Company registration number 03129324 (England and Wales)
AIRQUEE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
AIRQUEE LIMITED
COMPANY INFORMATION
Directors
Mr M John
Mr P Hartell
Mr Antony Sutton
Mr R J Christie
(Appointed 1 January 2024)
Company number
03129324
Registered office
Duel House
Llandowlais Street
Oakfield
Cwmbran
Gwent
United Kingdom
NP44 7XB
Auditor
Azets Audit Services
Epsilon House
The Square
Gloucester Business Park
Gloucester
Gloucestershire
United Kingdom
GL3 4AD
AIRQUEE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10 - 11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 37
AIRQUEE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Fair review of the business

The Group proudly maintains its status as Europe's premier manufacturer of inflatable play and technical products. With operational sites in Cwmbran, South Wales, and Romania, we specialise in the design and production of a diverse array of inflatable, metal, and play products and structures. Our product range spans from commercial bouncy castles to inflatable theme parks, trampoline parks, climbing walls, and humanitarian and medical tents and equipment as well as technical industrial products.

 

Financial Performance

In reflection of our performance in the year 2023, the directors are extremely proud of our continued accomplishments. During this period, the Group achieved a commendable turnover of £12.5 million. Our unwavering commitment to optimising staffing levels and diligently managing manufacturing costs underpins our ability to maintain competitive pricing. The Group's profit margin has increased compared to the previous year, and currently stands at a resilient 33.55%. Improved efficiency and is the main factor as all other costs continue to rise.

 

Continuous Improvement

As a Group, we are fully aware of the challenges endemic to our industry. Our response to these challenges has been multifaceted, involving continuous enhancement of our control systems and processes. We steadfastly cultivate a culture of proactive customer care and service excellence throughout our organization. Our adaptive measures and strategic initiatives, initially implemented in response to changing circumstances, have continued to evolve and grow, including the transformation of our UK-based workforce's working arrangements.

 

Future Prospects

Looking ahead, the Group's future prosperity hinges on our commitment to delivering innovative designs at competitive prices, accompanied by unparalleled service to our valued customers. The directors hold a strong belief that our strategic approach, coupled with the extensive expansion endeavours undertaken in 2023 and the planned expansion initiatives for 2024, positions us favourably to capitalise on emerging opportunities. Our robust financial position empowers us to undertake larger contracts and explore potential acquisitions, should they arise.

 

Conclusion

In conclusion, the Group proudly upholds its position as Europe's foremost manufacturer of inflatable play and technical products. Our unwavering dedication to innovation, quality, and customer satisfaction remains at the core of our success. Irrespective of the challenges faced, our adaptive strategies and unwavering focus ensure that we are well-prepared to navigate the future, with confidence in our ability to serve our customers, explore new horizons, and maintain our leadership in the industry.

Key Performance Indicators
2023
2022
Revenue
12,536,732
10,322,929
Gross Profit
4,205,900
3,006,314
Gross Profit %
33.55%
29.12%
AIRQUEE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

Environmental matters
The group recognises the importance of its environmental responsibilities and accepts that concern for the environment and all employees is an integral and fundamental part of its corporate business strategy. The group monitors its impact on the environment and endeavours to design and implement policies and processes to reduce any damage that might be caused by the group's activities. Initiatives include the safe disposal of commercial waste, the minimisation of waste going to landfill, reducing energy consumption and the use of renewable natural resources where possible. During 2023 the group continued on the journey to become carbon neutral within its business activities. We partnered with Climate Partners who are recording and monitoring our current carbon footprint. We will now investigate and implement ways of offsetting and reducing our corporate carbon footprint.

 

Principal risks and uncertainties

Risks are identified by the directors below, however the principal risk facing the group is the impact of the current cost of living crisis. This could have a big impact on the UK hirer market as people tighten their belts, however whilst this will occur people may also travel abroad less and instead spend more in the UK, thus helping our markets.

 

The company's performance is heavily influenced by the competition it faces in acquiring new customers. Given the company's excellent reputation and the successful relationships the company has both home and abroad, it is considered that such risks have to a large extent been mitigated.

