Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31105932023-01-01falsefalsefalseNo description of principal activity 02312905 2023-01-01 2023-12-31 02312905 2022-01-01 2022-12-31 02312905 2023-12-31 02312905 2022-12-31 02312905 2022-01-01 02312905 c:Director1 2023-01-01 2023-12-31 02312905 c:Director2 2023-01-01 2023-12-31 02312905 c:Director3 2023-01-01 2023-12-31 02312905 c:RegisteredOffice 2023-01-01 2023-12-31 02312905 d:PlantMachinery 2023-01-01 2023-12-31 02312905 d:PlantMachinery 2023-12-31 02312905 d:PlantMachinery 2022-12-31 02312905 d:PlantMachinery d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02312905 d:PlantMachinery d:LeasedAssetsHeldAsLessee 2023-01-01 2023-12-31 02312905 d:MotorVehicles 2023-01-01 2023-12-31 02312905 d:MotorVehicles 2023-12-31 02312905 d:MotorVehicles 2022-12-31 02312905 d:MotorVehicles d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02312905 d:MotorVehicles d:LeasedAssetsHeldAsLessee 2023-01-01 2023-12-31 02312905 d:FurnitureFittings 2023-01-01 2023-12-31 02312905 d:FurnitureFittings 2023-12-31 02312905 d:FurnitureFittings 2022-12-31 02312905 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02312905 d:FurnitureFittings d:LeasedAssetsHeldAsLessee 2023-01-01 2023-12-31 02312905 d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02312905 d:LeasedAssetsHeldAsLessee 2023-01-01 2023-12-31 02312905 d:CurrentFinancialInstruments 2023-12-31 02312905 d:CurrentFinancialInstruments 2022-12-31 02312905 d:Non-currentFinancialInstruments 2023-12-31 02312905 d:Non-currentFinancialInstruments 2022-12-31 02312905 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 02312905 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 02312905 d:Non-currentFinancialInstruments d:AfterOneYear 2023-12-31 02312905 d:Non-currentFinancialInstruments d:AfterOneYear 2022-12-31 02312905 e:UnitedKingdom 2023-01-01 2023-12-31 02312905 e:UnitedKingdom 2022-01-01 2022-12-31 02312905 e:RestEuropeOutsideUK 2023-01-01 2023-12-31 02312905 e:RestEuropeOutsideUK 2022-01-01 2022-12-31 02312905 d:UKTax 2023-01-01 2023-12-31 02312905 d:UKTax 2022-01-01 2022-12-31 02312905 d:ShareCapital 2023-12-31 02312905 d:ShareCapital 2022-12-31 02312905 d:ShareCapital 2022-01-01 02312905 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 02312905 d:RetainedEarningsAccumulatedLosses 2023-12-31 02312905 d:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 02312905 d:RetainedEarningsAccumulatedLosses 2022-12-31 02312905 d:RetainedEarningsAccumulatedLosses 2022-01-01 02312905 d:AcceleratedTaxDepreciationDeferredTax 2023-12-31 02312905 d:AcceleratedTaxDepreciationDeferredTax 2022-12-31 02312905 d:OtherDeferredTax 2023-12-31 02312905 d:OtherDeferredTax 2022-12-31 02312905 c:OrdinaryShareClass1 2023-01-01 2023-12-31 02312905 c:OrdinaryShareClass1 2023-12-31 02312905 c:OrdinaryShareClass1 2022-12-31 02312905 c:FRS102 2023-01-01 2023-12-31 02312905 c:Audited 2023-01-01 2023-12-31 02312905 c:FullAccounts 2023-01-01 2023-12-31 02312905 c:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 02312905 d:WithinOneYear 2023-12-31 02312905 d:WithinOneYear 2022-12-31 02312905 d:BetweenOneFiveYears 2023-12-31 02312905 d:BetweenOneFiveYears 2022-12-31 02312905 d:MoreThanFiveYears 2023-12-31 02312905 d:MoreThanFiveYears 2022-12-31 02312905 d:HirePurchaseContracts d:WithinOneYear 2023-12-31 02312905 d:HirePurchaseContracts d:WithinOneYear 2022-12-31 02312905 d:HirePurchaseContracts d:BetweenOneFiveYears 2023-12-31 02312905 d:HirePurchaseContracts d:BetweenOneFiveYears 2022-12-31 02312905 2 2023-01-01 2023-12-31 02312905 d:PlantMachinery d:LeasedAssetsHeldAsLessee 2023-12-31 02312905 d:PlantMachinery d:LeasedAssetsHeldAsLessee 2022-12-31 02312905 d:LeasedAssetsHeldAsLessee 2023-12-31 02312905 d:LeasedAssetsHeldAsLessee 2022-12-31 02312905 f:PoundSterling 2023-01-01 2023-12-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 02312905










