IRIS Accounts Production v24.2.0.383 07854999 Board of Directors 31.12.23 1.1.23 31.12.23 31.12.23 true true false true true false false false true false Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh078549992022-12-31078549992023-12-31078549992023-01-012023-12-31078549992021-12-31078549992022-01-012022-12-31078549992022-12-3107854999ns15:EnglandWales2023-01-012023-12-3107854999ns14:PoundSterling2023-01-012023-12-3107854999ns10:Director12023-01-012023-12-3107854999ns10:Consolidated2023-12-3107854999ns10:ConsolidatedGroupCompanyAccounts2023-01-012023-12-3107854999ns10:PrivateLimitedCompanyLtd2023-01-012023-12-3107854999ns10:Consolidatedns10:FRS1022023-01-012023-12-3107854999ns10:Consolidatedns10:Audited2023-01-012023-12-3107854999ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2023-01-012023-12-3107854999ns10:LargeMedium-sizedCompaniesRegimeForAccounts2023-01-012023-12-3107854999ns10:Consolidatedns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2023-01-012023-12-3107854999ns10:LargeMedium-sizedCompaniesRegimeForAccountsns10:Consolidated2023-01-012023-12-3107854999ns10:FullAccounts2023-01-012023-12-310785499912023-01-012023-12-3107854999ns10:OrdinaryShareClass12023-01-012023-12-3107854999ns10:Consolidated2023-01-012023-12-3107854999ns10:Director22023-01-012023-12-3107854999ns10:RegisteredOffice2023-01-012023-12-3107854999ns10:Consolidated2022-01-012022-12-3107854999ns5:CurrentFinancialInstruments2023-12-3107854999ns5:CurrentFinancialInstruments2022-12-3107854999ns5:ShareCapital2023-12-3107854999ns5:ShareCapital2022-12-3107854999ns5:RetainedEarningsAccumulatedLosses2023-12-3107854999ns5:RetainedEarningsAccumulatedLosses2022-12-3107854999ns5:ShareCapital2021-12-3107854999ns5:RetainedEarningsAccumulatedLosses2021-12-3107854999ns5:RetainedEarningsAccumulatedLosses2022-01-012022-12-3107854999ns5:RetainedEarningsAccumulatedLosses2023-01-012023-12-3107854999ns5:NetGoodwill2023-01-012023-12-3107854999ns5:MotorVehicles2022-12-3107854999ns5:ComputerEquipment2022-12-3107854999ns5:MotorVehicles2023-01-012023-12-3107854999ns5:ComputerEquipment2023-01-012023-12-3107854999ns5:MotorVehicles2023-12-3107854999ns5:ComputerEquipment2023-12-3107854999ns5:MotorVehicles2022-12-3107854999ns5:ComputerEquipment2022-12-3107854999ns5:CostValuation2022-12-3107854999ns5:ListedExchangeTradedns5:CostValuation2022-12-3107854999ns5:AdditionsToInvestments2023-12-3107854999ns5:ListedExchangeTradedns5:AdditionsToInvestments2023-12-3107854999ns5:ProvidedReleasedInPeriodProvisionsForImpairmentInvestments2023-12-3107854999ns5:ProvidedReleasedInPeriodProvisionsForImpairmentInvestmentsns5:ListedExchangeTraded2023-12-3107854999ns5:CostValuation2023-12-3107854999ns5:ListedExchangeTradedns5:CostValuation2023-12-3107854999ns5:ListedExchangeTraded2023-12-3107854999ns5:ListedExchangeTraded2022-12-3107854999ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-12-3107854999ns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-12-3107854999ns10:OrdinaryShareClass12023-12-31
REGISTERED NUMBER: 07854999 (England and Wales)















EMC Surface Technologies Limited

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 December 2023






EMC Surface Technologies Limited (Registered number: 07854999)






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 5

Report of the Independent Auditors 6

Consolidated Statement of Comprehensive Income 9

Consolidated Balance Sheet 10

Company Balance Sheet 11

Consolidated Statement of Changes in Equity 12

Company Statement of Changes in Equity 13

Consolidated Cash Flow Statement 14

Notes to the Consolidated Cash Flow Statement 15

Notes to the Consolidated Financial Statements 16


EMC Surface Technologies Limited

Company Information
for the Year Ended 31 December 2023







DIRECTORS: Mr J P Clarke
Mr C V Clarke





REGISTERED OFFICE: 67c King Street
Knutsford
Cheshire
WA16 6DX





REGISTERED NUMBER: 07854999 (England and Wales)





AUDITORS: Advance Audit Limited
Statutory Auditor
71/73 Hoghton Street
Southport
Merseyside
PR9 0PR

EMC Surface Technologies Limited (Registered number: 07854999)

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.

