Company registration number 06493063 (England and Wales)
TECHMOTION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
TECHMOTION LIMITED
COMPANY INFORMATION
Directors
Richard John Hindle
David Hindle
Peter Bingham
Company number
06493063
Registered office
Hapco Works
Caledonia Street
Bradford
West Yorkshire
BD5 0EL
Auditor
Duncan & Toplis Audit Limited
14 London Road
Newark
Nottinghamshire
NG24 1TW
TECHMOTION LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 37
TECHMOTION LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 1 -

The directors present the strategic report for the year ended 30 November 2023.

Review of the business

Despite continued difficult trading conditions, the group recorded a profit before tax of £1,764,554. The directors have made efforts to secure future turnover increases by looking to make customer gains.

 

The directors believe that the company enjoys a good reputation within the sectors it operates.

 

The company takes its environmental and pollution responsibilities seriously and is continually working to reduce its energy usage.

 

The business works very hard to provide customers with ever demanding needs in these difficult times with our sales in the UK remaining on a level and our overseas operation increasing. We see this continuing for the foreseeable, but still face challenges with material, shipping and staffing levels being our main obstacles.

The Retirement Benefit Scheme has had the benefit of a revaluation of the assets and liabilities which impact on the ongoing business risk.

Principal risks and uncertainties

The company is affected by several factors, the principal ones are:

 

The company is exposed to the risk of negative developments in the financial markets and the sectors in which we operate, either directly or through the impact on the company’s bankers, suppliers or customers.

 

The company operates in a competitive market and failure to compete effectively in terms of price, product specification and quality can have an adverse effect on demand and margins.

 

The company has in place an organisational structure with clearly defined lines of responsibility and delegation of authority. There are established policies and procedures for setting of strategies; financial, information & reporting, assessment of risk and monitoring performance.

 

Management and staff work closely with customers and suppliers to operate as effectively and efficiently as possible, whilst maintaining long-term working relationships and good lines of communication.

 

Key performance indicators

The group's key financial and other performance indicators during the year were as follows:

 

 

 

Unit

 

2023

 

2022

Turnover

 

£

 

7,480,452

 

5,860,536

Gross Profit

 

£

 

4,587,871

 

3,359,521

Profit before tax

 

£

 

1,764,554

 

981,948

On behalf of the board

David Hindle
Director
16 August 2024
TECHMOTION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 2 -

The directors present their annual report and financial statements for the year ended 30 November 2023.

Principal activities

The principal activity of the group continued to be that of general engineers, engine re-manufacturers, distributors of engineering products and manufacturers of industrial products. Techmotion Limited provides management services to the group.

Directors

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

Richard John Hindle
David Hindle
Peter Bingham
Results and dividends

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

Ordinary dividends were paid amounting to £417,007. The directors do not recommend payment of a further dividend.

Financial instruments

The group's principal financial instruments comprise bank balances, trade debtors, trade creditors, loans to the group and lease purchase agreements. The main purpose of these instruments is to raise funds for the group's operations and finance the company's operations.

 

Due to the nature of the financial instruments used by the group there is no exposure to price risk. The group's approach to managing other risks applicable to the financial instruments is shown below.

Liquidity risk

In respect of loans, the liquidity risk is managed by virtue of the flexible terms inherent within these facilities.

 

Trade creditors and amounts owed to related undertakings all arise from trading transactions and the liquidity risk is managed from income generation and the use of the group's borrowing facilities.

Credit risk

Trade debtors, credit and cash flow risks are managed by policies concerning the credit offered to customers and the monitoring of amounts outstanding in terms of time and credit limits.

Future developments

The directors anticipate that the group will continue to trade profitably.

Auditor

Duncan & Toplis Audit Limited were appointed as auditor during the year and are deemed to be reappointed under section 487(2) of the Companies Act 2006.

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.

TECHMOTION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 3 -
On behalf of the board
David Hindle
Director
16 August 2024
TECHMOTION LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 4 -

The directors are responsible for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are 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. They are 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.

TECHMOTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TECHMOTION LIMITED
- 5 -
Opinion

We have audited the financial statements of Techmotion Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2023 which comprise the group profit and loss account, 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 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

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

 

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

Other information

The 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 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:

TECHMOTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TECHMOTION 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 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have 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 have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the group and parent company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements such as depreciation of tangible fixed assets, as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in the preparation of the financial statements. We carried out detailed substantive tests on accounting estimates, including reviewing the methods used by management to make those estimates, re-performing the calculation, and reviewing the outcome of prior year estimates.

TECHMOTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TECHMOTION LIMITED
- 7 -

Secondly, the group and parent company is subject to other laws and regulations where the consequence for noncompliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations and Employment laws.

 

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included a review of company minutes, review of legal expenses and health and safety expenses and a review of provisions. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

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. The further removed noncompliance with laws and regulations 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. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of 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.

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.

Rachel Rudkin FCCA (Senior Statutory Auditor)
For and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor
14 London Road
Newark
Nottinghamshire
NG24 1TW
19 August 2024
TECHMOTION LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
7,480,452
5,860,536
Cost of sales
(2,892,581)
(2,501,015)
Gross profit
4,587,871
3,359,521
Distribution costs
(214,832)
(174,006)
Administrative expenses
(2,853,963)
(2,442,310)
Other operating income
299,253
323,410
Operating profit
4
1,818,329
1,066,615
Interest receivable and similar income
8
8,000
84
Interest payable and similar expenses
9
(61,775)
(84,751)
Profit before taxation
1,764,554
981,948
Tax on profit
10
(311,847)
195,403
Profit for the financial year
1,452,707
1,177,351
Profit for the financial year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

TECHMOTION LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 9 -
2023
2022
£
£
Profit for the year
1,452,707
1,177,351
Other comprehensive income
Actuarial gain on defined benefit pension schemes
570,000
2,360,000
Currency translation gain/(loss) taken to retained earnings
-
0
(7,179)
Tax relating to other comprehensive income
(142,500)
(494,190)
Other comprehensive income for the year
427,500
1,858,631
Total comprehensive income for the year
1,880,207
3,035,982
Total comprehensive income for the year is all attributable to the owners of the parent company.
TECHMOTION LIMITED
GROUP BALANCE SHEET
AS AT 30 NOVEMBER 2023
30 November 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
285,230
329,434
Tangible assets
13
4,578,428
4,456,798
4,863,658
4,786,232
Current assets
Stocks
16
524,577
418,200
Debtors
17
3,074,189
2,165,838
Cash at bank and in hand
115,341
348,911
3,714,107
2,932,949
Creditors: amounts falling due within one year
18
(2,654,448)
(2,509,966)
Net current assets
1,059,659
422,983
Total assets less current liabilities
5,923,317
5,209,215
Creditors: amounts falling due after more than one year
19
(336,517)
(604,075)
Provisions for liabilities
Deferred tax liability
23
328,903
232,443
(328,903)
(232,443)
Net assets excluding pension surplus
5,257,897
4,372,697
Defined benefit pension surplus
24
760,000
182,000
Net assets
6,017,897
4,554,697
Capital and reserves
Called up share capital
25
10,000
10,000
Revaluation reserve
80,202
81,012
Capital redemption reserve
4,000
4,000
Profit and loss reserves
5,923,695
4,459,685
Total equity
6,017,897
4,554,697
The financial statements were approved by the board of directors and authorised for issue on 16 August 2024 and are signed on its behalf by:
16 August 2024
David Hindle
Director
Company registration number 06493063 (England and Wales)
TECHMOTION LIMITED
COMPANY BALANCE SHEET
AS AT 30 NOVEMBER 2023
30 November 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
2,529,685
2,557,180
Investments
14
4,931,919
4,931,919
7,461,604
7,489,099
Current assets
Debtors
17
1,141
1,223
Cash at bank and in hand
1
392
1,142
1,615
Creditors: amounts falling due within one year
18
(6,888,861)
(6,501,414)
Net current liabilities
(6,887,719)
(6,499,799)
Total assets less current liabilities
573,885
989,300
Creditors: amounts falling due after more than one year
19
(279,743)
(511,123)
Provisions for liabilities
Deferred tax liability
23
143,000
135,068
(143,000)
(135,068)
Net assets
151,142
343,109
Capital and reserves
Called up share capital
25
10,000
10,000
Capital redemption reserve
4,000
4,000
Profit and loss reserves
137,142
329,109
Total equity
151,142
343,109

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 £225,040 (2022 - £609,877 profit).

