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 |
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: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
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: |
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. |
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: |
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. |
for and on behalf of |
Statutory Auditor |
71/73 Hoghton Street |
Southport |
Merseyside |
PR9 0PR |
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 |
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 |
Investments | 13 |
CURRENT ASSETS |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Retained earnings |
SHAREHOLDERS' FUNDS |
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 |
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 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2023 |
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 |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 |
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 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
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 | 5,570,627 |
Additions | 2,302,000 |
Impairments | ( |
) | (2,025,352 | ) |
At 31 December 2023 | 5,847,275 |
NET BOOK VALUE |
At 31 December 2023 | 5,847,275 |
At 31 December 2022 | 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 |
Other debtors | 2,131,538 | 1,996,577 |
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 |
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 | - | - |
Tax | 403,843 | 472,232 |
Social security and other taxes | 213,692 | 87,963 |
VAT | 239,002 | 394,416 | - | - |
Other creditors | 4,978,521 | 2,795,483 |
Accruals and deferred income | 639,414 | 312,211 |
7,425,631 | 4,596,076 |
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: | £ | £ |
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. |