Company registration number 01624251 (England and Wales)
THERMOTEKNIX SYSTEMS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
THERMOTEKNIX SYSTEMS LIMITED
COMPANY INFORMATION
Directors
Dr R S Salisbury
Mrs G A Salisbury
Secretary
Dr R S Salisbury
Company number
01624251
Registered office
1st Floor, Cloister House
Riverside
New Bailey Street
Manchester
M3 5FS
Auditor
Lopian Gross Barnett & Co
1st Floor, Cloister House
Riverside
New Bailey Street
Manchester
M3 5FS
Business address
Teknix House
2 Pembroke Avenue
Waterbeach
CAMBRIDGE
CB25 9QR
Bankers
Barclays Bank plc
PO Box 885
Mortlock House Vision Park
Histon
Cambridge
CB24 9DE
HSBC Bank plc
PO Box 360
100 King Street
Manchester
M60 2HD
THERMOTEKNIX SYSTEMS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 23
THERMOTEKNIX SYSTEMS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -
The directors present their strategic report for the year ended 30 April 2024.
Review of the business
The company continues to lead the industry with innovative products in this highly technical and specialised field. The directors are confident about the future.
Thermoteknix's commitment to innovation and commercial success has been widely recognized, including receiving the first-ever King’s Award for Enterprise 2023 in International Trade and a second King’s Award for Enterprise 2024 in Innovation, recognising Thermoteknix's success in its Augmented Reality enhanced Night Vision and Thermal Imaging products. This marks the company’s fifth such Royal award, following earlier "Queen's Award for Enterprise, Export" and two "Queen's Awards for Enterprise, Innovation".
The company remains heavily invested in groundbreaking research and development across its industrial and imaging markets. This investment is entirely self-funded and based on both patented and patent-pending technologies. Significant contracts for specialist projects have been secured, with deliveries set to begin in the next financial year.
Global success has also been achieved with the recent launch of innovative new products in both the industrial and surveillance sectors. Increased global tension and activity in Eastern Europe have created new opportunities for Thermoteknix’s security and surveillance products, where the company's expertise is in high demand.
The UK's decision to leave the European Union has introduced uncertainty for many businesses, resulting in fluctuations in currency exchange rates. Thermoteknix continues to assess the implications of limited access to European markets while seeking to capitalize on expanded global opportunities. The company takes well-considered measures to protect its foreign exchange exposure and maintain its status as a global exporter.
The directors remain enthusiastic and confident about the company’s future. Despite substantial ongoing investment in R&D projects—exceeding £1 million per annum—Thermoteknix has maintained positive cash flow, strong cash reserves, and a solid balance sheet. While it can take up to 24 months or more to transition a new product from launch to sale, especially in security market sectors, the company expects its current product range to significantly boost sales and profits in the coming years as these products establish themselves as market standards.
THERMOTEKNIX SYSTEMS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Principal risks and uncertainties
Market and economic risks
Thermoteknix operates in a competitive market, where demand is partly dependent on the availability of funds to the ultimate end-users of its products. The company mitigates this risk by ensuring its products are technologically advanced through continuous investment in R&D and competitive pricing. High-quality, reliable, and innovative products are supported by excellent customer service and aftercare. Additionally, a well-trained and knowledgeable sales team is in place to build strong customer relationships. The global semiconductor shortage impacted product manufacturing and delivery times, as well as component purchase prices driven to unprecedented levels. The company continues to manage its component sourcing and manufacturing processes to meet expected orders and delivery schedules.
Financial risks
The company mitigates its foreign exchange exposure by placing forward currency contracts when considered appropriate for committed and future purchases. Other financial risks are managed through regular management information systems and by monitoring prices and production requirements.
Safety, health and environmental risks
Safety, health, and environmental (SHE) risks are inherent in the business. Thermoteknix systematically assesses all SHE risks in accordance with UK legislation and industry best practices. The company is ISO 9001:2015 certified and remains committed to customer satisfaction, quality, and the health and safety of its staff.
Key performance indicators
The key performance indicators for this business are revenue, gross profit and net profit per taxation, which can be seen on page 9.
Dr R S Salisbury
Director
7 January 2025
THERMOTEKNIX SYSTEMS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
The directors present their report and financial statements for the year ended 30 April 2024.
Principal activities
The Company is principally engaged in the design, manufacture and sales of infrared cameras and thermal imaging systems for security/surveillance, scientific, research & development, industrial and aerospace applications.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Dr R S Salisbury
Mrs G A Salisbury
Results and dividends
The results for the year are set out on page 9.
No dividends were paid during the year. The directors do not recommend the payment of a further dividend.
Auditor
In accordance with the company's articles, a resolution proposing that Lopian Gross Barnett & Co be reappointed as auditor of the company will be put at a General Meeting.
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.
Strategic report
Certain information required within the directors report (including an indication of Research and Development activity) has been given in the strategic report.
On behalf of the board
Dr R S Salisbury
Director
7 January 2025
THERMOTEKNIX SYSTEMS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
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; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 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.
