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Registration number: 11459949

Advanced Tooling Systems (Group) Ltd

Annual Report and Consolidated Financial Statements

for the Year Ended 31 December 2023

 

Advanced Tooling Systems (Group) Ltd

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 9

Consolidated Profit and Loss Account

10

Consolidated Statement of Comprehensive Income

11

Consolidated Balance Sheet

12

Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Statement of Changes in Equity

15

Consolidated Statement of Cash Flows

16

Statement of Cash Flows

17

Notes to the Financial Statements

18 to 38

 

Advanced Tooling Systems (Group) Ltd

Company Information

Directors

Mr Keith William Best

Mr Adrian Gander

Mr Mark Terry

Registered office

Coldred Road
Parkwood Industrial Estate
Maidstone
Kent
ME15 9XX

Auditors

Pure Audit Limited
Chartered Certified Accountants
76 Canterbury Innovation Centre
University Road
Canterbury
Kent
CT2 7FG

 

Advanced Tooling Systems (Group) Ltd

Strategic Report for the Year Ended 31 December 2023

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

Principal activity

The principal activity of the group is the production of tooling, checking fixtures and automatic equipment for the motor, aeronautical and packaging industries in the United Kingdom and Europe.

Fair review of the business

The performance of the group during 2023 has been split into 2 halves with the first 6 months being very good and the second half of the year being slow with many of the new projects on hold. This changed at the end of the year with many of those projects starting giving us a great start to 2024. The utility costs while stabilizing are still very high and are having an effect on the bottom line. The UK motor business continues to be the largest sector for the group, but great gains in both our aerospace customers and the new area in the packaging sector are having the right affect for the future


There has been a significant amount of company’s both in the UK and Europe that the group compete against have been failing. This has created some very good opportunities for the group, given our strong financial position. The group will continue to consolidate its position and concentrate its efforts on achieving maximum growth in its existing market segments.

The group's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Return on capital employed

%

6

2

Debtors days

days

126

108

Quick (Acid Test) Ratio

2

3

Cashflow

The business as a group has £1,797,458 in cash as at 10th September 2024 which is sufficient to cover its fixed costs for over 12 months.

The business also has significant production equipment and assets it can use to obtain asset backed lease funds if necessary.

The Directors believe the business has sufficient cash, customer orders and funding options to continue operating for the foreseeable future being at least 12 months from the date of these accounts.

Principal risks and uncertainties

Reduction of sales orders from customers. There has been a big drive within the group to increase our customer base within our current and new markets

Stability in materials and utility costs, this is something we are having to manage much closer than in previous years

Weak financial position of some of our customers. We are monitoring very closely some of our larger customers to manage our exposure

The Directors believe the business has sufficient cash, customer orders and funding options to continue operating for the foreseeable future being at least 12 months from the date of these accounts.

 

Advanced Tooling Systems (Group) Ltd

Strategic Report for the Year Ended 31 December 2023

Approved and authorised by the Board on 17 September 2024 and signed on its behalf by:
 

.........................................
Mr Adrian Gander
Director

 

Advanced Tooling Systems (Group) Ltd

Directors' Report for the Year Ended 31 December 2023

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

Directors of the group

The directors who held office during the year were as follows:

Mr Keith William Best

Mr Adrian Gander

Mr Mark Terry

Future developments

While the growth has been slow in 2023 significant projects have been won at the end of the year which will lead to a very strong 2024. We are expecting a doubling in both 2024 and 2025

Going concern

The group's business is an engineering company specialising in bespoke production machinery in the Automotive industry, full mock up for the interiors of the aircraft industry, injection tooling and white goods industry and has grown revenue and been profitable for the past 13 years. The group has a customer base of OEM in the car industry and First Tier suppliers of whom are all international companies. The group offers products to all its customers and has strong relationships with all of them. Revenue is spread across the customers with the automotive sector customers accounting for approx. 50%, Aircraft industry approx. 25%, the remaining 25% made up of white goods / building industry / electrical / personal safety equipment of 2023/24 revenue. Further detail about current uncertainty and going concern are in the strategic report.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Reappointment of auditors

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Pure Audit Limited as auditors of the company is to be proposed at the forthcoming Annual General Meeting.

