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REGISTERED NUMBER: 05276638 (England and Wales)















GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

BETRONICS LIMITED

BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

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 6

Report of the Independent Auditors 8

Consolidated Income Statement 12

Consolidated Other Comprehensive Income 13

Consolidated Balance Sheet 14

Company Balance Sheet 15

Consolidated Statement of Changes in Equity 16

Company Statement of Changes in Equity 17

Consolidated Cash Flow Statement 18

Notes to the Consolidated Cash Flow Statement 19

Notes to the Consolidated Financial Statements 20


BETRONICS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: J H Law
S Jolly
C G Lewis





SECRETARY: J H Law





REGISTERED OFFICE: Unit 3, Gateway
1 Opus Close
Carrington
Manchester
M31 4RQ





REGISTERED NUMBER: 05276638 (England and Wales)





AUDITORS: Harold Sharp Limited
Statutory Auditors and Chartered Accountants
5 Brooklands Place
Brooklands Road
Sale
Cheshire
M33 3SD

BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023


The directors present the Strategic Report together with the audited financial statements for the year ended 31 December 2023.

REVIEW OF BUSINESS
Principal activity and business review

The principal activities of the group during the year remained that of the manufacture of protective packaging solutions.

Development of the business

Fiscal 2023 saw the Group's sales decrease by 6.4% to £13.09m. The associated Gross Profit whilst running at an improved 61.1% versus Fiscal 2022's 59.6%, decreased by 4.1% to £7.99m. Domestic sales accounted for 54% of revenue with export activity contributing 46%. The Group achieved sales with 41 export territories which serves to provide continued evidence that the Group's global reach is as strong as ever, supported by a programme of direct sales, sales through strategic distribution channels and an ever-growing on-line presence. The Group continues to exploit its considerable business differentiators in all markets, manufacturing the highest quality packaging, supplied in a timely fashion whilst ensuring adherence to its business ethics. The Group continues to win new business in all markets and to consolidate its position as the UK's leading supplier of climatic packaging solutions and a major force in Europe and further afield. The Group continues to review its manufacturing techniques and material and product format mix with a view to achieving sales growth in industry sectors, specific applications and geographical regions that meet the sales strategies of the business. The Group will continue to maximise the sales opportunities and associated margin levels for the unique elements of its product range. In every area of the business, we are stronger and more capable than ever due to the continuing success and further development of the Buddy System linked to a more strategic recruitment policy and continued investment in its automated manufacturing capability.

The Group's results for the year are included within these financial statements.

Future-outlook

2024 will see a ramping up of our dedicated sales and marketing initiatives associated with our ability to offer pouches with re-closable zipper profiles. Our zipper-pouch manufacturing capability will allow us to manufacture to both traditional sizes, but also to dimensions previously unavailable commercially anywhere. From our new modern base, and with our new equipment in place, the Directors are planning to be ready to exploit the growing opportunities associated with the global market and maintain and where possible enhance their position, as a worldwide leader in the provision of climatic packaging solutions across all market sectors and geographical locations. The Group's routes to market will continue to be a combination of direct sales and sales via a strategically developed network of exclusive and non-exclusive distributors and business partners, all supported by previous good practice with regard to recruitment and training proactive. The Group will continue to work to the disciplines of its unbroken 35-year accreditation to ISO 9001:2015 and exploit the opportunities that will arise as a result. In addition, 2024 will allow the Group to exploit its accredited to the ISO 14001:2015 Standard for Environmental Management which, when coupled with the Group's continuing status as a carbon neutral business as it journeys towards Net Zero, demonstrates an appreciation of its environmental impact. The Group will use its enhanced manufacturing base to continue to engage with its key markets such as the pharmaceutical, diagnostic, healthcare, aerospace, electronics and food sectors. We will extend our global reach and presence by a significant increase in our marketing activity and through further development of our various websites in tandem with our linguistic skill sets. The Group's commercial and operational platforms will grow through the further development of management in both areas of the business to further support the fulfilment of the Group's Fiscal 2024 growth aspirations. Fiscal 2024 will see a continued emphasis placed upon the Group's significant differentiators as we seek to develop new markets and where necessary, displace the indigenous supply base. Fiscal 2024 will see the continued development of a new, tailored ERP system that will support our business as we develop our operational efficiencies and provide our customers with an enhanced experience. Fiscal 2024 will see the Group develop specific mono-polymer materials to meet the requirements where appropriate, of sustainability and recyclability whilst maintaining the fundamentals principles of a barrier to atmospheric degradation of the packaged product and the prolongation of product-life.


BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties that the Group faces continue to relate mainly to working within the credit worthiness of our customers, both domestic and overseas. In mitigation, our relationship with our credit limit underwriters is crucial, as we will only extend credit payment terms to companies that we can obtain an insured credit limit with. Immediate payment against pro-forma invoices is the only option when we are doing business with uninsured customers and this can sometimes be a hurdle to us actually doing business. The Group is exposed to fluctuating cost prices for its key raw materials and to currency exchange rates. In mitigation, the Group robustly resists the acceptance of price fluctuation, other than downwards and in respect of the GBP/EURO exchange rate relationship, has the perfect natural hedge of almost parity between the value of EURO purchases and EURO sales. The Group's IT system is fundamentally based on an aged and creaking platform, but F2023/4 will see the full integration across the entire business of a new and bespoke ERP system. The Group has successfully navigated the implementation of the Plastic Packaging Tax (PPT) and the collection of the appropriate amount of tax from the sale of eligible products. However, the challenge remains for the Group to work with its supply chain on the development of laminate materials that contain a minimum 30% recyclate content so that its customers will no longer be exposed to the payment of PPT. This is not an overnight fix, but a medium to long-term aim and one that the Group is engaged in with its key supply partners. On a related theme, a further challenge that the Group faces is the implementation of Extended Producer Responsibility (EPR) and the associated cost of managing and recycling the packaging waste generated. The Group is required to obtain, from all UK customers, an understanding of the sales revenue of those customers, personnel employed by those customers and an appreciation of whether any of the purchased packaging is destined for the domestic waste stream. The collection of this data is a burden on the business.

Other potential risks include

Price risk: Economical, political and market conditions in supplier countries can affect the price we pay for raw materials. This can adversely affect our business but can also benefit the business.

Credit risk: All our domestic and overseas debt is insured or based on advance payment, to minimise any bad debt exposure within the business.

Liquidity risk: Due to our financial results during these financial years and our strict credit, we are diligent in managing our cash flows.

Exchange risk: The uncertainty associated to currency exchange rates is largely obviated by the company's natural hedge mechanism related to an almost equitable split in overseas currency sales and purchases.

Financial/Cash flow risk: The Group finances its operations through a mixture of cash flows and invoice financing. Daily cash positions are sent to the board for review. The management's objective is to retain sufficient liquid funds to enable it to meet its day to day obligations as they fall due.


BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

POST BALANCE SHEET EVENTS
Events over the last few years such as Covid, the conflict in Ukraine and even shipping issues such as the problem in the Suez Canal have seen a lot of instability regarding pricing of things like energy, aluminium, polymers and freight. Although things have begun to stabilise we still need to be mindful of the ever changing climate that we are currently experiencing. We have seen multiple increases to interest rates, inflation and fluctuating fuel prices which all impacts our supply chain. Due to the nature of our business this has subsequently had an impact on our suppliers pricing which we are diligently monitoring using various market intelligence to ensure we are getting the most competitive prices and staying ahead of the curve.

We continue to monitor changes within the industry such as Plastic Packaging Tax which came into effect as at the 1st April 2022, as with previous potential significant business changes we were ahead of the curve and fully prepared for its implementation. Over the last 2 years we have seen increases in the amount charged per tonne for Plastic Packaging Tax and have made the necessary adjustments when required. We are also aware of changes in other European countries who begin to implement their own similar regulations and will ensure our processes are updated to reflect this where necessary.

