Company registration number 00564890 (England and Wales)
ASKERN UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
ASKERN UK LIMITED
COMPANY INFORMATION
Directors
Mr C Dodd
Mr W A Hancock
Mr R B Hope
Ms J Lawrie
Mr D Murray
Company number
00564890
Registered office
28 Lidgate Crescent
Langthwaite Business Park
South Kirkby
Ponteract
England
WF9 3NR
Auditor
Henton & Co LLP
Northgate
118 North Street
Leeds
England
LS2 7PN
ASKERN UK LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
9
Notes to the financial statements
10 - 21
ASKERN UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Principal activities

The principal activity of the company is the design, manufacture and distribution of cable reels.

Fair review of the business

The company's key financial and other performance indicators during the year were as follows:

 

 

 

 

 

 

2024

2023

 

 

 

 

 

£

£

 

 

 

 

 

 

 

Turnover

 

 

 

 

10,233,403

12,243,102

Gross Profit

 

 

 

 

3,083,930

3,264,889

Gross Profit Percentage

 

 

 

30%

27%

Profit Before Tax

 

 

 

1,138,316

1,533,691

Net Current Assets

 

 

 

4,024,324

3,188,069

Net Assets

 

 

 

 

5,089,293

4,234,911

 

The challenging economic conditions as a result of the war in Ukraine and the cost of living crisis resulted in unprecedented increases in the cost of the company's raw materials. In year ended 31 March 2023, price increases absorbed these extra costs. Currently raw materials costs are stable or in some cases reduced ; allowing the company to reduce some sales prices.

 

These reductions and a slowdown in activity is responsible for the fall in turnover this year.

 

The company's gross profit percentage has increased from 27% to 30%.

 

The company's overall balance sheet remains strong.

 

The post year end management accounts show the company continues to trade profitably.

 

The directors believe, that despite the currently challenging market conditions, the company remains well placed to take advantage of any opportunities that arise in the short to medium term.

Principal risks and uncertainties

The ongoing risks to the business due to the war in Ukraine are, in the opinion of the directors, limited to those that could affect all businesses. The directors feel that they have adequately replaced the supplies of materials that are now forbidden by the trade sanctions against Russia and Belarus and do not foresee any supply problems going forward.

 

The company continues to monitor its cost and supplier base to maintain and replenish its raw material stock levels at competitive prices.

 

Most sales are to UK customers and most suppliers are UK based, and accordingly the company has not entered into any hedging arrangements in respect of risk relating to trade debtors and creditors.

 

The company has operated throughout the year within its banking and invoice financing arrangements, thereby substantially eliminating liquidity and cash flow risks.

 

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the monitoring of outstanding debts in terms of time and credit limits. Debts on the balance sheet are presented net of allowances for doubtful debtors.

 

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet accounts payable.

ASKERN UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

On behalf of the board

Mr C Dodd
Director
12 November 2024
ASKERN UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Results and dividends

The results for the year are set out on page 8.

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

Directors

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

Mr C Dodd
Mr W A Hancock
Mr R B Hope
Ms J Lawrie
Mr D Murray
Statement of directors' responsibilities

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

 

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

 

 

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

Statement of disclosure to auditor

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

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

ASKERN UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
On behalf of the board
Mr C Dodd
Mr D Murray
Director
Director
12 November 2024
ASKERN UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ASKERN UK LIMITED
- 5 -
Opinion

We have audited the financial statements of Askern UK Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of income and retained earnings, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

ASKERN UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ASKERN UK LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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

Other matters which we are required to address

The prior period financial statements ending 31 March 2023 have been audited by another auditor and they have expressed an unmodified opinion on 20 December 2023.

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.

