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Registered number: 02532117
Applied Automation (UK) Limited
Strategic Report, Director's Report and
Financial Statements
For The Year Ended 31 March 2024
Contents
Page
Company Information 1
Strategic Report 2
Director's 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—20
Page 1
Company Information
Director Mr D H Rowe
Secretary Mrs V A Rowe
Company Number 02532117
Registered Office Concept House
Eastern Wood Road
Langage Industrial Estate
Plymouth
PL7 5ET
Auditors Houndiscombe Consultants Limited
T/A Condy Mathias Chartered Accountants
6 Houndisombe Road
Plymouth
Devon
PL4 6HH
Page 1
Page 2
Strategic Report
The director presents his strategic report for the year ended 31 March 2024.
Principal Activity
The principal activity of the company is the design, manufacture and supply of pneumatic and hydraulic industrial control and manipulation equipment to industrial users and the supply of products for the marine industry.
Review of the Business
The company has had a profitable year, and with ongoing support and profitable contracts the company hopes this will continue into the future.
The company's key financial and other performance indicators during the year were as follows:
Unit
2024
2023
Turnover
£   
23,716,910
24,102,040
Gross profit
£   
4,369,738
4,447,389
Gross profit margin
%  
18
19
Net profit margin
%  
9
8
Principal Risks and Uncertainties
The company operates in a competitive worldwide market that is influenced by the overall economy. It is also affected by fluctuations in exchange rates and therefore has foreign currency bank accounts to mitigate the risks.
Every effort is taken to minimise outgoings. The company uses specifically designed software that provides real-time visibility of costs incurred on work carried out. In addition to this, overhead costs are minimised by obtaining the best rates that are available. The company has tight credit controls in place. Financial health checks are carried out and prompt action is taken where required.
Brexit has proven a major source of uncertainty particularly around the continuity of supply of goods from Europe and the availability of labour. There is huge competition for both skilled and unskilled labour in the local market and this is serving to drive up costs. Whilst a Brexit deal was agreed by the end of 2020 importing and exporting goods has become increasingly costly and complicated. The company is investing in staff training and has strengthened relationships with major suppliers to ensure that the impacts of Brexit are minimised wherever possible.
The company remains in a good financial position, which has been sustained for a number of years. Any future expansion plans will be carefully considered alongside specific cash flow forecasts
On behalf of the board
Mr D H Rowe
Director
18 November 2024
Page 2
Page 3
Director's Report
The director presents his report and the financial statements for the year ended 31 March 2024.
Directors
The director who held office during the year were as follows:
Mr D H Rowe
Objectives and policies
Trading activities expose the company to a number of financial risks. These risks include cash flow risk and overall liquidity risk. The company seeks to manage and mitigate these risks by adopting a policy of frequent monitoring of the bank balance. Management also remains hands-on reviewing cash flows, pre-empting future cash movements and planning accordingly. The director maintains regular contact with the company's bank and keeping them informed of business levels and results.
Price risk, credit risk, liquidity risk and cash flow risk
The principal risks are that of liquidity, cash flow and foreign exchange flucuations.
Liquidity risk is the risk that the company will encounter difficulty in meeting obligations associated with financial liabilities. The company aims to manage liquidity risk by managing cash generation by applying cash collection targets through the year. Liquidity is also managed via credit facilities and short-term debt.
Cash flow risk is the risk of exposure to variability in cash flows that is attributable to a particular asset or liability. The company manages this risk through the use of comprehensive cash flow and forecasting processes and hands-on management by the directors.
Foreign exchange risk is the risk of exposure to fluctuations in the currency exchange rates against the pound sterling. The risk is reduced by maintaining bank accounts in foreign currencies.
Statement of Director's Responsibilities
The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 the financial statements the director is required to: 
  • select suitable accounting policies and then apply them consistently;
  • make judgments and accounting estimates that are reasonable and prudent;
  • state whether applicable United Kingdom 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 director is 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. He is 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.
The director is responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement of Disclosure of Information to Auditors
In the case of each director in office at the date the Director's Report is approved: 
  • so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
  • they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
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Independent Auditors
The auditors, Houndiscombe Consultants Limited, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.