JALTEK SYSTEMS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
JALTEK SYSTEMS LIMITED
 
 
COMPANY INFORMATION


Directors
John Steven Pittom 
Anmol Kumar Sood 
Pravin Kumar Sood 




Registered number
02312905



Registered office
Unit 13 Sundon Business Park
Dencora Way

Sundon Park

Luton

Bedfordshire

LU3 3HP




Independent auditor
MHA
Chartered Accountants & Statutory Auditors

2 London Wall Place

London

EC2Y 5AU





 
JALTEK SYSTEMS LIMITED
 

CONTENTS



Page
Strategic Report
1
Directors' Report
2 - 3
Independent Auditor's Report
4 - 7
Statement of Comprehensive Income
8
Balance Sheet
9
Statement of Changes in Equity
10
Notes to the Financial Statements
11 - 26


 
JALTEK SYSTEMS LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The Company’s principal activity is to provide contract electronic manufacturing to a wide range of customers from varying sectors including defense, civil aviation and medical. The services offered cover a full turnkey solution.
The Directors strategy is to strengthen and increase customer relationships by offering a wider range of synergistic service offerings, closely controlled by the quality, processes and systems that the Company has been founded on.
The Company saw an increase in top line revenue with turnover for the 2023 financial year being £15.62 million (2022: £13.94 million), which represents an increase of 12% on prior year’s performance. 
In terms of overheads, overall costs have increased to 22.5% of turnover (2022: 21.5%).  
The Directors plan to continue to develop the synergies realised through our relationship with Jaltek Design Services Limited and expect this to deliver high quality new client relationships that in turn should crystalise additional revenues in 2024 and beyond.

Principal risks and uncertainties
 
The continuation of service to our customers is the most important aspect of our service delivery, closely followed by physical security of the site and customer areas and equipment. The status of these areas is measured continuously, 24 hours of every day, and performance reported monthly to the board. 
The Directors have an ongoing program of investment in these areas to ensure customer services remain at the highest expected levels. The Directors are also encouraging its customers to monitor and review all aspects of our services to ensure they adhere to or exceed standards they would expect. 
 
The business has systems are in place to monitor actual performance against what is expected. Liquidity and cash flow risks are mitigated through trading cashflows. The Directors do not consider price or credit risk to be significant with adequate controls in place.

Financial key performance indicators
 
The board manages the Company's business by reference to a range of key performance indicators. The principal indicators include margin, sales and customer satisfaction. In 2023 profit margins and sales returned to levels experienced before the difficulties encountered in 2020 and 2021. Customer satisfaction was again considered satisfactory.


This report was approved by the board and signed on its behalf.



Pravin Kumar Sood
Director

Date: 17 September 2024

Page 1

 
JALTEK SYSTEMS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors

The Directors who served during the year were:

John Steven Pittom 
Anmol Kumar Sood 
Pravin Kumar Sood 

Results and dividends

The profit for the year, after taxation, amounted to £1,023,888 (2022 - £748,365).

No dividends were payable during the year (2022: £nil).

Directors' responsibilities statement

The Directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the Directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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

Matters included in the Strategic Report

In accordance with section 414C of the Companies Act 2006 the Directors have chosen to include the following
items in the Strategic Report:
-  Strategy of the Company
-  Risks and performance
-  Future developments

Page 2

 
JALTEK SYSTEMS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditor

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

This report was approved by the board and signed on its behalf.
 