THERMOTEKNIX SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THERMOTEKNIX SYSTEMS LIMITED
- 5 -
Opinion
We have audited the financial statements of Thermoteknix Systems Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows 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:
give a true and fair view of the state of the company's affairs as at 30 April 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
THERMOTEKNIX SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THERMOTEKNIX SYSTEMS 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:
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.
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.
THERMOTEKNIX SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THERMOTEKNIX SYSTEMS LIMITED (CONTINUED)
- 7 -
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, 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:
Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.
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 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.
THERMOTEKNIX SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THERMOTEKNIX SYSTEMS LIMITED (CONTINUED)
- 8 -
Jonathan Brodie FCA
Senior Statutory Auditor
For and on behalf of Lopian Gross Barnett & Co
7 January 2025
Chartered Accountants
Statutory Auditor
1st Floor, Cloister House
Riverside
New Bailey Street
Manchester
M3 5FS
THERMOTEKNIX SYSTEMS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
16,188,194
17,350,718
Cost of sales
(4,684,426)
(7,511,967)
Gross profit
11,503,768
9,838,751
Distribution costs
(701,950)
(886,634)
Administrative expenses
(10,118,895)
(7,744,613)
Operating profit
4
682,923
1,207,504
Interest receivable and similar income
6
405,243
68,759
Profit before taxation
1,088,166
1,276,263
Tax on profit
7
1,171,521
429,608
Profit for the financial year
2,259,687
1,705,871
The profit and loss account has been prepared on the basis that all operations are continuing operations.
THERMOTEKNIX SYSTEMS LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
8
335,278
305,897
Investments
9
833
833
336,111
306,730
Current assets
Stocks
11
2,989,016
3,402,734
Debtors
12
3,376,819
1,558,993
Cash at bank and in hand
13,466,554
12,755,121
19,832,389
17,716,848
Creditors: amounts falling due within one year
13
(7,991,540)
(8,118,056)
Net current assets
11,840,849
9,598,792
Total assets less current liabilities
12,176,960
9,905,522
Provisions for liabilities
Deferred tax liability
14
79,117
67,366
(79,117)
(67,366)
Net assets
12,097,843
9,838,156
Capital and reserves
Called up share capital
16
1,000
1,000
Profit and loss reserves
12,096,843
9,837,156
Total equity
12,097,843
9,838,156
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 7 January 2025 and are signed on its behalf by:
Dr R S Salisbury
Director
Company registration number 01624251 (England and Wales)
THERMOTEKNIX SYSTEMS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 May 2022
1,000
8,131,285
8,132,285
Year ended 30 April 2023:
Profit and total comprehensive income
-
1,705,871
1,705,871
Balance at 30 April 2023
1,000
9,837,156
9,838,156
Year ended 30 April 2024:
Profit and total comprehensive income
-
2,259,687
2,259,687
Balance at 30 April 2024
1,000
12,096,843
12,097,843
THERMOTEKNIX SYSTEMS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
314,315
3,088,098
Income taxes refunded
3,873
50,993
Net cash inflow from operating activities
318,188
3,139,091
Investing activities
Purchase of tangible fixed assets
(117,954)
(103,881)
Proceeds from disposal of tangible fixed assets
17,385
870
Movement on loan debtors
88,571
(88,571)
Interest received
405,243
68,759
Net cash generated from/(used in) investing activities
393,245
(122,823)
Net increase in cash and cash equivalents
711,433
3,016,268
Cash and cash equivalents at beginning of year
12,755,121
9,738,853
Cash and cash equivalents at end of year
13,466,554
12,755,121
THERMOTEKNIX SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 13 -
1
Accounting policies
Company information
Thermoteknix Systems Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1st Floor, Cloister House, Riverside, New Bailey Street, Manchester, M3 5FS.
1.1
Accounting convention
These individual 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.
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
Income represents revenue earned under a wide variety of contracts to provide hi-tech infrared equipment as well as after-sales services. 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 but in respect of goods made to order the income is recognised at the point of completion), 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.
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:
Leasehold improvements
Straight line over period of lease
Plant and machinery
33% Reducing balance
Fixtures, fittings & equipment
15% Reducing balance
Motor vehicles
25% Reducing balance
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
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
THERMOTEKNIX SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
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.
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.
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.
THERMOTEKNIX SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 15 -
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
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.
1.10
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.
THERMOTEKNIX SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 16 -
1.11
Retirement benefits
The pension costs charged in the financial statements represent the contributions payable by the company during the year in accordance with FRS 17.
1.12
Leases
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.
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.14
Research and development costs are written off fully in the period the expense is incurred. Items of equipment used in R & D activities are capitalised as fixed assets.
