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REGISTERED NUMBER: 03551662 (England and Wales)











STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

ARMORDUCT SYSTEMS LIMITED

ARMORDUCT SYSTEMS LIMITED (REGISTERED NUMBER: 03551662)






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




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Income and Retained Earnings 10

Balance Sheet 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 14


ARMORDUCT SYSTEMS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: Mr A A Rowe
Mr S Hudson-Smith



REGISTERED OFFICE: Milton Court
East Portway Business Park
Andover
Hampshire
SP10 3LU



REGISTERED NUMBER: 03551662 (England and Wales)



SENIOR STATUTORY
AUDITOR:
Christopher Joyce FCCA



AUDITORS: Hysons Audit Services Ltd, Statutory Auditor
14 London Street
Andover
Hampshire
SP10 2PA

ARMORDUCT SYSTEMS LIMITED (REGISTERED NUMBER: 03551662)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

This report provides an overview of the company's performance, key strategies, principal risks, and outlook.

BUSINESS MODEL
The business seeks to be the first-choice solution for all cable management needs.

BUSINESS REVIEW
2023 was a year of investment and development for Armorduct. The Board of Directors and the Leadership Team focused on developing people, systems, and processes to allow us to expand. Staff numbers grew during the year from 77 to 85. This was primarily within our warehouse and assembly teams, to support the introduction of our new distribution centre in Kingswinford. We relocated our warehouse there in March to improve distribution to our customer base and increase the range of products we hold. We have aimed to tailor our stock holding to align more with our customer requirements. We also invested in the redesign of our manufacturing facilities to improve workflow and efficiency.

It has also been a difficult year for Armorduct with several significant projects being delayed which has led to a drop in turnover from 2022. We have, however, managed to increase our gross profit margin due to improvements in efficiency which we plan to carry over into 2024. Even with the challenge of inflation peaking at its highest rate in over 40 years, we managed to reduce our cost of sales margin from 62% to 54%. Many of the significant increases in our overheads are related to investment in staff including the sales and CAD teams. This has reduced our net profit from 2022, however it gives us a head start on the planned growth for 2024.

Key performance indicators

2023 2022
Debtor days 88 days 88 days Average debtor payment days
Inventory days 120 days 140 days Average stock days
Gross margin 37.3% 37.7% Gross profit as % of turnover


ARMORDUCT SYSTEMS LIMITED (REGISTERED NUMBER: 03551662)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The company operates in a competitive market which leads pricing decisions. It is difficult to pass increases in costs such as steel, electricity and gas, and labour, on to the customer without considering the actions that competitors are taking. We are working instead to reduce costs by improving efficiencies within the manufacturing process.
Our sales turnover is a combination of direct supply to wholesalers supported by major project volumes. Projects are volatile and subject to change; they rarely start on time and are difficult therefore to budget for. We are developing our relationships with wholesalers to increase our stockholding as this business will enable us to continue supporting projects.

Credit Risk
In general, the preponderance of our customers are financially stable and good payers. We have a robust credit checking system and do not accept any new customers where we are unhappy with their credit rating. Irrecoverable debts cannot always be avoided due to our desire to collaborate with our smaller customers to develop mutually beneficial relationships. We wish to continue to do so but we must carefully balance this with our need to protect the company assets. In these cases, we offer reduced credit limits and shorter payment terms.

Liquidity Risk
Armorduct continues to hold a strong cashflow position even after considerable investment. As we continue to invest in new machinery, we are confident that we have ample resources available to us to support our everyday requirements.

FUTURE PROSPECTS
2024 promises exciting opportunities for the Company. We continue to win new projects and contracts, such as the Acel deal with Electric Centre, a strong national wholesaler. This deal alone is expected to generate additional revenue in the region of £1 million over the next 12 months from standard products. Additionally, we are successfully onboarding new customers.

We have also strengthened our relationships with existing customers to expand our offerings. By developing our product range, the sales forecast for 2024 shows robust growth. Our commitment to over £1 million in group spend on machinery in 2024 underscores our confidence in this growth trajectory.

Looking ahead, we are focused on developing our vehicle fleet to further reduce costs and mitigate our carbon impact. This initiative is part of our broader strategy to enhance operational efficiency and sustainability.

ON BEHALF OF THE BOARD:





Mr S Hudson-Smith - Director


26 September 2024

ARMORDUCT SYSTEMS LIMITED (REGISTERED NUMBER: 03551662)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

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

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the manufacture and retail of cable management systems.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

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

Mr A A Rowe
Mr S Hudson-Smith

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ARMORDUCT SYSTEMS LIMITED (REGISTERED NUMBER: 03551662)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


AUDITORS
The auditors, Hysons Audit Services Ltd, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr S Hudson-Smith - Director


26 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ARMORDUCT SYSTEMS LIMITED

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

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

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

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ARMORDUCT SYSTEMS LIMITED


Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ARMORDUCT SYSTEMS LIMITED


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the Senior Statutory Auditor ensured that the engagement team collectively had the
appropriate competence, capabilities and skills to identify or recognise non-compliance with
applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with
directors and other management and from our commercial knowledge and experience of the
publishing sector;
- we focused on specific laws and regulations which we considered may have a direct material
effect on the financial statements or the operations of the company, including the
Companies Act 2006 and Financial Reporting Standard 102;
- we assessed the extent of compliance with the laws and regulations identified above through
making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the
team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to
fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with
laws and regulations.

