ALTEGRA INTEGRATED SOLUTIONS LIMITED
Company registration number 02853765 (England and Wales)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
ALTEGRA INTEGRATED SOLUTIONS LIMITED
COMPANY INFORMATION
Directors
Mr S Clarke
Mr S J Petford
Mr G A Logan
Mr R J Foxley
(Appointed 15 January 2024)
Secretary
Mr S J Petford
Company number
02853765
Registered office
Old Hall
Dunstall
Burton on Trent
Staffordshire
DE13 8BE
Auditor
Dyke Yaxley Limited
1 Brassey Road
Old Potts Way
Shrewsbury
Shropshire
SY3 7FA
ALTEGRA INTEGRATED SOLUTIONS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Profit and loss account
10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Notes to the financial statements
14 - 25
ALTEGRA INTEGRATED SOLUTIONS LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the period ended 31 December 2023.
Review of the business
Allegra Integrated Solutions Limited is principally engaged in the sale, hire, servicing and repair of materials handling equipment, workplace storage solutions, access and security and the manufacture and installation of aluminium windows and doors.
The company's desire is to focus on its core strategy of selling, servicing, and repairing equipment of fundamental importance to the operations of its customers, and the manufacture and installation of aluminium systems. This diversified portfolio supports de-risking from the business impacts that arise from operating in one specific industrial sector.
Results and performance
The results of the company for the period are set out in the profit and loss account on page 10, these show a loss of £280,336 (2022: £489,806).
The performance of the company during 2023 reflects its focus on the needs of its customers and a strong emphasis on continuous improvement. The business has continued to build upon the strong underlying platform created in previous years as it continues to grow and develop new revenue streams. Our aluminium systems, window and door manufacturing division has continued to grow both trade and commercial sectors through new product introduction and robust marked demand.
During the financial period the business has continued to invest in its people, products, and service in order to continue to provide a high level of customer service and satisfaction whilst at the same time de-risking itself from market fluctuations that are outside the control of the business.
The company is well placed to continue to grow investing in its people, maintaining reasonable margins and developing both its product and servicing offerings to new and existing customers.
ALTEGRA INTEGRATED SOLUTIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 2 -
Development and performance
The company continues to be a leading forklift truck and materials handling supplier, workplace storage solutions, access and security and manufacture, based in the United Kingdom from its Southwest and Midlands business centres. The directors will continue their efforts within the business, focusing on providing excellent service to local and national markets.
In order to ensure that the company's position within these markets is not compromised there is a clear risk management strategy that enables and supports the company to identify and manage risks.
A risk register is reviewed at board level by the directors and corrective actions taken as and where necessary. This along with the risk management strategy is embedded into the senior management of the company.
Financial Risk
Financial risk is monitored on a continual basis by the company in order to ensure that its short, medium and long-term objectives are being met. This risk management includes the preparation of profit, balance sheet and cash flow forecasts and the monitoring of these against actual performance.
The monitoring of these key financial statements is paramount as the company enters into a period of rapid expansion, growth and development.
Credit Risk
Management have credit policies in place to manage risk and monitor exposure to risk on an ongoing basis, the majority of policies are based on past experience and the business believes that its financial assets are of good credit quality.
Less than 5% of the company's trade consists of exports, given that all sales are denominated in sterling and the business does not carry out any hedging activities this area of risk is perceived to be minimal.
A key area of credit risk for the business relates to exposure with customers, to manage this risk all outstanding debts are reviewed on a monthly basis by senior managers.
Key performance indicators
The board monitors the progress of the company with regard to a number of KPI’s, a selection of these are detailed below –
Turnover: £21,550,068 (2022: £20,220,285)
EBIT: (£182,674) (2022: £553,411)
PBT: (£280,336) (2022: £474,521)
Headcount: 104 (2022: 107)
Non-financial key performance indicators
The health, safety and welfare of the company's employees is seen as a key priority to the directors and the company continues to invest in this area. All incidents are recorded via our own bespoke Health and Safety portal and mobile application, which enables full control, accountability, and insights reporting, which is reviewed by board.
In addition to the above, environmental matters are monitored, reviewed and improvement actions implemented by the company's management team in order to improve its environmental credentials
Employees are at the centre of our continued success and development, the company has a strategic aim of becoming an employer of choice. To this end during the year the company has embarked on a variety of HR initiatives including employee surveys, on-line employee system and the establishment of HR functions throughout its trading entities.
