Company registration number 00153475 (England and Wales)
SATRA
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
SATRA
COMPANY INFORMATION
Directors
S Etheridge
T Blades
R Denton
P Ablett
M Harrop
J Hooker
M Bodsworth
T Pateman
H Shah
(Appointed 21 March 2023)
A Perillo
(Appointed 21 March 2023)
Company number
00153475
Registered office
Wyndham Way
Telford Way Industrial Estate
Kettering
Northamptonshire
NN16 8SD
Auditor
Moore
Oakley House
Headway Business Park
3 Saxon Way West
Corby
Northamptonshire
NN18 9EZ
SATRA
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 35
SATRA
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Financial performance and strategy

The loss after taxation on the group's activities during the year was £199,041 (2022: loss of £516,252). Operating loss for the year was £632,385 (2022: loss of £495,215). Despite the loss the group's cash position is healthy and the group has continued its commitment to capital expenditure on further improvements to equipment and facilities. The directors consider SATRA to be in a good position to generate future profitable growth.

 

The strategy during the year has been to build on the strong core of SATRA membership by continuing to attract new members on an international basis and to provide comprehensive research and technical services to clients in a wide range of consumer product industries. On-going capital investment in facilities, equipment and digital projects together with staff development will underpin the planned growth in services.

Risk and undertainties

The management of the business and the nature of SATRA's strategy are subject to a number of risks.

 

The Directors are of the opinion that these risks are under regular review as part of both formal and informal business management activities. Where appropriate, processes are in place to monitor and mitigate such risks. As part of this process the Group's risk register is reviewed and updated on a regular basis. These risks include:

 

Cost of living crisis

The nature of the business means that consumption of energy is high and the conflict in Ukraine led to significant increases in our energy costs, therefore to help counteract this the company has continued to negotiate fixed deals for energy at competitive prices for both UK sites now running until 2025. Other costs have also risen across the business, a proportion have needed to be passed on to customers through price rises, but there has also been a significant focus on cost control throughout the year.

 

United Kingdom exit from European Union

Prior to the “Brexit” referendum the SATRA risk register recognised the risk of some income loss due to the United Kingdom leaving the EU and noted contingency plans. In accordance with those plans, the company has established a subsidiary in the Republic of Ireland which, having commenced trading in 2017 and received approval as an EU Notified Body, can perform the CE activities whilst the company continues to perform the UKCA activities. The Irish business continues to grow.

 

Loss of key personnel (management and technical) including retirement of senior staff

This is addressed through offering a competitive benefits package, a recruitment & training programme, staff development activities and succession planning.

 

Defined Benefit Pension Scheme deficit: risk of impact on business

The defined benefit pension scheme is currently in deficit. The board have established a Pensions Committee to manage this issue and it liaises closely with the scheme trustees. Action has been taken to mitigate this risk including closing to new members and capping increases in pensionable pay. In 2023 the company and the trustees agreed a new recovery plan, to provide a one off lump sum payment and annual funding to the scheme, and the position is regularly reviewed by the trustees and Pensions Committee with the assistance of professional advisers.

 

Financial risk management is detailed in the notes to the accounts.

Research and development

The board believe that on-going investment in research and development is fundamental to the continued growth of the business and to the success of our members. Therefore, SATRA is committed to maintain expenditure on staff and equipment applied to research in order to continually develop the products and services available to our clients.

SATRA
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators

The directors use a number of key performance indicators (financial and non-financial) to monitor SATRA's performance on a regular basis through the year, including revenue, profitability and cash flow:

 

Key performance indicators:

 

Total revenue - £15,475,453 (2022 £15,939,416)

Change in revenue % - (2.9)% (2022 9.4%)

Operating loss - £632,385 (2022 £495,215 loss)

Capital expenditure - £1,084,249 (2022 £907,929)

Cash and investments - £3,553,576 (2022 £5,987,714)

Average number of employees - 257 (2022 260)

