Company Registration No. 02151635 (England and Wales)
Vectaire Limited
Annual report and
group financial statements
for the year ended 31 December 2023
Vectaire Limited
Company information
Directors
Victor Gaeta
Mario Gaeta
Secretary
Mario Gaeta
Company number
02151635
Registered office
Lincoln Road
Cressex Business Park
High Wycombe
Buckinghamshire
HP12 3RH
Independent auditor
Saffery LLP
St John's Court
Easton Street
High Wycombe
HP11 1JX
Bankers
National Westminster Bank plc
22 George Street
Richmond
Surrey
TW9 1JW
Vectaire Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group statement of financial position
9
Company statement of financial position
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 34
Vectaire Limited
Strategic report
For the year ended 31 December 2023
1

The directors present the strategic report for the year ended 31 December 2023.

Fair review of the business

Group Turnover for the year increased from £21.4 million to £28.0 million. Turnover for the first six months of 2023 continued at the level of the second half of 2022. Towards the end of 2023, turnover started to reflect the nervousness affecting demand in the building industry. Many projects were delayed awaiting some clarity in the political landscape. The supply chain issues, encountered in 2021 and the first half of 2022, appears to have stabilised in terms of availability and price.

 

The commercial environment remains very competitive and will continue to be over the course of the coming year and beyond. Demand for our products remain high and our orderbooks remain strong.

 

The Directors believe that they will be able to maintain the level of performance attained in 2023.

 

Principal risks and uncertainties

The principal uncertainties facing the Group continue to be the supply of components and, to a lesser degree, increasing costs both for components and overheads.

 

Supply chain issues of key components continued to ease throughout 2023 with lead times falling to more manageable levels. The directors believe that the current lead times will continue throughout 2024.

 

Prices of both components and finished goods have also stabilised with some suppliers beginning to reduce price. However, some overheads continue to increase despite headline inflation statistics. Actions continue to be taken to mitigate the effects of any price increases on the group.

 

The implementation of the Group’s strategy is subject to several risks. These are reviewed by the Board on a continuous basis and actions are put in place to mitigate any negative effect on the profitability of the group.

 

The Directors are satisfied that the Group’s financial structure is adequate for the Group’s current and future objectives.

 

Future plans

Following the introduction of new and improved products in 2023, the Research and Development programme will continue with further products being introduced throughout 2024 and beyond. This will strengthen our position in the market.

 

The Directors aim to continue the restructure and strengthening of the current management of the group. This will enable the group to remain profitable whilst continuing to increase its market share and provide quality products.

Development and performance

The Group’s business activities, and the material factors which affect its future development, are set out above. The financial position of the Group is set out in the financial statements and the notes that follow.

 

When assessing the Group’s position, no material uncertainties that cast doubt on the ability of the Group to continue as a going concern have been identified by the directors.

Vectaire Limited
Strategic report (continued)
For the year ended 31 December 2023
2
Key performance indicators

The Group’s main key performance indicators remain gross profit percentage and operating profit. During 2023 the Group’s activity resulted in a gross profit increase from £7.6 million to £10.5 million.

 

Gross profit, as a percentage of sales, grew from 35.46% to 37.4%.

 

Operating profit for the year rose to £4,178K (2022 – operating profit of £1,795K).

On behalf of the board

Victor Gaeta
Director
10 September 2024
Vectaire Limited
Directors' report
For the year ended 31 December 2023
3

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the group companies continued to be the design, manufacturing, supply and installation of ventilation systems.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

Victor Gaeta
Mario Gaeta
Auditor

Saffery LLP have expressed their willingness to continue in office as auditors of the group.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group'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 future developments.

