Company registration number 02753492 (England and Wales)
AIR TECHNOLOGY SYSTEMS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
AIR TECHNOLOGY SYSTEMS LIMITED
COMPANY INFORMATION
Director
Stephen Boon
Secretary
Caroline Hill
Company number
02753492
Registered office
8 Aston Court
Bromsgrove Technology Park
Bromsgrove
Worcestershire
B60 3AL
Auditor
BK Plus Audit Limited
Azzurri House
Walsall Road
Aldridge
Walsall
England
WS9 0RB
AIR TECHNOLOGY SYSTEMS LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 32
AIR TECHNOLOGY SYSTEMS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 1 -

The director presents his strategic report for the year ended 31 October 2023.

 

As we conclude a successful fiscal year, it is with great pleasure that we present the strategic report for Air Technology Systems Limited. This report highlights our significant achievements, strategic initiatives, and future outlook, underscoring our commitment to innovation, growth, and resilience in the HVAC industry.

Review of the business

It has been a year of recovery from the difficult year before. Our Jetflo department continued to bring in good projects and clients are demanding more climate friendly total solutions, which we are able to do. The Industrial department has been working assiduously to recover profitability with some success. Our Electrical department has now established itself with a great team and they are ready for next year to support the growth of the business. The Service and Maintenance department has again exceeded budget which is another great performance. Our first manufacturing unit had a fractured year with two clients collapsing, with this expected profits were not possible and we will work harder to improve the figures next year.

We work in specialist areas and regulated markets and are planning to push forward in new markets such as the nuclear markets and new specialties such as our first manufacturing unit. We are professionalising many of our activities and pushing ahead with important training and development, including high level management for some members of staff. We are changing the business from an entrepreneur led small business, to a truly entrepreneurial mid-sized business, with innovations happening at all levels.

The market prospects are excellent for the 2023/2024 year, with the continuing development of the warehouse and logistics markets and new work already secured in the pharmaceutical sector. The water industry AMP cycle will move to its next investment period with significant work opportunities, and investments should be improved. The UK economy is buoyant, with covid restrictions gone, low inflation and no materials difficulties. We are expecting another successful year in 2023/2024.

Principal risks and uncertainties

Economic Downturn

Despite the challenges posed by the economic environment, and the difficulties faced by many companies and individuals alike, our financial performance has been robust. The strategic initiatives we implemented have yielded positive results, contributing to revenue growth and improved profitability within the last 12 months. Looking ahead, we remain optimistic about the opportunities that lie ahead. We will continue to build on our strengths, leveraging our diversified product range and market presence. Our strategic priorities for the upcoming year include expanding our manufacturing capabilities, entering new markets, and further investing in our workforce and technological advancements.

Conclusion

In conclusion, Air Technology Systems Limited has made significant strides over the past year. Our strategic diversification, departmental focus, workforce expansion, and commitment to innovation have positioned us for continued success. We extend our gratitude to our dedicated employees, loyal customers, and stakeholders for their unwavering support.

On behalf of the board

Stephen Boon
Director
6 September 2024
AIR TECHNOLOGY SYSTEMS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -

The director presents his annual report and financial statements for the year ended 31 October 2023.

Principal activities

The principal activity of the company continued to be that of the design and project management organisation for the innovative supply, installation, service and maintenance of ventilation and odour control systems, across the full range of industries.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The director does not recommend payment of a further dividend.

Director

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

Stephen Boon
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Stephen Boon
Director
6 September 2024
AIR TECHNOLOGY SYSTEMS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

AIR TECHNOLOGY SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF AIR TECHNOLOGY SYSTEMS LIMITED
- 4 -
Opinion

We have audited the financial statements of Air Technology Systems Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

AIR TECHNOLOGY SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AIR TECHNOLOGY SYSTEMS LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

From the preliminary stages of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of audit procedures to mitigate those risks; ensuring that the audit evidence obtained is sufficient and appropriate to support our opinion.