Extended Producer Responsibility or EPR was introduced in 2023 the idea is to see the full cost of managing household waste shift to producers, in the hope of delivering a more circular economy for packaging where greater quantities of recyclable waste are reprocessed into valuable, high-quality secondary resources. EPR will also change the way in which non-household packaging waste is managed and its reprocessing is financed. Due to the nature of our business, our place in the supply chain and the amount of packaging we handle then this is something that we must conform to. A project team reviewed the published regulations and submitted data in line with our obligation during 2023 and will continue to do so throughout 2024. At this time the cost to the business of EPR is still unclear but full details are due to be published during the 2nd half of 2024.

As part of the review of our business impact on the environment we have once again partnered with a Group to off-set our carbon emissions to become carbon neutral for another year. We also gained the ISO 14001 accreditation early 2023 and undertook the surveillance audit early 2024. We partnered with a specialist Group for the installation of solar panels at our facility which were installed early Q2 2024 with significant results.

During 2022 we engaged with a specialist ERP partner to replace our current dated IT system and also our accounting software. This will help streamline procedures without the need to transfer data between the two different systems and also improve reporting and analysis. This is a substantial project which will be vigorously tested and development of the system will continue throughout 2024 with an expected completion of Q4 2024 or Q1 2025.

GOING CONCERN
In preparing these financial statements, the Directors are required to prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
Group will continue in business. In satisfaction of this responsibility, the Directors have considered the Group's ability to meet its liabilities as they fall due for a period of at least twelve months from the signing date of the financial statements.

The Group continues to manufacture at its new production facility with no plans to stop production. To date, the Group has not experienced any significant disruption from employee absence, its supply chain or its distribution networks and none is anticipated in the foreseeable future due to the fact that the Group has significant current orders as at the date of signing these accounts as well as holding appropriate levels of stock.

The Directors have prepared what they consider to be a realistic forecast for the period to the end of December 2025. This indicates that for a period of 16 months from the date of signing these accounts, the Group continues to generate cash. There are various cost saving measures that the Directors could implement if the fall in revenue was worse than this.

The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Directors therefore believe that it remains appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.


BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

FINANCIAL KEY PERFORMANCE INDICATORS
Financially we have exercised excellent controls with regard to stock and cash flow with stock turn, debtor days and creditor days all at appropriate levels which are reported to the board for review on a weekly basis. All expense lines remain under control. Our sales visits and issued samples and quotes were all in line with our targets and our customer survey clearly indicates that we are considered an excellent supplier. Quality complaints are in line with our objectives but continue to be reviewed and improvements implemented to ensure these are kept to an absolute minimum.

RESEARCH AND DEVELOPMENT
The Group will continue to develop new materials, manufacturing techniques and packaging product formats to allow entry into new geographical markets, areas of application and industry sectors and continue to provide specialist product and equipment manufacturers with the climatic packaging solutions that they require. We will endeavour wherever possible to utilise smart features on our packaging to exploit the opportunities for intelligent packaging. The Group will build upon its growing reputation as a developer of the most appropriate packaging solutions to meet the specific demands of the customer's needs and that of their products and routes to market. The Group will continue to link its excellent technical acumen with that of its key material supply base to achieve this objective.

ON BEHALF OF THE BOARD:





J H Law - Director


23 September 2024

BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

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.

PRINCIPAL ACTIVITY
The principal activity of the group in the year under review was that of the manufacture of protective packaging solutions.

DIVIDENDS
The profit for the year, after taxation amounted to £1,336,293 (2022: £1,347,295).
The total distribution of dividends for the year ended 31 December 2023 was £1,000,000 (2022: £1,093,752).

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

J H Law
S Jolly
C G Lewis

DIRECTORS INDEMNITIES
The company has currently made qualifying third party indemnity provisions for the benefit of its directors, which remain in force at the date of this report.

DISCLOSURE IN THE STRATEGIC REPORT
The business review, financial risk assessment, assessment of principal risk and uncertainties, research and development, post balance sheet events and future developments are included within the strategic report.

