Company registration number 03413858 (England and Wales)
STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
COMPANY INFORMATION
Directors
K O N Olsen
J Tveraabak
Company number
03413858
Registered office
Neo Park
Wharfdale Road
Birmingham
West Midlands
B11 2DF
Auditor
Ormerod Rutter Limited
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
Bankers
National Westminster Bank Plc
1 St Phillips Place
Birmingham
West Midlands
B3 2PP
STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 25
STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

Overall, revenue and profitability declined in 2023. This is due to the economic environment and external market conditions, causing our clients to put their investments on hold. As a particularly project-oriented business, StrongPoint ALS UK was negatively impacted during the year by the postponements of planned projects. As a mitigation action, StrongPoint ALS UK completed cost saving measures at the end of 2023 to align with the short-term market conditions.

In addition, a transfer of the e-commerce business was merged into StrongPoint ALS UK during the year. This will strengthen our commercial ability to win new e-commerce projects and generate future sales. In January 2024, this materialized into a significant win of an e-Commerce order picking contract with one of the UK’s largest grocery retailers. This will generate revenue in 2024 and importantly demonstrates the capability of the products and the strategic value of StrongPoint as the technology partner of choice.

Whilst 2024 still shows a degree of uncertainty in the market, the company continues to be a considered choice by our respected customers, who are continuously looking to improve profitability, increase capacity and maximise their customer experience. Our solutions will help them achieve these strategic aims and we are extremely focused on being recognised as the innovative solutions partner of choice to the UK grocery retailers.

Principal risks and uncertainties

Competitive pressure in the retail sector is a continuing risk for all companies in the sector but to manage this risk, the company continues to focus on the delivery of high-quality service to its customers and excellence in execution. Building strong relationships with existing customers and continuing to expand both its customer base and the range of products available that will assist in meeting the changing needs of the marketplace.

Future Developments

In February 2024, a new Managing Director joined the company, with extensive grocery retail experience. The company will seek to develop business through close working relationships with its customers and meeting the needs of those customers.

Key Performance Indicators

We measure performance based upon turnover, gross profit margin and the cash position of the entity. Turnover decreased by 27% from 2022. Gross profit margin slightly decreased to 29.4% in 2023 from a margin of 31.3% in 2022. A loss was made during 2023 which is largely as a result of the transfer of the e-commerce business.

 

Cash at the year end was £1.3m compared to £3.0 million in 2022.

 

Overall despite the loss for 2023 the company balance sheet continues to show a strong net asset position which is in excess of £5.3 million.

On behalf of the board

J Tveraabak
Director
1 March 2024
STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

 

Change of company name

On 3 November 2023, the members of the company passed an ordinary resolution to change the name of the company to StrongPoint ALS UK Limited from Air Link Systems Limited.

Principal activities

The principal activity of the company continued to be that of fit-out operations across the retail, banking and leisure sectors of industry.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Mr S J Smith
(Resigned 13 November 2023)
Ms H E H Gilen
(Resigned 24 May 2023)
K O N Olsen
J Tveraabak
Financial risk management
Liquidity Risk

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Credit Risk

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Business Risk

The company's business may be affected by fluctuations in the price of and supply of key products although purchasing practices seek to mitigate this exposure.

Research and development

The company engaged in research and development activities in the financial year.

Future developments

Information about future developments can be found within the strategic report on page 1.

Auditor

The auditors, Ormerod Rutter Limited, will be proposed for re-appointment in accordance with Section 487(2) of the Companies Act 2006.

STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

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

 

 

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

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
J Tveraabak
Director
1 March 2024
STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
- 4 -
Opinion

We have audited the financial statements of StrongPoint ALS UK Limited (formerly Air Link 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 notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
- 5 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
- 6 -

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

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

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

There are inherent limitations in the audit procedures described above. We are likely to become aware of instances of non-compliance with laws and regulations which are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, intentional misstatement or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Peter Ormerod FCA
Senior Statutory Auditor
For and on behalf of Ormerod Rutter Limited
1 March 2024
Chartered Accountants
Statutory Auditor
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
20,081,265
27,448,615
Cost of sales
(14,186,207)
(18,854,562)
Gross profit
5,895,058
8,594,053
Administrative expenses
(7,421,804)
(5,243,105)
Operating (loss)/profit
4
(1,526,746)
3,350,948
Interest receivable and similar income
8
76,701
4,712
Interest payable and similar expenses
9
(105,745)
(42,592)
Amounts written off investments
10
-
(175,518)
(Loss)/profit before taxation
(1,555,790)
3,137,550
Tax on (loss)/profit
11
384,085
(650,795)
(Loss)/profit for the financial year
(1,171,705)
2,486,755

The profit and loss account has been prepared on the basis that all operations are continuing operations.

STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
13
1,731
-
0
Tangible assets
14
109,116
28,043
Investments
15
1
1
110,848
28,044
Current assets
Stocks
17
1,230,220
1,025,384
Debtors
19
7,509,947
8,397,148
Cash at bank and in hand
1,266,977
3,020,837
10,007,144
12,443,369
Creditors: amounts falling due within one year
20
(4,817,079)
(5,998,795)
Net current assets
5,190,065
6,444,574
Net assets
5,300,913
6,472,618
Capital and reserves
Called up share capital
24
400
400
Profit and loss reserves
25
5,300,513
6,472,218
Total equity
5,300,913
6,472,618

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 1 March 2024 and are signed on its behalf by:
J  Tveraabak
Director
Company registration number 03413858 (England and Wales)
STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
400
4,654,219
4,654,619
Year ended 31 December 2022:
Profit and total comprehensive income
-
2,486,755
2,486,755
Dividends
12
-
(668,756)
(668,756)
Balance at 31 December 2022
400
6,472,218
6,472,618
Year ended 31 December 2023:
Loss and total comprehensive income
-
(1,171,705)
(1,171,705)
Balance at 31 December 2023
400
5,300,513
5,300,913
STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
1
Accounting policies
Company information

StrongPoint ALS UK Limited (formerly Air Link Systems Limited) is a private company limited by shares incorporated in England and Wales. The registered office is Neo Park, Wharfdale Road, Birmingham, West Midlands, United Kingdom, B11 2DF.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of StrongPoint ASA, a company registered in Norway. These consolidated financial statements are available from its registered office Slynga 10, 2005 Rælingen, Norway.

The financial statements contain information about StrongPoint ALS UK Limited (formerly Air Link Systems Limited) as an individual company only and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements on the basis that it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of the ultimate parent company StrongPoint ASA, a company registered in Norway.

1.2
Going concern

These financial statements have been drawn up on the going concern basis. If the going concern basis were not appropriate, adjustments would have been made to reduce assets to recoverable amounts, to provide for any further liabilities that might arise, and to re-classify fixed assets as current assets and long term liabilities as current liabilities.true

STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -
1.3
Turnover

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

When cash inflows are deferred and represent a financial arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is deemed to be 10 years.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
33% on cost, 13% on cost and 10% on cost
Plant and equipment
20% on cost
Fixtures and fittings
33% on cost
Motor vehicles
25% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Leasehold improvements are depreciated using the rate that best corresponds to the expected remaining period of usage of the leased property.

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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

 

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

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

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

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

 

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

 

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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

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

STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

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

1.16
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

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

Tangible fixed asset useful economic lives

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful lives and residual values are reassessed annually and are amended when necessary to reflect current estimates.

Deferred tax

Deferred tax assets are only recognised to the extent to which it can be regarded as more likely than not that the company with generated sufficient future taxable profits from which the reversal of the underlying timing differences can be deducted.

STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Construction contracts
20,081,265
27,448,615
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
19,697,116
26,400,529
Republic of Ireland
276,339
1,033,349
Other European countries
107,055
12,648
Other overseas countries
755
2,089
20,081,265
27,448,615
2023
2022
£
£
Other revenue
Interest income
76,701
4,712
4
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange losses
813
16,024
Depreciation of owned tangible fixed assets
23,621
108,158
Profit on disposal of tangible fixed assets
-
(4,249)
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
26,650
14,000
STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
238,135
100,991
Company pension contributions to defined contribution schemes
1,211
-
239,346
100,991
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
129,268
-
Company pension contributions to defined contribution schemes
1,211
-
7
Employees

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

2023
2022
Number
Number
Total
61
58

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,530,746
2,728,672
Social security costs
316,929
244,590
Pension costs
71,332
42,221
3,919,007
3,015,483
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
76,701
4,712
STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
12,512
9,804
Interest payable to group undertakings
93,233
32,788
105,745
42,592
10
Amounts written off investments
2023
2022
£
£
Amounts written back to/(written off) current loans
-
(175,518)
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
649,513
Deferred tax
Origination and reversal of timing differences
(384,085)
1,282
Total tax (credit)/charge
(384,085)
650,795

