Registration number:
Allied Protek Engineering Solutions Limited
for the Year Ended 31 January 2024
Allied Protek Engineering Solutions Limited
Contents
Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
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Consolidated Profit and Loss Account |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
Allied Protek Engineering Solutions Limited
Strategic Report for the Year Ended 31 January 2024
The directors present their strategic report for the year ended 31 January 2024.
Principal activity
The principal activity of the company is the design and build of bespoke equipment and systems.
The principal activity of the group is that of the design and build of bespoke equipment and systems, temporary employment agency, recruitment and training services.
Fair review of the business
The directors are pleased with the performance of the group over the 2024 year.
Group turnover in 2024 has increased 150%. The increase was achieved through successful tenders for new work and for new customers and also the addition of a new business within the year.
During the year the group has purchased the trade and assets of a business in Hull. This expanded the geographical footprint of the business into East Yorkshire as well as extending the range of services the group can offer.
The pressures on costs have continued in the period which has resulted in a decrease in the gross profit margin from 22% in 2023 to 19% in 2024. We continue to monitor the margin on projects and review costings at the tendering stage to maximise profitability.
This increase in trade has meant a significant cash investment into working capital which has resulted in the growth of net assets to £2,179k (2023 - £1,279k).
Whilst the inflationary pressures appear to be easing they continued to be a headwind for the UK economy in the 2024 year. However, the company has managed these and has a good order book. We therefore feel the company is in a strong position for future growth.
The group's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2024 |
2023 |
Turnover |
£000 |
35,668 |
14,290 |
Gross profit |
£000 |
6,851 |
3,146 |
Gross profit margin |
% |
19 |
22 |
Allied Protek Engineering Solutions Limited
Strategic Report for the Year Ended 31 January 2024
Principal risks and uncertainties
As with any business, the group faces risks and uncertainties in the course of its day to day operations. The successful management of risk is essential to enable the group to deliver its strategic objectives.
Noted below is a summary of the group’s principal risks and uncertainties.
Control of each of these is critical to the ongoing success of the group. As such, their management is primarily the responsibility of the directors who are supported by the management throughout the group.
Financial risk:
The group’s operations expose it to a variety of financial risks, principally credit risk and liquidity risk. The effects of credit risks are controlled by the adoption of policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. Liquidity risk is managed by monitoring the cash flow position to ensure that sufficient funds are available to meet amounts due for current and future operations.
Market risk:
In order to minimise exposure to market risk we undertake contracts with a variety of clients. We recognise the risk of not focusing on completing our contractual obligations and therefore strive to fulfil these to a good quality, time scale and budget. Our success in this area generates repeat custom and protects the group position in the market place.
Workforce and materials risk:
If the availability of skilled workers, subcontractors or materials is insufficient to meet demand, this could lead to longer lead times and increased costs, thereby reducing profitability and return on capital employed.
We maintain regular contact with suppliers, negotiating contract volumes, pricing and duration.
We have built good relationships with subcontractors as management believes that loyalty is gained by treating subcontractors fairly and expecting the same in return. For our own workforce, investment is continued to be made in their training and development.
Health and safety risk:
The group has procedures and policies in place to minimise health and safety risks. The directors take this responsibility seriously and in order to manage this risk procedures and policies are constantly being reviewed.
Approved by the
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Allied Protek Engineering Solutions Limited
Directors' Report for the Year Ended 31 January 2024
The directors present their report and the for the year ended 31 January 2024.
Directors of the group
The directors who held office during the year were as follows:
The following directors were appointed after the year end:
Information included in the Strategic Report
The objectives, policies and processes for managing the risks of the group and important events since the financial period end are included in the Strategic Report.