On behalf of the board
Mr D H Rowe
Director
18 November 2024
Page 4
Page 5
Independent Auditor's Report
Opinion
We have audited the financial statements of Applied Automation (UK) Limited for the year ended 31 March 2024 which comprise the Statement of Income and Retained Earnings, Balance Sheet and the related notes, 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
In our opinion the financial statements:
  • give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit/(loss) for the year then ended;
  • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
  • have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 director's 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 entity'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 director is 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 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 the audit:
  • the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
  • the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements.
Matters on Which We Are Required to Report by Exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Director's Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
  • adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
  • the financial statements are not in agreement with the accounting records or returns; or
  • certain disclosures of director's remuneration specified by law are not made; or
  • we have not received all the information and explanations we require for our audit.
Page 5
Page 6
Responsibilities of Directors
As explained more fully in the Director's Responsibilities Statement set out on page 3—4, the director is 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 director determines 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 director is 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: 
As part of our audit planning, through discussions with management, we obtained an understanding of the legal and regulatory framework that is applicable to the company and the sector in which it operates to identify the key laws and regulations affecting the company.
The key laws and regulations we identified were health and safety, and employment laws. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, primarily the Companies Act 2006, the reporting framework (FRS 102), and relevant tax compliance regulations in the UK.
We discussed with management how the compliance with these laws and regulations is monitored and we discussed the policies and procedures in place. We also identified the individuals who have responsibility for ensuring that the entity complies with laws and regulations and deals with reporting any issues if they arise. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the company’s ability to continue trading and the risk of material misstatement to the accounts.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
• Enquiries of management and those charged with governance regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements
• Reviewed legal and professional costs to identify any possible non-compliance or legal costs in respect of non-compliance
As part of our enquiries we discussed with management whether there have been any known instances, allegations or suspicions of fraud, of which there were none.
We also evaluated the risk of fraud through management override including that arising from management's incentives. The key risk we identified was fraudulent financial reporting.
In response to the identified risk, as part of our audit work we:
• Identified and tested journal entries throughout the year and year end adjustments, for appropriateness
• Reviewed estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making the estimates, in particular in relation to work in progress and stock provision
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Page 6
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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 that 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.
Richard Baker FCA (Senior Statutory Auditor)
for and on behalf of Houndiscombe Consultants Limited , Statutory Auditor
18 November 2024
Houndiscombe Consultants Limited
T/A Condy Mathias Chartered Accountants
6 Houndisombe Road
Plymouth
Devon
PL4 6HH
Page 7
Page 8
Statement of Income and Retained Earnings
2024 2023
Notes £ £
TURNOVER 4 23,716,910 24,102,040
Cost of sales (19,347,172 ) (19,654,651 )
GROSS PROFIT 4,369,738 4,447,389
Distribution costs (188,302 ) (198,810 )
Administrative expenses (2,235,014 ) (2,292,470 )
Other operating income 68,486 46,326
OPERATING PROFIT 6 2,014,908 2,002,435
Profit/(loss) on disposal of fixed assets 5,604 (2,913 )
Other interest receivable and similar income 11 15,551 555
Interest payable and similar charges 12 - (7 )
PROFIT BEFORE TAXATION 2,036,063 2,000,070
Tax on Profit 13 (463,154 ) (383,030 )
PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR 1,572,909 1,617,040
OTHER COMPREHENSIVE INCOME FOR THE YEAR - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 1,572,909 1,617,040
RETAINED EARNINGS
As at 1 April 2023 4,139,316 3,112,276
Dividends paid (600,000) (590,000)
As at 31 March 2024 5,112,225 4,139,316
The notes on pages 10 to 20 form part of these financial statements.
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Balance Sheet
2024 2023
Notes £ £ £ £
FIXED ASSETS
Tangible Assets 14 510,116 556,834
510,116 556,834
CURRENT ASSETS
Stocks 16 10,738,464 13,942,993
Debtors 17 5,991,012 6,192,422
Cash at bank and in hand 3,586 2,197
16,733,062 20,137,612
Creditors: Amounts Falling Due Within One Year 18 (11,564,844 ) (16,279,963 )
NET CURRENT ASSETS (LIABILITIES) 5,168,218 3,857,649
TOTAL ASSETS LESS CURRENT LIABILITIES 5,678,334 4,414,483
Creditors: Amounts Falling Due After More Than One Year 19 (35,441 ) (38,175 )
PROVISIONS FOR LIABILITIES
Provisions For Charges 20 (313,245 ) (10,000 )
Deferred Taxation (117,423 ) (126,992 )
NET ASSETS 5,212,225 4,239,316
CAPITAL AND RESERVES
Called up share capital 21 100,000 100,000
Profit and Loss Account 5,112,225 4,139,316
SHAREHOLDERS' FUNDS 5,212,225 4,239,316
On behalf of the board
Mr D H Rowe
Director
18 November 2024
The notes on pages 10 to 20 form part of these financial statements.