Approved and authorised by the Board on 17 September 2024 and signed on its behalf by:
 

.........................................
Mr Adrian Gander
Director

 

Advanced Tooling Systems (Group) Ltd

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 the company 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the 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 the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Advanced Tooling Systems (Group) Ltd

Independent Auditor's Report to the Members of Advanced Tooling Systems (Group) Ltd

Opinion

We have audited the financial statements of Advanced Tooling Systems (Group) Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, 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 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 the parent company's 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 auditor 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Advanced Tooling Systems (Group) Ltd

Independent Auditor's Report to the Members of Advanced Tooling Systems (Group) Ltd

We have nothing to report in this regard.

Opinion on other matter 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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

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 5], 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 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 company or to cease operations, or have no realistic alternative but to do so.

Auditor 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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

 

Advanced Tooling Systems (Group) Ltd

Independent Auditor's Report to the Members of Advanced Tooling Systems (Group) Ltd

Extent to which the audit was considered capable of detecting irregularities, including fraud:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities:

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

The nature of the industry and sector, control environment and business performance including the design of the Company’s remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets; results of our enquiries of management about their own identification and assessment of the risks of irregularities and any matters we identified having reviewed the Company’s policies and procedures; the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Company operates in and focused on those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006 and local tax legislation.

Audit response to risks identified

As a result of performing the above, we identified revenue recognition as key audit matter related to the potential risk of fraud. Our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

- enquiring of management, concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- obtaining an understanding of provisions and discussing with management to understand the basis of recognition or non-recognition of tax provisions; and in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.

 

Advanced Tooling Systems (Group) Ltd

Independent Auditor's Report to the Members of Advanced Tooling Systems (Group) Ltd

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

......................................
R M Asif Rafique (Senior Statutory Auditor)
For and on behalf of Pure Audit Limited, Statutory Auditor

76 Canterbury Innovation Centre
University Road
Canterbury
Kent
CT2 7FG

17 September 2024

 

Advanced Tooling Systems (Group) Ltd

Consolidated Profit and Loss Account for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

7,450,073

7,706,639

Cost of sales

 

(5,745,547)

(6,239,361)

Gross profit

 

1,704,526

1,467,278

Administrative expenses

 

(1,397,352)

(1,356,155)

Other operating income

3

3,175

-

Operating profit

5

310,349

111,123

Other interest receivable and similar income

449

23

Interest payable and similar expenses

6

(35,139)

(22,628)

   

(34,690)

(22,605)

Profit before tax

 

275,659

88,518

Tax on profit

9

(6,001)

48,755

Profit for the financial year

 

269,658

137,273

Profit/(loss) attributable to:

 

Owners of the company

 

269,658

137,273

 

Advanced Tooling Systems (Group) Ltd

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

2023
£

2022
£

Profit for the year

269,658

137,273

Total comprehensive income for the year

269,658

137,273

Total comprehensive income attributable to:

Owners of the company

269,658

137,273

 

Advanced Tooling Systems (Group) Ltd

(Registration number: 11459949)
Consolidated Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

10

246,365

339,988

Tangible assets

11

1,923,933

2,001,417

Investments

12

50

-

 

2,170,348

2,341,405

Current assets

 

Stocks

13

160,015

163,419

Debtors

14

4,078,456

4,114,405

Cash at bank and in hand

 

1,581,903

1,126,175

 

5,820,374

5,403,999

Creditors: Amounts falling due within one year

16

(2,343,563)

(2,084,258)

Net current assets

 

3,476,811

3,319,741

Total assets less current liabilities

 

5,647,159

5,661,146

Creditors: Amounts falling due after more than one year

16

(432,649)

(501,962)

Provisions for liabilities

(153,769)

(156,885)

Net assets

 

5,060,741

5,002,299

Capital and reserves

 

Called up share capital

18

40,594

40,594

Other reserves

671,965

671,965

Retained earnings

4,348,182

4,289,740

Equity attributable to owners of the company

 

5,060,741

5,002,299

Shareholders' funds

 

5,060,741

5,002,299

Approved and authorised by the Board on 17 September 2024 and signed on its behalf by:
 

.........................................
Mr Adrian Gander
Director

 

Advanced Tooling Systems (Group) Ltd

(Registration number: 11459949)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Investments

12

942,735

942,735

Current assets

 

Debtors

14

-

1,837

Cash at bank and in hand

 

26,230

22,768

 

26,230

24,605

Creditors: Amounts falling due within one year

16

(628)

(1,048)

Net current assets

 

25,602

23,557

Net assets

 

968,337

966,292

Capital and reserves

 

Called up share capital

18

40,594

40,594

Retained earnings

927,743

925,698

Shareholders' funds

 

968,337

966,292

Approved and authorised by the Board on 17 September 2024 and signed on its behalf by:
 

