Acorah Software Products - Accounts Production 15.0.400 false true true 31 December 2022 1 January 2022 true 22 August 2024 true true true true 1 January 2023 31 December 2023 31 December 2023 01376171 Mr A S Gakhal Mr T S Gakhal Mrs J K Gakhal true iso4217:GBP iso4217:EUR iso4217:USD xbrli:shares xbrli:pure xbrli:pure 01376171 2022-12-31 01376171 2023-12-31 01376171 2023-01-01 2023-12-31 01376171 frs-core:CurrentFinancialInstruments 2023-12-31 01376171 frs-core:Non-currentFinancialInstruments 2023-12-31 01376171 frs-core:BetweenOneFiveYears 2023-12-31 01376171 frs-core:FurnitureFittings 2023-12-31 01376171 frs-core:FurnitureFittings 2023-01-01 2023-12-31 01376171 frs-core:FurnitureFittings 2022-12-31 01376171 frs-core:MotorVehicles 2023-12-31 01376171 frs-core:MotorVehicles 2023-01-01 2023-12-31 01376171 frs-core:MotorVehicles 2022-12-31 01376171 frs-core:PlantMachinery 2023-12-31 01376171 frs-core:PlantMachinery 2023-01-01 2023-12-31 01376171 frs-core:PlantMachinery 2022-12-31 01376171 frs-core:WithinOneYear 2023-12-31 01376171 frs-core:ShareCapital 2023-12-31 01376171 frs-core:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 01376171 frs-core:RetainedEarningsAccumulatedLosses 2023-12-31 01376171 frs-countries:UnitedKingdom 2023-01-01 2023-12-31 01376171 frs-countries:Europe 2023-01-01 2023-12-31 01376171 frs-bus:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 01376171 frs-bus:FullAccounts 2023-01-01 2023-12-31 01376171 frs-bus:MediumEntities 2023-01-01 2023-12-31 01376171 frs-bus:Audited 2023-01-01 2023-12-31 01376171 frs-bus:Medium-sizedCompaniesRegimeForAccounts 2023-01-01 2023-12-31 01376171 frs-bus:Medium-sizedCompaniesRegimeForDirectorsReport 2023-01-01 2023-12-31 01376171 frs-bus:OrdinaryShareClass1 2023-01-01 2023-12-31 01376171 frs-bus:OrdinaryShareClass1 2023-12-31 01376171 1 2023-01-01 2023-12-31 01376171 frs-core:DeferredTaxation 2023-01-01 2023-12-31 01376171 frs-core:DeferredTaxation 2022-12-31 01376171 frs-core:DeferredTaxation 2023-12-31 01376171 frs-bus:Director1 2023-01-01 2023-12-31 01376171 frs-bus:Director2 2023-01-01 2023-12-31 01376171 frs-bus:Director3 2023-01-01 2023-12-31 01376171 frs-bus:Director3 2023-12-31 01376171 frs-bus:CompanySecretary1 2023-01-01 2023-12-31 01376171 1 2023-01-01 2023-12-31 01376171 frs-countries:EnglandWales 2023-01-01 2023-12-31 01376171 frs-countries:EnglandWales 2023-01-01 2023-12-31 01376171 2021-12-31 01376171 2022-12-31 01376171 2022-01-01 2022-12-31 01376171 frs-core:CurrentFinancialInstruments 2022-12-31 01376171 frs-core:Non-currentFinancialInstruments 2022-12-31 01376171 frs-core:BetweenOneFiveYears 2022-12-31 01376171 frs-core:MotorVehicles 2022-01-01 2022-12-31 01376171 frs-core:PlantMachinery 2022-01-01 2022-12-31 01376171 frs-core:WithinOneYear 2022-12-31 01376171 frs-core:ShareCapital 2021-12-31 01376171 frs-core:ShareCapital 2022-12-31 01376171 frs-core:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 01376171 frs-core:RetainedEarningsAccumulatedLosses frs-core:PreviouslyStatedAmount 2021-12-31 01376171 frs-core:RetainedEarningsAccumulatedLosses 2022-12-31 01376171 frs-countries:UnitedKingdom 2022-01-01 2022-12-31 01376171 frs-countries:Europe 2022-01-01 2022-12-31 01376171 frs-bus:OrdinaryShareClass1 2022-01-01 2022-12-31 01376171 1 2022-01-01 2022-12-31
Registered number: 01376171
Aeroplas (U.K.) Limited
Strategic Report, Directors' Report and
Financial Statements
For The Year Ended 31 December 2023
Directors' Report and Financial Statements
Contents
Page
Company Information 1
Strategic Report 2
Directors' Report 3—4
Independent Auditor's Report 5—6
Profit and Loss Account 7
Statement of Comprehensive Income 8
Balance Sheet 9
Statement of Changes in Equity 10
Notes to the Financial Statements 11—17
Page 1
Company Information
Directors Mr A S Gakhal
Mr T S Gakhal
Secretary Mrs J K Gakhal
Company Number 01376171
Registered Office Aeroplas Drive
Great Western Way
Tipton
West Midlands
DY4 7AB
Accountants Harrison Partners Limited
Masonic Building
9 Mill Street
Sutton Coldfield
B72 1TJ
Auditors Harrison Partners Limited
Masonic Building
9 Mill Street
Sutton Coldfield
B72 1TJ
Page 1
Page 2
Strategic Report
The directors present their strategic report for the year ended 31 December 2023.
