Advanced Tooling Systems UK Limited 04610282 false 2023-01-01 2023-12-31 2023-12-31 The principal activity of the company is manufacturer of specialied tooling machines Digita Accounts Production Advanced 6.30.9574.0 true true true true false true false 04610282 2023-01-01 2023-12-31 04610282 2023-12-31 04610282 bus:OrdinaryShareClass1 2023-12-31 04610282 bus:OrdinaryShareClass2 2023-12-31 04610282 core:RetainedEarningsAccumulatedLosses 2023-12-31 04610282 core:RevaluationReserve 2023-12-31 04610282 core:ShareCapital 2023-12-31 04610282 core:CurrentFinancialInstruments 2023-12-31 04610282 core:CurrentFinancialInstruments core:WithinOneYear 2023-12-31 04610282 core:CurrentFinancialInstruments core:WithinOneYear 2 2023-12-31 04610282 core:Non-currentFinancialInstruments 2023-12-31 04610282 core:Non-currentFinancialInstruments core:AfterOneYear 2023-12-31 04610282 core:Goodwill 2023-12-31 04610282 core:OtherResidualIntangibleAssets 2023-12-31 04610282 core:BetweenOneFiveYears 2023-12-31 04610282 core:WithinOneYear 2023-12-31 04610282 core:FurnitureFittingsToolsEquipment 2023-12-31 04610282 core:LandBuildings 2023-12-31 04610282 core:MotorVehicles 2023-12-31 04610282 core:OtherPropertyPlantEquipment 2023-12-31 04610282 core:DeferredTaxation 2023-12-31 04610282 core:ParentEntities 2023-12-31 04610282 1 2023-12-31 04610282 2 2023-12-31 04610282 bus:FRS102 2023-01-01 2023-12-31 04610282 bus:Audited 2023-01-01 2023-12-31 04610282 bus:FullAccounts 2023-01-01 2023-12-31 04610282 bus:RegisteredOffice 2023-01-01 2023-12-31 04610282 bus:CompanySecretaryDirector1 2023-01-01 2023-12-31 04610282 bus:Director2 2023-01-01 2023-12-31 04610282 bus:Director4 2023-01-01 2023-12-31 04610282 bus:OrdinaryShareClass1 2023-01-01 2023-12-31 04610282 bus:OrdinaryShareClass2 2023-01-01 2023-12-31 04610282 bus:Consolidated 2023-01-01 2023-12-31 04610282 bus:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 04610282 1 2023-01-01 2023-12-31 04610282 core:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 04610282 core:RevaluationReserve 2023-01-01 2023-12-31 04610282 core:ShareCapital 2023-01-01 2023-12-31 04610282 core:ComputerSoftware 2023-01-01 2023-12-31 04610282 core:Goodwill 2023-01-01 2023-12-31 04610282 core:OtherResidualIntangibleAssets 2023-01-01 2023-12-31 04610282 core:PlantEquipmentOtherAssetsUnderOperatingLeases 2023-01-01 2023-12-31 04610282 core:ComputerEquipment 2023-01-01 2023-12-31 04610282 core:FurnitureFittings 2023-01-01 2023-12-31 04610282 core:FurnitureFittingsToolsEquipment 2023-01-01 2023-12-31 04610282 core:LandBuildings 2023-01-01 2023-12-31 04610282 core:MotorVehicles 2023-01-01 2023-12-31 04610282 core:OtherPropertyPlantEquipment 2023-01-01 2023-12-31 04610282 core:PlantMachinery 2023-01-01 2023-12-31 04610282 core:DeferredTaxation 2023-01-01 2023-12-31 04610282 core:ParentEntities