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Notes to the Financial Statements
1. General Information
Applied Automation (UK) Limited is a private company, limited by shares, incorporated in England & Wales, registered number 02532117 . The registered office is Concept House, Eastern Wood Road, Langage Industrial Estate, Plymouth, PL7 5ET.
2. Statement of Compliance
The financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.
3. Accounting Policies
3.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention.
3.2. Financial Reporting Standard 102 - Reduced Disclosure Exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
  • the requirements of Section 7 Statement of Cash Flows and Section 3 Financial Statement Presentation paragraph 3.17 (d);
3.3. Significant judgements and estimations
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
Revenue recognition and work in progress
Contracts for the manufacturing of goods often run for a period that spans the financial reporting date, with revenue and profit on these contracts being based on the degree of completion at the year end. The revenue and profit recognised is calculated using costs incurred to date as a percentage of total expected costs multiplied by the proportion of expected profit on completion. Estimates are required for the percentage of the contract completed at the reporting date, and also on the estimate of the overall profit to be generated.
3.4. Turnover
Turnover is stated net of VAT and trade discounts and is recognised when the significant risks and rewards are considered to have been transferred to the buyer. Turnover for the sale of goods is recognised when the goods are physically delivered to the customer. Where a contract has only been partiallly completed at the Balance Sheet date turnover represents the fair value of the goods completed to date based on the stage of completion of the contract activity at the Balance Sheet date. Where payments are received from customers in advance of the goods provided, the amounts are recorded as deferred income and included as part of creditors due within one year.
3.5. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Plant & machinery
15% reducing balance
Motor vehicles
25% straight line
Fixtures & fittings
15% straight line
Office equipment
15% straight line
3.6. Leasing and Hire Purchase Contracts
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.
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3.7. Stocks and Work in Progress
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition, plus an element of expected profit. At each reporting date, stocks are assessed for impairment. If stocks are 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.
The policy for Work in Progress is disclosed under Significant judgements and estimations.
3.8. Foreign Currencies
Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
3.9. Taxation
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account,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 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 operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the 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.
3.10. Provisions and Contingencies
Provisions
Provisions are recognised when the company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as a finance cost.
...CONTINUED
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3.10. Provisions and Contingencies - continued
Contingencies
Contingent liabilities are not recognised. Contingent liabilities arise as a result of past events when (i) it is not probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date or (ii) when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the company’s control. Contingent liabilities are disclosed in the financial statements unless the probability of an outflow of resources is remote.
Contingent assets are not recognised. Contingent assets are disclosed in the financial statements when an inflow of economic benefits is probable.
3.11. Pensions
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company 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.
3.12. Government Grant
Deferred government grants in respect of capital expenditure are treated as deferred income and are credited to the
profit and loss account over the estimated useful life of the assets to which they relate.
