Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2023
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
CONTENTS
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
COMPANY INFORMATION
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
During the period, the principal activity of the Group continued to be the design, manufacture, distribution and sale of thermostatic and agitative laboratory equipment and dataloggers, together with associated services, for Grant branded products and customer-specific applications.
The Group's purpose is to provide products and services that enable highly accurate preparation, measurement, heating and cooling in laboratory and industrial applications.
2023 saw Grant continue to hold strong in a globally unstable market. A reduction in turnover of 1% in a market where the Ukraine war continues, the Israel / Palestinian situation made the middle east precarious, the US faced economic uncertainty and the UK was knocking on the door of recession was a success. UK sales actually rose by 33% in the year whilst trade from outside of Europe fell by 57%, not unexpected given the state of the world economy. Gross profit rose to 38%, an improvement of 16% on 2022 and a level not seen since 2020.
The Company entered 2023 with bold plans to move into new premises by June, which it achieved with only a five-day pause in production. Grant's previous home in Shepreth was an owned building dating back from 1970's. The building sold in November 2023 generating a Profit on Sale of Assets of £665k. The decision to move from Shepreth to a new facility in Royston was based on two areas - the age, rising maintenance costs and unsuitability of the Shepreth building and the production efficiencies that could be gained from a bespoke production facility. The cost of moving to Royston has not been insignificant, but represents an investment in the future of the business that had been overdue. Costs include: The directors took further advantage of this year of change to reassess the employee base and right-size the Company putting it in the best position to take advantage when the world economy stabilises. Headcount reduced by 20% through both natural attrition and redundancies – incurring costs of £146k in 2023. However the ongoing positive impact from these redundancies for 2024 will be a reduction in overheads of £410k. Administrative expenses increased by £1.8m in the year, in line with budget, reflecting higher headcount going into 2023, increased sales and marketing effort and the addition of the Royston Facility running costs. The impact on Profit Before Tax was a movement of £1.11m, reducing Profit before tax to £11k. The subsidiaries had varied experiences: • Grant UK's move to Royston has continued to impact positively on the team, coupled with the permanent
adoption of the four-day week
• Grant US recruited two new heads, but did not manage to generate increased sales due to the economic
headwinds.
• Grant India performed well in the year, attaining their budget.
The move to Royston was initially funded by a mortgage which was repaid when the Shepreth site was sold for £2.5m. The funds from the sale were also used to settle the bank loan, pay £0.5m into the pension and pay for the remaining £2.1m fit out.
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
This manoeuvring of assets and liabilities means the Group finishes the year in a state of the art facility, no bank debt, a reduction in the pension liability and a cash balance of just under £1m. The pension deficit reduced to £0.7m from £1m per the FRS 102 valuation. This represented a decrease in deficit from the extra payment, the result of asset and liability management offset by a slight increase in the deficit due to economic influences. The Company continues to work on activities which will minimise the fluctuations caused by these external factors, however cannot fully remove the risk of movement in either direction.
Net assets held firm at £9.7m (2022: £10.2m).
Significant developments for our other associate companies were as follows:
•Biosan SIA (50% owned) in Latvia experienced an 18% decrease in turnover from 2022, reflecting the
negative impact from the war in Ukraine, with approximately 20% of their usual sales coming from Russia. All sales are fully sanctions-compliant
•Uniqsis Ltd (13% owned) the flow chemistry system business continues to generated profits each year.
•Eltek Ltd (50% owned) showed increased sales and generated a small profit in the year.
The principal risks and uncertainties facing the Group are as follows:
• Continued recession in fudning of pharma and biotech research - customers are delaying or reducing
investment in equipment. We are offsetting this by very active engagement with strategic accounts and
continuing to engage with cost-effective marketing tactics..
• Increased competition - this remains a significant risk to the company and work continues in enhancing
our competitive edge through improved delivery, best in class functionality and value for money pricing.
• Increased commodity prices and availability of components - this risk has receded with lower inflation but
we continue to be alert for unforeseen issues.
• Retaining the right number of good quality staff - we focus on developing career pathways for our existing
staff and providing the best value. The four-day working week has helped to some extent.
• Health and safety issues - these are regularly monitored and independently assessed. • Economic uncertainty - mitigation is to be improved by expanding the breadth of markets and territories in
which the company competes and continuing our natural hedging of currency wherever possible.
• Loss of key customers - we continue to monitor our key relationships and this will be further mitigated by
diversification.
• Investment in product development - project and product management processes are being improved to
ensure the best possible outcomes from development activities.
•War in Ukraine - this is impacting the European economy and general demand for products. Our joint
venture in Latvia, Biosan, have been greatly impacted, given their proximity to situation and with
approximately 20% of their sales previously being into Russia.
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
This report was approved by the board on 24 September 2024 and signed on its behalf.
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors present their report and the financial statements for the year ended 31 December 2023.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments 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 Group 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 the Group and to 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.