Vectaire Limited
Directors' report (continued)
For the year ended 31 December 2023
4
Statement of disclosure to auditor

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

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Victor Gaeta
Director
10 September 2024
Vectaire Limited
Independent auditor's report
To the members of Vectaire Limited
5
Opinion

We have audited the financial statements of Vectaire Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Group Statement of Comprehensive Income, the Group Statement of Financial Position, the Company Statement of Financial Position, the Group Statement of Changes in Equity, the Company Statement of Changes in Equity, the Group Statement of Cash Flows and 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 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 included in the annual report other than the financial statements and our auditor's report 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.

 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Vectaire Limited
Independent auditor's report (continued)
To the members of Vectaire Limited
6

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

 

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

 

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

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

 

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the group and parent company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent company by discussions with directors and by updating our understanding of the sector in which the group and parent company operates.

 

Laws and regulations of direct significance in the context of the group and parent company include The Companies Act 2006 and UK Tax legislation.

Vectaire Limited
Independent auditor's report (continued)
To the members of Vectaire Limited
7

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of group and parent company financial statement disclosures. We reviewed the parent company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

 

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

As group auditors, our assessment of matters relating to non-compliance with laws or regulations and fraud differed at group and component level according to their particular circumstances. Our communications included a request to identify instances of non-compliance with laws and regulations and fraud that could give rise to a material misstatement of the group financial statements in addition to our risk assessment.

 

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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

Use of our report

This report is made solely to the parent 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 parent company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent company and the parent company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Sheryl Davis (Senior Statutory Auditor)
For and on behalf of Saffery LLP
16 September 2024
Chartered Accountants
Statutory Auditors
St John's Court
Easton Street
High Wycombe
HP11 1JX
Vectaire Limited
Group statement of comprehensive income
For the year ended 31 December 2023
8
2023
2022
Notes
£
£
Turnover
3
27,978,733
21,364,703
Cost of sales
(17,521,208)
(13,793,053)
Gross profit
10,457,525
7,571,650
Distribution costs
(1,717,476)
(1,584,262)
Administrative expenses
(4,570,742)
(4,192,771)
Other operating income
8,473
-
Operating profit
4
4,177,780
1,794,617
Interest receivable and similar income
8
6,031
875
Interest payable and similar expenses
9
(169,434)
(131,072)
Profit before taxation
4,014,377
1,664,420
Tax on profit
10
(981,455)
(373,331)
Profit for the financial year
3,032,922
1,291,089
Other comprehensive income
Revaluation of tangible fixed assets
650,876
-
0
Tax relating to other comprehensive income
(153,235)
-
0
Total comprehensive income for the year
3,530,563
1,291,089
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

Vectaire Limited
Group statement of financial position
As at 31 December 2023
9
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
14
5,038,864
3,599,703
Current assets
Stocks
19
6,231,679
4,993,759
Debtors
20
4,451,115
4,731,173
Cash at bank and in hand
1,559,400
846,689
12,242,194
10,571,621
Creditors: amounts falling due within one year
21
(4,989,136)
(5,804,055)
Net current assets
7,253,058
4,767,566
Total assets less current liabilities
12,291,922
8,367,269
Creditors: amounts falling due after more than one year
22
(868,564)
(676,667)
Provisions for liabilities
25
(459,199)
(257,006)
Net assets
10,964,159
7,433,596
Capital and reserves
Called up share capital
26
25,000
25,000
Revaluation reserve
1,858,551
1,433,564
Profit and loss reserves
9,080,608
5,975,032
Total equity
10,964,159
7,433,596
The financial statements were approved by the board of directors and authorised for issue on 10 September 2024 and are signed on its behalf by:
10 September 2024
Victor Gaeta
Director
Vectaire Limited
Company statement of financial position
As at 31 December 2023
31 December 2023
10
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
14
1,147,032
1,018,163
Investment properties
17
2,875,000
2,400,000
Investments
15
196,260
196,260
4,218,292
3,614,423
Current assets
Stocks
19
1,152,037
1,040,456
Debtors
20
5,506,035
3,865,322
Cash at bank and in hand
726,355
581,476
7,384,427
5,487,254
Creditors: amounts falling due within one year
21
(2,387,482)
(2,042,998)
Net current assets
4,996,945
3,444,256
Total assets less current liabilities
9,215,237
7,058,679
Creditors: amounts falling due after more than one year
22
(396,667)
(676,667)
Provisions for liabilities
Deferred tax liability
25
408,553
257,006
(408,553)
(257,006)
Net assets
8,410,017
6,125,006
Capital and reserves
Called up share capital
26
25,000
25,000
Revaluation reserve
1,858,551
1,433,564
Profit and loss reserves
6,526,466
4,666,442
Total equity
8,410,017
6,125,006