Principal Activity
The principal activity of the company is the manufacture of plastic products.
Review of the Business
Aeroplas (U.K.) Limited ("the company") is a leading manufacturer of plastic coat hangers, catering products and horticultural products.  During the year, the company achieved a turnover of £10,601,434 (2022: £13,659,165), this being a contraction of circa 22%.  The contraction resulted from a return to a pre- Covid-19 demand for horticultural products. However, the gross margins have improved with 23.2% being achieved compared to 20.9% in the prior year.  This improvements is the result of stabilised oil prices leading, which resulted in a drop in the cost of raw materials.
Principal Risks and Uncertainties
The company faces a number of business risks and uncertainties linked to the impact of volatility in oil prices, which can affect the cost price of raw materials.  During the prior year the volatility led to shortages of certain key materials, resulting in price increases.  To mitigate the risk, the Company established new supplier relationships, ensuring continuity of supply at competitive prices.
The company has credit risk, in respect of trade debtors, which it manages through its credit control processes and the close monitoring of customer credit limits.  
As a manufacturing business, the company is exposed to a number of health and safety risks.  These are managed through a commitment to high standards of safety.  We review all incidents and 'near misses' to establish their root cause and use external third-party consultants to assess compliance with all necessary standards and our in house policies and procedures.
Future Developments
The company continues to invest in new plant and tooling to improve energy efficiency and production cycle times. The company's product range continues to evolve as a result of customer feedback and demand by end users for more recyclable products. 
On behalf of the board
Mr A S Gakhal
Director
22 August 2024
Page 2
Page 3
Directors' Report
The directors present their report and the financial statements for the year ended 31 December 2023.
Directors
The directors who held office during the year were as follows:
Mr A S Gakhal
Mr T S Gakhal
Mr S S Pawar Resigned 23/04/2024
Going Concern
The directors have performed an assessment of the company's ability to continue as a going concern for a period of at least 12 months from the date of approval of these financial statements.  At the end of the year the company had cash reserves of £5.1m and no bank loans.  Moreover, the business has continued to trade profitably throughout 2024.  Accordingly, the directors have no concerns as to the ability of the company to meet its liabilities as they fall due for a period beyond the required 12 months.
Matters covered in the Strategic Report
Disclosures required under s416(4) of the Companies Act 2006 are commented upon in the Strategic Report as the directors consider them to be of strategic importance to the business.
Statement of Directors' Responsibilities
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', 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 the financial statements the directors are required to:
  • select suitable accounting policies and then apply them consistently;
  • make judgments and accounting estimates that are reasonable and prudent;
  • state whether applicable United Kingdom Accounting Standards, comprising FRS102, have been followed subject to any material departures disclosed and explained in the financial statements;
  • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and 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 of Information to Auditors
In the case of each director in office at the date the Directors' Report is approved: 
  • so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
  • they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
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Independent Auditors
The auditors, Harrison Partners Limited, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.
