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Registered number: SC114289










ARDMEL GROUP LIMITED

DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

 
ARDMEL GROUP LIMITED
 

COMPANY INFORMATION


Directors
Mr S R Fernando 
Mr S Ruwan Fernando 




Registered number
SC114289



Registered office
52 - 53 Nasmyth Road
Southfield Industrial Estate

Glenrothes

Fife

KY6 2SD




Independent auditors
Sumer Auditco Limited (Statutory Auditor)
Chartered Accountants

Pentland House

Saltire Centre

Glenrothes

Fife

KY6 2AH





 
ARDMEL GROUP LIMITED
 

CONTENTS



Page
Group strategic report
 
 
1 - 2
Directors' report
 
 
3 - 4
Independent auditors' report
 
 
5 - 7
Consolidated statement of comprehensive income
 
 
8
Consolidated statement of financial position
 
 
9
Company statement of financial position
 
 
10
Consolidated statement of changes in equity
 
 
11
Company statement of changes in equity
 
 
12
Consolidated statement of cash flows
 
 
13
Consolidated analysis of net debt
 
 
13
Notes to the financial statements
 
 
14 - 27


 
ARDMEL GROUP LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024

Introduction
 
The directors have pleasure in presenting their strategic report for the year ended 30 June 2024.

Business review
 
Group restructuring was undertaken during the year resulting in Ardmel Group Limited becoming the parent company of Ardmel Automation Limited and other subsidiary companies as disclosed in note 13 to the financial statements.
The principal activities of the Group during the year was the manufacture, marketing and selling of seam sealing tape materials and the design, manufacture and selling of specialised textile machinery including Ultrasonic 'Sewing Machine' and cutters and the design, manufacture and sales of specialised outdoor clothing.
The directors are content to report steady trading and profitability during the period under review and a further enhancement of the Group's overall financial position.
Despite the global challenges experienced during the period under review demand for the Group's products has remained strong and this together with careful strategic and cost management has allowed the Group to continue to trade successfully.
The directors are aware of the ongoing risk from external factors on the UK and global economy but remain confident that the Group will continue to be profitable in the forthcoming accounting period.

Principal risks and uncertainties
 
Although results are positive the ongoing war in Ukraine and Israel has impacted upon Ardmel Group Limited at certain levels, including inflationary pressures. The directors are mindful that the ongoing war in Ukraine/Israel may have an uncertain impact for an indeterminate period but believe that the Group will be able to meet these challenges due to a policy of strong financial management. 
The directors consider the main risks which the Group is exposed to concern trading conditions with foreign customers, including currency fluctuations and the changing conditions in foreign markets. The directors monitor exchange rates and endeavour to undertake transactions when the rates are favourable to the Group. The directors have good relationships with contacts in countries where exports are made and this helps to mitigate the risks in this area.
The Group's principal financial instruments comprise bank balances and Group company loans. The main purpose of these instruments is to finance company operations. Due to the nature of the financial instruments used by the Group there is no exposure to price risk. The Group's approach to managing other risks applicable to the financial instruments concerned is detailed below.
Loans to the Group consist of Group company balances. There are no fixed repayment terms on these loans and no interest is charged.

Financial key performance indicators
 
Key performance indicators are monitored over key areas including control over all aspects of working capital and cash flow and the monitoring of actual results against prior periods. The Group's key performance indicators include turnover which decreased by 0.3% to £14,866,820, gross margin which increased from 32.1% to 34.1% and profit before tax which increased from £2,136,923 to £2,224,230 during the year to 30 June 2024.

Page 1

 
ARDMEL GROUP LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024


This report was approved by the board on 31 October 2024 and signed on its behalf.



Mr S Ruwan Fernando
Director

Page 2

 
ARDMEL GROUP LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024

The directors present their report and the financial statements for the year ended 30 June 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group 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 for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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

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

Results and dividends

The profit for the year, after taxation, amounted to £1,682,933 (2023 - £1,647,622).

Directors

The directors who served during the year were:

Mr S R Fernando 
Mr S Ruwan Fernando 

Disclosure of information to auditors

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

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

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

Auditors

The auditorsSumer Auditco Limited (Statutory Auditor)will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 3

 
ARDMEL GROUP LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

This report was approved by the board on 31 October 2024 and signed on its behalf.
 





