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Registered number: 02886463










POWERVAMP LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
POWERVAMP LIMITED
 
 
COMPANY INFORMATION


Directors
E Jalil 
L Jamet 
J Mearns 
N Verin 




Registered number
02886463



Registered office
3rd Floor
One London Square

Cross Lanes

Guildford

Surrey

GU1 1UN




Independent auditors
MHA
Chartered Accountants

6th Floor

2 London Wall Place

London

EC2Y 5AU




Bankers
HSBC
209 Bedford Road

Kempston

Bedfordshire

MK42 8DD





 
POWERVAMP LIMITED
 

CONTENTS



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditors' report
 
5 - 8
Statement of comprehensive income
 
9
Balance sheet
 
10 - 11
Statement of changes in equity
 
12
Notes to the financial statements
 
13 - 29


 
POWERVAMP LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their strategic report for the year ended 31 December 2023.

Business review
 
The rebound of the global aviation sector post-pandemic allowed the company to achieve a very good performance in 2023, with turnover increasing by 48%. The demand for electric ground support equipment (eGSE), replacing diesel was notable, in particular mobile ground power units (GPU).
The turnover increase allowed the company to absorb fixed costs and thus achieve economies of scale. This growth, combined with effort made on product engineering, allowed Powervamp to get very close to profitability by the end of 2023.
The year 2023 saw a significant order intake, this trend is currently continuing ensuring activity growth for 2024.
The year 2022 was strongly marked by inflation, thankfully the situation has stabilised in 2023. The tension on supply lead times has generally decreased, although the situation varies greatly depending on the components and sources of supply. The company therefore continued to develop new purchasing alternatives to satisfy the needs of its customers.  
The company continues to invest significantly in R&D activities as we continue to improve existing products, innovate, reduce costs as well as seek new markets.
Balance Sheet Review
The working capital of the company has increased to support the company growth, as well as the increase of inventory to mitigate the supply chain risk.
There has not been any significant capitalised expenditure for 2023.

Principal risks and uncertainties
 
The Company operates mainly in the aviation sector. This sector was strongly impacted by the COVID-19 crisis but experienced a strong recovery since 2022. The current rebound is also linked to the Group strategy “Leaner & Greener”, helping aviation to reduce carbon emissions. Our products are fully in line with the demand of our customers and diversified sales network.
Liquidity risk
The Company aims to mitigate liquidity risk by managing cash generation by its operations and applying cash collection targets. The company also relies on the availability of funding from the Group to fund investment and cover operating losses where they arise. The Group manages liquidity risk via revolving credit facilities and long term debt.
Credit risk
The company’s principal financial assets are bank balances, cash, trade and other debtors.
The company’s credit risk is primarily attributable to its trade debtors. The amounts presented in the balance sheet are net of allowances for doubtful debts. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.
The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.
 
Page 1

 
POWERVAMP LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

The company has no significant concentration of credit risk, with exposure spread over many counterparties and customers.
Non-Financial Risk
2023 concluded with a high order intake, this together with an expected increase in sales, will see revenues for 2024 continue to increase.
The main risk for the company will be the continued ramp-up in production as well as managing the ongoing supply chain difficulties to meet the delivery demands of our customers at the expected quality level.

Financial key performance indicators
 
 
The Company’s key performance indicators are its turnover, gross profit and net loss. These are as
follows for the last two years:
 
   2023   2022
Turnover   £14,812,481  £10,056,173
Gross Profit   £4,102,900  £3,559,628
Net Loss   £330,951  £768,018


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



J Mearns
Director

Date: 4 July 2024

Page 2

 
POWERVAMP LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

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


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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

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

Principal activity

The principal activity of the company is the design and manufacture of specialist power equipment for the aviation and automotive sectors.

Results and dividends

The loss for the year, after taxation, amounted to £330,951 (2022 - loss £768,018).

Directors

The directors who served during the year were:

E Jalil 
L Jamet 
J Mearns 
N Verin 

Qualifying third party indemnity provisions

Director's liability and indemnity insurance was in force throughout the year to cover the directors and officers of the company against actions brought against them in personal capacities. Cover is not provided where the individual has acted fraudlently or dishonestly.