core:RenderingOrReceivingServices 2023-01-01 2023-12-31 04610282 core:ParentEntities core:SaleOrPurchaseGoods 2023-01-01 2023-12-31 04610282 core:Subsidiary1 2023-01-01 2023-12-31 04610282 core:Subsidiary1 1 2023-01-01 2023-12-31 04610282 core:Subsidiary1 countries:UnitedKingdom 2023-01-01 2023-12-31 04610282 core:UKTax 2023-01-01 2023-12-31 04610282 1 2023-01-01 2023-12-31 04610282 2 2023-01-01 2023-12-31 04610282 1 2023-01-01 2023-12-31 04610282 countries:AllCountries 2023-01-01 2023-12-31 04610282 2022-12-31 04610282 core:RetainedEarningsAccumulatedLosses 2022-12-31 04610282 core:RevaluationReserve 2022-12-31 04610282 core:ShareCapital 2022-12-31 04610282 core:Goodwill 2022-12-31 04610282 core:OtherResidualIntangibleAssets 2022-12-31 04610282 core:CostValuation 2022-12-31 04610282 core:FurnitureFittingsToolsEquipment 2022-12-31 04610282 core:LandBuildings 2022-12-31 04610282 core:MotorVehicles 2022-12-31 04610282 core:OtherPropertyPlantEquipment 2022-12-31 04610282 core:DeferredTaxation 2022-12-31 04610282 2022-01-01 2022-12-31 04610282 2022-12-31 04610282 bus:OrdinaryShareClass1 2022-12-31 04610282 bus:OrdinaryShareClass2 2022-12-31 04610282 core:RetainedEarningsAccumulatedLosses 2022-12-31 04610282 core:RevaluationReserve 2022-12-31 04610282 core:ShareCapital 2022-12-31 04610282 core:CurrentFinancialInstruments 2022-12-31 04610282 core:CurrentFinancialInstruments core:WithinOneYear 2022-12-31 04610282 core:CurrentFinancialInstruments core:WithinOneYear 2 2022-12-31 04610282 core:Non-currentFinancialInstruments 2022-12-31 04610282 core:Non-currentFinancialInstruments core:AfterOneYear 2022-12-31 04610282 core:Goodwill 2022-12-31 04610282 core:OtherResidualIntangibleAssets 2022-12-31 04610282 core:BetweenOneFiveYears 2022-12-31 04610282 core:WithinOneYear 2022-12-31 04610282 core:FurnitureFittingsToolsEquipment 2022-12-31 04610282 core:LandBuildings 2022-12-31 04610282 core:MotorVehicles 2022-12-31 04610282 core:OtherPropertyPlantEquipment 2022-12-31 04610282 core:ParentEntities 2022-12-31 04610282 1 2022-12-31 04610282 2 2022-12-31 04610282 1 2022-01-01 2022-12-31 04610282 core:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 04610282 core:RevaluationReserve 2022-01-01 2022-12-31 04610282 core:ShareCapital 2022-01-01 2022-12-31 04610282 core:PlantEquipmentOtherAssetsUnderOperatingLeases 2022-01-01 2022-12-31 04610282 core:ParentEntities core:RenderingOrReceivingServices 2022-01-01 2022-12-31 04610282 core:ParentEntities core:SaleOrPurchaseGoods 2022-01-01 2022-12-31 04610282 core:Subsidiary1 1 2022-01-01 2022-12-31 04610282 core:UKTax 2022-01-01 2022-12-31 04610282 2021-12-31 04610282 core:RetainedEarningsAccumulatedLosses 2021-12-31 04610282 core:RevaluationReserve 2021-12-31 04610282 core:ShareCapital 2021-12-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 04610282