Mr S Ruwan Fernando
Director

Page 4

 
ARDMEL GROUP LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARDMEL GROUP LIMITED
 

Opinion


We have audited the financial statements of Ardmel Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 June 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated statement of financial position, the Company statement of financial position, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 30 June 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 Auditors' 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Page 5

 
ARDMEL GROUP LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARDMEL GROUP LIMITED (CONTINUED)


Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


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


Matters on which we are required to report by exception
 

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


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


adequate accounting records have not been kept 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 Directors' responsibilities statement set out on page 3, 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 Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
ARDMEL GROUP LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARDMEL GROUP LIMITED (CONTINUED)


Auditors' 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 Auditors' 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 Group 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 gained an understanding of the legal and regulatory framework applicable to the group and the industry in which it operates, and considered the risk of acts by the group that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that 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 or intentional misrepresentations, or through collusion.
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' 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.





Mark Gibson (Senior statutory auditor)
for and on behalf of
Sumer Auditco Limited (Statutory Auditor)
Chartered Accountants
Pentland House
Saltire Centre
Glenrothes
Fife
KY6 2AH

31 October 2024
Page 7

 
ARDMEL GROUP LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
£
£

  

Turnover
 4 
14,866,820
14,913,910

Cost of sales
  
(9,795,955)
(10,131,616)

Gross profit
  
5,070,865
4,782,294

Distribution costs
  
(313,264)
(297,579)

Administrative expenses
  
(2,635,252)
(2,423,662)

Other operating income
 5 
29,017
66,910

Operating profit
 6 
2,151,366
2,127,963

Amounts written off investments
  
(11,267)
-

Interest receivable and similar income
 9 
84,131
8,960

Profit before taxation
  
2,224,230
2,136,923

Tax on profit
 10 
(541,297)
(489,301)

Profit for the financial year
  
1,682,933
1,647,622

  

Unrealised surplus/(deficit) on revaluation of tangible fixed assets
  
-
(1,272)

Total comprehensive income for the year
  
1,682,933
1,646,350

Profit for the year attributable to:
  

Owners of the parent Company
  
1,682,933
1,647,622

  
1,682,933
1,647,622

Total comprehensive income for the year attributable to:
  

Owners of the parent Company
  
1,682,933
1,646,350

  
1,682,933
1,646,350

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.

The notes on pages 14 to 27 form part of these financial statements.

Page 8

 
ARDMEL GROUP LIMITED
REGISTERED NUMBER: SC114289

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024

2024
2023
£
£

Fixed assets
  

Tangible assets
 12 
1,432,701
1,547,816

Investments
 13 
17,480
28,747

  
1,450,181
1,576,563

Current assets
  

Stocks
 14 
3,978,093
3,600,215

Debtors: amounts falling due within one year
 15 
3,953,439
4,299,148

Cash at bank and in hand
 16 
5,397,719
4,086,986

  
13,329,251
11,986,349

Creditors: amounts falling due within one year
 17 
(2,266,105)
(2,653,688)

Net current assets
  
 
 
11,063,146
 
 
9,332,661

Total assets less current liabilities
  
12,513,327
10,909,224

Provisions for liabilities
  

Deferred taxation
 19 
(143,881)
(222,711)

  
 
 
(143,881)
 
 
(222,711)

Net assets
  
12,369,446
10,686,513


Capital and reserves
  

Called up share capital 
 20 
13,339
13,339

Revaluation reserve
  
341,410
344,728

Capital redemption reserve
  
26,668
26,668

Profit and loss account
  
11,988,029
10,301,778

Equity attributable to owners of the parent Company
  
12,369,446
10,686,513

  
12,369,446
10,686,513


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 31 October 2024.




Mr S Ruwan Fernando
Director

The notes on pages 14 to 27 form part of these financial statements.

Page 9

 
ARDMEL GROUP LIMITED
REGISTERED NUMBER: SC114289

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024

2024
2023
£
£

Fixed assets
  

Investments
 13 
13,335
-

  
13,335
-

Current assets
  

Debtors: amounts falling due within one year
 15 
4
4

  
4
4

Total assets less current liabilities
  
 
 
13,339
 
 
4

  

  

Net assets
  
13,339
4


Capital and reserves
  

Called up share capital 
 20 
13,339
4

  
13,339
4


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 31 October 2024.


Mr S Ruwan Fernando
Director

The notes on pages 14 to 27 form part of these financial statements.

Page 10

 
ARDMEL GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024


Called up share capital
Capital redemption reserve
Revaluation reserve
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£
£
£

At 1 July 2023
13,339
26,668
344,728
10,301,778
10,686,513
10,686,513


Comprehensive income for the year

Profit for the year
-
-
-
1,682,933
1,682,933
1,682,933

Transfer to/from profit and loss account
-
-
(3,318)
3,318
-
-


At 30 June 2024
13,339
26,668
341,410
11,988,029
12,369,446
12,369,446


The notes on pages 14 to 27 form part of these financial statements.