ALTEGRA INTEGRATED SOLUTIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 3 -
Company values
Employees are at the centre of our continued success and development, the company has a strategic aim of becoming an employer of choice
Committed to consistently delivering the best possible for both employees and customers.
A unified collaborative effort to achieve a mutually beneficial outcome.
We create a positive environment where energy and enthusiasm are matched by opportunity and ambition.
Mr S J Petford
Director
18 November 2024
ALTEGRA INTEGRATED SOLUTIONS LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 4 -
The directors present their annual report and financial statements for the period ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of the purchase, sale, hire and repair of commercial vehicles and industrial doors to industry and public.
Results and dividends
The results for the period are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
Mr S Clarke
Mr S J Petford
Mr M R Burridge
(Resigned 21 August 2023)
Mr C D Exley
(Resigned 6 December 2022)
Mr W A Coward
(Resigned 15 January 2024)
Mr G A Logan
Mr I R M McMurray
(Resigned 9 May 2023)
Mr R J Foxley
(Appointed 15 January 2024)
Auditor
The auditor, Dyke Yaxley Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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.
Disclosure in the Strategic Report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of review of business, principal risks and uncertainties and future developments.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr S J Petford
Director
18 November 2024
ALTEGRA INTEGRATED SOLUTIONS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 5 -
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:
select suitable accounting policies and then apply them consistently;
make judgements 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 company 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 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.
ALTEGRA INTEGRATED SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ALTEGRA INTEGRATED SOLUTIONS LIMITED
- 6 -
We have audited the financial statements of Altegra Integrated Solutions Limited (the 'company') for the period ended 31 December 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph of our report, the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss for the period 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 qualified opinion
We were unable to obtain sufficient, appropriate audit evidence to support the existence, valuation and classification of tangible fixed asset at 31 December 2023. Due to the lack of supporting information available, it is not possible to quantify any error.
Key Audit Matters
Except for the matter described in the basis for qualified opinion section, we have determined that there are no key audit matters to be communicated in our report.
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 qualified 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.
ALTEGRA INTEGRATED SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ALTEGRA INTEGRATED SOLUTIONS LIMITED (CONTINUED)
- 7 -
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.
As described in the basis for qualified opinion section of our report we were unable to satisfy ourselves with appropriate audit evidence to support the existence, valuation and classification of tangible fixed assets as at 31 December 2023. We have concluded that where the other information refers to the fixed asset balance or related balances such as stock, it may be materially misstated for the same reason
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the 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 respect solely of the limitation of scope on our work relating to fixed assets, described above:
we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
we were unable to determine whether adequate accounting records had been maintained.
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:
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 and returns; or
certain disclosures of 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, 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.
ALTEGRA INTEGRATED SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ALTEGRA INTEGRATED SOLUTIONS LIMITED (CONTINUED)
- 8 -
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, and 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 company and the industry in which it operates, and considered the risk of acts by the company 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 focussed 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, UK tax legislation and National Security Inspectorate requirements. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and inspection of minutes of meetings held by the Board of directors.
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.
We did not identify any key audit matters relating to irregularities, including fraud.
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 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.
This report is made solely to the company's member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.
ALTEGRA INTEGRATED SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ALTEGRA INTEGRATED SOLUTIONS LIMITED (CONTINUED)
- 9 -
Andrew Young FCA
Senior Statutory Auditor
For and on behalf of Dyke Yaxley Limited
18 November 2024
Chartered Accountants
Statutory Auditor
1 Brassey Road
Old Potts Way
Shrewsbury
Shropshire
SY3 7FA
ALTEGRA INTEGRATED SOLUTIONS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 10 -
period
Period
ended
ended
31 December
30 October
2023
2022
Notes
£
£
Turnover
2
21,550,068
20,220,285
Cost of sales
(11,834,654)
(11,285,700)
Gross profit
9,715,414
8,934,585
Distribution costs
(5,222,849)
(4,766,238)
Administrative expenses
(4,675,239)
(3,614,936)
Operating (loss)/profit
3
(182,674)
553,411
Interest payable and similar expenses
7
(97,662)
(78,890)
(Loss)/profit before taxation
(280,336)
474,521
Tax on (loss)/profit
8
15,285
(Loss)/profit for the financial period
(280,336)
489,806
The profit and loss account has been prepared on the basis that all operations are continuing operations.
