REGISTERED NUMBER: 03153600 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
AIRTECH ADVANCED MATERIALS UK LIMITED |
REGISTERED NUMBER: 03153600 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
AIRTECH ADVANCED MATERIALS UK LIMITED |
AIRTECH ADVANCED MATERIALS UK LIMITED (REGISTERED NUMBER: 03153600) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Consolidated Income Statement | 7 |
Consolidated Other Comprehensive Income | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Financial Statements | 15 |
AIRTECH ADVANCED MATERIALS UK LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Park House |
200 Drake Street |
Rochdale |
Lancashire |
OL16 1PJ |
AIRTECH ADVANCED MATERIALS UK LIMITED (REGISTERED NUMBER: 03153600) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
The principal activity of the Group is the manufacture and distribution of vacuum bagging materials, composite tooling materials, along with innovative resins for 3D Printing for the composites industry. |
Business sectors that we supply include Aerospace, Wind energy, Marine, Automotive and General FRP Composites. |
The UK holding company is situated at Chadderton, Oldham the business also provides custom products in kit form and pre-cut to component shape to help assist savings through lean manufacturing and waste management. |
2023 was a period in which the business continued its recovery post-covid, and revenue increased, helped by recoveries in most market sector areas including Aerospace which is still a key area of the business. |
Employment remained consistent with 2022, using efficiencies to accommodate the increase in work. |
Sustainability has been a key focus in 2023 and will continue to be high priority. |
The group maintained a very healthy balance sheet and the Directors consider the group results for the year and its financial position at 31st December 2023 as very satisfactory. |
The key financial performance indicators are as follows: |
31 Dec 2023 | 31 Dec 2022 | Change £ | Change % |
£ | £ |
Turnover | 27,691,371 | 26,744,969 | 946,402 | 3.5 |
Profit after Tax | 3,391,917 | 3,054,063 | 337,854 | 11.0 |
Total Assets | 53,309,047 | 46,491,406 | 6,817,641 | 14.5 |
Total Liabilities | 5,610,054 | 2,184,330 | 3,425,724 | 157.0 |
Net Assets | 47,698,993 | 44,307,076 | 3,391,917 | 7.5 |
PRINCIPAL RISKS AND UNCERTAINTIES |
As will all companies we have seen an escalation in overheads, especially energy costs. There have also been significant impacts from raw material and freight cost increases. The Group is managing the costs and proactively finding solutions. |
Extraneous risks such as pandemics, IT failure and cyber attack could create significant disruption, but the group has a robust crisis management system in place. There has also been a significant investment in IT protection and processes |
FUTURE DEVELOPMENTS: |
The Group has a solid platform to build from and continues to invest in technical advancements and sustainable solutions for the future. Including the holding company will be supporting Airtech India in its early stages of operation expanding the groups geographical footprint into an important region for future growth. |
ON BEHALF OF THE BOARD: |
AIRTECH ADVANCED MATERIALS UK LIMITED (REGISTERED NUMBER: 03153600) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
RESEARCH AND DEVELOPMENT |
During 2023 the company continued to undertake research and development into it's products as part of its normal development. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
The entire share capital of the company is owned by Airtech International Inc. which is a U.S. company. Mr.W.R.Dahlgren, his wife and the Dahlgren Family Trust hold 100% of the share capital of Airtech International Inc. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Wyatt Morris Golland Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
AIRTECH ADVANCED MATERIALS UK LIMITED |
Opinion |
We have audited the financial statements of Airtech Advanced Materials UK Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, 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, 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: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's profit 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
AIRTECH ADVANCED MATERIALS UK LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' 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 a Report of the Auditors 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: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
-the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
-we identified the laws and regulations applicable to the company through discussions with directors and other management; |
-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 taxation legislation and |
-we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence where necessary, |
-identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
-making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud and |
-considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