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). 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


AUDITORS
The auditors, Harold Sharp Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





J H Law - Director


23 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BETRONICS LIMITED


Opinion
We have audited the financial statements of Betronics Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BETRONICS LIMITED


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.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BETRONICS LIMITED


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:

As part of our planning process:
- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud.
- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, health and safety, and employment law.
- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.
- Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.
- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to accrued costs, and dilapidations provision.
- Assessing the extent of compliance, or lack of, with the relevant laws and regulations in particular those that are central to the entities ability to continue in operation.
- Testing key revenue lines, in particular cut-off, for evidence of management bias.
- Performing a physical verification of key assets , including stock.
- Obtaining third-party confirmation of material bank balances.
- Documenting and verifying all significant related party and consolidated balances and transactions.
- Reviewing documentation such as the company board minutes, correspondence with solicitors, for discussions of irregularities including fraud.
- Testing all material consolidation adjustments.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors and management.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BETRONICS LIMITED


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.




Karen Dent (Senior Statutory Auditor)
for and on behalf of Harold Sharp Limited
Statutory Auditors and Chartered Accountants
5 Brooklands Place
Brooklands Road
Sale
Cheshire
M33 3SD

24 September 2024

BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 3 13,091,425 13,992,763

Cost of sales 5,093,647 5,654,758
GROSS PROFIT 7,997,778 8,338,005

Administrative expenses 6,251,922 6,462,195
OPERATING PROFIT 5 1,745,856 1,875,810


Interest payable and similar expenses 7 16,146 40,973
PROFIT BEFORE TAXATION 1,729,710 1,834,837

Tax on profit 8 393,417 487,542
PROFIT FOR THE FINANCIAL YEAR 1,336,293 1,347,295
Profit attributable to:
Owners of the parent 1,336,293 1,347,295

BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

CONSOLIDATED OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 1,336,293 1,347,295


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

1,336,293

1,347,295

Total comprehensive income attributable to:
Owners of the parent 1,336,293 1,347,295

BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

CONSOLIDATED BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 11 85,179 55,570
Tangible assets 12 1,632,275 1,513,340
Investments 13 - -
1,717,454 1,568,910

CURRENT ASSETS
Stocks 14 902,393 1,177,508
Debtors 15 2,729,556 3,181,042
Cash at bank and in hand 908,180 878,748
4,540,129 5,237,298
CREDITORS
Amounts falling due within one year 16 3,515,641 4,279,850
NET CURRENT ASSETS 1,024,488 957,448
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,741,942

2,526,358

PROVISIONS FOR LIABILITIES 20 586,536 707,245
NET ASSETS 2,155,406 1,819,113

CAPITAL AND RESERVES
Called up share capital 21 808 808
Capital redemption reserve 22 111 111
Retained earnings 22 2,154,487 1,818,194
SHAREHOLDERS' FUNDS 2,155,406 1,819,113

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2024 and were signed on its behalf by:





J H Law - Director


BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

COMPANY BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 11 - -
Tangible assets 12 - -
Investments 13 1,984,486 1,984,486
1,984,486 1,984,486

CURRENT ASSETS
Debtors 15 744 744

CREDITORS
Amounts falling due within one year 16 2,787,305 2,787,305
NET CURRENT LIABILITIES (2,786,561 ) (2,786,561 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(802,075

)

(802,075

)

CAPITAL AND RESERVES
Called up share capital 21 808 808
Capital redemption reserve 22 111 111
Retained earnings 22 (802,994 ) (802,994 )
SHAREHOLDERS' FUNDS (802,075 ) (802,075 )

Company's profit for the financial year 1,000,000 1,093,752

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2024 and were signed on its behalf by:





J H Law - Director


BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 January 2022 808 1,564,651 111 1,565,570

Changes in equity
Dividends - (1,093,752 ) - (1,093,752 )
Total comprehensive income - 1,347,295 - 1,347,295
Balance at 31 December 2022 808 1,818,194 111 1,819,113

Changes in equity
Dividends - (1,000,000 ) - (1,000,000 )
Total comprehensive income - 1,336,293 - 1,336,293
Balance at 31 December 2023 808 2,154,487 111 2,155,406

BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 January 2022 808 (802,994 ) 111 (802,075 )

Changes in equity
Dividends - (1,093,752 ) - (1,093,752 )
Total comprehensive income - 1,093,752 - 1,093,752
Balance at 31 December 2022 808 (802,994 ) 111 (802,075 )

Changes in equity
Dividends - (1,000,000 ) - (1,000,000 )
Total comprehensive income - 1,000,000 - 1,000,000
Balance at 31 December 2023 808 (802,994 ) 111 (802,075 )

BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,618,495 1,971,465
Finance costs paid (16,146 ) (40,973 )
Tax paid (268,359 ) (398,062 )
Net cash from operating activities 1,333,990 1,532,430

Cash flows from investing activities
Purchase of intangible fixed assets (40,469 ) (32,059 )
Purchase of tangible fixed assets (264,089 ) (213,142 )
Net cash from investing activities (304,558 ) (245,201 )

Cash flows from financing activities
Equity dividends paid (1,000,000 ) (1,093,752 )
Net cash from financing activities (1,000,000 ) (1,093,752 )

Increase in cash and cash equivalents 29,432 193,477
Cash and cash equivalents at beginning of
year

2

878,748

685,271

Cash and cash equivalents at end of year 2 908,180 878,748

BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

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 1,729,710 1,834,837
Depreciation charges 156,014 101,262
Increase in provisions 52,000 52,000
Release of provisions (246,041 ) -
Finance costs 16,146 40,973
1,707,829 2,029,072
Decrease/(increase) in stocks 275,115 (233,296 )
Decrease/(increase) in trade and other debtors 451,486 (46,269 )
(Decrease)/increase in trade and other creditors (815,935 ) 221,958
Cash generated from operations 1,618,495 1,971,465

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 908,180 878,748
Year ended 31 December 2022
31/12/22 1/1/22
£    £   
Cash and cash equivalents 878,748 685,271


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 878,748 29,432 908,180
878,748 29,432 908,180
Total 878,748 29,432 908,180

BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023


1. STATUTORY INFORMATION

Betronics Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 05276638, and registered office is Unit 3, Gateway, 1 Opus Close, Carrington, Manchester, M31 4RQ. The nature of the group's operations and its principal activities are set out in the strategic report.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The presentation and functional currency is the Pound Sterling (£).

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires group management to exercise judgement in applying the group's accounting policies.

The following principal accounting policies have been applied:

Parent company disclosure exemptions

In preparing the separate financial statements of the parent company, advantage has been taken of the following disclosure exemptions available in FRS 102:

• no cash flow statement has been presented for the parent company;

• disclosures in respect of the parent company's financial statements have not been presented as equivalent disclosures have been provided in respect of the group as a whole; and

• no disclosure has been given for the aggregate remuneration of the key management personnel of the parent company as their remuneration is included in the totals for the group as a whole.

Basis of consolidation
The consolidated financial statements present the results of group and its own subsidiaries ("the group") as they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The directors have made no material judgements but have made estimates in preparing these financial statements. The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Accrued costs
Accrued expenditure is estimated by the directors at each year end, to ensure that all known liabilities are accounted for in the financial statements.

Provisions
A provision is recognised in the balance sheet when the entity has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

Management estimate and make provision for costs that will be incurred in returning a leased property to the condition that it was in at the inception of the lease. The actual costs of work that needs to be completed could vary from the estimates. The amount recognised is the estimated cost of dilapidations and is reassessed each year in accordance with local conditions and requirements. Changes in the estimated timing of dilapidations or dilapidations cost estimates are dealt with prospectively by recording an adjustment to the provision.

BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Turnover
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the group and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
- the group has transferred the significant risks and rewards of ownership to the buyer;
- the group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
- the amount of turnover can be measured reliably;
- it is probable that the group will receive the consideration due under the transaction; and
- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of the group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the statement of comprehensive income over its useful economic life of 20 years.

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.

Development costs are being amortised evenly over their estimated useful life of four years.

Development costs are in respect of the company's new ERP system which was not brought into use at the year end. Once in use the asset will be amortised over its estimated useful life of four years.

BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following bases:

Leasehold property improvementsstraight line over term of the lease
Motor vehicles25% reducing balance
Plant & machinery10% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the statement of comprehensive income.

Assets under construction represent machinery not yet complete. They are subject to depreciation once complete and brought into use.

Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the consolidated statement of comprehensive income.

Stocks are comprised of packaging materials and completed packaging items.

BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Financial instruments
The group 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.

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 group would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the statement of financial position 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.

Taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

Current and deferred taxation assets and liabilities are not discounted.

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 and the group operate and generate income.

Deferred tax
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the statement of financial position date, except that:
- the recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
- any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Foreign currencies
Foreign currency transactions are translated into the functional currency using the spot exchange rates 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 profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Going concern
In preparing these financial statements, the Directors are required to prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
Group will continue in business. In satisfaction of this responsibility, the Directors have considered the Group 's ability to meet its liabilities as they fall due for a period of at least twelve months from the signing date of the financial statements.

The Group continues to manufacture at its new factory production facility with no plans to stop production. To date, the Group has not experienced any significant disruption from employee absence, its supply chain or its distribution networks and none is anticipated in the foreseeable future due to the fact that the Group has significant current orders as at the date of signing these accounts as well as holding appropriate levels of stock.

The Directors have prepared what they consider to be a realistic forecast for the period to the end of December 2025. This indicates that for a period of 16 months from the date of signing these accounts, the Group continues to generate cash. There are various cost saving measures that the Directors could implement if the fall in revenue was worse than this.

The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Directors therefore believe that it remains appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.

BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Debtors
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Interest income

Interest income is recognised in the consolidated statement of comprehensive income using the effective interest method.

Finance costs

Finance costs are charged to the consolidated statement of comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Provision for liabilities

Provisions are made where an event has taken place that gives the group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the consolidated statement of comprehensive income in the year that the group becomes aware of the obligation, and are measured at the best estimate at the statement of financial position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the statement of financial position

BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Cash and equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Pensions

The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations.

The contributions are recognised as an expense in the consolidated statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the statement of financial position. The assets of the plan are held separately from the group in independently administered funds.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 8,773,488 7,341,607
Europe 3,901,064 4,767,038
Rest of the world 416,873 1,884,118
13,091,425 13,992,763

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 5,463,941 5,718,589
Social security costs 252,972 276,548
Other pension costs 68,656 73,281
5,785,569 6,068,418

The average number of employees during the year was as follows:
2023 2022

Production staff 28 31
Administrative staff 32 28
Management staff 5 5
65 64

BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


4. EMPLOYEES AND DIRECTORS - continued

2023 2022
£    £   
Directors' remuneration 3,230,406 3,215,631

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 3,137,976 3,106,567

Amounts paid to third parties in respect of directors services £42,000 (2022: £42,000).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director was £nil (2022: £nil).

The directors are deemed to be key management personnel.

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Hire of plant and machinery 10,317 11,424
Other operating leases 247,369 127,287
Depreciation - owned assets 145,154 90,402
Goodwill amortisation 10,860 10,860
Auditors' remuneration 16,000 15,000
Foreign exchange differences - (155,527 )

Services provided by the auditors for non audit services were £1,000 (2022: £1,000).

6. EXCEPTIONAL ITEMS
2023 2022
£    £   
Exceptional items 175,958 (52,000 )

Exceptional items relates to the group's dilapidations provision movement in the year.