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,143,620 (2022 - £1,265,076 profit).

The financial statements were approved by the board of directors and authorised for issue on 10 September 2024 and are signed on its behalf by:
10 September 2024
Victor Gaeta
Director
Company Registration No. 02151635
Vectaire Limited
Group statement of changes in equity
For the year ended 31 December 2023
11
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
25,000
1,463,762
4,853,745
6,342,507
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
1,291,089
1,291,089
Dividends
11
-
-
(200,000)
(200,000)
Transfers
-
(30,198)
30,198
-
Balance at 31 December 2022
25,000
1,433,564
5,975,032
7,433,596
Year ended 31 December 2023:
Profit for the year
-
-
3,032,922
3,032,922
Other comprehensive income:
Revaluation of tangible fixed assets
-
650,876
-
650,876
Tax relating to other comprehensive income
-
(153,235)
-
0
(153,235)
Total comprehensive income for the year
-
497,641
3,032,922
3,530,563
Transfers
-
(72,654)
72,654
-
Balance at 31 December 2023
25,000
1,858,551
9,080,608
10,964,159
Vectaire Limited
Company statement of changes in equity
For the year ended 31 December 2023
12
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
25,000
1,463,762
3,571,168
5,059,930
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
1,265,076
1,265,076
Dividends
11
-
-
(200,000)
(200,000)
Transfers
-
(30,198)
30,198
-
Balance at 31 December 2022
25,000
1,433,564
4,666,442
6,125,006
Year ended 31 December 2023:
Profit for the year
-
-
2,143,620
2,143,620
Other comprehensive income:
Revaluation of tangible fixed assets
-
175,876
-
175,876
Tax relating to other comprehensive income
-
(34,485)
-
0
(34,485)
Total comprehensive income for the year
-
141,391
2,143,620
2,285,011
Transfers
-
283,596
(283,596)
-
Balance at 31 December 2023
25,000
1,858,551
6,526,466
8,410,017
Vectaire Limited
Group statement of cash flows
For the year ended 31 December 2023
13
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
34
2,635,850
314,336
Interest paid
(169,434)
(131,072)
Income taxes paid
(595,098)
(118,427)
Net cash inflow from operating activities
1,871,318
64,837
Investing activities
Purchase of tangible fixed assets
(923,388)
(96,462)
Proceeds on disposal of tangible fixed assets
2,293
-
Interest received
6,031
875
Net cash used in investing activities
(915,064)
(95,587)
Financing activities
Proceeds of new bank loans
498,750
-
Repayment of bank loans
(288,917)
(386,829)
Dividends paid to equity shareholders
-
(200,000)
Net cash generated from/(used in) financing activities
209,833
(586,829)
Net increase/(decrease) in cash and cash equivalents
1,166,087
(617,579)
Cash and cash equivalents at beginning of year
281,904
899,483
Cash and cash equivalents at end of year
1,447,991
281,904
Relating to:
Cash at bank and in hand
1,559,400
846,689
Bank overdrafts included in creditors payable within one year
(111,409)
(564,785)
Vectaire Limited
Notes to the financial statements
For the year ended 31 December 2023
14
1
Accounting policies
Company information

Vectaire Limited (“the company”) is a private company limited by shares incorporated in England and Wales. The registered office is Lincoln Road, Cressex Business Park, High Wycombe, Buckinghamshire, HP12 3RH.