 

Financial risk management objectives and policies

The group operates a number of risk management policies designed to minimise its exposure to financial risk including key financial controls and targets implemented on every project which are reviewed monthly by the board to ensure that risk is mitigated and opportunities explored fully.

 

Liquidity Risk

The group produces detailed management accounts and forecasts, which enable the directors to monitor the cash position and to ensure that there is a sufficient liquidity and cash flow to minimise the risk of the group being unable to pay its debts as they fall due.

 

People

A highly skilled and trained workforce is imperative to the success of the business and there is a risk of the loss of potential key staff and the inability to recruit people with the equivalent experience. The group looks to develop staff and their working environment by continual engagement and regular training. All members are encouraged to challenge convention. Competitive remuneration and ensuring it is a "great place to work” are the ethos of the business.

 

The group's policy is to consult and discuss with employees at meetings, matters likely to affect employees' interests. Information about matters of concern to employees is given through information bulletins which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

 

Over the past 2 years we have established a clear department hierarchy within the group and established new department managers who are responsible for their staff and staff development as we prioritise staff development.

 

Credit Risk

The group operates a number of policies and controls to minimise credit risk. All customers are subject to a detailed review prior to any terms being agreed, the group will only conduct business with customers deemed to be credit worthy.

On behalf of the board

Mr P Hartell
Director
20 September 2024
AIRQUEE 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 and group continued to be that of the manufacture and sale of leisure goods and industrial inflatable structures.

Results and dividends

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

Ordinary dividends were paid amounting to £3,000. 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:

Mr M John
Mr P Hartell
Mr Antony Sutton
Mr R J Christie
(Appointed 1 January 2024)
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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and 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 auditor of the company 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 auditor of the company is aware of that information.

Disclosure in 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. It has done so in respect of the 'Review of Business' and 'Development and Performance' of the company for the year.

AIRQUEE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
Mr P Hartell
Director
20 September 2024
AIRQUEE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF AIRQUEE LIMITED
- 5 -
Opinion

We have audited the financial statements of Airquee Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

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:

AIRQUEE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AIRQUEE LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report.

 

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:

 

 

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 parent 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 parent 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.

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.

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

Extent to which the audit was considered 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 and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Robert Hull (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
24 September 2024
Chartered Accountants
Statutory Auditor
Epsilon House
The Square
Gloucester Business Park
Gloucester
Gloucestershire
United Kingdom
GL3 4AD
AIRQUEE LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
12,536,732
10,322,929
Cost of sales
(8,330,832)
(7,316,615)
Gross profit
4,205,900
3,006,314
Administrative expenses
(2,522,214)
(2,069,691)
Other operating income
46,699
81,533
Operating profit
5
1,730,385
1,018,156
Interest receivable and similar income
8
13,404
2,331
Interest payable and similar expenses
9
(18,256)
(13,494)
Amounts written off investments
10
(156,730)
-
Profit before taxation
1,568,803
1,006,993
Tax on profit
11
(172,700)
(29,637)
Profit for the financial year
29
1,396,103
977,356
Profit for the financial year is attributable to:
- Owners of the parent company
1,339,866
971,003
- Non-controlling interests
56,237
6,353
1,396,103
977,356
AIRQUEE LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
£
£
Profit for the year
1,396,103
977,356
Other comprehensive income
Currency translation loss taken to retained earnings
(26,706)
(11,419)
Total comprehensive income for the year
1,369,397
965,937
Total comprehensive income for the year is attributable to:
- Owners of the parent company
1,313,160
959,584
- Non-controlling interests
56,237
6,353
1,369,397
965,937
AIRQUEE LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
14
16,768
20,759
Tangible assets
15
1,384,139
1,194,465
Investment property
16
225,000
225,000
Investments
17
156,729
313,459
1,782,636
1,753,683
Current assets
Stocks
19
3,306,109
3,260,260
Debtors
20
2,722,876
2,178,817
Cash at bank and in hand
2,328,611
1,861,035
8,357,596
7,300,112
Creditors: amounts falling due within one year
21
(2,343,322)
(2,502,175)
Net current assets
6,014,274
4,797,937
Total assets less current liabilities
7,796,910
6,551,620
Creditors: amounts falling due after more than one year
22
(187,933)
(214,184)
Provisions for liabilities
Deferred tax liability
25
20,679
20,679
(20,679)
(20,679)
Net assets
7,588,298
6,316,757
Capital and reserves
Called up share capital
27
143,056
143,056
Share premium account
29
85,694
85,694
Capital redemption reserve
29
386,252
386,252
Profit and loss reserves
29
6,905,706
5,684,721
Equity attributable to owners of the parent company
7,520,708
6,299,723
Non-controlling interests
67,590
17,034
7,588,298
6,316,757
AIRQUEE LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 20 September 2024 and are signed on its behalf by:
20 September 2024
Mr P Hartell
Director
Company registration number 03129324 (England and Wales)
AIRQUEE LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
15
67,783
39,249
Investment property
16
225,000
225,000
Investments
17
306,040
463,617
598,823
727,866
Current assets
Stocks
19
779,274
695,525
Debtors
20
5,703,326
5,573,501
Cash at bank and in hand
1,482,726
1,409,280
7,965,326
7,678,306
Creditors: amounts falling due within one year
21
(1,873,426)
(2,110,367)
Net current assets
6,091,900
5,567,939
Total assets less current liabilities
6,690,723
6,295,805
Creditors: amounts falling due after more than one year
22
(187,933)
(214,184)
Provisions for liabilities
Deferred tax liability
25
20,679
20,679
(20,679)
(20,679)
Net assets
6,482,111
6,060,942
Capital and reserves
Called up share capital
27
143,056
143,056
Share premium account
29
85,694
85,694
Capital redemption reserve
29
386,252
386,252
Profit and loss reserves
29
5,867,109
5,445,940
Total equity
6,482,111
6,060,942

