Company registration number 02707834 (England and Wales)
WINBRO GROUP TECHNOLOGIES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
WINBRO GROUP TECHNOLOGIES LIMITED
COMPANY INFORMATION
Directors
Tien-Hsin Hsieh
Andrew Lawson
John McTernan
Company number
02707834
Registered office
Illuma House
Unit 1, Gelders Hall Road
Shepshed
LE12 9NH
Auditor
Alliotts LLP
Manfield House
1 Southampton Street
London
WC2R 0LR
Bankers
Lloyds TSB Bank Plc
20 Belvoir Road
Coalville
Leicestershire
LE67 3QH
Solicitors
Browne Jacobson LLP
Mowbray House
Castle Meadow Road
Nottinghamshire
NG2 1BJ
WINBRO GROUP TECHNOLOGIES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 22
WINBRO GROUP TECHNOLOGIES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Principal activity

The principal activity of the company continued to be that of providing the latest technologies, systems solutions, advanced manufacturing, and partner services through the design, development and manufacture of Laser and Electro discharge systems with their related services. Diversifying from its prime Industry of gas turbines, the company has, and is, developing new products and services for clean energy, semiconductor and medical device industries.

Business review

During 2023, the company saw turnover of £24,235,174, up over 13% from 2022 21,407,804). The company returned a profit after tax of £1,899,529, up over 435% from 2022 (profit of £355,070). The long-term outlook for the company’s products and services remains extremely positive with a strong order backlog of aero and industrial gas turbine OEM orders plus a growing number of orders and opportunities in new, high technology, sustainable markets.

Principal risks and uncertainties

The company continues to work within in a challenging global supply chain where availability and cost of materials requires focus, management and reduction of waste in all areas. Through this activity and the deployment of our advanced technologies the company continues to win new orders to help solve our customers own cost and time to market challenges.

Financial key performance indicators

The directors consider turnover and profit to be the key performance indicators. The company also monitor several key performance indicators across the areas of; employee safety, technology leadership, customer satisfaction and operational efficiency, that will continue to be developed to support the delivery of financial performance.

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

Tien-Hsin Hsieh
Director
19 August 2024
WINBRO GROUP TECHNOLOGIES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Tien-Hsin Hsieh
Andrew Lawson
John McTernan
Principal risks and uncertainties
Financial instruments

The company uses financial instruments, other than derivatives, comprising borrowings, cash and other liquid resources and various other items such as trade debtors and creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations. The main risks arising from the company financial instruments are interest rate risk, liquidity risk and foreign currency risk. The directors review and agree policies for managing each of these risks and they are summarised below. The policies have remained unchanged from previous periods.

Interest rate risk

The company finances its operations through a mixture of retained profits, inter-company accounts and bank borrowings. The company's exposure to interest rate fluctuations on its borrowings is managed on a group basis by the use of both fixed and floating rate facilities.

Liquidity risk

The company seeks to manage liquidity risk by ensuring sufficient liquidity is available to meet foreseeable needs and by investing cash assets safely and profitability. Primarily this is achieved through bank borrowings, intercompany accounts or through loans arranged at group level.

Currency risk

The company is exposed to transaction foreign exchange risk. Transaction exposures are hedged when known, mainly using the forward hedge market.

Auditor

Alliotts LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006.

WINBRO GROUP TECHNOLOGIES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Statement of directors' responsibilities

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 company and of the profit or loss of the company 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor 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 company’s auditor is aware of that information.

On behalf of the board
Tien-Hsin Hsieh
Director
19 August 2024
WINBRO GROUP TECHNOLOGIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WINBRO GROUP TECHNOLOGIES LIMITED
- 4 -
Opinion

We have audited the financial statements of Winbro Group Technologies Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and 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 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 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:

WINBRO GROUP TECHNOLOGIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WINBRO GROUP TECHNOLOGIES LIMITED
- 5 -
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:

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 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.

