REGISTERED NUMBER: 03158284 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
ATL INDUSTRIES LIMITED |
REGISTERED NUMBER: 03158284 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
ATL INDUSTRIES LIMITED |
ATL INDUSTRIES LIMITED (REGISTERED NUMBER: 03158284) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Consolidated Statement of Comprehensive Income | 6 |
Consolidated Balance Sheet | 7 |
Company Balance Sheet | 8 |
Consolidated Statement of Changes in Equity | 9 |
Company Statement of Changes in Equity | 10 |
Consolidated Cash Flow Statement | 11 |
Notes to the Consolidated Cash Flow Statement | 12 |
Notes to the Consolidated Financial Statements | 13 |
ATL INDUSTRIES LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and |
Statutory Auditors |
17 George Street |
St Helens |
Merseyside |
WA10 1DB |
ATL INDUSTRIES LIMITED (REGISTERED NUMBER: 03158284) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
During the year, the group's main activities continued to be the production of thermoplastic compounds, powders and resins for the plastics industry, together with pigment dispersions and concentrates for the paint and ink industries. |
The group also owns a number of investment properties which are let under assured shorthold tenancies. |
REVIEW OF BUSINESS |
The directors consider both turnover and gross profit percentage to be key indicators of the group's performance. |
Turnover in the year has reduced to £9,144,518 in the current year from £11,191,286 in the previous year. The directors believe that this is due to the current worldwide economic climate as all geographical markets appear to be reflecting a downturn. |
The directors are, however, pleased to report that despite the current inflationary pressures faced by the company, gross profit margin has increased slightly from 20.1% in the previous year to 21.6% in the current year. |
Unfortunately, due to the reduction in turnover, the company's gross profit in monetary terms has reduced by £281,195 in the current year. |
The impact of the reduction in gross profit has, in part, been offset by the directors placing surplus funds on longer term deposit in order to take advantage of rising interest rates and the directors are pleased to have achieved a return of £157,554 on these funds. |
Net profit for the year amounts to £392,197 compared with £875,195 in the previous year. |
The Group's investment in Abbey Vietnam Ltd continues to prove successful and the directors are pleased to report that following a strong 2023 year, indications are that a dividend based on those results will be proposed, to be paid in 2024. |
The directors are satisfied with the results given the current economic climate. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors consider the group's principal business risks and uncertainties to be the increasing competition from emerging markets and the volatility of currency exchange rates. |
As the Asian economies continue to expand further into world markets, there will undoubtedly become increased competition across all industries. However, the directors are confident that the products manufactured by the group will be of sufficiently higher quality than those produced by any new entrants to the marketplace to negate any potential loss of market share. |
The directors believe that the current political climate in certain parts of the world could have a further detrimental effect on the exchange rates between Sterling and other currencies. At present the directors do not consider this to be a major risk, however, should circumstances change the directors would consider strategies to mitigate these risks. |
ON BEHALF OF THE BOARD: |
16 September 2024 |
ATL INDUSTRIES LIMITED (REGISTERED NUMBER: 03158284) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 December 2023 will be £4,000. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
QUALIFYING THIRD PARTY INDEMNITY PROVISIONS |
A qualifying third party indemnity provision as defined in section 234 of the Companies Act 2006, applicable to all of the group's directors was in place during the financial year and continues to be in force as at the date these financial statements were approved. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ATL INDUSTRIES LIMITED |
Opinion |
We have audited the financial statements of ATL Industries Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ATL INDUSTRIES LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- Discussions with management and those involved in the financial reporting process including consideration of known or suspected instances of non-compliance with laws and regulations central to the company's ability to operate, and fraud; |