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £424,169 (2022 - £894,342 profit).

The financial statements were approved by the board of directors and authorised for issue on 20 September 2024 and are signed on its behalf by:
20 September 2024
Mr P Hartell
Director
Company registration number 03129324 (England and Wales)
AIRQUEE LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
£
Balance at 1 January 2022
143,056
85,694
386,252
5,016,318
5,631,320
38,812
5,670,132
Year ended 31 December 2022:
Profit for the year
-
-
-
971,003
971,003
6,353
977,356
Other comprehensive income:
Currency translation differences
-
-
-
(11,419)
(11,419)
-
(11,419)
Total comprehensive income for the year
-
-
-
959,584
959,584
6,353
965,937
Dividends
12
-
-
-
-
-
(319,312)
(319,312)
Transfers
-
-
-
(291,181)
(291,181)
291,181
-
Balance at 31 December 2022
143,056
85,694
386,252
5,684,721
6,299,723
17,034
6,316,757
Year ended 31 December 2023:
Profit for the year
-
-
-
1,339,866
1,339,866
56,237
1,396,103
Other comprehensive income:
Currency translation differences
-
-
-
(26,706)
(26,706)
-
(26,706)
Total comprehensive income for the year
-
-
-
1,313,160
1,313,160
56,237
1,369,397
Dividends
12
-
-
-
(3,000)
(3,000)
(94,856)
(97,856)
Transfers
-
-
-
(89,175)
(89,175)
89,175
-
Balance at 31 December 2023
143,056
85,694
386,252
6,905,706
7,520,708
67,590
7,588,298
AIRQUEE LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
143,056
85,694
386,252
4,551,598
5,166,600
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
894,342
894,342
Balance at 31 December 2022
143,056
85,694
386,252
5,445,940
6,060,942
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
424,169
424,169
Dividends
12
-
-
-
(3,000)
(3,000)
Balance at 31 December 2023
143,056
85,694
386,252
5,867,109
6,482,111
AIRQUEE LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
35
1,013,916
575,664
Interest paid
(18,256)
(13,494)
Income taxes paid
(183,416)
(16,877)
Net cash inflow from operating activities
812,244
545,293
Investing activities
Purchase of intangible assets
(25,828)
(22,787)
Proceeds on disposal of intangibles
-
34,672
Purchase of tangible fixed assets
(1,073,225)
(1,235,002)
Proceeds on disposal of tangible fixed assets
731,180
488,727
Receipts arising from loans made
189,472
93,531
Interest received
13,404
2,331
Net cash used in investing activities
(164,997)
(638,528)
Financing activities
Movement on bank loans
(54,843)
(60,427)
Payment of finance leases obligations
(26,972)
(4,651)
Dividends paid to equity shareholders
(3,000)
-
Dividends paid to non-controlling interests
(94,856)
(319,312)
Net cash used in financing activities
(179,671)
(384,390)
Net increase/(decrease) in cash and cash equivalents
467,576
(477,625)
Cash and cash equivalents at beginning of year
1,861,035
2,338,660
Cash and cash equivalents at end of year
2,328,611
1,861,035
AIRQUEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