 

In response to the risks identified, specific to this entity, we designed procedures which included, but were not limited to:

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

AIR TECHNOLOGY SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AIR TECHNOLOGY SYSTEMS LIMITED
- 6 -

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Christopher Hession C.A. (Senior Statutory Auditor)
For and on behalf of BK Plus Audit Limited
6 September 2024
Chartered Accountants
Statutory Auditor
Azzurri House
Walsall Road
Aldridge
Walsall
England
WS9 0RB
AIR TECHNOLOGY SYSTEMS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
12,586,224
11,866,931
Cost of sales
(7,674,083)
(8,377,202)
Gross profit
4,912,141
3,489,729
Administrative expenses
(4,868,385)
(3,940,327)
Other operating income
2,000
14,933
Operating profit/(loss)
4
45,756
(435,665)
Interest receivable and similar income
8
14,751
1,307
Interest payable and similar expenses
9
(212)
-
0
Profit/(loss) before taxation
60,295
(434,358)
Tax on profit/(loss)
10
12,163
97,874
Profit/(loss) for the financial year
23
72,458
(336,484)
Profit/(loss) for the financial year is all attributable to the owners of the parent company.
AIR TECHNOLOGY SYSTEMS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023
- 8 -
2023
2022
£
£
Profit/(loss) for the year
72,458
(336,484)
Other comprehensive income
-
-
Total comprehensive income for the year
72,458
(336,484)
Total comprehensive income for the year is all attributable to the owners of the parent company.
AIR TECHNOLOGY SYSTEMS LIMITED
GROUP BALANCE SHEET
AS AT 31 OCTOBER 2023
31 October 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
618,383
455,754
Current assets
Stocks
16
279,413
288,915
Debtors
17
3,292,036
3,032,504
Cash at bank and in hand
1,538,242
1,254,449
5,109,691
4,575,868
Creditors: amounts falling due within one year
18
(3,043,821)
2,566,436
Net current assets
2,065,870
2,009,432
Total assets less current liabilities
2,684,253
2,465,186
Provisions for liabilities
Deferred tax liability
19
52,003
5,394
(52,003)
(5,394)
Net assets
2,632,250
2,459,792
Capital and reserves
Called up share capital
21
11
11
Share premium account
22
109,366
9,366
Profit and loss reserves
23
2,522,873
2,450,415
Total equity
2,632,250
2,459,792
The financial statements were approved and signed by the director and authorised for issue on 6 September 2024
06 September 2024
Stephen Boon
Director
Company registration number 02753492 (England and Wales)
AIR TECHNOLOGY SYSTEMS LIMITED
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2023
31 October 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
453,559
283,595
Investments
14
207,100
207,100
660,659
490,695
Current assets
Stocks
16
242,924
257,385
Debtors
17
3,698,802
3,119,388
Cash at bank and in hand
1,517,310
1,250,597
5,459,036
4,627,370
Creditors: amounts falling due within one year
18
(2,977,686)
(2,438,448)
Net current assets
2,481,350
2,188,922
Total assets less current liabilities
3,142,009
2,679,617
Provisions for liabilities
Deferred tax liability
19
52,003
5,394
(52,003)
(5,394)
Net assets
3,090,006
2,674,223
Capital and reserves
Called up share capital
21
11
11
Share premium account
22
9,366
9,366
Profit and loss reserves
23
3,080,629
2,664,846
Total equity
3,090,006
2,674,223

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £415,783 (2022 - £122,130 loss).