Advanced Tooling Systems UK Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

Advanced Tooling Systems UK Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 10

Profit and Loss Account

11

Statement of Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Statement of Cash Flows

15

Notes to the Financial Statements

16 to 34

 

Advanced Tooling Systems UK Limited

Company Information

Directors

Mr Mark Terry

Mr Adrian Gander

Mr Keith William Best

Company secretary

Mr Adrian Gander

Registered office

Coldred Road
Parkwood Industrial Estate
Maidstone
Kent
ME15 9XX

Auditors

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

 

Advanced Tooling Systems UK Limited

Strategic Report for the Year Ended 31 December 2023

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

Fair review of the business

The company is a trading company where the principal activity continues to be the production of specialist tooling, checking fixtures and automation equipment for the motor industry, aerospace industry, building products, and packaging sectors in the United Kingdom and Europe

The performance of the Company 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 Company, 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 ATS compete against have been failing. This has created some very good opportunities for ATS given our strong financial position. The Company will continue to consolidate its position and concentrate its efforts on achieving maximum growth in its existing market segments.

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

Financial KPIs

Unit

2023

2022

Return on capital employed

%

1.34

4.32

Debtor days

days

138.00

121.00

Quick (Acid Test) Ratio

3.40

4.17

 

Advanced Tooling Systems UK Limited

Strategic Report for the Year Ended 31 December 2023

Principal risks and uncertainties

The principal risks are with:

Reduction of sales orders from customers. There has been a big drive within the company 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

Cashflow - The company has £664,311 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.

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

.........................................
Mr Adrian Gander
Company secretary and director

 

Advanced Tooling Systems UK Limited

Directors' Report for the Year Ended 31 December 2023

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

Directors of the company

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

Mr Mark Terry

Mr Adrian Gander - Company secretary and director

Mr Keith William Best

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 turnover of both our moulding and tooling business from the end of 2024 onwards. This will need investment in our moulding site in both 2024 and 2025.

Going concern

The company specialises 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 company has a customer base of OEM in the car industry and First Tier suppliers of whom are all international companies. The company 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 / packaging / personal safety equipment of 2023/24 revenue.

Disclosure of information to the auditors

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 auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are 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
Company secretary and director

 

Advanced Tooling Systems UK Limited

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

 

Advanced Tooling Systems UK Limited

Independent Auditor's Report to the Members of Advanced Tooling Systems UK Limited

Opinion

We have audited the financial statements of Advanced Tooling Systems UK Limited (the 'company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, 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 company's affairs as at 31 December 2023 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company'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 UK Limited

Independent Auditor's Report to the Members of Advanced Tooling Systems UK Limited

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, or returns adequate for our audit have not been received from branches not visited by us; or

the 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.

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 UK Limited

Independent Auditor's Report to the Members of Advanced Tooling Systems UK Limited

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 UK Limited

Independent Auditor's Report to the Members of Advanced Tooling Systems UK Limited

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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the company audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

 

Advanced Tooling Systems UK Limited

Independent Auditor's Report to the Members of Advanced Tooling Systems UK Limited

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 UK Limited

Profit and Loss Account for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

3

6,137,819

6,035,251

Cost of sales

 

(5,073,003)

(4,894,866)

Gross profit

 

1,064,816

1,140,385

Administrative expenses

 

(1,093,551)

(990,903)

Other operating income

4

119,912

119,912

Operating profit

5

91,177

269,394

Other interest receivable and similar income

6

-

23

Interest payable and similar expenses

7

(29,101)

(15,620)

   

(29,101)

(15,597)

Profit before tax

 

62,076

253,797

Tax on profit

11

(15,767)

35,682

Profit for the financial year

 

46,309

289,479

The above results were derived from continuing operations.

 

Advanced Tooling Systems UK Limited

Statement of Comprehensive Income for the Year Ended 31 December 2023

2023
£

2022
£

Profit for the year

46,309

289,479

Surplus on property, plant and equipment revaluation

3,175

3,175

Deficit on revaluation of other assets

(3,175)

(3,175)

-

-

Total comprehensive income for the year

46,309

289,479

 

Advanced Tooling Systems UK Limited

(Registration number: 04610282)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

12

246,494

340,117

Tangible assets

13

1,667,805

1,716,099

Investments

14

100

100

 

1,914,399

2,056,316

Current assets

 