Future developments

As set out in the Risks and Uncertainties section of this report, the cost of living crisis, and the possibility of recession in the UK, impacted across the business in 2023. This had an adverse effect upon both income and profitability for the year, particularly in the second half of 2023. However, the negotiation of fixed deals on energy pricing now spanning into 2025 and good cost control has helped to counteract the effect. Inflationary price rises and the business forecasted to return slowly to more normal levels of trading in 2024 indicate that with its strong balance sheet, high level of liquidity and lack of debt, the company is resilient and well placed to withstand any further impact of the cost of living crisis. The board, having reviewed the cashflow forecast, concluded that it remains appropriate to adopt the going concern basis in preparing its financial statements.

 

On behalf of the board

T Pateman
Director
4 June 2024
SATRA
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The group is principally engaged in conducting research relating to the footwear, clothing, personal protective equipment, furniture, floor coverings and allied trades and providing technical services, management services and software developments to its members and clients. The group also develops and sells test equipment.

Results and dividends

The results for the year are set out on page 9.

Directors

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

S Etheridge
R Whittaker
(Resigned 9 June 2023)
T Blades
R Denton
P Ablett
M Harrop
J Hooker
M Bodsworth
T Pateman
H Shah
(Appointed 21 March 2023)
A Perillo
(Appointed 21 March 2023)
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group's policy is to consult and discuss with employees, through staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

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.

Medium-sized companies exemption

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

SATRA
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
T Pateman
Director
4 June 2024
SATRA
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

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.

SATRA
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SATRA
- 6 -
Opinion

We have audited the financial statements of SATRA (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 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:

SATRA
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SATRA
- 7 -
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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

SATRA
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SATRA
- 8 -
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

 

Our approach was as follows:

 

 

 

 

 

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.

John Harvey
Senior Statutory Auditor
For and on behalf of Moore
4 June 2024
Chartered Accountants
Statutory Auditor
Oakley House
Headway Business Park
3 Saxon Way West
Corby
Northamptonshire
NN18 9EZ
SATRA
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
15,475,453
15,939,416
Cost of sales
(2,313,716)
(2,775,297)
Gross profit
13,161,737
13,164,119
Administrative expenses
(13,794,122)
(13,659,334)
Operating loss
4
(632,385)
(495,215)
Interest receivable and similar income
8
50,693
73,575
Interest payable and similar expenses
9
(245,660)
(143,000)
Movement on investments
10
46,021
(240,975)
Loss before taxation
(781,331)
(805,615)
Tax on loss
11
582,290
289,363
Loss for the financial year
23
(199,041)
(516,252)
Loss for the financial year is all attributable to the owners of the parent company.
SATRA
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
£
£
Loss for the year
(199,041)
(516,252)
Other comprehensive income
Actuarial gain on defined benefit pension schemes
376,000
1,869,000
Currency translation loss taken to retained earnings
(176,518)
(100,454)
Tax relating to other comprehensive income
(267,500)
162,099
Other comprehensive income for the year
(68,018)
1,930,645
Total comprehensive income for the year
(267,059)
1,414,393
Total comprehensive income for the year is all attributable to the owners of the parent company.
SATRA
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
8,909,907
8,783,446
Current assets
Stocks
17
965,440
856,607
Debtors
18
5,090,258
4,627,744
Investments
19
1,017,689
1,971,669
Cash at bank and in hand
2,535,887
4,016,045
9,609,274
11,472,065
Creditors: amounts falling due within one year
20
(5,933,090)
(5,896,361)
Net current assets
3,676,184
5,575,704
Total assets less current liabilities
12,586,091
14,359,150
Net assets excluding pension liability
12,586,091
14,359,150
Defined benefit pension liability
22
(4,064,396)
(5,570,396)
Net assets
8,521,695
8,788,754
Capital and reserves
Called up share capital
-
0
-
0
Profit and loss reserves
23
8,521,695
8,788,754
Total equity
8,521,695
8,788,754