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 and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Sales of equipment and parts including aftersales
16,188,194
17,350,718
2024
2023
£
£
Turnover analysed by geographical market
UK sales
5,866,203
8,067,537
Overseas sales
10,321,991
9,283,181
16,188,194
17,350,718
THERMOTEKNIX SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
3
Turnover and other revenue
(Continued)
- 17 -
2024
2023
£
£
Other revenue
Interest income
405,243
68,759
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
34,767
(125,668)
Fees payable to the company's auditor for the audit of the company's financial statements
37,500
35,000
Depreciation of owned tangible fixed assets
71,188
79,068
Operating lease charges
190,896
190,694
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total number of employees
69
66
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
405,243
64,886
Other interest income
3,873
Total income
405,243
68,759
7
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
(3,873)
(50,993)
THERMOTEKNIX SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
7
Taxation
2024
2023
£
£
(Continued)
- 18 -
Deferred tax
Origination and reversal of timing differences
11,751
5,986
Tax losses carried forward
(1,179,399)
(384,601)
Total deferred tax
(1,167,648)
(378,615)
Total tax credit
(1,171,521)
(429,608)
The actual credit 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
1,088,166
1,276,263
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
272,042
242,490
Unutilised tax losses carried forward
890,527
292,298
Adjustments in respect of prior years
(3,873)
(50,993)
Permanent capital allowances in excess of depreciation
(12,232)
(7,258)
Research and development tax credit
(1,150,337)
(527,530)
Deferred taxation movement in the year
(1,167,648)
(378,615)
Taxation credit for the year
(1,171,521)
(429,608)
THERMOTEKNIX SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
8
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2023
119,762
303,605
233,096
160,600
817,063
Additions
43,906
10,080
63,968
117,954
Disposals
(17,385)
(17,385)
At 30 April 2024
119,762
347,511
225,791
224,568
917,632
Depreciation and impairment
At 1 May 2023
103,979
186,306
141,434
79,447
511,166
Depreciation charged in the year
2,255
33,171
2,335
33,427
71,188
At 30 April 2024
106,234
219,477
143,769
112,874
582,354
Carrying amount
At 30 April 2024
13,528
128,034
82,022
111,694
335,278
At 30 April 2023
15,783
117,299
91,662
81,153
305,897
9
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
10
833
833
10
Subsidiaries
Details of the company's subsidiaries at 30 April 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Thermoteknix Systems (HK) Limited
Hong Kong
Ordinary shares
100.00
The investment in the subsidiary is stated at cost. As the subsidiary has remained dormant since incorporation the subsidiary has been excluded from any consolidation on the grounds that the subsidiary's results have no impact on consolidation with it remaining dormant.
11
Stocks
2024
2023
£
£
Raw materials, finished goods and goods for resale
2,989,016
3,402,734
THERMOTEKNIX SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 20 -
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,271,007
543,376
Other debtors
6,552
96,246
Prepayments and accrued income
143,116
142,626
1,420,675
782,248
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 14)
1,956,144
776,745
Total debtors
3,376,819
1,558,993
13
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,404,515
2,525,760
Taxation and social security
125,477
390,137
Other creditors
2,292,877
2,473,141
Accruals and deferred income
4,168,671
2,729,018
7,991,540
8,118,056
14
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
79,117
67,366
-
-
Tax losses
-
-
1,956,144
776,745
79,117
67,366
1,956,144
776,745
THERMOTEKNIX SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
14
Deferred taxation
(Continued)
- 21 -
2024
Movements in the year:
£
Asset at 1 May 2023
(709,379)
Credit to profit or loss
(1,167,648)
Asset at 30 April 2024
(1,877,027)
The directors would expect a reduction in deferred tax assets and liabilities in the following year.
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
182,840
232,807
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 year end, there were £34,071 of pension commitments outstanding (2023: £43,751).
16
Share capital
2024
2023
£
£
Ordinary share capital
Authorised
99,988,888 Ordinary 'A' shares of 1p each
999,889
999,889
11,112 Ordinary 'B' shares of 1p each
111
111
1,000,000
1,000,000
Issued and fully paid
100,000 Ordinary 'A' shares of 1p each
1,000
1,000
1,000
1,000
17
Financial commitments, guarantees and contingent liabilities
The company entered into guarantees and performance guarantees in the ordinary course of its business.
THERMOTEKNIX SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 22 -
18
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:
2024
2023
£
£
Within one year
185,000
189,207
Between two and five years
740,000
761,033
In over five years
276,740
462,500
1,201,740
1,412,740
Lease payments recognised as an expense comes to £185,000 (2023: £185,000).
19
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
The company pays rent of £185,000 per annum (2023 - £185,000) on the premises it occupies to The Thermoteknix Systems Limited Directors' pension scheme, of which both directors have an interest in and are both trustees of the scheme. An amount of £55,500 (2023: £55,500) was outstanding at year end in respect of this expense.
20
Ultimate controlling party
The company is controlled by Dr R S Salisbury who holds a majority shareholding in the company.
21
Cash generated from operations
2024
2023
£
£
Profit after taxation
2,259,687
1,705,871
Adjustments for:
Taxation credited
(1,171,521)
(429,608)
Investment income
(405,243)
(68,759)
Depreciation and impairment of tangible fixed assets
71,188
79,068
Movements in working capital:
Decrease/(increase) in stocks
413,718
(1,215,988)
(Increase)/decrease in debtors
(726,998)
2,927,344
(Decrease)/increase in creditors
(126,516)
90,170
Cash generated from operations
314,315
3,088,098
THERMOTEKNIX SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
22
Analysis of changes in net funds
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
12,755,121
711,433
13,466,554
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