trust of £0.4 million during the year (2022 - £0.4 million) which is reported in the statement of changes in equity. The distributable shareholders' funds of the Group following the payment to the Employee Ownership Trust total of £1.6 million (2022 - £1.5 million). |
The results reflect the Group's strong underlying trading activities and a drive to improve the efficiency and focus of our operations. The Group has made a considerable effort to control its costs in recent years and has continued to invest in its staff and product development and after sales support activities to ensure that the products are as competitively priced as possible. |
We are satisfied with the current years trading results considering the current economic and political climate and the ongoing uncertainty in the marketplace. The results are in line with our expectations as we continue to consolidate our worldwide presence with our strategic partners. |
Business environment |
Despite market conditions continuing to be challenging during the year, the Group has been able to increase turnover, by winning new customers and strengthening relationships with existing key accounts. The volume and value of orders won during the year was encouraging and we continue to have a growing number of opportunities in the pipeline. |
In the current economic climate this strong performance demonstrates that the Group is maintaining its market |
presence and brand recognition for the quality of the product. The Group trades and conducts its operations in the UK, but we also have a significant presence within the rest of the world, which ensures we avoid reliance on any particular territory. |
TecQuipment Holdings Limited (Registered number: 07797243) |
Group Strategic Report |
for the Year Ended 31 July 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The process of risk management is applied through a combination of policies, procedures and internal controls. All policies are subject to Board approval and ongoing review by management. Compliance with regulation, legal and ethical standards is a high priority for the Group to ensure they are able to continue trading. The finance team is |
responsible for ensuring that effective internal controls exist to manage the financial risks and that these controls operate effectively for the benefit of the business. |
The principal risks from our business are as follows: |
Price risk: Whilst the Group transacts with other UK entities, much of turnover is export therefore the main uncertainty is around the threat of fluctuations in foreign exchange rates, the unpredictability of the overseas territories in which we operate and the threat of low-cost competitors emerging in foreign markets offering cheaper alternatives. |
Competitor risk: The Group operates in a highly competitive market with advancements in the use and application of |
technology being fast moving. As such the Group has to ensure we are balancing both customer requirements and market pressures to be able to deliver a suitable product solution to the marketplace. |
Liquidity risk and going concern: The Group regularly monitors its liquidity position to ensure that sufficient funds are |
available to meet both current and future working capital requirements. |
Economic risk: The Group's trading is broadly linked to the performance of the UK economy and therefore, is exposed to recessionary risk when economies come into difficulties. To mitigate such a risk, management regularly review the market to assess the potential impact on the business operations. |
Currency risk: Our current business model and worldwide customer base means that exports represent a significant proportion of our overall trading activity and as such the Group is exposed to fluctuations in foreign currency (this principally being US dollars). The Group currently adopts a strategy to hedge against this risk by holding a proportion of its cash in foreign currency bank accounts as well as transacting in those key currencies noted above. |
Credit risk: The Group assess the credit risk of all customers at the quoting stage of the sales cycle by ensuring that we deal with long-established trading partners in our current geographical territories, agents and university backed entities which we consider the risk of a default arising to be low. |
Research & development: The Group is committed to continuing to invest in the new development of its product range to meet the demands of customers. The inherent risk factor here is that market and technological developments could render our existing products obsolete. To mitigate this we focus our energy on ensuring the ongoing R&D plans are invested in appropriately with well trained and highly qualified operatives to deliver the highest spec engineering for our products for our customer base. |
With the above business risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control. |
FUTURE DEVELOPMENTS |
The Group will continue to develop its product range and consolidate its position as a leading supplier of technical teaching equipment. Investment in fixed assets and staff will continue and it is expected that this will lead to an increase in profitability levels and a strong overall financial position during this time. |
TecQuipment Holdings Limited (Registered number: 07797243) |
Group Strategic Report |
for the Year Ended 31 July 2023 |
KEY PERFORMANCE INDICATORS |
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the Group, these being turnover, gross margin and operating profit. |
The increase in revenues of 18.5% for the year represented a total turnover figure of £9.5m (2022: £8.0m) for the year. As a business which has a high proportion of its revenue derived from exporting, we have also continued to benefit from the continued weakness in the value of sterling against the US dollar. |