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

The financial statements were approved and signed by the director and authorised for issue on 6 September 2024
06 September 2024
Stephen Boon
Director
Company registration number 02753492 (England and Wales)
AIR TECHNOLOGY SYSTEMS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 November 2021
10
-
0
2,997,926
2,997,936
(25)
2,997,911
Year ended 31 October 2022:
Loss and total comprehensive income
-
-
(336,511)
(336,511)
25
(336,486)
Issue of share capital
21
1
9,366
-
9,367
-
9,367
Dividends
11
-
-
(211,000)
(211,000)
-
(211,000)
Balance at 31 October 2022
11
9,366
2,450,415
2,459,792
-
2,459,792
Year ended 31 October 2023:
Profit and total comprehensive income
-
-
72,458
72,458
-
72,458
Issue of share capital
21
-
0
100,000
-
100,000
-
100,000
Balance at 31 October 2023
11
109,366
2,522,873
2,632,250
-
0
2,632,250
AIR TECHNOLOGY SYSTEMS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 November 2021
10
-
0
2,997,976
2,997,986
Year ended 31 October 2022:
Loss and total comprehensive income for the year
-
-
(122,130)
(122,130)
Issue of share capital
21
1
9,366
-
9,367
Dividends
11
-
-
(211,000)
(211,000)
Balance at 31 October 2022
11
9,366
2,664,846
2,674,223
Year ended 31 October 2023:
Profit and total comprehensive income
-
-
415,783
415,783
Balance at 31 October 2023
11
9,366
3,080,629
3,090,006
AIR TECHNOLOGY SYSTEMS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
27
468,077
(87,621)
Interest paid
(212)
-
0
Income taxes paid
(4,100)
(141,884)
Net cash inflow/(outflow) from operating activities
463,765
(229,505)
Investing activities
Purchase of tangible fixed assets
(310,971)
(335,802)
Proceeds from disposal of tangible fixed assets
28,002
44,752
Repayment of loans
(11,754)
(14,892)
Interest received
14,751
1,307
Net cash used in investing activities
(279,972)
(304,635)
Financing activities
Proceeds from issue of shares
-
9,367
Share issue costs
100,000
-
0
Dividends paid to equity shareholders
-
0
(211,000)
Net cash generated from/(used in) financing activities
100,000
(201,633)
Net increase/(decrease) in cash and cash equivalents
283,793
(735,773)
Cash and cash equivalents at beginning of year
1,254,449
1,990,222
Cash and cash equivalents at end of year
1,538,242
1,254,449
AIR TECHNOLOGY SYSTEMS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
28
533,629
(72,523)
Interest paid
(76)
-
0
Income taxes paid
-
0
(141,884)
Net cash inflow/(outflow) from operating activities
533,553
(214,407)
Investing activities
Purchase of tangible fixed assets
(292,518)
(148,958)
Proceeds from disposal of tangible fixed assets
22,681
44,752
Proceeds from disposal of subsidiaries
-
0
(207,025)
Repayment of loans
(11,754)
(13,661)
Interest received
14,751
1,307
Net cash used in investing activities
(266,840)
(323,585)
Financing activities
Proceeds from issue of shares
-
9,367
Dividends paid to equity shareholders
-
(211,000)
Net cash used in financing activities
-
(201,633)
Net increase/(decrease) in cash and cash equivalents
266,713
(739,625)
Cash and cash equivalents at beginning of year
1,250,597
1,990,222
Cash and cash equivalents at end of year
1,517,310
1,250,597
AIR TECHNOLOGY SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 15 -
1
Accounting policies
Company information

Air Technology Systems Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of Air Technology Systems Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Air Technology Systems Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

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

 

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

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

AIR TECHNOLOGY SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 16 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
Intangible fixed assets other than goodwill

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

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

Patents & licences
20% on cost
AIR TECHNOLOGY SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 17 -
1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Plant and equipment
10% or 20% on cost
Fixtures and fittings
15% or 33% on cost
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

AIR TECHNOLOGY SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 18 -
1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

AIR TECHNOLOGY SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 19 -
1.13
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

AIR TECHNOLOGY SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 20 -
Basic financial liabilities

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

 

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

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.14
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.15
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

AIR TECHNOLOGY SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 21 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

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

1.18
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.19
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

AIR TECHNOLOGY SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 22 -
3
Turnover and other revenue
2023
2022
£
£
Other revenue
Interest income
14,751
1,307
Grants received
2,000
13,713
4
Operating profit/(loss)
2023
2022
£
£
Operating profit/(loss) for the year is stated after charging/(crediting):
Exchange (gains)/losses
(2,371)
4,678
Research and development costs
3,019
2,000
Government grants
(2,000)
(13,713)
Depreciation of owned tangible fixed assets
140,048
107,941
Profit on disposal of tangible fixed assets
(19,708)
(36,812)
Operating lease charges
248,325
243,155
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
10,000
12,500
Audit of the financial statements of the company's subsidiaries
2,500
5,500
12,500
18,000
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Directors
1
1
1
1
Direct/administration staff
79
78
74
74
Total
80
79
75
75
AIR TECHNOLOGY SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
6
Employees
(Continued)
- 23 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,619,473
2,113,754
2,155,186
1,925,240
Social security costs
376,028
330,227
376,028
330,227
Pension costs
274,274
209,904
274,274
209,904
3,269,775
2,653,885
2,805,488
2,465,371
7
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
91,000
14,452
Company pension contributions to defined contribution schemes
70,000
35
161,000
14,487
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
14,336
1,249
Other interest income
415
58
Total income
14,751
1,307
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
14,336
1,249
9
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Other interest
212
-
AIR TECHNOLOGY SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 24 -
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
80,548
(62,326)
Deferred tax
Origination and reversal of timing differences
(92,711)
(35,548)
Total tax credit
(12,163)
(97,874)

The UK Corporation tax rate increased from 19% to 25% (with effect from the 1 April 2023) and this has, and will, have an consequential effect on the company's future tax charge.

