Company registration number 04933374 (England and Wales)
INTEC MICROSYSTEMS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
INTEC MICROSYSTEMS LTD
COMPANY INFORMATION
Directors
S Hall
(Appointed 7 July 2023)
J Lester
(Appointed 7 July 2023)
A Russell
(Appointed 7 July 2023)
I Whatton
(Appointed 7 July 2023)
R Woodcock
(Appointed 7 July 2023)
Company number
04933374
Registered office
C/O UHY Hacker Young
St James' Building
79 Oxford Street
Manchester
M1 6HT
Auditor
UHY Hacker Young Manchester LLP
St James Building
79 Oxford Street
Manchester
M1 6HT
Business address
Units 5-7 Leaford Way
Leaford Road
Kitts Green
Birmingham
B33 9TX
INTEC MICROSYSTEMS LTD
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 8
Independent auditor's report
9 - 12
Statement of comprehensive income
13
Balance sheet
14
Statement of changes in equity
15
Notes to the financial statements
16 - 29
INTEC MICROSYSTEMS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Review of the business and future developments

Intec Microsystems has focused largely on Sales and Product Range diversification during 2023. Similarly, to the last few years, a continued focus has been placed on working with a wide range of new and different vendors and manufacturers in order to broaden the portfolio of products that could be offered to customers. Developing stronger partnerships that allow us to enhance and modernise our offerings is an ongoing drive and real focus for the business. Intec continues its goal to be as wide-ranging an IT Distributor as possible offering the best products and customer service it can.

System development has continued across the business to maintain strong IT product analysis and to try and really streamline, to make the business as efficient as possible. During 2023 and progressing into 2024 has seen Intec focus its efforts on planning around the online and Ecommerce IT channel as the Company looks to adapt to the opportunities in the ecommerce market.

On 7 July 2023 100% of the issued share capital of Intec Microsystems Limited was acquired by the Private Equity Firm Chiltern Capital Nominees Limited. The current management team have remained invested in the ongoing project and are as committed as ever to the Business.

The Company continued during the year to focus on the key Management's objectives which are to:

 

The Company’s Board has and will continue to evolve and review the strategic goals of the organisation with a vision Intec will do distribution differently in the UK with a differentiated focus on Tier 2 vendor growth, providing new product set and solution in to the Top 50 VAR’s and continuing to develop deep relationships with both current and developing MPS partners. Behind this vision there are a range of initiatives spanning technology, vendor growth with existing and new partners and ensuring the business has a talented and motivated workforce. Intec strives to offer real focus and support to Vendor Partners and customers to be able to enjoy a mutually beneficial growth journey.

Future Developments

In looking to the future, development plans include continued organic growth from IT distribution. Intec continues to explore more opportunities with established and newly up and coming vendors, who Intec can partner with to share a journey of progression. Other plans for the business focus largely on the expansion of engineering, technical, warranty and support services which go hand in hand with the ever-widening product portfolio on offer. Ecommerce, automation and increased efficiency will also be huge areas for Intec as the business moves with the times to ensure they can offer a wide range of facilities in the ever-changing IT sector. Customers and our relationships we value, along with our reputation of exemplary customer service will always remain at the forefront of our thoughts.  

 

Key elements of our strategic roadmap are noted below:

 

 

 

- 1 -
INTEC MICROSYSTEMS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Principal risks and uncertainties

The Company’s board reviews the risks facing the Company on a weekly basis and work to mitigate risks. Processes are designed to identify, mitigate and manage the risk and the ultimate responsibility for risk management is owned by the Executive Board. The principal risks facing the business and the key controls in place to mitigate are as follows:

Business performance risk: Business performance risk is the risk that the company may not perform as expected either due to internal factors or due to competitive pressures in the market in which they operate.  This risk is managed through several measures: ensuring the appropriate management team is in place; budget and business planning; monthly reporting and variance analysis; financial controls; key performance indicators; and regular forecasting; product and stock price management.