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

The financial statements were approved by the board of directors and authorised for issue on 4 June 2024 and are signed on its behalf by:
04 June 2024
S Etheridge
Director
Company registration number 00153475 (England and Wales)
SATRA
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
14
7,000,000
7,000,000
Current assets
Debtors
18
4,105,867
3,321,410
Investments
19
1,017,689
1,971,669
Cash at bank and in hand
80,143
149,692
5,203,699
5,442,771
Creditors: amounts falling due within one year
20
(11,788)
(5,750)
Net current assets
5,191,911
5,437,021
Total assets less current liabilities
12,191,911
12,437,021
Net assets excluding pension liability
12,191,911
12,437,021
Defined benefit pension liability
22
(5,505,000)
(5,941,000)
Net assets
6,686,911
6,496,021
Capital and reserves
Called up share capital
-
0
-
0
Profit and loss reserves
23
6,686,911
6,496,021
Total equity
6,686,911
6,496,021

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 £135,890 (2022 - £350,623 loss).

The financial statements were approved by the board of directors and authorised for issue on 4 June 2024 and are signed on its behalf by:
04 June 2024
S Etheridge
Director
Company registration number 00153475 (England and Wales)
SATRA
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
-
0
7,374,361
7,374,361
Year ended 31 December 2022:
Loss for the year
-
(516,252)
(516,252)
Other comprehensive income:
Actuarial gains on defined benefit plans
-
1,869,000
1,869,000
Currency translation differences
-
(100,454)
(100,454)
Tax relating to other comprehensive income
-
162,099
162,099
Total comprehensive income
-
1,414,393
1,414,393
Balance at 31 December 2022
-
0
8,788,754
8,788,754
Year ended 31 December 2023:
Loss for the year
-
(199,041)
(199,041)
Other comprehensive income:
Actuarial gains on defined benefit plans
-
376,000
376,000
Currency translation differences
-
(176,518)
(176,518)
Tax relating to other comprehensive income
-
(267,500)
(267,500)
Total comprehensive income
-
(267,059)
(267,059)
Balance at 31 December 2023
-
0
8,521,695
8,521,695
SATRA
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
-
0
4,243,644
4,243,644
Year ended 31 December 2022:
Loss for the year
-
(350,623)
(350,623)
Other comprehensive income:
Actuarial gains on defined benefit plans
-
2,603,000
2,603,000
Total comprehensive income
-
2,252,377
2,252,377
Balance at 31 December 2022
-
0
6,496,021
6,496,021
Year ended 31 December 2023:
Profit for the year
-
135,890
135,890
Other comprehensive income:
Actuarial gains on defined benefit plans
-
55,000
55,000
Total comprehensive income
-
190,890
190,890
Balance at 31 December 2023
-
0
6,686,911
6,686,911
SATRA
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
25
(1,246,150)
(614,801)
Interest paid
(245,660)
(143,000)
Net cash outflow from operating activities
(1,491,810)
(757,801)
Investing activities
Purchase of tangible fixed assets
(1,084,249)
(907,929)
Proceeds from disposal of tangible fixed assets
45,208
76,128
Proceeds from disposal of investments
1,000,000
-
Interest received
11,106
73,575
Dividends received
39,587
-
0
Net cash generated from/(used in) investing activities
11,652
(758,226)
Net decrease in cash and cash equivalents
(1,480,158)
(1,516,027)
Cash and cash equivalents at beginning of year
4,016,045
5,532,072
Cash and cash equivalents at end of year
2,535,887
4,016,045
SATRA
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

SATRA (“the company”) is a private company limited by guarantee and incorporated in England and Wales. The registered office is Wyndham Way, Telford Way Industrial Estate, Kettering, Northamptonshire, NN16 8SD.

 

The group consists of SATRA 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.

The parent company has taken advantage of section 408 of the Companies Act 2006 and has not included its own profit and loss account in these financial statements. The parent company's profit for the year was £135,890 (2022 £350,623 loss).

As permitted by FRS 102 the company has not included a cash flow statement in accordance with the requirements of Section 7, Statement of Cash Flows.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company SATRA together with all entities controlled by the parent company (its subsidiaries).