 

The group consists of Vectaire Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

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

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 exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

The consolidated financial statements incorporate those of Vectaire 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.

 

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

The Group financial statements consolidate the financial statements of the Company and its subsidiary undertakings drawn up to 31 December each year. Where necessary adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the Group. All intra-group transactions, balances, income and expenses are eliminated on consolidation.

Vectaire Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
15
1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.4
Turnover

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

1.5
Research and development expenditure

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

1.6
Intangible fixed assets - goodwill

Goodwill arising on the acquisition of trade and assets represents the excess of the fair value of the consideration over the fair value of the identifiable assets and liabilities acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Tangible fixed assets

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

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

Freehold property
2% of cost
Leasehold buildings
Applied over the lease term
Plant and machinery
25%-33% of cost
Fixtures, fittings & equipment
20%-25% of cost
Motor vehicles
25% of cost

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

Vectaire Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
16
1.8
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

1.9
Impairment of fixed assets

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

 

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

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

 

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

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

1.10
Stocks

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

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

1.11
Cash and cash equivalents

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

Vectaire Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
17
1.12
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 statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

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

Other financial assets

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

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial.

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Vectaire Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
18
Classification of financial liabilities

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

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

 

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

 

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

Derecognition of financial liabilities

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

1.13
Equity instruments

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

1.14
Taxation

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

Current tax

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

Vectaire Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
19
Deferred tax

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

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Employee benefits

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

 

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

 

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

1.16
Retirement benefits
The group operates a defined contribution scheme for the benefit of it's employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.17
Leases

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

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

1.18
Foreign exchange

Trading transactions undertaken in foreign currencies are expressed in sterling at the rate of exchange ruling on the date of the transaction. All profits and losses on exchange realised during the year are dealt with through the profit and loss account.

 

Assets and liabilities to be settled in foreign currencies are translated into sterling at the rate of exchange ruling on 31 December except where there are related or matching forward contracts when the rates specified in the contracts are used. Exchange differences are dealt with through the profit and loss account.

Vectaire Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
20
2
Critical accounting judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are 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.

Provision for obsolete stock

Provision is made for obsolete and slow moving stock based on detailed records of stock movements in

the year and provision is made for items where there have been no sales over a suitable period. The

group’s management monitor the stock holdings closely to ensure that obsolete or slow moving

stock is quickly identified and provided for in the financial statements.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sale of goods
27,978,733
21,364,703
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
27,855,157
21,254,145
Europe
123,576
110,558
27,978,733
21,364,703
2023
2022
£
£
Other revenue
Interest income
6,031
875
Vectaire Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
21
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(78,859)
(57,866)
Research and development costs
61,713
20,302
Depreciation of owned tangible fixed assets
133,310
139,282
Profit on disposal of tangible fixed assets
(500)
-
Cost of stocks recognised as an expense
15,607,870
12,211,757
Operating lease charges
353,672
334,149
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
26,055
19,000
Audit of the financial statements of the company's subsidiaries
31,240
28,690
57,295
47,690
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
46,910
127,433
Company pension contributions to defined contribution schemes
-
401
46,910
127,834

As total directors' remuneration was less than £200,000 in the both years, there is no disclosure in respect of highest paid director. Key management personnel remuneration in the group was considered to be directors of the parent and subsidiary companies and totalled £222,451 for the year to 31 December 2023 (2022: £309,710).