-performed analytical procedures to identify any unusual or unexpected relationships; |
-tested journal entries to identify unusual transactions; |
-assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
-investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
-agreeing financial statement disclosures to underlying supporting documentation; |
-enquiring of management as to actual and potential litigation and claims; and |
-reviewing correspondence with HMRC. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
AIRTECH ADVANCED MATERIALS UK LIMITED |
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 a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditors |
Park House |
200 Drake Street |
Rochdale |
Lancashire |
OL16 1PJ |
AIRTECH ADVANCED MATERIALS UK LIMITED (REGISTERED NUMBER: 03153600) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
TURNOVER | 27,691,371 | 26,744,969 |
Cost of sales | 18,886,001 | 18,630,566 |
GROSS PROFIT | 8,805,370 | 8,114,403 |
Distribution costs | 473,055 | 403,766 |
Administrative expenses | 4,916,511 | 4,261,960 |
5,389,566 | 4,665,726 |
OPERATING PROFIT | 4 | 3,415,804 | 3,448,677 |
Interest receivable and similar income | 1,184,449 | 399,109 |
4,600,253 | 3,847,786 |
Interest payable and similar expenses | 5 | 48,296 | 220 |
PROFIT BEFORE TAXATION | 4,551,957 | 3,847,566 |
Tax on profit | 6 | 1,160,040 | 793,503 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 3,391,917 | 3,054,063 |
AIRTECH ADVANCED MATERIALS UK LIMITED (REGISTERED NUMBER: 03153600) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 3,391,917 | 3,054,063 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
3,391,917 |
3,054,063 |
Total comprehensive income attributable to: |
Owners of the parent | 3,391,917 | 3,054,063 |
AIRTECH ADVANCED MATERIALS UK LIMITED (REGISTERED NUMBER: 03153600) |
CONSOLIDATED BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 | - | - |
Tangible assets | 9 | 10,068,232 | 6,173,382 |
Investments | 10 | - | - |
10,068,232 | 6,173,382 |
CURRENT ASSETS |
Stocks | 11 | 7,584,454 | 9,211,931 |
Debtors | 12 | 5,980,599 | 5,913,664 |
Cash at bank and in hand | 33,491,900 | 28,872,068 |
47,056,953 | 43,997,663 |
CREDITORS |
Amounts falling due within one year | 13 | 3,816,138 | 3,679,639 |
NET CURRENT ASSETS | 43,240,815 | 40,318,024 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
53,309,047 |
46,491,406 |
CREDITORS |
Amounts falling due after more than one year | 14 | (5,491,411 | ) | (2,056,257 | ) |
PROVISIONS FOR LIABILITIES | 16 | (118,643 | ) | (128,073 | ) |
NET ASSETS | 47,698,993 | 44,307,076 |
CAPITAL AND RESERVES |
Called up share capital | 17 | 650,000 | 650,000 |
Retained earnings | 18 | 47,048,993 | 43,657,076 |
SHAREHOLDERS' FUNDS | 47,698,993 | 44,307,076 |
The financial statements were approved by the Board of Directors and authorised for issue on 6 May 2024 and were signed on its behalf by: |
W.R. Dahlgren - Director |
AIRTECH ADVANCED MATERIALS UK LIMITED (REGISTERED NUMBER: 03153600) |
COMPANY BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 16 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 3,671,886 | 3,094,395 |
The financial statements were approved by the Board of Directors and authorised for issue on |
AIRTECH ADVANCED MATERIALS UK LIMITED (REGISTERED NUMBER: 03153600) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 | 650,000 | 40,603,013 | 41,253,013 |
Changes in equity |
Total comprehensive income | - | 3,054,063 | 3,054,063 |
Balance at 31 December 2022 | 650,000 | 43,657,076 | 44,307,076 |
Changes in equity |
Total comprehensive income | - | 3,391,917 | 3,391,917 |
Balance at 31 December 2023 | 650,000 | 47,048,993 | 47,698,993 |
AIRTECH ADVANCED MATERIALS UK LIMITED (REGISTERED NUMBER: 03153600) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2023 |
AIRTECH ADVANCED MATERIALS UK LIMITED (REGISTERED NUMBER: 03153600) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 5,617,906 | (478,033 | ) |
Interest paid | (48,296 | ) | (220 | ) |
Tax paid | (1,127,727 | ) | (574,630 | ) |
Net cash from operating activities | 4,441,883 | (1,052,883 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (4,447,779 | ) | (1,884,377 | ) |
Sale of tangible fixed assets | 6,125 | 500 |
Interest received | 1,184,449 | 399,109 |
Net cash from investing activities | (3,257,205 | ) | (1,484,768 | ) |
Cash flows from financing activities |
New loans in year | 3,435,154 | 2,056,257 |
Net cash from financing activities | 3,435,154 | 2,056,257 |
Increase/(decrease) in cash and cash equivalents | 4,619,832 | (481,394 | ) |
Cash and cash equivalents at beginning of year | 2 | 28,872,068 | 29,353,462 |
Cash and cash equivalents at end of year | 2 | 33,491,900 | 28,872,068 |
AIRTECH ADVANCED MATERIALS UK LIMITED (REGISTERED NUMBER: 03153600) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 4,551,957 | 3,847,566 |
Depreciation charges | 552,929 | 533,568 |
Profit on disposal of fixed assets | (6,125 | ) | (500 | ) |
Finance costs | 48,296 | 220 |
Finance income | (1,184,449 | ) | (399,109 | ) |
3,962,608 | 3,981,745 |
