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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: J L Dahlgren
W.R. Dahlgren
Mrs J Carter





SECRETARY: D P Waterkotte





REGISTERED OFFICE: The Causeway
Broadway Business Park
Chadderton
OLDHAM
Lancashire
OL9 9XD





REGISTERED NUMBER: 03153600 (England and Wales)





AUDITORS: Wyatt Morris Golland Ltd
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:





W.R. Dahlgren - Director


6 May 2024

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.

J L Dahlgren
W.R. Dahlgren
Mrs J Carter

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:





W.R. Dahlgren - Director


6 May 2024

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.




Patricia A Richards F.C.A. (Senior Statutory Auditor)
for and on behalf of Wyatt Morris Golland Ltd
Statutory Auditors
Park House
200 Drake Street
Rochdale
Lancashire
OL16 1PJ

6 May 2024

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 3,391,917 3,054,063
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 7,199,162 4,435,641
Investments 10 199,565 199,565
7,398,727 4,635,206

CURRENT ASSETS
Stocks 11 7,584,454 9,211,931
Debtors 12 5,743,553 5,896,606
Cash at bank and in hand 30,940,035 28,405,285
44,268,042 43,513,822
CREDITORS
Amounts falling due within one year 13 3,528,832 3,673,547
NET CURRENT ASSETS 40,739,210 39,840,275
TOTAL ASSETS LESS CURRENT
LIABILITIES

48,137,937

44,475,481

PROVISIONS FOR LIABILITIES 16 118,643 128,073
NET ASSETS 48,019,294 44,347,408

CAPITAL AND RESERVES
Called up share capital 17 650,000 650,000
Retained earnings 18 47,369,294 43,697,408
SHAREHOLDERS' FUNDS 48,019,294 44,347,408

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 6 May 2024 and were signed on its behalf by:





W.R. Dahlgren - Director


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 650,000 40,603,013 41,253,013

Changes in equity
Total comprehensive income - 3,094,395 3,094,395
Balance at 31 December 2022 650,000 43,697,408 44,347,408

Changes in equity
Total comprehensive income - 3,671,886 3,671,886
Balance at 31 December 2023 650,000 47,369,294 48,019,294

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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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 104 95

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 428,661
AMORTISATION
At 1 January 2023
and 31 December 2023 428,661
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 5,781,613 2,280,160 2,420,153
Additions 3,198,302 36,944 40,928
Disposals - - -
At 31 December 2023 8,979,915 2,317,104 2,461,081
DEPRECIATION
At 1 January 2023 2,373,877 1,965,886 1,773,461
Charge for year 301,149 107,116 102,629
Eliminated on disposal - - -
At 31 December 2023 2,675,026 2,073,002 1,876,090
NET BOOK VALUE
At 31 December 2023 6,304,889 244,102 584,991
At 31 December 2022 3,407,736 314,274 646,692

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

Company

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 January 2023 55,089 536,946 11,073,961
Additions 29,995 9,866 3,316,035
Disposals (18,590 ) - (18,590 )
At 31 December 2023 66,494 546,812 14,371,406
DEPRECIATION
At 1 January 2023 31,653 493,443 6,638,320
Charge for year 13,999 27,621 552,514
Eliminated on disposal (18,590 ) - (18,590 )
At 31 December 2023 27,062 521,064 7,172,244
NET BOOK VALUE
At 31 December 2023 39,432 25,748 7,199,162
At 31 December 2022 23,436 43,503 4,435,641

10. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 January 2023
and 31 December 2023 199,565
NET BOOK VALUE
At 31 December 2023 199,565
At 31 December 2022 199,565

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiary

Airtech Composite Materials India Private Limited
Registered office: House No. S/15, Bldg. A/1 Jairam Comm., Complex, Neugi Nagar, Fontainhas, Panjim, North Goa, 403001
Nature of business: Manufacturing and trading of composite materials
%
Class of shares: holding
Equity shares of Rs 10 each 99.99
31.3.23 31.3.22
£    £   
Aggregate capital and reserves 118,004 15,000
Loss for the year/period (45,220 ) (4,750 )

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 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 4,974,688 5,425,710
VAT - 203,670 - 203,670
Prepayments 1,005,911 284,284 768,865 267,226
5,980,599 5,913,664 5,743,553 5,896,606

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade creditors 1,925,769 2,298,380 1,823,003 2,293,127
Tax 444,470 402,727 444,470 402,727
Social security and other taxes 357,684 260,847 357,684 260,847
VAT 170,947 - 170,947 -
Accrued expenses 917,268 717,685 732,728 716,846
3,816,138 3,679,639 3,528,832 3,673,547

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 119,893 36,491

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 128,073
Credit to Income Statement during year (9,430 )
Balance at 31 December 2023 118,643

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
325,000 Ordinary £1 325,000 325,000
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 43,697,408
Profit for the year 3,671,886
At 31 December 2023 47,369,294


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 395C (750F) .

The financial statements are presented in Sterling however the functional currency of the holding company is US Dollars.