IRIS Accounts Production v24.2.0.383 14357559 Board of Directors 15.9.22 31.12.23 31.12.23 31 false true false false false true false iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh143575592022-09-14143575592023-12-31143575592022-09-152023-12-31143575592022-09-1414357559ns15:EnglandWales2022-09-152023-12-3114357559ns14:PoundSterling2022-09-152023-12-3114357559ns10:Director12022-09-152023-12-3114357559ns10:PrivateLimitedCompanyLtd2022-09-152023-12-3114357559ns10:SmallEntities2022-09-152023-12-3114357559ns10:AuditExempt-NoAccountantsReport2022-09-152023-12-3114357559ns10:SmallCompaniesRegimeForDirectorsReport2022-09-152023-12-3114357559ns10:SmallCompaniesRegimeForAccounts2022-09-152023-12-3114357559ns10:FullAccounts2022-09-152023-12-311435755912022-09-152023-12-3114357559ns10:Director22022-09-152023-12-3114357559ns10:RegisteredOffice2022-09-152023-12-3114357559ns5:CurrentFinancialInstruments2023-12-3114357559ns5:ShareCapital2023-12-3114357559ns5:RetainedEarningsAccumulatedLosses2023-12-3114357559ns5:NetGoodwill2022-09-152023-12-311435755912022-09-152023-12-3114357559ns5:OwnedAssets2022-09-152023-12-3114357559ns5:NetGoodwill2023-12-3114357559ns5:LandBuildings2022-09-152023-12-3114357559ns5:PlantMachinery2022-09-152023-12-3114357559ns5:MotorVehicles2022-09-152023-12-3114357559ns5:ComputerEquipment2022-09-152023-12-3114357559ns5:LandBuildings2023-12-3114357559ns5:PlantMachinery2023-12-3114357559ns5:MotorVehicles2023-12-3114357559ns5:ComputerEquipment2023-12-3114357559ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-12-311435755912022-09-152023-12-31
REGISTERED NUMBER: 14357559 (England and Wales)















Alma Engineering Xcel Limited

Directors' Report and

Financial Statements

for the period

15 September 2022 to 31 December 2023






Alma Engineering Xcel Limited (Registered number: 14357559)

Contents of the Financial Statements
for the period 15 September 2022 to 31 December 2023










Page

Company Information 1

Directors' Report 2

Income Statement 3

Balance Sheet 4

Notes to the Financial Statements 5


Alma Engineering Xcel Limited

Company Information
for the period 15 September 2022 to 31 December 2023







Directors: H Cuadrado
N J Rafferty





Registered office: 1 Ashton Road
Romford
Essex
RM3 8UH





Registered number: 14357559 (England and Wales)





Accountants: Cooper Parry Advisory Limited
New Derwent House
69-73 Theobalds Road
London
WC1X 8TA

Alma Engineering Xcel Limited (Registered number: 14357559)

Directors' Report
for the period 15 September 2022 to 31 December 2023


The directors present their report with the financial statements of the Company for the period 15 September 2022 to 31 December 2023.

Incorporation
The Company was incorporated on 15 September 2022 .

Principal activity
The principle activity of the Company during the year was the manufacture of engineered components.

Events since the end of the period
Information relating to events since the end of the period is given in the notes to the financial statements.

Directors
The directors who have held office during the period from 15 September 2022 to the date of this report are as follows:

H Cuadrado - appointed 15 September 2022
N J Rafferty - appointed 15 September 2022

Both the directors who are eligible offer themselves for election at the forthcoming first Annual General Meeting.

Results and dividends
The profit for the year, after taxation, amounted to £184,638.

The directors do not recommend the payment of a dividend for the financial year.

Qualifying third party indemnity provisions
The directors benefit from a qualifying indemnity provision in the form permitted by the Section 24 of the Companies Act 2006 in respect of certain third party actions against directors. No claim or notice of claim in respect of these indemnities has been received in the year. The qualifying indemnity provision was in force throughout the financial year and up to the date of approval of the Directors Report.

Going concern
The Company was incorporated on 15 September 2022 and is in the early stages of the product life cycle.

The Company made a profit during the year of £184,638 and had net current liability position of £2,100,612. In assessing the appropriateness of the going concern assumption, the directors have prepared detailed monthly cash flow forecasts for the period to 31 December 2024 and considered those cash flow forecasts alongside the financial support made available to the Company by Xcel Aerospace Limited who have agreed not to recall group creditor balances for at least 12 months from the signing of the financial statements.