Page 3

 
POWERVAMP LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Future developments

The market is confirming a rebound, even if 2019 level is not expected back before 2024. The growth is currently coming from the diversification of our sales through the development of new products.
New and exciting opportunities are opening up for Powervamp products. We are working with various Alvest entities to combine resources and technology, creating new products and additional revenue streams for years to come. 

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

 A resolution to reappoint MHA as independent auditor will be proposed at the next Annual General Meeting.

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





J Mearns
Director

Date: 4 July 2024

Page 4

 
POWERVAMP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF POWERVAMP LIMITED
 

Opinion


We have audited the financial statements of Powervamp Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 Company's affairs as at 31 December 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


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 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.


Page 5

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


Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

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


Auditors' responsibilities for the audit of the financial statements
 

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

• Obtaining an understanding of the legal and regulatory frameworks that the company operates in; key  correspondence with regulatory authorities;
• Reviewing key correspondence with regulatory authorities;
• Testing for evidence of management override;
• Enquiry of management to identify any instances of non-compliance with laws and regulations;
• Enquiry of management around actual and potential litigation and claims;
• Enquiry of management to identify any instances of known or suspected instances of fraud;
• Discussing among the engagement team regarding how and where fraud might occur.
Because of the inherent limiations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


Page 7

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


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Neil Stern FCA (Senior statutory auditor)
  
for and on behalf of
MHA
 
Statutory Auditor
London
United Kingdom
  

6 August 2024
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).
Page 8

 
POWERVAMP LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
14,812,481
10,056,173

Cost of sales
  
(10,709,581)
(6,496,545)

Gross profit
  
4,102,900
3,559,628

Administrative expenses
  
(4,367,371)
(4,227,649)

Other operating income
 5 
323,919
115,057

Operating profit/(loss)
 6 
59,448
(552,964)

Interest payable and similar expenses
 10 
(390,399)
(215,054)

Loss before tax
  
(330,951)
(768,018)

Loss for the financial year
  
(330,951)
(768,018)

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

The notes on pages 13 to 29 form part of these financial statements.

Page 9

 
POWERVAMP LIMITED
REGISTERED NUMBER: 02886463

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 12 
684,303
706,506

Tangible assets
 13 
4,494,366
4,772,514

  
5,178,669
5,479,020

Current assets
  

Stocks
 14 
5,271,045
4,133,794

Debtors: amounts falling due within one year
 15 
4,683,942
3,882,016

Cash at bank and in hand
 16 
803,915
292,236

  
10,758,902
8,308,046

Creditors: amounts falling due within one year
 17 
(12,942,471)
(10,746,961)

Net current liabilities
  
 
 
(2,183,569)
 
 
(2,438,915)

Total assets less current liabilities
  
2,995,100
3,040,105

Creditors: amounts falling due after more than one year
 18 
(2,905,012)
(2,905,012)

Provisions for liabilities
  

Other provisions
 21 
(598,954)
(313,008)

  
 
 
(598,954)
 
 
(313,008)

Net liabilities
  
(508,866)
(177,915)


Capital and reserves
  

Called up share capital 
 22 
32,728
32,728

Share premium account
 23 
432,729
432,729

Capital redemption reserve
 23 
9
9

Profit And Loss Account
 23 
(974,332)
(643,381)

  
(508,866)
(177,915)


Page 10

 
POWERVAMP LIMITED
REGISTERED NUMBER: 02886463
    
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

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




J Mearns
Director

Date: 4 July 2024

The notes on pages 13 to 29 form part of these financial statements.

Page 11

 
POWERVAMP LIMITED
 

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


Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 January 2022
32,728
432,729
9
124,637
590,103


Comprehensive income for the year

Loss for the year
-
-
-
(768,018)
(768,018)
Total comprehensive income for the year
-
-
-
(768,018)
(768,018)



At 1 January 2023
32,728
432,729
9
(643,381)
(177,915)


Comprehensive income for the year

Loss for the year
-
-
-
(330,951)
(330,951)
Total comprehensive income for the year
-
-
-
(330,951)
(330,951)


At 31 December 2023
32,728
432,729
9
(974,332)
(508,866)


The notes on pages 13 to 29 form part of these financial statements.