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

2023
2022
£
£
Profit/(loss) before taxation
60,295
(434,358)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 22.52% (2022: 19.00%)
13,578
(82,528)
Tax effect of expenses that are not deductible in determining taxable profit
1,524
4,441
Tax effect of income not taxable in determining taxable profit
(4,438)
(10,995)
Unutilised tax losses carried forward
106,376
93,461
Adjustments in respect of prior years
-
0
(27)
Depreciation on assets not qualifying for tax allowances
31,539
20,509
Capital allowances claimed
(68,031)
(87,187)
Deferred tax movement
(92,711)
(35,548)
Taxation credit
(12,163)
(97,874)
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
-
211,000
AIR TECHNOLOGY SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 25 -
12
Intangible fixed assets
Group
Patents & licences
£
Cost
At 1 November 2022 and 31 October 2023
31,203
Amortisation and impairment
At 1 November 2022 and 31 October 2023
31,203
Carrying amount
At 31 October 2023
-
0
At 31 October 2022
-
0
Company
Patents & licences
£
Cost
At 1 November 2022 and 31 October 2023
31,203
Amortisation and impairment
At 1 November 2022 and 31 October 2023
31,203
Carrying amount
At 31 October 2023
-
0
At 31 October 2022
-
0
AIR TECHNOLOGY SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 26 -
13
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 November 2022
163,482
181,586
468,200
813,268
Additions
3,991
51,715
255,265
310,971
Disposals
-
0
-
0
(31,827)
(31,827)
At 31 October 2023
167,473
233,301
691,638
1,092,412
Depreciation and impairment
At 1 November 2022
11,345
115,733
230,436
357,514
Depreciation charged in the year
18,405
32,170
89,473
140,048
Eliminated in respect of disposals
-
0
-
0
(23,533)
(23,533)
At 31 October 2023
29,750
147,903
296,376
474,029
Carrying amount
At 31 October 2023
137,723
85,398
395,262
618,383
At 31 October 2022
152,137
65,853
237,764
455,754
Company
Fixtures and fittings
Motor vehicles
Total
£
£
£
Cost
At 1 November 2022
158,224
468,200
626,424
Additions
47,253
245,265
292,518
Disposals
-
0
(31,827)
(31,827)
At 31 October 2023
205,477
681,638
887,115
Depreciation and impairment
At 1 November 2022
112,393
230,436
342,829
Depreciation charged in the year
26,287
87,973
114,260
Eliminated in respect of disposals
-
0
(23,533)
(23,533)
At 31 October 2023
138,680
294,876
433,556
Carrying amount
At 31 October 2023
66,797
386,762
453,559
At 31 October 2022
45,831
237,764
283,595
AIR TECHNOLOGY SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 27 -
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
207,100
207,100
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 November 2022 and 31 October 2023
207,100
Carrying amount
At 31 October 2023
207,100
At 31 October 2022
207,100
15
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
ATS Plastics Limited
8 Aston Court George Road, Bromsgrove Enterprise Park, Bromsgrove, Worcestershire, United Kingdom, B
Ordinary £1 shares
68.50
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
108,402
105,024
71,913
73,494
Work in progress
171,011
183,891
171,011
183,891
279,413
288,915
242,924
257,385
AIR TECHNOLOGY SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 28 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,649,771
2,631,054
2,602,402
2,578,022
Corporation tax recoverable
66,399
62,299
62,299
62,299
Amounts owed by group undertakings
-
(3)
726,476
251,865
Other debtors
193,113
74,611
148,500
50,067
Prepayments and accrued income
181,939
203,049
159,125
177,135
3,091,222
2,971,010
3,698,802
3,119,388
Deferred tax asset (note 19)
200,814
61,494
-
0
-
0
3,292,036
3,032,504
3,698,802
3,119,388
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
1,832,912
1,379,553
1,773,665
1,355,602
Amounts owed to group undertakings
-
0
(27)
-
0
-
0
Corporation tax payable
80,548
-
0
80,548
-
0
Other taxation and social security
160,934
102,492
159,584
102,492
Other creditors
-
0
100,025
-
0
25
Accruals and deferred income
969,427
984,392
963,889
980,329
3,043,821
2,566,435
2,977,686
2,438,448
19
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
52,003
5,394
(40,247)
(32,710)
Tax losses
-
-
241,061
94,204
52,003
5,394
200,814
61,494
AIR TECHNOLOGY SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
19
Deferred taxation
(Continued)
- 29 -
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Accelerated capital allowances
52,003
5,394
-
-
Group
Company
2023
2023
Movements in the year:
£
£
Liability/(Asset) at 1 November 2022
(56,100)
5,394
(Credit)/charge to profit or loss
(92,711)
46,609
Liability/(Asset) at 31 October 2023
(148,811)
52,003