ASKERN UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ASKERN UK LIMITED (CONTINUED)
- 7 -
Chris Howitt
Senior Statutory Auditor
For and on behalf of Henton & Co LLP
12 November 2024
Chartered Accountants
Statutory Auditor
Northgate
118 North Street
Leeds
England
LS2 7PN
ASKERN UK LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
10,233,403
12,243,102
Cost of sales
(7,149,473)
(8,978,213)
Gross profit
3,083,930
3,264,889
Administrative expenses
(2,012,170)
(1,734,025)
Other operating income
67,267
76,894
Operating profit
4
1,139,027
1,607,758
Interest payable and similar expenses
7
(711)
(74,067)
Profit before taxation
1,138,316
1,533,691
Tax on profit
8
(283,934)
(289,911)
Profit for the financial year
854,382
1,243,780
Retained earnings brought forward
4,224,511
2,980,731
Retained earnings carried forward
5,078,893
4,224,511

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

The notes on pages 10 to 21 form part of these financial statements.

ASKERN UK LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
1,343,682
1,416,715
Current assets
Stocks
10
998,022
1,308,138
Debtors
11
3,563,557
4,310,688
Cash at bank and in hand
1,215,905
128,513
5,777,484
5,747,339
Creditors: amounts falling due within one year
12
(1,753,160)
(2,559,270)
Net current assets
4,024,324
3,188,069
Total assets less current liabilities
5,368,006
4,604,784
Creditors: amounts falling due after more than one year
13
(116,556)
(200,662)
Provisions for liabilities
Deferred tax liability
16
162,157
169,211
(162,157)
(169,211)
Net assets
5,089,293
4,234,911
Capital and reserves
Called up share capital
18
8,880
8,880
Other reserves
1,520
1,520
Profit and loss reserves
5,078,893
4,224,511
Total equity
5,089,293
4,234,911

The notes on pages 10 to 21 form part of these financial statements.

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

The financial statements were approved by the board of directors and authorised for issue on 12 November 2024 and are signed on its behalf by:
Mr C Dodd
Mr D Murray
Director
Director
Company registration number 00564890 (England and Wales)
ASKERN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
1
Accounting policies
Company information

Askern UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 28 Lidgate Crescent, Langthwaite Business Park, South Kirkby, Ponteract, England, WF9 3NR.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

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

 

 

The financial statements of the company are consolidated in the financial statements of Askern Holdings Limited. These consolidated financial statements are available from its registered office or Companies House.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

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

 

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

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

ASKERN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 11 -

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

1.4
Tangible fixed assets

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

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

Freehold land and buildings
2% Straight line per annum
Plant and equipment
10% Straight line per annum
Fixtures and fittings
10% Straight line per annum
Office equipment
10% Straight line par annum
Motor vehicles
25% Straight line per annum

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

1.5
Impairment of fixed assets

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

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

 

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

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

ASKERN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
1.6
Stocks

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

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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

1.7
Cash and cash equivalents

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

1.8
Financial instruments

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

 

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

 

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

Basic financial assets

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

Other financial assets

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

ASKERN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

Other financial liabilities

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

 

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

ASKERN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial liabilities

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

1.9
Equity instruments

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

1.10
Taxation

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

Current tax

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

Deferred tax

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

 

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

1.11
Employee benefits

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

 

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

 

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

1.12
Retirement benefits

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

ASKERN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.13
Leases

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

 

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

2
Judgements and key sources of estimation uncertainty

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

 

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

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
10,202,608
12,204,694
Rendering of services
22,389
7,905
Rental income
8,406
30,503
10,233,403
12,243,102
2024
2023
£
£
Turnover analysed by geographical market
UK
9,704,018
11,209,980
Exports
529,385
1,033,122
10,233,403
12,243,102
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
18,205
13,180
Depreciation of owned tangible fixed assets
123,186
117,331
Profit on disposal of tangible fixed assets
(700)
(660)
ASKERN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
5
Employees

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

2024
2023
Number
Number
Production
63
63
Administration and support
13
15
Total
76
78

