Company registration number 02128323 (England and Wales)
ASTEELFLASH (BEDFORD) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ASTEELFLASH (BEDFORD) LIMITED
COMPANY INFORMATION
Directors
Andrew Buss
Nicolas Denis
(Appointed 12 December 2023)
Felix Timmerrmann
Xinyu Wu
(Appointed 12 December 2023)
Company number
02128323
Registered office
Units 1 & 2
St Martins Business Centre
St Martins Way
Bedford
MK42 0LF
Accountants
ZMS Solutions Limited
17 Shirwell Crescent
Furzton Lake
Milton Keynes
MK4 1GA
ASTEELFLASH (BEDFORD) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Income statement
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24
ASTEELFLASH (BEDFORD) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

Asteelflash (Bedford) Ltd continued to operate as a supplier of Electronics manufacturing services in low and medium volume to customers across multiple market segments.

 

The company’s vision is recognised by our customers as their go to proactive EMS partner, continuously seeking competitiveness and operational excellence in quality, agility and innovation whilst growing our revenue with these and new customers.

 

This is achieved through meeting the standards of our customers and the requirements of the latest revisions of our quality accreditations, ISO9001, AS9100 and IATF16949 which were all successfully re-certified in the first half of 2023.These are maintained as part of our strategic business plan.

 

A significant proportion of Asteelflash business is in the industrial sector but we focus growing in both the Aerospace and Defence and Automotive sectors.

Principal risks and uncertainties

The electronic component market conditions remained challenging although improved in 2023. We continued to encourage our customers to place firm orders as early possible to mitigate these risks but shortages remained for some key components, inventories therefore being at a high level in the first half of the year before reducing in Q3 and Q4.

 

As the supply chain continues to ease, customers were less inclined to place orders early and forward visibility has deteriorated, returning to pre-pandemic levels.

 

Customers’ demand in the first half of 2023 continued at similar levels as 2022, increasing rapidly in Q3. Demand then dropped back to expected level in Q4.

 

The ongoing issue of recruitment caused by Brexit had eased and we were able to ensure sufficient temporary staff recruitment to cope with the increased demand in Q3.

 

Overall Bedford production sales for the year were significantly increased compared to 2022 although a slight reduction is expected in 2024 as demand softens again.

 

To mitigate the higher level of inventory, we worked proactively with your key customers to secure payment on account of order as to support the cost of this inventory. This in turn ensures our customers are able to meet their delivery commitments.

 

The company continued its capital investment with general improvements to the production areas, offices and reception area along with a new CCTV security system. Air condition units were upgraded for improved efficiency, removing old R22 refrigerant systems.

Key performance indicators

Total revenue was £21,924k, an increase on the previous year of £2,424k. More significantly however, Bedford production revenue was £18,682k an increase of £6,150k on the previous year.

ASTEELFLASH (BEDFORD) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Other performance indicators

The business continued to exceed its targets for OTD and quality set by our customers as well as our internal metrics.

 

Under our commitment to sustainability, the company kept looking at ways of improving its environmental and EH&S performance. We continued our program of replacing all lights with LEDs and air condition units were upgraded for better efficiency and removal of R22 gas.

 

ISO45001 accreditation was achieved in March in line with our plans.

 

Despite issues with recruitment, employee levels increased from 92 to 114 personnel to support the higher level of onsite production. Employee retention continued to be good.

On behalf of the board

Andrew Buss
Director
25 September 2024
ASTEELFLASH (BEDFORD) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the company continued to be that of the manufacture and supply of electronic assemblies.

Results and dividends

The results for the year are set out on page 8.

The Company has paid no dividends in the year (2022: £nil). A dividend of £nil is proposed by the directors.

Directors

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

Andrew Buss
Nicolas Denis
(Appointed 12 December 2023)
Felix Timmerrmann
Xinyu Wu
(Appointed 12 December 2023)
Gilles Benhamou
(Resigned 1 December 2023)
Jeh-Chang Lee
(Resigned 1 December 2023)
Auditor

The auditor, ZMS Solutions Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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.

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.

ASTEELFLASH (BEDFORD) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Going Concern

The Group, to which the Company belongs, have considerable financial resources together with established products and customer base. Consequently, the directors believe that the Company is well placed to manage its business risks successfully.