Vectaire Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
22
7
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Administration
40
33
22
17
Manufacturing and warehouse
34
27
3
3
Sales
27
27
12
15
Total
101
87
37
35

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
4,680,734
3,986,768
1,811,156
1,601,436
Social security costs
491,765
422,057
218,988
184,406
Pension costs
94,144
81,596
44,166
39,010
5,266,643
4,490,421
2,074,310
1,824,852
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
6,031
875
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
99,632
71,680
Interest on invoice finance arrangements
69,802
59,392
Total finance costs
169,434
131,072
Vectaire Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
23
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
932,497
309,533
Deferred tax
Origination and reversal of timing differences
48,958
63,798
Total tax charge
981,455
373,331

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

2023
2022
£
£
Profit before taxation
4,014,377
1,664,420
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
943,379
316,240
Tax effect of expenses that are not deductible in determining taxable profit
(11,266)
18,995
Effect of change in corporation tax rate
815
-
Permanent capital allowances in excess of depreciation
(431)
2,416
Research and development tax credit
-
0
(28,118)
Deferred tax movement
48,958
63,798
Taxation charge
981,455
373,331

In addition to the amount charged to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:

2023
2022
£
£
Deferred tax arising on:
Revaluation of property
153,235
-
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
-
200,000
Vectaire Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
24
12
Research and development

During the year the group undertook research and development expenditure amounting to £185,627 (2022: £113,838).

13
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
147,970
Amortisation and impairment
At 1 January 2023 and 31 December 2023
147,970
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
-
0
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
Vectaire Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
25
14
Tangible fixed assets
Group
Freehold property
Leasehold buildings
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation - restated
At 1 January 2023
-
0
3,414,441
1,100,551
248,413
46,589
4,809,994
Additions
735,548
-
0
108,582
79,258
-
0
923,388
Disposals
-
0
-
0
(169,295)
(2,063)
(32,099)
(203,457)
Revaluation
-
0
575,000
-
0
-
0
-
0
575,000
At 31 December 2023
735,548
3,989,441
1,039,838
325,608
14,490
6,104,925
Depreciation and impairment
At 1 January 2023
-
0
52,379
991,096
130,491
36,325
1,210,291
Depreciation charged in the year
6,252
37,938
69,301
16,197
3,622
133,310
Eliminated in respect of disposals
-
0
-
0
(169,295)
(270)
(32,099)
(201,664)
Eliminated in respect of revaluation
-
0
(75,876)
-
0
-
0
-
0
(75,876)
Transfers
-
0
-
0
(12,216)
12,216
-
0
-
0
At 31 December 2023
6,252
14,441
878,886
158,634
7,848
1,066,061
Carrying amount
At 31 December 2023
729,296
3,975,000
160,952
166,974
6,642
5,038,864
At 31 December 2022
-
0
3,362,062
109,455
117,922
10,264
3,599,703
Vectaire Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
14
Tangible fixed assets (continued)
26

Included in the leasehold buildings above is the parent company's leasehold premises at Lincoln Road, High Wycombe. The Group has adopted the revaluation method of accounting for leasehold property assets previously held at cost. On a historical cost basis the property would have been included at an original cost of £387,000 (2022: £387,000).

 

The above leasehold buildings figure also includes the property at 56 Reith Way, Andover used by Air Vent technology Limited. This is treated as an investment property in the individual company financial statements. The property had a historic cost of £1,580,488.

 

The fair value for both properties has been arrived at on the basis of a valuation undertaken by Duncan Bailey Kennedy, independent chartered surveyors as at 31 December 2023. The valuation was made on an open market value basis by reference to market evidence of transaction prices of similar properties.

 

The freehold property figure included within the group is in respect of a property purchased by Young's Extract Supplies Limited for use of that company and will be held at historical cost.

Vectaire Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
27
14
Tangible fixed assets
Company
Leasehold buildings
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 January 2023
1,000,000
559,853
97,864
24,390
1,682,107
Additions
-
0
18,105
7,671
-
0
25,776
Disposals
-
0
(162,495)
(2,063)
(9,900)
(174,458)
Revaluation
100,000
-
0
-
0
-
0
100,000
At 31 December 2023
1,100,000
415,463
103,472
14,490
1,633,425
Depreciation and impairment
At 1 January 2023
37,938
542,254
69,626
14,126
663,944
Depreciation charged in the year
37,938
32,343
(2,913)
3,622
70,990
Eliminated in respect of disposals
-
0
(162,495)
(270)
(9,900)
(172,665)
Eliminated in respect of revaluation
(75,876)
-
0
-
0
-
0
(75,876)
Transfers
-
0
(12,216)
12,216
-
0
-
0
At 31 December 2023
-
0
399,886
78,659
7,848
486,393
Carrying amount
At 31 December 2023
1,100,000
15,577
24,813
6,642
1,147,032
At 31 December 2022
962,062
17,599
28,238
10,264
1,018,163