Stocks

15

77,125

77,125

Debtors

16

5,034,360

5,086,425

Cash at bank and in hand

 

989,392

310,944

 

6,100,877

5,474,494

Creditors: Amounts falling due within one year

18

(1,772,595)

(1,295,810)

Net current assets

 

4,328,282

4,178,684

Total assets less current liabilities

 

6,242,681

6,235,000

Creditors: Amounts falling due after more than one year

18

(369,344)

(404,856)

Provisions for liabilities

19

(153,769)

(156,885)

Net assets

 

5,719,568

5,673,259

Capital and reserves

 

Called up share capital

4,200,000

4,200,000

Revaluation reserve

121,253

124,428

Retained earnings

1,398,315

1,348,831

Shareholders' funds

 

5,719,568

5,673,259

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

.........................................
Mr Adrian Gander
Company secretary and director

 

Advanced Tooling Systems UK Limited

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

Share capital
£

Revaluation reserve
£

Retained earnings
£

Total
£

At 1 January 2023

4,200,000

124,428

1,348,831

5,673,259

Profit for the year

-

-

46,309

46,309

Other comprehensive income

-

(3,175)

3,175

-

Total comprehensive income

-

(3,175)

49,484

46,309

At 31 December 2023

4,200,000

121,253

1,398,315

5,719,568

Share capital
£

Revaluation reserve
£

Retained earnings
£

Total
£

At 1 January 2022

4,200,000

127,603

1,056,177

5,383,780

Profit for the year

-

-

289,479

289,479

Other comprehensive income

-

(3,175)

3,175

-

Total comprehensive income

-

(3,175)

292,654

289,479

At 31 December 2022

4,200,000

124,428

1,348,831

5,673,259

 

Advanced Tooling Systems UK Limited

Statement of Cash Flows for the Year Ended 31 December 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

46,309

289,479

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

258,371

249,626

Loss on disposal of tangible assets

18,454

-

Finance income

6

-

(23)

Finance costs

7

29,101

15,620

Income tax expense

11

15,767

(35,682)

 

368,002

519,020

Working capital adjustments

 

Increase in stocks

15

-

(23,875)

Decrease in trade debtors

16

44,149

543,645

Increase/(decrease) in trade creditors

18

476,536

(543,393)

Cash generated from operations

 

888,687

495,397

Income taxes received/(paid)

11

7,916

(7,916)

Net cash flow from operating activities

 

896,603

487,481

Cash flows from investing activities

 

Interest received

6

-

23

Acquisitions of tangible assets

(134,908)

(294,875)

Net cash flows from investing activities

 

(134,908)

(294,852)

Cash flows from financing activities

 

Interest paid

7

(29,101)

(15,620)

Proceeds from bank borrowing draw downs

 

(141,504)

(103,925)

Payments to finance lease creditors

 

87,358

(63,685)

Net cash flows from financing activities

 

(83,247)

(183,230)

Net increase in cash and cash equivalents

 

678,448

9,399

Cash and cash equivalents at 1 January

 

310,944

301,545

Cash and cash equivalents at 31 December

 

989,392

310,944

 

Advanced Tooling Systems UK Limited

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 & Wales.

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

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.

Group accounts not prepared

The company has taken advantage of section 405(2) of the Companies Act 2006 not to prepare group accounts since, in the opinion of the directors the inclusion of the subsidiary undertakings is not material in the context of the financial statements. The parent company, Advanced Tooling Systems (Group) Ltd, a company registered in England, has prepared group accounts which include the accounts of Advanced Tooling Systems UK Ltd and its subsidiary.

Going concern

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

 

Advanced Tooling Systems UK Limited

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

Judgements

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.

Key sources of estimation uncertainty

The Company 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 Company 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 the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and physical condition of the assets. See notes 11 and 12 for the carrying amounts of intangible and tangible assets and note 2 for the useful economic lives for each class of assets.

iii) Impairment of debtors
The Company 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..

