Registration number:
Cirteq Limited
for the Year Ended 31 December 2023
Cirteq Limited
Contents
Strategic Report |
|
Director's Report |
|
Statement of Director's Responsibilities |
|
Independent Auditor's Report |
|
Profit and Loss Account |
|
Statement of Comprehensive Income |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Notes to the Financial Statements |
Cirteq Limited
Strategic Report for the Year Ended 31 December 2023
The director presents his strategic report for the year ended 31 December 2023.
Principal activity
The principal activity of the company is the manufacture and distribution of circlips, retaining rings and spring pressings.
Fair review of the business
The directors report the continuing global uncertainty in raw material and energy prices was still impacting the business. Comparable turnover fallen by 6.7%. The rate of gross profit to turnover was 15.2% in the year under review, compared with 9.5% in the previous period. Operating profit was £1,036,604 in the 12 months under review, compared with £182,574 in the previous 12 months.
The company continues to experience comfortable levels of headroom in its borrowing facilities.
The directors continue to monitor the company’s performance with care, with particular emphasis on mitigation of adverse exchange rate movements.
Principal risks and uncertainties
The company invoices a significant amount of its turnover in EUR and USD, and therefore there is a risk that prices when converted to GBP are subject to fluctuation.
The directors consider that the company enjoys a satisfactory credit rating with the major credit reference agencies and the company operates a strict policy of always paying its suppliers within agreed credit terms.
At 31 December 2023 the company’s gearing (external borrowings less cash at bank and in hand versus shareholders’ funds) was (2.0%) (31 December 2022: (20.0%)).
The company has an invoice discounting facility with HSBC, advancing funds (if required) within 24 hours of shipment and invoicing. At the date of this report, the headroom (unutilised borrowing capability) on this facility was in excess of £2.0 million.
The global increase in raw material and energy prices is still impacting the business, and the management team are continuing to strive and limit this impact to Cirteq by passing some of these increases onto customers, as well as introducing energy saving initiatives.
Approved and authorised by the
......................................... |
Cirteq Limited
Director's Report for the Year Ended 31 December 2023
The director presents his report and the financial statements for the year ended 31 December 2023.
Directors of the company
The directors who held office during the year were as follows:
Employment of disabled persons
Applications for employment made by disabled persons are given full and fair consideration for all vacancies in accordance with their particular aptitudes and abilities. In the event of employees becoming disabled, every effort is made to retrain them in order that their employment with the company may continue. It is the policy of the company that training, career development and employment opportunities should be available to all employees.
Employee involvement
The company has continued its practice of keeping employees informed of matters affecting them as employees and of the financial and economic factors affecting the performance of the company. This has been achieved through regular meetings of the employee-elected works council with the managing director and other members of the senior management team, the minutes of which are made available to all employees.
Disclosure of information to the auditors
The director has taken 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. The director confirms that there is no relevant information that he knows of and of which he knows the auditors are unaware.
Approved and authorised by the
......................................... |
Cirteq Limited
Statement of Director's Responsibilities
The director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.
Cirteq Limited
Independent Auditor's Report to the Members of Cirteq Limited
Opinion
We have audited the financial statements of Cirteq Limited (the 'company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, and 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 profit 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 auditor 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 director's 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Cirteq Limited
Independent Auditor's Report to the Members of Cirteq Limited
Opinion on other matter 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Director's 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:
• | 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 the director
As explained more fully in the Statement of Director's Responsibilities [set out on page 3], the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor 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.
In planning and designing our audit tests, we identify and assess the risks of material misstatement within the financial statements, whether due to fraud or error. Our assessment of these risks includes consideration of the nature of the industry and sector, the control environment and the business performance along with the results of our enquiries of management, about their own identification and assessment of the risks of irregularities. We are also required to perform specific procedures to respond to the risk of management override.
Following this assessment we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in evaluating the stock.
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, through discussions with directors and other management, and from our commercial knowledge and experience of the sector in which the company operates, to enable us to identify the key laws and regulations applicable to the company. 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, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation.