The gross margin for the Group has reduced for the year to 54.9% (2022: 57.7%) which is due to an increase in raw material costs and a labour cost inflation. However, spending on overheads and expenses were closely monitored during the year to offset this shortfall. |
Overall, profit before tax has decreased to £0.57 million (2022: £0.64 million). Profit after taxation was £0.49 million (2022: £0.57 million), due in most part to the increased rate of corporation tax payable with the partial offset of this by the research and development incentives. This is also after the R&D tax benefit which is a great incentive for innovative companies such as ourselves as we take advantage of an effective tax rate lower than the standard rate of corporation tax through use of the R&D tax credits allowance and we expect to continue to derive a benefit from continuing to invest in such qualifying activities for the foreseeable future. |
ON BEHALF OF THE BOARD: |
TecQuipment Holdings Limited (Registered number: 07797243) |
Report of the Directors |
for the Year Ended 31 July 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 July 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 July 2023. |
An EOT distribution was made during the year totalling £0.4m (2021 - £6.7m). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 August 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
DISCLOSURE IN THE STRATEGIC REPORT |
The Group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of future developments and financial instruments. |
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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
TecQuipment Holdings Limited (Registered number: 07797243) |
Report of the Directors |
for the Year Ended 31 July 2023 |
AUDITORS |
The auditors, Charnwood Accountants & Business Advisors LLP, have expressed their willingness to continue in office as auditors and will be proposed for re-appointment at the forthcoming Annual General Meeting in accordance with Section 485 & 487 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
TecQuipment Holdings Limited |
Opinion |
We have audited the financial statements of TecQuipment Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 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 July 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 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 |
TecQuipment Holdings 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 five, 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 |
TecQuipment Holdings 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: |
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud |
Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the Financial Statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the Financial Statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit. |
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the Financial Statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit. |
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs(UK).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. As such material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment and or collusion. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We obtained an understanding of the nature of the industry and sector, including the legal and regulatory frameworks that the Company operate in and how the Company are complying with the legal and regulatory frameworks. Focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and UK tax legislation; |
We inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud; |
We discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the Financial Statements may be susceptible to fraud, having obtained an understanding of the effectiveness of the control environment. |
The engagement partner assessed that the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. |
We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by evaluating management's incentives and opportunities for manipulation of the financial statements. This included the evaluation of the risk of management override of controls. In assessing the potential risks of material misstatement, we obtained an understanding of the company's operations, including the nature of its income and expenditure together with its objectives and strategies to understand the classes of transactions, account balances, expected financial statement disclosures and business risks that may result in risks of material misstatement. Also on the company's control environment, including the policies and procedures implemented by the company to ensure compliance with the requirements of the financial reporting framework. |
Report of the Independent Auditors to the Members of |
TecQuipment Holdings Limited |
We determined that the principal risk in relation to areas of increased management judgement, which could be impacted by management bias, was through the use of journal entries that increase revenues in order to inflate results of the company and could help justify any performance related pay. |
Our audit procedures involved: |
The evaluation of the design effectiveness of controls that the company has in place to prevent and detect fraud; |
To undertake journal entry testing, with a focus on higher risk journal, such as, posted by senior management, journals with unusual attributes, journals without any descriptions, journals posted by staff not in the approved list of journals posting and closing journals posted during the preparation of the financial statements, which are material and not reoccurring or common postings which fall outside of the auditor's expectations. Together with assessing whether the judgments made in making accounting estimates are indicative of a potential bias. |