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023


Called up share capital
Capital redemption reserve
Revaluation reserve
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£
£
£

At 1 July 2022
13,339
26,668
349,318
8,650,838
9,040,163
9,040,163


Comprehensive income for the year

Profit for the year
-
-
-
1,647,622
1,647,622
1,647,622

Deferred tax rate increase on unrealised capital gain
-
-
(1,272)
-
(1,272)
(1,272)

Transfer to/from profit and loss account
-
-
(3,318)
3,318
-
-


At 30 June 2023
13,339
26,668
344,728
10,301,778
10,686,513
10,686,513


The notes on pages 14 to 27 form part of these financial statements.

Page 11

 
ARDMEL GROUP LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024


Called up share capital
Total equity

£
£

At 1 July 2023
4
4

Shares issued during the year
13,335
13,335


At 30 June 2024
13,339
13,339


The notes on pages 14 to 27 form part of these financial statements.


COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023


Called up share capital
Total equity

£
£

At 1 July 2022
4
4


At 30 June 2023
4
4


The notes on pages 14 to 27 form part of these financial statements.

Page 12

 
ARDMEL GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
1,682,933
1,647,622

Adjustments for:

Depreciation of tangible assets
145,648
159,953

Loss on disposal of tangible assets
(12,500)
(8,310)

Interest received
(84,131)
(8,960)

Taxation charge
541,297
489,301

(Increase) in stocks
(377,878)
(1,114,966)

Decrease/(increase) in debtors
345,712
(1,490,062)

(Decrease) in creditors
(304,927)
(302,731)

Corporation tax (paid)
(702,786)
(457,311)

Net cash generated from operating activities

1,233,368
(1,085,464)


Cash flows from investing activities

Purchase of tangible fixed assets
(34,068)
(81,487)

Sale of tangible fixed assets
16,035
10,000

Sale of fixed asset investments
11,267
-

Interest received
84,131
8,960

Net cash from investing activities

77,365
(62,527)


Net increase/(decrease) in cash and cash equivalents
1,310,733
(1,147,991)

Cash and cash equivalents at beginning of year
4,086,986
5,234,977

Cash and cash equivalents at the end of year
5,397,719
4,086,986


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
5,397,719
4,086,986

5,397,719
4,086,986



CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 JUNE 2024




At 1 July 2023
Cash flows
At 30 June 2024
£

£

£

Cash at bank and in hand

4,086,986

1,310,733

5,397,719


4,086,986
1,310,733
5,397,719

The notes on pages 14 to 27 form part of these financial statements.

Page 13

 
ARDMEL GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

1.


General information

Ardmel Group Limited is a company limited by shares, incorporated in Scotland. Its registered office address is 52 - 53 Nasmyth Road, Southfield Industrial Estate, Glenrothes, Fife, KY6 2SD.
The principal activity of the group was that of the manufacture and sales of specialised textile machinery including Ultrasonic 'sewing machine' and cutters, and the design, manufacture, distributor, wholesaler and sales of specialist outdoor clothing. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using merger accounting. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their carrying values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the beginning of the financial year in which the combination occured. The comparative results are also restated to include the total comprehensive income for all combining entities for the previous reporting period and their statement of financial position for the previous reporting date. They are deconsolidated from the date control ceases.

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

Page 14

 
ARDMEL GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.4

Turnover

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

Sale of goods

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

 
2.5

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.6

Pensions

Defined contribution pension plan

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

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

Page 15

 
ARDMEL GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.7

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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

 
2.8

Tangible fixed assets

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line and reducing balance method.

Depreciation is provided on the following basis:

Freehold property
-
2% straight line
Plant and machinery
-
10 and 15% reducing balance
Motor vehicles
-
25% straight line
Fixtures and fittings
-
15% reducing balance
Computer equipment
-
33% straight line

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

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

Page 16

 
ARDMEL GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.9

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the reporting date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.10

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Consolidated statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.11

Stocks

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

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.12

Debtors

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

 
2.13

Cash and cash equivalents

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

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.14

Creditors

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

Page 17

 
ARDMEL GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.15

Financial instruments

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

Financial instruments are recognised in the Group's Statement of financial position when the Group 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.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The most significant estimation within the group’s financial statements relates to depreciation,   particularly plant and machinery depreciation. The directors review depreciation rates on a regular basis to ensure that the policy rates remain appropriate and fairly charge the cost of fixed assets over their predicted useful lives for each specific category of fixed asset.
The directors also require to exercise judgement in assessing recoverability of trade debtors and make appropriate provision where their credit control procedures indicate that trade debtor balances may not be fully recoverable.
Other areas of significant estimation within the group's financial statements relate to the valuation of stock. The directors review the valuation methodology on a regular basis to ensure the carrying value of stock remains appropriate. Due consideration is given to amounts realised following the year end in relation to stock included in the financial statements at the year end.