We then performed audit procedures after consideration of the above risks which included the following:
• |
assessing the validity of standard costs applied in the valuation of stock; |
Cirteq Limited
Independent Auditor's Report to the Members of Cirteq Limited
• |
obtaining a detailed understanding of the methodology adopted by management and the key assumptions underpinning the calculation of the variable and fixed overhead applied in the valuation of stock; |
• |
obtaining a detailed understanding of the methodology adopted by management and the key assumptions underpinning the calculation of the stock provision; |
• |
performing a retrospective review of the previous year’s stock provision to aid the consideration of the suitability of the methodology for the current year; |
• |
evaluating the consistency of the methodology used to calculate stock provisions and variable and fixed overhead absorption applied to stock against that applied in prior periods; |
• |
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
• |
enquiring of management concerning actual and potential litigation and claims; |
• |
reviewing correspondence with HMRC, and the company’s legal advisors; |
• |
reading minutes of meetings of those charged with governance; and |
• |
in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
All engagement team members were informed of the relevant laws and regulations and potential fraud risks at the planning stage and reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify such items.
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 auditor's report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
For and on behalf of
Statutory Auditors & Chartered Accountants
Cirteq Limited
Profit and Loss Account for the Year Ended 31 December 2023
Note |
31 December |
31 December |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Distribution costs |
( |
( |
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
1,036,604 |
182,574 |
|
Interest payable and similar expenses |
( |
( |
|
Profit before tax |
|
|
|
Tax on profit |
|
( |
|
Profit/(loss) for the financial year |
|
( |
Cirteq Limited
Statement of Comprehensive Income for the Year Ended 31 December 2023
2023 |
2022 |
|
Profit/(loss) for the year |
|
( |
Remeasurement gain/loss on defined benefit pension schemes |
( |
( |
Total comprehensive income for the year |
|
( |
Cirteq Limited
(Registration number: 03062174)
Balance Sheet as at 31 December 2023
Note |
2023 |
2022 |
|||
Fixed assets |
|||||
Tangible assets |
|
|
|||
Current assets |
|||||
Stocks |
|
|
|||
Debtors |
|
|
|||
Cash at bank and in hand |
|
|
|||
|
|
||||
Creditors: Amounts falling due within one year |
( |
( |
|||
Net current assets |
|
|
|||
Total assets less current liabilities |
|
|
|||
Creditors: Amounts falling due after more than one year |
( |
( |
|||
Net assets |
|
|
|||
Capital and reserves |
|||||
Called up share capital |
1,907,079 |
1,907,079 |
|||
Retained earnings |
6,495,065 |
5,534,523 |
|||
Shareholders' funds |
8,402,144 |
7,441,602 |
Approved and authorised by the
......................................... |
Cirteq Limited
Statement of Changes in Equity for the Year Ended 31 December 2023
Share capital |
Profit and loss account |
Total |
|
At 1 January 2023 |
|
|
|
Profit for the year |
- |
|
|
Other comprehensive income |
- |
( |
( |
Total comprehensive income |
- |
|
|
At 31 December 2023 |
|
|
|
Share capital |
Retained earnings |
Total |
|
At 1 January 2022 |
|
|
|
Loss for the year |
- |
( |
( |
Other comprehensive income |
- |
( |
( |
Total comprehensive income |
- |
( |
( |
At 31 December 2022 |
1,907,079 |
5,534,523 |
7,441,602 |
Cirteq Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
Principal accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were 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.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The company's functional and presentation currency is pounds sterling.
Summary of disclosure exemptions
The company has taken advantage of the exemptions available under FRS 102, Section 33 Related party disclosures and UK Statutory Instruments, 1 Sch.72 from disclosing transactions and balances with fellow group undertakings that are wholly owned.
The company has taken advantage of the exemption to disclose certain aspects of financial instruments, transactions with key management personnel and the exemption to prepare Statement of Cash Flows in accordance with Financial Reporting Standard 102 Section 1.12.
Group accounts not prepared
Cirteq Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Stock provision
The company makes an estimate of the recoverability of the cost of stock. When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials.
The carrying amount is £934,760 (2022 - £946,118).