In response to the risk of irregularities and non-compliance with laws and regulations our procedures included, but which were not limited to; |
Enquiring of management as to actual and potential litigation and claims against the company; |
Completing a review of relevant legal and professional costs within the accounting records for any evidence of previously un-detected or un-reported instances of non-compliance. |
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. |
for and on behalf of |
Statutory Auditor |
The Point |
Granite Way |
Mountsorrel |
Loughborough |
Leicestershire |
LE12 7TZ |
TecQuipment Holdings Limited (Registered number: 07797243) |
Consolidated Income Statement |
for the Year Ended 31 July 2023 |
31.7.23 | 31.7.22 |
Notes | £ | £ |
TURNOVER | 3 | 9,526,801 | 8,039,251 |
Cost of sales | 4,298,466 | 3,403,566 |
GROSS PROFIT | 5,228,335 | 4,635,685 |
Administrative expenses | 4,682,495 | 4,019,462 |
545,840 | 616,223 |
Other operating income | 12,000 | 18,667 |
OPERATING PROFIT | 5 | 557,840 | 634,890 |
Interest receivable and similar income | 12,803 | 180 |
570,643 | 635,070 |
Interest payable and similar expenses | 6 | 1,826 | (6,955 | ) |
PROFIT BEFORE TAXATION | 568,817 | 642,025 |
Tax on profit | 7 | 81,961 | 68,510 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 486,856 | 573,515 |
TecQuipment Holdings Limited (Registered number: 07797243) |
Consolidated Other Comprehensive Income |
for the Year Ended 31 July 2023 |
31.7.23 | 31.7.22 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 486,856 | 573,515 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
486,856 |
573,515 |
Total comprehensive income attributable to: |
Owners of the parent | 486,856 | 573,515 |
TecQuipment Holdings Limited (Registered number: 07797243) |
Consolidated Balance Sheet |
31 July 2023 |
31.7.23 | 31.7.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 158,111 | 158,111 |
Tangible assets | 10 | 1,041,223 | 991,286 |
Investments | 11 | - | - |
1,199,334 | 1,149,397 |
CURRENT ASSETS |
Stocks | 12 | 2,291,563 | 2,398,325 |
Debtors | 13 | 1,614,437 | 1,436,859 |
Cash at bank and in hand | 1,232,525 | 1,116,134 |
5,138,525 | 4,951,318 |
CREDITORS |
Amounts falling due within one year | 14 | 1,643,076 | 1,469,069 |
NET CURRENT ASSETS | 3,495,449 | 3,482,249 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,694,783 |
4,631,646 |
CREDITORS |
Amounts falling due after more than one year |
15 |
- |
(12,500 |
) |
PROVISIONS FOR LIABILITIES | 19 | (179,044 | ) | (190,266 | ) |
NET ASSETS | 4,515,739 | 4,428,880 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 1,464 | 1,464 |
Share premium | 21 | 2,603,724 | 2,603,724 |
Revaluation reserve | 21 | 310,919 | 321,103 |
Retained earnings | 21 | 1,599,632 | 1,502,589 |
SHAREHOLDERS' FUNDS | 4,515,739 | 4,428,880 |
The financial statements were approved by the Board of Directors and authorised for issue on 8 April 2024 and were signed on its behalf by: |
S R Woods - Director |
Mrs S J Dean - Director |
TecQuipment Holdings Limited (Registered number: 07797243) |
Company Balance Sheet |
31 July 2023 |
31.7.23 | 31.7.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 20 | 1,464 | 1,464 |
Share premium | 21 | 2,603,724 | 2,603,724 |
Retained earnings | 21 | 1,323,066 | 1,327,224 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 395,838 | 396,143 |
The financial statements were approved by the Board of Directors and authorised for issue on |
TecQuipment Holdings Limited (Registered number: 07797243) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 July 2023 |
Called up |
share | Retained | Share | Revaluation | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 August 2021 | 1,464 | 1,318,888 | 2,603,724 | 331,285 | 4,255,361 |
Changes in equity |
Profit for the year | - | 573,515 | - | - | 573,515 |
Other comprehensive income | - | (389,814 | ) | - | (10,182 | ) | (399,996 | ) |
Total comprehensive income | - | 183,701 | - | (10,182 | ) | 173,519 |
Balance at 31 July 2022 | 1,464 | 1,502,589 | 2,603,724 | 321,103 | 4,428,880 |
Changes in equity |
Profit for the year | - | 486,856 | - | - | 486,856 |
Other comprehensive income | - | (389,813 | ) | - | (10,184 | ) | (399,997 | ) |
Total comprehensive income | - | 97,043 | - | (10,184 | ) | 86,859 |
Balance at 31 July 2023 | 1,464 | 1,599,632 | 2,603,724 | 310,919 | 4,515,739 |
TecQuipment Holdings Limited (Registered number: 07797243) |
Company Statement of Changes in Equity |
for the Year Ended 31 July 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 August 2021 | 1,464 | 1,331,077 | 2,603,724 | 3,936,265 |
Changes in equity |
Profit for the year | - | 396,143 | - | 396,143 |
Other comprehensive income | - | (399,996 | ) | - | (399,996 | ) |
Total comprehensive income | - | (3,853 | ) | - | (3,853 | ) |
Balance at 31 July 2022 | 1,464 | 1,327,224 | 2,603,724 | 3,932,412 |
Changes in equity |
Profit for the year | - | 395,838 | - | 395,838 |
Other comprehensive income | - | (399,996 | ) | - | (399,996 | ) |
Total comprehensive income | - | (4,158 | ) | - | (4,158 | ) |
Balance at 31 July 2023 | 1,464 | 1,323,066 | 2,603,724 | 3,928,254 |
TecQuipment Holdings Limited (Registered number: 07797243) |
Consolidated Cash Flow Statement |
for the Year Ended 31 July 2023 |
31.7.23 | 31.7.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 705,901 | (457,421 | ) |
Interest paid | (1,826 | ) | 6,955 |
Tax paid | 6,067 | (112,384 | ) |
Net cash from operating activities | 710,142 | (562,850 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (152,040 | ) | (23,269 | ) |
Sale of tangible fixed assets | 7,982 | 250 |
Interest received | 12,803 | 180 |