Pravin Kumar Sood
Director

Date: 17 September 2024

Page 3

 
JALTEK SYSTEMS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JALTEK SYSTEMS LIMITED
 

Opinion


We have audited the financial statements of Jaltek Systems Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Page 4

 
JALTEK SYSTEMS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JALTEK SYSTEMS LIMITED (CONTINUED)


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 ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of Directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 2, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


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


Page 5

 
JALTEK SYSTEMS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JALTEK SYSTEMS LIMITED (CONTINUED)


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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

enquiry of management, those charged with governance around actual and potential litigation and claims;
enquiry of entity staff in compliance functions to identify any instances of non-compliance with laws and
regulations;
performing audit work over the risk of management override of controls, including testing of journal entries
and other adjustments for appropriateness, evaluating the business rationale of significant transactions
outside the normal course of business and reviewing accounting estimates for bias;
reviewing minutes of meetings of those charged with governance;
reviewing financial statement disclosures and testing to supporting documentation to assess compliance with
applicable laws and regulations.
 
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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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.


Page 6

 
JALTEK SYSTEMS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JALTEK SYSTEMS LIMITED (CONTINUED)


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 2006Our 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.





Andrew Moyser ACA FCCA (Senior Statutory Auditor)
  
for and on behalf of
MHA
 
Chartered Accountants
Statutory Auditors
  
London, United Kingdom

25 September 2024
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).
Page 7

 
JALTEK SYSTEMS LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
15,619,883
13,939,692

Cost of sales
  
(10,860,420)
(10,185,931)

Gross profit
  
4,759,463
3,753,761

Administrative expenses
  
(3,431,242)
(3,000,376)

Other operating income
 5 
-
11,541

Operating profit
 6 
1,328,221
764,926

Interest payable and similar expenses
 10 
(328,117)
(202,997)

Profit before tax
  
1,000,104
561,929

Tax on profit
 11 
23,784
186,436

Profit for the financial year
  
1,023,888
748,365

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 11 to 26 form part of these financial statements.

Page 8

 
JALTEK SYSTEMS LIMITED
REGISTERED NUMBER: 02312905

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
1,533,894
1,412,563

  
1,533,894
1,412,563

Current assets
  

Stocks
 13 
2,078,827
2,257,987

Debtors: amounts falling due within one year
 14 
14,906,155
13,682,009

Cash at bank and in hand
 15 
145,371
88,708

  
17,130,353
16,028,704

Creditors: amounts falling due within one year
 16 
(8,229,248)
(8,000,619)

Net current assets
  
 
 
8,901,105
 
 
8,028,085

Total assets less current liabilities
  
10,434,999
9,440,648

Creditors: amounts falling due after more than one year
 17 
(51,489)
(100,026)

Provisions for liabilities
  

Deferred tax
 19 
(336,000)
(317,000)

  
 
 
(336,000)
 
 
(317,000)

Net assets
  
10,047,510
9,023,622


Capital and reserves
  

Called up share capital 
 20 
393,166
393,166

Profit and loss account
 21 
9,654,344
8,630,456

  
10,047,510
9,023,622


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 17 September 2024.




Pravin Kumar Sood
Director

The notes on pages 11 to 26 form part of these financial statements.

Page 9

 
JALTEK SYSTEMS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
393,166
7,882,091
8,275,257


Comprehensive income for the year

Profit for the year
-
748,365
748,365



At 1 January 2023
393,166
8,630,456
9,023,622


Comprehensive income for the year

Profit for the year
-
1,023,888
1,023,888


At 31 December 2023
393,166
9,654,344
10,047,510


The notes on pages 11 to 26 form part of these financial statements.

Page 10

 
JALTEK SYSTEMS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Jaltek Systems Limited is a private company limited by shares and incorporated in England and Wales. The registered office of the Company is  Unit 13 Sundon Business Park, Dencora Way, Sundon Park, Luton, Bedfordshire, LU3 3HP. 
The Company's principal activity is to provide contract electronic manufacturing to a wide range of customers from varying sectors including defence, civil aviation and medical. The services offered cover a full turnkey solution. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 11

 
JALTEK SYSTEMS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.4

Leased assets: the Company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 12

 
JALTEK SYSTEMS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Plant and machinery
-
20%
Motor vehicles
-
20%
Fixtures and fittings
-
20%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 13

 
JALTEK SYSTEMS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.10

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is 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.