 

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

 

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

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

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.

 

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.

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

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.

Turnover from the rendering of services is normally recognised when the work is complete but for material contracts turnover will be recognised in relation to the proportion of the service delivered as at the period end.

1.5
Intangible fixed assets other than goodwill

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

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

Software
5 years
Goodwill
10 years
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
50 years
Plant and equipment
5 years
Fixtures and fittings
10 years
Computers
3 years
Motor vehicles
4 years
Refurbishments
5 years

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

In the parent company financial statements, investments in subsidiaries 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.

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.

SATRA
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -

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.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

1.10
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.

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.

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.

SATRA
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Basic financial liabilities

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

 

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

 

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

Derecognition of financial liabilities

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

1.12
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
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.

SATRA
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

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.

1.15
Retirement benefits

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

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

 

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

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.

SATRA
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.16

Foreign currency translation

Functional currency and presentation currency

The individual financial statements of each group entity are presented in the currency of the primary economic environment in which the entity operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position are presented in sterling (£).

 

Transactions and balances

In preparing the financial statements of the individual entities, transactions in currencies other than the functional currency of the individual entities (foreign currencies) are recognised at the spot rate at the dates of the transactions, or at an average rate where this rate approximates the actual rate at the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

 

Exchange difference are recognised in the profit or loss in the period in which they arise. However, in the consolidated financial statements exchange differences arising on monetary items that form part of the net investment in foreign operation are recognised in other comprehensive income and are not reclassified to profit or loss.

 

Translation of group companies

For the purpose of presenting consolidated financial statements, the assets and liabilities of the group's foreign operations are translated from their functional currency to sterling using the closing exchange rate. Income and expenses are translated using the average rate for the period, unless exchange rates fluctuated significantly during the period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising on the translation of group companies are recognised in other comprehensive income and are not reclassified to profit and loss.

 

Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the closing rate.

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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Defined benefit pension scheme

The measurement of obligations under defined benefit pension arrangements is subject to a number of assumptions, details of which are given in the notes to the financial statements. These assumptions are determined with the benefit of appropriate professional advice.

SATRA
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 22 -
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.

Deferred tax

The group is subject to UK corporation tax and judgement is required in determining the provision for deferred taxation. The group recognises taxation assets and liabilities based upon estimates and assessments of many factors including judgements about the outcome of future events. Deferred tax assets are only recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or future taxable profits.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Goods
1,988,196
2,239,395
Other
13,487,257
13,700,021
15,475,453
15,939,416
2023
2022
£
£
Turnover analysed by geographical market
UK
2,870,504
2,907,627
Europe
3,843,066
2,252,395
Rest of world
8,761,883
10,779,394
15,475,453
15,939,416
2023
2022
£
£
Other revenue
Interest income
11,106
73,575
Dividends received
39,587
-
4
Operating loss
2023
2022
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange losses/(gains)
38,332
(335,771)
Depreciation of owned tangible fixed assets
918,089
915,025
Profit on disposal of tangible fixed assets
(11,738)
(31,800)
Amortisation of intangible assets
-
1,269
Operating lease charges
98,912
37,278
SATRA
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
6,038
5,750
Audit of the financial statements of the company's subsidiaries
42,082
38,259
48,120
44,009
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
Operational
203
201
-
-
Administration and support
54
59
-
-
Total
257
260
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
8,402,332
8,277,073
-
0
-
0
Social security costs
703,317
706,100
-
-
Pension costs
549,487
522,054
-
0
-
0
9,655,136
9,505,227
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
402,474
391,155
Company pension contributions to defined contribution schemes
40,521
40,585
442,995
431,740
SATRA
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Directors' remuneration
(Continued)
- 24 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
133,551
133,833
Company pension contributions to defined contribution schemes
15,575
14,900
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
9,638
5,090
Other interest income
1,468
68,485
Total interest revenue
11,106
73,575
Other income from investments
Dividends received
39,587
-
0
Total income
50,693
73,575
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
9,638
5,090
9
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Net interest on the net defined benefit liability
272,000
163,000
Other interest
(26,340)
(20,000)
Total finance costs
245,660
143,000
10
Movement on investments
2023
2022
£
£
Amounts written back to/(written off) investments held at fair value
46,021
(240,975)
SATRA
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
110,712
11,691
Foreign current tax on profits for the current period
12,396
-
0
Total current tax
123,108
11,691
Deferred tax
Origination and reversal of timing differences
(705,398)
(301,054)
Total tax credit
(582,290)
(289,363)