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

WINBRO GROUP TECHNOLOGIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WINBRO GROUP TECHNOLOGIES LIMITED
- 6 -
Audit response to risks identified

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Christopher Mantel
Senior Statutory Auditor
For and on behalf of Alliotts LLP
19 August 2024
Chartered Accountants
Statutory Auditor
Manfield House
1 Southampton Street
London
WC2R 0LR
WINBRO GROUP TECHNOLOGIES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
24,235,174
21,407,804
Cost of sales
(20,066,207)
(18,041,671)
Gross profit
4,168,967
3,366,133
Administrative expenses
(2,510,748)
(3,126,609)
Other operating income
497,956
376,074
Operating profit
4
2,156,175
615,598
Interest receivable and similar income
7
71,509
6,444
Profit before taxation
2,227,684
622,042
Tax on profit
8
(328,155)
(266,972)
Profit for the financial year
1,899,529
355,070

The notes on pages 10 to 22 form part of these financial statements.

WINBRO GROUP TECHNOLOGIES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
2,005,235
2,515,231
Current assets
Stocks
10
6,717,891
6,676,184
Debtors
11
7,549,293
8,220,940
Cash at bank and in hand
6,842,475
3,679,435
21,109,659
18,576,559
Creditors: amounts falling due within one year
12
(5,975,224)
(5,823,520)
Net current assets
15,134,435
12,753,039
Total assets less current liabilities
17,139,670
15,268,270
Provisions for liabilities
Deferred tax liability
13
184,471
212,600
(184,471)
(212,600)
Net assets
16,955,199
15,055,670
Capital and reserves
Called up share capital
15
90,298
90,298
Share premium account
16
129,003
129,003
Capital redemption reserve
16
47,500
47,500
Profit and loss reserves
16
16,688,398
14,788,869
Total equity
16,955,199
15,055,670

The notes on pages 10 to 22 form part of these financial statements.

The financial statements were approved by the board of directors and authorised for issue on 19 August 2024 and are signed on its behalf by:
Tien-Hsin Hsieh
Director
Company registration number 02707834 (England and Wales)
WINBRO GROUP TECHNOLOGIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2022
90,298
129,003
47,500
14,433,799
14,700,600
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
355,070
355,070
Balance at 31 December 2022
90,298
129,003
47,500
14,788,869
15,055,670
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
1,899,529
1,899,529
Balance at 31 December 2023
90,298
129,003
47,500
16,688,398
16,955,199

The notes on pages 10 to 22 form part of these financial statements.

WINBRO GROUP TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
1
Accounting policies
Company information

Winbro Group Technologies Limited is a private company limited by shares incorporated in England and Wales. The registered office is Illuma House, Unit 1, Gelders Hall Road, Shepshed, LE12 9NH.

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. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Quaser Machine Tools Inc. These consolidated financial statements are available to the public from the registered office disclosed in note 21.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The parent company has also demonstrated its willingness to provide support where needed, to enable the company to meet its obligations when they fall due, for a period of at least 12 months from the date the financial statements are signed. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

WINBRO GROUP TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -
1.3
Turnover

Turnover is recognised by the company where it has met substantially all of its contractual obligations.

 

In the case of spares and service sales and sub-contract machining, turnover is recognised at the point at which goods or services are despatched or provided and all risks and rewards have been transferred.

 

In the case of machine sales, turnover is recognised at the point of shipment of machines, unless there is evidence that on-site acceptance will not be forthcoming. On-site acceptance typically involves some element of commissioning cost. Such costs are provided in full in cost of sales at the point of revenue recognition. The key element of commissioning costs is in relation to testing.

 

When the company enters into a bill and hold arrangement with the customer, revenue is recognised when the company has transferred significant risks and rewards relating to the machines. The bill and hold basis is agreed in writing with the customer in advance of the revenue being recognised. In advance of revenue being recognised on a bill and hold basis, the following criteria need to be met:

 

 

Where payments on accounts are received from customers in advance of the point at which revenue is recognised, such payments on account are recognised as deferred income.

1.4
Research and development expenditure

Research and development expenditure is ordinarily written off in the year in which it is incurred. However, where such expenditure relates to specific commercial products where there is a probable future revenue stream, such costs are capitalised and amortised over the expected period of the revenue stream up to a maximum period of five years.

1.5
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.

 

The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the profit or loss during the period in which they are incurred. 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.

The estimated useful lives range as follows:

Leasehold improvements
10 years straight line
Plant and equipment
3-10 years straight line
Fixtures and fittings
3-5 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. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within 'other operating income' in the statement of comprehensive income.

WINBRO GROUP TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

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

 

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

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

1.7
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, 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.

1.8
Cash and cash equivalents

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

1.9
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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

WINBRO GROUP TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
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.