CHAIRMAN'S STATEMENT - JIM CLARKE
On behalf of the Board, I would like to start my annual report by thanking all our employees for their unwavering commitment throughout the year.

It now gives me great pleasure to announce EMC Surface Technologies Limited ("the Group") results for the year ended 31st December 2023.

SUMMARY OF THE YEAR
EMC Surface Technologies has performed robustly over the last 12 months thanks to our dedicated management teams that skilfully managed the many challenges posed by the UK falling into recession in the last six months of 2023.

In spite of these challenging trading conditions, we remained true to our core values of maintaining our long-term vision, encouraging entrepreneurship, striving for excellence and celebrating success to put our group on a strong footing moving forwards.

Our companies are now supported by an experienced head office team that can provide our management teams with dedicated strategic, financial, marketing, and recruitment resource. We firmly believe this development will help us create substantial value over the longer term and create many opportunities for all our stakeholders.

STRATEGY AND NEW INVESTMENTS
We are committed to acquiring leading surface engineering companies across the UK. Our long-term vision is to build a group of companies that offer a variety of mission critical services to a diverse range of end customers. We will do this by providing owners looking to sell with fast, fair, and friendly exits in less than 100 days.

Post year end, in February 2024, we acquired RDM Industrial Services Ltd who design, manufacture, and install industrial ovens, spray booths and pre-treatment systems. Due to our simple acquisition process, the transaction was completed in 72 days, and we look forward to working with the existing management team to grow and develop the business moving forward.

CASH RESOURCES AND INVESTMENT CAPABILITY
As of 31st December 2023, the Group held £10m in free cash resources to help us make new investments, and we present a strong balance sheet reflecting our conservative approach to gearing across the corporate portfolio.

We continue to develop new and existing relationships with owners that may wish to explore an exit and we maintain a strong acquisitions team, supported by our trusted advisers, that allows us to move quickly when suitable opportunities arise.

OUTLOOK
Looking ahead, we are confident in the ability of our management teams and their workforce to continue developing their businesses and we are well placed to execute our strategy of acquiring more companies that meet our investment criteria.

EMC Surface Technologies Limited (Registered number: 07854999)

Group Strategic Report
for the Year Ended 31 December 2023

DIRECTORS SUMMARY - CHRIS CLARKE

REVIEW OF BUSINESS
EMC Surface Technologies reports its full year results to 31st December 2023 achieving EBITDA of £3.03m on turnover of £9.20m, which compares to EBITDA of £3.25m on turnover of £8.99m for the year ended 31st December 2022.

The Group performed resiliently throughout the year. We continue to make investments in our people, processes and facilities that are pivotal to the long term success of the Group.

Our acquisition pipeline remains strong and as stated we retain strong cash reserves to enable further investment in line with our long-term strategic objectives.

KEY PERFORMANCE INDICATORS
The key performance indicators of the group are financial with turnover, gross profit, EBITDA and cash and cash equivalents being those of significance given our goal of longer-term growth that maximises value for all stakeholders.

2023 2022
(£   ) (£   )
Turnover £9,204 £8,994
Gross Profit £6,160 £5,721
EBITDA £3,036 £3,253
Cash and Cash Equivalents £10,438 £8,266

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties relate to the economic environment with challenges from supply chain disruption and inflationary pressures.

The directors aim to manage the key risks and uncertainties that are spread across the group through monthly management review meetings within each business, and quarterly board meetings at head office. A comprehensive financial reporting pack is also circulated monthly to the directors within each business to manage financial risks.

ACQUISITION RISK
The directors continue to employ a strategy of growing revenues in a sustainable manner through organic and inorganic growth. Acquisition targets will be established, profitable and cash generative businesses that add value to the group.

CREDIT RISK
The Group's credit risk is primarily attributable to its trade receivables. The Group continues to expand and diversify reducing any concentration of credit risk.

CURRENCY RISK
The directors do not consider the Group is significantly exposed to the financial risks of changes in exchange rates as there are minimal transactions in foreign currency.