.........................................
Mr Adrian Gander
Director

 

Advanced Tooling Systems (Group) Ltd

Consolidated Statement of Changes in Equity for the Year Ended 31 December 2023
Equity attributable to the parent company

Share capital
£

Merger reserve
£

Other reserves
£

Retained earnings
£

Total
£

At 1 January 2023

40,594

(917,685)

1,589,650

4,289,740

5,002,299

Profit for the year

-

-

-

269,658

269,658

Dividends

-

-

-

(211,216)

(211,216)

At 31 December 2023

40,594

(917,685)

1,589,650

4,348,182

5,060,741

Total equity
£

At 1 January 2023

5,002,299

Profit for the year

269,658

Dividends

(211,216)

At 31 December 2023

5,060,741

Share capital
£

Merger reserve
£

Other reserves
£

Retained earnings
£

Total
£

At 1 January 2022

40,594

(917,685)

1,589,650

4,365,604

5,078,163

Profit for the year

-

-

-

137,273

137,273

Dividends

-

-

-

(213,137)

(213,137)

At 31 December 2022

40,594

(917,685)

1,589,650

4,289,740

5,002,299

Total equity
£

At 1 January 2022

5,078,163

Profit for the year

137,273

Dividends

(213,137)

At 31 December 2022

5,002,299

 

Advanced Tooling Systems (Group) Ltd

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

Share capital
£

Retained earnings
£

Total
£

At 1 January 2023

40,594

925,698

966,292

Profit for the year

-

213,262

213,262

Dividends

-

(211,217)

(211,217)

At 31 December 2023

40,594

927,743

968,337

Share capital
£

Retained earnings
£

Total
£

At 1 January 2022

40,594

914,307

954,901

Profit for the year

-

223,628

223,628

Dividends

-

(212,237)

(212,237)

At 31 December 2022

40,594

925,698

966,292

 

Advanced Tooling Systems (Group) Ltd

Consolidated Statement of Cash Flows for the Year Ended 31 December 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

269,658

137,273

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

309,563

307,741

Loss on disposal of tangible assets

4

19,207

19,722

Finance income

(449)

(23)

Finance costs

6

35,139

22,628

Income tax expense

9

6,001

(48,755)

 

639,119

438,586

Working capital adjustments

 

Decrease/(increase) in stocks

13

3,404

(48,094)

Decrease/(increase) in trade debtors

14

28,035

(3,478,705)

Increase in trade creditors

16

237,160

3,989,970

Cash generated from operations

 

907,718

901,757

Income taxes received/(paid)

9

38,073

(7,916)

Net cash flow from operating activities

 

945,791

893,841

Cash flows from investing activities

 

Interest received

449

23

Acquisitions of tangible assets

(157,666)

(333,905)

Proceeds from sale of tangible assets

 

1

34,078

Acquisition of investments in joint ventures and associates

12

(50)

-

Net cash flows from investing activities

 

(157,266)

(299,804)

Cash flows from financing activities

 

Interest paid

6

(35,139)

(22,628)

Proceeds from bank borrowing draw downs

 

(141,503)

(103,926)

Payments to finance lease creditors

 

55,061

(1,641)

Dividends paid

(211,216)

(213,137)

Net cash flows from financing activities

 

(332,797)

(341,332)

Net increase in cash and cash equivalents

 

455,728

252,705

Cash and cash equivalents at 1 January

 

1,126,175

873,470

Cash and cash equivalents at 31 December

 

1,581,903

1,126,175

 

Advanced Tooling Systems (Group) Ltd

Statement of Cash Flows for the Year Ended 31 December 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

213,262

223,628

Adjustments to cash flows from non-cash items

 

Finance income

(222,001)

(238,000)

 

(8,739)

(14,372)

Working capital adjustments

 

Decrease/(increase) in trade debtors

14

1,837

(1,511)

(Decrease)/increase in trade creditors

16

(420)

1,048

Net cash flow from operating activities

 

(7,322)

(14,835)

Cash flows from investing activities

 

Dividend income

222,001

238,000

Cash flows from financing activities

 

Dividends paid

(211,217)

(212,237)

Net increase in cash and cash equivalents

 

3,462

10,928

Cash and cash equivalents at 1 January

 

22,768

11,840

Cash and cash equivalents at 31 December

 

26,230

22,768

 

Advanced Tooling Systems (Group) Ltd

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

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Coldred Road
Parkwood Industrial Estate
Maidstone
Kent
ME15 9XX
England

These financial statements were authorised for issue by the Board on 17 September 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2023.