Airquee Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Duel House, Llandowlais Street, Oakfield, Cwmbran, Gwent, United Kingdom, NP44 7XB.

 

The group consists of Airquee Limited and all of its subsidiaries.

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, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The 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 for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Airquee Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

AIRQUEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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.

1.5
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

 

1.6
Intangible fixed 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:

Knowledge & Knowhow
10 years
Patents & licences
3 years
Trade marks
5 years
1.7
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.

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:

Freehold land and buildings
2% reducing balance
Leasehold land and buildings
10% straight line
Plant and equipment
2 to 8 years reducing balance
Fixtures and fittings
3 to 12 years straight line
Motor vehicles
4 to 5 years 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 profit and loss account.

1.8
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

AIRQUEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Where a reasonable and consistent basis of allocation can be identified, assets are allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. 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.

1.11
Stocks

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.

 

Stocks 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.

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

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.

1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

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

 

Financial assets and liabilities are offset and 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.

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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

AIRQUEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

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.

1.13
Equity instruments

Equity instruments issued by the group 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 group.

1.14
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

AIRQUEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
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. Such assets and liabilities are not recognised if the timing 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 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 if, and only if, there is 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.

1.15
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group 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 the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.16
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.

1.17
Retirement benefits

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

1.18
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 leased asset are consumed.

AIRQUEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -

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.

1.19
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.

1.20

Exceptional items

Exceptional items are those which are separately identified by virtue of their size or nature to allow a full understanding of the underlying performance of the company.

1.21

Related party exemption

The company has taken advantage of exemption, under the terms of the Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", not to disclose related party transactions with wholly own subsidiaries within the group.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

AIRQUEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 23 -
Key sources of estimation uncertainty

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

Useful economic lives of tangible assets

The annual depreciation charges for tangibles assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See above for the useful economic lives for each class of assets.

Stock

Stocks are valued at the lower cost and net realisable value. Net realisable value includes, where necessary, directors estimates for provisions for slow moving and obsolete stocks based on movement over the past 12 months.

Investment property

Investment properties are reviewed annually for their fair value and, where this valuation differs materially to the carrying value, adjustments are made to revalue these assets. Movements in the fair value of investment properties are recognised in profit or loss.

 

The fair value of investment properties was reassessed as detailed in the investment property note and consequently a gain of £Nil (2022: £Nil) was recognised net of taxation.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Inflatables
12,536,732
10,322,929
2023
2022
£
£
Turnover analysed by geographical market
UK (incl. Channel Islands)
8,021,403
7,156,587
Rest of Europe
3,278,917
2,638,111
Rest of World
1,236,412
528,231
12,536,732
10,322,929
2023
2022
£
£
Other revenue
Interest income
13,404
2,331
Rental income arising from investment properties
18,800
18,600
AIRQUEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
26,750
25,000
Audit of the financial statements of the company's subsidiaries
4,876
4,967
31,626
29,967
5
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
171,595
133,573
Loss/(profit) on disposal of tangible fixed assets
7,258
(5,879)
Amortisation of intangible assets
29,284
-
Operating lease charges
52,099
49,052
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Staff and directors
258
250
13
15

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,863,448
3,306,554
702,567
641,321
Social security costs
235,017
204,630
80,954
72,461
Pension costs
22,654
22,858
22,654
22,858
4,121,119
3,534,042
806,175
736,640
AIRQUEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
373,663
271,324
Company pension contributions to defined contribution schemes
15,569
15,361
389,232
286,685