Furthermore, the directors have reviewed the Company's current cash position and expected financial position and cash flow forecasts. They are of the opinion that the Company will generate sufficient operating cash flows to enable it to meet its liabilities as they full due for at least 12 months from the approval of the financial statements.

Having assessed the financial support available and the Company's liquidity outlook on the basis of revised forecasts, and after considering plausible downside scenarios, the directors have a reasonable expectation that the Company will be able to operate for at least 12 months from the date of approval of these financial statements and, consequently, have continued to prepare the financial statements on a going concern basis.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

On behalf of the board:





N J Rafferty - Director


8 September 2024

Alma Engineering Xcel Limited (Registered number: 14357559)

Income Statement
for the period 15 September 2022 to 31 December 2023

Notes £

Turnover 4 3,200,327

Cost of sales (2,091,623 )
Gross profit 1,108,704

Distribution costs (1,446 )
Administrative expenses (756,069 )
351,189

Other operating income 13,760
Operating profit 364,949


Interest payable and similar expenses (103,920 )
Profit before taxation 6 261,029

Tax on profit 7 (76,391 )
Profit for the financial period 184,638

Alma Engineering Xcel Limited (Registered number: 14357559)

Balance Sheet
31 December 2023

Notes £ £
Fixed assets
Intangible assets 8 1,401,141
Tangible assets 9 884,209
2,285,350

Current assets
Stocks 80,000
Debtors 10 618,808
Cash at bank and in hand 187,611
886,419
Creditors
Amounts falling due within one year 11 2,987,031
Net current liabilities (2,100,612 )
Total assets less current liabilities 184,738

Capital and reserves
Called up share capital 100
Retained earnings 184,638
184,738

The Company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 31 December 2023.

The members have not required the Company to obtain an audit of its financial statements for the period ended 31 December 2023 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:
(a)ensuring that the Company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the Company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the Company.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 8 September 2024 and were signed on its behalf by:





N J Rafferty - Director


Alma Engineering Xcel Limited (Registered number: 14357559)

Notes to the Financial Statements
for the period 15 September 2022 to 31 December 2023


1. Statutory information

Alma Engineering Xcel Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. Accounting policies

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Functional and presentational currency
The presentation of the financial statements is the Pound Sterling (£). Amounts in these financial statements are rounded to the nearest £.

Foreign currency translation

Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income within 'other operating income'.

Related party exemption
The Company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
- the Company has transferred the significant risks and rewards of ownership to the buyer;
- the Company retains neither continuing managerial involvement to the degree usually associated
with the ownership nor effective control over the goods sold;
- the amount of revenue can be measured reliably;
- it is probable that the Company will receive the consideration due under the transaction; and
- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years. The directors are of the opinion that this is the period over which the goodwill will give rise to future economic benefits.

Alma Engineering Xcel Limited (Registered number: 14357559)

Notes to the Financial Statements - continued
for the period 15 September 2022 to 31 December 2023


2. Accounting policies - continued

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

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

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

Depreciation is provided on the following basis:

Plant and machinery-20% on a straight line basis
Motor vehicles-20% on a straight line basis
Computer equipment-20% on a straight line basis

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.

Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Financial instruments
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

Alma Engineering Xcel Limited (Registered number: 14357559)

Notes to the Financial Statements - continued
for the period 15 September 2022 to 31 December 2023


2. Accounting policies - continued

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flow discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

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

Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice for not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date on acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in values.

Creditors
Short term creditors are measured at the transactional price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transactional costs, and are measured subsequently at amortised cost using the effective interest method.

Provisions and contingencies
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

Alma Engineering Xcel Limited (Registered number: 14357559)

Notes to the Financial Statements - continued
for the period 15 September 2022 to 31 December 2023


2. Accounting policies - continued

Going concern
The Company was incorporated on 15 September 2022 and is in the early stages of the product life cycle.

The Company made a profit during the year of £184,638 and had net current liability position of £2,100,612. In assessing the appropriateness of the going concern assumption, the directors have prepared detailed monthly cash flow forecasts for the period to 31 December 2024 and considered those cash flow forecasts alongside the financial support made available to the Company by Xcel Aerospace Limited who have agreed not to recall group creditor balances for at least 12 months from the signing of the financial statements.