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,907,080
1,994,220
Social security costs
165,255
190,459
Pension costs
69,048
81,664
2,141,383
2,266,343
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
319,856
299,271
Company pension contributions to defined contribution schemes
-
22,126
319,856
321,397
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
15,683
19,435
Interest on convertible loan notes
(15,255)
54,151
Interest on finance leases and hire purchase contracts
283
481
711
74,067
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
295,413
276,627
Adjustments in respect of prior periods
(4,425)
-
0
Total current tax
290,988
276,627
ASKERN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
8
Taxation
2024
2023
£
£
(Continued)
- 17 -
Deferred tax
Origination and reversal of timing differences
(7,054)
13,284
Total tax charge
283,934
289,911

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

2024
2023
£
£
Profit before taxation
1,138,316
1,533,691
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
284,579
291,401
Tax effect of expenses that are not deductible in determining taxable profit
-
0
1,224
Permanent capital allowances in excess of depreciation
(645)
-
0
Depreciation on assets not qualifying for tax allowances
-
0
(5,903)
-
0
3,189
Taxation charge for the year
283,934
289,911
ASKERN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
9
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Office equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2023
922,990
1,093,646
53,242
46,853
55,484
2,172,215
Additions
-
0
37,730
20,723
-
0
-
0
58,453
Disposals
-
0
(40,211)
-
0
-
0
-
0
(40,211)
At 31 March 2024
922,990
1,091,165
73,965
46,853
55,484
2,190,457
Depreciation and impairment
At 1 April 2023
56,614
607,464
14,905
26,170
50,347
755,500
Depreciation charged in the year
10,460
95,511
7,397
4,685
5,133
123,186
Eliminated in respect of disposals
-
0
(31,911)
-
0
-
0
-
0
(31,911)
At 31 March 2024
67,074
671,064
22,302
30,855
55,480
846,775
Carrying amount
At 31 March 2024
855,916
420,101
51,663
15,998
4
1,343,682
At 31 March 2023
866,376
486,182
38,337
20,683
5,137
1,416,715
10
Stocks
2024
2023
£
£
Raw materials and consumables
798,146
896,897
Work in progress
43,574
131,751
Finished goods and goods for resale
156,302
279,490
998,022
1,308,138
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,572,411
3,191,062
Amounts owed by group undertakings
757,691
816,293
Other debtors
203,829
202,986
Prepayments and accrued income
29,626
100,347
3,563,557
4,310,688
ASKERN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
12
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
14
59,701
86,512
Obligations under finance leases
15
24,400
24,983
Trade creditors
757,162
634,744
Amounts owed to group undertakings
210,432
195,064
Corporation tax
295,413
276,627
Other taxation and social security
236,986
327,813
Other creditors
86,438
841,472
Accruals and deferred income
82,628
172,055
1,753,160
2,559,270
13
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
14
94,189
153,895
Obligations under finance leases
15
22,367
46,767
116,556
200,662
14
Loans and overdrafts
2024
2023
£
£
Bank loans
153,890
240,407
Payable within one year
59,701
86,512
Payable after one year
94,189
153,895

Bank borrowings are denominated in pounds sterling with a nominal interest rate of 3.62%. The carrying amount at year end is £153,890 (2023: £211,510).

 

Bank borrowings are secured by fixed charge over the company's premises, by debenture over all company assets and by inter company composite guarantee with all group companies.

 

The company's bank borrowings are repayable in monthly instalments.

ASKERN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
15
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
24,400
24,983
In two to five years
22,367
46,767
46,767
71,750
16
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
162,157
169,211
2024
Movements in the year:
£
Liability at 1 April 2023
169,211
Credit to profit or loss
(7,054)
Liability at 31 March 2024
162,157

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
69,048
81,664

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

18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £10 each
888
888
8,880
8,880
ASKERN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
19
Ultimate controlling party

The parent of the smallest group in which these financial statements are consolidated is Askern Holdings Limited, incorporated in England and Wales.

 

The address of Askern Holdings Limited is 28 Lidgate Crescent, Langthwaite Business Park, South Kirkby, Pontefract, WF9 3NR.

 

The consolidated accounts of Askern Holdings Limited are available from Companies House.

 

Askern Holdings is the company's ultimate parent company.

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