 

Retention of key functional and technical skills: The Company is committed to an investment programme in both onboarding and subsequent training and evaluation of all its employees and recognises the importance of this critical stakeholder relationship. Long term growth of the business depends on the company’s ability to retain and attract personnel of high quality. This risk is managed through development and training plans which are regularly reviewed and updated. These are accompanied by specific policies in areas such as training, management development and performance management.

 

Business continuity risk: Business continuity risk planning is regarded with significant importance to the managers and director.  A business continuity plan has been drawn up (and subject to periodic review) to ensure supply can be met in the event of a significant negative impact on the business.

 

Health and safety risk: The company is committed to ensuring a safe working environment.  The risks arising from inadequate management of health and safety matters are the exposure of employees and third parties to the risk of injury, potential liability and/or loss of reputation.  These risks are managed by the company through the strong promotion of a health and safety culture, and well-defined health and safety policies. Quality processes are managed via our ISO 9001 accreditation and framework.

 

Financial and business control: Strong financial and business controls are necessary to ensure the integrity and reliability of financial and other information on which the company relies for day-to-day operations, external reporting and for longer term planning. The company exercises financial and business control through a combination of qualified and experienced financial teams; performance analysis; budgeting and cash flow forecasting; and clearly defined approval limits. The external auditors provide advice on specific accounting and tax issues as they arise.

 

Social, ethical and environmental risk: Due to the company’s nature and size no significant social, ethical or environmental risks have been identified by the management.

 

Data Protection and Cyber Security: The current IT strategy for Intec involves continuing the focus on cyber security by ensuring we have the best tools in place to protect against modern day threats. Our implementation of employee security awareness training and advanced impersonation protection via email during the first half of 2024 has improved our posture. Further improvements have been made around general network management and performance by the replacement of all network switches over 5 years old. Also new wireless access points have been installed across the site to improve employee and guest performance on the WiFi

 

Regulatory Compliance: The Company is subject to a range of industry specific regulations which could expose the company to risks from a failure to comply with relevant codes of practice, law or regulation. Failure to comply could result in fines, cessation of some business activities and/or public reprimand. This risk is mitigated through close monitoring of regulatory compliance and ongoing training.

 

- 2 -
INTEC MICROSYSTEMS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Financial performance

The director has determined that the following financial key performance indicators (KPIs) based on continuing activities, are the most effective measure of progress towards achieving the company's objectives:

 

2023 2022

Turnover         £70,721,900 £74,814,675

Operating (loss)/profit     (£1,601,805) £2,103,500

 

Restructure and development costs

During the year certain costs were incurred post-acquisition that, whilst directly connected with the company's operations were not recurring in nature. It was therefore deemed necessary for the understanding of the financial statements to analyse these costs separately on the face of the Statement of Comprehensive Income. A breakdown of the costs can be found in Note 4.

Key performance indicators

In addition to the above results, the company is managed using extensive KPI’s at both a business and operational level with regular reviews held weekly and monthly executive board reviews. The following are a list of the key KPI’s in operation.

Promoting the success of the company

The board of Intec Microsystems Limited consider that they have acted in good faith and in a manner likely to promote the success of the company for the benefit of all its members (having regard to the stakeholders and matters set out in s172(1)(a)-(f) of the Companies Act 2006) in the decisions taken during the year ended 31 December 2023. Our primary considerations and decisions are designed to have a long-term beneficial impact on the company and one that focuses on delivering high quality service across all components of the business.

 

Fundamental to the ultimate success and delivery of this service are our team members. The health, safety and well-being of our team members is one of our primary considerations in the way we conduct business. We aim to be a responsible employer in our approach to the pay and benefits our team members receive. We believe part of the key to our success is the way in which we engage with suppliers and our customers. We meet and have regular dialogue with our commercial partners throughout the year. We constantly review certain key areas to prevent involvement in modern slavery, corruption, bribery and breaches of competition law.

 

On a wider scale, we take into account the impact of the company’s operations on the community and environment as our social responsibilities – in particular how we comply with environmental legislation. At every opportunity we pursue waste-savings and react promptly to local community concerns.