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Other interest received (3,178 ) (338 )
Invoice factoring fees 19,324 41,311
16,146 40,973

BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


8. 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 320,085 356,407

Deferred tax 73,332 131,135
Tax on profit 393,417 487,542

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 1,729,710 1,834,837
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 -
19 %)

432,428

348,619

Effects of:
Expenses not deductible for tax purposes (65,246 ) 42,052
Capital allowances in excess of depreciation (24,401 ) (33,147 )
Adjustments to tax charge in respect of previous periods (2,411 ) (3,180 )
Deferred tax 73,332 131,135
Amortisation - 2,063
Rate change (20,285 ) -
Total tax charge 393,417 487,542

9. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


10. DIVIDENDS
2023 2022
£    £   
Ordinary shares of 0.001 each
Final 1,000,000 1,093,752

Dividends are paid on 'A' Ordinary shares only.

BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


11. INTANGIBLE FIXED ASSETS

Group
Development
Goodwill costs Totals
£    £    £   
COST
At 1 January 2023 217,130 32,059 249,189
Additions - 40,469 40,469
At 31 December 2023 217,130 72,528 289,658
AMORTISATION
At 1 January 2023 193,619 - 193,619
Amortisation for year 10,860 - 10,860
At 31 December 2023 204,479 - 204,479
NET BOOK VALUE
At 31 December 2023 12,651 72,528 85,179
At 31 December 2022 23,511 32,059 55,570

12. TANGIBLE FIXED ASSETS

Group
Improvements Asset
to Plant and under
property machinery construction Totals
£    £    £    £   
COST
At 1 January 2023 782,702 2,041,210 154,619 2,978,531
Additions 24,661 239,428 - 264,089
Reclassification/transfer - 154,619 (154,619 ) -
At 31 December 2023 807,363 2,435,257 - 3,242,620
DEPRECIATION
At 1 January 2023 68,614 1,396,577 - 1,465,191
Charge for year 54,013 91,141 - 145,154
At 31 December 2023 122,627 1,487,718 - 1,610,345
NET BOOK VALUE
At 31 December 2023 684,736 947,539 - 1,632,275
At 31 December 2022 714,088 644,633 154,619 1,513,340

BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


13. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 January 2023
and 31 December 2023 1,984,486
NET BOOK VALUE
At 31 December 2023 1,984,486
At 31 December 2022 1,984,486

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiary

Protective Packaging Limited
Registered office: Unit 3, Gateway, 1 Opus Close, Carrington, Manchester, M31 4RQ
Nature of business: Climatic packaging
%
Class of shares: holding
Ordinary 100.00


14. STOCKS

Group
2023 2022
£    £   
Raw materials 862,314 1,125,639
Finished goods 40,079 51,869
902,393 1,177,508

No impairment loss has been recognised in cost of sales against stock during the year or in the prior year due to slow-moving and obsolete stock.

There is no material difference between replacement cost of stocks and the amounts stated above.

BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade debtors 1,628,480 2,088,801 - -
Other debtors 334,796 150,666 744 744
Amounts owed by related
parties 474,585 750,362 - -
Prepayments and accrued income 291,695 191,213 - -
2,729,556 3,181,042 744 744

Trade debtors of £1,483,280 (2022: £1,834,431) were factored at 31 December 2023 and are included above as an outstanding trade balance due from the facility provider as the cash has not been received from them at the year end. Factoring debt is secured by a fixed charge in favour of Close Brothers Limited.

The impairment loss recognised in the group statement of comprehensive income for the year in respect of bad and doubtful trade debtors was £nil (2022: £nil).

Amounts owed by group undertakings are interest free and due on demand.

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade creditors 586,421 1,106,011 - -
Amounts owed to group undertakings - - 2,274,800 2,231,048
Tax 115,279 63,553 - -
Social security and other taxes 354,744 347,155 - -
Other creditors 1,939,431 2,104,510 512,505 556,257
Accruals and deferred income 519,766 658,621 - -
3,515,641 4,279,850 2,787,305 2,787,305

Amounts owed to group undertakings are interest free and repayable on demand.

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


Group
Non-cancellable operating leases
2023 2022
£    £   
Within one year 310,084 310,084
Between one and five years 1,031,443 1,102,583
In more than five years 1,792,076 2,031,019
3,133,603 3,443,686

18. SECURED DEBTS

The following secured debts are included within creditors:

Group
2023 2022
£    £   
Other creditors - 146,826

Factoring debts are secured by a debenture in favour of Close Brothers Limited.