The financial statements were approved by the board of directors and authorised for issue on 16 August 2024 and are signed on its behalf by:
16 August 2024
David Hindle
Director
Company registration number 06493063 (England and Wales)
TECHMOTION LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 12 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 December 2021
10,000
81,830
4,000
1,742,495
1,838,325
Year ended 30 November 2022:
Profit for the year
-
-
-
1,177,351
1,177,351
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
-
2,360,000
2,360,000
Currency translation differences on overseas subsidiaries
-
-
-
(7,179)
(7,179)
Tax relating to other comprehensive income
-
-
0
-
(494,190)
(494,190)
Total comprehensive income for the year
-
-
-
3,035,982
3,035,982
Dividends
11
-
-
-
(319,610)
(319,610)
Transfers
-
(818)
-
818
-
Balance at 30 November 2022
10,000
81,012
4,000
4,459,685
4,554,697
Year ended 30 November 2023:
Profit for the year
-
-
-
1,452,707
1,452,707
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
-
570,000
570,000
Tax relating to other comprehensive income
-
-
0
-
(142,500)
(142,500)
Total comprehensive income for the year
-
-
-
1,880,207
1,880,207
Dividends
11
-
-
-
(417,007)
(417,007)
Transfers
-
(810)
-
810
-
Balance at 30 November 2023
10,000
80,202
4,000
5,923,695
6,017,897
TECHMOTION LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 13 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 December 2021
10,000
4,000
38,842
52,842
Year ended 30 November 2022:
Profit and total comprehensive income for the year
-
-
609,877
609,877
Dividends
11
-
-
(319,610)
(319,610)
Balance at 30 November 2022
10,000
4,000
329,109
343,109
Year ended 30 November 2023:
Profit and total comprehensive income for the year
-
-
225,040
225,040
Dividends
11
-
-
(417,007)
(417,007)
Balance at 30 November 2023
10,000
4,000
137,142
151,142
TECHMOTION LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
982,284
709,547
Interest paid
(61,775)
(84,751)
Income taxes paid
(287,549)
(63,356)
Net cash inflow from operating activities
632,960
561,440
Investing activities
Purchase of tangible fixed assets
(453,775)
(392,461)
Proceeds from disposal of tangible fixed assets
2,779
722,637
Interest received
-
84
Net cash (used in)/generated from investing activities
(450,996)
330,260
Financing activities
Proceeds from new bank loans
333,641
-
Repayment of bank loans
(216,156)
(215,814)
Payment of finance leases obligations
(33,392)
(30,606)
Dividends paid to equity shareholders
(417,007)
(319,610)
Net cash used in financing activities
(332,914)
(566,030)
Net (decrease)/increase in cash and cash equivalents
(150,950)
325,670
Cash and cash equivalents at beginning of year
266,291
(52,200)
Effect of foreign exchange rates
-
0
(7,179)
Cash and cash equivalents at end of year
115,341
266,291
Relating to:
Cash at bank and in hand
115,341
348,911
Bank overdrafts included in creditors payable within one year
-
(82,620)
TECHMOTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 15 -
1
Accounting policies
Company information

Techmotion Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Hapco Works, Caledonia Street, Bradford, West Yorkshire, BD5 0EL.

 

The group consists of Techmotion 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 under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

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.

The consolidated financial statements incorporate those of Techmotion Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

The consolidated financial statements for the company and it's UK subsidiary, Hindle Group Limited, are made up to 30 November 2023. The results for the Chinese subsidiary, Hindle Gears (China) Limited, 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.

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.

TECHMOTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 16 -

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.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue 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

Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful economic life. It is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

 

If a subsidiary, associate or business is subsequently sold or closed, any goodwill arising on acquisition that was written off directly to reserves or that has not been amortised through the profit and loss account is taken into account in determining the profit or loss on sale or closure.

 

Amortisation is provided on intangible fixed assets so as to write off the cost, less any estimated residual value, over their expected useful economic life of 20 years on a straight line basis.

1.6
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:

Freehold land and buildings
over 100 years straight line
Plant and machinery
over 5-10 years straight line
Fixtures, fittings & equipment
over 5-10 years straight line
TECHMOTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 17 -

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.

1.7
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.

1.8
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.

TECHMOTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 18 -

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.

1.9
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.

1.10
Cash at bank and in hand

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.

1.11
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.

TECHMOTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 19 -
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.

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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

TECHMOTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.12
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.

1.13
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

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 tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

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.

TECHMOTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The pension costs charged against profits are based on actuarial methods and assumptions designed to spread the anticipated pension costs over the service lives of the employees in the scheme, so as to ensure that the regular pension cost represents a substantially level percentage of the current and expected future pensionable payroll. Variations from regular cost are spread over the average remaining services lives of current employees in the scheme. The scheme was made paid up on 31 October 2003 and no further benefits will accrue for employees in the scheme.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

 

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

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
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Grants received in relation to the government Coronavirus Job Retention Scheme (Furlough) have been recognised within other operating income. The grant is accounted for on the accruals basis once the related payroll return has been submitted.

TECHMOTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 22 -
1.19
Foreign exchange

Company

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.

 

Group

The financial statements of overseas subsidiary undertakings are translated at the rate ruling at the balance sheet date. The exchange differences arising on the retranslation of opening net assets is taken directly to reserves. All other translation differences are taken to the profit and loss account with the exception of differences on foreign currency borrowings to the extent that they are used to finance or provide a hedge against group equity investments in foreign enterprises, which are taken to reserves together with the exchange difference on the net investment in these enterprises. Tax charges and credits attributable to exchange differences on those borrowings are also taken to reserves.

 

2
Judgements and key sources of estimation uncertainty

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

 

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 sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stock provisioning

The group is that of general engineers, engine component remanufactures distributors of engineering products and manufacturer of industrial products. As a result, it is necessary to consider the recoverability of the cost and associated provision required. When calculating the stock provision, management consider the nature and condition of the stock, as well as applying assumptions around anticipated usability and saleability of finished goods.

3
Turnover and other revenue

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

2023
2022
£
£
Turnover analysed by class of business
Manufacture
7,480,452
5,860,536
TECHMOTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
3
Turnover and other revenue
(Continued)
- 23 -
2023
2022
£
£
Turnover analysed by geographical market
Sales - UK
5,492,989
4,046,569
Sales - Europe
607,186
337,660
Sales - Rest of world
1,380,277
1,476,307
7,480,452
5,860,536
2023
2022
£
£
Other revenue
Interest income
8,000
84
Grants received
-
628
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(37,852)
(14,874)
Government grants
-
(628)
Depreciation of owned tangible fixed assets
300,218
301,826
Depreciation of tangible fixed assets held under finance leases
28,838
28,838
Loss/(profit) on disposal of tangible fixed assets
310
(136,666)
Amortisation of intangible assets
44,204
44,204
Operating lease charges
86,930
122,893
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
6,000
4,880
Audit of the financial statements of the company's subsidiaries
11,000
8,800
17,000
13,680
TECHMOTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 24 -
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
Production
38
51
-
-
Other departments
17
19
-
-
Total
55
70
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,752,760
1,628,716
-
0
-
0
Social security costs
120,179
116,831
-
-
Pension costs
184,435
167,667
-
0
-
0
2,057,374
1,913,214
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
37,332
34,314
Company pension contributions to defined contribution schemes
20,338
18,740
57,670
53,054

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 3).

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
-
0
84
Other interest income
8,000
-
Total income
8,000
84
TECHMOTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
8
Interest receivable and similar income
(Continued)
- 25 -
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
-
84
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
56,533
42,797
Other finance costs:
Interest on finance leases and hire purchase contracts
5,242
7,954
Other interest
-
34,000
Total finance costs
61,775
84,751
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
357,906
58,708
Adjustments in respect of prior periods
(19)
(193)
Total current tax
357,887
58,515
Deferred tax
Origination and reversal of timing differences
2,851
(201,668)
Other adjustments
(48,891)
(52,250)
Total deferred tax
(46,040)
(253,918)
Total tax charge/(credit)
311,847
(195,403)
TECHMOTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
10
Taxation
(Continued)
- 26 -

The actual charge/(credit) 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
1,764,554
981,948
Expected tax charge based on the standard rate of corporation tax in the UK of 23.01% (2022: 19.00%)
406,043
186,570
Tax effect of expenses that are not deductible in determining taxable profit
544
(119,520)
Gains not taxable
(531)
-
0
Group relief
-
0
51
Other permanent differences
6,327
(20,094)
Under/(over) provided in prior years
(19)
(193)
Deferred tax adjustments in respect of prior years
1,000
(3,001)
Deferred tax
(14,130)
(186,509)
Chargeable gains/(losses)
6,217
(52,707)
Other
(93,604)
-
0
Taxation charge/(credit)
311,847
(195,403)