Research and development
Through the parent company, the group continues to utilise its technical expertise to make advancements in technology and produce specialist products and services to maximise the performance and capabilities of our customers. We continue to ensure our product development is designed in partnership with our customers to ensure that their exacting performance requirements are met.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved by the
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Allied Protek Engineering Solutions Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Allied Protek Engineering Solutions Limited
Independent Auditor's Report to the Members of Allied Protek Engineering Solutions Limited
Opinion
We have audited the financial statements of Allied Protek Engineering Solutions Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the group's and the parent company's affairs as at 31 January 2024 and of the group's profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and parent company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The 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.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
Allied Protek Engineering Solutions Limited
Independent Auditor's Report to the Members of Allied Protek Engineering Solutions Limited
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and 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 our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities, set out on page 4, 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:
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Allied Protek Engineering Solutions Limited
Independent Auditor's Report to the Members of Allied Protek Engineering Solutions Limited
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
|
• |
the nature of the industry and sector, control environment and business performance; |
• |
the group’s own assessment of the risks that irregularities may occur either as a result of fraud or error; |
• |
results of our enquiries of management about their own identification and assessment of the risks of irregularities; |
• |
the key laws and regulations under which the business operates and whether management were aware of any instances of noncompliance; |
• |
whether the management have knowledge of any actual, suspected or alleged fraud; |
• |
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and |
• |
the matters discussed among the audit engagement team, regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: valuation of work in progress; laws and regulations applicable to the company such as health and safety; transactions surrounding the processing of payroll; and purchase ledger/working capital transactions. |
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In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
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We also obtained an understanding of the legal and regulatory framework that the group and parent company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. These include, but are not limited to, compliance with the Companies Act 2006, pension legislation, health and safety legislation, tax legislation and local government grant legislation. |
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In addition to the above, our procedures to respond to risks identified included the following: |
|
• |
making enquiries of management relating to identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; |
• |
enquiring of management, concerning any actual and potential litigation and claims; |
• |
communicating the relevant identified laws and regulations and potential fraud risks to all engagement team members, and remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit; |
• |
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
• |
in addressing the risk of fraud in revenue recognition: we identified and tested the operating effectiveness of key controls over revenue recognition and have performed focussed testing on trades close to the year-end combined with analytical review procedures to assess accuracy and completeness of revenue recognised; |
Allied Protek Engineering Solutions Limited
Independent Auditor's Report to the Members of Allied Protek Engineering Solutions Limited
• |
in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business; |
• |
in addressing the risk of fraud due to the valuation of work in progress we have reviewed the work in progress calculations vouching to contracts and cost schedules as required; |
• |
in addressing the risk of fraud in the use of purchase ledger/working capital transactions, we have reviewed the accounting treatments adopted by management against the specific contractual terms and arrangements associated with each individual transaction and reviewed the related disclosures in the financial statements; and |
• |
in addressing the risk of fraud in payroll, we have tested the control procedures surrounding the authorisation of both timesheets and the payroll itself, sought confirmation over the responsibility of staff members involved in the payroll process and confirmed the existence of a sample of employees. |
Due to 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 is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
For and on behalf of
50-54 Oswald Road
North Lincolnshire
DN15 7PQ
Allied Protek Engineering Solutions Limited
Consolidated Profit and Loss Account for the Year Ended 31 January 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
( |
|
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial year |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
The above results were derived from continuing operations.
The group has no recognised gains or losses for the year other than the results above.
Allied Protek Engineering Solutions Limited
(Registration number: 08355388)
Consolidated Balance Sheet as at 31 January 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Capital redemption reserve |
|
- |
|
Profit and loss account |
|
|
|
Equity attributable to owners of the company |
|
|
|
Total equity |
|
|
Approved and authorised by the
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Allied Protek Engineering Solutions Limited
(Registration number: 08355388)
Balance Sheet as at 31 January 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Capital redemption reserve |
|
- |
|
Profit and loss account |
|
|
|
Total equity |
|
|
The company made a profit after tax for the financial year of £1,820,999 (2023 - profit of £499,762).