On 1st April 2023, the main rate of corporation tax changed from 19% to 25%.

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

2023
2022
£
£
Loss before taxation
(781,331)
(805,615)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
(195,333)
(153,067)
Other permanent differences
(405,140)
(144,986)
Effect of overseas tax rates
18,183
8,690
Taxation credit
(582,290)
(289,363)

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
267,500
(162,099)
SATRA
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
12
Intangible fixed assets
Group
Software
Goodwill
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
396,187
172,000
568,187
Amortisation and impairment
At 1 January 2023 and 31 December 2023
396,187
172,000
568,187
Carrying amount
At 31 December 2023
-
0
-
0
-
0
At 31 December 2022
-
0
-
0
-
0
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
SATRA
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
13
Tangible fixed assets
Group
Freehold land and buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Refurbishments
Total
£
£
£
£
£
£
£
£
Cost
At 1 January 2023
9,374,562
260,698
7,217,473
242,011
483,278
281,665
196,530
18,056,217
Additions
-
0
548,475
396,499
925
44,687
39,354
54,309
1,084,249
Disposals
-
0
-
0
(5,324)
-
0
(27,754)
(29,450)
-
0
(62,528)
Transfers
-
0
(187,152)
186,760
-
0
-
0
-
0
-
0
(392)
Exchange adjustments
-
0
-
0
41,860
(1,498)
(37,645)
(2,036)
(9,793)
(9,112)
At 31 December 2023
9,374,562
622,021
7,837,268
241,438
462,566
289,533
241,046
19,068,434
Depreciation and impairment
At 1 January 2023
2,573,860
-
0
5,732,795
159,394
390,570
225,269
190,883
9,272,771
Depreciation charged in the year
170,544
-
0
689,317
15,255
19,811
18,848
4,314
918,089
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
-
0
(29,450)
-
0
(29,450)
Exchange adjustments
-
0
-
0
17,428
(771)
(22,109)
5,524
(2,955)
(2,883)
At 31 December 2023
2,744,404
-
0
6,439,540
173,878
388,272
220,191
192,242
10,158,527
Carrying amount
At 31 December 2023
6,630,158
622,021
1,397,728
67,560
74,294
69,342
48,804
8,909,907
At 31 December 2022
6,800,702
260,698
1,484,678
82,617
92,708
56,396
5,647
8,783,446
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
SATRA
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
5,000,000
5,000,000
Loans to subsidiaries
15
-
0
-
0
2,000,000
2,000,000
-
0
-
0
7,000,000
7,000,000
Movements in fixed asset investments
Company
Shares in subsidiaries
Loans to subsidiaries
Total
£
£
£
Cost or valuation
At 1 January 2023 and 31 December 2023
5,000,000
2,000,000
7,000,000
Carrying amount
At 31 December 2023
5,000,000
2,000,000
7,000,000
At 31 December 2022
5,000,000
2,000,000
7,000,000
15
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
SATRA Technology Centre Limited
United Kingdom
Ordinary
100.00
SATRA Technology Services (Dongguan) Ltd
China
Ordinary
100.00
SATRA Technology Europe Limited
Ireland
Ordinary
100.00
Hampden Test Equipment Limited
United Kingdom
Ordinary
97.00
SATRA Hong Kong Limited
Hong Kong
Ordinary
100.00
SATRA Quality Assurance Limited
United Kingdom
Ordinary
100.00
SATRA Services Limited
United Kingdom
Ordinary
100.00
16
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
1,017,689
1,971,669
1,017,689
1,971,669
SATRA
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
17
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
540,405
501,063
-
-
Work in progress
-
228,935
-
-
Finished goods and goods for resale
425,035
126,609
-
0
-
0
965,440
856,607
-
-
18
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,259,873
3,190,878
186,715
182,230
Corporation tax recoverable
15,460
15,460
-
0
-
0
Amounts owed by group undertakings
-
-
3,915,300
3,139,180
Other debtors
65,486
139,559
3,852
-
0
Prepayments and accrued income
1,116,839
1,087,145
-
0
-
0
4,457,658
4,433,042
4,105,867
3,321,410
Deferred tax asset (note 21)
-
0
194,702
-
0
-
0
4,457,658
4,627,744
4,105,867
3,321,410
Amounts falling due after more than one year:
Deferred tax asset (note 21)
632,600
-
0
-
0
-
0
Total debtors
5,090,258
4,627,744
4,105,867
3,321,410
19
Current asset investments
Group
Company
2023
2022
2023
2022
£
£
£
£
Unlisted investments
1,017,689
1,971,669
1,017,689
1,971,669
SATRA
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
20
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
2,305,794
1,720,218
-
0
-
0
Corporation tax payable
108,809
8,945
-
0
-
0
Other taxation and social security
299,296
302,917
-
-
Other creditors
17,164
112,804
-
0
-
0
Accruals and deferred income
3,202,027
3,751,477
11,788
5,750
5,933,090
5,896,361
11,788
5,750
21
Deferred taxation