To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting
estimates were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators and the company’s legal
advisors.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ARMORDUCT SYSTEMS LIMITED

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

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Christopher Joyce FCCA (Senior Statutory Auditor)
for and on behalf of Hysons Audit Services Ltd, Statutory Auditor
14 London Street
Andover
Hampshire
SP10 2PA

26 September 2024

ARMORDUCT SYSTEMS LIMITED (REGISTERED NUMBER: 03551662)

STATEMENT OF INCOME AND
RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 4 8,244,350 8,909,587

Cost of sales (5,165,160 ) (5,551,057 )
GROSS PROFIT 3,079,190 3,358,530

Administrative expenses (3,060,747 ) (2,596,064 )
OPERATING PROFIT 6 18,443 762,466

Interest receivable and similar
income

11,744

885
30,187 763,351

Interest payable and similar
expenses

7

(17,898

)

(10,900

)
PROFIT BEFORE TAXATION 12,289 752,451

Tax on profit 8 (73,706 ) (176,676 )
(LOSS)/PROFIT FOR THE
FINANCIAL YEAR

(61,417

)

575,775

Retained earnings at beginning of
year

3,059,953

2,484,178

RETAINED EARNINGS AT END OF
YEAR

2,998,536

3,059,953

ARMORDUCT SYSTEMS LIMITED (REGISTERED NUMBER: 03551662)

BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 1,151,980 1,067,157

CURRENT ASSETS
Stocks 10 992,394 898,210
Debtors 11 2,223,411 2,309,601
Cash at bank and in hand 1,210,037 1,220,336
4,425,842 4,428,147
CREDITORS
Amounts falling due within one year 12 2,043,992 1,935,640
NET CURRENT ASSETS 2,381,850 2,492,507
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,533,830

3,559,664

CREDITORS
Amounts falling due after more than
one year

13

(319,710

)

(320,530

)

PROVISIONS FOR LIABILITIES 16 (215,384 ) (178,981 )
NET ASSETS 2,998,736 3,060,153

CAPITAL AND RESERVES
Called up share capital 17 122 122
Capital redemption reserve 18 78 78
Retained earnings 18 2,998,536 3,059,953
SHAREHOLDERS' FUNDS 2,998,736 3,060,153

The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2024 and were signed on its behalf by:





Mr S Hudson-Smith - Director


ARMORDUCT SYSTEMS LIMITED (REGISTERED NUMBER: 03551662)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 442,047 811,335
Interest paid (17,898 ) (10,900 )
Tax paid (56,917 ) (38,988 )
Net cash from operating activities 367,232 761,447

Cash flows from investing activities
Purchase of tangible fixed assets (424,952 ) (673,601 )
Sale of tangible fixed assets - 64,620
Interest received 11,744 885
Net cash from investing activities (413,208 ) (608,096 )

Cash flows from financing activities
Capital repayments in year 35,677 81,429
Net cash from financing activities 35,677 81,429

(Decrease)/increase in cash and cash equivalents (10,299 ) 234,780
Cash and cash equivalents at
beginning of year

2

1,220,336

985,556

Cash and cash equivalents at end
of year

2

1,210,037

1,220,336

ARMORDUCT SYSTEMS LIMITED (REGISTERED NUMBER: 03551662)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 12,289 752,451
Depreciation charges 340,129 187,990
Loss on disposal of fixed assets - 21,112
Finance costs 17,898 10,900
Finance income (11,744 ) (885 )
358,572 971,568
(Increase)/decrease in stocks (94,184 ) 106,938
Decrease/(increase) in trade and other debtors 86,190 (253,416 )
Increase/(decrease) in trade and other creditors 91,469 (13,755 )
Cash generated from operations 442,047 811,335

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 1,210,037 1,220,336
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 1,220,336 985,556


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 1,220,336 (10,299 ) 1,210,037
1,220,336 (10,299 ) 1,210,037
Debt
Finance leases (452,802 ) (35,677 ) (488,479 )
(452,802 ) (35,677 ) (488,479 )
Total 767,534 (45,976 ) 721,558

ARMORDUCT SYSTEMS LIMITED (REGISTERED NUMBER: 03551662)

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

1. STATUTORY INFORMATION

Armorduct Systems Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. STATEMENT OF COMPLIANCE

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

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Improvements to property - 20% on cost
Plant and machinery - 25% on cost and 10% on cost
Motor vehicles - 25% on cost
Office and computer equipment - 33% on cost

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

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

Current or deferred taxation assets and liabilities are not discounted.