Net cash from investing activities | (131,255 | ) | (22,839 | ) |
Cash flows from financing activities |
Loan repayments in year | (62,500 | ) | (50,000 | ) |
Capital repayments in year | - | (21,478 | ) |
Contribution to Employee Ownership Trust | (399,996 | ) | (399,996 | ) |
Net cash from financing activities | (462,496 | ) | (471,474 | ) |
Increase/(decrease) in cash and cash equivalents | 116,391 | (1,057,163 | ) |
Cash and cash equivalents at beginning of year |
2 |
1,116,134 |
2,173,297 |
Cash and cash equivalents at end of year | 2 | 1,232,525 | 1,116,134 |
TecQuipment Holdings Limited (Registered number: 07797243) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 July 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.7.23 | 31.7.22 |
£ | £ |
Profit before taxation | 568,817 | 642,025 |
Depreciation charges | 97,123 | (32,265 | ) |
Profit on disposal of fixed assets | (3,000 | ) | (250 | ) |
Finance costs | 1,826 | (6,955 | ) |
Finance income | (12,803 | ) | (180 | ) |
651,963 | 602,375 |
Decrease/(increase) in stocks | 106,762 | (689,549 | ) |
(Increase)/decrease in trade and other debtors | (235,839 | ) | 613,202 |
Increase/(decrease) in trade and other creditors | 183,015 | (983,449 | ) |
Cash generated from operations | 705,901 | (457,421 | ) |
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: |
Year ended 31 July 2023 |
31.7.23 | 1.8.22 |
£ | £ |
Cash and cash equivalents | 1,232,525 | 1,116,134 |
Year ended 31 July 2022 |
31.7.22 | 1.8.21 |
£ | £ |
Cash and cash equivalents | 1,116,134 | 2,173,297 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.8.22 | Cash flow | At 31.7.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,116,134 | 116,391 | 1,232,525 |
1,116,134 | 116,391 | 1,232,525 |
Debt |
Debts falling due within 1 year | (50,000 | ) | 50,000 | - |
Debts falling due after 1 year | (12,500 | ) | 12,500 | - |
(62,500 | ) | 62,500 | - |
Total | 1,053,634 | 178,891 | 1,232,525 |
TecQuipment Holdings Limited (Registered number: 07797243) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 July 2023 |
1. | STATUTORY INFORMATION |
TecQuipment Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
The nature of the Company and Group’s operations together with its principal activities are set out in the Strategic Report. |
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 and under the provision of The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets. |
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 2 below. |
These policies have been consistently applied to all the years presented, unless otherwise stated. |
Going concern |
Having completed their assessment, the directors have concluded that there are no material uncertainties that cast significant doubt about the ability of the Group to continue as a going concern. |
The Group meets its day-to-day working capital requirements through its bank facilities and using existing cash and has not required any additional funds in order ot continue to be operational. The Group’s forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Group should be able to operate within the level of its current facilities and available working capital levels. |
The Group's business activities, together with the factors likely to affect its future development and financial position have been documented in the strategic report. The Group currently has sufficient financial resources together with strong relationships spread over a number of customers to enable future growth to continue. |
After making enquiries, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its financial statements. |
TecQuipment Holdings Limited (Registered number: 07797243) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
2. | ACCOUNTING POLICIES - continued |
Basis of consolidation |
The consolidated financial statements incorporate the assets, liabilities and results of the Company and its subsidiary undertakings controlled by the group up to 31 July each year. |
Subsidiary undertakings are fully consolidated from the date on which control is transferred to the Group. Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. |
The financial statements of all subsidiary undertakings are prepared to the same reporting date as the Company. All subsidiary undertakings have been consolidated. |
The principal subsidiary undertakings of the Company at 31 July each year are detailed in the notes to the |
Company balance sheet. Investments in subsidiaries are accounted for at cost less impairment in the individual financial statements. |
Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated on consolidation. |
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. |
TecQuipment Holdings Limited (Registered number: 07797243) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
2. | ACCOUNTING POLICIES - continued |
Significant judgements and estimates |
In the application of the Group's accounting policies, which are described in the accounting policies below, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
Judgements |
In preparing these financial statements, the directors have made the following key judgements that have a significant effect on the amounts recognised in the financial statements as described below. |
- Determine whether there are indicators of impairment of the Group's tangible and intangible assets along with residual values and asset lives. The residual value is the net realisable value of an asset at the end of its useful economic life. The Group has made an assessment of the residual values that are appropriate for the business and reviews this assessment annually. Note 10 provides details of the value of fixed assets capitalised. |
Estimates and assumptions |