Decrease/(increase) in stocks | 1,627,477 | (3,324,790 | ) |
Increase in trade and other debtors | (66,935 | ) | (1,986,297 | ) |
Increase in trade and other creditors | 94,756 | 851,309 |
Cash generated from operations | 5,617,906 | (478,033 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 33,491,900 | 28,872,068 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 28,872,068 | 29,353,462 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 28,872,068 | 4,619,832 | 33,491,900 |
28,872,068 | 4,619,832 | 33,491,900 |
Total | 28,872,068 | 4,619,832 | 33,491,900 |
AIRTECH ADVANCED MATERIALS UK LIMITED (REGISTERED NUMBER: 03153600) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Airtech Advanced Materials UK Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated financial statements include the financial statements of the company and its subsidiary undertaking made up to 31 December 2023. A subsidiary is an entity that is controlled by the parent. |
Under Section 408 of the Companies Act 2006 the company is exempt from the requirement to present its own profit and loss account. |
Revenue recognition |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. |
The group recognises revenue when the amount of revenue can be measured reliably, when it is probable that future economic benefits will flow to the entity and when the risks and rewards of ownership have passed to the customer. This typically happens when goods are delivered and legal title has passed |
Goodwill |
Where purchased goodwill is capitalised it is amortised over the expected useful economic life. |
Goodwill bought to-date has been amortised over 5 years and 10 years. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Depreciation is provided, at the following annual rates in order to write off each asset over its estimated useful life:- |
Long leasehold | - | 4% on cost |
Plant and machinery | - | 10%, 12.5%, 20% and 33 1/3% on cost |
Fixtures and fittings | - | 10%, 20% and 33 1/3% on cost |
Computers | - | 33 1/3% and 20% on cost |
Motor vehicles | - | 33 1/3% and 25% on cost less |
residual value |
At the balance sheet date the Group reviews the carrying amount of the property, plant & equipment to determine whether there is any indication that any items of property, plant & equipment have suffered an impairment loss. If any indication exists, the recoverable amount of an 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 the asset the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately. |
Where the impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased amount does not exceed the carrying amount that would have been determined (net of depreciation)had no impairment loss been recognised on the asset in prior years. A reversal of an impairment is recognised as income immediately. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
AIRTECH ADVANCED MATERIALS UK LIMITED (REGISTERED NUMBER: 03153600) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. Although undertaken the group does not separately identify the costs. |
Foreign currencies |
Transactions in foreign currencies, assets and liabilities are recorded at the exchange rate ruling on the dates of those transactions, except foreign currency bank accounts which are translated into sterling at the year end rate. Profits and losses on exchange arising in the normal course of trading are dealt with through the profit and loss account. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Financial instruments |
The following assets and liabilities are classified as financial instruments - trade debtors, trade creditors, bank loans, director's loans and forward currency contracts (derivatives). |
Bank loans are initially measured at the present value of future payments and subsequently at amortised cost using the effective interest method. |
Director's loans (being repayable on demand), trade receivables and trade payables are measured at the undiscounted amount of the cash and other consideration expected to be paid or received. |
Forward currency contracts are derivative financial instruments. They are measured at fair value. Gains and losses arising from changes in the fair value of derivative financial instruments are included in profit and loss in the period in which they arise. |
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 profit and loss. |
Borrowing costs |
Borrowing costs includes interest,amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. |
AIRTECH ADVANCED MATERIALS UK LIMITED (REGISTERED NUMBER: 03153600) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Critical accounting judgements and sources of estimation uncertainty |
In the application of the Group's accounting policies, management make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily available from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below: |
Estimated useful life and residual value of fixed assets |
