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Registered number: 02788050










AIR BEARINGS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

 
AIR BEARINGS LIMITED
 
 
COMPANY INFORMATION


Directors
M Llinas 
H Shimizu 
N Suzuki 
T Hayashi (resigned 1 September 2023)
T Watanabe (appointed 1 December 2023)




Registered number
02788050



Registered office
Unit A
Nimrod Way

East Dorset Trade Park

Ferndown

Dorset

BH21 7HZ




Independent auditor
Shaw Gibbs (Audit) Limited
Statutory Auditor

Wey Court West

Union Road

Farnham

Surrey

GU9 7PT





 
AIR BEARINGS LIMITED
 

CONTENTS



Page
Strategic Report
 
1
Directors' Report
 
2 - 3
Independent Auditor's Report
 
4 - 7
Statement of Comprehensive Income
 
8
Statement of Financial Position
 
9
Statement of Changes in Equity
 
10 - 11
Statement of Cash Flows
 
12
Notes to the Financial Statements
 
13 - 27


 
AIR BEARINGS LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

We expected a very positive year 2023/24 by the end of March 2024. We really had an exceptional first quarter that followed the pace of the half of 2022/23, but suddenly there was a spectacular drop in the worldwide market.  In my report from previous year, I indicated that a large part of the success in our sales was due to a substantial increase in purchases from ABL by our parent company Via Mechanics…well this year because the global market has had a sudden and spectacular drop, our company experienced a consequent negative impact because the main global customers requested a considerable delay in deliveries, a situation that still continues today.
This cause of lower orders in the global market was mainly due to too high stock accumulated in the global market. I believe that the production volume was exceeded (perhaps the demand for 2023/24 was overestimated) during the previous year 2022/23 and consequently an excessive stock was created in the market; which is why orders were postponed. It is believed that the market in general terms will increase again to normal levels at the beginning of 2025.
What happened meant that it was not all possible for us to achieve the expected sales figures for the year 2023/24, the actual sales for the year was GBP5.5M lower than budget.  This was 29% lower than budget.  It was totally unexpected.
In any case, not everything has been negative during the last 12 months as ABL has strengthened itself technically, carrying out investment in a new plant at Holton Heath (Poole UK) and at the same time investing GBP3.0M in new high-tech machinery, with which, apart from guaranteeing solid production for the coming years, will offer us an increase in our manufacturing capacity for Spindles and of course spare parts.
For the coming year 2024/25 we have presented a very prudent increase of 2% in Sales versus the previous year and also a sold increase in Operating Income of 8% of net sales.
ABL's great asset for this current year will undoubtedly be to complete several development programs creating new generations of Spindles which will integrate high speed which is highly expected by our customers.
Our R&D department is also working with other development like the ECO-Spindles and of course other Spindles all of which having high speed.
All those projects will be ready to be introduced in the market during the coming financial year.
These are our main objective to carry out in the new year.
 


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



................................................
M Llinas
Director

Date: 25 July 2024

Page 1

 
AIR BEARINGS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The directors present their report and the financial statements for the year ended 31 March 2024.

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 activities of the company during the year was that of the design, development and manufacture of air bearings and the service and maintenance of laser machines.

Results and dividends

The loss for the year, after taxation, amounted to £324,899 (2023 - profit £3,854,875).

A dividend has not been declared.

Directors

The directors who served during the year were:

M Llinas 
H Shimizu 
N Suzuki 
T Hayashi (resigned 1 September 2023)
T Watanabe (appointed 1 December 2023)

Future developments

There are no significant future developments in the business.  

Page 2

 
AIR BEARINGS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Branches outside the United Kingdom

The company has a branch in Germany who provide machine servicing to other group entities.  

Disclosure of information to auditor

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 auditor is 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 auditor is aware of that information.

Post balance sheet events

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

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







................................................
M Llinas
Director

Date: 25 July 2024

Page 3

 
AIR BEARINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AIR BEARINGS LIMITED
 

Opinion


We have audited the financial statements of Air Bearings Limited (the 'Company') for the year ended 31 March 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, 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 March 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's 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 4

 
AIR BEARINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AIR BEARINGS LIMITED (CONTINUED)


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 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 2, 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 5

 
AIR BEARINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AIR BEARINGS LIMITED (CONTINUED)


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 gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation.   Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of 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 Auditor's Report.


Page 6

 
AIR BEARINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AIR BEARINGS 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 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.