Revenue recognition

Income represents revenue earned under a wide variety of contracts to provide goods and services. Revenue is recognised as earned when, and to the extent that, the firm obtains the right to consideration in exchange for its performance under these contracts. It is measured at the fair value of the right to consideration, which represents amounts chargeable to customers, including expenses and disbursements but excluding value added tax.

Revenue is generally recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts the amount of revenue reflects the accrual of the right to consideration by reference to the value of work performed. Revenue not billed to customers is included in debtors and payments on account in excess of the relevant amount of revenue are included in other creditors.

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 UK Limited

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

Foreign currency transactions and balances

The company'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 company operates and generates taxable income.

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

On transition to FRS 102, the company has taken advantage of transitional relief to use a previous GAAP revaluation as deemed cost for freehold property. Land and buildings were initially recognised at cost and revalued in 2012. Freehold land and buildings are subsequently carried at the deemed cost as permitted under FRS102 less accumulated depreciation and accumulated impairment losses.

All other items of plant, equipment and motor vehicle are initially recognised at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses.

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

 

Advanced Tooling Systems UK Limited

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

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

Plant and machinery

15% on reducing balance

Furniture and fittings

25% on reducing balance

Motor vehicles

25% on reducing balance

Office equipment

50% on cost

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of businesses in 2003, 2006 and 2007, is being amortised evenly over its estimated useful life of twenty years. The directors believe that the remaining life of 2.5 years at the year end is a reasonable estimate of the period over which the economic benefits are expected to flow to the company.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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

Goodwill

straight line over 20 years

Computer software

straight line over 2 years

Investments

Investments in subsidiary undertakings are recognised 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.

 

Advanced Tooling Systems UK Limited

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

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 company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

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

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 company 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 company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

Advanced Tooling Systems UK Limited

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

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.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company 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.

3

Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

2023
 £

2022
 £

Sale of goods

6,137,819

6,035,251

4

Other operating income

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

2023
 £

2022
 £

Miscellaneous other operating income

119,912

119,912

5

Operating profit

Arrived at after charging/(crediting)

 

Advanced Tooling Systems UK Limited

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

2023
 £

2022
 £

Depreciation expense

164,748

156,003

Amortisation expense

93,623

93,623

Operating lease expense - plant and machinery

17,694

8,674

Operating lease expense - other

799

428

Loss on disposal of property, plant and equipment

18,454

-

6

Other interest receivable and similar income

2023
 £

2022
 £

Other finance income

-

23

7

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

14,854

5,931

29,101

15,620

8

Staff costs

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

2023
 £

2022
 £

Wages and salaries

1,272,271

1,124,627

Social security costs

142,685

129,670

Pension costs, defined contribution scheme

47,571

43,118

1,462,527

1,297,415

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

2023
No.

2022
No.

Production

25

25

Other departments

3

3

28

28

 

Advanced Tooling Systems UK Limited

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

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
 £

2022
 £

Contributions paid to money purchase schemes

20,365

17,191

10

Auditors' remuneration

2023
 £

2022
 £

Audit of the financial statements

5,400

4,500


 

11

Taxation

Tax charged/(credited) in the income statement

2023
 £

2022
 £

Current taxation

UK corporation tax

18,882

-

UK corporation tax adjustment to prior periods

-

(106,743)

18,882

(106,743)

Deferred taxation

Arising from origination and reversal of timing differences

(3,115)

71,061

Tax expense/(receipt) in the income statement

15,767

(35,682)

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 23.52% (2022 - 19%).