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Group based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Group. Such changes are reflected in the assumptions when they occur. |
a) Establishing useful economic lives for depreciation purposes of property, plant and equipment |
Long-lived assets, consisting primarily of property, plant and equipment, comprise a significant portion of the |
total assets. The annual depreciation charge depends primarily on the estimated useful economic lives of each type of asset and estimates of residual values. The director and senior management team regularly review these asset useful economic lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset useful lives can have a significant impact on depreciation and amortisation charges for the period. Detail of the useful economic lives is included in the tangible fixed asset accounting policy. |
b) Providing for bad and doubtful debts |
The Group makes an estimate of the recoverable value of trade and other debtors. The Group uses estimates based on historical experience in determining the level of debts, which the Group believes, will not be collected. These estimates include such factors as the current credit rating of the debtor, the ageing profile of debtors and historical experience. Any significant reduction in the level of customers that default on payments or other significant improvements that resulted in a reduction in the level of bad debt provision would have a positive impact on the operating results. The level of provision required is reviewed on an on-going basis. |
c) Stock provisioning |
At each reporting date judgement is used by management to establish the net realisable value of stock. Provisions are established for net realisable value where appropriate and are made are based on facts available at the time. The level of provision required is reviewed on an on-going basis. |
In arriving at an estimate for the net realisable value of stock, judgement is required in assessing their likely |
value on realisation taking into account market and technological changes associated with the demand for the product line. |
TecQuipment Holdings Limited (Registered number: 07797243) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
2. | ACCOUNTING POLICIES - continued |
d) Warranty provisions |
We provide maintenance on our systems during the warranty period, usually for up to five years. Costs of warranty include the cost of material, labour and related overhead necessary to repair a product during the warranty period. We accrue for these estimated costs of warranty upon recognition of the sale of the product. The costs are estimated based on actual historical expenses incurred, and are reviewed periodically. Actual warranty costs are recognised against the provision for warranty. The actual warranty costs may differ from estimated warranty costs, and we adjust our provision for warranty accordingly. The director and management are aware that future warranty costs may exceed these estimates, which if an adverse variance could result in an increase of cost of sales. |
Revenue recognition |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover represents the amounts (excluding value added tax) derived from the provision of goods and services to customers during the year and includes net leasing income (relating to profit) receivable from finance leases. |
Revenue is recognised when the significant risks and rewards of the goods or services provided have transferred to the buyer, the amount of revenue can be measured reliably and it is probable that the economic benefits associated with the transaction will flow to the Group. |
Revenue is measured at the fair value of the consideration receivable from the sale of goods and services to third parties after deducting discounts. Revenue includes duties which the Group pays as principal, but excludes amounts collected on behalf of other parties, such as value added tax or other sales taxes. |
Revenue of the Group comprises the following key streams: |
Sale of goods |
Revenue on the sale of goods delivered is recognised when goods have been dispatched to the customer. No revenue is recognised on work in progress. |
Dividend income - company only |
Dividend income is recognised when the right to receive payment is established. |
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. |
TecQuipment Holdings Limited (Registered number: 07797243) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use. |
Freehold property is measured at fair value less accumulated depreciation and impairment losses recognised after the date of revaluation. Valuations are performed with sufficient frequency to ensure that the carrying amount of a revalued asset does not differ materially from its fair value. A revaluation surplus is recorded in OCI and credited to the asset revaluation surplus in equity. However, to the extent that it reverses a revaluation deficit of the same asset previously recognised in profit or loss, the increase is recognised in profit and loss. A revaluation deficit is recognised in the statement of profit or loss, except to the extent that it offsets an existing surplus on the same asset recognised in the asset revaluation surplus. |
An annual transfer from the asset revaluation surplus to retained earnings is made for the difference between depreciation based on the revalued carrying amount of the asset and depreciation based on the asset’s original cost. Additionally, accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Upon disposal, any revaluation surplus relating to the particular asset being sold is transferred to retained earnings. |
Land is not depreciated. Depreciation on other assets is calculated, using the straight-line and reducing balance methods, to allocate the depreciable amount to their residual values over their estimated useful lives. The assets’ residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively. |