Mark Dickinson FCA (Senior Statutory Auditor)
for and on behalf of
Shaw Gibbs (Audit) Limited
Statutory Auditor
Wey Court West
Union Road
Farnham
Surrey
GU9 7PT

7 August 2024
Page 7

 
AIR BEARINGS LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£
£

  

Turnover
 4 
13,410,247
16,320,340

Cost of sales
  
(10,488,864)
(11,491,839)

Gross profit
  
2,921,383
4,828,501

Administrative expenses
  
(1,813,644)
(1,645,109)

Operating profit
 5 
1,107,739
3,183,392

Interest receivable and similar income
 9 
25,132
20,923

Profit before tax
  
1,132,871
3,204,315

Tax on profit
 10 
(1,457,770)
650,560

(Loss)/profit for the financial year
  
(324,899)
3,854,875

Other comprehensive income for the year
  

Currency translation differences
  
(44,405)
61,898

Other comprehensive income for the year
  
(44,405)
61,898

Total comprehensive income for the year
  
(369,304)
3,916,773

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

The notes on pages 13 to 27 form part of these financial statements.

Page 8

 
AIR BEARINGS LIMITED
REGISTERED NUMBER: 02788050

STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 11 
1
1

Tangible assets
 12 
6,124,524
3,177,725

  
6,124,525
3,177,726

Current assets
  

Stocks
 13 
4,519,098
3,882,904

Debtors: amounts falling due within one year
 14 
4,781,162
8,550,485

Cash at bank and in hand
  
396,667
1,000,810

  
9,696,927
13,434,199

Creditors: amounts falling due within one year
 15 
(1,550,695)
(1,971,864)

Net current assets
  
 
 
8,146,232
 
 
11,462,335

Total assets less current liabilities
  
14,270,757
14,640,061

  

Net assets
  
14,270,757
14,640,061


Capital and reserves
  

Called up share capital 
 17 
250,000
250,000

Share premium account
  
1,086,842
1,086,842

Capital redemption reserve
  
13,158
13,158

Foreign exchange reserve
  
23,080
67,485

Profit and loss account
  
12,897,677
13,222,576

  
14,270,757
14,640,061


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 25 July 2024.






................................................
M Llinas
Director

The notes on pages 13 to 27 form part of these financial statements.

Page 9

 

 
AIR BEARINGS LIMITED


 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024



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


£
£
£
£
£
£


At 1 April 2023
250,000
1,086,842
13,158
67,485
13,222,576
14,640,061



Comprehensive income for the year


Loss for the year

-
-
-
-
(324,899)
(324,899)


Currency translation differences
-
-
-
(44,405)
-
(44,405)



Other comprehensive income for the year
-
-
-
(44,405)
-
(44,405)



Total comprehensive income for the year
-
-
-
(44,405)
(324,899)
(369,304)



At 31 March 2024
250,000
1,086,842
13,158
23,080
12,897,677
14,270,757



The notes on pages 13 to 27 form part of these financial statements.

Page 10

 

 
AIR BEARINGS LIMITED


 

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



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


£
£
£
£
£
£


At 1 April 2022
250,000
1,086,842
13,158
5,587
9,367,701
10,723,288



Comprehensive income for the year


Profit for the year

-
-
-
-
3,854,875
3,854,875


Currency translation differences
-
-
-
61,898
-
61,898



Other comprehensive income for the year
-
-
-
61,898
-
61,898



Total comprehensive income for the year
-
-
-
61,898
3,854,875
3,916,773



At 31 March 2023
250,000
1,086,842
13,158
67,485
13,222,576
14,640,061



The notes on pages 13 to 27 form part of these financial statements.

Page 11

 
AIR BEARINGS LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
(324,899)
3,854,875

Adjustments for:

Depreciation of tangible assets
506,908
436,586

Loss on disposal of tangible assets
20,222
23,733

Interest received
(25,132)
(20,923)

Taxation charge
1,457,770
(650,560)

(Increase) in stocks
(636,195)
(1,311,325)

Decrease/(increase) in debtors
807,221
(892,193)

Decrease/(increase) in amounts owed by groups
1,450,000
(450,000)

(Decrease)/increase in creditors
(421,168)
640,173

Increase/(decrease) in provisions
-
(38,000)

Corporation tax received/(paid)
54,332
(118,325)

Foreign currency movement
(44,405)
61,898

Net cash generated from operating activities

2,844,654
1,535,939


Cash flows from investing activities

Purchase of tangible fixed assets
(3,507,430)
(898,726)

Sale of tangible fixed assets
33,501
574

Interest received
25,132
20,923

Net cash from investing activities

(3,448,797)
(877,229)


Net (decrease)/increase in cash and cash equivalents
(604,143)
658,710

Cash and cash equivalents at beginning of year
1,000,810
342,100

Cash and cash equivalents at the end of year
396,667
1,000,810


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
396,667
1,000,810

396,667
1,000,810


The notes on pages 13 to 27 form part of these financial statements.