- Review of the communication with ISO internal auditors to identify any instances of non-compliance with laws and regulations central to the company's ability to operate; |
- Evaluation and testing of the operating effectiveness of management's controls designed to prevent and detect irregularities; and |
- Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or of significant monetary amounts. |
There are inherent limitations in the audit procedures described above. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants and |
Statutory Auditors |
17 George Street |
St Helens |
Merseyside |
WA10 1DB |
ATL INDUSTRIES LIMITED (REGISTERED NUMBER: 03158284) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 9,144,518 | 11,191,286 |
Cost of sales | (7,168,781 | ) | (8,934,354 | ) |
GROSS PROFIT | 1,975,737 | 2,256,932 |
Distribution costs | (142,438 | ) | (155,103 | ) |
Administrative expenses | (1,626,580 | ) | (1,380,760 | ) |
206,719 | 721,069 |
Other operating income | 27,924 | 27,121 |
OPERATING PROFIT | 5 | 234,643 | 748,190 |
Exceptional item | 6 | - | 127,001 |
234,643 | 875,191 |
Interest receivable and similar income | 157,554 | 4 |
PROFIT BEFORE TAXATION | 392,197 | 875,195 |
Tax on profit | 7 | (77,866 | ) | (63,764 | ) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
314,331 |
811,431 |
Profit attributable to: |
Owners of the parent | 314,331 | 811,431 |
Total comprehensive income attributable to: |
Owners of the parent | 314,331 | 811,431 |
ATL INDUSTRIES LIMITED (REGISTERED NUMBER: 03158284) |
CONSOLIDATED BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 1,636,807 | 1,758,271 |
Investments | 11 |
Interest in joint venture | 925,201 | 925,201 |
Investment property | 12 | 1,504,165 | 1,397,009 |
4,066,173 | 4,080,481 |
CURRENT ASSETS |
Stocks | 13 | 2,153,159 | 2,276,576 |
Debtors | 14 | 1,246,028 | 1,297,398 |
Cash at bank and in hand | 6,489,056 | 5,581,007 |
9,888,243 | 9,154,981 |
CREDITORS |
Amounts falling due within one year | 15 | (1,339,313 | ) | (919,459 | ) |
NET CURRENT ASSETS | 8,548,930 | 8,235,522 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
12,615,103 |
12,316,003 |
PROVISIONS FOR LIABILITIES | 17 | (365,622 | ) | (376,853 | ) |
NET ASSETS | 12,249,481 | 11,939,150 |
CAPITAL AND RESERVES |
Called up share capital | 18 | 300,000 | 300,000 |
Freehold property revaluation reserve | 19 | 594,778 | 610,689 |
Investment property revaluation reserve | 19 | 146,909 | 95,251 |
Retained earnings | 19 | 11,207,794 | 10,933,210 |
SHAREHOLDERS' FUNDS | 12,249,481 | 11,939,150 |
The financial statements were approved by the Board of Directors and authorised for issue on 16 September 2024 and were signed on its behalf by: |
Mr J M Shirt - Director |
ATL INDUSTRIES LIMITED (REGISTERED NUMBER: 03158284) |
COMPANY BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 197,298 | 27,162 |
The financial statements were approved by the Board of Directors and authorised for issue on |
ATL INDUSTRIES LIMITED (REGISTERED NUMBER: 03158284) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Freehold | Investment |
Called up | property | property |
share | Retained | revaluation | revaluation | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2022 | 300,000 | 10,193,758 | 641,961 | - | 11,135,719 |
Changes in equity |
Dividends | - | (8,000 | ) | - | - | (8,000 | ) |
Total comprehensive income | - | 747,452 | (31,272 | ) | 95,251 | 811,431 |
Balance at 31 December 2022 | 300,000 | 10,933,210 | 610,689 | 95,251 | 11,939,150 |
Changes in equity |
Dividends | - | (4,000 | ) | - | - | (4,000 | ) |
Total comprehensive income | - | 278,584 | (15,911 | ) | 51,658 | 314,331 |
Balance at 31 December 2023 | 300,000 | 11,207,794 | 594,778 | 146,909 | 12,249,481 |
ATL INDUSTRIES LIMITED (REGISTERED NUMBER: 03158284) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
ATL INDUSTRIES LIMITED (REGISTERED NUMBER: 03158284) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 843,082 | 779,341 |
Net cash from operating activities | 843,082 | 779,341 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (54,136 | ) | (115,083 | ) |
Purchase of investment property | (38,278 | ) | - |
Interest received | 157,554 | 4 |
Net cash from investing activities | 65,140 | (115,079 | ) |
Cash flows from financing activities |
Amount introduced by directors | 4,000 | 8,000 |
Amount withdrawn by directors | (1 | ) | (42,930 | ) |
Equity dividends paid | (4,000 | ) | (8,000 | ) |