[The deferred tax asset] set out above is expected to reverse within [12 months] and relates to the utilisation of tax losses against future expected profits of the same period. [The deferred tax liability] set out above is expected to reverse within [12 months] and relates to accelerated capital allowances that are expected to mature within the same period.

20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
274,274
209,904

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

21
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of 1p each
528
528
5
5
Ordinary B of 1p each
472
472
5
5
Ordinary C of 1p each
54
54
1
1
1,054
1,054
11
11
AIR TECHNOLOGY SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 30 -
22
Share premium account
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
9,366
-
0
9,366
-
0
Issue of new shares
-
9,366
-
9,366
Share issue expenses
100,000
-
-
-
At the end of the year
109,366
9,366
9,366
9,366
23
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
2,450,415
2,997,926
2,664,846
2,997,976
Profit/(loss) for the year
72,458
(336,511)
415,783
(122,130)
Dividends
-
(211,000)
-
(211,000)
At the end of the year
2,522,873
2,450,415
3,080,629
2,664,846
24
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
347,632
228,078
319,628
167,174
Between two and five years
703,247
536,266
694,476
287,676
1,050,879
764,344
1,014,104
454,850
AIR TECHNOLOGY SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 31 -
25
Directors' transactions

Loans have been granted by the group to its directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Loan
2.25
13,661
25,000
415
(13,661)
25,415
Loan
-
10,000
-
-
(10,000)
-
23,661
25,000
415
(23,661)
25,415

Loans will be repaid within 9 months of the balance sheet date.

26
Controlling party

The ultimate controlling party is S J Boon.

27
Cash generated from/(absorbed by) group operations
2023
2022
£
£
Profit/(loss) for the year after tax
72,458
(336,484)
Adjustments for:
Taxation credited
(12,163)
(97,874)
Finance costs
212
-
0
Investment income
(14,751)
(1,307)
Gain on disposal of tangible fixed assets
(19,708)
(36,812)
Depreciation and impairment of tangible fixed assets
140,048
107,941
Movements in working capital:
Decrease/(increase) in stocks
9,502
(44,072)
(Increase)/decrease in debtors
(104,359)
520,999
Increase/(decrease) in creditors
396,838
(200,012)
Cash generated from/(absorbed by) operations
468,077
(87,621)
AIR TECHNOLOGY SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 32 -
28
Cash generated from/(absorbed by) operations - company
2023
2022
£
£
Profit/(loss) for the year after tax
415,783
(122,130)
Adjustments for:
Taxation charged/(credited)
127,157
(36,380)
Finance costs
76
-
0
Investment income
(14,751)
(1,307)
Gain on disposal of tangible fixed assets
(14,387)
(36,812)
Depreciation and impairment of tangible fixed assets
114,260
93,256
Movements in working capital:
Decrease/(increase) in stocks
14,461
(12,542)
(Increase)/decrease in debtors
(567,660)
372,597
Increase/(decrease) in creditors
458,690
(329,205)
Cash generated from/(absorbed by) operations
533,629
(72,523)
29
Analysis of changes in net funds - group
1 November 2022
Cash flows
31 October 2023
£
£
£
Cash at bank and in hand
1,254,449
283,793
1,538,242
30
Analysis of changes in net funds - company
1 November 2022
Cash flows
31 October 2023
£
£
£
Cash at bank and in hand
1,250,597
266,713
1,517,310
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