 
2.11

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.13

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.14

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.15

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

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

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless
Page 14

 
JALTEK SYSTEMS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.15
Financial instruments (continued)

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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Page 15

 
JALTEK SYSTEMS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgments, 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 revision and future periods where the revision affects both current and future periods.
Critical estimates and assumptions
The following estimates and assumptions have had the most significant effect on amounts recognised in the financial statements.
Stocks
Judgments are made when considering if items within stock require a provision for diminution in value. Management base their assessments on the age of stocks and demand for products. Management believe that after applying the provision the value is a reasonable expectation of what could be obtained in the normal course of trade.
These judgments are reviewed regularly to reflect the changing environment.
Bad debt provisions
A full line by line review of trade and other receivables is carried out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provisions do not match the level of debts which ultimately prove to be unelectable.
Useful economic lives of tangible fixed assets
The useful economic lives used by the Group in respect of tangible fixed assets are set out in the accounting policies. These estimates are the best estimate based on past experience and expected performance and are regularly reviewed to ensure they remain appropriate. The net book value of tangible fixed assets as at 31 December 2023 was £1,533,894 after a depreciation charge in the year of £310,179.


4.


Turnover

The whole of the turnover is attributable to the main trading activity.

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
15,039,974
12,950,650

Rest of Europe
579,909
989,042

15,619,883
13,939,692


Page 16

 
JALTEK SYSTEMS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Other operating income

2023
2022
£
£

Foreign exchange difference - gain
-
11,541



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation
310,179
288,734

Exchange differences
23,508
-

Other operating lease rentals
216,742
150,005

Exceptional bad debt provision
-
289,395


7.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor:


2023
2022
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
22,800
21,750

.


Fees payable to the company's auditor in respect of:

2023
2022
£
£



Audit-related assurance services
19,400
18,500

Taxation compliance services
1,200
1,150

All other services
2,200
2,100

22,800
21,750

Page 17

 
JALTEK SYSTEMS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Employees

Staff costs, including Directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
3,668,915
2,957,478

Social security costs
348,233
302,557

Cost of defined contribution scheme
125,481
104,899

4,142,629
3,364,934


The average monthly number of employees, including the Directors, during the year was as follows:


        2023
        2022
            No.
            No.







Administration
19
12



IT
3
3



Logistics
12
10



Production
55
53



Production Engineering
13
12



Sales
3
3

105
93

The Directors are considered to be the only Key Management Personnel.


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
182,426
132,743

182,426
132,743


Page 18

 
JALTEK SYSTEMS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
90,200
56,581

Other loan interest payable
221,524
137,141

Finance leases and hire purchase contracts
16,393
9,275

328,117
202,997


11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
46,026
88,810

Adjustments in respect of previous periods
(88,810)
(292,246)


(42,784)
(203,436)


Total current tax
(42,784)
(203,436)

Deferred tax


Origination and reversal of timing differences
19,000
17,000

Total deferred tax
19,000
17,000


Tax on profit
(23,784)
(186,436)
Page 19

 
JALTEK SYSTEMS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 23.5% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,000,104
561,929


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
235,024
106,767

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
3,776
1,823

Research and development tax credit
(262,584)
(292,246)

Change in deferred tax rates
-
(2,780)

Total tax charge for the year
(23,784)
(186,436)


Factors that may affect future tax charges

With effect from 1 April 2023, the mainstream corporation tax rate increased from 19% to 25%.

Page 20

 
JALTEK SYSTEMS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Tangible fixed assets





Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 January 2023
3,362,189
18,800
1,390,318
4,771,307


Additions
213,203
55,583
162,724
431,510


Disposals
-
(18,800)
-
(18,800)



At 31 December 2023

3,575,392
55,583
1,553,042
5,184,017



Depreciation


At 1 January 2023
2,562,696
18,800
777,248
3,358,744


Charge for the year on owned assets
103,394
2,779
138,374
244,547


Charge for the year on financed assets
65,632
-
-
65,632


Disposals
-
(18,800)
-
(18,800)



At 31 December 2023

2,731,722
2,779
915,622
3,650,123



Net book value



At 31 December 2023
843,670
52,804
637,420
1,533,894



At 31 December 2022
799,493
-
613,070
1,412,563

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Plant and machinery
357,482
423,114

357,482
423,114

Page 21

 
JALTEK SYSTEMS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Stocks

2023
2022
£
£

Raw materials and consumables
1,760,008
1,553,627

Work in progress
318,819
704,360

2,078,827
2,257,987



14.