 

Advanced Tooling Systems (Group) Ltd

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

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

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Going concern

The Group's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Group should be able to operate within the level of its current facilities. After making enquiries, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its financial statements.

 

Advanced Tooling Systems (Group) Ltd

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

Judgements

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group and Company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in Critical accounting judgement and estimation uncertainty note.

Key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances..
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

i) Impairment of intangible assets and goodwill
The Group considers whether intangible assets and / or goodwill are impaired. Where an indication of impairment is identified, the estimation of recoverable value requires estimation of the recoverable value of the cash generating units (CGUs). This requires estimation of the future cash flows from the CGUs and also selection of appropriate discount rates in order to calculate the net present value of those cash flows.

ii) Useful economic lives of tangible assets and goodwill
The annual depreciation and amortisation charge for tangible assets and goodwill is sensitive to changes in estimated useful economic lives and residual values of assets. The useful economic lives and residual values are re-assessed annually. The are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and physical condition of the assets. See notes 10 and 11 for the carrying amounts of tangible assets and goodwill and note 2 for the useful economic lives of each class of assets.

iii) Impairment of debtors
The Group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtors, the ageing profile of debtors and historical experience. See note 14 for the net carrying amount of the debtors and associated impairment provision.
.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.

The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.

Contract revenue recognition

Amounts recoverable on contracts are stated at the expected selling price attainable at the year end and represent work in progress that has not been billed at the year end.

 

Advanced Tooling Systems (Group) Ltd

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

Foreign currency transactions and balances

The Group's functional and presentation currency is the pound sterling.

Foreign currency transactions are translated into the functional currency using the exchange rates ruling at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold Property

2% on cost

Short Leasehold

Straight Line over 25 years

Plant and machinery

25% on reducing balance and 15% on reducing balance

Furniture and fittings

25% on reducing balance and 15% on reducing balance

 

Advanced Tooling Systems (Group) Ltd

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

Motor vehicles

25% on reducing balance

Computer equipment

50% on cost and 33% on reducing balance

Merger accounting

On 28.02.2020 Advanced Tooling Systems (Group) Ltd acquired 100% of the share capital in Advanced Tooling Systems (Holdings) Ltd. This has been accounted for using merger accounting.

Goodwill

Goodwill, being the amount paid on acquisition of business by Advanced Tooling Systems UK Limited in 2003, 2006 and 2007 is being amortised evenly over its estimated useful life of twenty years.

The directors have carried out an impairment review of the goodwill in ATS UK Ltd balance sheet and are of the opinion that the recoverable amount, based on expected future cash flows, is not materially different from the book value. The directors believe that the remaining life of 2.5 years as at 31 December 2023 is a reasonable estimate of the period over which the economic benefits are expected to flow to the Group.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Computer software

20% on cost

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

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

 

Advanced Tooling Systems (Group) Ltd

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

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

Advanced Tooling Systems (Group) Ltd

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

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Share based payments

The group operates an equity-settled, share-based compensation plan, under which the entity receives services from employees as consideration for equity instruments (options) of the entity. The fair value of the employee services received is measured by reference to the estimated fair value at the grant date of equity instruments granted and is recognised as an expense over the vesting period. The estimated fair value of the option granted is calculated using the Black Scholes option pricing model. The total amount expensed is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied.

The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.

3

Other operating income

The analysis of the group's other operating income for the year is as follows:

2023
£

2022
£

Miscellaneous other operating income

3,175

-

4

Other gains and losses

The analysis of the group's other gains and losses for the year is as follows:

2023
£

2022
£

Loss on disposal of Tangible assets

(19,207)

(19,722)

5

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

215,508

214,118

Amortisation expense

93,623

93,623

Operating lease expense - plant and machinery

20,214

8,892

Operating lease expense - other

799

570

Loss on disposal of property, plant and equipment

19,207

19,722

 

Advanced Tooling Systems (Group) Ltd

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

6

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

14,247

9,689

Interest on obligations under finance leases and hire purchase contracts

20,892

12,939

35,139

22,628

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

1,909,985

1,891,137

Social security costs

201,594

207,035

Pension costs, defined contribution scheme

66,493

65,363

Share-based payment expenses

-

140

2,178,072

2,163,675

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Production

48

46

Administration and support

3

3

Other departments

5

8

56

57

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

8,739

14,346

Contributions paid to money purchase schemes

27,915

24,741

36,654

39,087

9

Taxation

Tax charged/(credited) in the consolidated profit and loss account

 