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

2023
2022
£
£
(Loss)/profit before taxation
(1,555,790)
3,137,550
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(295,600)
596,135
Tax effect of expenses that are not deductible in determining taxable profit
19,730
41,851
Tax effect of income not taxable in determining taxable profit
(14,573)
-
0
Effect of change in corporation tax rate
(92,724)
-
0
Group relief
-
0
(5,164)
Permanent capital allowances in excess of depreciation
(102)
(722)
Depreciation on assets not qualifying for tax allowances
898
16,645
Deferred tax adjustments in respect of prior years
(1,714)
-
0
Other short term timing differences
-
0
2,050
Taxation (credit)/charge for the year
(384,085)
650,795
STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
12
Dividends
2023
2022
£
£
Interim paid
-
0
668,756
13
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2023
-
0
Transfers
1,731
At 31 December 2023
1,731
Amortisation and impairment
At 1 January 2023 and 31 December 2023
-
0
Carrying amount
At 31 December 2023
1,731
At 31 December 2022
-
0
14
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
910,803
71,764
488,186
62,061
1,532,814
Additions
-
0
-
0
101,576
-
0
101,576
Transfers
-
0
-
0
3,118
-
0
3,118
At 31 December 2023
910,803
71,764
592,880
62,061
1,637,508
Depreciation and impairment
At 1 January 2023
906,076
68,594
479,514
50,587
1,504,771
Depreciation charged in the year
4,727
797
8,004
10,093
23,621
At 31 December 2023
910,803
69,391
487,518
60,680
1,528,392
Carrying amount
At 31 December 2023
-
0
2,373
105,362
1,381
109,116
At 31 December 2022
4,727
3,170
8,672
11,474
28,043
STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
15
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
16
1
1

Air Link Services Limited

Included in fixed asset investments held by the company is one non-voting Ordinary B share in Air Link Services Limited, a company which has not traded in 2023 and is to be struck off post year end. 100% of the Ordinary A shares of Air Link Services Limited are owned by Air Link Group Limited, the parent company of StrongPoint ALS UK Limited (formerly Air Link Systems Limited).

 

Strongpoint ASA (Norway) prepares consolidated accounts which include StrongPoint ALS UK Limited (formerly Air Link Systems Limited) and Air Link Group Limited.

16
Subsidiaries

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

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Encore Limited
Bulgaria
Business management
Ordinary
100.00

On 30 September 2022 Encore Limited, a company registered in Bulgaria, was acquired by a transfer of shares from another related entity at par value. No funds were exchanged for the transfer of these shares, hence the investment is deemed at nil cost.

17
Stocks
2023
2022
£
£
Raw materials and consumables
1,230,220
1,025,384
18
Construction contracts
2023
2022
£
£
Contracts in progress at the reporting date
Gross amounts owed by contract customers included in debtors
260,914
648,486
Contract revenues recognised
Contract costs incurred plus recognised profits less recognised losses to date
20,081,265
27,448,615
STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
19
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
4,644,112
5,907,530
Gross amounts owed by contract customers
260,914
648,486
Corporation tax recoverable
310,728
-
0
Amounts owed by group undertakings
1,321,687
1,445,970
Other debtors
127,835
106,182
Prepayments and accrued income
458,323
286,717
7,123,599
8,394,885
Deferred tax asset (note 22)
386,348
2,263
7,509,947
8,397,148
20
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
21
1,055
-
0
Trade creditors
2,681,289
3,734,286
Amounts owed to group undertakings
1,270,275
-
0
Corporation tax
-
0
436,735
Other taxation and social security
118,006
1,527,524
Other creditors
366,581
109,597
Accruals and deferred income
379,873
190,653
4,817,079
5,998,795
21
Loans and overdrafts
2023
2022
£
£
Bank overdrafts
1,055
-
0
Payable within one year
1,055
-
0
STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
22
Deferred taxation

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

Assets
Assets
2023
2022
Balances:
£
£
Accelerated capital allowances
(17,902)
2,263
Tax losses
400,696
-
Retirement benefit obligations
3,554
-
386,348
2,263
2023
Movements in the year:
£
Asset at 1 January 2023
(2,263)
Credit to profit or loss
(291,361)
Effect of change in tax rate - profit or loss
(92,724)
Asset at 31 December 2023
(386,348)
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
71,332
42,221

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

Pension commitment amounts outstanding at the year end amounted to £31,817 (2022: £10,102).

24
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
400
400
400
400
25
Profit and loss reserves

This represents the accumulated realised earnings from the prior and current periods as reduced by losses and dividends from time to time.

STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
26
Operating lease commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
442,876
444,700
Between two and five years
1,617,476
1,963,335
In over five years
1,528,748
1,447,399
3,589,100
3,855,434
27
Related party transactions
Transactions with related parties

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

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Other related parties
77,925
1,034,609
105
219,755
Management charges payable/(receivable)
Interest charges payable/(receivable)
2023
2022
2023
2022
£
£
£
£
Entities with control over the company
-
164,000
-
32,788

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due to related parties
£
£
Entities over which the entity has control
(1,270,275)
-

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Entities with control over the company
1,256,316
1,314,329
Other group entities
65,371
131,641
Other related parties
21,653
-
STRONGPOINT ALS UK LIMITED (FORMERLY AIR LINK SYSTEMS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
28
Ultimate controlling party

The immediate holding party is Air Link Group Limited, who own 100% of the issued ordinary shares.

 

The ultimate parent company and ultimate controlling party is Strongpoint ASA, a company registered in Norway, which owns 100% of the issued share capital in Air Link Group Limited.

 

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