Company registration number 05267572 (England and Wales)
ABSOLUTE ENGINEERING LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
ABSOLUTE ENGINEERING LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 11
ABSOLUTE ENGINEERING LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
4
58,590
35,988
Tangible assets
5
700,244
624,019
758,834
660,007
Current assets
Stocks
930,596
890,208
Debtors
6
1,812,766
1,667,572
Cash at bank and in hand
171,737
185,893
2,915,099
2,743,673
Creditors: amounts falling due within one year
7
(1,049,549)
(1,266,336)
Net current assets
1,865,550
1,477,337
Total assets less current liabilities
2,624,384
2,137,344
Provisions for liabilities
8
(149,376)
(124,053)
Net assets
2,475,008
2,013,291
Capital and reserves
Called up share capital
1,000
1,000
Share premium account
133,520
133,520
Profit and loss reserves
2,340,488
1,878,771
Total equity
2,475,008
2,013,291
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with the provision of FRS 102 Section 1A small enitities.
The financial statements were approved by the board of directors and authorised for issue on 17 September 2024 and are signed on its behalf by:
Mr D S Johnson
Director
Company Registration No. 05267572
ABSOLUTE ENGINEERING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
1,000
133,520
1,312,391
1,446,911
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
566,380
566,380
Balance at 31 December 2022
1,000
133,520
1,878,771
2,013,291
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
544,546
544,546
Dividends
-
-
(82,829)
(82,829)
Balance at 31 December 2023
1,000
133,520
2,340,488
2,475,008
ABSOLUTE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information
Absolute Engineering Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 5, Standback Way, Skelmanthorpe, Huddersfield, HD8 9GA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
The risk and rewards of ownership are considered to have passed at different stages depending on the specific terms of each sale. The main terms of sale are as follows:
CIF (Cost, insurance and freight) relates to goods shipped by sea whereby the seller pays for cost of insurance and transport of goods to the destination. Legal delivery therefore occurs once goods are delivered at the required destination and as such income is not recognised until this point.
CIP (Carriage and insurance paid) relates to goods shipped by air whereby the seller is responsible for delivery of goods to a mutually agreed destination between the buyer and seller. Legal delivery therefore occurs once goods are delivered to that destination and at which point income is recognised.
DAP (Delivery at place) relates to goods delivered within Europe whereby the seller must make the goods available to the buyer at the buyers chosen location. Legal delivery occurs once goods are made available at the specified location and at this point income is recognised.
EXW (Ex works) relates to the sale of goods whereby the seller is only responsible for packaging and making goods available for collection from the seller's location. Under this term of sale income is therefore recognised as soon as goods are ready for collection.
FOB (Freight on board) relates to goods shipped by sea whereby the seller is responsible for delivering the goods on board the ship. As soon as the goods are placed on the ship then risk is transferred to the buyer and income is recognised at this point.
ABSOLUTE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Patents
5 years
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Short leasehold improvements
Over the life of the lease
Plant and machinery
3 to 15 years
Fixtures, fittings & equipment
5 to 10 years
Motor vehicles
5 to 10 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.8
Stocks
Stocks which comprise direct materials, work in progress and finished goods are stated at the lower of cost and net realisable value.
Direct material stock is valued at cost on a FIFO basis. Work in progress and finished good stock includes direct material costs plus, where appropriate, an allocation of labour and machine costs that have been incurred in bringing the stocks to their present location and condition.
ABSOLUTE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
ABSOLUTE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.15
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
ABSOLUTE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
34
33
3
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(84,413)
(172,721)
Deferred tax
Origination and reversal of timing differences
25,323
42,302
Adjustment in respect of prior periods
171
(1,529)
Total deferred tax
25,494
40,773
Total tax credit
(58,919)
(131,948)
4
Intangible fixed assets
Patents
Assets under construction
Total
£
£
£
Cost
At 1 January 2023
55,340
55,340
Additions
33,021
10,000
43,021
At 31 December 2023
88,361
10,000
98,361
Amortisation and impairment
At 1 January 2023
19,352
19,352
Amortisation charged for the year
20,419
20,419
At 31 December 2023
39,771
39,771
Carrying amount
At 31 December 2023
48,590
10,000
58,590
At 31 December 2022
35,988
35,988
ABSOLUTE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
5
Tangible fixed assets
Short leasehold improvements
Assets under construction
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
199,322
1,375,130
27,296
51,681
1,653,429
Additions
25,167
40,547
210,689
3,547
279,950
At 31 December 2023
224,489
40,547
1,585,819
27,296
55,228
1,933,379
Depreciation and impairment
At 1 January 2023
168,758
813,104
23,114
24,434
1,029,410
Depreciation charged in the year
12,319
173,589
1,647
16,171
203,726
At 31 December 2023
181,077
986,692
24,761
40,605
1,233,135
Carrying amount
At 31 December 2023
43,412
40,547
599,127
2,535
14,623
700,244
At 31 December 2022
30,564
562,026
4,182
27,247
624,019
ABSOLUTE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,340,058
1,092,174
Corporation tax recoverable
84,413
172,721
Amounts owed by group undertakings
8,523
Other debtors
379,772
402,677
1,812,766
1,667,572
7
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
579,781
448,990
Amounts owed to group undertakings
45,826
38,274
Taxation and social security
43,467
44,636
Other creditors
380,475
734,436
1,049,549
1,266,336
8
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
9
149,376
124,053
The deferred tax liabilities relate to accelerated capital allowances at 31 December 2023.