Advanced Tooling Systems (Group) Ltd

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

2023
£

2022
£

Current taxation

UK corporation tax

39,275

-

UK corporation tax adjustment to prior periods

(30,158)

(119,816)

9,117

(119,816)

Deferred taxation

Arising from origination and reversal of timing differences

(3,116)

71,061

Tax expense/(receipt) in the income statement

6,001

(48,755)

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 25% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

275,659

88,518

Corporation tax at standard rate

68,915

16,818

Decrease from effect of different UK tax rates on some earnings

(10,035)

-

Effect of expense not deductible in determining taxable profit (tax loss)

4,540

4,037

Effect of tax losses

(27,906)

-

Deferred tax (credit)/expense from unrecognised tax loss or credit

(3,116)

71,061

Decrease in UK and foreign current tax from adjustment for prior periods

(30,158)

(119,816)

Tax increase/(decrease) from effect of capital allowances and depreciation

35,701

(15,716)

Tax increase from effect of unrelieved tax losses carried forward

20,839

2,909

Tax decrease arising from group relief

(52,779)

(8,048)

Total tax charge/(credit)

6,001

(48,755)

10

Intangible assets

Group

 

Advanced Tooling Systems (Group) Ltd

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

Goodwill
 £

Other intangible assets
 £

Total
£

Cost or valuation

At 1 January 2023

(122,102)

88,687

(33,415)

At 31 December 2023

(122,102)

88,687

(33,415)

Amortisation

At 1 January 2023

(462,090)

88,687

(373,403)

Amortisation charge

93,623

-

93,623

At 31 December 2023

(368,467)

88,687

(279,780)

Carrying amount

At 31 December 2023

246,365

-

246,365

At 31 December 2022

339,988

-

339,988

 

Advanced Tooling Systems (Group) Ltd

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

11

Tangible assets

Group

 

Advanced Tooling Systems (Group) Ltd

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

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Other tangible assets
£

Total
£

Cost or valuation

At 1 January 2023

1,621,177

415,280

26,549

3,069,465

5,132,471

Additions

-

110,144

-

44,640

154,784

Disposals

-

(202,396)

(750)

(242,947)

(446,093)

Foreign exchange movements

-

-

-

2,882

2,882

At 31 December 2023

1,621,177

323,028

25,799

2,874,040

4,844,044

Depreciation

At 1 January 2023

525,688

396,038

14,744

2,194,584

3,131,054

Charge for the year

39,532

37,756

2,873

135,349

215,510

Eliminated on disposal

-

(202,034)

(434)

(224,417)

(426,885)

Foreign exchange movements

-

-

-

432

432

At 31 December 2023

565,220

231,760

17,183

2,105,948

2,920,111

Carrying amount

At 31 December 2023

1,055,957

91,268

8,616

768,092

1,923,933

At 31 December 2022

1,095,489

19,242

11,805

874,881

2,001,417

Included within the net book value of land and buildings above is £248,923 (2022 - £256,422) in respect of freehold land and buildings and £26,834 (2022 - £35,719) in respect of short leasehold land and buildings and £780,201 (2022 - £803,348) in respect of long leasehold land and buildings. The long leasehold property is on 100 years lease from Feb 1979 to Feb 2078.
 

 

Advanced Tooling Systems (Group) Ltd

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

12

Investments

Group

Details of undertakings

For the year ending 31 December 2023 the following subsidiaries were entitled to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies:

ATS Automation Limited

ATS (Folkestone) Limited

ATS Mouldings Limited

Advanced Tooling Systems (Holdings) Ltd

Company

2023
£

2022
£

Investments in subsidiaries

942,735

942,735

Subsidiaries

£

Cost or valuation

At 1 January 2023

942,735

Provision

Carrying amount

At 31 December 2023

942,735

At 31 December 2022

942,735

 

Advanced Tooling Systems (Group) Ltd

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

13

Stocks

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Other inventories

160,015

163,419

-

-

Group

14

Debtors

   

Group

Company

Note

2023
£

2022
£

2023
£

2022
£

Trade debtors

 

2,563,712

2,280,016

-

-

Amounts owed by related parties

22

29,363

-

-

-

Other debtors

 

20,096

32,161

-

1,837

Prepayments

 

58,450

56,761

-

-

Gross amount due from customers for contract work

 

1,406,835

1,737,551

-

-

Income tax asset

9

-

7,916

-

-

 