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
198,923
174,073
Company pension contributions to defined contribution schemes
10,157
10,088
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
11,145
428
Other interest income
2,259
1,903
Total income
13,404
2,331
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
17,010
11,646
Interest on finance leases and hire purchase contracts
1,246
1,848
Total finance costs
18,256
13,494
10
Amounts written off investments
2023
2022
£
£
Other gains and losses
(156,730)
-
AIRQUEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
11
Taxation
2023
2022
£
£
Current tax
Foreign current tax on profits for the current period
172,700
29,637

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

2023
2022
£
£
Profit before taxation
1,568,803
1,006,993
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
368,982
191,329
Research and development relief
(148,485)
(193,781)
Other differences including effects of change in rate
(47,797)
32,089
Taxation charge
172,700
29,637

Factors that may affect future tax charges

The group has tax losses available to use against future trading profits in the region of £390,000 (2022: £570,000). The group does not anticipate these losses to be fully utilised in the immediate future, and as such has recognised £Nil (2022: £Nil) of the deferred tax asset.

 

The value of the unrecognised deferred tax asset is in the region of £100,000 (2022: £100,000). This has been calculated using a rate of 25% (2022: 25%), on the basis that an increase in the main rate of UK Corporation Tax to 25% due to take effect from 1 April 2023 had been enacted at the Balance Sheet date.

 

12
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
3,000
-
AIRQUEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
13
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Fixed asset investments
17
156,730
-
Recognised in:
Amounts written off investments
156,730
-

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

14
Intangible fixed assets
Group
Knowledge & Knowhow
Patents & licences
Trade marks
Total
£
£
£
£
Cost
At 1 January 2023
160,000
40,572
107,505
308,077
Additions
-
0
-
0
25,828
25,828
Exchange adjustments
-
0
-
0
(2,771)
(2,771)
At 31 December 2023
160,000
40,572
130,562
331,134
Amortisation and impairment
At 1 January 2023
160,000
40,572
86,746
287,318
Amortisation charged for the year
-
0
-
0
29,284
29,284
Exchange adjustments
-
0
-
0
(2,236)
(2,236)
At 31 December 2023
160,000
40,572
113,794
314,366
Carrying amount
At 31 December 2023
-
0
-
0
16,768
16,768
At 31 December 2022
-
0
-
0
20,759
20,759
AIRQUEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Intangible fixed assets
(Continued)
- 28 -
Company
Knowledge & Knowhow
Patents & licences
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
160,000
40,371
200,371
Amortisation and impairment
At 1 January 2023 and 31 December 2023
160,000
40,371
200,371
Carrying amount
At 31 December 2023
-
0
-
0
-
0
At 31 December 2022
-
0
-
0
-
0
15
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
180,563
27,416
1,418,556
422,124
66,032
2,114,691
Additions
487,512
-
0
536,038
68,625
37,242
1,129,417
Disposals
-
0
-
0
(721,574)
-
0
(31,032)
(752,606)
Exchange adjustments
(4,644)
-
0
(34,491)
(9,441)
-
0
(48,576)
At 31 December 2023
663,431
27,416
1,198,529
481,308
72,242
2,442,926
Depreciation and impairment
At 1 January 2023
706
27,416
606,858
252,760
32,486
920,226
Depreciation charged in the year
11,216
-
0
131,002
26,419
2,958
171,595
Eliminated in respect of disposals
-
0
-
0
(6,410)
-
0
(7,758)
(14,168)
Exchange adjustments
(18)
-
0
(13,762)
(5,086)
-
0
(18,866)
At 31 December 2023
11,904
27,416
717,688
274,093
27,686
1,058,787
Carrying amount
At 31 December 2023
651,527
-
0
480,841
207,215
44,556
1,384,139
At 31 December 2022
179,857
-
0
811,698
169,364
33,546
1,194,465
AIRQUEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Tangible fixed assets
(Continued)
- 29 -
Company
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
27,416
77,498
55,032
66,032
225,978
Additions
-
0
18,950
-
0
37,242
56,192
Disposals
-
0
-
0
-
0
(31,032)
(31,032)
At 31 December 2023
27,416
96,448
55,032
72,242
251,138
Depreciation and impairment
At 1 January 2023
27,416
71,795
55,032
32,486
186,729
Depreciation charged in the year
-
0
1,426
-
0
2,958
4,384
Eliminated in respect of disposals
-
0
-
0
-
0
(7,758)
(7,758)
At 31 December 2023
27,416
73,221
55,032
27,686
183,355
Carrying amount
At 31 December 2023
-
0
23,227
-
0
44,556
67,783
At 31 December 2022
-
0
5,703
-
0
33,546
39,249