Page 12

 
AIR BEARINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

Air Bearings Limited (registered number 02788050) is a limited liability company incorporated in England. The Registered Office is disclosed in the Company Information page and the principal activity is disclosed in the Directors Report.

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

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.

All other foreign exchange gains and losses are presented in the Income statement within 'administration expenses'.

Page 13

 
AIR BEARINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.3

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

 
2.4

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.5

Finance costs

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

Page 14

 
AIR BEARINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.6

Pensions

Defined contribution pension plan

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

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

 
2.7

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.8

Tangible fixed assets

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

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Page 15

 
AIR BEARINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.8
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Plant and machinery
-
12 years straight line
Motor vehicles
-
8 years straight line
Fixtures and fittings
-
10 years straight line
Computer equipment
-
3 years straight line
Laboratory equipment
-
10 years straight line

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.

 
2.9

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 reporting 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.

 
2.10

Debtors

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

 
2.11

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.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.12

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.

Page 16

 
AIR BEARINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.13

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.

 
2.14

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.

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.

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.

Page 17

 
AIR BEARINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, which are described in note 2, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources.  The estimates and underlying assumptions are based upon historical experience and other factors that are considered to be relevant.  Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.  Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. 
There are no sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements.


4.


Turnover

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


2024
2023
£
£

Design, development and manufacture of air bearings
11,450,138
14,665,063

The service and maintenance of laser machines
1,960,109
1,655,276

13,410,247
16,320,339


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
44,043
178,848

Rest of Europe
1,737,584
1,316,265

Rest of the world
11,628,620
14,825,226

13,410,247
16,320,339



5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Exchange differences
(41,150)
45,651

Page 18

 
AIR BEARINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

6.


Auditor's remuneration

2024
2023
£
£

Fees payable to the Company's auditors and its associates for the audit of the Company's annual financial statements
21,250
27,100


Fees payable to the Company's auditor and its associates in respect of:


All other services
8,190
6,269

8,190
6,269


7.


Employees

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


2024
2023
£
£

Wages and salaries
4,105,156
4,135,643

Social security costs
451,381
469,456

Cost of defined contribution scheme
243,264
216,317

4,799,801
4,821,416


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


        2024
        2023
            No.
            No.







Direct staff
74
75



Indirect staff
24
22



Directors
1
1

99
98

Page 19

 
AIR BEARINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
180,923
179,433

Company contributions to defined contribution pension schemes
31,138
25,536

212,061
204,969


During the year retirement benefits were accruing to 1 director (2023 - 1) in respect of defined contribution pension schemes.


9.


Interest receivable

2024
2023
£
£


Other interest receivable
25,132
20,923

25,132
20,923


10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
154,436
112,774


154,436
112,774


Total current tax
154,436
112,774

Deferred tax


Origination and reversal of timing differences
-
135,731

Reversal of/(recognition) of taxable losses
1,303,334
(899,065)

Total deferred tax
1,303,334
(763,334)


Taxation on profit/(loss) on ordinary activities
1,457,770
(650,560)
Page 20

 
AIR BEARINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
1,132,870
3,204,315


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
283,218
608,820

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
3,000
426

Capital allowances for year in excess of depreciation
(674,387)
(5,202)

Utilisation of tax losses
-
(383,185)

Non-taxable income
-
(77,542)

Changes in provisions leading to an increase (decrease) in the tax charge
-
(7,586)

Release of witholding tax
(5,503)
-

Unrelieved tax losses carried forward
393,672
-

Tax due on overseas operations
154,436
112,774

Reversal of/(recognition) of deferred tax asset
1,303,334
(899,065)

Total tax charge for the year
1,457,770
(650,560)


Factors that may affect future tax charges

The company has trading losses carried forward of approximately £9,700,000 available to offset against future profits from the same trade.  A deferred tax asset has not been recognised due to the uncertainty of the timing of future taxable profits. 

Page 21

 
AIR BEARINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

11.