Approved and authorised by the
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Allied Protek Engineering Solutions Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 January 2024
Equity attributable to the parent company
Share capital |
Capital redemption reserve |
Retained earnings |
Total |
|
At 1 February 2023 |
|
- |
|
|
Profit for the year |
- |
- |
|
|
Total comprehensive income |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
Purchase of own share capital |
(10) |
10 |
(100,000) |
(100,000) |
At 31 January 2024 |
|
|
|
|
Share capital |
Retained earnings |
Total |
|
At 1 February 2022 |
|
|
|
Profit for the year |
- |
|
|
Total comprehensive income |
- |
|
|
Dividends |
- |
( |
( |
At 31 January 2023 |
|
|
|
Allied Protek Engineering Solutions Limited
Statement of Changes in Equity for the Year Ended 31 January 2024
Share capital |
Capital redemption reserve |
Retained earnings |
Total |
|
At 1 February 2023 |
|
- |
|
|
Profit for the year |
- |
- |
|
|
Total comprehensive income |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
Purchase of own share capital |
(10) |
10 |
(100,000) |
(100,000) |
At 31 January 2024 |
|
|
|
|
Share capital |
Retained earnings |
Total |
|
At 1 February 2022 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 31 January 2023 |
100 |
1,706,225 |
1,706,325 |
Allied Protek Engineering Solutions Limited
Consolidated Statement of Cash Flows for the Year Ended 31 January 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Loss on disposal of tangible assets |
|
- |
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Corporation tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Increase in stocks |
( |
( |
|
Decrease/(increase) in trade and other debtors |
|
( |
|
Increase in trade and other creditors |
|
|
|
(Decrease)/increase in deferred income, including government grants |
( |
|
|
Cash generated from operations |
|
|
|
Corporation tax paid |
( |
- |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Payments for purchase of own shares |
( |
- |
|
Repayment of bank borrowing |
( |
( |
|
Proceeds from other borrowing draw downs |
|
|
|
Repayment of other borrowing |
( |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase in cash and cash equivalents |
|
|
|
Cash and cash equivalents at 1 February |
|
|
|
Cash and cash equivalents at 31 January |
1,920,197 |
586,419 |
Allied Protek Engineering Solutions Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
General information |
The company is a private company limited by share capital, incorporated in England.
Registration number: 08355388.
The address of its registered office is:
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The Company and Group's functional and presentational currency is sterling.
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and Loss Account in these financial statements.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 January 2024.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full. Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group.
Allied Protek Engineering Solutions Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
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 reviewed 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.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for provision of services in the ordinary course of the group’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.
The group recognises revenue when: the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the group's activities.
Contract revenue recognition
Turnover is only recognised on a construction contract where the outcome can be estimated reliably. Turnover and costs are recognised by reference to the stage of completion of contract activity at the year end date. This is normally measured by the directors' assessment of work performed to date.
Government grants
Government grants are recognised in the profit and loss account so that the income is matched with the costs to which they relate.
Other grants
Foreign currency transactions and balances
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Allied Protek Engineering Solutions Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land, over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Freehold and leasehold buildings |
2% per annum on cost |
Furniture, fittings and equipment |
20% or 25% per annum on cost; 15% or 20% per annum on written down value |
Motor vehicles |
25% per annum on cost |
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured less a provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.
Allied Protek Engineering Solutions Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
Stocks
The cost of work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the work in progress to its present location and condition. At each reporting date, work in progress is assessed for impairment. If work in progress 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.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. Trade creditors are recognised at the transaction price.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
The group utilises an invoice financing facility. Financial assets and liabilities arising from a sale are recorded at the transaction price.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Allied Protek Engineering Solutions Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Turnover |
The analysis of the group's turnover for the year from continuing operations is as follows:
2024 |
2023 |
|
Rendering of services |
|
|
Contract revenue |
33,335,775 |
13,937,434 |
|
|
The analysis of the group's turnover for the year by market is as follows:
2024 |
2023 |
|
UK |
|
|
Europe |
|
|
|
|
The amount of contract revenue recognised as turnover in the year was £
Turnover and costs are recognised by reference to the stage of completion of contract activity at the year end date. This is measured by the management's assessment of work performed to date.
The gross amount due to customers for contract work, included in creditors at 31 January 2024, was £780,403 (2023 - £1,289,779).