The loss for the year, after taxation, amounted to £11k (2022 - profit £1,059k).
The directors did not recommend the payment of a dividend in the year (2022: £Nil).
The directors who served during the year were:
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
There are a lot of exciting developments coming for Grant in 2024 and beyond. Projects started during 2022 and 2023 have paved the way for future growth and development of the company.
Our new facility is generating operational efficiencies through improved layouts and facilities. The site also allows room for future growth of the company. We are seeing this pay off in the size and type of projects that we can now attract. There is still huge market potential in the USA, and stock levels in our US warehouse are tuned to provide shorter lead times for customers. However, the US pharma-bio economy is in recession which has put the brakes on growth plans for now. Sales demand in the UK and Europe has again been slow for the first few months in 2024, but with strong focus on account management and marketing, we expect an increase in sales levels throughout the year. Projects are also starting to reduce the build costs for some of our core product groups, to maximise margins generated. Our Controlled Rate Freezer is now launched with additional functionality, and is starting to make headway in the market. We are working our way through the product portfolio refreshing look, feel and functionality and optimising the bill of materials where possible. Over the past three years we have reviewed every corner of the Grant Instruments Group, investing where necessary, optimising products and cost base wherever possible, ensuring that our employees are engaged, happy and healthy and positioning the Company in the most favourable position for the next stage in its life cycle. Whilst there is still more that can be done in this continuous improvement regime, the Company is in a great position to take advantage of whatever opportunities come our way.
The Company has an employee intranet site where company information is shared with all employees. This includes quarterly results and objectives for all departments.
There have been no significant events affecting the Group since the year end.
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Under section 487(2) of the Companies Act 2006, Price Bailey LLP were reappointed during the year and will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board on
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
We have audited the financial statements of Grant Instruments (Cambridge) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, 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).
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 United Kingdom, including the Financial Reporting Council'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.
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 or 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.
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GRANT INSTRUMENTS (CAMBRIDGE) LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
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 Directors' Report.
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GRANT INSTRUMENTS (CAMBRIDGE) LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks, and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the group and company. Our approach was as follows: • We considered the nature of the commercial activities undertaken and the business performance for the year and held discussions with management. • We obtained an understanding of the legal and regulatory requirements applicable to the group and company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, UK taxation legislation and Health and Safety. • We obtained an understanding of how the group and company complies with these requirements by discussions with management and those charged with governance. • We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance. • We inquired of management and those charged with governance as to any known instances of non- compliance or suspected non-compliance with laws and regulations. • We discussed during the audit engagement team briefing regarding how and where fraud might arise in the financial statements and any potential indication of fraud. We remained alert to any indication of fraud or non- compliance with laws and regulations throughout the audit. Based on this understanding, we designed specific appropriate audit procedures to identify instances of non- compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities 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 Auditors' Report.
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GRANT INSTRUMENTS (CAMBRIDGE) LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
Tennyson House
Cambridge Business Park
CB4 0WZ
Date:
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
REGISTERED NUMBER: 00658133
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
REGISTERED NUMBER: 00658133
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 24 September 2024.
The notes on pages 24 to 54 form part of these financial statements.
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
REGISTERED NUMBER: 00658133
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
REGISTERED NUMBER: 00658133
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 24 to 54 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (AS RESTATED)
FOR THE YEAR ENDED 31 DECEMBER 2022
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Grant Instruments (Cambridge) Limited is a private company limited by shares incorporated in England and Wales. The registered office is located at Evolution House Unit 2, Durham Way, Royston Gateway, Royston, Hertfordshire, SG8 5GX.
The principal activity of the company during the year was the manufacture, distribution and sale of thermostatic and agitative laboratory equipment and dataloggers, together with associated services, for Grant branded products and customer specific applications.
2.Accounting policies
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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3). The company's loss for the year was £8k (2022 - profit of £1,079k). The following principal accounting policies have been applied:
The company has taken advantage of the following disclosure exemptions in preparing the company's individual financial statements, as permitted by the FRS 102:
the requirements of Section 7 Statement of Cash Flows; the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d); the requirements of Section 11 Financial Instruments paragraphs 11.39 to 11.48A; the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.29; the requirements of Section 33 Related Party Disclosures paragraph 33.7. This information is included in the consolidated financial statements. The Company has taken advantage of the exemption contained within section 408 of the Companies Act 2006 not to present its own profit and loss account.
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form 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 Balance Sheet, 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.
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
The group reports a total comprehensive loss for the year of £530k (2022 - profit of £5,299k), net current assets of £3,348k (2022 - £3,838k) and net assets of £9,668k (2022 - £10,198k). The balance sheet position has deteriorated slightly during the year by £530k (2022 – improvement of £5,299k) made up in part by movements in the pension liability coupled with the results from the underlying trading performance from both the UK and overseas. The pension liability is not expected to crystallise in the foreseeable future. There were no outstanding bank loans at year end (2022 - £142k).