After making enquiries and reviewing forecasts for a period of at least 12 months from the approval of these financial statements, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

On behalf of the board
Andrew Buss
Director
25 September 2024
2024-09-25
ASTEELFLASH (BEDFORD) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ASTEELFLASH (BEDFORD) LIMITED
- 5 -
Opinion

We have audited the financial statements of Asteelflash (Bedford) Limited (the 'company') for the year ended 31 December 2023 which comprise the income statement, the statement of financial position, 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 101 Reduced Disclosure Framework (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:

ASTEELFLASH (BEDFORD) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ASTEELFLASH (BEDFORD) LIMITED (CONTINUED)
- 6 -
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, is detailed below.

Extent to which the audit was considered capable of detecting irregularities, including fraud

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

Audit response to risks identified

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

ASTEELFLASH (BEDFORD) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ASTEELFLASH (BEDFORD) LIMITED (CONTINUED)
- 7 -

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

 

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.

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.

Asgher Sultan (Senior Statutory Auditor)
For and on behalf of ZMS Solutions Limited
25 September 2024
Chartered Certified Accountants
Statutory Auditor
17 Shirwell Crescent
Furzton Lake
Milton Keynes
MK4 1GA
ASTEELFLASH (BEDFORD) LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Revenue
3
21,924,409
19,500,829
Cost of sales
(14,058,929)
(14,187,441)
Gross profit
7,865,480
5,313,388
Administrative expenses
(6,202,022)
(5,447,802)
Operating profit/(loss)
4
1,663,458
(134,414)
Investment income
8
3,359
1,186
Finance costs
9
(257,649)
(105,288)
Other gains and losses
10
26,355
-
0
Profit/(loss) before taxation
1,435,523
(238,516)
Tax on profit/(loss)
11
(343,795)
120,466
Profit/(loss) and total comprehensive income for the financial year
1,091,728
(118,050)
ASTEELFLASH (BEDFORD) LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Non-current assets
Intangible assets
12
847,059
1,141,616
Property, plant and equipment
13
1,228,585
1,216,381
2,075,644
2,357,997
Current assets
Inventories
14
7,082,282
7,278,338
Trade and other receivables
15
6,753,110
4,758,683
Cash and cash equivalents
2,055,209
1,539,925
15,890,601
13,576,946
Current liabilities
16
(10,169,765)
(9,161,547)
Net current assets
5,720,836
4,415,399
Total assets less current liabilities
7,796,480
6,773,396
Non-current liabilities
16
(4,128,990)
(4,451,666)
Provisions for liabilities
Other provisions
19
(240,472)
13,560
Net assets
3,427,018
2,335,290
Equity
Called up share capital
21
52,631
52,631
Retained earnings
3,374,387
2,282,659
Total equity
3,427,018
2,335,290
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:
Andrew Buss
Director
Company registration number 02128323 (England and Wales)
ASTEELFLASH (BEDFORD) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2022
52,631
2,400,709
2,453,340
Year ended 31 December 2022:
Loss and total comprehensive income
-
(118,050)
(118,050)
Balance at 31 December 2022
52,631
2,282,659
2,335,290
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,091,728
1,091,728
Balance at 31 December 2023
52,631
3,374,387
3,427,018
ASTEELFLASH (BEDFORD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

Asteelflash (Bedford) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Units 1 & 2, St Martins Business Centre, St Martins Way, Bedford, MK42 0LF. The company's principal activities and nature of its operations are disclosed in the directors' report.

1.1
Accounting convention

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.

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.

As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:

Where required, equivalent disclosures are given in the group accounts of Financiere AFG. The group accounts of Financiere AFG are available to the public and can be obtained from 6, rue Van Gogh, 9360, Neuilly Plaisance, France.

1.2
Going concern

The directors have at the time of approving the financial statements, a reasonable expectation that the truecompany 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
Revenue

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognises revenue when it transfers control of a product or service to a customer.

The company recognises revenue from the following major sources:

1.4
Intangible assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

 

Amortisation 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:

ASTEELFLASH (BEDFORD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.5
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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 improvements
over the period of the lease of over the useful life of the detachable fixture up to a maximum of 10 years
Fixtures and fittings
straight line over 5 years
Plant and equipment
at varying rates on cost
Computers
straight line over 5 years
Motor vehicles
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 recognised in the income statement.

1.6
Impairment of tangible and intangible assets

At each reporting end date, the company reviews the carrying amounts of its tangible and intangible 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

 

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Inventories

Inventories 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 inventories to their present location and condition.

 

Inventories held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

ASTEELFLASH (BEDFORD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.8
Cash and cash equivalents

Cash and cash equivalents 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.