 

The board is felt to behave responsibly and ensure that management operate in an equally responsible manner. The company operates within high standards of ethics, business conduct and sound governance expected for a business such as ours. In doing so we will contribute to the delivery of our plans to meet and exceed our expectations and nurture our excellent reputation.

 

It is the boards, intention to behave responsibly towards our shareholders, treating them both fairly and equally, so that they may benefit from the success of the business.

- 3 -
INTEC MICROSYSTEMS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Business Ethos

An ongoing priority of the business will be to consolidate our position by providing a total customer experience from the initial sales process through to customer service, support and satisfaction. We will continue our comprehensive training and coaching programs in order to further support our aims in providing a great customer experience for all our customers.

 

Engagement with suppliers, customers

We will continue to maintain and strengthen relationships with our manufacturer, customers and suppliers through this trying and uncertain period. We will adapt to change where we have to and work to a “new normal” months ahead.

On behalf of the board

.............................................
A Russell
Director
Date: 25 September 2024
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INTEC MICROSYSTEMS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The company's principal activity during the year continued to be that of wholesale computer hardware supply.

Results and dividends

The results for the year are set out on page 13.

Ordinary dividends were paid amounting to £280,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

D Leather
(Resigned 7 July 2023)
A Cantwell
(Appointed 7 July 2023 and resigned 23 January 2024)
S Hall
(Appointed 7 July 2023)
J Lester
(Appointed 7 July 2023)
A Russell
(Appointed 7 July 2023)
I Whatton
(Appointed 7 July 2023)
R Woodcock
(Appointed 7 July 2023)
J Bennett
(Appointed 7 July 2023 and resigned 10 July 2023)
Qualifying third party indemnity provisions

As permitted by the Articles of Association, the directors have the benefit of a Directors and Officers liability insurance, which is a qualifying third-party indemnity provision as defined by Section 34 of the Companies Act 2006. The insurance does not provide cover where the person has acted fraudulently or dishonestly.

Financial instruments
Liquidity risk

The company’s liquidity requirement for a day-to day operating cash flow continues to be supported by Secure Trust Bank Asset Based £19m Lending Facility executed in July 2023 and provide full facility cover through to December 2025. The facility is based on receivables and inventory which provides significant headroom during the working capital cycle supporting on time payments to our suppliers

Foreign currency risk

The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from its trading activities which are conducted primarily in sterling, US Dollars and Euros. The company is exposed to changes in the price of commodities used for manufacture and also changes in the exchange rates it trades in. The company does not enter into any complex financial instruments or forwards as hedging transactions to mitigate these risks

Credit risk

Credit risk arises principally on direct sales to customers. Company policy is aimed at minimising such risk and requires that deferred terms are granted only to customers who demonstrate an appropriate payment history and satisfy creditworthiness procedures. Credit Insurance is also used to protect the business. Individual exposures are monitored with customers subject to credit limits to ensure that the company’s exposure to bad debts is not significant. In addition, the CFO conducts a weekly review of all overdue debt. Accounts overdue are put on credit hold and timely legal action is taken to ensure full debt collection.

- 5 -
INTEC MICROSYSTEMS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Business relationships

Engagement with our stakeholders

The Board seeks to understand the respective interests of key stakeholder groups so that these may be properly considered in the Board’s decisions. As part of its ongoing engagement with its key stakeholder the directors have undertaken the following activities

Shareholders

Our ultimate shareholder is Chiltern Capital Nominees Limited which is a proactive and supportive investor in small and medium sized businesses. Intec's Board meet and present monthly the Health and Safety, financial and commercial performances and discuss the strategic roadmap alongside acquisitive opportunities. In addition, the Shareholder has a permanent representative on the Executive Board which provides excellent support on both key projects and strategic value creation initiatives.

Employees

Fundamental to the ultimate success and delivery of our service is our team members. The health, safety and mental wellbeing of our workforce is our primary consideration in the way we conduct our business. We aim to be a responsible employer in our approach to the pay and benefits our employees receive.