Page 12

 
POWERVAMP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Powervamp Limited is a private company limited by shares and is registered and incorporated in England and Wales. The registered office is 3rd Floor One London Square, Cross Lanes, Guildford, Surrey, United Kingdom, GU1 1UN.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of TLD Group SAS as at 31 December 2023 and these financial statements may be obtained from 100-104 Boulevard du Montparnasse, 75014 Paris, France.

 
2.3

Going concern

The company had net current liabilities of £2,183,569 (2022 - £2,438,915) at the balance sheet date.
Based on future cash flows on ongoing contracts and having regard to the resources available to the entity, the Directors have concluded that there is no material uncertainty with regards to the entity's ability to continue as a going concern. The financial statements have been prepared on a going concern basis as the parent company, TLD Group SAS, has indicated its support of the company for at least 12 months from the date of approval of the financial statements.

Page 13

 
POWERVAMP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured
Page 14

 
POWERVAMP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.5
Revenue (continued)

reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.6

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.7

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 4 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.8

Finance costs

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

 
2.9

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.10

Pensions

Defined contribution pension plan

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

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

Page 15

 
POWERVAMP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.12

Tangible fixed assets

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Freehold property
-
20 years
Plant and machinery
-
5 years
Motor vehicles
-
5 years
Fixtures and fittings
-
4-5 years
Computer equipment
-
5 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.13

Stocks

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

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

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 16

 
POWERVAMP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.18

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Balance sheet when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly
Page 17

 
POWERVAMP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.18
Financial instruments (continued)

traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Page 18

 
POWERVAMP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Sale of goods
14,790,337
9,997,161

Other revenue
22,144
59,012

14,812,481
10,056,173


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
1,820,303
790,622

Rest of Europe
2,258,384
2,804,578

Rest of the world
10,733,794
6,460,973

14,812,481
10,056,173



5.


Other operating income

2023
2022
£
£

Other operating income
336,886
108,709

Net rents receivable
(12,967)
6,348

323,919
115,057


Page 19

 
POWERVAMP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Operating profit/(loss)

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

2023
2022
£
£

Research & development charged as an expense
-
17,572

Exchange differences
(259,725)
184,755

Other operating lease rentals
25,766
15,544


7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
30,000
27,500

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


8.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
3,158,155
2,461,062

Social security costs
286,364
246,164

Cost of defined contribution pension scheme
211,219
154,407

3,655,738
2,861,633


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


        2023
        2022
            No.
            No.







Directors
4
4



Administrative
37
32



Direct labour
26
25

67
61

Page 20

 
POWERVAMP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
90,052
81,386

Company contributions to defined contribution pension schemes
3,363
3,038

93,415
84,424


During the year retirement benefits were accruing to 2 directors (2022 - 2) in respect of defined contribution pension schemes.


10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
-
148

Other loan interest payable
238,599
139,390

Loans from group undertakings
151,800
75,516

390,399
215,054

Page 21

 
POWERVAMP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Taxation



Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Loss on ordinary activities before tax
(330,951)
(768,018)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 -  19 %)
(62,881)
(145,923)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
91,275
(34,019)

Depreciation for the year in excess of capital allowances
43,842
67,846

Prior year adjustments
55,472
-

Unrelieved tax losses carried forward
(127,708)
112,096

Total tax charge for the year
-
-


Factors that may affect future tax charges

The rate of corporation tax increased to 25% on 1 April 2023.

Page 22

 
POWERVAMP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Intangible assets




Development expenditure
Computer software
Goodwill
Total

£
£
£
£



Cost


At 1 January 2023
1,554,369
3,959
320,386
1,878,714


Additions
129,050
-
-
129,050



At 31 December 2023

1,683,419
3,959
320,386
2,007,764



Amortisation


At 1 January 2023
851,151
671
320,386
1,172,208


Charge for the year
149,933
1,320
-
151,253



At 31 December 2023

1,001,084
1,991
320,386
1,323,461



Net book value



At 31 December 2023
682,335
1,968
-
684,303



At 31 December 2022
703,218
3,288
-
706,506



Page 23

 
POWERVAMP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Tangible fixed assets





Freehold property
Plant and machinery
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
5,355,490
279,754
255,438
118,719
6,009,401