1.9
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets at fair value through profit or loss

When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.

Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Financial assets at fair value through other comprehensive income

Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

 

A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.

ASTEELFLASH (BEDFORD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -

The company has made an irrevocable election to recognize changes in fair value of investments in equity instruments through other comprehensive income, not through profit or loss. A gain or loss from fair value changes will be shown in other comprehensive income and will not be reclassified subsequently to profit or loss. Equity instruments measured at fair value through other comprehensive income are recognized initially at fair value plus transaction cost directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognized through other comprehensive income are directly transferred to retained earnings when the equity instrument is derecognized or its fair value substantially decreased. Dividends are recognized as finance income in profit or loss.

Impairment of financial assets

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.

 

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.10
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.11
Equity instruments

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

1.12
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability. A derivative is presented as a non-current asset or liability if the remaining maturity of the instrument is more than 12 months and it is not expected to be realised or settled within 12 months. Other derivatives are classified as current.

ASTEELFLASH (BEDFORD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.13
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 income statement 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 is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

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 income statement, 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.

1.14
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event and it is probable that the company will be required to settle that obligation, and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

 

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

1.15
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 inventories or non-current 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.

1.16
Retirement benefits

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

ASTEELFLASH (BEDFORD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.17
Leases

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

1.18
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.

ASTEELFLASH (BEDFORD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
2
Critical accounting estimates and judgements

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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

3
Revenue
2023
2022
£
£
Revenue analysed by class of business
Manufacturing
21,924,409
19,500,829
2023
2022
£
£
Revenue analysed by geographical market
UK and Ireland
21,688,580
16,751,286
Rest of Europe
231,514
2,150,235
USA
3,470
13,373
Rest of World
845
585,935
21,924,409
19,500,829
4
Operating profit/(loss)
2023
2022
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange losses
147,896
535,230
Depreciation of property, plant and equipment
316,861
230,942
Amortisation of intangible assets (included within administrative expenses)
308,992
354,542
Cost of inventories recognised as an expense
13,718,698
13,956,499
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
13,502
16,500
ASTEELFLASH (BEDFORD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
6
Employees

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

2023
2022
Number
Number
114
92

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
4,277,494
3,244,842
Social security costs
351,335
269,347
Pension costs
102,683
77,374
4,731,512
3,591,563
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
103,272
-
0
Company pension contributions to defined contribution schemes
5,677
-
108,949
-
0
8
Investment income
2023
2022
£
£
Interest income
Other interest income
3,359
1,186
9
Finance costs
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
219,457
58,412
Interest on lease liabilities
38,192
46,876
257,649
105,288
ASTEELFLASH (BEDFORD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
10
Other gains and losses
2023
2022
£
£
Gain on disposal of financial assets at amortised cost
26,355
-
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
84,187
(26,107)
Adjustments in respect of prior periods
-
(212)
Total UK current tax
84,187
(26,319)
Deferred tax
Origination and reversal of temporary differences
259,608
(94,147)
Total tax charge/(credit)
343,795
(120,466)

The charge for the year can be reconciled to the profit/(loss) per the income statement as follows:

2023
2022
£
£
Profit/(loss) before taxation
1,435,523
(238,516)
Expected tax charge/(credit) based on a corporation tax rate of 25.00% (2022: 19.00%)
358,881
(45,318)
Effect of expenses not deductible in determining taxable profit
129,345
21,644
Utilisation of tax losses not previously recognised
(255,557)
(140,670)
Permanent capital allowances in excess of depreciation
111,126
43,878
Taxation charge/(credit) for the year
343,795
(120,466)
12
Intangible fixed assets
Patents & licences
Right of use
Total
£
£
£
Cost
At 31 December 2022
788,367
2,010,081
2,798,448
Additions - internally generated
-
0
14,435
14,435
Transfer to held for sale
-
0
40,307
40,307
At 31 December 2023
788,367
2,064,823
2,853,190
ASTEELFLASH (BEDFORD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Intangible fixed assets
Patents & licences
Right of use
Total
£
£
£
(Continued)
- 20 -
Amortisation and impairment
At 31 December 2022
682,101
974,731
1,656,832
Charge for the year
62,631
246,361
308,992
Transfer to held for sale
-
0
40,307
40,307
At 31 December 2023
744,732
1,261,399
2,006,131
Carrying amount
At 31 December 2023
43,635
803,424
847,059
At 31 December 2022
106,266
1,035,350
1,141,616
ASTEELFLASH (BEDFORD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
13
Property, plant and equipment
Leasehold improvements
Assets under construction
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 January 2023
229,693
602,059
3,726,989
441,498
-
0
11,694
5,011,933
Additions
34,001
-
0
225,764
22,796
69,872
-
0
352,433
Disposals
-
-
0
(259,334)
-
0
(24,310)
-
0
(283,644)
Reclassification
-
0
(602,059)
494,677
(163,460)
230,535
-
0
(40,307)
At 31 December 2023
263,694
-
0
4,188,096
300,834
276,097
11,694
5,040,415
Accumulated depreciation and impairment
At 1 January 2023
144,654
-
0
3,266,329
372,875
-
0
11,694
3,795,552
Charge for the year
14,861
-
0
260,641
9,190
32,169
-
0
316,861
Eliminated on disposal
-
0
-
0
(259,334)
-
0
(24,310)
-
0
(283,644)
Eliminated on adjustment to depreciation
14,007
-
0
14,657
3,492
(8,799)
-
0
23,357
On assets reclassification
-
0
-
0
(77,982)
(129,226)
166,912
-
0
(40,296)
At 31 December 2023
173,522
-
0
3,204,311
256,331
165,972
11,694
3,811,830
Carrying amount
At 31 December 2023
90,172
-
0
983,785
44,503
110,125
-
0
1,228,585
At 31 December 2022
85,039
602,059
460,660
68,623
-
0
-
0
1,216,381
ASTEELFLASH (BEDFORD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
14
Inventories
2023
2022
£
£
Raw materials
7,082,282
7,278,338
15
Trade and other receivables
2023
2022
£
£
Trade receivables
6,363,699
4,472,835
Corporation tax recoverable
-
32,968
Amounts owed by fellow group undertakings
63,515
-
0
Other receivables
33,449
33,449
Prepayments and accrued income
292,447
219,431
6,753,110
4,758,683
16
Liabilities
Current
Non-current
2023
2022
2023
2022
Notes
£
£
£
£
Trade and other payables
17
8,812,852
8,630,423
3,496,499
3,568,436
Taxation and social security
1,094,267
280,987
-
-
Lease liabilities
18
262,646
250,137
632,491
883,230
10,169,765
9,161,547
4,128,990
4,451,666
17
Trade and other payables
Current
Non-current
2023
2022
2023
2022
£
£
£
£
Trade payables
3,916,937
5,463,981
-
0
-
0
Amounts owed to fellow group undertakings
1,754,509
1,773,860
3,496,499
3,568,436
Amounts owed to related parties
267,122
701,290
-
0
-
0
Accruals and deferred income
201,086
448,131
-
0
-
0
Other payables
2,673,198
243,161
-
-
8,812,852
8,630,423
3,496,499
3,568,436
18
Lease liabilities
2023
2022
Maturity analysis
£
£
ASTEELFLASH (BEDFORD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
18
Lease liabilities
(Continued)
- 23 -

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2023
2022
£
£
Current liabilities
262,646
250,137
Non-current liabilities
632,491
883,230
895,137
1,133,367
2023
2022
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
38,192
46,876
19
Provisions for liabilities
2023
2022
£
£
240,472
(13,560)
Movements on provisions:
£
Other movements
240,472

The above provisions are the major deferred tax liabilities and assets recognised by the Company and the movements thereon during the current and prior reporting period.

20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
102,683
77,374

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.

21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
52,631
52,631
52,631
52,631
ASTEELFLASH (BEDFORD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
22
Related party transactions

The company has taken exemption in accordance with IAS 24 not to disclose transactions entered into between two or more members of a group, provided that any subsidiary which is party to the transaction is wholly owned by such a member.

 

During the year, £nil (2022: £147,587) was paid to NSW Consultancy Limited, a company owned by a director, in respect of services provided by the director.

 

23
Controlling party

The Company is controlled by Financiere AFG, a company incorporated in France.

 

The smallest group of which Asteelflash (Bedford) Limited is a member and for which group financial statements are drawn up is that headed by Financiere FG S.A, whose principal place of Business is at 6, rue Van Gogh, 93360 Neuilly Plaisance, France.

 

The largest group of which Asteelflash (Bedford) Limited is a member and for which group financial statements are drawn up is that headed by ASE Technology Holding Co. Ltd, whose principal place of business is at 26 Chin Third Road, Nantze Export Processing Zone, Kaosiung F5 00000, Taiwan and from where its financial statements may be obtained.

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