As described above, depreciation of tangible fixed assets has been based on estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives and residual values are reviewed annually and revised as appropriate. Revisions take into account estimated useful lives used by other companies operating in the sector and actual asset lives and residual values, as evidenced by disposals during current and prior accounting periods. |
3. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 4,138,818 | 3,793,512 |
Social security costs | 395,315 | 369,911 |
Other pension costs | 119,244 | 98,455 |
4,653,377 | 4,261,878 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Warehouse, administration and sales |
2023 | 2022 |
£ | £ |
Directors' remuneration | 229,167 | 222,097 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 229,167 | 222,097 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 14,701 | 10,843 |
Depreciation - owned assets | 552,929 | 533,568 |
Profit on disposal of fixed assets | (6,125 | ) | (500 | ) |
Auditors' remuneration | 18,302 | 14,162 |
Auditors' remuneration for non audit work | 15,775 | 13,090 |
AIRTECH ADVANCED MATERIALS UK LIMITED (REGISTERED NUMBER: 03153600) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Loan | 48,296 | 220 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 1,169,470 | 802,727 |
Deferred tax | (9,430 | ) | (9,224 | ) |
Tax on profit | 1,160,040 | 793,503 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 4,551,957 | 3,847,566 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.520 % (2022 - 19 %) |
1,070,620 |
731,038 |
Effects of: |
Permanently disallowed expenses | 12,778 | 10,766 |
Temporarily disallowed expenses | (34,947 | ) | 8,036 |
Depreciation on land and buildings | 43,991 | 41,839 |
Super allowances in the year | (522 | ) | (5,839 | ) |
Temporary re deferred tax rate | 2,271 | - |
Overseas subsidiary losses for the year | 63,591 | 2,953 |
Exchange difference re investment in subsidiary | 2,258 | 4,710 |
Total tax charge | 1,160,040 | 793,503 |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
AIRTECH ADVANCED MATERIALS UK LIMITED (REGISTERED NUMBER: 03153600) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
8. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 | 428,661 |
AMORTISATION |
At 1 January 2023 |
and 31 December 2023 | 428,661 |
NET BOOK VALUE |
At 31 December 2023 | - |
At 31 December 2022 | - |
Company |
Goodwill |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
AMORTISATION |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
9. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Long | Plant and | and |
leasehold | machinery | fittings |
£ | £ | £ |
COST |
At 1 January 2023 | 7,519,354 | 2,280,160 | 2,420,153 |
Additions | 4,316,012 | 41,474 | 50,432 |
Disposals | - | - | - |
At 31 December 2023 | 11,835,366 | 2,321,634 | 2,470,585 |
DEPRECIATION |
At 1 January 2023 | 2,373,877 | 1,965,886 | 1,773,461 |
Charge for year | 301,149 | 107,163 | 102,997 |
Eliminated on disposal | - | - | - |
At 31 December 2023 | 2,675,026 | 2,073,049 | 1,876,458 |
NET BOOK VALUE |
At 31 December 2023 | 9,160,340 | 248,585 | 594,127 |
At 31 December 2022 | 5,145,477 | 314,274 | 646,692 |
AIRTECH ADVANCED MATERIALS UK LIMITED (REGISTERED NUMBER: 03153600) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
9. | TANGIBLE FIXED ASSETS - continued |
Group |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2023 | 55,089 | 536,946 | 12,811,702 |
Additions | 29,995 | 9,866 | 4,447,779 |
Disposals | (18,590 | ) | - | (18,590 | ) |
At 31 December 2023 | 66,494 | 546,812 | 17,240,891 |
DEPRECIATION |
At 1 January 2023 | 31,653 | 493,443 | 6,638,320 |
Charge for year | 13,999 | 27,621 | 552,929 |
Eliminated on disposal | (18,590 | ) | - | (18,590 | ) |
At 31 December 2023 | 27,062 | 521,064 | 7,172,659 |
NET BOOK VALUE |
At 31 December 2023 | 39,432 | 25,748 | 10,068,232 |
At 31 December 2022 | 23,436 | 43,503 | 6,173,382 |
Company |
Fixtures |
Long | Plant and | and |
leasehold | machinery | fittings |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
AIRTECH ADVANCED MATERIALS UK LIMITED (REGISTERED NUMBER: 03153600) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
9. | TANGIBLE FIXED ASSETS - continued |
Company |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
10. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: House No. S/15, Bldg. A/1 Jairam Comm., Complex, Neugi Nagar, Fontainhas, Panjim, North Goa, 403001 |
Nature of business: |
% |
Class of shares: | holding |
£ | £ |
Aggregate capital and reserves |
Loss for the year/period | ( |
) | ( |
) |
The company invested in the subsidiary in two tranches, being £15,187 on 31/03/22 and a further £184,378 on 30/09/22 resulting in a total as at 31/12/22 of £199,565. The aggregate reserves and loss are shown for the year ended 31/03/23, being the subsidiary company year end. |
AIRTECH ADVANCED MATERIALS UK LIMITED (REGISTERED NUMBER: 03153600) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
10. | FIXED ASSET INVESTMENTS - continued |
11. | STOCKS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Stocks | 7,584,454 | 9,211,931 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 4,974,688 | 5,425,710 |
VAT | - | 203,670 |