DISRUPTION TO SUPPLY CHAINS
The Group has experienced shortages, disruptions and delays in shipments like most businesses in the UK. To date these challenges have been mitigated by ordering additional supplies and critical spares, and it is the expectation the Group will continue to manage these challenges accordingly.

INFLATION RISK
The UK economy is experiencing cost inflation which is impacting on the supply chain of the Group and the cost of key materials and services. The Group is monitoring the situation closely and where possible ensuring these cost increases are factored into the sales price.

EMC Surface Technologies Limited (Registered number: 07854999)

Group Strategic Report
for the Year Ended 31 December 2023

LIQUIDITY RISK
The Group seeks to manage financial risks by ensuring sufficient liquidity is available to meet foreseeable needs. The Group utilises invoice discounting in some instances which helps manage cash and headroom.

ON BEHALF OF THE BOARD:





Mr C V Clarke - Director


4 June 2024

EMC Surface Technologies Limited (Registered number: 07854999)

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.

PRINCIPAL ACTIVITY
The principal activity of the Company is to manage a group of surface engineering companies.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

Mr J P Clarke
Mr C V Clarke

DISCLOSURE IN THE STRATEGIC REPORT
The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial risk management and future developments.

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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:





Mr C V Clarke - Director


4 June 2024

Report of the Independent Auditors to the Members of
EMC Surface Technologies Limited

Opinion
We have audited the financial statements of EMC Surface Technologies Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of 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.

Report of the Independent Auditors to the Members of
EMC Surface Technologies Limited


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.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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:

- Enquiry of management and those charged with governance around actual and potential litigation and claims;
- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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
EMC Surface Technologies 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.




Jennifer Tobin FCCA (Senior Statutory Auditor)
for and on behalf of Advance Audit Limited
Statutory Auditor
71/73 Hoghton Street
Southport
Merseyside
PR9 0PR

4 June 2024

EMC Surface Technologies Limited (Registered number: 07854999)

Consolidated Statement of Comprehensive Income
for the Year Ended 31 December 2023

2023 2022
Notes £    £    £    £   

TURNOVER 3 9,204,495 8,993,749

Cost of sales 3,044,770 3,272,686
GROSS PROFIT 6,159,725 5,721,063

Administrative expenses 3,434,518 2,714,231
2,725,207 3,006,832

Other operating income 63,870 36,964
OPERATING PROFIT 5 2,789,077 3,043,796

Income from interest in associated
undertakings

-

870,736
Interest receivable and similar income 292,414 79,027
292,414 949,763
3,081,491 3,993,559
Gain/loss on revaluation of investments (2,025,352 ) (641,379 )
1,056,139 3,352,180

Interest payable and similar expenses 7 58,323 41,514
PROFIT BEFORE TAXATION 997,816 3,310,666

Tax on profit 8 718,287 610,074
PROFIT FOR THE FINANCIAL YEAR 279,529 2,700,592

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

279,529

2,700,592

Profit attributable to:
Owners of the parent 214,095 2,275,052
Non-controlling interests 65,434 425,540
279,529 2,700,592

Total comprehensive income attributable to:
Owners of the parent 214,095 2,275,052
Non-controlling interests 65,434 425,540
279,529 2,700,592

EMC Surface Technologies Limited (Registered number: 07854999)

Consolidated Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 11 - 43,008
Tangible assets 12 1,785,340 1,705,877
Investments 13 3,306,157 5,331,509
5,091,497 7,080,394

CURRENT ASSETS
Stocks 14 156,338 179,180
Debtors 15 5,125,661 4,596,442
Cash at bank and in hand 10,438,242 8,266,431
15,720,241 13,042,053
CREDITORS
Amounts falling due within one year 16 7,425,631 4,596,076
NET CURRENT ASSETS 8,294,610 8,445,977
TOTAL ASSETS LESS CURRENT
LIABILITIES

13,386,107

15,526,371

CREDITORS
Amounts falling due after more than one
year

17

(549,592

)

(685,498

)

PROVISIONS FOR LIABILITIES 21 (220,086 ) (201,973 )
NET ASSETS 12,616,429 14,638,900

CAPITAL AND RESERVES
Called up share capital 22 1 1
Retained earnings 12,616,428 13,896,418
SHAREHOLDERS' FUNDS 12,616,429 13,896,419