Page 18

 
ARDMEL GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Tape sales
1,570,980
2,843,393

Other sales
859,293
1,257,550

Machine sales
291,464
215,124

Spare sales
539,998
596,693

Garment sales
11,605,085
10,001,150

14,866,820
14,913,910


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
12,652,929
11,485,592

Rest of the world
2,213,891
3,428,318

14,866,820
14,913,910



5.


Other operating income

2024
2023
£
£

Other operating income
3,457
41,350

Net rents receivable
25,560
25,560

29,017
66,910



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
145,648
159,953

Foreign currency (gains)/losses
(39,649)
(208,047)

Fees payable to the Group's auditor and it's associates for the audit of the Companies annual financial statements
38,000
25,125

Non audit fees
29,376
28,910

Page 19

 
ARDMEL GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

7.


Employees

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


Group
Group
2024
2023
£
£


Wages and salaries
1,808,083
2,028,609

Social security costs
131,078
174,424

Cost of defined contribution scheme
162,476
136,826

2,101,637
2,339,859


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


        2024
        2023
            No.
            No.







Number of production staff
52
49



Number of administrative staff
18
18



Number of management staff
5
5

75
72

The Company has no employees other than the directors, who did not receive any remuneration (2023 - £NIL)

8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
167,399
185,749

Group contributions to defined contribution pension schemes
117,101
93,689

284,500
279,438


During the year retirement benefits were accruing to 4 directors (2023 - 3) in respect of defined contribution pension schemes.


9.


Interest receivable

2024
2023
£
£


Other interest receivable
84,131
8,960

84,131
8,960

Page 20

 
ARDMEL GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
621,480
457,311

Adjustments in respect of previous periods
(1,353)
-


620,127
457,311


Total current tax
620,127
457,311

Deferred tax


Origination and reversal of timing differences
(78,830)
31,990

Total deferred tax
(78,830)
31,990


Tax on profit
541,297
489,301

Factors affecting tax charge for the year

The tax assessed for the year is the same as (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 20.5%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
2,224,230
2,136,923


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 20.5%)
556,058
438,069

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
6,925
3,351

Additional super-deduction capital allowances
-
(2,739)

Adjustments to tax charge in respect of prior periods
(28,011)
46,992

Change in tax rate
-
(3,211)

Depreciation on non qualifying assets
3,950
3,239

Other differences leading to an increase (decrease) in the tax charge
2,375
3,621

Marginal relief
-
(21)

Total tax charge for the year
541,297
489,301


Factors that may affect future tax charges

There were no factors introduced in the year that may materially affect future tax charges

Page 21

 
ARDMEL GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

11.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The profit after tax of the parent Company for the year was £ (2023 - £NIL).


12.


Tangible fixed assets

Group






Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£
£



Cost or valuation


At 1 July 2023
790,000
1,164,943
76,055
20,830
61,453
2,113,281


Additions
-
5,063
18,997
-
10,008
34,068


Disposals
-
(46,950)
-
-
-
(46,950)



At 30 June 2024

790,000
1,123,056
95,052
20,830
71,461
2,100,399



Depreciation


At 1 July 2023
31,600
441,418
30,280
5,390
56,777
565,465


Charge for the year on owned assets
15,800
102,000
19,344
2,078
6,426
145,648


Disposals
-
(43,415)
-
-
-
(43,415)



At 30 June 2024

47,400
500,003
49,624
7,468
63,203
667,698



Net book value



At 30 June 2024
742,600
623,053
45,428
13,362
8,258
1,432,701



At 30 June 2023
758,400
723,525
45,775
15,440
4,676
1,547,816

The Group's properties at 52/53 Nasmyth Road, 58 Nasmyth Road and 44 Ramsden Road, Glenrothes were revalued in June 2021 on an open market value basis at amounts of £345,000, £230,000 and £215,000 respectively by Falconer Consultants. The directors are of the opinion that the fair values remain unchanged as at the year end date.