Stocks |
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to |
complete and sell, and after making due allowance for obsolete and slow moving items. |
The cost of stock is calculated on the weighted average cost principle on a first in first out basis and includes expenditure incurred in acquiring stock, production or conversion costs, and other costs incurred in bringing them to their existing location and condition. Stocks are recognised as an expense in the period in which the related revenue is recognised. |
Cost for raw materials and consumables are at the purchase cost to the company. Cost for Work in progress and finished goods includes all direct expenditure.The cost of work in progress and finished goods includes |
production overheads and the attributable proportion of indirect overheads based on the normal level of activity. |
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price, in the ordinary course of business, less costs to complete and sell. The impairment provision is determined primarily by future demand forecasts. The write down is measured as the difference between the calculated cost of the stock and market based upon assumptions about future demand and charged to the provision for stock, which is a component of cost of sales. |
TecQuipment Holdings Limited (Registered number: 07797243) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The Group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and loans to/from related parties. |
Debt instruments, like loans and other accounts receivable and payable, are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. |
However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payment discounted at a market rate of interest for a similar debt instrument. |
Trade and other debtors |
Trade and other debtors are initially recognised at the transaction price and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the debtors are stated at cost less impairment losses for bad and doubtful debts. |
A provision for impairment of trade debtors is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of debtors. The amount of the provision is determined as the difference between the asset's carrying amount and the present value of estimated future cash flows, and is recognised in the profit & loss in operating expenses. |
Trade and other creditors |
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the balance sheet, bank overdrafts are shown within borrowings or current liabilities when applicable. |
In the Cash Flow Statement, cash and cash equivalents are shown separate to bank overdrafts that are repayable on demand and form an integral part of the group's cash management. |
Taxation |
Taxation for the year 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. |
TecQuipment Holdings Limited (Registered number: 07797243) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
2. | ACCOUNTING POLICIES - continued |
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 year 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 |
In preparing the financial statements of the company, transactions in currencies other than the functional currency are recognised at the spot rate at the dates of the transactions, or at an average rate where this rate approximates the actual rate at the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. |
Exchange differences are recognised in profit or loss in the period in which they arise or loss. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Provisions for liabilities |
Provisions for liabilities including warranty claims are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the company 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 profit or loss in the period it arises. |
Employee ownership trust |
The Group established the TecQuipment Employee Ownership Trust with the purpose of ensuring that shares in the Group are held by the trustees for the benefit of the Group's employees and whereby those employees will have an interest in the Group's business by having greater involvement in its operations and a share on its profits. |
The distributions made by the Group to the Trust are treated as gift payments so that the Trust can meet its obligations. |
TecQuipment Holdings Limited (Registered number: 07797243) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
31.7.23 | 31.7.22 |
£ | £ |
United Kingdom | 2,136,581 | 1,409,862 |
Europe | 984,075 | 558,922 |
Other worldwide sales | 6,406,145 | 6,070,467 |
9,526,801 | 8,039,251 |
The group's principal activities are as stated in the strategic report and the group operates within the geographical region regions stated above. |
Turnover represents the amounts derived from the provision of goods and services which fall within the group's ordinary activities, stated net of value added tax. |
4. | EMPLOYEES AND DIRECTORS |
31.7.23 | 31.7.22 |
£ | £ |
Wages and salaries | 3,088,044 | 2,735,978 |
Social security costs | 286,873 | 257,269 |
Other pension costs | 165,898 | 153,308 |
3,540,815 | 3,146,555 |
The average number of employees during the year was as follows: |
31.7.23 | 31.7.22 |
Management | 6 | 7 |
Admin & indirects | 35 | 32 |
Technical | 40 | 37 |
Directors | 4 | 4 |
31.7.23 | 31.7.22 |
£ | £ |
Directors' remuneration | 179,101 | 147,215 |
Directors' pension contributions to money purchase schemes | 47,540 | 72,188 |
Compensation to director for loss of office | - | 58,800 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 3 |
TecQuipment Holdings Limited (Registered number: 07797243) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.7.23 | 31.7.22 |
£ | £ |
Other operating leases | 10,417 | 25,000 |