NON-CONTROLLING INTERESTS 23 - 742,481
TOTAL EQUITY 12,616,429 14,638,900

The financial statements were approved by the Board of Directors and authorised for issue on 4 June 2024 and were signed on its behalf by:





Mr C V Clarke - Director


EMC Surface Technologies Limited (Registered number: 07854999)

Company Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 11 - -
Tangible assets 12 15,212 9,451
Investments 13 5,847,275 5,570,627
5,862,487 5,580,078

CURRENT ASSETS
Debtors 15 3,448,570 2,615,617
Cash at bank 10,262,735 7,748,110
13,711,305 10,363,727
CREDITORS
Amounts falling due within one year 16 7,118,175 4,559,029
NET CURRENT ASSETS 6,593,130 5,804,698
TOTAL ASSETS LESS CURRENT
LIABILITIES

12,455,617

11,384,776

CAPITAL AND RESERVES
Called up share capital 22 1 1
Retained earnings 12,455,616 11,384,775
SHAREHOLDERS' FUNDS 12,455,617 11,384,776

Company's profit for the financial year 1,070,841 1,198,920

The financial statements were approved by the Board of Directors and authorised for issue on 4 June 2024 and were signed on its behalf by:





Mr C V Clarke - Director


EMC Surface Technologies Limited (Registered number: 07854999)

Consolidated Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Non-controlling Total
capital earnings Total interests equity
£    £    £    £    £   
Balance at 1 January 2022 1 12,171,366 12,171,367 586,941 12,758,308

Changes in equity
Profit for the year - 2,275,052 2,275,052 425,540 2,700,592
Total comprehensive income - 2,275,052 2,275,052 425,540 2,700,592
Dividends - (550,000 ) (550,000 ) (270,000 ) (820,000 )
Total transactions with owners,
recognised directly in equity

-

(550,000

)

(550,000

)

(270,000

)

(820,000

)
Balance at 31 December 2022 1 13,896,418 13,896,419 742,481 14,638,900

Changes in equity
Profit for the year - 214,095 214,095 65,434 279,529
Total comprehensive income - 214,095 214,095 65,434 279,529
Acquisition of non controlling
interest - (1,494,085 ) (1,494,085 ) - (1,494,085 )
Total transactions with owners,
recognised directly in equity

-

(1,494,085

)

(1,494,085

)

-

(1,494,085

)
Acquisition of non-controlling
interest

-

-

-

(807,915

)

(807,915

)
Balance at 31 December 2023 1 12,616,428 12,616,429 - 12,616,429

EMC Surface Technologies Limited (Registered number: 07854999)

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 1 10,735,855 10,735,856

Changes in equity
Dividends - (550,000 ) (550,000 )
Total comprehensive income - 1,198,920 1,198,920
Balance at 31 December 2022 1 11,384,775 11,384,776

Changes in equity
Total comprehensive income - 1,070,841 1,070,841
Balance at 31 December 2023 1 12,455,616 12,455,617

EMC Surface Technologies Limited (Registered number: 07854999)

Consolidated Cash Flow Statement
for the Year Ended 31 December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 3,805,538 2,247,535
Interest paid (48,521 ) (31,132 )
Interest element of hire purchase
payments paid

(9,802

)

(10,382

)
Tax paid (768,563 ) (605,102 )
Net cash from operating activities 2,978,652 1,600,919

Cash flows from investing activities
Purchase of tangible fixed assets (323,204 ) (471,035 )
Sale of tangible fixed assets 39,854 103,000
Group purchase of shares in subsidiary (2,302,000 ) -
Interest received 292,414 79,027
Dividends received - 870,736
Net cash from investing activities (2,292,936 ) 581,728

Cash flows from financing activities
Loan repayments in year (104,200 ) (104,200 )
Assets financed on hire purchase 49,900 264,875
Capital repayments in year (87,660 ) (158,620 )
Amount withdrawn by directors (643,471 ) (476,904 )
Loans from related parties 1,871,331 -
Equity dividends paid - (550,000 )
Dividends paid to minority interests - (270,000 )
Net cash from financing activities 1,085,900 (1,294,849 )

Increase in cash and cash equivalents 1,771,616 887,798
Cash and cash equivalents at
beginning of year

2

8,266,431

7,378,633

Cash and cash equivalents at end of
year

2

10,038,047

8,266,431

EMC Surface Technologies Limited (Registered number: 07854999)