9
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
149,376
124,053
ABSOLUTE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Deferred taxation
(Continued)
- 10 -
2023
Movements in the year:
£
Liability at 1 January 2023
124,053
Charge to profit or loss
25,323
Liability at 31 December 2023
149,376
The deferred tax liability set out above is expected to reverse in line with the depreciation policy of the relevant assets and relates to accelerated capital allowances that are expected to mature within the same period.
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Mr Richard Johnson BSc FCA.
The auditor was Mitchell Charlesworth (Audit) Limited
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
Within one year
197,295
161,236
Between two and five years
637,541
408,427
In over five years
90,956
834,836
660,619
12
Related party transactions
During the year the company paid rent of £110,851 (2022: £100,567) to Antony Whiteside, a director of the company.
A limited guarantee of £50,000 has been provided by Antony Whiteside to Barclays Bank Plc.
The company has taken advantage of exemptions to which it is entitled regarding transactions with its parent and other 100% owned subsidiaries of the group.
ABSOLUTE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
13
Parent company
The ultimate parent company is Kotts Capital Holdings LLP who are also considered to be the controlling party.
The company's immediate parent company is Pamarco Europe Limited, a company incorporated in the United Kingdom.
The results of this company are included in the group accounts of Pamarco Technologies LLC, a company incorporated in the United States of America which holds 100% indirect interest in the share capital of Absolute Engineering Limited. The consolidated accounts of Pamarco Technologies LLC represent the smallest group for which group accounts are prepared and copies of these financial statements may be obtained from 235 East 11th Avenue, Roselle, New Jersey, USA.
The parent company of the largest such group is Kotts Capital Holdings LLP, whose consolidated financial statements are available from 3737 Willowick Road, Houston, TX 77019, USA.
2023-12-312023-01-01false19 September 2024CCH SoftwareCCH Accounts Production 2024.100No description of principal activityThis audit opinion is unqualifiedMr J C BurgessMr D S JohnsonMr A WhiesideMr A ChadwickC Altoftfalsefalse052675722023-01-012023-12-31052675722023-12-31052675722022-12-3105267572core:PatentsTrademarksLicencesConcessionsSimilar2023-12-3105267572core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-12-3105267572core:PatentsTrademarksLicencesConcessionsSimilar2022-12-3105267572core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-12-3105267572core:LandBuildingscore:OwnedOrFreeholdAssets2023-12-3105267572core:ConstructionInProgressAssetsUnderConstruction2023-12-3105267572core:PlantMachinery2023-12-3105267572core:FurnitureFittings2023-12-3105267572core:MotorVehicles2023-12-3105267572core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3105267572core:ConstructionInProgressAssetsUnderConstruction2022-12-3105267572core:PlantMachinery2022-12-3105267572core:FurnitureFittings2022-12-3105267572core:MotorVehicles2022-12-3105267572core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3105267572core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3105267572core:CurrentFinancialInstruments2023-12-3105267572core:CurrentFinancialInstruments2022-12-3105267572core:ShareCapital2023-12-3105267572core:ShareCapital2022-12-3105267572core:SharePremium2023-12-3105267572core:SharePremium2022-12-3105267572core:RetainedEarningsAccumulatedLosses2023-12-3105267572core:RetainedEarningsAccumulatedLosses2022-12-3105267572core:ShareCapital2021-12-3105267572core:SharePremium2021-12-3105267572core:RetainedEarningsAccumulatedLosses2021-12-3105267572bus:Director22023-01-012023-12-3105267572core:RetainedEarningsAccumulatedLosses2022-01-012022-12-31052675722022-01-012022-12-3105267572core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3105267572core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3105267572core:LandBuildingscore:OwnedOrFreeholdAssets2023-01-012023-12-3105267572core:PlantMachinery2023-01-012023-12-3105267572core:FurnitureFittings2023-01-012023-12-3105267572core:MotorVehicles2023-01-012023-12-3105267572core:UKTax2023-01-012023-12-3105267572core:UKTax2022-01-012022-12-310526757212023-01-012023-12-310526757212022-01-012022-12-3105267572core:PatentsTrademarksLicencesConcessionsSimilar2022-12-3105267572core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-12-31052675722022-12-3105267572core:PatentsTrademarksLicencesConcessionsSimilarcore:InternallyGeneratedIntangibleAssets2023-01-012023-12-3105267572core:DevelopmentCostsCapitalisedDevelopmentExpenditurecore:InternallyGeneratedIntangibleAssets2023-01-012023-12-3105267572core:InternallyGeneratedIntangibleAssets2023-01-012023-12-3105267572core:PatentsTrademarksLicencesConcessionsSimilar2023-01-012023-12-3105267572core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-01-012023-12-3105267572core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3105267572core:ConstructionInProgressAssetsUnderConstruction2022-12-3105267572core:PlantMachinery2022-12-3105267572core:FurnitureFittings2022-12-3105267572core:MotorVehicles2022-12-3105267572core:ConstructionInProgressAssetsUnderConstruction2023-01-012023-12-3105267572core:WithinOneYear2023-12-3105267572core:WithinOneYear2022-12-3105267572core:BetweenTwoFiveYears2023-12-3105267572core:BetweenTwoFiveYears2022-12-3105267572core:MoreThanFiveYears2023-12-3105267572core:MoreThanFiveYears2022-12-3105267572bus:PrivateLimitedCompanyLtd2023-01-012023-12-3105267572bus:SmallCompaniesRegimeForAccounts2023-01-012023-12-3105267572bus:FRS1022023-01-012023-12-3105267572bus:Audited2023-01-012023-12-3105267572bus:Director12023-01-012023-12-3105267572bus:Director32023-01-012023-12-3105267572bus:Director42023-01-012023-12-3105267572bus:Director52023-01-012023-12-3105267572bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP