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REGISTERED NUMBER: 08452262 (England and Wales)















ARMORGARD LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023






ARMORGARD LIMITED (REGISTERED NUMBER: 08452262)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


ARMORGARD LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: B Mitchell
R Mitchell
T Mitchell
W Mitchell





REGISTERED OFFICE: Units 14-16 Fareham Industrial Park
Standard Way
Fareham
Hampshire
PO16 8XB





REGISTERED NUMBER: 08452262 (England and Wales)





AUDITORS: Rothmans Audit LLP
Statutory Auditors
Chartered Accountants
Fryern House
125 Winchester Road
Chandlers Ford
Hampshire
SO53 2DR

ARMORGARD LIMITED (REGISTERED NUMBER: 08452262)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023


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

REVIEW OF BUSINESS
The principal activity of the company is that of selling niche products in the construction industry and developing high quality products for secure storage. The products are quality tested and ergonomically designed. The company grows from strength to strength, given the innovative development of products. Armorgard Limited is constantly looking to open up markets not only in the UK but overseas.

The company has launched new innovative products, and expanded into new markets during the year, which has contributed to the increase in turnover and operating profit. The company's mission has continued to be security and safety on construction sites.

The outlook for the company is positive. The directors plan to continue to develop the corporate activities over the coming year, and will continue to invest in the business to keep the Armorgard brand at the forefront of the market.

Turnover for the year was £24,989,773, an increase of 26% over the previous year's turnover of £19,782,500. The company's profit before tax for the financial year was £3,786,509 (2022: £2,669,082).

The net assets of the company were £2,500,000 (2022: £2,000,000).

PRINCIPAL RISKS AND UNCERTAINTIES
The main risk to the company is that of fluctuations in exchange rates and in general economic conditions. Specific risks include the impact of legislation and the loss of key personnel. The board of directors will continue to actively monitor these on an ongoing basis.

The company's fiduciary management of cash flow is closely monitored and all risks are identified and addressed.

The other risks and uncertainties to the business relate to the Russia Ukraine conflict but the company is monitoring this closely. The risks surrounding the supply chain and any future trading issues with suppliers, who are likely to be impacted by the broad impacts of the geographical disruption and inflation, are also being monitored.

KEY PERFORMANCE INDICATORS
The directors monitor the business using a combination of both financial and non-financial key performance indicators. Key performance indicators include turnover, profit before tax and net assets.

The key performance indicators tracked by the directors are included in the Review of Business above.

ON BEHALF OF THE BOARD:





T Mitchell - Director


25 September 2024

ARMORGARD LIMITED (REGISTERED NUMBER: 08452262)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


The directors present their report with the financial statements of the company for the year ended 31 December 2023.

DIVIDENDS
Ordinary dividends were paid amounting to £2,680,775 (2022: £1,978,292). The directors do not recommend payment of a further dividend.

RESEARCH AND DEVELOPMENT
The company continues to invest in R&D activities, having its own internal team based in Fareham. The R&D work involves the design and development of innovative and market leading products for use in the construction industry.

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

B Mitchell
R Mitchell
T Mitchell
W Mitchell

Other changes in directors holding office are as follows:

P R Mitchell - resigned 3 July 2023

FUTURE DEVELOPMENTS
The directors anticipate the business environment will remain competitive. They believe that the company is in a good financial position and that the risks that have been identified are being well managed. With focus on the development of new products as well as continuing review of the state of the market and the activities of competitors, the directors are confident in the company's ability to maintain and build on this position.

FINANCIAL INSTRUMENTS RISKS
The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities. The company does not enter into any formally designated hedging arrangements and has a risk management programme that seeks to limit the adverse effects on the financial performance of the company.

Price risk
The company is exposed to the risk of stock pricing due to general economic or industry specific factors, as are all businesses in this industry. The directors mitigate this risk by ensuring they only carry stock of a suitable profile, and closely monitor the ageing of stock to ensure a suitable stock turn is maintained.

Credit risk
The directors mitigate credit risk by carrying our credit checks, regularly reviewing aged and overdue accounts, and taking out credit insurance.

Liquidity / cash flow risk
The directors manage this risk by ensuring sufficient funds are available to meet amounts due.

THIRD PARTY INDEMNITIES
Qualifying third party indemnity provisions for the benefit of the directors were in force during the year under review and remain in force as at the date of approval of the financial statements.


ARMORGARD LIMITED (REGISTERED NUMBER: 08452262)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and 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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 company'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 company's auditors are aware of that information.

AUDITORS
The auditors, Rothmans Audit LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





T Mitchell - Director


25 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ARMORGARD LIMITED


Opinion
We have audited the financial statements of Armorgard Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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 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 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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ARMORGARD LIMITED


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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:

We obtained an understanding of the legal and regulatory framework that the Company operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect of the operations of the Company. The key laws and relations we considered in this context included the UK Companies Act and Health & Safety regulations.

Discussions were held within the engagement team regarding how and where fraud might occur in the Financial Statements and any potential indicators of fraud. As part of this discussion, we identified potential risk areas such as the completeness of revenue. Audit procedures were designed to ensure all of the risks were addressed.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

o enquiring of management as to actual and potential litigation and claims; and

o reviewing any correspondence with regulators and the company's legal advisors.

To address the risk of fraud through management bias and override of controls, we:

o performed analytical procedures to identify any unusual or unexpected relationships;

o tested journal entries to identify unusual transactions; and

o assessed whether judgements and assumptions contained any indication of potential bias.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ARMORGARD 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.




Robin Lloyd (Senior Statutory Auditor)
for and on behalf of Rothmans Audit LLP
Statutory Auditors
Chartered Accountants
Fryern House
125 Winchester Road
Chandlers Ford
Hampshire
SO53 2DR

25 September 2024

ARMORGARD LIMITED (REGISTERED NUMBER: 08452262)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £ £ £ £

TURNOVER 3 24,989,773 19,782,500

Cost of sales 14,463,061 12,231,480
GROSS PROFIT 10,526,712 7,551,020

Exceptional items 830,114 -
Administrative expenses 5,942,028 4,890,321
6,772,142 4,890,321
3,754,570 2,660,699

Other operating income 4 16,444 3,480
OPERATING PROFIT 6 3,771,014 2,664,179

Interest receivable and similar income 16,607 4,903
3,787,621 2,669,082

Interest payable and similar expenses 8 1,112 -
PROFIT BEFORE TAXATION 3,786,509 2,669,082

Tax on profit 9 605,734 190,790
PROFIT FOR THE FINANCIAL YEAR 3,180,775 2,478,292

ARMORGARD LIMITED (REGISTERED NUMBER: 08452262)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £ £

PROFIT FOR THE YEAR 3,180,775 2,478,292


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

3,180,775

2,478,292

ARMORGARD LIMITED (REGISTERED NUMBER: 08452262)

BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £ £ £ £
FIXED ASSETS
Intangible assets 11 6,198 156,583
Tangible assets 12 793,195 905,181
799,393 1,061,764

CURRENT ASSETS
Stocks 13 2,390,060 2,284,608
Debtors 14 6,984,407 5,028,651
Cash at bank and in hand 2,855,590 3,326,457
12,230,057 10,639,716
CREDITORS
Amounts falling due within one year 15 10,366,618 9,538,985
NET CURRENT ASSETS 1,863,439 1,100,731
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,662,832

2,162,495

PROVISIONS FOR LIABILITIES 17 162,832 162,495
NET ASSETS 2,500,000 2,000,000

CAPITAL AND RESERVES
Called up share capital 18 900 900
Retained earnings 19 2,499,100 1,999,100
2,500,000 2,000,000

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2024 and were signed on its behalf by:





T Mitchell - Director


ARMORGARD LIMITED (REGISTERED NUMBER: 08452262)

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 900 1,499,100 1,500,000

Changes in equity
Dividends - (1,978,292 ) (1,978,292 )
Total comprehensive income - 2,478,292 2,478,292
Balance at 31 December 2022 900 1,999,100 2,000,000

Changes in equity
Dividends - (2,680,775 ) (2,680,775 )
Total comprehensive income - 3,180,775 3,180,775
Balance at 31 December 2023 900 2,499,100 2,500,000

ARMORGARD LIMITED (REGISTERED NUMBER: 08452262)

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


1. STATUTORY INFORMATION

Armorgard Limited is a private company, limited by shares, incorporated in England and Wales. The registered office address is Units 14-16 Fareham Industrial Park, Standard Way, Fareham, PO16 8XB. The company's registered number is 08452262.

The principal activity of Armorgard Limited is that of the manufacture of fabricated metal products.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The presentation currency is £ sterling.

Going concern
The financial statements have been prepared on a going concern basis.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d);
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirement of paragraph 33.7.

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date, and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Leases

A lease that does not transfer substantially all of the risks and rewards of ownership is classified as an
operating lease and is therefore not included in the statement of financial position.

Other key sources of estimation uncertainty

Tangible fixed assets



Tangible fixed assets are depreciated over their useful lives taking into account residual values, where
appropriate. The actual lives of the assets and residual values are assessed annually and may vary
depending on a number of factors. Residual value assessments consider issues such as market
conditions, the remaining life of the asset and projected disposal values.

Turnover
Turnover represents net sales during the year (excluding Value Added Tax) adjusted for accrued and deferred income where applicable.