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


ARMORDUCT SYSTEMS LIMITED (REGISTERED NUMBER: 03551662)

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

3. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

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

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

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

4. TURNOVER

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

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 8,244,350 8,909,587
8,244,350 8,909,587

5. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 2,163,822 2,156,554
Social security costs 198,494 195,821
Other pension costs 123,044 118,138
2,485,360 2,470,513

ARMORDUCT SYSTEMS LIMITED (REGISTERED NUMBER: 03551662)

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

5. EMPLOYEES AND DIRECTORS - continued

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

Manufacturing 44 48
Transport 2 2
Warehousing 10 9
Directors 1 1
Accounts 3 2
Sales 11 10
Administration 9 7
80 79

2023 2022
£    £   
Directors' remuneration 90,937 208,099
Directors' pension contributions to money purchase schemes 28,663 17,650

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

Money purchase schemes 1 1

6. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£    £   
Hire of plant and machinery 8,941 20,949
Other operating leases 415,204 412,749
Depreciation - owned assets 184,241 123,465
Depreciation - assets on hire purchase contracts 155,889 64,526
Loss on disposal of fixed assets - 21,112
Auditor's remuneration 9,000 9,000

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 17,898 10,900

ARMORDUCT SYSTEMS LIMITED (REGISTERED NUMBER: 03551662)

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

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 37,303 88,779

Deferred tax 36,403 87,897
Tax on profit 73,706 176,676

9. TANGIBLE FIXED ASSETS
Office
Improvements and
to Plant and Motor computer
property machinery vehicles equipment Totals
£    £    £    £    £   
COST
At 1 January 2023 286,097 2,220,232 205,016 371,641 3,082,986
Additions 16,981 283,406 96,425 28,140 424,952
Reclassification/transfer - - - (10,676 ) (10,676 )
At 31 December 2023 303,078 2,503,638 301,441 389,105 3,497,262
DEPRECIATION
At 1 January 2023 159,674 1,543,540 104,236 208,379 2,015,829
Charge for year 39,440 199,147 45,131 56,412 340,130
Reclassification/transfer - - - (10,677 ) (10,677 )
At 31 December 2023 199,114 1,742,687 149,367 254,114 2,345,282
NET BOOK VALUE
At 31 December 2023 103,964 760,951 152,074 134,991 1,151,980
At 31 December 2022 126,423 676,692 100,780 163,262 1,067,157

ARMORDUCT SYSTEMS LIMITED (REGISTERED NUMBER: 03551662)

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

9. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Office
and
Plant and Motor computer
machinery vehicles equipment Totals
£    £    £    £   
COST
At 1 January 2023 488,080 65,999 110,000 664,079
Additions 181,329 52,448 - 233,777
At 31 December 2023 669,409 118,447 110,000 897,856
DEPRECIATION
At 1 January 2023 95,276 4,125 11,458 110,859
Charge for year 100,963 27,426 27,500 155,889
At 31 December 2023 196,239 31,551 38,958 266,748
NET BOOK VALUE
At 31 December 2023 473,170 86,896 71,042 631,108
At 31 December 2022 392,804 61,874 98,542 553,220

10. STOCKS
2023 2022
£    £   
Stocks 948,171 806,047
Work-in-progress 44,223 92,163
992,394 898,210

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,906,598 1,963,989
Other debtors 128,880 120,536
Tax 39,000 39,000
Prepayments 148,933 186,076
2,223,411 2,309,601

ARMORDUCT SYSTEMS LIMITED (REGISTERED NUMBER: 03551662)

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

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 14)
168,769

132,272
Trade creditors 952,047 634,850
Tax 69,177 88,791
Social security and other taxes 110,096 41,990
VAT 237,121 315,326
Other creditors 18,867 4,373
Accruals and deferred income 487,915 718,038
2,043,992 1,935,640

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN
ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 14)
319,710

320,530

14. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 168,769 132,272
Between one and five years 319,710 320,530
488,479 452,802

Non-cancellable operating leases
2023 2022
£    £   
Within one year 317,511 340,045
Between one and five years 725,830 865,591
In more than five years 433,905 611,655
1,477,246 1,817,291

ARMORDUCT SYSTEMS LIMITED (REGISTERED NUMBER: 03551662)

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

15. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Hire purchase contracts 488,479 452,802

16. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 215,384 178,981

Deferred
tax
£   
Balance at 1 January 2023 178,981
Charge to Income Statement during year 36,403
Balance at 31 December 2023 215,384

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
122 Ordinary £1 122 122

18. RESERVES
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 January 2023 3,059,953 78 3,060,031
Deficit for the year (61,417 ) (61,417 )
At 31 December 2023 2,998,536 78 2,998,614

ARMORDUCT SYSTEMS LIMITED (REGISTERED NUMBER: 03551662)

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

19. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 December 2023 and 31 December 2022:

2023 2022
£    £   
Mr S Hudson-Smith
Balance outstanding at start of year 120,000 120,000
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 120,000 120,000

20. RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity
2023 2022
£    £   
Purchases 510,400 -
Amount due from related party 648 -
Amount due to related party 85,067 -

Other related parties
2023 2022
£    £   
Sales 1,002,409 1,577,631
Purchases - 29,238
Amount due from related party 263,435 445,457
Amount due to related party 4,847 107,302

21. ULTIMATE CONTROLLING PARTY

The controlling party is Hudson Cable Management GroupLimited.

The ultimate controlling party is Mr S Hudson-Smith.