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2023
2022
£
£
Deferred tax arising on:
Actuarial differences recognised as other comprehensive income
142,500
494,190
11
Dividends and distributions
2023
2022
£
£
Final paid
417,007
319,610
TECHMOTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 27 -
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 December 2022 and 30 November 2023
798,582
Amortisation and impairment
At 1 December 2022
469,148
Amortisation charged for the year
44,204
At 30 November 2023
513,352
Carrying amount
At 30 November 2023
285,230
At 30 November 2022
329,434
The company had no intangible fixed assets at 30 November 2023 or 30 November 2022.
13
Tangible fixed assets
Group
Freehold land and buildings
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 1 December 2022
2,749,657
3,448,544
576,459
6,774,660
Additions
-
0
378,565
75,210
453,775
Disposals
-
0
(30,895)
-
0
(30,895)
At 30 November 2023
2,749,657
3,796,214
651,669
7,197,540
Depreciation and impairment
At 1 December 2022
192,477
1,777,733
347,652
2,317,862
Depreciation charged in the year
27,495
270,325
31,236
329,056
Eliminated in respect of disposals
-
0
(27,806)
-
0
(27,806)
At 30 November 2023
219,972
2,020,252
378,888
2,619,112
Carrying amount
At 30 November 2023
2,529,685
1,775,962
272,781
4,578,428
At 30 November 2022
2,557,180
1,670,811
228,807
4,456,798
TECHMOTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
13
Tangible fixed assets
(Continued)
- 28 -
Company
Freehold land and buildings
£
Cost
At 1 December 2022 and 30 November 2023
2,749,657
Depreciation and impairment
At 1 December 2022
192,477
Depreciation charged in the year
27,495
At 30 November 2023
219,972
Carrying amount
At 30 November 2023
2,529,685
At 30 November 2022
2,557,180

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
£
£
£
£
Plant and machinery
116,016
144,854
-
0
-
0
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
4,931,919
4,931,919
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 December 2022 and 30 November 2023
4,931,919
Carrying amount
At 30 November 2023
4,931,919
At 30 November 2022
4,931,919
TECHMOTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 29 -
15
Subsidiaries

Details of the company's subsidiaries at 30 November 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Hindle Gears (China) Co.Limited
China
General engineers
Ordinary
-
100.00
Hindle Group Limited
UK
General engineers
Ordinary
100.00
-
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
59,118
104,814
-
-
Work in progress
98,551
71,633
-
-
Finished goods and goods for resale
366,908
241,753
-
0
-
0
524,577
418,200
-
-
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,297,264
1,543,675
1,141
1,223
Other debtors
656,800
531,615
-
0
-
0
Prepayments and accrued income
120,125
90,548
-
0
-
0
3,074,189
2,165,838
1,141
1,223
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
570,795
304,550
233,459
221,930
Obligations under finance leases
21
36,178
33,392
-
0
-
0
Trade creditors
1,029,487
1,014,179
-
0
126
Amounts owed to group undertakings
-
0
-
0
6,556,860
6,203,563
Corporation tax payable
127,321
56,983
78,050
56,983
Other taxation and social security
95,608
80,487
13,292
12,707
Other creditors
649,641
912,290
-
0
-
0
Accruals and deferred income
145,418
108,085
7,200
6,105
2,654,448
2,509,966
6,888,861
6,501,414
TECHMOTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 30 -
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
279,743
511,123
279,743
511,123
Obligations under finance leases
21
56,774
92,952
-
0
-
0
336,517
604,075
279,743
511,123

Bank loans are secured against the assets of the group.

 

Net obligations under finance lease and hire purchase contracts are secured by fixed charges on the assets concerned.

20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
850,538
733,053
513,202
733,053
Bank overdrafts
-
0
82,620
-
0
-
0
850,538
815,673
513,202
733,053
Payable within one year
570,795
304,550
233,459
221,930
Payable after one year
279,743
511,123
279,743
511,123
21
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
36,178
33,392
-
0
-
0
In two to five years
56,774
92,952
-
0
-
0
92,952
126,344
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

TECHMOTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 31 -
22
Provisions for liabilities
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Retirement benefit obligations
(760,000)
(182,000)
-
-
Deferred tax liabilities
23
328,903
232,443
143,000
135,068
23
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
£
£
Accelerated capital allowances
42,315
62,795
Revaluations
143,000
135,068
Retirement benefit obligations
143,588
34,580
328,903
232,443
Liabilities
Liabilities
2023
2022
Company
£
£
Revaluations
143,000
135,068
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 December 2022
232,443
135,068
(Credit)/charge to profit or loss
(46,040)
7,932
Charge to other comprehensive income
142,500
-
Liability at 30 November 2023
328,903
143,000

 

TECHMOTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 32 -
24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
184,435
167,667

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.