Operating profit |
Arrived at after charging/(crediting)
2024 |
2023 |
|
Depreciation expense |
|
|
Loss on disposal of property, plant and equipment |
|
- |
Allied Protek Engineering Solutions Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
Government grants |
The amount of such grants recognised in the financial statements was £Nil (2023 - £
Other interest receivable and similar income |
2024 |
2023 |
|
Other finance income |
|
|
Interest payable and similar expenses |
2024 |
2023 |
|
Interest on bank overdrafts and borrowings |
- |
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
Interest expense on other finance liabilities |
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
|
|
|
Allied Protek Engineering Solutions Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2024 |
2023 |
|
Production |
|
|
Administration and support |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2024 |
2023 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
52,025 |
51,679 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2024 |
2023 |
|
Accruing benefits under money purchase pension scheme |
|
|
Auditors' remuneration |
2024 |
2023 |
|
Audit of these financial statements |
15,825 |
9,400 |
Audit of the financial statements of subsidiaries of the company pursuant to legislation |
9,612 |
4,813 |
|
|
Allied Protek Engineering Solutions Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
2024 |
2023 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
|
|
548,561 |
177,863 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
( |
Tax expense in the profit and loss account |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2024 |
2023 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Decrease from effect of different tax rates |
( |
- |
Effect of expense not deductible in determining taxable profit |
|
|
Effect of tax losses |
( |
- |
Decrease from tax losses for which no deferred tax asset was recognised |
- |
( |
Deferred tax expense/(credit) |
|
( |
Prior period under provision |
|
|
Tax (decrease)/increase from effect of capital allowances and depreciation |
( |
|
Total tax charge |
|
|
Deferred tax
Group
Deferred tax assets and liabilities
2024 |
Liability |
Difference between accumulated depreciation and capital allowances |
|
|
Allied Protek Engineering Solutions Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
2023 |
Liability |
Difference between accumulated depreciation and capital allowances |
|
|
There are £120,458 of unused tax losses (2023 - £176,538) for which no deferred tax asset is recognised in the balance sheet.
Company
Deferred tax assets and liabilities
2024 |
Liability |
Difference between accumulated depreciation and capital allowances |
|
|
2023 |
Liability |
Difference between accumulated depreciation and capital allowances |
|
|
Allied Protek Engineering Solutions Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
Tangible assets |
Group
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
Cost or valuation |
||||
At 1 February 2023 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
- |
( |
- |
( |
At 31 January 2024 |
|
|
|
|
Depreciation |
||||
At 1 February 2023 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
- |
( |
- |
( |
At 31 January 2024 |
|
|
|
|
Carrying amount |
||||
At 31 January 2024 |
|
|
|
|
At 31 January 2023 |
|
|
|
|
Included within the net book value of land and buildings above is £335,209 (2023 - £343,373) in respect of freehold land and buildings and £891,948 (2023 - £398,221) in respect of long leasehold land and buildings.
Restriction on title and pledged as security
Allied Protek Engineering Solutions Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
Company
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
Cost or valuation |
||||
At 1 February 2023 |
|
|
|
|
Additions |
|
|
|
|
At 31 January 2024 |
|
|
|
|
Depreciation |
||||
At 1 February 2023 |
|
|
|
|
Charge for the year |
|
|
|
|
At 31 January 2024 |
|
|
|
|
Carrying amount |
||||
At 31 January 2024 |
|
|
|
|
At 31 January 2023 |
|
|
|
|
Included within the net book value of land and buildings above is £335,209 (2023 - £343,373) in respect of freehold land and buildings and £891,948 (2023 - £398,221) in respect of long leasehold land and buildings.
Investments |
Company
2024 |
2023 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 February 2023 |
|
At 31 January 2024 |
|
Provision |
|
At 1 February 2023 |
|
Provision released |
( |
At 31 January 2024 |
- |
Carrying amount |
|
At 31 January 2024 |
|
At 31 January 2023 |
|
Allied Protek Engineering Solutions Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2024 |
2023 |
Subsidiary undertakings |
||||
|
* |
Ordinary |
|
|
|
* |
Ordinary |
|
|
|
* |
Ordinary |
|
|
* the registered office of all group companies is Allied Protek Building, Armstrong Street, Grimsby, North East Lincolnshire, DN31 1XD, UK.
Subsidiary undertakings |
The principal activity of Humber Resource Training Limited is |
The principal activity of Humber Recruitment Limited is |
The principal activity of Turbo Systems Engineering Limited formerly Allied Protek Technical Recruitment Limited is |
Humber Resource Training Limited
During the year, subsidiary Humber Resource Training Limited ceased trading. Humber Resource Training Limited contributed £7,995 to group turnover and £(7,014) to the group profit.
Turbo Systems Engineering Limited
On April 2023, Turbo Systems Engineering Limited acquired the trade and assets of Turbo Systems Limited from the administrator. Turbo Systems Engineering Limited contributed £2,018,458 turnover and £(548,786) to the group's profit for the period between the start of trade and the balance sheet date.
Allied Protek Engineering Solutions Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
Full Implementation of the Company Voluntary Arrangement (CVA) by a Subsidiary
On 22 January 2020, subsidiary company Humber Recruitment Limited entered into a voluntary agreement with its creditors in satisfaction of its debts outstanding at that date. This gave the company the ability to continue to trade despite cash flow difficulties. On 12 May 2023, the agreement was fully implemented and the voluntary arrangement ceased. The group continues to support Humber Recruitment Limited.