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
18,950
-
0
18,950
-
0
Motor vehicles
37,242
23,274
37,242
23,274
56,192
23,274
56,192
23,274
16
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 January 2023 and 31 December 2023
225,000
225,000

The carrying value as at 31 December 2023 is based on an expert valuation held on 12 January 2022. This valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. The directors consider that there have been no material changes, and therefore that this value remains appropriate as at 31 December 2023.

AIRQUEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Investment property
(Continued)
- 30 -

The carrying value of land and buildings comprises:

Group
Company
2023
2022
2023
2022
£
£
£
£
Freehold
225,000
225,000
225,000
225,000
17
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
18
-
0
-
0
149,311
150,158
Unlisted investments
156,729
313,459
156,729
313,459
156,729
313,459
306,040
463,617
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 January 2023
313,459
Valuation changes
(156,730)
At 31 December 2023
156,729
Carrying amount
At 31 December 2023
156,729
At 31 December 2022
313,459
AIRQUEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
17
Fixed asset investments
(Continued)
- 31 -
Movements in fixed asset investments
Company
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2023
150,158
313,459
463,617
Valuation changes
-
(156,730)
(156,730)
At 31 December 2023
150,158
156,729
306,887
Impairment
At 1 January 2023
-
-
-
Impairment losses
847
-
847
At 31 December 2023
847
-
847
Carrying amount
At 31 December 2023
149,311
156,729
306,040
At 31 December 2022
150,158
313,459
463,617
18
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Airquee SRL
SC. Airquee
SRL. Str.
Recoltei, Nr 3/
Corp A Sfantu
Gheorghe, Romania
Ordinary
94.00
Airquee Europe B.V.
Bizen 76b, 2771 CN Boskoop
Ordinary
100.00
Airquee Ireland Limited
93 O'Connell Street, Limerick
Ordinary
100.00
Airquee (NI) Limited
54 Bloomfield Avenue, Belfast, Northern Ireland, BT5 5AD
Ordinary
100.00
19
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
1,826,592
1,712,841
-
-
Work in progress
123,339
449,596
-
-
Finished goods and goods for resale
1,356,178
1,097,823
779,274
695,525
3,306,109
3,260,260
779,274
695,525
AIRQUEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
20
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,028,420
883,515
682,319
355,924
Corporation tax recoverable
8,330
-
0
-
0
-
0
Amounts owed by group undertakings
-
-
3,726,174
4,007,105
Other debtors
1,354,646
1,216,738
1,259,833
1,156,398
Prepayments and accrued income
331,480
78,564
35,000
54,074
2,722,876
2,178,817
5,703,326
5,573,501

Amounts owed by group undertakings are unsecured, interest free and repayable on demand.

21
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
23
58,860
63,860
58,860
63,860
Obligations under finance leases
24
9,261
3,633
9,261
3,633
Trade creditors
419,691
445,640
261,133
172,295
Amounts owed to group undertakings
-
0
-
0
82,303
91,273
Corporation tax payable
4,536
6,922
4,536
81
Other taxation and social security
168,350
120,870
167,481
120,870
Other creditors
1,199,424
1,802,665
1,072,062
1,601,655
Accruals and deferred income
483,200
58,585
217,790
56,700
2,343,322
2,502,175
1,873,426
2,110,367

Amounts owed to group undertakings are unsecured, interest free and repayable on demand.

22
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
23
149,870
199,713
149,870
199,713
Obligations under finance leases
24
38,063
14,471
38,063
14,471
187,933
214,184
187,933
214,184
AIRQUEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
23
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
208,730
263,573
208,730
263,573
Payable within one year
58,860
63,860
58,860
63,860
Payable after one year
149,870
199,713
149,870
199,713

Bank loans include a mortgage secured by a fixed charge over the property held. This is a 10 year mortgage, repayable in monthly instalments and is charged interest at 4.48%.