Net cash from financing activities | (1 | ) | (42,930 | ) |
Increase in cash and cash equivalents | 908,221 | 621,332 |
Cash and cash equivalents at beginning of year | 2 | 5,581,007 | 4,959,289 |
Effect of foreign exchange rate changes | (172 | ) | 386 |
Cash and cash equivalents at end of year | 2 | 6,489,056 | 5,581,007 |
ATL INDUSTRIES LIMITED (REGISTERED NUMBER: 03158284) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 392,197 | 875,195 |
Depreciation charges | 175,600 | 188,205 |
Foreign currency exchange rate variances | 172 | (386 | ) |
Gain on investment property revaluation | (68,878 | ) | (127,001 | ) |
Movement on repairs provision | - | (4,000 | ) |
Finance income | (157,554 | ) | (4 | ) |
341,537 | 932,009 |
Decrease in stocks | 123,417 | 16,375 |
Decrease/(increase) in trade and other debtors | 51,370 | (9,340 | ) |
Increase/(decrease) in trade and other creditors | 326,758 | (159,703 | ) |
Cash generated from operations | 843,082 | 779,341 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31/12/23 | 1/1/23 |
£ | £ |
Cash and cash equivalents | 6,489,056 | 5,581,007 |
Year ended 31 December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 5,581,007 | 4,959,289 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/1/23 | Cash flow | At 31/12/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 5,581,007 | 908,049 | 6,489,056 |
5,581,007 | 908,049 | 6,489,056 |
Total | 5,581,007 | 908,049 | 6,489,056 |
ATL INDUSTRIES LIMITED (REGISTERED NUMBER: 03158284) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
ATL Industries Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The nature of the group's operations and principal activities are as detailed in the Strategic report on page 2. |
The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention except for the modification to fair value of certain fixed assets. The financial statements are presented in sterling which is the functional currency of the company. |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years unless otherwise stated. |
Critical accounting judgements and key sources of estimation uncertainty |
In the application of the company's accounting policies as set out below, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below. |
Valuation of freehold property |
As described in note 10 to the financial statements, freehold property is stated at deemed cost on transition to FRS102 based on a valuation performed by an independent professional valuer with experience in the location and category of property valued. The valuer used an open market basis for the valuation. |
Valuation of investment property |
As described more fully in note 12, investment properties are valued at the end of each reporting period by the directors at open market value. |
Useful economic lives of tangible fixed assets |
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives of the assets. These are amended when necessary to reflect current estimates based on technological advancement, future investment, economic utilisation and the physical condition of the assets. See note 10 for the carrying amount of the tangible fixed assets and the accounting policies for the depreciation rates for each class of assets. |
Provisions for future repairs |
The group makes provision for the significant overhaul of plant and machinery as a result of past usage together with provision for major works in respect of it's freehold property. |
ATL INDUSTRIES LIMITED (REGISTERED NUMBER: 03158284) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Basis of consolidation |
The consolidated financial statements comprise the accounts of ATL Industries Limited and its subsidiary undertakings, made up to 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 acquisition of subsidiaries is accounted for using the purchase method. |
All intra-group transactions, balances, income and expenses are eliminated on consolidation. |
Details of the company's subsidiaries are shown in note 11. |
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under contractual arrangement are treated as joint ventures. |
In the group financial statements, the investment in Abbey Vietnam Ltd PTY is recognised at cost less any impairment as the directors consider that there are restrictions over the rights to the assets of this company, and to include this company within the consolidated financial statements under the equity method would not be appropriate. Amounts invested in this company have been separately identified within note 11 to these financial statements. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions between wholly owned companies within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. |