Vendors

The Company continues to focus heavily on its supply chain and procurement function carrying out quarterly reviews with our key partners to drive continuous improvement and in return we strive to abide by the payment terms agreed with suppliers in full support of the code of Payment Practices Reporting. We constantly review certain key areas of the supply chain to prevent involvement in modern slavery, corruption, infringement, bribery and breaches of competition law.

Customers

Key to our success is how we engage with our customers, and we meet and have regular dialogue with our commercial partners through the year to gain a full understanding of the market and their needs. An ongoing priority of the business to consolidate our position in the market is to provide a total customer experience from the initial sales process through to customer service, support and satisfaction. We continue, with the support of our vendor partners, to invest in comprehensive training and coaching programs to provide a first-class experience for all our customers.

Environment, Sustainability and Communities

On a wider scale we take into account the impact of the company operations on the community and environment as our social responsibilities, in particular how we comply with environmental legislation. At every opportunity we pursue waste savings and react promptly to our local community concerns. We will continue to recognise our Duty of Care towards the environment and place extreme importance on complying with both legal and moral obligations towards the environment and our local community.

Auditor

The auditor, UHY Hacker Young Manchester LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

This section includes our mandatory reporting of energy and greenhouse gas emissions for the period 1 January 2023 to 31 December 2023, pursuant to the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, implementing the government’s Streamlined Energy and Carbon Reporting (SECR) policy.

The table below includes total energy consumption (reported as kWh) and greenhouse gas emissions for the sources required by the regulations, along with our intensity ratio.

- 6 -
INTEC MICROSYSTEMS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2023
2022
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
148,509
142,779
2023
2022
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
1.70
2.00
- Fuel consumed for owned transport
1.70
-
3.40
2.00
Scope 2 - indirect emissions
- Electricity purchased
27.50
26.00
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
-
-
Total gross emissions
30.90
28.00
Intensity ratio
Tonnes CO2e / Turnover £1m
0.4
0.4
Quantification and reporting methodology

Our methodology to calculate our greenhouse gas emissions is based on the 'Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance (March 2019)’ issued by DEFRA, using DEFRA's 2021 and 2022 conversion factors as appropriate. In some cases, consumption has been extrapolated from available data or direct comparison made to a comparable period.

We report using a financial control approach to define our organisational boundary. We have reported all material emission sources required by the regulations for which we deem ourselves to be responsible and have maintained records of all source data and calculations.

Intensity measurement

The intensity ratio chosen was tCO2e per £million turnover. This was chosen as it was deemed to be the best metric which could be constantly used over time and would best reflect changes in our energy consumption, but also reflect changes in our operations.

Measures taken to improve energy efficiency

During the reporting period, no new energy efficiency actions have been taken however, our energy management programme is ongoing, including monitoring and targeted reporting of energy consumption on a daily basis at all sites. The energy management programme we run enables us to identify and address any consumption issues as and when they arrive, allowing us to eliminate unnecessary energy waste.

- 7 -
INTEC MICROSYSTEMS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Statement of directors' responsibilities

The directors are responsible for preparing the annual report 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:

 

 

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.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

On behalf of the board
..............................................
A Russell
Director
Date: 25 September 2024
- 8 -
INTEC MICROSYSTEMS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INTEC MICROSYSTEMS LTD
Opinion
- 9 -

We have audited the financial statements of Intec Microsystems Ltd (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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:

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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

INTEC MICROSYSTEMS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INTEC MICROSYSTEMS LTD
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 directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is 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.

Auditor's 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 an auditor's 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 financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud

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.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non- compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance including the design of the company’s remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;

- results of our enquiries of management about their own identification and assessment of the risks of irregularities;

- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and

- the matters discussed among the audit engagement team regarding how and where fraud might occur in the Financial Statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

- 10 -
INTEC MICROSYSTEMS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INTEC MICROSYSTEMS LTD

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the Financial Statements. The key laws and regulations we considered in this context included the UK Companies Act, pensions legislation and tax legislation in all relevant jurisdictions where the company operates.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the Financial Statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

In addition to the above, our procedures to respond to risks identified included the following:

• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the Financial Statements;

• enquiring of management concerning actual and potential litigation and claims;

• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

• reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and

• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non- detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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INTEC MICROSYSTEMS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INTEC MICROSYSTEMS LTD

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 an auditor's 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.