 

The bank also hold a fixed charge over the assets of the company.

 

24
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
9,261
3,633
9,261
3,633
In two to five years
38,063
14,471
38,063
14,471
47,324
18,104
47,324
18,104

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

25
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Revaluations
20,679
20,679
AIRQUEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
25
Deferred taxation
(Continued)
- 34 -
Liabilities
Liabilities
2023
2022
Company
£
£
Revaluations
20,679
20,679
There were no deferred tax movements in the year.
26
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
22,654
22,858

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

27
Share capital
Group and company
2023
2022
Ordinary share capital
£
£
Issued and fully paid
D Ordinary shares of £1 each
128,750
128,750
E Ordinary shares of £1 each
14,306
14,306
143,056
143,056

D Ordinary and E Ordinary shares rank pari passu and are each entitled to one vote in any circumstances, pari passu to dividend payments or any distribution, and pari passu to participate in a distribution arising from a winding up of the company.

28
Non-distributable profits reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning and end of the year
26,681
26,681
-
-

Non-distributable reserves relate to the Legal Reserve held by Romanian subsidiary Airquee SRL. As required in Romania, 5% of pre-tax profits are required to be transferred to a Legal Reserve until the value of the Legal Reserve reaches 20% of its issued share capital.

AIRQUEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
29
Reserves
Profit and loss reserves

Included within profit and loss reserves is a non-distributable total of £62,036 (2022: £62,036) in respect of the revaluation of investment property, net of deferred tax.

30
Financial commitments, contingencies and liabilities

Group
At the reporting date, the group had operating lease commitments of £Nil (2022: £12,393).

 

At the reporting date, the group had no other commitments or contingencies.

 

Company
The company is part of a cross guarantee and debenture in favour of the bank involving a related company. At 31 December 2023 the maximum extent of this guarantee amounted to £361,039 (2022: £557,836).

 

At the reporting date, the company had operating lease commitments of £Nil (2022: £Nil).

 

At the reporting date, the company had no other commitments or contingencies.

31
Capital commitments

There were no capital commitments as at the reporting date (2022: £Nil).

AIRQUEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 36 -
32
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Company
Entities over which the company has control, joint control or significant influence
61,975
40,289
5,281,627
3,438,783

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Company
Other related parties
370,821
343,252

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Company
Entities over which the company has control, joint control or significant influence
3,723,694
3,998,665
Other related parties
991,917
738,582
Other information

During the year, the company paid rent of £52,000 (2022: £28,500) to a company in which Mr M John is a director.

33
Directors' transactions

Dividends totalling £3,000 (2022: £Nil) were paid in the year in respect of shares held by the company's directors.

 

Rent of £2,100 (2022: £2,100) was paid to directors in the year for use of offices.

 

During the year, the company had further transactions with directors as follows:

Description
Year
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Directors
2023
91,031
95,102
2,259
(126,478)
61,914
Directors
2022
183,347
40,234
1,904
(134,454)
91,031
AIRQUEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 37 -
34
Controlling party

The director Mr M John is the ultimate controlling party in the both the current and previous period.

35
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
1,396,103
977,356
Adjustments for:
Taxation charged
172,700
29,637
Finance costs
18,256
13,494
Investment income
(13,404)
(2,331)
Loss/(gain) on disposal of tangible fixed assets
7,258
(5,879)
Amortisation and impairment of intangible assets
29,284
-
Depreciation and impairment of tangible fixed assets
171,595
133,573
Movements in working capital:
Increase in stocks
(45,849)
(1,017,711)
Increase in debtors
(564,846)
(165,008)
(Decrease)/increase in creditors
(157,181)
612,533
Cash generated from operations
1,013,916
575,664
36
Analysis of changes in net funds - group
1 January 2023
Cash flows
New finance leases
31 December 2023
£
£
£
£
Cash at bank and in hand
1,861,035
467,576
-
2,328,611
Borrowings excluding overdrafts
(263,573)
54,843
-
(208,730)
Obligations under finance leases
(18,104)
26,972
(56,192)
(47,324)
1,579,358
549,391
(56,192)
2,072,557
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