Company registration number 06360898 (England and Wales)
ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
COMPANY INFORMATION
Director
N Downing
Company number
06360898
Registered office
Fourth Floor
Unit 5B, The Parklands
Bolton
BL6 4SD
Auditor
Sumer Auditco Limited
The Beehive
City Place
Gatwick
RH6 0PA
Bankers
NatWest
Warrington Street
Ashton-Under-Lyne
Lancashire
OL6 6JL
ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 32
ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The director presents the strategic report for the year ended 31 December 2023.

Review of the business

The directors are satisfied with the financial performance of the year and the financial position of the group at the year end.

 

The group has had another successful year in terms of both turnover and profitability and the directors expect that this growth will continue for the forthcoming year. The directors are satisfied that the group is well placed and have maintained adequate reserves and cash balances to enable sufficient mitigation of any future financial, commercial and economic risks that the group may encounter.

Principal risks and uncertainties

The directors have considered the exposure of the group to risks. The principal risks are liquidity risk, interest rate risk, foreign currency risk and credit risk. The group is funded through its retained earnings and borrowings. The directors regularly monitor cash flow projections of the group in order to ensure that it has sufficient available funds for its continuing operations.

 

The group currently has borrowings that are at a variable rate of interest that was used to purchase the group. The risk is managed by monitoring key ratios such as interest cover, as well as cash flow. The group does not use derivative financial instruments to manage this risk and, as such, no hedge accounting is applied.

 

The group's principal foreign currency exposures arise from trading with overseas companies. Group policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. This hedging activity involves the use of foreign exchange forward contracts.

 

The group has policies in place such that credit checks are made on all potential customers as part of the set new account procedures. Key suppliers are also subject to credit checks in order to mitigate supply chain failure.

Key performance indicators

The group reviews and monitors its performance against a number of key performance indicators both financial and non-financial. As a trading group, the principal measures include turnover, gross profit margin and net assets. These are reviewed by the management team and reported to the Board on a monthly basis.

 

The Directors have and will continue to monitor all of the KPI’s and daily operating controls and maintain a strong focus on increasing performance in all aspects of the business.

 

The main KPI’s and corresponding results are as follows:

 

2023         2022

Turnover                £15.7m        £16.3m

Gross profit margin        22.94%        23.41%

Net assets             £2.3m         £3.4m

 

The group has achieved increased turnover and consistent gross profit margin due to its trading activity.

 

The increase in net assets illustrates the increased financial strength of the group.

Future Developments

The group has reported improvements in turnover generated from the trading activities, based on the prior years figures. This together with the strong net assets position of the group demonstrates that the group is in a strong financial position and has the ability to invest in the group's future.

ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

On behalf of the board

N Downing
Director
7 August 2024
ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities
The principal activity of the group continued to be that of supplier and stockist of specialist fastenings and kitted proprietary products. There were no significant changes in its activity during the year.
Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £1,000. The director does not recommend payment of a further dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

N Downing
Future developments

The strategic report contains details of future developments

Auditor

Sumer Auditco Limited were appointed as auditor of the company following the transfer of the audit business from Cowgill Holloway LLP, and are deemed to be reappointed under section 487 (2) of the Companies House Act 2006.

Statement of director's responsibilities

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

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

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
N Downing
Director
7 August 2024
2024-08-07
ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
- 5 -
Opinion

We have audited the financial statements of Assembly Techniques (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. 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. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
- 6 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

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

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussions with the Directors (as required by auditing standards) and discussed with the Directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

 

Secondly, the Company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect; laws related to Health and Safety, Employment, UK Companies Act, Pension Legislation, Tax Legislation and Construction Regulations.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance.

ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
- 7 -

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

We design procedures in line with our responsibilities, outline below to detect material misstatement due to fraud:

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Stuart Stead (Senior Statutory Auditor)
For and on behalf of Sumer Auditco Limited
7 August 2024
Statutory Auditor
The Beehive
City Place
Gatwick
RH6 0PA
ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
15,665,682
16,278,801
Cost of sales
(12,071,347)
(12,467,735)
Gross profit
3,594,335
3,811,066
Distribution costs
(37,090)
(39,274)
Administrative expenses
(2,829,604)
(2,810,548)
Operating profit
4
727,641
961,244
Interest receivable and similar income
8
22,090
3,470
Interest payable and similar expenses
9
(141,962)
(103,406)
Profit before taxation
607,769
861,308
Tax on profit
10
(189,600)
(489,343)
Profit for the financial year
418,169
371,965
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Negative goodwill
12
(112,747)
(153,744)
Other intangible assets
12
78,317
78,317
Total intangible assets
(34,430)
(75,427)
Tangible assets
13
2,088,188
2,096,105
2,053,758
2,020,678
Current assets
Stocks
16
2,234,866
2,076,297
Debtors
17
1,369,369
1,870,749
Cash at bank and in hand
1,191,233
1,680,912
4,795,468
5,627,958
Creditors: amounts falling due within one year
18
(2,537,018)
(3,354,213)
Net current assets
2,258,450
2,273,745
Total assets less current liabilities
4,312,208
4,294,423
Creditors: amounts falling due after more than one year
19
(406,275)
(736,960)
Provisions for liabilities
Deferred tax liability
22
78,106
146,805
(78,106)
(146,805)
Net assets
3,827,827
3,410,658
Capital and reserves
Called up share capital
24
5,556
5,556
Revaluation reserve
431,231
421,093
Own shares
86,025
86,025
Profit and loss reserves
3,305,015
2,897,984
Total equity
3,827,827
3,410,658