Cost or valuation at 30 June 2024 is as follows:

Land and buildings
£


At cost
624,117
At valuation:

Revaluations as at 30 June 2021
165,883



790,000

Page 22

 
ARDMEL GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

           12.Tangible fixed assets (continued)

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

2024
2023
£
£

Group


Cost
624,117
624,117

Accumulated depreciation
(228,226)
(215,744)

Net book value
395,891
408,373


13.


Fixed asset investments

Group





Investments in subsidiary companies

£



Cost or valuation


At 1 July 2023
28,747


Disposals
(11,267)



At 30 June 2024
17,480




Company





Investments in subsidiary companies

£



Cost or valuation


Additions
13,335



At 30 June 2024
13,335




Page 23

 
ARDMEL GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

Ardmel Automation Limited
Ordinary
100%
Keela International Limited
Ordinary
100%
Ilasco Limited
Ordinary
100%
Ilasco (Medical) Limited
Ordinary
100%
Ardmel Precision Engineering Limited
Ordinary
100%

The registered office address of Ardmel Automation Limited, Keela International Limited, Ilasco Limited and Ilasco (Medical) Limited is 52 - 53 Nasmyth Road, Southfield Industrial Estate, Glenrothes, Fife, KY6 2SD. 


14.


Stocks

Group
Group
2024
2023
£
£

Raw materials and consumables
610,049
672,319

Finished goods and goods for resale
3,368,044
2,927,896

3,978,093
3,600,215



15.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Trade debtors
3,606,513
3,872,622
-
-

Other debtors
155,766
107,433
4
4

Prepayments and accrued income
191,160
319,093
-
-

3,953,439
4,299,148
4
4



16.


Cash and cash equivalents

Group
Group
2024
2023
£
£

Cash at bank and in hand
5,397,719
4,086,986

5,397,719
4,086,986


Page 24

 
ARDMEL GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

17.


Creditors: Amounts falling due within one year

Group
Group
2024
2023
£
£

Trade creditors
989,567
1,356,522

Other taxation and social security
657,052
642,117

Other creditors
16,213
2,114

Accruals and deferred income
603,273
652,935

2,266,105
2,653,688



18.


Financial instruments

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Financial assets

Financial assets measured at fair value through profit or loss
5,397,719
4,086,986
-
-

Financial assets that are debt instruments measured at amortised cost
3,762,279
3,980,051
4
4

9,159,998
8,067,037
4
4


Financial liabilities

Financial liabilities measured at amortised cost
(2,266,107)
(2,653,688)
-
-


Financial assets measured at fair value through profit or loss comprise at bank and in hand.


Financial assets that are debt instruments measured at amortised cost comprise trade debtors and other debtors.


Financial liabilities measured at amortised cost comprise trade creditors, accruals, other creditors, tax and social security and loans.

Page 25

 
ARDMEL GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

19.


Deferred taxation


Group



2024


£






At beginning of year
(222,711)


Charged to profit or loss
78,830



At end of year
(143,881)

Company


2024






At end of year
-
Group
Group
2024
2023
£
£

Accelerated capital allowances
(166,321)
(217,412)

Tax losses carried forward
3,593
-

Short term timing difference
24,146
-

Chargeable gains
(5,299)
(5,299)

(143,881)
(222,711)


20.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



13,339 (2023 - 13,339) Ordinary shares of £1.00 each
13,339
13,339

During the year the company acquired 100% of the share capital of Ardmel Automation Limited and issued 13,335 Ordinary shares at par value.



21.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in independently administered funds. The pension cost charge represents contributions payable by the Group to the fund and amounted to £162,476 (2023 - £136,826). Contributions totalling £105,173 (2023 - £Nil) were payable to the fund at the reporting date and are included in creditors.

Page 26

 
ARDMEL GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

22.Security and guarantees

The Group has granted security to its bankers over its assets by way of a bond and floating charge and standard securities over certain properties held. No bank borrowings were in place at the balance sheet date.


23.


Related party transactions

The Company has taken the exemption available under s33.1A of FRS 102 not to disclose transactions with other wholly owned members of the group.
During the year the Company entered into the following transactions with other related parties:


2024
2023
£
£

Sales to other related parties other than group companies
423,649
1,494,284
Purchases from other related parties other than group companies
485,218
4,374,953
Net trading balances due from/(to) other related parties other than group companies
782,609
1,613,315
1,691,476
7,482,552


24.


Controlling party

The company was under the control of Mr S R Fernando throughout the current and previous year.

Page 27