ALTEGRA INTEGRATED SOLUTIONS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 11 -
period
Period
ended
ended
31 December
30 October
2023
2022
£
£
(Loss)/profit for the period
(280,336)
489,806
Other comprehensive income
-
-
Total comprehensive income for the period
(280,336)
489,806
ALTEGRA INTEGRATED SOLUTIONS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
31 December 2023
30 October 2022
Notes
£
£
£
£
Fixed assets
Intangible assets
9
17,000
Tangible assets
10
5,984,623
3,121,897
6,001,623
3,121,897
Current assets
Stocks
11
3,165,459
4,110,643
Debtors
12
2,724,628
3,268,540
5,890,087
7,379,183
Creditors: amounts falling due within one year
13
(7,429,255)
(5,370,616)
Net current (liabilities)/assets
(1,539,168)
2,008,567
Total assets less current liabilities
4,462,455
5,130,464
Creditors: amounts falling due after more than one year
14
(366,124)
(753,797)
Provisions for liabilities
Deferred tax liability
17
78,868
78,868
(78,868)
(78,868)
Net assets
4,017,463
4,297,799
Capital and reserves
Called up share capital
19
50,002
50,002
Profit and loss reserves
3,967,461
4,247,797
Total equity
4,017,463
4,297,799
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 18 November 2024 and are signed on its behalf by:
Mr S J Petford
Director
Company registration number 02853765 (England and Wales)
ALTEGRA INTEGRATED SOLUTIONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 November 2021
50,002
3,757,991
3,807,993
Period ended 30 October 2022:
Profit and total comprehensive income
-
489,806
489,806
Balance at 30 October 2022
50,002
4,247,797
4,297,799
Period ended 31 December 2023:
Loss and total comprehensive income
-
(280,336)
(280,336)
Balance at 31 December 2023
50,002
3,967,461
4,017,463
ALTEGRA INTEGRATED SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information
Altegra Integrated Solutions Limited is a private company limited by shares incorporated in England and Wales. The registered office is Old Hall, Dunstall, Burton on Trent, Staffordshire, DE13 8BE.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Dunstall Holdings Limited. These consolidated financial statements are available from its registered office, Old Hall, Dunstall, Burton On Trent, Staffordshire, DE13 8BE.
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.
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.
Operating lease income is accounted for on a receivable basis.
ALTEGRA INTEGRATED SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and has been amortised on a systematic basis over its expected life.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Software
5 Years
1.6
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:
Leasehold land and buildings
Lease term
Plant and equipment
6% to 38% straight line
Fixtures and fittings
10% straight line
IT Equipment
10% to 20% straight line
Motor Vehicles
12.5% to 25% straight line
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.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
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.
ALTEGRA INTEGRATED SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.9
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.
1.10
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
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.
ALTEGRA INTEGRATED SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
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.
1.12
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.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
ALTEGRA INTEGRATED SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.15
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Turnover
2023
2022
£
£
Turnover analysed by class of business
12,044,582
11,679,307
Rendering of services
9,505,486
8,540,978
21,550,068
20,220,285
3
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the period is stated after charging/(crediting):
£
£
Exchange gains
(260)
Depreciation of owned tangible fixed assets
852,955
569,627
Depreciation of tangible fixed assets held under finance leases
201,164
285,472
Loss/(profit) on disposal of tangible fixed assets
238,159
(7,829)
Operating lease charges
267,050
199,937
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
22,809
15,187
ALTEGRA INTEGRATED SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 19 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2023
2022
Number
Number
Administration
32
51
Production
73
56
Total
105
107
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
5,077,975
5,116,424
Social security costs
488,803
469,897
Pension costs
111,653
93,472
5,678,431
5,679,793
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
295,685
473,595
Company pension contributions to defined contribution schemes
7,988
19,026
303,673
492,621
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
99,840
153,892
Company pension contributions to defined contribution schemes
2,752
12,422
7
Interest payable and similar expenses
2023
2022
£
£
Interest on finance leases and hire purchase contracts
97,662
78,890
8
Taxation
2023
2022
£
£
ALTEGRA INTEGRATED SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
8
Taxation
2023
2022
£
£
(Continued)
- 20 -
Deferred tax
Origination and reversal of timing differences
(15,285)
The actual charge/(credit) for the period can be reconciled to the expected (credit)/charge for the period based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
(Loss)/profit before taxation
(280,336)