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the group and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods. |
Tangible fixed assets |
Tangible fixed assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Depreciation is provided on all tangible fixed assets (except freehold land) at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows: |
Freehold property | - | 2% straight line |
Plant and machinery | - | 15% straight line |
Office equipment | - | 15% straight line |
Assets are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit and loss unless the asset is carried at a revalued amount, where the impairment loss is a revaluation decrease. |
Investment property |
Investment properties are initially recognised at cost. Cost includes the purchase price and any legal and professional fees in connection with the acquisition of the property. |
At each reporting date, the properties are valued at fair value through profit and loss. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all direct production costs, costs of conversion and other costs incurred in bringing stock to it's present location and condition. Cost is calculated using the first-in-first-out formula. Provision is made for damaged, obsolete and slow moving stock where appropriate. |
ATL INDUSTRIES LIMITED (REGISTERED NUMBER: 03158284) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. |
Related parties |
For the purposes of these financial statements, a party is considered to be related to the group if: |
1. the party has the ability, directly or indirectly, through one or more intermediaries, to control the group or exercise significant influence over the group in making financial and operating decisions, or has joint control over the group; |
2. the group and the party are subject to common control; |
3. the party is an associate of the group or a joint venture in which the group is a venturer; |
4. the party is a member of key management personnel of the group or close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals; |
5. the party is a close family member of a party referred to in (1) or is an entity under the control, joint control or significant influence of such individuals; or |
6. the party is a post-employment benefit plan which is for the benefit of employees of the group or of any entity that is a related party of the group. |
Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity. |
Foreign currencies |
Transactions in currencies, other than the functional currency of the group, are recorded at the rate of exchange on the date the transaction occurred. Monetary items denominated in other currencies are translated at the rate prevailing at the end of the reporting period. All differences are taken to the profit and loss account. |
Research and development |
Research and development expenditure is written off as incurred. |
Employee benefits |
When employees have rendered services to the group, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid for that service. |
The group operates a defined contribution plan for the benefit of its directors and employees. Contributions are expensed as they become payable. |
ATL INDUSTRIES LIMITED (REGISTERED NUMBER: 03158284) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Leased assets |
Assets that are held by the group under leases which transfer to the group substantially all the risks and rewards of ownership are classified as being held under finance leases. Leases which do not transfer substantially all the risks and rewards of ownership to the group are classified as operating leases. |
Assets held under finance leases are initially recognised as assets of the group at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit or loss. Contingent rentals are recognised as expenses in the periods in which they are incurred. |
Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred. |
In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. |
Grants |
Government grants are recognised when it is reasonable to expect that the grants will be received and that all related conditions will be met, usually on submission of a valid claim for payment. Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate. |
Debtors and creditors receivable/payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in administrative expenses. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less. |
3. | TURNOVER |