Debtors

2023
2022
£
£


Trade debtors
4,078,715
3,251,005

Amounts owed by group undertakings
10,496,214
10,055,347

Other debtors
41,464
34,834

Prepayments and accrued income
289,762
340,823

14,906,155
13,682,009



15.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
145,371
88,708


Page 22

 
JALTEK SYSTEMS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
2,315,361
2,130,251

Amounts owed to group undertakings
621,386
467,641

Amounts owed to related parties (see note 24)
1,091,538
1,091,267

Corporation tax
46,026
88,810

Other taxation and social security
324,537
317,308

Obligations under finance lease and hire purchase contracts
67,669
205,416

Other creditors
3,463,312
3,154,597

Accruals and deferred income
299,419
545,329

8,229,248
8,000,619


The following liabilities were secured:

2023
2022
£
£



Obligations under finance lease and hire purchase contracts
67,669
205,416

67,669
205,416

Details of security provided:

Obligations under finance lease and hire purchase contracts are secured on the relevant assets concerned.

Page 23

 
JALTEK SYSTEMS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Net obligations under finance leases and hire purchase contracts
51,489
100,026


The following liabilities were secured:

2023
2022
£
£



Obligations under finance lease and hire purchase contracts
51,489
100,026

51,489
100,026

Details of security provided:

Obligations under finance lease and hire purchase contracts are secured on the relevant assets concerned.


18.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
67,669
205,416

Between 1-5 years
51,489
100,026

119,158
305,442



Page 24

 
JALTEK SYSTEMS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Deferred taxation




2023


£






At beginning of year
317,000


Charged to profit or loss
19,000



At end of year
336,000

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
339,000
320,000

Pension cost accrual timing difference
(3,000)
(3,000)

336,000
317,000


20.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



7,863,329 (2022 - 7,863,329) Ordinary shares of £0.05 each
393,166
393,166



21.


Reserves

Profit and loss account

This reserve represents the accumulated profits and losses of the Company net of dividends paid.


22.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £125,481 (2022 - £104,899). Contributions totalling £24,568 (2022 - £21,660) were payable to the fund at the balance sheet date and are included in creditors.

Page 25

 
JALTEK SYSTEMS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

23.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
195,900
195,900

Later than 1 year and not later than 5 years
783,600
783,600

Later than 5 years
474,725
866,525

1,454,225
1,846,025


24.


Related party transactions

During the year, the Company had the following transactions with Wavesight Limited, a company in which P Sood and A Sood are directors. Total sales for the year were £36,667 (2022: £45,897). Total purchases for the year were £nil (2022: £nil). The amount due from Wavesight Limited at 31 December 2023 was £257,530 (2022: £222,133).
During the year, the company had the following transactions with Hidalgo Limited, a company in which P Sood and A Sood are directors. Total sales in the year were £303,522 (2022: £188,820). Total purchases for the year were £2,743 (2022: £2,078). The amount due from Hidalgo Limited at 31 December 2023 was £4,273,477 (2022: £1,516,855).
At the year end, there was an amount outstanding to Bermudiana Management Limited, a shareholder of Jaltek Holdings Limited, amounting to £1,091,538 (2022: £1,091,267) No guarantees have been given or received in respect of this amount.
At the year end, there were amounts owed to the Directors amounting to £1,891,990 (2022: £1,891,990). No guarantees have been given or received in respect of these amounts. Interest of £139,528 (2022: £146,416) was payable in respect of this amount.
In accordance with FRS 102 the Company has not disclosed transactions with fellow 100% group members.


25.


Controlling party

The immediate parent undertaking is Jaltek Holdings Limited.
The ultimate parent undertaking and the smallest and largest group to consolidate these financial statements is Jaltek Holdings Limited, a company incorporated in England and Wales. Copies of Jaltek Holdings Limited statements are available from Unit 13 Sundown Business Park, Dencora Way, Sundon Park, Luton, Bedfordshire, LU3 3HP, UK.
The ultimate controlling party, by virtue of a majority shareholding in Jaltek Holdings Limited, is the Jaltek Trust, a discretionary trust established in Jersey.

 
Page 26