Included in leasehold building above is the company's leasehold premises at Lincoln Road, High Wycombe. The company has adopted the revaluation method of accounting for leasehold property assets previously held at cost. On a historical cost basis the property would have been included at an original cost of £387,000 (2022: £387,000).

Vectaire Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
28
15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
196,260
196,260
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
196,260
Carrying amount
At 31 December 2023
196,260
At 31 December 2022
196,260
16
Subsidiaries

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

Name of undertaking
Country of
Nature of business
Class of
% Held
incorporation
shareholding
Direct
Indirect
Air Vent Technology Limited
England and Wales
Sale of ventilation equipment
Ordinary
100.00
-
Young's Extract Supplies Limited
England and Wales
Sale of ventilation equipment
Ordinary
100.00
-
Casavent limited
England and Wales
Dormant
Ordinary
-
100.00
The aggregate capital and reserves and the profit for the year of the subsidiaries noted above was as follows:
Name of undertaking
Profit/(Loss)
Capital and Reserves
£
£
Air Vent Technology Limited
668,908
957,293
Young's Extract Supplies Limited
576,644
1,793,109
Casavent limited
-
1
Vectaire Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
29
17
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 January 2023
-
2,400,000
Net gains or losses through fair value adjustments
-
475,000
At 31 December 2023
-
2,875,000

Investment property comprises of property at 56 Reith Way, Andover used by Air Vent Technology Limited. The fair value of the investment property has been arrived at on the basis of a valuation carried out by Duncan Bailey Kennedy independent Chartered Surveyors as at 31 December 2023, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

 

18
Prior year restatement

The directors have assessed the primary purpose of the property at 56 Reith Way, Andover to be that of providing a production premises for Air Vent Technology Limited and as such have recognised the property within Property, Plant and Equipment in the consolidated accounts for the year ended 31 December 2023. In the prior year consolidated accounts the property was previously recognised as an investment property, as such the 31 December 2022 Group statement of financial position has been restated to include the property within tangible fixed assets.

 

 

19
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
6,231,679
4,993,759
1,152,037
1,040,456
20
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,925,323
3,930,358
1,958,013
2,031,979
Amounts owed by group undertakings
-
-
3,346,561
1,495,522
Other debtors
175,978
519,779
105,351
267,540
Prepayments and accrued income
349,814
281,036
96,110
70,281
4,451,115
4,731,173
5,506,035
3,865,322
Vectaire Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
30
21
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
23
409,345
844,785
280,000
280,000
Trade creditors
2,617,854
3,387,146
1,053,132
780,773
Corporation tax payable
646,932
309,533
286,809
221,713
Other taxation and social security
647,523
539,939
372,625
307,901
Other creditors
50,056
299,715
50,056
200,296
Accruals and deferred income
617,426
422,937
344,860
252,315
4,989,136
5,804,055
2,387,482
2,042,998
22
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
23
868,564
676,667
396,667
676,667
23
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
1,166,500
956,667
676,667
956,667
Bank overdrafts
111,409
564,785
-
0
-
0
1,277,909
1,521,452
676,667
956,667
Payable within one year
409,345
844,785
280,000
280,000
Payable after one year
868,564
676,667
396,667
676,667

The bank loans held by the company are secured by fixed charges over Plot 56 Reith Way, Portway West Business Park, Andover, Hampshire, SP10 3TY, and the property at Lincoln road, Cressex business Park, High Wycombe, which are both properties owned by the company. In addition the bank holds a debenture over all company/group assets.

 

In addition to this within the group there is a bank loan in respect of a mortgage held on Sutton House, Helsinki Road, Kingston Upon Hull and is secured by a fixed charge over any tangible assets kept at the property as well as a full title deed guarantee.

Included within bank loans and overdrafts falling due within one year are amounts of £111,409 (2022: £564,785) secured under a charge over the assets of the group.

 

Vectaire Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
31
24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to income statement in respect of defined contribution schemes
94,144
81,596

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.

25
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
As restated
Group
£
£
Accelerated capital allowances
61,227
12,269
Revaluation of tangible fixed assets
397,972
244,737
459,199
257,006
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
10,581
12,269
Revaluation of tangible fixed assets
107,139
72,654
Investment property
290,833
172,083
408,553
257,006
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
257,006
257,006
Charge to profit or loss
48,958
151,547
Charge to other comprehensive income
153,235
-
Liability at 31 December 2023
459,199
408,553

The deferred tax liability set out above is expected to reverse when the gains on the investment property and tangible fixed assets are realised.

Vectaire Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
32
26
Share capital
Group and company
2023
2022
Ordinary share capital
£
£
Authorised, issued and fully paid
25,000 Ordinary shares of £1 each
25,000
25,000
27
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
276,414
288,724
65,409
48,685
Between two and five years
327,693
513,512
100,870
75,684
604,107
802,236
166,279
124,369
28
Events after the reporting date

After the reporting date stock with a cost of £388,082 was damaged as a result of a flood at subsidiary company Air Vent Technology Limited. The cost of this stock together with other associated costs incurred amounting to £14,770 were recovered in full via a successful insurance claim.

Vectaire Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
33
29
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sale of goods
Purchase of goods
2023
2022
2023
2022
£
£
£
£
Group
Companies in which Victor Gaeta is director and shareholder
783,959
934,607
25,000
25,000
Company
Companies in which Victor Gaeta is director and shareholder
301,927
325,439
25,000
25,000

The following amounts were outstanding at the reporting end date:

Amounts owed to related parties
2023
2022
£
£
Group
Companies in which Victor Gaeta is director and shareholder
-
3,680
Company
Companies in which Victor Gaeta is director and shareholder
-
3,680

The following amounts were outstanding at the reporting end date:

Amounts owed by related parties
2023
2022
Balance
Balance
£
£
Group
Companies in which Victor Gaeta is director and shareholder
156,277
447,982
Company
Companies in which Victor Gaeta is director and shareholder
87,697
262,740
Vectaire Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
34
30
Directors' transactions

At the year end there is an amount of £11,569 included within other debtors in respect of amounts owed by the Directors (2022 - £196,616 owed to Directors and included within other creditors).

31
Capital commitments

There was no committed capital expenditure at the current year end, at the previous year end the group had committed to capital expenditure of £55,709 for tangible fixed assets that were installed in the year.

32
Controlling party

The ultimate controlling party is Victor Gaeta by virtue of his shareholding.

33
Analysis of changes in net funds/(debt) - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
846,689
712,711
1,559,400
Bank overdrafts
(564,785)
453,376
(111,409)
281,904
1,166,087
1,447,991
Borrowings excluding overdrafts
(956,667)
(209,833)
(1,166,500)
(674,763)
956,254
281,491
34
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
3,032,922
1,291,089
Adjustments for:
Taxation charged
981,455
373,331
Interest payable
169,434
131,072
Interest received
(6,031)
(875)
Gain on disposal of tangible fixed assets
(500)
-
Depreciation and impairment of tangible fixed assets
133,310
139,282
Movements in working capital:
Increase in stocks
(1,237,920)
(1,489,132)
Decrease/(increase) in debtors
280,058
(1,099,275)
(Decrease)/increase in creditors
(716,878)
1,021,776
Decrease in deferred income
-
(52,932)
Cash generated from operations
2,635,850
314,336
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