Useful economic lives of tangible assets
The annual depreciation charge for tangible assets and their carrying amount is determined by the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually and amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. The carrying amount is £637,887 (2022 - £755,072).
Impairment of debtors
The company makes an estimate of the recoverable value of trade debtors. When assessing the impairment of trade debtors, management considers factors which include the current credit rating of the debtor, the ageing profile of debtors and historical experience. The carrying amount is £2,654,318 (2022 - £3,212,233).
Defined benefit pension scheme
The company has an obligation to pay pension benefits to certain employees and ex-employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends.
Revenue recognition
Turnover represents the amounts chargeable, net of value added tax, in respect of sale of goods and services to customers.
Revenue from the sale of goods is recognised when significant risks and benefits of ownership of the product have transferred to the buyer, which may be upon shipment, completion of the product or the product being ready for delivery, based on specific contract terms.
Foreign currency transactions and balances
Non-monetary items are measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Cirteq Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Plant and machinery |
10% to 25% straight line / reducing balance basis |
Computer equipment |
33.33% straight line basis |
Motor vehicles |
25% straight line basis |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Cirteq Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension plans
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
Defined benefit pension plans
Typically defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation.
The liability recognised in the Balance Sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the reporting date minus the fair value of plan assets. The defined benefit obligation is measured using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future payments by reference to market yields at the reporting date on high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability.
Actuarial gains and losses are charged or credited to other comprehensive income in the period in which they arise.
Cirteq Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Financial instruments
Basic financial assets, including trade and other receivables, are initially recognised at transaction price, 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 for a similar asset. Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 and any subsequent reversal is recognised in profit or loss.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
Financial liabilities
Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest for a similar debt instrument.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Turnover |
The analysis of the company's Turnover for the year by market is as follows:
2023 |
2022 |
|
UK |
|
|
Europe |
|
|
Rest of world |
|
|
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
2023 |
2022 |
|
Miscellaneous other operating income |
|
|
Cirteq Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Operating profit |
Arrived at after charging/(crediting)
2023 |
2022 |
|
Depreciation expense |
|
|
Foreign exchange losses/(gains) |
|
( |
Interest payable and similar expenses |
2023 |
2022 |
|
Interest on bank overdrafts and borrowings |
|
|
Other finance costs |
- |
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2023 |
2022 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
Cirteq Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:
2023 |
2022 |
|
Production |
|
|
Sales, marketing and distribution |
|
|
|
|
Directors' remuneration |
The director's remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
196,688 |
195,162 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2023 |
2022 |
|
Accruing benefits under money purchase pension scheme |
|
|
Auditors' remuneration |
2023 |
2022 |
|
Audit of the financial statements |
|
|
Taxation |
Tax charged/(credited) in the profit and loss account
2023 |
2022 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
|
Arising from changes in tax rates and laws |
- |
( |
Total deferred taxation |
( |
|
Cirteq Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2023 |
2022 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
( |
( |
(Decrease)/increase from tax losses for which no deferred tax asset was recognised |
( |
|
Total tax (credit)/charge |
( |
|
Deferred tax
Deferred tax assets and liabilities
2023 |
Asset |
Accelerated timing differences |
( |
Other short term timing differences |
|
Accumulated losses recognised |
|
|
2022 |
Asset |
Accelerated timing differences |
( |
Other short term timing differences |
|
Accumulated losses recognised |
|
|
The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £28,746 (2022 - £116,866).
Cirteq Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Tax relating to items recognised in other comprehensive income or equity
2023 |
2022 |
|
Deferred tax related to items recognised as items of other comprehensive income |
- |
( |
The company has £3,086,102 (2022 - £3,899,757) of unutilised trading tax losses carried forward.