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved and signed by the director and authorised for issue on 7 August 2024
07 August 2024
N Downing
Director
Company registration number 06360898 (England and Wales)
ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
14
1,425,656
1,425,656
Current assets
Debtors
17
472,852
205,000
Cash at bank and in hand
1,140,977
1,388,785
1,613,829
1,593,785
Creditors: amounts falling due within one year
18
(3,615)
(174)
Net current assets
1,610,214
1,593,611
Net assets
3,035,870
3,019,267
Capital and reserves
Called up share capital
24
5,556
5,556
Own shares
86,025
86,025
Profit and loss reserves
2,944,289
2,927,686
Total equity
3,035,870
3,019,267

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £17,603 (2022 - £4,941 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved and signed by the director and authorised for issue on 7 August 2024
07 August 2024
N Downing
Director
Company registration number 06360898 (England and Wales)
ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Revaluation reserve
Own shares
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
5,556
421,093
86,025
2,528,019
3,040,693
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
371,965
371,965
Dividends
11
-
-
-
(2,000)
(2,000)
Balance at 31 December 2022
5,556
421,093
86,025
2,897,984
3,410,658
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
418,169
418,169
Dividends
11
-
-
-
(1,000)
(1,000)
Transfers
-
-
-
(10,138)
(10,138)
Other movements
-
10,138
-
-
10,138
Balance at 31 December 2023
5,556
431,231
86,025
3,305,015
3,827,827
ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Own shares
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
5,556
86,025
2,924,745
3,016,326
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
4,941
4,941
Dividends
11
-
-
(2,000)
(2,000)
Balance at 31 December 2022
5,556
86,025
2,927,686
3,019,267
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
17,603
17,603
Dividends
11
-
-
(1,000)
(1,000)
Balance at 31 December 2023
5,556
86,025
2,944,289
3,035,870
ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
464,970
1,337,094
Interest paid
(141,962)
(103,406)
Income taxes paid
(247,937)
(468,916)
Net cash inflow from operating activities
75,071
764,772
Investing activities
Purchase of tangible fixed assets
(224,397)
(45,632)
Proceeds from disposal of tangible fixed assets
100,018
-
Repayment of loans
(62,750)
-
Interest received
22,090
3,470
Net cash used in investing activities
(165,039)
(42,162)
Financing activities
Repayment of bank loans
(349,723)
(348,372)
Payment of finance leases obligations
(48,988)
(83,484)
Dividends paid to equity shareholders
(1,000)
(2,000)
Net cash used in financing activities
(399,711)
(433,856)
Net (decrease)/increase in cash and cash equivalents
(489,679)
288,754
Cash and cash equivalents at beginning of year
1,680,912
1,392,158
Cash and cash equivalents at end of year
1,191,233
1,680,912
ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
29
(267,852)
127,636
Investing activities
Interest received
20,044
2,935
Dividends received
1,000
2,000
Net cash generated from investing activities
21,044
4,935
Financing activities
Dividends paid to equity shareholders
(1,000)
(2,000)
Net cash used in financing activities
(1,000)
(2,000)
Net (decrease)/increase in cash and cash equivalents
(247,808)
130,571
Cash and cash equivalents at beginning of year
1,388,785
1,258,214
Cash and cash equivalents at end of year
1,140,977
1,388,785
ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

Assembly Techniques (Holdings) Limited (“the Company”) is a limited company domiciled and incorporated in England and Wales. The registered office is Unit 5, Tameside Court, Fifth Avenue, Dukinfield, Cheshire, SK16 4PW.

 

The Group consists of Assembly Techniques (Holdings) Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared on the historical cost convention modified to include the revaluation of freehold properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Assembly Techniques (Holdings) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Development Costs
Asset not in use so no amortisation
1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings Freehold
2% per annum straight line
Leasehold improvements
Over the term of the lease
Plant and machinery
15% per annum reducing balance
Fixtures, fittings & equipment
15%/33 1/3% per annum reducing balance
Motor vehicles
25% per annum reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

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

 

Financial assets and liabilities are offset and 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred taxation is recognised in respect of all timing differences which have originated but not reversed at the balance sheet date. Timing differences are differences between taxable profits and the results as stated in the financial statements which arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised for tax purposes.