On behalf of the board
Mr A S Gakhal
Director
22 August 2024
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Independent Auditor's Report
Opinion
We have audited the financial statements of Aeroplas (U.K.) Limited for the year ended 31 December 2023 which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes of Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
In our opinion the financial statements:
  • give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit/(loss) for the year then ended;
  • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
  • have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 entity's ability to continue as a going concern for a period of at least 12 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. In connection with our audit of the financial statements, 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 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 the audit:
  • the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
  • the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on Which We Are Required to Report by Exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
  • adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
  • the financial statements are not in agreement with the accounting records or returns; or
  • certain disclosures of directors' remuneration specified by law are not made; or
  • we have not received all the information and explanations we require for our audit.
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Responsibilities of Directors
As explained more fully in the Directors' Responsibilities Statement set out on page 3—4, 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 
Irregularities, including fraud, are instances of non-compliance with laws and regulations.  We designed procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.  We identified the laws and regulations applicable to the company through discussions with directors and other management and from our commercial knowledge and experience of the manufacturing sector.  We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and UK GAAP, FRS102 in particular. We also considered other laws and regulations where non-compliance could have a material impact on the amounts or disclosures in the financial statements. For example, fines, penalties or litigation losses. Such additional legislation includes health and safety regulations, anti-bribery and corruption legislation and The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013.  We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and ensuring proper policies and procedures are in place. Moreover, the laws and regulations were communicated to the audit team, who remained alert to instances of non-compliance throughout the audit.  We also assessed the susceptibility of the company's financial statements to material misstatement by making enquiries of management as to where they considered there was a susceptibility to fraud, their knowledge of actual or suspected frauds and through a consideration of the internal controls that might mitigate the risk of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and the override of controls, we performed substantive testing of material balance sheet assets and liabilities, plus directional testing of revenue, expenses and payroll.  
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website 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 that 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.
Neil Harrison (Senior Statutory Auditor)
for and on behalf of Harrison Partners Limited , Statutory Auditor
22 August 2024
Harrison Partners Limited
Masonic Building
9 Mill Street
Sutton Coldfield
B72 1TJ
Page 6
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Profit and Loss Account
2023 2022
Notes £ £
TURNOVER 3 10,601,434 13,659,165
Cost of sales (8,140,619 ) (10,792,266 )
GROSS PROFIT 2,460,815 2,866,899
Distribution costs (242,671 ) (273,453 )
Administrative expenses (1,178,711 ) (1,158,331 )
Other operating income 20,519 -
OPERATING PROFIT 5 1,059,952 1,435,115
(Loss)/profit on disposal of fixed assets (20,307 ) 12,258
Other interest receivable and similar income 10 164,651 12,235
Interest payable and similar charges 11 (21,928 ) (9,229 )
PROFIT BEFORE TAXATION 1,182,368 1,450,379
Tax on Profit 12 (261,748 ) (437,145 )
PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR 920,620 1,013,234
The notes on pages 11 to 17 form part of these financial statements.
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Statement of Comprehensive Income
2023 2022
£ £
PROFIT FOR THE FINANCIAL YEAR 920,620 1,013,234
OTHER COMPREHENSIVE INCOME FOR THE YEAR - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 920,620 1,013,234
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Balance Sheet
2023 2022
Notes £ £ £ £
FIXED ASSETS
Tangible Assets 13 3,983,080 4,149,392
3,983,080 4,149,392
CURRENT ASSETS
Stocks 14 1,949,191 1,982,921
Debtors 15 2,064,563 1,822,438
Cash at bank and in hand 5,229,346 3,927,041
9,243,100 7,732,400
Creditors: Amounts Falling Due Within One Year 16 (2,322,549 ) (1,919,706 )
NET CURRENT ASSETS (LIABILITIES) 6,920,551 5,812,694
TOTAL ASSETS LESS CURRENT LIABILITIES 10,903,631 9,962,086
Creditors: Amounts Falling Due After More Than One Year 17 (261,584 ) (226,799 )
PROVISIONS FOR LIABILITIES
Deferred Taxation 19 (878,731 ) (892,591 )
NET ASSETS 9,763,316 8,842,696
CAPITAL AND RESERVES
Called up share capital 21 20,000 20,000
Profit and Loss Account 9,743,316 8,822,696
SHAREHOLDERS' FUNDS 9,763,316 8,842,696
The financial statements were approved by the board of directors on 22 August 2024 and were signed on its behalf by:
Mr A S Gakhal
Director
22 August 2024
The notes on pages 11 to 17 form part of these financial statements.