4. Turnover
Analysis of turnover by class of business is as follows:
2024 2023
£ £
Sale of goods 23,716,910 24,102,040
Analysis of turnover by geographical market is as follows:
2024 2023
£ £
United Kingdom 22,313,453 22,348,572
Europe 321,013 224,592
Rest of the world 1,082,444 1,528,876
23,716,910 24,102,040
5. Other Operating Income
2024 2023
£ £
Grant income 4,235 8,526
Rental income 52,800 37,800
Other operating income 11,451 -
68,486 46,326
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6. Operating Profit
The operating profit is stated after charging:
2024 2023
£ £
Bad debts (25,343) (3,523)
Research and Development Costs 1,647 -
Operating lease rentals 508,797 493,260
Depreciation of tangible fixed assets 144,422 131,135
7. Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
2024 2023
£ £
Audit Services
Audit of the company's financial statements 10,200 10,075
Other Services
Taxation compliance service 1,100 1,100
Other non-audit services 5,263 6,525
6,363 7,625
8. Staff Costs
Staff costs, including director's remuneration, were as follows:
2024 2023
£ £
Wages and salaries 5,620,489 5,592,934
Social security costs 544,221 562,238
Other pension costs 115,351 108,303
6,280,061 6,263,475
9. Average Number of Employees
Average number of employees, including directors, during the year was as follows:
2024 2023
Office and administration 19 19
Production 152 154
Distribution 5 14
176 187
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10. Director's remuneration
2024 2023
£ £
Emoluments 8,400 8,400
Company contributions to money purchase pension schemes - 2,000
8,400 10,400
The number of directors to whom retirement benefits were accruing was as follows:
2024 2023
Money purchase pension schemes 1 1
11. Interest Receivable and Similar Income
2024 2023
£ £
Bank interest receivable 12,409 555
Other interest receivable 3,142 -
15,551 555
12. Interest Payable and Similar Charges
2024 2023
£ £
Foreign exchange charges - 7
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13. Tax on Profit
The tax charge on the profit for the year was as follows:
Tax Rate 2024 2023
2024 2023 £ £
Current tax
UK Corporation Tax 25.0% 19.0% 504,762 365,810
Prior period adjustment (32,039 ) 6,761
472,723 372,571
Deferred Tax
Deferred taxation - -
Origination and reversal of timing differences (9,569 ) 10,459
(9,569) 10,459
Total tax charge for the period 463,154 383,030
The charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
2024 2023
£ £
Profit before tax 2,036,063 2,000,070
Tax on profit at 25% (UK standard rate) 509,016 380,013
Goodwill/depreciation not allowed for tax 36,106 24,828
Expenses not deductible for tax purposes 2,379 1,848
Capital allowances (27,449 ) (40,879 )
Short term timing differences (9,569 ) 10,459
Prior period adjustment (32,039 ) 6,761
Group relief (15,290 ) -
Total tax charge for the period 463,154 383,030
The applicable charge has changed from the comparative year. This change is from the Spring Budget 2023 where the UK government put in place thresholds based on profits with 25% being the applicable rate for the thresholds met by this company.
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14. Tangible Assets
Plant & Machinery etc. Motor Vehicles Total
£ £ £
Cost
As at 1 April 2023 1,833,269 99,447 1,932,716
Additions 102,093 - 102,093
Disposals (6,554 ) - (6,554 )
As at 31 March 2024 1,928,808 99,447 2,028,255
Depreciation
As at 1 April 2023 1,298,185 77,697 1,375,882
Provided during the period 135,735 8,687 144,422
Disposals (2,165 ) - (2,165 )
As at 31 March 2024 1,431,755 86,384 1,518,139
Net Book Value
As at 31 March 2024 497,053 13,063 510,116
As at 1 April 2023 535,084 21,750 556,834
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15. Investments
Subsidiaries
£
Cost
As at 1 April 2023 5,001
As at 31 March 2024 5,001
Provision
As at 1 April 2023 5,001
As at 31 March 2024 5,001
Net Book Value
As at 31 March 2024 -
As at 1 April 2023 -
Subsidiaries
The value of subsidiary companies for the year ended 31 March 2024 was £Nil (2023: £Nil) due to the subsidiary companies being dormant.
Details of the company's subsidiaries as at 31 March 2024 are as follows:
Name of undertaking Registered Office Class of shares held Direct holding Indirect holding
Net-IT Solutions Limited 6 Houndiscombe Road, Plymouth, PL4 6HH Ordinary 100.00% -
Applied Automation Limited 6 Houndiscombe Road, Plymouth, PL4 6HH Ordinary 100.00% -
The aggregate capital and reserves and the result for the year of the subsidiaries listed above was as follows:
Capital and Reserves Profit/(loss)
£ £
Net-IT Solutions Limited 23,639 -
Applied Automation Limited 1 -
16. Stocks
2024 2023
£ £
Stock 2,484,831 3,432,522
Work in progress 8,253,633 10,510,471
10,738,464 13,942,993
17. Debtors
2024 2023
£ £
Due within one year
Trade debtors 4,897,592 5,349,072
Amounts owed by group undertakings 24,415 19,202
Other debtors 1,069,005 824,148
5,991,012 6,192,422
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18. Creditors: Amounts Falling Due Within One Year
2024 2023
£ £
Trade creditors 2,763,717 3,771,485
Bank loans and overdrafts 145,271 271,493
Payments on account 6,777,176 8,265,646
Amounts owed to group undertakings 85,222 4,889
Amounts owed to participating interests 496,568 564,356
Other creditors 308,427 2,179,028
Corporation tax 346,871 365,810
Taxation and social security 305,360 586,972
Accruals and deferred income 336,232 270,284
11,564,844 16,279,963
Loans and overdrafts
An analysis of the maturity of loans is given below:
2024
2023
Current loans and borrowings
£
£
Bank overdrafts
145,271
271,493
Other borrowings
-
image
1,838,763
image
145,271
image
2,110,256
image
Bank borrowings
HSBC bank overdraft is denominated in Sterling with a variable interest rate. The carrying amount at year end is £145,271 (2023: £271,493).