 

A net deferred tax asset is regarded as recoverable and therefore recognised only when it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of underlying timing differences can be deducted.

 

Deferred tax is not recognised when fixed assets are revalued unless by the balance sheet date there is a binding agreement to sell the revalued asset and the resulting gain or loss has been recognised in the financial statements. Neither is deferred tax recognised when fixed assets are sold and it is more likely than not that the taxable gain will be rolled over, being charged to tax only if and when the replacement assets are sold.

 

Deferred tax is measured at the average tax rates which are expected to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws which have been enacted or substantively enacted by the balance sheet date. Deferred tax is measured on a non-discounted basis.

ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.17
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is 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.

 

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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

Key estimates relate to the following:

 

Stock provisions to the value £45,064 (2022: £Nil) are calculated based on the lower of the cost and net realisable value of what is considered to be obsolete stock.

ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sales
15,665,682
16,278,801
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
11,170,460
11,841,247
Rest of the world
4,495,222
4,437,554
15,665,682
16,278,801
2023
2022
£
£
Other revenue
Interest income
22,090
3,470
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
1,582
13,164
Depreciation of owned tangible fixed assets
104,358
97,096
Depreciation of tangible fixed assets held under finance leases
44,899
62,279
Profit on disposal of tangible fixed assets
(16,961)
-
Amortisation of intangible assets
(40,997)
(40,997)
Operating lease charges
9,342
4,454
ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
-
-
Audit of the financial statements of the company's subsidiaries
14,000
12,000
For other services
Taxation compliance services
-
2,015
Services relating to corporate finance transactions
-
5,000
All other non-audit services
-
10,538
-
17,553
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
21
21
1
1
32
29
-
-
Total
53
50
1
1

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,060,232
1,989,009
-
0
-
0
Social security costs
217,264
204,806
-
-
Pension costs
65,034
47,653
-
0
-
0
2,342,530
2,241,468
-
0
-
0
7
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
232,100
265,935
ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Director's remuneration
(Continued)
- 24 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
232,100
265,935
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
22,005
3,470
Other interest income
85
-
Total income
22,090
3,470
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
22,005
3,470
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
135,399
94,538
Other finance costs:
Interest on finance leases and hire purchase contracts
6,563
8,868
Total finance costs
141,962
103,406
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
258,299
247,852
Adjustments in respect of prior periods
-
0
302,643
Total current tax
258,299
550,495
Deferred tax
Origination and reversal of timing differences
(68,699)
(61,152)
Total tax charge
189,600
489,343
ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 25 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
607,769
861,308
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
151,942
163,649
Tax effect of expenses that are not deductible in determining taxable profit
117,913
113,858
Tax effect of income not taxable in determining taxable profit
(190)
-
0
Tax effect of utilisation of tax losses not previously recognised
(367)
(558)
Unutilised tax losses carried forward
-
0
7
Adjustments in respect of prior years
-
0
302,642
Effect of change in corporation tax rate
(16,029)
-
Permanent capital allowances in excess of depreciation
(63,669)
(19,432)
Amortisation on assets not qualifying for tax allowances
-
0
(7,789)
Tax relief in respect of gift aid
-
(1,882)
Deferred tax movement
-
0
(61,152)
Taxation charge
189,600
489,343
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
1,000
2,000
12
Intangible fixed assets
Group
Negative goodwill
Development Costs
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
(819,947)
78,317
(741,630)
Amortisation and impairment
At 1 January 2023
(666,203)
-
0
(666,203)
Amortisation charged for the year
(40,997)
-
0
(40,997)
At 31 December 2023
(707,200)
-
0
(707,200)
ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Intangible fixed assets
(Continued)
- 26 -
Carrying amount
At 31 December 2023
(112,747)
78,317
(34,430)
At 31 December 2022
(153,744)
78,317
(75,427)
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
13
Tangible fixed assets
Group
Land and buildings Freehold
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 January 2023
1,175,000
532,575
436,524
484,345
429,026
3,057,470
Additions
-
0
640
-
0
3,799
219,958
224,397
Disposals
-
0
-
0
(41,519)
-
0
(179,660)
(221,179)
At 31 December 2023
1,175,000
533,215
395,005
488,144
469,324
3,060,688
Depreciation and impairment
At 1 January 2023
23,500
49,576
267,878
397,894
222,517
961,365
Depreciation charged in the year
23,500
10,290
25,048
25,748
64,671
149,257
Eliminated in respect of disposals
-
0
-
0
(39,388)
-
0
(98,734)
(138,122)
At 31 December 2023
47,000
59,866
253,538
423,642
188,454
972,500
Carrying amount
At 31 December 2023
1,128,000
473,349
141,467
64,502
280,870
2,088,188
At 31 December 2022
1,151,500
482,999
168,646
86,451
206,509
2,096,105
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Motor vehicles
120,181
186,837
-
0
-
0