The differences are reconciled below:

 

Advanced Tooling Systems UK Limited

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

2023
£

2022
£

Profit before tax

62,076

253,797

Corporation tax at standard rate

14,600

48,221

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

4,540

289

Effect of tax losses

(27,906)

-

Deferred tax (credit)/expense from unrecognised temporary difference from a prior period

(3,116)

71,061

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

-

(106,743)

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

27,649

(23,610)

Tax decrease arising from group relief

-

(24,900)

Total tax charge/(credit)

15,767

(35,682)

Deferred tax

12

Intangible assets

Goodwill
 £

Other intangible assets
 £

Total
£

Cost or valuation

At 1 January 2023

1,882,600

74,794

1,957,394

At 31 December 2023

1,882,600

74,794

1,957,394

Amortisation

At 1 January 2023

1,542,483

74,794

1,617,277

Amortisation charge

93,623

-

93,623

At 31 December 2023

1,636,106

74,794

1,710,900

Carrying amount

At 31 December 2023

246,494

-

246,494

At 31 December 2022

340,117

-

340,117

 

Advanced Tooling Systems UK Limited

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

13

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Other tangible assets
£

Total
£

Cost or valuation

At 1 January 2023

1,532,328

383,825

26,549

2,718,414

4,661,116

Additions

-

105,416

-

27,044

132,460

Disposals

-

(200,223)

(750)

(238,447)

(439,420)

Foreign exchange movements

-

-

-

2,882

2,882

At 31 December 2023

1,532,328

289,018

25,799

2,509,893

4,357,038

Depreciation

At 1 January 2023

472,558

371,579

14,744

2,086,136

2,945,017

Charge for the year

30,647

34,630

2,873

96,600

164,750

Eliminated on disposal

-

(199,861)

(434)

(220,671)

(420,966)

Foreign exchange movements

-

-

-

432

432

At 31 December 2023

503,205

206,348

17,183

1,962,497

2,689,233

Carrying amount

At 31 December 2023

1,029,123

82,670

8,616

547,396

1,667,805

At 31 December 2022

1,059,770

12,246

11,805

632,278

1,716,099

Included within the net book value of land and buildings above is £ 248,923(2022 - £256,421) in respect of freehold land and buildings, and £780,201 (2022 - £803,348) in respect of leasehold land and buildings. The leasehold property is on 100 years lease from Feb 1979 to Feb 2078.
 

 

Advanced Tooling Systems UK Limited

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

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

 

2023
£

2022
£

Plant and machinery

229,992

179,131

     
 

Advanced Tooling Systems UK Limited

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

14

Investments

2023
 £

2022
 £

Investments in subsidiaries

100

100

Subsidiaries

£

Cost or valuation

At 1 January 2023

100

Provision

Carrying amount

At 31 December 2023

100

At 31 December 2022

100

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

Millaber Holdings Limited

Coldred Road
Maidstone
Parkwood
Kent
ME15 9XX

United Kingdom

Ordinary

100%

100%

Subsidiary undertakings

Millaber Holdings Limited

The principal activity of Millaber Holdings Limited is a dormant company.

15

Stocks

2023
 £

2022
 £

Other inventories

77,125

77,125

 

Advanced Tooling Systems UK Limited

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

16

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

2,323,170

2,005,316

Amounts owed by related parties

24

1,401,201

1,408,427

Other debtors

 

4,400

23,829

Prepayments

 

25,049

21,711

Gross amount due from customers for contract work

 

1,280,540

1,619,226

Income tax asset

11

-

7,916

   

5,034,360

5,086,425

17

Cash and cash equivalents

2023
 £

2022
 £

Cash on hand

97

38

Cash at bank

989,295

310,906

989,392

310,944

 

Advanced Tooling Systems UK Limited

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

18

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

22

188,844

207,478

Trade creditors

 

493,651

432,977

Amounts due to related parties

24

65,507

65,507

Social security and other taxes

 

246,881

37,225

Other payables

 

741,103

531,295

Accrued expenses

 

17,727

21,328

Income tax liability

11

18,882

-

 

1,772,595

1,295,810

Due after one year

 

Loans and borrowings

22

369,344

404,856

19

Provisions for liabilities

Deferred tax
£

Total
£

At 1 January 2023

156,885

156,885

Increase (decrease) in existing provisions

(3,116)

(3,116)

At 31 December 2023

153,769

153,769

20

Pension and other schemes

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £47,571 (2022 - £43,118).
Contributions totalling £5,771 (2022: £5,900) were payable to the pension scheme at the year end.