Prepayments | 1,005,911 | 284,284 |
5,980,599 | 5,913,664 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade creditors | 1,925,769 | 2,298,380 |
Tax | 444,470 | 402,727 |
Social security and other taxes | 357,684 | 260,847 |
VAT | 170,947 | - | 170,947 | - |
Accrued expenses | 917,268 | 717,685 |
3,816,138 | 3,679,639 |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Amounts owed to group undertakings | 5,491,411 | 2,056,257 |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Company |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Between one and five years |
16. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | 118,643 | 128,073 | 118,643 | 128,073 |
AIRTECH ADVANCED MATERIALS UK LIMITED (REGISTERED NUMBER: 03153600) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
16. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 128,073 |
Utilised during year | (9,430 | ) |
Balance at 31 December 2023 | 118,643 |
Company |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Credit to Income Statement during year | ( |
) |
Balance at 31 December 2023 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 325,000 | 325,000 |
Redeemable convertible |
ordinary | £1 | 325,000 | 325,000 |
650,000 | 650,000 |
The redeemable convertible shares became redeemable after the 30 April 2002 and may be converted into ordinary £1 shares. They carry no voting rights. The holders have confirmed that there is currently no intention to redeem the shares. |
18. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 January 2023 | 43,657,076 |
Profit for the year | 3,391,917 |
At 31 December 2023 | 47,048,993 |
Company |
Retained |
earnings |
£ |
At 1 January 2023 |
Profit for the year |
At 31 December 2023 |
AIRTECH ADVANCED MATERIALS UK LIMITED (REGISTERED NUMBER: 03153600) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
19. | PENSION COMMITMENTS |
The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £119,244 (2022- £98,455). |
Included in accruals for pension contributions not paid over amounted to £78,649 (2022 - £49,456). |
20. | ULTIMATE PARENT COMPANY |
The ultimate controlling entity is Airtech International Inc., a company incorporated in the U.S.A. Mr W. R. Dahlgren and his wife and family trust hold 100% of the share capital of Airtech International Inc. The registered office is 5700 Skylab Road, Huntington Beach, California 92647, USA. |
21. | CONTINGENT LIABILITIES |
The group had the following contingent liabilities at 31 December 2023:- |
A duty deferment bond to Customs and Excise; facility of £350,000 of which £250,000 was utilised at the year end. |
A Customs Comprehensive Guarantee (CCG) facility of £nil (this was closed 01/02/22). |
22. | CAPITAL COMMITMENTS |
2023 | 2022 |
£ | £ |
Contracted but not provided for in the |
financial statements | 378,778 | - |
23. | RELATED PARTY DISCLOSURES |
100% of the issued share capital of the company is owned by Airtech International Inc., a company incorporated in the U.S.A. Mr W. R. Dahlgren and his wife and family trust hold 100% of the share capital of |
Airtech International Inc. Airtech International Inc. are guarantor to the bank up to £625,000. |
During the year the company undertook transactions at arms length with the holding company and fellow subsidiaries, Airtech Europe SARL and Tianjin Airtech Advanced Materials as follows:- |
Sales | Purchases | Expenses recharged |
£ | £ | £ |
Airtech Advanced Materials UK Ltd. |
and Airtech Europe SARL | 4,428,347 | 3,964,790 | 124,458 |
Airtech Advanced Materials UK Ltd. |
and Airtech International Inc. | 17,051 | 2,619,051 | 38,971 |
Airtech Advanced Materials UK Ltd. |
and Tianjin Airtech Advanced Materials | 17,201 | 1,022,183 | nil |
Expenses recharged by Airtech Europe includes freight recharges amounting to £137,281 |
At the 31 December 2023 the trading balances were as follows:- |
Airtech Advanced Materials UK Ltd. owed Airtech Europe SARL £588,887 |
Airtech Advanced Materials UK Ltd. owed Airtech International Inc. £296,924 |
Airtech Advanced Materials UK Ltd. owed Tianjin Airtech Advanced Materials £242,663 |
Airtech Advanced Materials UK Ltd. was owed by Airtech Europe SARL £698,543 |
Airtech Advanced Materials UK Ltd. was owed by Airtech International £910 |
Airtech Advanced Materials UK Ltd. was owed by Tianjin Airtech Advanced Materials £nil |
During the year, a total of key management personnel compensation of £ 852,224 was paid. |
AIRTECH ADVANCED MATERIALS UK LIMITED (REGISTERED NUMBER: 03153600) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
24. | GENERAL INFORMATION |
Airtech Advanced Materials UK Ltd is a limited company incorporated in England. The address of the registered office and principal place of business are disclosed in the directors' report. |
The principal activity of the company is the manufacture and distribution of vacuum bagging and composite tooling materials for prepreg/autoclave, resin infusion, and wet lay-up processes up to 395•C (750•F) . |
The financial statements are presented in Sterling however the functional currency of the holding company is US Dollars. |