Stocks |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Work in progress |
|
|
|
|
Finished goods and goods for resale |
|
- |
- |
- |
|
|
|
|
Debtors |
Group |
Company |
||||
Note |
2024 |
2023 |
2024 |
2023 |
|
Trade debtors |
|
|
|
|
|
Amounts owed by related parties |
|
|
|
|
|
Other debtors |
|
|
|
|
|
Prepayments |
|
|
|
|
|
Accrued income |
|
|
- |
- |
|
|
|
|
|
Cash and cash equivalents |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Cash on hand |
|
|
- |
- |
Cash at bank |
|
|
|
|
|
|
|
|
Allied Protek Engineering Solutions Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
Creditors |
Group |
Company |
||||
Note |
2024 |
2023 |
2024 |
2023 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
|
|
|
Trade creditors |
|
|
|
|
|
Social security and other taxes |
|
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
|
Other creditors |
|
|
|
|
|
Accruals |
|
|
|
|
|
Corporation tax liability |
571,369 |
211,898 |
557,269 |
211,898 |
|
Deferred income |
|
|
|
|
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
|
|
|
Deferred income |
|
|
|
|
|
Social security and other taxes |
- |
62,950 |
- |
- |
|
1,084,004 |
1,228,341 |
1,084,004 |
1,165,391 |
Allied Protek Engineering Solutions Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
Loans and borrowings |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Current loans and borrowings |
||||
Bank borrowings |
|
|
|
|
HP and finance lease liabilities |
|
|
|
|
Other borrowings |
- |
|
- |
|
Invoice finance |
2,623,183 |
2,015,090 |
2,623,183 |
2,015,090 |
|
|
|
|
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Non-current loans and borrowings |
||||
Bank borrowings |
|
|
|
|
HP and finance lease liabilities |
146,204 |
55,641 |
146,204 |
55,641 |
Other borrowings |
- |
|
- |
|
|
|
|
|
Group and company
The bank borrowings are secured on property owned by the parent company together with a £75,000 personal guarantee from one of the directors.
The bank borrowings are repayable by monthly instalments with interest rates of 2.79%, 4.01%, 4.14% and 4.59% above the Bank of England base rate.
Of these bank borrowings which are repayable by instalments £257,443 (2023 - £221,151) are due after more than five years.
In 2023, £109,907 of other borrowings were secured by a personal guarantee from one of the directors. These loans have been cleared in the year.
The HP and finance lease liabilities are secured upon the assets to which they relate.
The invoice finance creditor is secured on the book debts of the relevant company.
Allied Protek Engineering Solutions Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
Deferred tax and other provisions |
Group
Deferred tax |
Total |
|
At 1 February 2023 |
|
|
Decrease in existing provisions |
|
|
At 31 January 2024 |
|
|
|
Company
Deferred tax |
Total |
|
At 1 February 2023 |
|
|
Decrease in existing provisions |
|
|
At 31 January 2024 |
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
|
- |
- |
|
100 |
|
|
90 |
- |
- |
|
|
|
|
Rights, preferences and restrictions
Ordinary and Ordinary A shares have full rights in the company regarding voting, dividends and capital distribution. |
Allied Protek Engineering Solutions Limited
Notes to the Financial Statements for the Year Ended 31 January 2024
Dividends |
2024 |
2023 |
|||||
£ |
£ |
|||||
Interim dividend of £ |
|
|
Commitments |
Group and company
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet due within one year is £95,797 (2023 - £79,427). The total amount of financial commitments not included in the balance sheet due later than one year and not later than five years is £132,642 (2023 - £84,182). This is in respect of contract hire vehicles.
Related party transactions |
Group and company
Transactions with directors |
2024 |
At 1 February 2023 |
Advances to director |
Repayments by director |
At 31 January 2024 |
Mr P Wilson |
||||
Director's loan account |
|
|
( |
|
2023 |
At 1 February 2022 |
Advances to director |
Repayments by director |
At 31 January 2023 |
Mr P Wilson |
||||
Director's loan account |
|
|
( |
|
Interest is being charged in respect of this balance at 2.25% (2023 - 2%), totalling £13,081 in the year (2023 - £16,481), which is repayable on demand.