Defined benefit schemes

A defined benefit scheme is operated for qualifying employees. The scheme was closed to new members from 1 November 2000 and was made paid up on 31 October 2003. No further benefits will accrue for employees in the scheme.

 

The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation were carried out at 31 October 2021 by Tom McDougal. The present value of the defined benefit obligation, the related current service cost and past service cost were measured using the projected unit method.

Valuation

The actuarial valuation showed that the value of the scheme assets was £6,530,000 and that this value represents 109% of the value of benefits that had accrued to members, after allowing for expected future increases in salaries. The scheme's assets are invested predominantly in managed funds. The actuarial value of the scheme assets in relation to liabilities applies only on the ongoing basis if the pension scheme assets are invested in accordance with the funding objective.

 

Insured pensions assets and liabilities are included in the assets and obligations set out below, based on Disclosure Reports obtained from the actuary dated 30 November 2022 and 30 November 2023 respectively.

2023
2022
Key assumptions
%
%
Discount rate
5.30
4.50
Expected rate of increase of pensions in payment
2.85
2.65
Retail price inflation
3.20
3.05
Consumer price inflation
2.85
2.65
Mortality assumptions
2023
2022

Assumed life expectations on retirement at age 65:

Years
Years
Retiring today
- Males
20.4
20.4
- Females
23
23.3
Retiring in 20 years
- Males
21.6
21.4
- Females
24.5
24.8
TECHMOTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
24
Retirement benefit schemes
(Continued)
- 33 -
2023
2022

Amounts recognised in the profit and loss account

£
£
Net interest on defined benefit liability/(asset)
(8,000)
34,000
The effect of any curtailment or settlement
(241,000)
241,000
Other costs and income
26,000
-
Total costs/(income)
(223,000)
275,000
2023
2022

Amounts taken to other comprehensive income

£
£
Actual return on scheme assets
(225,000)
387,000
Calculated interest element
285,000
114,000
Return on scheme assets excluding interest income
60,000
501,000
Actuarial changes related to obligations
(656,000)
(3,102,000)
Changes to plan provisions in relation to GMP equalisation
241,000
-
Total costs/(income)
(355,000)
(2,601,000)

The amounts included in the balance sheet arising from obligations in respect of defined benefit plans are as follows:

2023
2022
Group
£
£
Present value of defined benefit obligations
5,591,000
6,348,000
Fair value of plan assets
(6,351,000)
(6,530,000)
Deficit in scheme
(760,000)
(182,000)
The company had no post employment benefits at 30 November 2023 or 1 December 2022.
Group
2023

Movements in the present value of defined benefit obligations

£
Liabilities at 1 December 2022
6,348,000
Benefits paid
(378,000)
Actuarial gains and losses
(656,000)
Interest cost
277,000
At 30 November 2023
5,591,000
TECHMOTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
24
Retirement benefit schemes
(Continued)
- 34 -
Group
2023

The defined benefit obligations arise from plans funded as follows:

£
Wholly unfunded obligations
5,591,000
Wholly or partly funded obligations
-
5,591,000
Group
2023

Movements in the fair value of plan assets

£
Fair value of assets at 1 December 2022
6,530,000
Interest income
285,000
Return on plan assets (excluding amounts included in net interest)
(60,000)
Benefits paid
(378,000)
Other
(26,000)
At 30 November 2023
6,351,000

The actual return on plan assets was £225,000 (2022 - £387,000).