Furthermore, the directors have reviewed the Company's current cash position and expected financial position and cash flow forecasts. They are of the opinion that the Company will generate sufficient operating cash flows to enable it to meet its liabilities as they full due for at least 12 months from the approval of the financial statements.

Having assessed the financial support available and the Company's liquidity outlook on the basis of revised forecasts, and after considering plausible downside scenarios, the directors have a reasonable expectation that the Company will be able to operate for at least 12 months from the date of approval of these financial statements and, consequently, have continued to prepare the financial statements on a going concern basis.

3. Critical accounting judgements and key sources of estimation uncertainty

In applying the accounting policies, the Directors are required to make judgements, estimates and assumptions affecting the carrying values 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, including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates and assumptions.

Significant judgments and estimates
An estimate or judgement may be considered critical if it involves matters that are highly uncertain or where different estimation methods could reasonably have been used, or if changes in the estimate that would have a material impact on the Company's results are likely to occur from period to period.

Key sources of estimation uncertainty
The directors consider that the estimation for the allowance for doubtful debts is a source of uncertainty. This estimate replies on a subjective assessment of the recoverability of each receivable. The directors regularly review aged receivables reports in order to inform this estimate.

Similarly the directors consider the estimation of the allowance for stock is critical. This estimate relies on an assessment of the net realisable value of the stocks. The directors review the age and potential obsolescence of stock in order to inform this estimate.

4. Turnover

The turnover and profit before taxation are attributable to the one principal activity of the Company.

An analysis of turnover by geographical market is given below:

£
United Kingdom87%
Europe5%
Rest of the World8%
100%

Alma Engineering Xcel Limited (Registered number: 14357559)

Notes to the Financial Statements - continued
for the period 15 September 2022 to 31 December 2023


5. Employees and directors

£
Wages and salaries931,516
Social security costs102,256
Other pension costs28,831
1,062,603

The average number of employees during the period was as follows:

Manufacturing24
Distribution2
Administrative5
31

6. Profit before taxation

The profit is stated after charging:

£
Depreciation - owned assets 22,000
Goodwill amortisation 141,400

7. Taxation

Analysis of the tax charge
No liability to UK corporation tax arose for the period ended 31 December 2023.

8. Intangible fixed assets
Goodwill
£
Cost
Additions 1,542,541
At 31 December 2023 1,542,541
Amortisation
Amortisation for period 141,400
At 31 December 2023 141,400
Net book value
At 31 December 2023 1,401,141

Alma Engineering Xcel Limited (Registered number: 14357559)

Notes to the Financial Statements - continued
for the period 15 September 2022 to 31 December 2023


9. Tangible fixed assets
Freehold Plant and Motor Computer
property machinery vehicles equipment Totals
£ £ £ £ £
Cost
Additions 813,750 87,814 1,939 2,706 906,209
At 31 December 2023 813,750 87,814 1,939 2,706 906,209
Depreciation
Charge for period - 17,561 1,939 2,500 22,000
At 31 December 2023 - 17,561 1,939 2,500 22,000
Net book value
At 31 December 2023 813,750 70,253 - 206 884,209

10. Debtors: amounts falling due within one year
£
Trade debtors 618,692
Other debtors 16
Called up share capital not paid 100
618,808

11. Creditors: amounts falling due within one year
£
Trade creditors 168,907
Amounts owed to group undertakings 1,875,528
Tax 76,391
Social security and other taxes 31,971
VAT 62,633
Other creditors 771,601
2,987,031

12. Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £28,831. Contributions totalling £6,778 were payable to the fund at the balance sheet date.

13. Post balance sheet events

In February 2024, the company entered a mortgage with Lloyds Bank and the properties are held as security.

In May 2024, the company entered into an invoice discounting facility with Lloyds Bank. There is a fixed charge held over the debtor book in respect of this facility. As at the date these financial statements have been approved, the facility remains undrawn.

14. Ultimate controlling party

The immediate parent undertaking the company is Xcel Aerospace Limited.

The ultimate parent undertaking of the Company is Captiva Venture Partners Limited, a private company limited by shares and incorporated and registered in England. The ultimate controlling party is Mr. Harry Cuadrado by virtue of his shareholding in Captiva Venture Partners Limited.