474,521
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 22.43% (2022: 19.00%)
(62,879)
90,159
Tax effect of expenses that are not deductible in determining taxable profit
240
(666)
Tax effect of utilisation of tax losses not previously recognised
(12,560)
Unutilised tax losses carried forward
65,173
Group relief
(123,934)
Permanent capital allowances in excess of depreciation
(55,953)
47,001
Deferred tax charge/(credit)
(15,285)
Loss on tangible asset disposals
53,419
Taxation charge/(credit) for the period
-
(15,285)
9
Intangible fixed assets
Goodwill
Software
Total
£
£
£
Cost
At 31 October 2022
73,250
73,250
Additions
17,000
17,000
At 31 December 2023
73,250
17,000
90,250
Amortisation and impairment
At 31 October 2022 and 31 December 2023
73,250
73,250
Carrying amount
At 31 December 2023
17,000
17,000
At 30 October 2022
ALTEGRA INTEGRATED SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 21 -
10
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
IT Equipment
Motor Vehicles
Total
£
£
£
£
£
£
Cost
At 31 October 2022
65,907
6,366,951
72,406
308,323
73,252
6,886,839
Additions
20,000
3,563,097
22,205
537,476
4,142,778
Disposals
(353,517)
(353,517)
Transfers
(1,988,438)
33,160
1,955,278
At 31 December 2023
85,907
7,588,093
127,771
308,323
2,566,006
10,676,100
Depreciation and impairment
At 31 October 2022
23,261
3,423,525
72,406
196,664
49,086
3,764,942
Depreciation charged in the period
27,138
581,983
16,546
35,971
392,481
1,054,119
Eliminated in respect of disposals
(127,584)
(127,584)
Transfers
(1,044,530)
14,922
1,029,608
At 31 December 2023
50,399
2,833,394
103,874
232,635
1,471,175
4,691,477
Carrying amount
At 31 December 2023
35,508
4,754,699
23,897
75,688
1,094,831
5,984,623
At 30 October 2022
42,646
2,943,426
111,659
24,166
3,121,897
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Plant and equipment
1,329,370
1,533,980
11
Stocks
2023
2022
£
£
Raw materials and consumables
2,793,868
4,076,440
Work in progress
371,591
34,203
3,165,459
4,110,643
ALTEGRA INTEGRATED SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 22 -
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,086,352
2,521,347
Amounts owed by group undertakings
1,477,904
693,402
Other debtors
5,343
Prepayments and accrued income
155,029
53,791
2,724,628
3,268,540
13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
15
1,953,406
342,672
Obligations under finance leases
16
784,834
724,679
Trade creditors
2,023,941
2,646,396
Amounts owed to group undertakings
1,493,323
Taxation and social security
237,345
310,938
Other creditors
237,400
474,858
Accruals and deferred income
699,006
871,073
7,429,255
5,370,616
The bank holds a cross guarantee between the company, Rea Valley Tractors Limited, Dunstall Holdings Limited, and RVT Commercial Vehicles Limited.
Barclays Bank PLC holds a floating charge over all property or undertaking of the company as at 31 December 2023.
De Lage Landen Leasing Limited holds a fixed and floating charge over all the assets of the company as at 31 December 2023.
14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
16
366,124
753,797
The obligations under finance leases are secured on the related assets.
ALTEGRA INTEGRATED SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 23 -
15
Loans and overdrafts
2023
2022
£
£
Bank overdrafts
1,953,406
342,672
Payable within one year
1,953,406
342,672
16
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
784,834
724,679
In two to five years
366,124
753,797
1,150,958
1,478,476
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
78,868
78,868
There were no deferred tax movements in the period.
The deferred tax liability set out above relates to accelerated capital allowances that are expected to mature within the same period.
ALTEGRA INTEGRATED SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 24 -
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
111,653
93,472
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.
At the year end, the amount of pension contributions due but not paid amounted to £nil (2022: £nil).
19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
50,002
50,002
50,002
50,002
The ordinary shares have full voting rights, dividend and capital distribution (including on wind up) rights. they do not confer any rights of redemption.
20
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
285,103
174,184
Between two and five years
632,993
552,070
In over five years
32,125
918,096
758,379
The operating leases relate to property. These leases have an average duration of between 5 and 10 years. These property lease agreements contain an option for renewal at rentals based on market prices at the time of exercise. There are no restrictions placed upon the lessee by entering into these leases.
21
Ultimate controlling party
The immediate and ultimate parent company is Dunstall Holdings Limited, a company registered in England & Wales.
The ultimate controlling party is Mr S W Clarke, a director of the company.
ALTEGRA INTEGRATED SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
21
Ultimate controlling party
(Continued)
- 25 -
The parent undertaking of the largest and the smallest group for which Group accounts are prepared is Dunstall Holdings Limited. Copies of the Group accounts can be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.
Largest group
Dunstall Holdings Limited
Smallest group
Dunstall Holdings Limited
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