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 company 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 company after deducting all of its liabilities.

Basic financial liabilities

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

 

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

 

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company 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 company.

WINBRO GROUP TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.11
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 company’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 when the company has 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.

1.12
Employee benefits

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

 

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

 

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

1.13
Retirement benefits

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

1.14
Leases

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 leases asset are consumed.

1.15
Foreign exchange

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

WINBRO GROUP TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2
Judgements and key sources of estimation uncertainty

Certain of the amounts included in the financial statements involve the use of judgement and/or estimation. These judgements and estimates are based on management's best knowledge of the relevant facts and circumstances, having regard to prior experience, but actual results may differ from the amounts included in the financial statements. Information about such judgements and estimations is contained in the accounting policies and/or the notes to the financial statements and the key areas are summarised below:

 

Judgements in applying accounting policies

The directors must judge whether all of the conditions required for revenues to be recognised in the income statement of the financial year, as set out in note 1.3 above, have been met.

 

Sources of estimation uncertainty

Depreciation rates are based on estimates of the useful lives and residual values of the assets involved (see note 1.5);

 

Slow moving stock provisions are based on estimates of the likely recoverable amount (see note 1.7)

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
11,678,774
9,100,865
Rest of Europe
1,959,186
2,539,830
Rest of the World
10,597,214
9,767,109
24,235,174
21,407,804
2023
2022
£
£
Other revenue
Interest income
71,509
6,444

The directors have taken the exemption available under SI 2008/410 Sch 1, paragraph 68, with respect to disclosure of turnover by class of business as they believe this would be seriously prejudicial to the interests of the company.

4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
382,665
(94,431)
Research and development costs
809,682
984,525
Fees payable to the company's auditor for the audit of the company's financial statements
36,000
28,525
Depreciation of owned tangible fixed assets
852,439
1,151,375
Loss on disposal of tangible fixed assets
29,210
-
Operating lease charges
529,824
498,740
WINBRO GROUP TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
5
Employees

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

2023
2022
Number
Number
Administration
35
30
Production
84
82
Selling and distribution
26
23
Total
135
135

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
7,032,513
6,661,281
Social security costs
668,487
662,697
Pension costs
321,635
298,933
8,022,635
7,622,911
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
468,262
207,578
Company pension contributions to defined contribution schemes
17,991
15,117
486,253
222,695

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
329,463
207,578
Company pension contributions to defined contribution schemes
17,990
15,117
WINBRO GROUP TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
71,509
6,444
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
406,366
301,493
Adjustments in respect of prior periods
(50,082)
-
0
Total current tax
356,284
301,493
Deferred tax
Origination and reversal of timing differences
(35,675)
(34,521)
Adjustment in respect of prior periods
7,546
-
0
Total deferred tax
(28,129)
(34,521)
Total tax charge
328,155
266,972

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

2023
2022
£
£
Profit before taxation
2,227,684
622,042
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
523,951
118,188
Tax effect of expenses that are not deductible in determining taxable profit
2,702
1,831
Unutilised tax losses carried forward
-
0
(54,882)
Adjustments in respect of prior years
(50,082)
-
0
Under/(over) provided in prior years
-
0
(9,898)
Deferred tax adjustments in respect of prior years
7,546
-
0
Adjustment for research and development claim
(171,141)
255,322
Adjustment for deferred tax to an average rate of 25%
(2,111)
(7,176)
Fixed asset differences
(3,657)
(36,413)
Other differences
20,947
-
0
Taxation charge for the year
328,155
266,972

The company has unused tax losses of £nil (2022: £95,740) at the end of the reporting period. There are no unused tax credits.

WINBRO GROUP TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
(Continued)
- 18 -

A UK corporation tax rate of 25% (effective 1 April 2023) was substantively enacted on 24 May 2021, reversing the previously enacted reduction in the rate of 19%, This will increase the company's future current tax charge accordingly. The year ended 31 December 2024 will be the first year in which the new rate is effective for the entire period. The deferred tax balance at 31 December 2023 has been calculated at 25% (2022: 25%).