Turnover is derived from the sale of secure boxes and is recognised upon despatch of the goods.

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

Intangible fixed assets are amortised over their estimated useful lives of 5 years.

ARMORGARD LIMITED (REGISTERED NUMBER: 08452262)

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


2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.

The cost of tangible fixed assets initially recognised includes its purchase price and any cost that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in a manner intended by management.

Depreciation is provided to write off the cost, less estimated residual values, evenly over their expected useful lives. It is calculated at the following rates:

Asset classDepreciation method and rate
Leasehold improvementsOver the period of the lease
Furniture, fittings and equipment20-25% straight line
Motor vehicles20-25% straight line

The assets' residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

Tangible fixed assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in the Income Statement.

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 'weighted-average cost' basis. Work in progress and finished goods include labour and attributable overheads.

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 Income Statement.

Financial instruments
The company only has financial assets and liabilities of the kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and debt instruments are subsequently measured at amortised cost.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the Balance Sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


ARMORGARD LIMITED (REGISTERED NUMBER: 08452262)

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


2. ACCOUNTING POLICIES - continued

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the Balance Sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the Income Statement in the period to which they relate.

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.

Leasing commitments
Rentals payable under operating leases, including any lease incentives received, are charged to Income Statement on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Exceptional items
Exceptional items are one off, material items outside of the normal course of business which are not related to the company's trading activities.

3. TURNOVER

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

An analysis of turnover by geographical market is given below:

2023 2022
£ £
United Kingdom 20,042,262 17,497,420
Europe 2,129,943 1,983,210
United States of America 1,722,132 54,299
Canada 918,815 -
Rest of the world 176,621 247,571
24,989,773 19,782,500

4. OTHER OPERATING INCOME
2023 2022
£ £
Sundry receipts 10,000 -
Management charges receivable 6,444 3,480
16,444 3,480

5. EMPLOYEES AND DIRECTORS
2023 2022
£ £
Wages and salaries 3,388,075 2,742,582
Social security costs 366,386 311,672
Other pension costs 45,957 39,235
3,800,418 3,093,489

ARMORGARD LIMITED (REGISTERED NUMBER: 08452262)

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


5. EMPLOYEES AND DIRECTORS - continued

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

Operations 20 19
Administration and support 13 17
Research and development 6 6
Sales 19 17
Marketing 4 5
62 64

2023 2022
£ £
Directors' remuneration 70,796 69,000
Directors' pension contributions to money purchase schemes 183 -

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 -

6. OPERATING PROFIT

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

2023 2022
£ £
Depreciation - owned assets 239,269 288,811
Profit on disposal of fixed assets - (288 )
Goodwill amortisation 24,716 20,597
Patents and licences amortisation 11,957 6,187
Auditors' remuneration 13,000 11,825
Foreign exchange differences 6,905 (15,074 )
Research and development cost 94,288 69,451
Operating lease expense 590,102 460,741

7. EXCEPTIONAL ITEMS

Exceptional items relate to provisions against items which aren't considered to be recoverable based on a decision made by the directors to cease activities with related entities. The expense is made up as follows:

2023
£

Provision against amounts owed by related parties531,560
Provision against stock175,000
Provision against intangible fixed assets113,711
Provision against tangible fixed assets9,842
830,114

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£ £
Interest payable 1,112 -

ARMORGARD LIMITED (REGISTERED NUMBER: 08452262)

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


9. 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 605,397 77,167
Over/under provision in prior
year - (1,542 )
Total current tax 605,397 75,625

Deferred tax 337 115,165
Tax on profit 605,734 190,790

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 3,786,509 2,669,082
Profit multiplied by the standard rate of corporation tax in the UK of
23.521% (2022 - 19%)

890,625

507,126

Effects of:
Expenses not deductible for tax purposes 28,556 4,773
Adjustments to tax charge in respect of previous periods - (1,542 )
Movement in deferred tax previously unprovided 80,147 10,351
Impact of super deduction (161 ) (37,263 )
Research and development tax credit (321,154 ) (311,504 )
Difference in tax rate (2,033 ) 27,146
Other timing differences (45,457 ) (8,297 )
Patent box deduction (24,789 ) -
Total tax charge 605,734 190,790

10. DIVIDENDS

20232022
Ordinary shares of £1 each£   £   

Interim2,680,7751,978,292

ARMORGARD LIMITED (REGISTERED NUMBER: 08452262)