Tangible assets |
Plant and machinery |
Computer equipment |
Motor vehicles |
Total |
|
Cost or valuation |
||||
At 1 January 2023 |
|
|
|
|
Additions |
- |
|
- |
|
At 31 December 2023 |
|
|
|
|
Depreciation |
||||
At 1 January 2023 |
|
|
|
|
Charge for the year |
|
|
|
|
At 31 December 2023 |
|
|
|
|
Carrying amount |
||||
At 31 December 2023 |
|
|
|
|
At 31 December 2022 |
|
|
|
|
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
2023 |
2022 |
|
Motor vehicles |
14,319 |
20,244 |
Cirteq Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Investments in subsidiaries, joint ventures and associates |
2023 |
2022 |
|
Investments in subsidiaries |
- |
- |
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Holding |
Proportion of voting rights and shares held |
||
2023 |
2022 |
Subsidiary undertakings |
||||
|
Ordinary |
|
|
|
|
Ordinary |
|
|
Stocks |
2023 |
2022 |
|
Raw materials and consumables |
|
|
Work in progress |
|
|
Finished goods and goods for resale |
|
|
|
|
Impairment of stocks
The movement in the impairment profit/( loss) included in profit and loss is £11,358 (2022 : -£94,319).
Cirteq Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Debtors |
Current |
Note |
2023 |
2022 |
Trade debtors |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
Deferred tax assets |
|
|
|
|
|
Details of non-current trade and other debtors
£447,600 (2022 - £379,122) of deferred tax is classified as non current.
Creditors |
Note |
2023 |
2022 |
|
Due within one year |
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Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Amounts due to related parties |
|
|
|
Social security and other taxes |
|
|
|
Outstanding defined contribution pension costs |
|
|
|
Other creditors |
|
|
|
Accruals |
|
|
|
|
|
||
Due after one year |
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Loans and borrowings |
|
|
Cirteq Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Loans and borrowings |
Current loans and borrowings
2023 |
2022 |
|
Bank borrowings |
- |
|
Finance lease liabilities |
|
|
Other borrowings |
|
|
|
|
Non-current loans and borrowings
2023 |
2022 |
|
Hire purchase contracts |
|
|
Bank borrowings
The bank loans and overdrafts are secured by way of fixed and floating charges over the assets of the company. |
Other borrowings
Hire purchase is denominated in £ with a nominal interest rate of 3.56%. The carrying amount at year end is £14,319 (2022 - £20,244).
Hire purchase liabilities are secured against the assets in which they relate.
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
Defined benefit pension schemes
The company operates two defined benefit schemes for the benefit of past and present employees. The assets of the schemes are administered by trustees in funds independent of the assets of the company. Both these schemes are paid up.
The most recent formal funding valuation performed by an independent actuary for the trustees of the schemes was carried out on 1 April 2021. FRS 102 allows those results to be approximately updated to estimate the Scheme liabilities, therefore the valuation has been updated to 31 December 2023 to produce the following disclosure.
Cirteq Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Reconciliation of scheme assets and liabilities to assets and liabilities recognised
The amounts recognised in the balance sheet are as follows:
2023 |
2022 |
|
Fair value of scheme assets |
|
|
Present value of defined benefit obligation |
( |
( |
1,234,000 |
1,129,000 |
|
(1,234,000) |
(1,129,000) |
|
Defined benefit pension scheme surplus/(deficit) |
- |
- |
The surplus of the fair value of scheme assets over the present value of defined benefit obligation cannot be recovered through reduced contributions in future or through refunds and has therefore not been recognised in the financial statements in the current period.
Defined benefit obligation
Changes in the defined benefit obligation are as follows:
2023 |
|
Present value at start of year |
|
Interest cost |
|
Actuarial gains and losses |
|
Benefits paid |
( |
Present value at end of year |
|
Fair value of scheme assets
Changes in the fair value of scheme assets are as follows:
2023 |
|
Fair value at start of year |
|
Interest income |
|
Return on plan assets, excluding amounts included in interest income/(expense) |
|
Employer contributions |
|
Benefits paid |
( |
Fair value at end of year |
|
Analysis of assets
The major categories of scheme assets are as follows:
2023 |
2022 |
|
Cash and cash equivalents |
|
|
Equity instruments |
|
|
Corporate bonds |
|
|
100 |
100 |
Cirteq Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Return on scheme assets
2023 |
2022 |
|
Return on scheme assets |
|
( |
The Scheme has not invested in any of the company's own financial instruments or in properties or other assets used by the company.