19. FINANCIAL INSTRUMENTS

GROUP

Carrying amount of financial assets at 31 December 2023 amounted to £3,346,041 (2022: £3,868,577).
Carrying amount of financial liabilities measured at amortised cost at 31 December 2023 was £2,525,853 (2022: £3,210,521).


COMPANY

Carrying amount of financial assets at 31 December 2023 amounted to £744 (2022: £744).
Carrying amount of equity instruments measured at cost less impairment at 31 December 2023 amounted to £1,984,486 (2022: £1,984,486).

Carrying amount of financial liabilities measured at amortised cost at 31 December 2023 was £2,787,305 (2022: £2,787,305).

BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


20. PROVISIONS FOR LIABILITIES

Group
2023 2022
£    £   
Deferred tax 335,332 261,999

Other provisions 251,204 445,246

Aggregate amounts 586,536 707,245

Group
Deferred Other
tax provisions
£    £   
Balance at 1 January 2023 261,999 445,246
Provided during year 73,333 52,000
Unused amounts reversed during year - (246,042 )
Balance at 31 December 2023 335,332 251,204

The provision for deferred taxation comprises accelerated capital allowances of £400,866 (2022: £371,997), less short term timing differences of £65,534 (2022: £109,998).

Other provisions are for dilapidations in respect of the company's old and new premises.

21. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
555,160 'A' Ordinary 0.001 555 555
252,840 Ordinary 0.001 253 253
808 808

'A' Ordinary shares have full voting, dividend and capital rights. Ordinary shares have full voting, dividend and capital rights.

BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


22. RESERVES

Group
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 January 2023 1,818,194 111 1,818,305
Profit for the year 1,336,293 1,336,293
Dividends (1,000,000 ) (1,000,000 )
At 31 December 2023 2,154,487 111 2,154,598

Company
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 January 2023 (802,994 ) 111 (802,883 )
Profit for the year 1,000,000 1,000,000
Dividends (1,000,000 ) (1,000,000 )
At 31 December 2023 (802,994 ) 111 (802,883 )

The capital redemption reserve contains the nominal value of owned shares that have been acquired by the company and cancelled.
The retained earnings represents cumulative profits or losses, net of dividends paid and other adjustments.

23. PENSION COMMITMENTS

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £61,712 (2022: £61,791). Contributions totalling £917 (2022: £nil) were payable to the fund at 31 December 2023.

24. CAPITAL COMMITMENTS
2023 2022
£    £   
Contracted but not provided for in the
financial statements 72,310 181,000

BETRONICS LIMITED (REGISTERED NUMBER: 05276638)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


25. RELATED PARTY DISCLOSURES

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 with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

The group paid consultancy fees of £42,000 (2022: £42,000) to Boxburn Limited, a company in which J H Law is a director. At the year end the balance of £23,000 (2022: £23,000) was due to Boxburn Limited.The amount is included within trade creditors.

As at 31 December 2023 the group owed £1,409,375 (2022: £1,529,687) to C G Lewis, a director of the company. The amount is included in other creditors and is interest free and repayable on demand.

As at 31 December 2023 the group and company owed £410,000 (2022: £445,001) to S P Jolly, a director of the company. The amount is included in other creditors and is interest free and repayable on demand.

As at 31 December 2023 the group and company owed £102,500 (2022: £111,251) to J H Law, a director of the company. The amount is included in other creditors and is interest free and repayable on demand.

The group is also related to 3D Barrier Bags, Inc. a company under common control. During the year the group made sales of £44,213 (2022: £54,974) to 3D Barrier Bags. At the year end £474,585 (2022: £750,362) was owed by 3D Barrier Bags. This is included in debtors amounts owed by related parties.

Key management personnel include all directors across the group who together have authority and responsibility for planning, directing and controlling the activities of the group. Directors remuneration is disclosed in note 4 of the financial statements.

26. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is C G Lewis.