Fair value of plan assets at the reporting period end

Group
2023
2022
£
£
Equity instruments
-
4,719,000
Debt instruments
3,190,000
1,350,000
Property
44,000
250,000
Cash
3,117,000
211,000
6,351,000
6,530,000
TECHMOTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 35 -
25
Share capital
Group and company
2023
2022
Ordinary share capital
£
£
Issued and fully paid
4,000 A Ordinary shares of £1 each
4,000
4,000
2,000 B Ordinary shares of £1 each
2,000
2,000
2,000 C Ordinary shares of £1 each
2,000
2,000
2,000 D Ordinary shares of £1 each
2,000
2,000
10,000
10,000
26
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
13,042
13,042
-
-
Between two and five years
14,968
28,010
-
-
28,010
41,052
-
-
27
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
67,949
53,054
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sale of goods
Purchase of goods
2023
2022
2023
2022
£
£
£
£
Group
Other related parties
453,198
360,635
38,481
42,884
TECHMOTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
27
Related party transactions
(Continued)
- 36 -
Rent receivable
2023
2022
£
£
Group
Other related parties
420,144
421,404
Company
Other related parties
286,284
282,264

The following amounts were outstanding at the reporting end date:

Amounts owed by related parties
2023
2022
£
£
Group
Other related parties
585,629
374,293

No guarantees have been given or received.

28
Directors' transactions

Dividends totalling £417,007 (2022 - £319,610) were paid in the year in respect of shares held by the company's directors.

29
Controlling party

The company is controlled by the directors.

TECHMOTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 37 -
30
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
1,452,707
1,177,351
Adjustments for:
Taxation charged/(credited)
311,847
(195,403)
Finance costs
61,775
84,751
Investment income
-
(84)
Loss/(gain) on disposal of tangible fixed assets
310
(136,666)
Amortisation and impairment of intangible assets
44,204
44,204
Depreciation and impairment of tangible fixed assets
329,056
330,664
Pension scheme non-cash movement
(8,000)
34,000
Movements in working capital:
(Increase)/decrease in stocks
(106,377)
45,387
Increase in debtors
(908,351)
(720,974)
(Decrease)/increase in creditors
(194,887)
46,317
Cash generated from operations
982,284
709,547
31
Analysis of changes in net debt - group
1 December 2022
Cash flows
30 November 2023
£
£
£
Cash at bank and in hand
348,911
(233,570)
115,341
Bank overdrafts
(82,620)
82,620
-
0
266,291
(150,950)
115,341
Borrowings excluding overdrafts
(733,053)
(117,485)
(850,538)
Obligations under finance leases
(126,344)
33,392
(92,952)
(593,106)
(235,043)
(828,149)
2023-11-302022-12-01falseCCH SoftwareCCH Accounts Production 2024.100Richard John HindleDavid HindlePeter Binghamfalse06493063bus:Consolidated2022-12-012023-11-30064930632022-12-012023-11-3006493063bus:Director12022-12-012023-11-3006493063bus:Director22022-12-012023-11-3006493063bus:Director32022-12-012023-11-3006493063bus:RegisteredOffice2022-12-012023-11-30064930632023-11-3006493063bus:Consolidated2021-12-012022-11-30064930632021-12-012022-11-3006493063core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-12-012023-11-3006493063core:RetainedEarningsAccumulatedLossesbus:Consolidated2021-12-012022-11-3006493063core:RevaluationReservebus:Consolidated2021-12-012022-11-3006493063core:RevenueReservesInvestmentFundsOnlybus:Consolidated2021-12-012022-11-3006493063core:RevaluationReservebus:Consolidated2022-12-012023-11-3006493063bus:Consolidated2023-11-3006493063core:Goodwillbus:Consolidated2023-11-3006493063core:Goodwillbus:Consolidated2022-11-3006493063bus:Consolidated2022-11-30064930632022-11-3006493063core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-11-3006493063core:PlantMachinerybus:Consolidated2023-11-3006493063core:FurnitureFittingsbus:Consolidated2023-11-3006493063core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-11-3006493063core:PlantMachinerybus:Consolidated2022-11-3006493063core:FurnitureFittingsbus:Consolidated2022-11-3006493063core:LandBuildingscore:OwnedOrFreeholdAssets2023-11-3006493063core:LandBuildingscore:OwnedOrFreeholdAssets2022-11-3006493063core:ShareCapitalbus:Consolidated2023-11-3006493063core:ShareCapitalbus:Consolidated2022-11-3006493063core:RevaluationReservebus:Consolidated2023-11-3006493063core:RevaluationReservebus:Consolidated2022-11-3006493063core:CapitalRedemptionReservebus:Consolidated2023-11-3006493063core:CapitalRedemptionReservebus:Consolidated2022-11-3006493063core:ShareCapital2023-11-3006493063core:ShareCapital2022-11-3006493063core:CapitalRedemptionReserve2023-11-3006493063core:CapitalRedemptionReserve2022-11-3006493063core:RetainedEarningsAccumulatedLosses2023-11-3006493063core:ShareCapitalbus:Consolidated2021-11-3006493063core:SharePremiumbus:Consolidated2021-11-3006493063core:CapitalRedemptionReservebus:Consolidated2021-11-3006493063core:RetainedEarningsAccumulatedLossesbus:Consolidated2021-11-3006493063core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-11-3006493063core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-11-3006493063core:ShareCapital2021-11-3006493063core:CapitalRedemptionReserve2021-11-3006493063core:RetainedEarningsAccumulatedLosses2021-11-3006493063core:RetainedEarningsAccumulatedLosses2022-11-3006493063bus:Consolidated2021-11-3006493063core:Goodwill2022-12-012023-11-3006493063core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-012023-11-3006493063core:PlantMachinery2022-12-012023-11-3006493063core:FurnitureFittings2022-12-012023-11-3006493063core:UKTaxbus:Consolidated2022-12-012023-11-3006493063core:UKTaxbus:Consolidated2021-12-012022-11-3006493063bus:Consolidated12022-12-012023-11-3006493063bus:Consolidated12021-12-012022-11-3006493063bus:Consolidated22022-12-012023-11-3006493063bus:Consolidated22021-12-012022-11-3006493063bus:Consolidated32022-12-012023-11-3006493063bus:Consolidated32021-12-012022-11-3006493063bus:Consolidated42022-12-012023-11-3006493063bus:Consolidated42021-12-012022-11-3006493063bus:Consolidated52022-12-012023-11-3006493063bus:Consolidated52021-12-012022-11-3006493063bus:Consolidated62022-12-012023-11-3006493063bus:Consolidated62021-12-012022-11-3006493063core:Goodwillbus:Consolidated2022-11-3006493063core:Goodwillbus:Consolidated2022-12-012023-11-3006493063core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-11-3006493063core:PlantMachinerybus:Consolidated2022-11-3006493063core:FurnitureFittingsbus:Consolidated2022-11-3006493063bus:Consolidated2022-11-3006493063core:LandBuildingscore:OwnedOrFreeholdAssets2022-11-3006493063core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-12-012023-11-3006493063core:PlantMachinerybus:Consolidated2022-12-012023-11-3006493063core:FurnitureFittingsbus:Consolidated2022-12-012023-11-3006493063core:PlantMachinery2023-11-3006493063core:PlantMachinery2022-11-3006493063core:Subsidiary22022-12-012023-11-3006493063core:Subsidiary12022-12-012023-11-3006493063core:CurrentFinancialInstruments2023-11-3006493063core:CurrentFinancialInstruments2022-11-3006493063core:CurrentFinancialInstrumentsbus:Consolidated2023-11-3006493063core:CurrentFinancialInstrumentsbus:Consolidated2022-11-3006493063core:WithinOneYearbus:Consolidated2023-11-3006493063core:WithinOneYearbus:Consolidated2022-11-3006493063core:CurrentFinancialInstrumentscore:WithinOneYear2023-11-3006493063core:CurrentFinancialInstrumentscore:WithinOneYear2022-11-3006493063core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-11-3006493063core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2022-11-3006493063core:Non-currentFinancialInstrumentscore:AfterOneYear2023-11-3006493063core:Non-currentFinancialInstrumentscore:AfterOneYear2022-11-3006493063core:Non-currentFinancialInstrumentsbus:Consolidated2023-11-3006493063core:Non-currentFinancialInstrumentsbus:Consolidated2022-11-3006493063core:Non-currentFinancialInstruments2023-11-3006493063core:Non-currentFinancialInstruments2022-11-3006493063core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-11-3006493063core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-11-3006493063core:WithinOneYear2023-11-3006493063core:WithinOneYear2022-11-3006493063core:BetweenTwoFiveYearsbus:Consolidated2023-11-3006493063core:BetweenTwoFiveYearsbus:Consolidated2022-11-3006493063core:BetweenTwoFiveYears2023-11-3006493063core:BetweenTwoFiveYears2022-11-3006493063bus:PrivateLimitedCompanyLtd2022-12-012023-11-3006493063bus:FRS1022022-12-012023-11-3006493063bus:Audited2022-12-012023-11-3006493063bus:ConsolidatedGroupCompanyAccounts2022-12-012023-11-3006493063bus:FullAccounts2022-12-012023-11-30xbrli:purexbrli:sharesiso4217:GBP