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 997,816 3,310,666
Depreciation charges 244,109 250,928
Loss/(profit) on disposal of fixed assets 2,788 (42,149 )
Loss on revaluation of fixed assets 2,025,352 641,379
Finance costs 58,323 41,514
Finance income (292,414 ) (949,763 )
3,035,974 3,252,575
Decrease/(increase) in stocks 22,842 (93,941 )
Decrease/(increase) in trade and other debtors 425,444 (1,300,039 )
Increase in trade and other creditors 321,278 388,940
Cash generated from operations 3,805,538 2,247,535

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 10,438,242 8,266,431
Bank overdrafts (400,195 ) -
10,038,047 8,266,431
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 8,266,431 7,378,633


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 8,266,431 2,171,811 10,438,242
Bank overdrafts - (400,195 ) (400,195 )
8,266,431 1,771,616 10,038,047
Debt
Finance leases (237,258 ) 37,760 (199,498 )
Debts falling due within 1 year (104,200 ) - (104,200 )
Debts falling due after 1 year (499,883 ) 104,200 (395,683 )
(841,341 ) 141,960 (699,381 )
Total 7,425,090 1,913,576 9,338,666

EMC Surface Technologies Limited (Registered number: 07854999)

Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

EMC Surface Technologies 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 as modified by the revaluation of certain assets.

The financial statements are presented in Sterling (£).

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of the following disclosure requirements for parent company information presented within the consolidated financial statements:

- Section 7 'Statement of Cash Flows': Presentation of a statement of cash flow and related notes and disclosures;
- Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues': Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
- Section 33 'Related Party Disclosures': Compensation for key management personnel.

Basis of consolidation
In the parent company financial statements, the cost of a business combination is the fair value at he 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 are accounting for at cost less impairment.

The consolidated financial statements incorporate those of EMC Surface Technologies Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

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

EMC Surface Technologies Limited (Registered number: 07854999)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued
All intra-group transactions, balances and unrealised gains or 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.

Going concern
The group has continued to trade profitably in 2024.

At the time of preparing the financial statements the directors have prepared detailed budgets and cash flow forecasts for the 12 months following the approval of the financial statements. The directors have concluded that there is a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Significant judgements and estimates
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.

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

Assessing for indicators of impairment
In assessing whether there have been any indicators of impaired assets, the directors have considered both external and internal sources of information such as market conditions, counterpart credit ratings and experience of reconcilability. There have been no material indicators of impairment identified during the current financial year.

Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Provision for irrecoverable trade debtors
At each balance sheet date, management undertake a review of the outstanding trade debtor balances and estimate the balance that should either be impaired or provided against.

This calculation is based upon the financial position of the relevant customers, the historical speed of payment compared to approved credit terms and the status/progress of any ongoing communications with them.

EMC Surface Technologies Limited (Registered number: 07854999)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

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.

Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, 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.

Goodwill
Goodwill arising on an acquisition is the difference between the fair value of the consideration paid and the fair value of the assets and liabilities acquired. Routine goodwill is capitalised and amortised through the profit and loss account over the directors estimate of its useful economic life, which is 20 years. Impairment tests on the carrying value of goodwill are undertaking in periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

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

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of the asset as follows:

Freehold property- 2% on cost
Plant and machinery- at varying rates on cost
Motor vehicles- 25% on cost
Computer equipment- 33% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sales proceeds and the carrying value of the asset and is credited or charged to profit or loss.

EMC Surface Technologies Limited (Registered number: 07854999)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued
Fixed asset investments
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

Investments are carried at revalued amounts at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss.

A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.

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.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cash at bank and in hand
Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.

EMC Surface Technologies Limited (Registered number: 07854999)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

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 company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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
All of the group's assets are basic financial assets.

Impairment of financial assets
Financial assets 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 impaired 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 company 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 company after deducting all of its liabilities.

Basic financial liabilities
Basic financial liabilities, including creditors and loans from group companies, 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.

EMC Surface Technologies Limited (Registered number: 07854999)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued
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
All of the company's liabilities are basic financial liabilities.

Derecognition of financial liabilities
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

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

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Leases
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

EMC Surface Technologies Limited (Registered number: 07854999)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

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.

3. TURNOVER

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

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Anodising 8,309,037 8,770,624
Management charges 895,458 223,125
9,204,495 8,993,749

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 3,272,775 2,802,819
Social security costs 307,075 285,480
Other pension costs 85,811 78,732
3,665,661 3,167,031

The average number of employees during the year was as follows:
2023 2022

Production Staff 47 30
Distribution Staff 9 8
Administration Staff 16 15
72 53

The average number of employees by undertakings that were proportionately consolidated during the year was 70 (2022 - 51 ) .