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Statement of Changes in Equity
Share Capital Profit and Loss Account Total
£ £ £
As at 1 January 2022 20,000 7,809,462 7,829,462
Profit for the year and total comprehensive income - 1,013,234 1,013,234
As at 31 December 2022 and 1 January 2023 20,000 8,822,696 8,842,696
Profit for the year and total comprehensive income - 920,620 920,620
As at 31 December 2023 20,000 9,743,316 9,763,316
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Notes to the Financial Statements
1. General Information
Aeroplas (U.K.) Limited is a private company, limited by shares, incorporated in England & Wales, registered number 01376171 . The registered office is Aeroplas Drive, Great Western Way, Tipton, West Midlands, DY4 7AB.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.
2.2. Financial Reporting Standard 102 - Reduced Disclosure Exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
  • the requirements of Section 7 Statement of Cash Flows and Section 3 Financial Statement Presentation paragraph 3.17 (d);
  • the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44, 11.45, 11.47, 11.48 (a) (iii), 11.48 (a) (iv), 11.48 (b) and 11.48 (c);
  • the requirements of Section 12 Other Financial Instruments Issues paragraphs 12.27, 12.29 (a), 12.29 (b), 12.29A and 12.30;
2.3. Going Concern Disclosure
The directors have not identified any material uncertainties related to events or conditions that may cast significant doubt about the company's ability to continue as a going concern.
2.4. Significant judgements and estimations
Judgements
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The judgements that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are:
Estimated life of fixed assets
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are:
Depreciation rates
Finished goods reduction to cost percentage
2.5. Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover comprises revenue earned from the sale of goods and is reduced for estimated customer returns, rebates and other similar allowances.
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is at the point that the customer has signed for the delivery of the goods.
2.6. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Plant & Machinery 15% and 20% reducing balance
Motor Vehicles 25% reducing balance
Fixtures & Fittings 25% reducing balance
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2.7. Leasing and Hire Purchase Contracts
Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred.
2.8. Stocks and Work in Progress
Stocks of materials and finished goods are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.  The cost of materials is determined using the first-in, first-out method. The cost of finished goods comprises direct materials and where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.  
At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.
2.9. Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
2.10. Foreign Currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
2.11. Taxation
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income. 
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
2.12. Pensions
The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
3. Turnover
Analysis of turnover by geographical market is as follows:
2023 2022
£ £
United Kingdom 10,301,210 13,442,483
Europe 300,224 216,682
10,601,434 13,659,165
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4. Other Operating Income
2023 2022
£ £
Rental income 20,519 -
20,519 -
5. Operating Profit
The operating profit is stated after charging:
2023 2022
£ £
Bad debts - 2,617
Depreciation of tangible fixed assets 748,815 779,874
6. Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
2023 2022
£ £
Audit Services
Audit of the company's financial statements 8,150 8,450
7. Staff Costs
Staff costs, including directors' remuneration, were as follows:
2023 2022
£ £
Wages and salaries 1,532,751 1,667,816
Social security costs 134,951 156,820
Other pension costs 32,604 47,791
1,700,306 1,872,427
8. Average Number of Employees
Average number of employees, including directors, during the year was as follows:
2023 2022
Office and administration 4 4
Sales, marketing and distribution 4 4
Manufacturing 54 60
Management 2 2
64 70
9. Directors' remuneration
2023 2022
£ £
Emoluments 56,490 50,958
56,490 50,958
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10. Interest Receivable and Similar Income
2023 2022
£ £
Bank interest receivable 164,651 12,235
164,651 12,235
11. Interest Payable and Similar Charges
2023 2022
£ £
Bank loans and overdrafts - 26
Finance charges payable under finance leases and hire purchase contracts 20,353 11,806