 

Advanced Tooling Systems UK Limited

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

21

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary A Class of £1 each

2,520,000

2,520,000

2,520,000

2,520,000

Ordinary B Class of £1 each

1,680,000

1,680,000

1,680,000

1,680,000

 

4,200,000

4,200,000

4,200,000

4,200,000

22

Loans and borrowings

2023
 £

2022
 £

Non-current loans and borrowings

Bank borrowings

250,000

350,000

HP and finance lease liabilities

119,344

54,856

369,344

404,856

2023
 £

2022
 £

Current loans and borrowings

Bank borrowings

100,000

141,504

HP and finance lease liabilities

88,844

65,974

188,844

207,478

Bank borrowings

Bank loans is denominated in sterling with a nominal interest rate of 1.75% over base rate, and the final instalment is due on 22 March 2023. The carrying amount at year end is £Nil (2022 - £41,504).

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 the company.

The Bank Loan from Natwest bank is secured against the Land & Buildings at Coldred Road, Maidstone, Kent and its associated assets. The charge was created on 19th October 2007.

CBILS Bank Loan 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).

The CBILS Loan is secured against the existing debenture held as detailed above.

 

Advanced Tooling Systems UK Limited

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

23

Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

88,844

65,974

Later than one year and not later than five years

119,344

54,856

208,188

120,830

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

-

6,961

The amount of non-cancellable operating lease payments recognised as an expense during the year was £18,494 (2022 - £9,102).

24

Related party transactions

Summary of transactions with entities with joint control or significant interest

Income and receivables from related parties

2023

Parent
£

Sale of goods

137,760

Amounts receivable from related party

1,392,032

2022

Parent
£

Sale of goods

120,537

Amounts receivable from related party

1,408,427

Expenditure with and payables to related parties

2023

Parent
£

Rendering of services

1,550,237

Amounts payable to related party

65,507

 

Advanced Tooling Systems UK Limited

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

2022

Parent
£

Rendering of services

1,344,930

Amounts payable to related party

65,507

 

Advanced Tooling Systems UK Limited

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

25

Financial instruments

Financial Instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Statement of Comprehensive Income. For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

 

Advanced Tooling Systems UK Limited

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

Financial liabilities

Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form.

Financial liabilities within the scope of IAS 39 are initially classified as financial liabilities at fair value through profit or loss, loans and borrowings, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

The Company determines the classification of its financial liabilities at initial recognition. All financial liabilities are recognised initially at fair value and in the case of loans and borrowings, plus directly attributable transaction costs.

Subsequently, the measurement of financial liabilities depends on their classification as follows:

Interest bearing loans and borrowings

Obligations for loans and borrowings are recognised when the Company becomes party to the related contracts and are measured initially at the fair value of consideration received less directly attributable transaction costs.

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method.

Gains and losses arising on the repurchase, settlement or otherwise cancellation of liabilities are recognised respectively in finance revenue and finance cost.

Derecognition of financial liabilities

A liability is derecognised when the contract that gives rise to it is settled, sold, cancelled or expires. Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such as an exchange or modification, this is treated as a derecognition of the original liability, such that the difference in the respective carrying amounts together with any costs or fees incurred are recognised in profit or loss.

26

Parent and ultimate parent undertaking

Advanced Tooling Systems (Group) Limited is controlled by its Directors K Best and A Gander

 The company's immediate parent is Advanced Tooling Systems (Holdings) Limited, incorporated in UK.

 The ultimate parent is Advanced Tooling Systems (Group) Ltd, incorporated in UK.