The following freehold land and buildings are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Tangible fixed assets
(Continued)
- 27 -
2023
2022
£
£
Group
Cost
952,283
952,283
Accumulated depreciation
(255,514)
(236,468)
Carrying value
696,769
715,815
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
1,425,656
1,425,656
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
1,425,656
Carrying amount
At 31 December 2023
1,425,656
At 31 December 2022
1,425,656
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Assembly Techniques Limited
Unit 5, Tameside Court, Fifth Avenue, Dukinfield, Cheshire, SK16 4PW
Ordinary
100.00
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
2,234,866
2,076,297
-
0
-
0
ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,003,348
1,542,285
-
0
-
0
Amounts owed by group undertakings
-
-
472,852
205,000
Other debtors
128,750
100,000
-
0
-
0
Prepayments and accrued income
237,271
228,464
-
0
-
0
1,369,369
1,870,749
472,852
205,000
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
20
345,692
345,962
-
0
-
0
Obligations under finance leases
21
35,581
103,337
-
0
-
0
Trade creditors
1,189,935
1,733,506
-
0
-
0
Corporation tax payable
258,214
247,852
3,441
-
0
Other taxation and social security
145,259
89,611
-
-
Other creditors
316,260
597,472
174
174
Accruals and deferred income
246,077
236,473
-
0
-
0
2,537,018
3,354,213
3,615
174
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
325,563
675,016
-
0
-
0
Obligations under finance leases
21
80,712
61,944
-
0
-
0
406,275
736,960
-
-
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
671,255
1,020,978
-
0
-
0
Payable within one year
345,692
345,962
-
0
-
0
Payable after one year
325,563
675,016
-
0
-
0
ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Loans and overdrafts
(Continued)
- 29 -

There are unlimited cross guarantees between the company and its subsidiary. The bank loans are secured by a first legal charge over the property and its associated assets in the subsidiary.

21
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
35,581
103,337
-
0
-
0
In two to five years
80,712
61,944
-
0
-
0
116,293
165,281
-
-

It is the group's policy to lease motor vehicles under finance leases. The lease terms vary between 24 and 36 months. Interest rates are fixed at the contract date. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

22
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Group
£
£
ACAs
78,106
146,805
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
146,805
-
Credit to profit or loss
(68,699)
-
Liability at 31 December 2023
78,106
-

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
65,034
47,653

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of 1 each
5,001
5,001
5,001
5,001
Ordinary B shares of 1 each
555
555
555
555
5,556
5,556
5,556
5,556

All shares rank pari passu and have equal voting, dividend and capital distribution rights.

25
Financial commitments, guarantees and contingent liabilities

There are unlimited cross guarantees between the company and its subsidiary. The bank financing facilities in the subsidiary of £671,255 (2022: £1,020,978) is secured by a first legal charge over the property and associated assets in the subsidiary company.

26
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Director's loan account
-
(3,692)
93,440
(27,000)
62,748
(3,692)
93,440
(27,000)
62,748
27
Controlling party

The company is controlled by N P Downing on account of his majority shareholding.

ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
28
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
418,169
371,965
Adjustments for:
Taxation charged
189,600
489,343
Finance costs
141,962
103,406
Investment income
(22,090)
(3,470)
Gain on disposal of tangible fixed assets
(16,961)
-
Amortisation and impairment of intangible assets
(40,997)
(40,997)
Depreciation and impairment of tangible fixed assets
149,257
159,375
Movements in working capital:
Increase in stocks
(158,569)
(577,596)
Decrease in debtors
564,130
295,577
(Decrease)/increase in creditors
(759,531)
539,491
Cash generated from operations
464,970
1,337,094
29
Cash (absorbed by)/generated from operations - company
2023
2022
£
£
Profit for the year after tax
17,603
4,941
Adjustments for:
Taxation charged/(credited)
3,441
(39)
Investment income
(21,044)
(4,935)
Movements in working capital:
(Increase)/decrease in debtors
(267,852)
127,669
Cash (absorbed by)/generated from operations
(267,852)
127,636
30
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,680,912
(489,679)
1,191,233
Borrowings excluding overdrafts
(1,020,978)
349,723
(671,255)
Obligations under finance leases
(165,281)
48,988
(116,293)
494,653
(90,968)
403,685
ASSEMBLY TECHNIQUES (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
31
Analysis of changes in net funds - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,388,785
(247,808)
1,140,977
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