Paul Daly BEng FCA
Senior Statutory Auditor
For and on behalf of UHY Hacker Young Manchester LLP
Date: 25 September 2024
Chartered Accountants
Statutory Auditor
St James Building
79 Oxford Street
Manchester
M1 6HT
- 12 -
INTEC MICROSYSTEMS LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
2023
2022
Notes
£
£
Turnover
3
70,721,900
74,814,675
Cost of sales
(65,432,345)
(67,138,498)
Gross profit
5,289,555
7,676,177
Administrative expenses
(6,339,611)
(5,966,672)
Other operating income
720,512
393,995
Restructure and development costs
4
(1,272,261)
-
0
Operating (loss)/profit
5
(1,601,805)
2,103,500
Interest receivable and similar income
8
16,491
3,755
Interest payable and similar expenses
9
(544,966)
(153,671)
(Loss)/profit before taxation
(2,130,280)
1,953,584
Tax on (loss)/profit
10
334,250
(248,645)
(Loss)/profit for the financial year
(1,796,030)
1,704,939

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

- 13 -
INTEC MICROSYSTEMS LTD
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
317,010
350,290
Current assets
Stocks
13
6,751,980
8,182,765
Debtors
14
14,460,827
12,709,212
Cash at bank and in hand
1,599,388
849,966
22,812,195
21,741,943
Creditors: amounts falling due within one year
15
(14,766,601)
(11,650,505)
Net current assets
8,045,594
10,091,438
Total assets less current liabilities
8,362,604
10,441,728
Provisions for liabilities
Deferred tax liability
16
-
0
3,094
-
(3,094)
Net assets
8,362,604
10,438,634
Capital and reserves
Called up share capital
20
2,099
1,805
Share premium account
21
101,872
-
0
Other reserves
18
-
0
102,166
Profit and loss reserves
22
8,258,633
10,334,663
Total equity
8,362,604
10,438,634
The financial statements were approved by the board of directors and authorised for issue on 25 September 2024 and are signed on its behalf by:
..............................................
A Russell
Director
Company registration number 04933374 (England and Wales)
- 14 -
INTEC MICROSYSTEMS LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
Share capital
Share premium account
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
1,805
-
0
87,673
9,039,724
9,129,202
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
1,704,939
1,704,939
Dividends
11
-
-
-
(410,000)
(410,000)
Transfers
-
-
14,493
-
0
14,493
Balance at 31 December 2022
1,805
-
0
102,166
10,334,663
10,438,634
Year ended 31 December 2023:
Loss and total comprehensive income
-
-
-
(1,796,030)
(1,796,030)
Issue of share capital
20
294
101,872
-
-
102,166
Dividends
11
-
-
-
(280,000)
(280,000)
Other movements
-
-
(102,166)
-
(102,166)
Balance at 31 December 2023
2,099
101,872
-
8,258,633
8,362,604
- 15 -
INTEC MICROSYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
Company information

Intec Microsystems Ltd is a private company limited by shares incorporated in England and Wales. The registered office is C/O UHY Hacker Young, St James' Building, 79 Oxford Street, Manchester, M1 6HT.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Eris Topco Limited. These consolidated financial statements are available from its registered office, C/O UHY Hacker Young, St James' Building, 79 Oxford Street, Manchester, M1 6HT.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover
- 16 -

Turnover is stated net of VAT and trade discounts and is recognised when the significant risks and rewards are considered to have been transferred to the buyer.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

INTEC MICROSYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
50 years straight line
Leasehold improvements
8 years straight line
Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.6
Stocks
- 17 -

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

INTEC MICROSYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

- 18 -
INTEC MICROSYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

- 19 -
INTEC MICROSYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

 

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

1.14
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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

Amounts due from lessees under finance leases are recognised as receivables at the amount of the company’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the company’s net investment outstanding in respect of leases.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

- 20 -
INTEC MICROSYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
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.