Additions
48,578
33,000
-
16,265
97,843



At 31 December 2023

5,404,068
312,754
255,438
134,984
6,107,244



Depreciation


At 1 January 2023
795,076
252,015
126,214
63,582
1,236,887


Charge for the year
271,042
14,373
62,658
27,918
375,991



At 31 December 2023

1,066,118
266,388
188,872
91,500
1,612,878



Net book value



At 31 December 2023
4,337,950
46,366
66,566
43,484
4,494,366



At 31 December 2022
4,560,414
27,739
129,224
55,137
4,772,514




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


2023
2022
£
£

Freehold property
4,337,950
4,560,413

4,337,950
4,560,413



14.


Stocks

2023
2022
£
£

Raw materials and consumables
3,836,931
3,336,044

Work in progress (goods to be sold)
914,110
512,505

Finished goods and goods for resale
520,004
285,245

5,271,045
4,133,794


Page 24

 
POWERVAMP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Debtors

2023
2022
£
£


Trade debtors
1,043,821
138,364

Amounts owed by group undertakings
3,117,548
3,144,906

Other debtors
202,760
310,075

Prepayments and accrued income
319,813
288,671

4,683,942
3,882,016



16.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
803,915
292,236

803,915
292,236



17.


Creditors: Amounts falling due within one year

2023
2022
£
£

Other loans
3,994,988
3,994,988

Trade creditors
2,444,772
1,345,807

Amounts owed to group undertakings
5,171,397
5,103,039

Other taxation and social security
77,020
63,799

Other creditors
531,886
87,606

Accruals and deferred income
722,408
151,722

12,942,471
10,746,961


Page 25

 
POWERVAMP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

18.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Other loans
2,905,012
2,905,012

2,905,012
2,905,012


Other loans are unsecured and bear interest at commercial rates.


19.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Other loans
3,994,988
3,994,988


3,994,988
3,994,988

Amounts falling due 1-2 years

Other loans
2,905,012
2,905,012


2,905,012
2,905,012



6,900,000
6,900,000



20.


Deferred taxation


Deferred tax is not recognised in respect of tax losses of £1,902,647 (2022: £2,574,793) and tax credits of £390,339 (2022: £297,753) as it is not probable that they will be recovered against the reversal of deferred tax liabilities or taxable profits in the forseeable future.

Page 26

 
POWERVAMP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

21.


Provisions


Warranty Provision

£





At 1 January 2023
313,008


Charged to profit or loss
285,946



At 31 December 2023
598,954

The provision is £598,954, of which £283,922 is to cover customers 2 years warranty and another £315,032 related to electric battery replacement and reclycling process, representing the estimated cost to related warranties. The electric battery technology is still native and its cost today is uncertain. The provision is to cover both costs over a longer horizon ( battety life is estimated at 10 years). The company offers its customers a 2-years warranty on its products. This amount is based on the historical warranty costs and the directors' best estimate. The company anticipates the provision will be settled within the next couple of years.

Page 27

 
POWERVAMP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

22.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



32,728 (2022 - 32,728) Ordinary shares of £1.00 each
32,728
32,728



23.


Reserves

Share premium account

Consideration received for shares issued above their nominal value net of transaction costs.

Capital redemption reserve

The nominal value of shares repurchased.

Profit and loss account

Cumulative profit and loss net of distribution to owners.


24.


Pension commitments

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held seperately from those of the company in an independently administered fund. Contributions totalling £16,721 (2022: £13,028) were payable to the fund at the year end and are included in creditors.


25.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
17,254
18,147

Later than 1 year and not later than 5 years
7,021
28,385

24,275
46,532

Page 28

 
POWERVAMP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

26.


Parent entity and ultimate controlling party

TLD Group SAS is the immediate parent and is the smallest group for which consolidated accounts including Powervamp Limited are prepared. TLD Group SAS is a company incorporated in France and whose registered office is 100-104 Bouldevard du Montparnasse, 75014 Paris, France.
Alvest Holding SAS is the ultimate controlling party and the largest group for which consolidated accounts including Powervamp Limited are prepared. Alvest Holding SAS is a company incorporated in France and whose registered office is 100 Boulevard du Montparnasse, 75014 Paris, France.

 
Page 29