Foreign exchange charges 983 (2,603 )
Other finance charges 592 -
21,928 9,229
12. Tax on Profit
The tax charge on the profit for the year was as follows:
Tax Rate 2023 2022
2023 2022 £ £
Current tax
UK Corporation Tax 23.5% 19.0% 275,608 196,136
Deferred Tax
Origination and reversal of timing differences (13,860 ) 241,009
Total tax charge for the period 261,748 437,145
The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
2023 2022
£ £
Profit before tax 1,182,368 1,450,379
Tax on profit at 23.5% (UK standard rate) 278,093 275,572
Goodwill/depreciation not allowed for tax 180,902 145,847
Expenses not deductible for tax purposes 205 153
Capital allowances (169,003 ) (215,831 )
Short term timing differences (13,860 ) 241,009
Research and Development tax credit (14,589 ) (9,605 )
Total tax charge for the period 261,748 437,145
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13. Tangible Assets
Plant & Machinery Motor Vehicles Fixtures & Fittings Total
£ £ £ £
Cost
As at 1 January 2023 21,501,409 201,562 237,098 21,940,069
Additions 423,009 186,092 3,709 612,810
Disposals (295,909 ) (125,770 ) (983 ) (422,662 )
As at 31 December 2023 21,628,509 261,884 239,824 22,130,217
Depreciation
As at 1 January 2023 17,416,087 170,924 203,666 17,790,677
Provided during the period 705,774 34,292 8,749 748,815
Disposals (284,867 ) (106,690 ) (798 ) (392,355 )
As at 31 December 2023 17,836,994 98,526 211,617 18,147,137
Net Book Value
As at 31 December 2023 3,791,515 163,358 28,207 3,983,080
As at 1 January 2023 4,085,322 30,638 33,432 4,149,392
Included above are assets held under finance leases or hire purchase contracts with a net book value as follows:
2023 2022
£ £
Plant & Machinery 262,165 423,340
Motor Vehicles 115,502 -
377,667 423,340
14. Stocks
2023 2022
£ £
Materials 433,408 407,156
Finished goods 1,515,783 1,575,765
1,949,191 1,982,921
15. Debtors
2023 2022
£ £
Due within one year
Trade debtors 1,898,101 1,587,997
Prepayments and accrued income 166,462 197,481
Other debtors - 36,960
2,064,563 1,822,438
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16. Creditors: Amounts Falling Due Within One Year
2023 2022
£ £
Net obligations under finance lease and hire purchase contracts 85,978 69,288
Trade creditors 1,033,926 870,966
Amounts owed to group undertakings 804,160 548,555
Other creditors 6,327 5,313
Corporation tax 275,608 241,382
Taxation and social security 105,532 164,539
Accruals and deferred income 11,018 19,663
2,322,549 1,919,706
17. Creditors: Amounts Falling Due After More Than One Year
2023 2022
£ £
Net obligations under finance lease and hire purchase contracts 261,584 226,799
261,584 226,799
Of the creditors the following amounts are secured.
2023 2022
£ £
Net obligations under finance lease and hire purchase contracts 347,562 296,087
Amounts owed to group undertakings 804,160 548,555
The amount owed to group undertakings is secured by a debenture over the company's assets. The amounts owing under hire purchase agreements are secured on the assets concerned.
18. Obligations Under Finance Leases and Hire Purchase
2023 2022
£ £
The future minimum finance lease payments are as follows:
Not later than one year 85,978 69,288
Later than one year and not later than five years 261,584 226,799
347,562 296,087
347,562 296,087
19. Deferred Taxation
The provision for deferred tax is made up as follows:
2023 2022
£ £
Other timing differences 878,731 892,591
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20. Provisions for Liabilities
Deferred Tax Total
£ £
As at 1 January 2023 892,591 892,591
Utilised (13,860 ) (13,860)
Balance at 31 December 2023 878,731 878,731
21. Share Capital
2023 2022
Allotted, called up and fully paid £ £
20,000 Ordinary Shares of £ 1 each 20,000 20,000
22. Capital Commitments
At the end of the year, the company had capital commitments contracted for but not provided in these financial statements amounting to £Nil (2022: £147,840).
23. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
24. Post Balance Sheet Events
There are no events that have occured since the reporting date that need to be disclosed or adjusted for in these financial statements.
25. Related Party Disclosures
The company has taken advantage of exemption, under 33.1A of the Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", not to disclose transactions with wholly owned subsidiaries within the group.
26. Controlling Parties
The ultimate parent company and controlling party is Aeroplas Holdings Ltd. (incorporated in England & Wales). Its registered office is Masonic Building, 9 Mill Street, Sutton Coldfield B72 1TJ .
Copies of the group accounts may be obtained from Companies House.
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