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

Assets
Assets
2023
2022
Group
£
£
Accelerated capital allowances
(503,753)
(400,427)
Tax losses
1,486,774
677,800
Retirement benefit obligations
(350,421)
(82,671)
632,600
194,702
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 January 2023
(194,702)
-
Credit to profit or loss
(705,398)
-
Charge to other comprehensive income
267,500
-
Asset at 31 December 2023
(632,600)
-

The deferred tax asset set out above is not expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period. The deferred tax liability set out above is not expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

SATRA
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
549,487
522,054

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

The group operates a funded defined benefit pension scheme (SATRA (1972) Pension Scheme) for the benefit of the employees and directors who are members. The assets of the scheme are administered by the Trustees in a fund independent from those of the group. The scheme was closed to new members with effect from 1 October 2001.

 

The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation were carried out at 12 January 2024 by Marcus Johansson (First Actuarial LLP), Fellow of the Institute of Actuaries. The present value of the defined benefit obligation, the related current service cost and past service cost were measured using the projected unit credit method.

2023
2022
Key assumptions
%
%
Discount rate
4.60
4.85
Expected rate of increase of pensions in payment
2.15-3.35
2.15-3.35
Expected rate of salary increases
1.00
1.00
Expected rate of increase of pensions in deferment
2.45
2.45
Inflation assumptions RPI
3.05
3.15
Inflation assumptions CPI
2.45
2.45
Mortality assumptions
2023
2022

Assumed life expectations on retirement at age 65:

Years
Years
Currently aged 65
- Males
86.3
86.8
- Females
88.6
89.0
Currently aged 45
- Males
87.5
88.1
- Females
90.0
90.4
SATRA
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
22
Retirement benefit schemes
(Continued)
- 32 -

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
(25,497,000)
(25,150,000)
Fair value of plan assets
21,433,000
19,579,604
Deficit in scheme
(4,064,000)
(5,570,396)
Defined benefit scheme - company

The company operates a defined benefit scheme for qualifying employees.

 

The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation were carried out at 18 January 2023 by Marcus Johansson (First Actuarial LLP), Fellow of the Institute of Actuaries. The present value of the defined benefit obligation, the related current service cost and past service cost were measured using the projected unit credit method.