9
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 January 2023
695,932
10,050,452
2,419,733
13,166,117
Additions
-
0
250,538
121,115
371,653
Disposals
-
0
(21,440)
(21,238)
(42,678)
At 31 December 2023
695,932
10,279,550
2,519,610
13,495,092
Depreciation and impairment
At 1 January 2023
570,858
7,869,719
2,210,309
10,650,886
Depreciation charged in the year
50,306
680,653
121,480
852,439
Eliminated in respect of disposals
-
0
(6,035)
(7,433)
(13,468)
At 31 December 2023
621,164
8,544,337
2,324,356
11,489,857
Carrying amount
At 31 December 2023
74,768
1,735,213
195,254
2,005,235
At 31 December 2022
125,074
2,180,733
209,424
2,515,231
10
Stocks
2023
2022
£
£
Raw materials and consumables
3,987,745
4,125,741
Work in progress
2,730,146
2,550,443
6,717,891
6,676,184
WINBRO GROUP TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,843,837
3,503,600
Corporation tax recoverable
-
0
41,766
Amounts owed by group undertakings
3,343,998
3,469,394
Other debtors
161,964
184,210
Prepayments and accrued income
1,199,494
1,021,970
7,549,293
8,220,940
12
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Trade creditors
1,073,933
989,752
Corporation tax
406,366
-
0
Other taxation and social security
224,053
279,199
Deferred income
1,115,133
1,351,302
Other creditors
120,017
51,852
Accruals
3,035,722
3,151,415
5,975,224
5,823,520
13
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
193,334
212,600
Other timing differences
(8,863)
-
184,471
212,600
2023
Movements in the year:
£
Liability at 1 January 2023
212,600
Credit to profit or loss
(28,129)
Liability at 31 December 2023
184,471
WINBRO GROUP TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Deferred taxation
(Continued)
- 20 -

The deferred tax liability set out above is expected to reverse within 60 months and primarily relates to accelerated capital allowances that are expected to mature within the same period.

14
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
321,635
298,933

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

15
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of 1p each
8,352,569
8,352,569
83,526
83,526
Ordinary B shares of 1p each
677,235
677,235
6,772
6,772
9,029,804
9,029,804
90,298
90,298

The holders of Ordinary A and Ordinary B shares are both entitled to received dividends as declared from time to time and are entitled to one vote per share at meetings of the company. The right of holders of Ordinary B shares to participate in any other distributions is subject to the proceeds reaching a minimum value.

16
Reserves
Share premium

This includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from the share premium.

Capital redemption reserve

A capital redemption reserve arises in relation to redemption or purchase and cancellation of a company's own shares. For purposes of a capital reduction under CA 2006, this reserve is treated as part of 'capital'.

 

Profit and loss account

This includes all current and prior period retained profits and losses.

17
Financial commitments, guarantees and contingent liabilities

The directors have not recognised any corporation tax recoverable in respect of research and development costs as the potential claim cannot be measured reliably at the date of approval of the financial statements.

WINBRO GROUP TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
18
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
329,000
322,219
Between two and five years
508,530
837,530
837,530
1,159,749
19
Related party transactions

All balances with group companies are interest free and repayable on demand.

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
1,026,098
2,308,101
Fellow subsidiaries
2,317,900
1,161,293
Key management personnel
116,895
127,119

All balances with group companies are interest free and repayable on demand. Further information relating to balances with key management personnel is described in note 20.

Other information

As a wholly owned subsidiary of Quaser Machine Tools Inc., the company is exempt from the requirements of FRS 102 Section 33 to disclose transactions with other wholly owned members of the group on the grounds that the accounts are publicly available.

20
Directors' transactions

The loan to a director accrues interest at an annual rate of 2.5% from 1st April 2023 (1% to 31st March 23) and has a mandatory repayment date of 31 March 2025.

Description
% Rate
Opening balance
Interest charged
Amounts repaid
Closing balance
£
£
£
£
Director's loan
2.50
127,119
3,000
(13,224)
116,895
127,119
3,000
(13,224)
116,895
WINBRO GROUP TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
21
Ultimate controlling party

The immediate parent company is Winbro Group UK Limited. Its registered office is Illuma House Unit 1, Gelders Hall Road, Shepshed Leicestershire, LE12 9NH.

 

The ultimate parent company is Quaser Machine Tools Inc. The smallest and largest group of undertakings for which group accounts have been drawn up is that headed by Quaser Machine Tools Inc. The registered office of Quaser Machine Tools Inc is No.3, Gongliu Road, Daija District, Taichung City, Taiwan 437.

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