Principal actuarial assumptions
The principal actuarial assumptions used to update the valuation at the balance sheet date are as follows:
CPI assumption used for increases to pensions in payment which are due to increase in line with CPI.
2023 |
2022 |
|
Discount rate |
|
|
Retail price inflation |
|
|
Inflation |
|
|
Post retirement mortality assumptions
2023 |
2022 |
|
Current UK pensioners at retirement age - male |
20.50 |
21.00 |
Current UK pensioners at retirement age - female |
22.70 |
23.10 |
Future UK pensioners at retirement age - male |
21.70 |
22.30 |
Future UK pensioners at retirement age - female |
24.10 |
24.50 |
The most recent formal funding valuation performed by an independent actuary for the trustees of the schemes was carried out on 1 April 2021. FRS 102 allows those results to be approximately updated to estimate the Scheme liabilities, therefore the valuation has been updated to 31 December 2023 to produce the following disclosure.
The total cost relating to the Scheme for the year recognised in profit or loss as an expense was £Nil (2022 - £1,000).
Reconciliation of scheme assets and liabilities to assets and liabilities recognised
The amounts recognised in the balance sheet are as follows:
2023 |
2022 |
|
Fair value of scheme assets |
|
|
Present value of defined benefit obligation |
( |
( |
1,731,000 |
1,568,000 |
|
(1,731,000) |
(1,568,000) |
|
Defined benefit pension scheme surplus/(deficit) |
- |
- |
Cirteq Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Defined benefit obligation
Changes in the defined benefit obligation are as follows:
2023 |
|
Present value at start of year |
|
Interest cost |
|
Actuarial gains and losses |
|
Benefits paid |
( |
Present value at end of year |
|
Fair value of scheme assets
Changes in the fair value of scheme assets are as follows:
2023 |
|
Fair value at start of year |
|
Interest income |
|
Return on plan assets, excluding amounts included in interest income/(expense) |
|
Employer contributions |
|
Benefits paid |
( |
Fair value at end of year |
|
Analysis of assets
The major categories of scheme assets are as follows:
2023 |
2022 |
|
Cash and cash equivalents |
|
|
Equity |
|
|
Corporate bonds |
|
|
Property |
|
|
100 |
100 |
Return on scheme assets
2023 |
2022 |
|
Return on scheme assets |
|
( |
The Scheme has not invested in any of the company's own financial instruments or in properties or other assets used by the company.
Principal actuarial assumptions
The principal actuarial assumptions used to update the valuation at the balance sheet date are as follows:
Cirteq Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
2023 |
2022 |
|
Discount rate |
|
|
Retail price inflation |
|
|
Inflation |
|
|
CPI assumption was used for increases to pensions in payment which are due to increase in line with CPI.
Post retirement mortality assumptions
2023 |
2022 |
|
Current UK pensioners at retirement age - male |
18.80 |
19.30 |
Current UK pensioners at retirement age - female |
20.90 |
21.40 |
Future UK pensioners at retirement age - male |
20.00 |
20.60 |
Future UK pensioners at retirement age - female |
22.30 |
22.80 |
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
1,907,079 |
|
1,907,079 |
Rights, preferences and restrictions
Ordinary shares have the following rights, preferences and restrictions: |
Reserves |
Share capital
Represents the nominal value of issued shares.
Profit and loss account
Includes all current and prior periods distributable profits and losses.
Cirteq Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Obligations under leases and hire purchase contracts |
Finance leases
The total of future minimum lease payments is as follows:
2023 |
2022 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
2023 |
2022 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Cirteq Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Related party transactions |
Summary of transactions with other related parties
Expenditure with and payables to related parties
31 December 2023 |
Other related parties |
Purchase of goods |
|
Rendering of services |
- |
Settlement of liabilities |
|
|
|
|
31 December 2022 |
Other related parties |
Purchase of goods |
|
Rendering of services |
|
Settlement of liabilities |
|
|
|
|
Parent and ultimate parent undertaking |
The company's immediate parent is
The most senior parent entity producing publicly available financial statements is
The ultimate controlling parties are