2023
2022
Key assumptions
%
%
Discount rate
4.60
4.85
Expected rate of increase of pensions in payment
2.15-3.35
2.15-3.35
Expected rate of salary increases
1.00
1.00
Expected rate of increase of pensions in deferment
2.45
2.45
Inflation assumptions RPI
3.05
3.15
Inflaiton assumptions CPI
2.45
2.45
Mortality assumptions
2023
2022

Assumed life expectations on retirement at age 65:

Years
Years
Currently aged 65
- Males
86.3
86.8
- Females
88.6
89.0
Currently aged 45
- Males
87.5
88.1
- Females
90.0
90.4
SATRA
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
22
Retirement benefit schemes
(Continued)
- 33 -

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

Company
2023
2022
£
£
Present value of defined benefit obligations
(13,604,000)
(13,631,000)
Fair value of plan assets
8,099,000
7,690,000
Deficit in scheme
(5,505,000)
(5,941,000)
Total liability recognised
5,505,000
5,941,000
Group
2023
2022

Amounts recognised in the profit and loss account

£
£
Current service cost
73,000
78,000
Net interest on net defined benefit liability/(asset)
143,000
151,000
Total costs
216,000
229,000
Group
2023
2022

Amounts taken to other comprehensive income

£
£
Actual return on scheme assets
(7,937,000)
1,863,000
Actuarial changes related to obligations
9,806,000
1,528,000
Total costs
1,869,000
3,391,000
Group
Company
2023
2023

Movements in the present value of defined benefit obligations

£
£
Liabilities at 1 January 2023
(25,150,396)
(13,631,000)
Current service cost
(39,000)
-
Benefits paid
1,085,000
880,000
Contributions from scheme members
(19,000)
-
Actuarial gains and losses
(528,000)
(287,000)
Interest cost
(1,187,000)
(638,000)
Other
341,000
72,000
At 31 December 2023
(25,497,396)
(13,604,000)

The defined benefit obligations arise from plans which are wholly or partly funded.

SATRA
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
22
Retirement benefit schemes
(Continued)
- 34 -
Group
Company
2023
2023

Movements in the fair value of plan assets

£
£
Fair value of assets at 1 January 2023
19,580,000
7,690,000
Interest income
950,000
366,000
Return on plan assets (excluding amounts included in net interest)
904,000
342,000
Benefits paid
(1,085,000)
(880,000)
Contributions by the employer
1,406,000
653,000
Contributions by scheme members
19,000
-
Other
(341,000)
(72,000)
At 31 December 2023
21,433,000
8,099,000

The actual return on plan assets was a gain of £376,000 (2022 £1,869,000)

23
Reserves
Profit and loss reserves

Movement on reserves are shown in the statements of changes in equity. Other comprehensive income comprises the actuarial gain and losses in respect of defined benefit scheme and related deferred tax.

 

Foreign exchange translation difference comprises differences arising from the translation of financial statements of the group's foreign entities into sterling.

 

Profit and loss account includes all current and prior period retained profits and losses.

24
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
1,554
3,108
-
-
Between two and five years
1,683
3,237
-
-
3,237
6,345
-
-
SATRA
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
25
Cash absorbed by group operations
2023
2022
£
£
Loss for the year after tax
(199,041)
(516,252)
Adjustments for:
Tax relating to other comprehensive income
(267,500)
162,099
Taxation charged
99,864
26,394
Finance costs
245,660
143,000
Investment income
(50,693)
(73,575)
FRS 102 adjustment in respect of pension costs
(1,130,000)
77,396
Gain on disposal of tangible fixed assets
(11,738)
(31,800)
Amortisation and impairment of intangible assets
-
1,269
Depreciation and impairment of tangible fixed assets
918,089
915,025
Foreign exchange translation difference
(170,289)
(103,924)
Other gains and losses
(46,021)
240,975
Movements in working capital:
Increase in stocks
(108,833)
(288,607)
Increase in debtors
(462,513)
(1,308,730)
(Decrease)/increase in creditors
(63,135)
141,929
Cash absorbed by operations
(1,246,150)
(614,801)
26
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
4,016,045
(1,480,158)
2,535,887
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