The turnover was derived from the group's principal activities. |
During the year, the group exported 51% of it's turnover (2022 - 55%). |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 1,831,027 | 1,481,836 |
Social security costs | 215,076 | 178,228 |
Other pension costs | 70,327 | 71,673 |
2,116,430 | 1,731,737 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Management and administration | 11 | 12 |
Production | 28 | 27 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 975,368 | 648,887 |
Directors' pension contributions to money purchase schemes | 20,000 | 20,000 |
ATL INDUSTRIES LIMITED (REGISTERED NUMBER: 03158284) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 332,365 | 222,908 |
Pension contributions to money purchase schemes | 10,000 | 10,000 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 175,600 | 188,205 |
Auditors' remuneration | 9,350 | 8,500 |
Operating lease payments | 76,937 | 79,176 |
Foreign currency exchange rate variances | 172 | (386 | ) |
6. | EXCEPTIONAL ITEM |
The exceptional item in the previous year relates to the revaluation of the group's investment property. |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 89,097 | - |
Deferred tax: |
In respect of accelerated capital allowances | (21,574 | ) | 11,330 |
In respect of revalued freehold property | (6,877 | ) | 20,684 |
In respect of revalued investment property | 17,220 | 31,750 |
Total deferred tax | (11,231 | ) | 63,764 |
Tax on profit | 77,866 | 63,764 |
ATL INDUSTRIES LIMITED (REGISTERED NUMBER: 03158284) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 392,197 | 875,195 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
98,049 |
166,287 |
Effects of: |
Expenses not deductible for tax purposes | 5,662 | 2,942 |
Depreciation in excess of capital allowances | 24,030 | 5,621 |
Utilisation of tax losses | (14,759 | ) | (2,412 | ) |
Research and development expenditure | - | (148,308 | ) |
Revaluation of investment property | (17,220 | ) | (24,130 | ) |
Changes in tax rates | (5,340 | ) | - |
Marginal rate relief | (1,325 | ) | - |
Movement on deferred tax provision | (11,231 | ) | 63,764 |
Total tax charge | 77,866 | 63,764 |
8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Dividends paid | 4,000 | 8,000 |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 | 1,517,696 | 4,152,777 | 165,219 | 5,835,692 |
Additions | - | 51,081 | 3,055 | 54,136 |
At 31 December 2023 | 1,517,696 | 4,203,858 | 168,274 | 5,889,828 |
DEPRECIATION |
At 1 January 2023 | 227,819 | 3,700,617 | 148,985 | 4,077,421 |
Charge for year | 27,507 | 140,112 | 7,981 | 175,600 |
At 31 December 2023 | 255,326 | 3,840,729 | 156,966 | 4,253,021 |
NET BOOK VALUE |
At 31 December 2023 | 1,262,370 | 363,129 | 11,308 | 1,636,807 |
At 31 December 2022 | 1,289,877 | 452,160 | 16,234 | 1,758,271 |
ATL INDUSTRIES LIMITED (REGISTERED NUMBER: 03158284) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
The freehold property is included at deemed cost to reflect its valuation on transition to FRS102. |
The historical cost of the freehold property included at valuation amounted to £567,061 (2022 - £567,061) and the accumulated depreciation thereon amounts to £88,446 (2022 - £77,627). |
The historical cost of the freehold property includes land with a value of £26,145 (2022 - £26,145) on which no depreciation charge is made. |
11. | FIXED ASSET INVESTMENTS |
Group |
Interest |
in joint |
venture |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 | 925,201 |
NET BOOK VALUE |
At 31 December 2023 | 925,201 |
At 31 December 2022 | 925,201 |
Company |
Shares in | Interest |
group | in joint |
undertakings | venture | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
and 31 December 2023 | 1,745,741 |
NET BOOK VALUE |
At 31 December 2023 | 1,745,741 |
At 31 December 2022 | 1,745,741 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Whitelands Mill, Whitelands Road, Ashton Under Lyne, Greater Manchester, OL6 6UG |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
ATL INDUSTRIES LIMITED (REGISTERED NUMBER: 03158284) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
Registered office: Whitelands Mill, Whitelands Road, Ashton Under Lyne, Greater Manchester, OL6 6UG |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
JMSTrade Limited is entitled to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies for the year ended 31 December 2023. |
Joint venture |
Registered office: Dong Van I Industrial Park, Dong Van Ward, Duy Tien Town, Ha Nam Province, Vietnam |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
12. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 January 2023 | 1,397,009 |
Additions | 38,278 |
Revaluation | 68,878 |
At 31 December 2023 | 1,504,165 |
NET BOOK VALUE |
At 31 December 2023 | 1,504,165 |
At 31 December 2022 | 1,397,009 |
Fair value at 31 December 2023 is represented by: |
£ |
Valuation in 2022 | 127,001 |
Valuation in 2023 | 68,878 |
Cost | 1,308,286 |
1,504,165 |
The investment properties were valued at 31 December 2023 by the directors on an open market basis. |
ATL INDUSTRIES LIMITED (REGISTERED NUMBER: 03158284) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
13. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Raw materials | 1,128,637 | 1,316,165 |
Finished goods | 1,024,522 | 960,411 |
2,153,159 | 2,276,576 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 1,197,522 | 1,269,406 |
Amounts owed by group undertakings | - | - |
Other debtors | 324 | 324 |
Prepayments and accrued income | 48,182 | 27,668 |
1,246,028 | 1,297,398 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade creditors | 167,619 | 189,903 |
Amounts owed to group undertakings | - | - |
Corporation tax | 89,097 | - |
Social security and other taxes | 90,508 | 100,132 |
Other creditors | 10,341 | 8,113 |
Directors' current accounts | 9,849 | 5,850 |
Accruals and deferred income | 971,899 | 615,461 |
1,339,313 | 919,459 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non- cancellable operating leases |
2023 | 2022 |
£ | £ |
Within one year | 2,542 | 36,638 |
Between one and five years | 16,652 | - |
In more than five years | 420,000 | 455,000 |
439,194 | 491,638 |
The group leases one of the buildings from which it operates from The Shirt Family Pension Fund at an amount of £35,000 per annum until 31 December 2035. |
ATL INDUSTRIES LIMITED (REGISTERED NUMBER: 03158284) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
17. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 93,821 | 115,395 |
On revalued freehold property | 101,081 | 107,958 |
On revalued investment property | 48,970 | 31,750 |
243,872 | 255,103 |
Other provisions |
Repairs provision | 121,750 | 121,750 |
Aggregate amounts | 365,622 | 376,853 |
Group |
Deferred | Repairs |
tax | provision |
£ | £ |
Balance at 1 January 2023 | 255,103 | 121,750 |
Movement in the year | (11,231 | ) | - |
Balance at 31 December 2023 | 243,872 | 121,750 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 300,000 | 300,000 |
19. | RESERVES |
Group |
Freehold | Investment |
property | property |
Retained | revaluation | revaluation |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2023 | 10,933,210 | 610,689 | 95,251 | 11,639,150 |
Profit for the year | 314,331 | - | - | 314,331 |
Dividends | (4,000 | ) | - | - | (4,000 | ) |
Transfer for depreciation charged on revalued freehold property |
22,788 |
(22,788 |
) |
- |
- |
Deferred tax movement on revalued freehold property |
(6,877 |
) |
6,877 |
- |
- |
Transfer for revaluation of investment property |
(68,878 |
) |
- |
68,878 |
- |
Deferred tax movement on revalued investment property |
17,220 |
- |
(17,220 |
) |
- |
At 31 December 2023 | 11,207,794 | 594,778 | 146,909 | 11,949,481 |
ATL INDUSTRIES LIMITED (REGISTERED NUMBER: 03158284) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
19. | RESERVES - continued |
Company |
Retained |
earnings |
£ |
At 1 January 2023 |
Profit for the year |
Dividends | ( |
) |
At 31 December 2023 |
20. | PENSION COMMITMENTS |
The group operates defined contribution pension schemes on behalf of certain employees and directors. The assets of the schemes are held separately from those of the company in independently administered funds. Contributions paid during the year amounted to £70,327 (2022 - £71,673). At 31 December 2023, £7,419 (2022 - £5,480) was payable in respect of outstanding pension contributions. |
21. | RELATED PARTY DISCLOSURES |
During the year, group companies have purchased goods amounting to £343,200 (2022 - £326,725) from Abbey Vietnam Ltd PTY, a joint venture in which ATL Industries Limited has an interest. Normal commercial terms applied. |
Also during the year, the group has paid rent amounting to £35,000 (2022 - £35,000) to The Shirt Family Pension Fund, a fund in which the director Mr J M Shirt is a trustee. Normal commercial terms applied. |
During the year, a total of key management personnel compensation of £1,054,827 (2022 - £725,587) was paid. |
The company also paid dividends to its shareholders during the year amounting to £4,000 (2022 - £8,000). |
22. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is the director, Mr J M Shirt. |