4,078,456

4,114,405

-

1,837

15

Cash and cash equivalents

 

Advanced Tooling Systems (Group) Ltd

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

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Cash on hand

110

52

14

14

Cash at bank

1,581,451

1,125,785

26,216

22,754

Short-term deposits

342

338

-

-

1,581,903

1,126,175

26,230

22,768

16

Creditors

   

Group

Company

Note

2023
£

2022
£

2023
£

2022
£

Due within one year

 

Loans and borrowings

19

222,645

239,774

-

-

Trade creditors

 

860,144

1,004,353

-

-

Amounts due to related parties

22

622

-

622

622

Social security and other taxes

 

395,251

220,883

6

426

Other payables

 

786,856

573,555

-

-

Accruals

 

38,771

45,693

-

-

Income tax liability

9

39,274

-

-

-

 

2,343,563

2,084,258

628

1,048

Due after one year

 

Loans and borrowings

19

432,649

501,962

-

-

 

Advanced Tooling Systems (Group) Ltd

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

17

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £66,493 (2022 - £65,363).

Contributions totalling £8,151 (2022: £8,829) were payable to the scheme at the end of the year and are included in creditors.

18

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary of £1 each

40,514

40,514

40,514

40,514

Ordinary B of £1 each

38

38

38

38

Ordinary C of £1 each

6

6

6

6

Ordinary D of £1 each

18

18

18

18

Ordinary E of £1 each

18

18

18

18

 

40,594

40,594

40,594

40,594

 

Advanced Tooling Systems (Group) Ltd

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

19

Loans and borrowings

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

250,001

350,000

-

-

Finance lease liabilities

182,648

151,962

-

-

432,649

501,962

-

-

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Current loans and borrowings

Bank borrowings

100,000

141,504

-

-

Finance lease liabilities

122,645

98,270

-

-

222,645

239,774

-

-

Group

Bank borrowings

CBILS is denominated in sterling with a nominal interest rate of 2.62% over Base Rate%, and the final instalment is due on 9 June 2027. The carrying amount at year end is £350,000 (2022 - £450,000).

 

Advanced Tooling Systems (Group) Ltd

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

National Westminster Bank plc holds an Unscheduled Mortgage Debenture dated 31st July 2003 incorporating a fixed and floating charge over all current and future assets of a subsidiary, Advanced Tooling Systems UK Ltd.

The Bank Loan is secured against the Land & Buildings at Coldred Road, Maidstone, Kent and its associated assets. The charge was created on 30th October 2007. The property is owned by Advanced Tooling Systems UK Ltd.
 

20

Obligations under leases and hire purchase contracts

Group

Finance leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

122,645

98,270

Later than one year and not later than five years

182,648

151,962

305,293

250,232

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

82,770

73,711

Later than one year and not later than five years

137,167

126,750

Later than five years

4,475

-

224,412

200,461

 

Advanced Tooling Systems (Group) Ltd

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

The amount of non-cancellable operating lease payments recognised as an expense during the year was £101,568 (2022 - £87,345).

21

Dividends

Interim dividends paid

   

2023
£

 

2022
£

Interim dividend of £5.21 (2022 - £5.20) per each Ordinary

 

211,215

 

212,237

Interim dividend of £Nil per each Ordinary B

 

-

 

-

Interim dividend of £Nil (2022 - £150.00) per each Ordinary C

 

-

 

900

   

211,215

 

213,137

22

Related party transactions

Group

Transactions with directors

2023

At 1 January 2023
£

Repayments by director
£

At 31 December 2023
£

Mr Mark Terry

Loan from the company repayable at £262.50 per month at 0%

(1,838)

1,838

-

       
     

 

 

Advanced Tooling Systems (Group) Ltd

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

2022

At 1 January 2022
£

Advances to director
£

Repayments by director
£

At 31 December 2022
£

Mr Mark Terry

Loan from the company repayable at £262.50 per month at 0%

-

(2,625)

788

(1,838)

         
       

 

 

Advanced Tooling Systems (Group) Ltd

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

Dividends paid to directors

   

2023
£

 

2022
£

Mr Keith William Best

       

Dividends paid to director

 

18,959

 

37,174

         

Mr Adrian Gander

       

Dividends paid to director

 

108,425

 

92,934

         

Mr Mark Terry

       

Dividends paid to director

 

83,833

 

82,130

         

23

Parent and ultimate parent undertaking

The ultimate controlling party are the directors by virtue of their majority shareholding in the parent company.