Critical judgements

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

Provision for slow moving and obsolete stock

The company reviews its inventory to assess for potential loss on account of obsolescence on a regular basis. In determining whether provision for obsolescence should be recorded in the profit or loss, the company makes judgments as to whether there is any observable data indicating that there is any future saleability of the product and the estimated net realisable value for such product. Accordingly, provision for impairment is made where the net realisable value is anticipated to be less than the cost based on best estimates by the management. The provision for obsolescence of inventory is based on the aged profile of the stock. The provision for obsolete inventory in the current year is £520,026.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sale of goods
70,721,900
74,814,675
2023
2022
£
£
Turnover analysed by geographical market
UK
63,227,483
65,501,395
Europe
7,172,236
8,193,365
Rest of the world
322,181
1,119,915
70,721,900
74,814,675
2023
2022
£
£
Other revenue
Interest income
16,491
3,755
- 21 -
INTEC MICROSYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
4
Restructure and development costs
2023
2022
£
£
Restructure and development costs
1,272,261
-

During the year certain costs were incurred post acquisition that, whilst directly connected with the company's operations were not recurring in nature. It was therefore deemed necessary for the understanding of the financial statements to analyse these costs separately.

 

These costs comprise one off post deal related fees totalling £391,665, one off inventory adjustments reflecting current market conditions totalling £637,389 and IT development expenditures totalling £243,207.

5
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging:
£
£
Exchange losses
97,687
38,375
Fees payable to the company's auditor for the audit of the company's financial statements
21,957
38,117
Depreciation of owned tangible fixed assets
48,369
52,910
Share-based payments
-
14,493
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Administration
66
64
Development
3
1
Total
69
65

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,367,605
3,638,711
Social security costs
365,493
392,590
Pension costs
66,476
66,836
3,799,574
4,098,137
- 22 -
INTEC MICROSYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
429,191
8,576
Company pension contributions to defined contribution schemes
4,183
-
433,374
8,576

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 6 (2022 - 0).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
90,503
-
Company pension contributions to defined contribution schemes
660
-
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
16,491
3,755
9
Interest payable and similar expenses
2023
2022
£
£
Interest on invoice finance arrangements
543,745
152,091
Other interest
1,221
1,580
544,966
153,671
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
307,167
Adjustments in respect of prior periods
(307,167)
(48,501)
Total current tax
(307,167)
258,666
- 23 -
INTEC MICROSYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
(27,083)
(10,021)
Total tax (credit)/charge
(334,250)
248,645

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
(Loss)/profit before taxation
(2,130,280)
1,953,584
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
(501,042)
371,181
Tax effect of expenses that are not deductible in determining taxable profit
71,537
4,130
Adjustments in respect of prior years
(307,167)
-
0
Group relief
10,174
-
0
Permanent capital allowances in excess of depreciation
-
0
(746)
Research and development tax credit
-
0
(76,108)
Change in opening and closing deferred tax rates
-
0
(2,754)
Other adjustments
5,909
1,443
Net adjustment in respect of prior periods
-
0
(48,501)
Losses carried back
386,339
-
0
Taxation (credit)/charge for the year
(334,250)
248,645

The applicable tax rate for the current year is 23.52% (2022 - 19%). An increase to 25% (effective 1 April 2023) was enacted on 24 May 2021 and deferred tax at the balance sheet date has been measured using rates between 19% and 25% depending on the anticipated timing of the reversal.