Intangible assets




Goodwill

£



Cost


At 1 April 2023
1



At 31 March 2024

1






Net book value



At 31 March 2024
1



At 31 March 2023
1



Page 22

 
AIR BEARINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

12.


Tangible fixed assets





Plant and machinery
Motor vehicles
Fixtures and fittings
Computer equipment
Other fixed assets

£
£
£
£
£



Cost or valuation


At 1 April 2023
6,589,929
25,793
667,796
212,142
70,018


Additions
3,027,836
-
434,105
45,489
-


Disposals
(396,524)
-
(72,179)
(61,166)
-


Transfers between classes
214,694
2,971
(208,952)
-
(8,713)



At 31 March 2024

9,435,935
28,764
820,770
196,465
61,305



Depreciation


At 1 April 2023
3,883,078
12,450
236,600
186,268
69,557


Charge for the year on owned assets
413,635
2,296
68,489
22,376
112


Disposals
(392,324)
-
(22,327)
(61,495)
-


Transfers between classes
48,304
616
(40,556)
-
(8,364)



At 31 March 2024

3,952,693
15,362
242,206
147,149
61,305



Net book value



At 31 March 2024
5,483,242
13,402
578,564
49,316
-



At 31 March 2023
2,706,851
13,343
431,196
25,874
461
Page 23

 
AIR BEARINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

           12.Tangible fixed assets (continued)


Total

£



Cost or valuation


At 1 April 2023
7,565,678


Additions
3,507,430


Disposals
(529,869)


Transfers between classes
-



At 31 March 2024

10,543,239



Depreciation


At 1 April 2023
4,387,953


Charge for the year on owned assets
506,908


Disposals
(476,146)


Transfers between classes
-



At 31 March 2024

4,418,715



Net book value



At 31 March 2024
6,124,524



At 31 March 2023
3,177,725


13.


Stocks

2024
2023
£
£

Raw materials and consumables
563,339
697,141

Work in progress (goods to be sold)
3,388,178
2,769,174

Finished goods and goods for resale
567,581
416,589

4,519,098
3,882,904


Page 24

 
AIR BEARINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

14.


Debtors

2024
2023
£
£


Trade debtors
1,892,036
2,771,719

Amounts owed by group undertakings
2,200,000
3,650,000

Other debtors
242,553
451,325

Prepayments and accrued income
446,573
374,107

Deferred taxation
-
1,303,334

4,781,162
8,550,485



15.


Creditors: Amounts falling due within one year

2024
2023
£
£

Payments received on account
137,764
198,023

Trade creditors
899,476
1,280,493

Other taxation and social security
97,469
106,050

Other creditors
116,823
70,395

Accruals and deferred income
299,163
316,903

1,550,695
1,971,864


Page 25

 
AIR BEARINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

16.


Deferred taxation




2024


£






At beginning of year
1,303,334


Charged to profit or loss
(1,303,334)



At end of year
-

The deferred tax asset is made up as follows:

2024
2023
£
£


Accelerated capital allowances
1,421,746
(725,731)

Tax losses carried forward
(1,421,746)
2,029,065

-
1,303,334





17.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



250,000 (2023 - 250,000) Ordinary shares of £1.00 each
250,000
250,000



18.


Share-based payments

During the 2022 year end Vista Machining Technologies Co Ltd, the parent company of Via Mechanics Limited, set up a share option scheme for executive employee’s of it’s 100% owned subsidiary undertakings (direct and in-direct).  These share options have a vesting period of 2 years and an exercise period of 8 years.  
 
During 2024 no (2023 - Nil) options were granted.  6,840 options are outstanding at the year end.  The fair value of the services being supplied during the vesting period has been calculated based upon the market value of the shares at the grant date.

Page 26

 
AIR BEARINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

19.


Capital commitments


At 31 March 2024 the Company had capital commitments as follows:

2024
2023
£
£


Contracted for but not provided in these financial statements
-
43,881

-
43,881


20.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £243,264 (2023: £216,317). Contributions totalling £nil (2023: £nil) were payable to the fund at the reporting date.


21.


Related party transactions

The company has taken advantage of the exemption conferred by section 33 in Financial Reporting Standard 102 "Related party disclosures" not to disclose transactions with wholly owned members of the group headed by Via Mechanics Limited.
The key management personnel are the directors.


22.


Controlling party

The immediate parent company is Via Mechanics Limited, 9-32 Tamura-cho, Atsugi-shi, Kanagawa-ken 243-0016, Japan, a company incorporated in Japan.  
There is no ultimate controlling party.

 
Page 27