2023 2022
£    £   
Directors' remuneration 11,702 9,032

EMC Surface Technologies Limited (Registered number: 07854999)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Hire of plant and machinery 52,563 16,380
Depreciation - owned assets 201,099 147,357
Loss/(profit) on disposal of fixed assets 2,788 (42,149 )
Goodwill amortisation 43,008 103,571
Auditors' remuneration 27,400 25,095
Foreign exchange differences (18,887 ) (12,754 )

6. EXCEPTIONAL ITEMS
2023 2022
£    £   
Write off of loan to connected
party 4,403 -

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 40,970 28,634
Corporation tax interest 6,399 2,498
VAT interest 273 -
PAYE interest 879 -
Hire purchase 9,802 10,382
58,323 41,514

8. 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 700,174 528,998

Deferred tax 18,113 81,076
Tax on profit 718,287 610,074

EMC Surface Technologies Limited (Registered number: 07854999)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

8. TAXATION - continued

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 997,816 3,310,666
Profit multiplied by the standard rate of corporation tax in the UK of
23.521 % (2022 - 19 %)

234,696

629,027

Effects of:
Income not taxable for tax purposes - (172,090 )
Depreciation in excess of capital allowances - 54
Change in rate of tax (4,594 ) 19,458
Amortisation and depreciation on assets not qualifying for tax allowances
14,655

23,345
Super deduction allowances (456 ) (11,582 )
Impairments of investments not qualifying for tax allowances 473,986 121,862
Total tax charge 718,287 610,074

9. INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.


10. DIVIDENDS

2023 2022
£    £   

Final - 820,000
- 820,000

EMC Surface Technologies Limited (Registered number: 07854999)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

11. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
COST
At 1 January 2023 2,763,142
Disposals (2,763,142 )
At 31 December 2023 -
AMORTISATION
At 1 January 2023 2,720,134
Amortisation for year 43,008
Eliminated on disposal (2,763,142 )
At 31 December 2023 -
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 43,008

12. TANGIBLE FIXED ASSETS

Group
Freehold Plant and Motor Computer
property machinery vehicles equipment Totals
£    £    £    £    £   
COST
At 1 January 2023 964,853 2,028,969 344,907 218,495 3,557,224
Additions 15,817 209,476 65,170 32,741 323,204
Disposals - - (53,429 ) - (53,429 )
At 31 December 2023 980,670 2,238,445 356,648 251,236 3,826,999
DEPRECIATION
At 1 January 2023 96,464 1,530,058 48,706 176,119 1,851,347
Charge for year 19,613 97,538 66,262 17,686 201,099
Eliminated on disposal - - (10,787 ) - (10,787 )
At 31 December 2023 116,077 1,627,596 104,181 193,805 2,041,659
NET BOOK VALUE
At 31 December 2023 864,593 610,849 252,467 57,431 1,785,340
At 31 December 2022 868,389 498,911 296,201 42,376 1,705,877

The net carrying value of tangible fixed assets includes £235,115 (2022: £289,035) in respect of assets held under finance lease or hire purchase contracts.

EMC Surface Technologies Limited (Registered number: 07854999)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

12. TANGIBLE FIXED ASSETS - continued

Company
Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 January 2023 13,845 2,348 16,193
Additions - 9,668 9,668
At 31 December 2023 13,845 12,016 25,861
DEPRECIATION
At 1 January 2023 6,544 198 6,742
Charge for year 1,825 2,082 3,907
At 31 December 2023 8,369 2,280 10,649
NET BOOK VALUE
At 31 December 2023 5,476 9,736 15,212
At 31 December 2022 7,301 2,150 9,451

13. FIXED ASSET INVESTMENTS

Group
Listed
investments
£   
COST OR VALUATION
At 1 January 2023 5,331,509
Impairments (2,025,352 )
At 31 December 2023 3,306,157
NET BOOK VALUE
At 31 December 2023 3,306,157
At 31 December 2022 5,331,509

Cost or valuation at 31 December 2023 is represented by:

Listed
investments
£   
Valuation in 2023 3,306,157

EMC Surface Technologies Limited (Registered number: 07854999)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