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


11. INTANGIBLE FIXED ASSETS
Patents and
Goodwill licences Totals
£ £ £
COST
At 1 January 2023
and 31 December 2023 2,023,582 59,785 2,083,367
AMORTISATION
At 1 January 2023 1,920,597 6,187 1,926,784
Amortisation for year 24,716 11,957 36,673
Impairments 78,269 35,443 113,712
At 31 December 2023 2,023,582 53,587 2,077,169
NET BOOK VALUE
At 31 December 2023 - 6,198 6,198
At 31 December 2022 102,985 53,598 156,583

12. TANGIBLE FIXED ASSETS
Furniture,
fittings
Leasehold and Motor
improvements equipment vehicles Totals
£ £ £ £
COST
At 1 January 2023 674,981 854,980 291,016 1,820,977
Additions 24,824 60,801 51,500 137,125
At 31 December 2023 699,805 915,781 342,516 1,958,102
DEPRECIATION
At 1 January 2023 286,737 466,909 162,150 915,796
Charge for year 86,598 108,348 44,323 239,269
Impairments - 9,842 - 9,842
At 31 December 2023 373,335 585,099 206,473 1,164,907
NET BOOK VALUE
At 31 December 2023 326,470 330,682 136,043 793,195
At 31 December 2022 388,244 388,071 128,866 905,181

13. STOCKS
2023 2022
£ £
Finished goods 2,390,060 2,284,608

A provision for impairment has been recognised during the year as an expense to the Income Statement totalling £175,000 (2022: £Nil).

ARMORGARD LIMITED (REGISTERED NUMBER: 08452262)

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


14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£ £
Trade debtors 3,167,802 2,980,439
Amounts owed by group undertakings 2,772,802 707,777
Amounts owed by related parties 202,087 741,372
Other debtors 37,905 7,000
Corporation tax 394,264 286,953
Prepayments and accrued income 409,547 305,110
6,984,407 5,028,651

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£ £
Trade creditors 1,701,632 1,006,226
Amounts owed to group undertakings 6,961,442 7,331,695
Social security and other taxes 687,115 569,483
Other creditors 120,757 14,081
Accruals and deferred income 895,672 617,500
10,366,618 9,538,985

16. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£ £
Within one year 587,947 590,102
Between one and five years 1,411,723 1,999,670
1,999,670 2,589,772

17. PROVISIONS FOR LIABILITIES
2023 2022
£ £
Deferred tax 162,832 162,495

Deferred tax
£
Balance at 1 January 2023 162,495
Provided during year 337
Balance at 31 December 2023 162,832

The provision for deferred tax relates solely to accelerated capital allowances.

ARMORGARD LIMITED (REGISTERED NUMBER: 08452262)

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


18. CALLED UP SHARE CAPITAL

2022 2021
£ No. No. £
Ordinary A Shares of £1 each 100 100 100 100
Ordinary B Shares of £1 each 100 100 100 100
Ordinary C Shares of £1 each 100 100 100 100
Ordinary D Shares of £1 each 100 100 100 100
Ordinary E Shares of £1 each 100 100 100 100
Ordinary F Shares of £1 each 100 100 100 100
Ordinary G Shares of £1 each 100 100 100 100
Ordinary H Shares of £1 each 100 100 100 100
Ordinary I Shares of £1 each 100 100 100 100
900 900 900 900

The ordinary shares rank equally in respect of voting rights and any dividend declared, and shall entitle the holder to full participation in respect of the entity and in the event of winding up the company.

19. RESERVES
Retained
earnings
£

At 1 January 2023 1,999,100
Profit for the year 3,180,775
Dividends (2,680,775 )
At 31 December 2023 2,499,100

Retained earnings are the accumulated profits and losses to date.

20. PENSION COMMITMENTS

The company operates defined contribution pension schemes for all its employees. The schemes and their assets are held by independent managers. The pension charge represents contributions due from the company and amounted to £45,956 (2022: £39,235).

21. ULTIMATE PARENT COMPANY AND ULTIMATE CONTROLLING PARTY

The immediate and ultimate parent company at the year end was Armorgard Holdings Limited, a company registered in England & Wales. Post year end, the ultimate parent company changed to Armorgard Group Holdings Limited. The intermediate parent company is unchanged.

The largest and smallest group in which the results of the company are consolidated is that headed by Armorgard Holdings Limited. The consolidated accounts of this company are available to the public and may be obtained from Companies House. No other group accounts include the results of the company.

The directors do not consider any one party to have ultimate control of the company.

22. 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.

During the year, associates of Armorgard Holdings Limited, the parent company, traded with Armorgard Limited. Armorgard Limited made sales of £154,841 (2022: £240,781) to these associates. At the year end, a balance of £733,647 (2022: £741,372) was owed to Armorgard Limited (before taking into account any provisions) and is included within 'Debtors: amounts falling due within one year.' A provision of £531,560 has been recognised in relation to this amount owed and is included within exceptional items.