11
Dividends
2023
2022
£
£
Final paid
280,000
410,000
- 24 -
INTEC MICROSYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Tangible fixed assets
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
£
Cost
At 1 January 2023
260,929
323,618
291,669
102,187
978,403
Additions
-
0
-
0
15,089
-
0
15,089
Disposals
-
0
(136,690)
-
0
-
0
(136,690)
At 31 December 2023
260,929
186,928
306,758
102,187
856,802
Depreciation and impairment
At 1 January 2023
53,491
254,322
223,360
96,940
628,113
Depreciation charged in the year
5,218
23,366
18,474
1,311
48,369
Eliminated in respect of disposals
-
0
(136,690)
-
0
-
0
(136,690)
At 31 December 2023
58,709
140,998
241,834
98,251
539,792
Carrying amount
At 31 December 2023
202,220
45,930
64,924
3,936
317,010
At 31 December 2022
207,438
69,296
68,309
5,247
350,290

 

13
Stocks
2023
2022
£
£
Finished goods and goods for resale
6,751,980
8,182,765
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
8,274,130
10,889,546
Corporation tax recoverable
300,206
-
0
Amounts owed by group undertakings
5,376,594
-
0
Other debtors
39,214
1,694,825
Prepayments and accrued income
446,694
124,841
14,436,838
12,709,212
- 25 -
INTEC MICROSYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Debtors
(Continued)
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 16)
23,989
-
0
Total debtors
14,460,827
12,709,212
15
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
5,288,098
4,840,119
Amounts owed to group undertakings
378,001
-
0
Corporation tax
-
0
265,210
Other taxation and social security
316,711
1,612,410
Other creditors
8,425,475
4,782,154
Accruals and deferred income
358,316
150,612
14,766,601
11,650,505

Other creditors includes an invoice discounting facility totalling £7,953,945 (2022: £2,903,107) which is secured by way of the trade debtors to which they relate.

16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Balances:
£
£
£
£
Accelerated capital allowances
-
3,094
-
-
Tax losses
-
-
23,989
-
-
3,094
23,989
-
2023
Movements in the year:
£
Liability at 1 January 2023
3,094
Credit to profit or loss
(27,083)
Asset at 31 December 2023
(23,989)
- 26 -
INTEC MICROSYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
66,476
66,836

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

18
Share based payment reserve
2023
2022
£
£
At the beginning of the year
102,166
87,673
Additions
-
14,493
Exercise of share options
(102,166)
-
At the end of the year
-
102,166

 

19
Share-based payment transactions

The company was operating a share option scheme. Options had been granted over 294 ordinary shares in the company and as at 1 January 2023 these options were valued at £102,166. On the 7 July 2023 the option holders simultaneously exercised their options and sold the shares to the new parent company.

20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
-
1,805
-
1,805
Ordinary shares of £1 each
2,099
-
2,099
-
2,099
1,805
2,099
1,805

On 7 July 2023 the company issued 294 Ordinary C shares, after which the company then passed an ordinary resolution re-designating the existing shares into 2,099 Ordinary shares.

21
Share premium account
2023
2022
£
£
Issue of new shares
101,872
-
0
At the end of the year
101,872
-
0
- 27 -
INTEC MICROSYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
22
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
10,334,663
9,039,724
(Loss)/profit for the year
(1,796,030)
1,704,939
Dividends declared and paid in the year
(280,000)
(410,000)
At the end of the year
8,258,633
10,334,663

The profit and loss account includes all current and prior period retained profits and losses, net of dividends paid.

23
Operating lease commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
317,088
286,608
Between two and five years
819,144
656,340
1,136,232
942,948
- 28 -
INTEC MICROSYSTEMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
23
Operating lease commitments
(Continued)
Lessor

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

2023
2022
£
£
Within one year
53,304
-
0
Between two and five years
137,702
-
0
191,006
-
0
25
Directors' transactions

Dividends totalling £280,000 (2022 - £410,000) were paid in the year in respect of shares held by the company's directors.

26
Ultimate controlling party

The parent company of Intec Microsystems Limited is Eris Bidco Limited and its registered office is C/O UHY Hacker Young, St James' Building, 79 Oxford Street, Manchester, M1 6HT.

The ultimate parent company is Eris Topco Limited and its registered office is C/O UHY Hacker Young, St James' Building, 79 Oxford Street, Manchester, M1 6HT.

 

 

- 29 -
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