13. FIXED ASSET INVESTMENTS - continued

Company
Shares in
group Listed
undertakings investments Totals
£    £    £   
COST OR VALUATION
At 1 January 2023 239,118 5,331,509 5,570,627
Additions 2,302,000 - 2,302,000
Impairments - (2,025,352 ) (2,025,352 )
At 31 December 2023 2,541,118 3,306,157 5,847,275
NET BOOK VALUE
At 31 December 2023 2,541,118 3,306,157 5,847,275
At 31 December 2022 239,118 5,331,509 5,570,627

Cost or valuation at 31 December 2023 is represented by:

Shares in
group Listed
undertakings investments Totals
£    £    £   
Valuation in 2023 2,541,118 3,306,157 5,847,275

EMC Surface Technologies Limited holds greater than 20% of the total shares in issue in Coil . Coil is listed on the Euronext Growth Paris stock exchange.


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


Name of subsidiary

Activity
Country of
Incorporation
Class of
shares

% Holding


United Anodisers (Batch) Limited

Holding company
England and
Wales

Ordinary

100%

14. STOCKS

Group
2023 2022
£    £   
Stocks 156,338 179,180

EMC Surface Technologies Limited (Registered number: 07854999)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade debtors 1,567,190 1,830,504 2,585 -
Other debtors 2,131,538 1,996,577 2,127,048 1,940,151
Directors' current accounts 1,318,937 675,466 1,318,937 675,466
Prepayments and accrued income 107,996 93,895 - -
5,125,661 4,596,442 3,448,570 2,615,617

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans and overdrafts (see note 18) 504,395 104,200 - -
Hire purchase contracts (see note 19) 45,589 51,643 - -
Trade creditors 401,175 377,928 - -
Amounts owed to group undertakings - - 1,836,410 1,680,476
Tax 403,843 472,232 303,244 83,070
Social security and other taxes 213,692 87,963 - -
VAT 239,002 394,416 - -
Other creditors 4,978,521 2,795,483 4,978,521 2,795,483
Accruals and deferred income 639,414 312,211 - -
7,425,631 4,596,076 7,118,175 4,559,029

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group
2023 2022
£    £   
Bank loans (see note 18) 395,683 499,883
Hire purchase contracts (see note 19) 153,909 185,615
549,592 685,498

EMC Surface Technologies Limited (Registered number: 07854999)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

18. LOANS

An analysis of the maturity of loans is given below:

Group
2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 400,195 -
Bank loans 104,200 104,200
504,395 104,200
Amounts falling due between two and five years:
Bank loans - 2-5 years 395,683 499,883

19. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 45,589 51,643
Between one and five years 153,909 185,615
199,498 237,258

Group
Non-cancellable operating leases
2023 2022
£    £   
Within one year 19,316 31,984

20. SECURED DEBTS

The following secured debts are included within creditors:

Group
2023 2022
£    £   
Bank loans 499,883 604,083
Invoice discounting 400,195 -
900,078 604,083

The bank loans and invoice discounting facility are secured by way of fixed and floating charges over the assets of a group company.

EMC Surface Technologies Limited (Registered number: 07854999)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

21. PROVISIONS FOR LIABILITIES

Group
2023 2022
£    £   
Deferred tax 220,086 201,973

Group
Deferred
tax
£   
Balance at 1 January 2023 201,973
Provided during year 18,113
Balance at 31 December 2023 220,086

It is not possible to determine how much of the deferred tax liability will reverse within 12 months due to the company continually reinvesting in new capital equipment.

22. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
1 Ordinary £1 1 1

23. NON-CONTROLLING INTERESTS

Profits attributable to minority interests are shown in the consolidated income statement.

24. PENSION COMMITMENTS

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.

The total contributions charged to the profit and loss account in the year amounted to £89,811 (2022: £83,032).

25. RELATED PARTY DISCLOSURES

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

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

EMC Surface Technologies Limited (Registered number: 07854999)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

25. RELATED PARTY DISCLOSURES - continued

Amounts due from / (to) related parties
The following amounts were outstanding at the reporting end date:

2023 2022
Balance Balance

Group
Entities over which the group has control, joint control or
significant influence


(3,707,023

)

(992,684

)


26. ULTIMATE CONTROLLING PARTY

The company was under the control of Mr J P Clarke throughout the current and previous year. Mr J P Clarke is the Chairman and sole shareholder.