Depreciation - owned assets | 97,121 | 115,313 |
Profit on disposal of fixed assets | (3,000 | ) | (250 | ) |
Auditors' remuneration | 17,325 | 15,300 |
Foreign exchange differences | (239,644 | ) | (141,142 | ) |
Stock recognised as an expense | 3,460,234 | 2,333,003 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.7.23 | 31.7.22 |
£ | £ |
Bank loan interest | 1,826 | (6,955 | ) |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.7.23 | 31.7.22 |
£ | £ |
Current tax: |
UK corporation tax | 93,183 | 52,194 |
Deferred tax: |
Accelerated capital allowances | (10,257 | ) | 18,798 |
Other timing differences | (965 | ) | (2,482 | ) |
Total deferred tax | (11,222 | ) | 16,316 |
Tax on profit | 81,961 | 68,510 |
TecQuipment Holdings Limited (Registered number: 07797243) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31.7.23 | 31.7.22 |
£ | £ |
Profit before tax | 568,817 | 642,025 |
Profit multiplied by the standard rate of corporation tax in the UK of 21 % (2022 - 19 %) |
119,452 |
121,985 |
Effects of: |
Expenses not deductible for tax purposes | 216 | 111 |
Capital allowances in excess of depreciation | (106 | ) | - |
Depreciation in excess of capital allowances | - | 3,282 |
Change in tax rate | 23 | - |
R&D Claim | (37,470 | ) | (55,290 | ) |
Other temporary current timing differences | (154 | ) | (1,578 | ) |
Total tax charge | 81,961 | 68,510 |
In the Spring Budget 2021 the UK government announced that they will be increasing the corporation tax rate from 19% to 25% from 1 April 2023. This rate change was substantively enacted on 24 May 2021 which is before the balance sheet date and therefore deferred taxes are recognised at this rate at the balance sheet date. |
The effective tax rate differs from the UK corporation tax rate principally due to the deductibility of allowances on capital expenditure and other permanent differences arising in the period as detailed in the tax charge reconciliation. |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
9. | INTANGIBLE FIXED ASSETS |
Group |
Computer |
software |
£ |
COST |
At 1 August 2022 |
and 31 July 2023 | 158,111 |
NET BOOK VALUE |
At 31 July 2023 | 158,111 |
At 31 July 2022 | 158,111 |
TecQuipment Holdings Limited (Registered number: 07797243) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST OR VALUATION |
At 1 August 2022 | 790,000 | 660,623 | 188,635 |
Additions | - | 142,188 | 4,888 |
Disposals | - | - | - |
At 31 July 2023 | 790,000 | 802,811 | 193,523 |
DEPRECIATION |
At 1 August 2022 | 68,467 | 460,101 | 145,963 |
Charge for year | 17,116 | 52,828 | 15,996 |
Eliminated on disposal | - | - | - |
At 31 July 2023 | 85,583 | 512,929 | 161,959 |
NET BOOK VALUE |
At 31 July 2023 | 704,417 | 289,882 | 31,564 |
At 31 July 2022 | 721,533 | 200,522 | 42,672 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 August 2022 | 22,485 | 293,041 | 1,954,784 |
Additions | - | 4,964 | 152,040 |
Disposals | (13,495 | ) | (28,449 | ) | (41,944 | ) |
At 31 July 2023 | 8,990 | 269,556 | 2,064,880 |
DEPRECIATION |
At 1 August 2022 | 13,592 | 275,375 | 963,498 |
Charge for year | 1,422 | 9,759 | 97,121 |
Eliminated on disposal | (8,513 | ) | (28,449 | ) | (36,962 | ) |
At 31 July 2023 | 6,501 | 256,685 | 1,023,657 |
NET BOOK VALUE |
At 31 July 2023 | 2,489 | 12,871 | 1,041,223 |
At 31 July 2022 | 8,893 | 17,666 | 991,286 |
Included in cost or valuation of land and buildings is freehold land of £105,333 (2022 - £105,333) which is not depreciated. |
TecQuipment Holdings Limited (Registered number: 07797243) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Cost or valuation at 31 July 2023 is represented by: |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
Valuation in 2018 | 390,000 | - | - |
Cost | 400,000 | 802,811 | 193,523 |
790,000 | 802,811 | 193,523 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
Valuation in 2018 | - | - | 390,000 |
Cost | 8,990 | 269,556 | 1,674,880 |
8,990 | 269,556 | 2,064,880 |
If freehold property had not been revalued it would have been included at the following historical cost: |
31.7.23 | 31.7.22 |
£ | £ |
Cost | 400,000 | 400,000 |
Aggregate depreciation | 104,000 | 97,067 |
Value of land in freehold land and buildings | 53,333 | 53,333 |
Freehold land and buildings were valued on an open market basis during 2018 by external valuers Mather Jamie in accordance with the appraisal and valuation manual of the Royal Institute of Chartered Surveyors.The director assesses that at the year end the valuation of the freehold property has not materially changed from the date of the valuation report. |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 August 2022 |
and 31 July 2023 |
NET BOOK VALUE |
At 31 July 2023 |
At 31 July 2022 |
TecQuipment Holdings Limited (Registered number: 07797243) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: Bonsall Street, Long Eaton,Nottinghamshire, NG10 2AN |
Nature of business: |
% |
Class of shares: | holding |
In the opinion of the director the shares in the company’s subsidiary are worth at least the amounts at which they are stated in the balance sheet. |
12. | STOCKS |
Group |
31.7.23 | 31.7.22 |
£ | £ |
Stocks | 1,341,603 | 1,337,620 |
Work-in-progress | 373,818 | 383,907 |
Finished goods | 576,142 | 676,798 |
2,291,563 | 2,398,325 |
The above includes a write down provision of stock for the year of £310,859. |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.7.23 | 31.7.22 | 31.7.23 | 31.7.22 |
£ | £ | £ | £ |
Trade debtors | 1,447,649 | 1,173,323 |
Amounts owed by group undertakings | - | - |
Other debtors | 22 | 90,462 |
Tax | - | 58,261 |
VAT | 27,788 | - |
Prepayments | 138,978 | 114,813 |
1,614,437 | 1,436,859 |
TecQuipment Holdings Limited (Registered number: 07797243) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.7.23 | 31.7.22 | 31.7.23 | 31.7.22 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | - | 50,000 |