Other borrowings
HSBC Invoice Financing is denominated in Sterling. The carrying amount at year end is £(302,957) (2023: £1,838,763).
The negative value represents the fact that Applied Automation (UK) Limited were they had no outstanding drawdown on their factoring account for which HSBC Invoice Financing had not already been reimbursed and surplus debts had been settled by customers with HSBC Invoice Financing resulting in Applied Automation (UK) Limited being owed the balance above from HSBC Invoice Financing. This balance is held as an Other Debtor in 2024 (2023 - Other Creditor). 
HSBC Invoice Finance has a floating charge on all property, fixtures and fittings and plant and machinery. The company may not take out any additional security against the charged assets. The company may not dispose of any part of the fixed charged property.
19. Creditors: Amounts Falling Due After More Than One Year
2024 2023
£ £
Accruals and deferred income 35,441 38,175
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20. Provisions for Liabilities
Deferred Tax Other Provisions Total
£ £ £
As at 1 April 2023 126,992 10,000 136,992
Additions - 303,245 303,245
Origination and reversal of timing differences (9,569 ) - (9,569 )
Balance at 31 March 2024 117,423 313,245 430,668
Included within other provisions is an addition of £303,245 relating to the exceptional item disclosed in note 27 of these financial statements.  
21. Share Capital
2024 2023
Allotted, called up and fully paid £ £
100,000 Ordinary Shares of £ 1.00 each 100,000 100,000
22. Other Commitments
The total of future minimum lease payments under non-cancellable operating leases are as following:
2024 2023
£ £
Not later than one year 413,328 462,318
Later than one year and not later than five years 1,279,750 1,407,677
Later than five years - 181,479
1,693,078 2,051,474
The amount of non-cancellable operating lease payments recognised as an expense during the year was £508,797 (2023: £493,260).
The company sub-leases land held under operating lease agreement which results in rental income of £52,800 annually.
23. Pension Commitments
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.
During the year the charge to profit or loss in respect of defined contribution schemes was £115,351 (2023: £108,303).
At the balance sheet date contributions of £28,273 (2023: £25,665) were due to the fund and are included in creditors.
24. Directors Advances, Credits and Guarantees
Included within Debtors are the following loans to directors:
As at 1 April 2023 Amounts advanced Amounts repaid Amounts written off As at 31 March 2024
£ £ £ £ £
Mr David Rowe 36,255 102,832 110,800 - 28,287
The above loan is unsecured and repayable on demand. Interest is payable of at a rate of 2.25% per annum on the balance when it exceeds £10,000.  The total interest charge in the year ended 31 March 2024 was £639 (2023: £Nil).
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25. Dividends
2024 2023
£ £
On equity shares:
Interim dividend paid 600,000 590,000
26. Controlling Parties
The company's immediate and ultimate parent company is Applied Automation (Holdings) Limited, incorporated in England & Wales. Their registered office is 6 Houndiscombe Road, Plymouth, Devon PL4 6HH and the principle place of business is Concept House, Eastern Wood Road, Langage Busines Park, Plymouth, Devon PL7 5ET. 
Applied Automation (Holdings) Limited prepare consolidated accounts that include the results of Applied Automation (UK) Limited. These consolidated accounts are available for public download from the Companies House website.
The ultimate controlling party is Mr & Mrs Rowe.
27. Exceptional Items
Within the profit and loss account is an exceptional cost of £374,018 (2023: £Nil).  This relates to an agreed reimbursal to a customer, on a project previously billed and recognised as revenue by Applied Automation (UK) Limited.
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