The group has had a good relationship with Barclays and the bank has been consistently supportive. The principal risks and uncertainties facing the business are outlined in the strategic report. The group has continued to be impacted by the instability in the global markets which is expected to have some further impact into 2024. However, costs are being carefully monitored and savings made where possible to preserve cash. The directors have prepared budgets and cash flow forecasts that include reduced sales forecasts and scheduled payments for the defined benefit pension scheme, and are confident the Group will have sufficient cash to continue as a going concern for at least 12 months from the date of approval of these financial statements. There is always an uncertainty when preparing business forecasts, and the directors recognise that the current economic conditions potentially increase the level of uncertainty when preparing cashflow and trading forecasts. However, given the current trading results of the business and the previous success of the business in adapting to revised working practices, the directors do not believe that uncertainty to be material or cast significant doubt over the Group's ability to continue to trade or meet its liabilities as they fall due. Accordingly, the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements. An associate is an entity, being neither a subsidiary nor a joint venture, in which the group holds a long-term interest and where the group has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate. The results of associates are accounted for using the equity method of accounting. Dividends received and receivable from participating interests are credited to the carrying value of the investment. In the consolidated accounts, interests in associated undertakings where significant influence is not exerted are held at cost less accumulated impairment losses. Any other investments are held at cost less accumulated impairment losses.
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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 profit or loss.
- the technical feasibility of completing the asset so that it is available for use; - its intention to complete the asset and use or sell it; - its ability to use or sell the asset; - that the developed asset will generate probably future economic benefits; - the availability of adequate technical, financial and other resources to complete the development and to use or sell the asset; and - its ability to measure reliably the expenditure attributable to the asset. Such capitalised costs are amortised over the period the Group expects to benefit from the asset (generally three years). Where these criteria are not met, research and development costs are expensed as incurred.
Page 27
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Group's Balance Sheet when the Group becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Page 28
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
Functional and presentation currency
Transactions and balances
Page 29
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Page 30
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Defined benefit pension plan
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Balance Sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the Balance Sheet date.
Page 31
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Critical judgements in applying the group's accounting policies: - Assessing whether the group controls or has significant influence over Eltek Limited and Biosan SA requires judgement. The group holds 50% voting rights in each company but does not have full control over the operating and financial policies of these entities. The group has directors on each board and has some input in the running of the companies. Accordingly, the directors believe the group has significant influence over these entities, but not control. Key accounting estimates and assumptions: The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year include: - The group has an obligation to pay pension benefits to certain employees as well as ex-employees. The cost of these benefits and the present value of the obligation depend on a number of factors including life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the statement of financial position. The assumptions represent historical experience and current trends. For details on the assumptions adopted, see note 26. - Estimation of provision for warranty claims in respect of products sold which are still under warranty at the end of the reporting period. Management estimates the related provision for future warranty claims based on historical warranty claim information as well as recent trends that might suggest that past cost information might differ from future claims. - Provision for slow moving and obsolete stock lines. Factors that could impact the estimate of the provision include future demand of the stock lines and changes in regulations that could impact the materials used in production of the stock items.
Page 33
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The whole of the turnover is attributable to the principal activity of the business.
Analysis of turnover by country of destination:
Page 34
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 35
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 36
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 37
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
11.Taxation (continued)
The unrecognised deferred tax balance at the balance sheet date is made up as follows:
Page 38
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 39
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
13.Intangible assets (continued)
Page 40
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Page 41
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Page 42
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 43
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 44
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 45
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 46
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 47
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 48
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 49
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Share premium account
Revaluation reserve
Capital redemption reserve
Foreign exchange reserve
Profit and loss account
Following a review by the directors during the year the comparative Consolidated Statement of Comprehensive Income has been restated to correctly show transactions with associates. This change has resulted in profit for the year decreasing from £1,338k to £1,059k and other comprehensive income increasing from £3,961k to £4,240k. The restatement has no impact on the overall net assets of the Group.
At 31 December 2023 the Group and Company had contracted for, but not provided in these financial statements for capital expenditure totalling £NIL (2022 - £1,462k).
Page 50
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The Group operates a Defined Benefit Pension Scheme.
The group operates a defined benefit pension scheme. The latest actuarial valuation of the scheme was carried out by a qualified independent actuary and issued on 2 February 2024 for the purpose of performing a valuation for FRS 102 accounting purposes.
The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £811k (2022: £301k). Scheme assets are stated at their market values at the respective dates. No assets included in the fair value of plan assets are the entity's own financial instruments or are properties occupied or used by the entity. The Group also operates a defined contribution pension scheme. The assets of this 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 £253k (2022: £256k). Contributions totalling £23k (2022: £19k) were payable to the fund at the balance sheet date and are included in creditors.
Page 51
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
26.Pension commitments (continued)
Page 52
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
26.Pension commitments (continued)
Page 53
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GRANT INSTRUMENTS (CAMBRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
In the opinion of the directors, there is no overall controlling party.
Page 54
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