Trade creditors | 619,522 | 515,871 |
Tax | 93,183 | 52,194 |
Social security and other taxes | 73,583 | 61,860 |
VAT | - | 3,092 | - | - |
Other creditors | 124,929 | 213,837 |
Credit card control | 18,018 | 17,144 | - | - |
Deferred income | 140,443 | 131,937 |
Accrued expenses | 573,398 | 423,134 |
1,643,076 | 1,469,069 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
31.7.23 | 31.7.22 |
£ | £ |
Bank loans (see note 16) | - | 12,500 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
31.7.23 | 31.7.22 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | - | 50,000 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | - | 12,500 |
The bank loan was repayable over 15 years at an interest rate of 2.5% above base. |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
31.7.23 | 31.7.22 |
£ | £ |
Bank loans | - | 62,500 |
The bank loan is secured by way of a debenture and first legal charge over the Group's premises. |
The hire purchase liability is secured over the assets to which they relate. |
TecQuipment Holdings Limited (Registered number: 07797243) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
18. | FINANCIAL INSTRUMENTS |
Group | 2023 | 2022 |
£ | £ |
Financial assets measured at amortised cost | 2,680,196 | 2,379,919 |
Financial liabilities measured at amortised cost | 1,476,310 | 1,301,924 |
Loan commitments measured at cost less impairment | - | 62,500 |
Financial assets measured at amortised cost comprise cash at bank and in hand, trade debtors and other debtors. |
Financial liabilities measured at amortised cost comprise trade creditors, hire purchase obligations and other |
creditors. |
Terms of the bank loans are detailed within the secured debt disclosure note above. |
19. | PROVISIONS FOR LIABILITIES |
Group |
31.7.23 | 31.7.22 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 89,074 | 99,331 |
Other timing differences | 89,970 | 90,935 |
179,044 | 190,266 |
Group |
Deferred |
tax |
£ |
Balance at 1 August 2022 | 190,266 |
Accelerated capital allowances | (10,257 | ) |
Other timing differences | (965 | ) |
Balance at 31 July 2023 | 179,044 |
Deferred tax is provided at the future effective tax rate of 25% (2021 - 19%) based on the tax rates substantively enacted at the balance sheet date and the profitability of the company for the expected timing of the reversals and the profitability of the company. The accelerated capital allowances deferred tax balance primarily relates to the reversal of timing differences on depreciation in excess of capital allowances claimed. |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.7.23 | 31.7.22 |
value: | £ | £ |
Ordinary 10p | 10p | 1,391 | 1,391 |
Ordinary Founder | 10p | 73 | 73 |
1,464 | 1,464 |
TecQuipment Holdings Limited (Registered number: 07797243) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
20. | CALLED UP SHARE CAPITAL - continued |
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company. All ordinary shares rank equally with regard to the company's residual assets. |
Called-up share capital represents the nominal value of shares that have been issued. |
21. | RESERVES |
Group |
Retained | Share | Revaluation |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 August 2022 | 1,502,589 | 2,603,724 | 321,103 | 4,427,416 |
Profit for the year | 486,856 | 486,856 |
Excess depreciation transfer | 10,183 | - | (10,184 | ) | (1 | ) |
Contributions to Employee |
Ownership Trust | (399,996 | ) | - | - | (399,996 | ) |
At 31 July 2023 | 1,599,632 | 2,603,724 | 310,919 | 4,514,275 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 August 2022 | 1,327,224 | 2,603,724 | 3,930,948 |
Profit for the year | 395,838 | 395,838 |
Contributions to Employee |
Ownership Trust | (399,996 | ) | - | (399,996 | ) |
At 31 July 2023 | 1,323,066 | 2,603,724 | 3,926,790 |
Retained earnings as shown in the statement of changes in equity includes all current and prior retained period profits and losses of the Group. |
Revaluation reserve as shown in the statement of changes in equity is used to record increases in the value of property plant and equipment fixed assets and decreases to the extent that such decrease relates to an increase on the same asset, net of any deferred tax provision. |
22. | PENSION COMMITMENTS |
The group does not operate a defined benefit pension scheme but a defined contribution pension scheme. The group makes contributions to its pension scheme for employees, including directors when required. The assets of the scheme are held separately from those of the group in an independently administered fund. At the balance sheet date, unpaid contributions of £30,119 (2022 - £26,259) were due to the fund. These are included in other creditors. |
23. | RELATED PARTY DISCLOSURES |
Other related parties |
31.7.23 | 31.7.22 |
£ | £ |
Purchases | 10,417 | 25,000 |
TecQuipment Holdings Limited (Registered number: 07797243) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2023 |
23. | RELATED PARTY DISCLOSURES - continued |
During the year the Group has been charged rent for it's premises from a company under the control of one of the directors. |
During the year £399,996 was gifted to the now 95% shareholder of the company, Tecquipment Trustees Limited. This has been utilised to pay in part consideration due to the previous shareholder. |
24. | ULTIMATE CONTROLLING PARTY |
The Group is under the control of the employee ownership trust via the company Tecquipment Trustees Limited, Bonsall Street, Long Eaton, Nottingham, United Kingdom, NG10 2AN, a company incorporated in England & Wales which holds the ordinary shares issued by Tecquipment Holdings Limited in Trust for the benefit of the employees. |