Caseware UK (AP4) 2023.0.135 2023.0.135 falsetruetruetruetrue642023-05-0166falsefalse 02113853 2023-05-01 2024-04-30 02113853 2022-05-01 2023-04-30 02113853 2024-04-30 02113853 2023-04-30 02113853 2022-05-01 02113853 c:Director1 2023-05-01 2024-04-30 02113853 c:Director2 2023-05-01 2024-04-30 02113853 c:RegisteredOffice 2023-05-01 2024-04-30 02113853 d:Buildings d:LongLeaseholdAssets 2023-05-01 2024-04-30 02113853 d:Buildings d:LongLeaseholdAssets 2024-04-30 02113853 d:Buildings d:LongLeaseholdAssets 2023-04-30 02113853 d:PlantMachinery 2023-05-01 2024-04-30 02113853 d:PlantMachinery 2024-04-30 02113853 d:PlantMachinery 2023-04-30 02113853 d:PlantMachinery d:OwnedOrFreeholdAssets 2023-05-01 2024-04-30 02113853 d:MotorVehicles 2023-05-01 2024-04-30 02113853 d:MotorVehicles 2024-04-30 02113853 d:MotorVehicles 2023-04-30 02113853 d:MotorVehicles d:OwnedOrFreeholdAssets 2023-05-01 2024-04-30 02113853 d:FurnitureFittings 2023-05-01 2024-04-30 02113853 d:FurnitureFittings 2024-04-30 02113853 d:FurnitureFittings 2023-04-30 02113853 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-05-01 2024-04-30 02113853 d:OwnedOrFreeholdAssets 2023-05-01 2024-04-30 02113853 d:CurrentFinancialInstruments 2024-04-30 02113853 d:CurrentFinancialInstruments 2023-04-30 02113853 d:Non-currentFinancialInstruments 2024-04-30 02113853 d:Non-currentFinancialInstruments 2023-04-30 02113853 d:CurrentFinancialInstruments d:WithinOneYear 2024-04-30 02113853 d:CurrentFinancialInstruments d:WithinOneYear 2023-04-30 02113853 d:ReportableOperatingSegment1 2023-05-01 2024-04-30 02113853 d:ReportableOperatingSegment1 2022-05-01 2023-04-30 02113853 d:ReportableOperatingSegment2 2023-05-01 2024-04-30 02113853 d:ReportableOperatingSegment2 2022-05-01 2023-04-30 02113853 e:UnitedKingdom 2023-05-01 2024-04-30 02113853 e:UnitedKingdom 2022-05-01 2023-04-30 02113853 e:RestEuropeOutsideUK 2023-05-01 2024-04-30 02113853 e:RestEuropeOutsideUK 2022-05-01 2023-04-30 02113853 e:RestWorldOutsideUK 2023-05-01 2024-04-30 02113853 e:RestWorldOutsideUK 2022-05-01 2023-04-30 02113853 d:UKTax 2023-05-01 2024-04-30 02113853 d:UKTax 2022-05-01 2023-04-30 02113853 d:ShareCapital 2024-04-30 02113853 d:ShareCapital 2023-04-30 02113853 d:ShareCapital 2022-05-01 02113853 d:RetainedEarningsAccumulatedLosses 2023-05-01 2024-04-30 02113853 d:RetainedEarningsAccumulatedLosses 2024-04-30 02113853 d:RetainedEarningsAccumulatedLosses 2022-05-01 2023-04-30 02113853 d:RetainedEarningsAccumulatedLosses 2023-04-30 02113853 d:RetainedEarningsAccumulatedLosses 2022-05-01 02113853 d:AcceleratedTaxDepreciationDeferredTax 2024-04-30 02113853 d:AcceleratedTaxDepreciationDeferredTax 2023-04-30 02113853 d:TaxLossesCarry-forwardsDeferredTax 2024-04-30 02113853 d:TaxLossesCarry-forwardsDeferredTax 2023-04-30 02113853 c:OrdinaryShareClass1 2023-05-01 2024-04-30 02113853 c:OrdinaryShareClass1 2024-04-30 02113853 c:OrdinaryShareClass1 2023-04-30 02113853 c:OrdinaryShareClass2 2023-05-01 2024-04-30 02113853 c:OrdinaryShareClass2 2024-04-30 02113853 c:OrdinaryShareClass2 2023-04-30 02113853 c:OrdinaryShareClass3 2023-05-01 2024-04-30 02113853 c:OrdinaryShareClass3 2024-04-30 02113853 c:OrdinaryShareClass3 2023-04-30 02113853 c:FRS102 2023-05-01 2024-04-30 02113853 c:Audited 2023-05-01 2024-04-30 02113853 c:FullAccounts 2023-05-01 2024-04-30 02113853 c:PrivateLimitedCompanyLtd 2023-05-01 2024-04-30 02113853 d:Subsidiary1 2023-05-01 2024-04-30 02113853 d:Subsidiary1 1 2023-05-01 2024-04-30 02113853 d:Subsidiary2 2023-05-01 2024-04-30 02113853 d:Subsidiary2 1 2023-05-01 2024-04-30 02113853 d:WithinOneYear 2024-04-30 02113853 d:WithinOneYear 2023-04-30 02113853 d:BetweenOneFiveYears 2024-04-30 02113853 d:BetweenOneFiveYears 2023-04-30 02113853 2 2023-05-01 2024-04-30 02113853 6 2023-05-01 2024-04-30 02113853 f:PoundSterling 2023-05-01 2024-04-30 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 02113853










ESPRIT AUTOMATION LIMITED










Annual report and financial statements

For the year ended 30 April 2024

 
ESPRIT AUTOMATION LIMITED
 

Company Information


Directors
M S Ansari 
T Macalliver 




Registered number
02113853



Registered office
Plackett Mill
Church Drive

Sandiacre

Nottingham

NG10 5EE




Independent auditors
PKF Smith Cooper Audit Limited
Stautory Auditors

2 Lace Market Square

Nottingham

NG1 1PB





 
ESPRIT AUTOMATION LIMITED
 

Contents



Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 24


 
ESPRIT AUTOMATION LIMITED
 

Strategic report
For the year ended 30 April 2024

Introduction
 
The directors present their strategic report for the year ended 30 April 2024.
Esprit Automation Limited, known as "the Company," is a respected UK-based manufacturing firm specialising in advanced automation systems and machinery. Serving mainly the UK and Ireland markets, we are committed to delivering cutting solutions that allow our customers to do more. This report provides a thoughtful review of our performance during the fiscal year ending 30 April 2024 and our current status in the industry.

Business review
 
The Company faced a challenging fiscal year marked by reduced turnover growth and profitability. Nevertheless, the Company remains financially stable and competitive within the manufacturing industry. To address risks and uncertainties, we continue to focus on product innovation, employee retention and prudent financial management. The Company is well positioned to navigate the evolving market landscape and pursue growth opportunities in the upcoming fiscal year. 
As of the financial year ending 30 April 2024, the Company's position reflects the size and complexity of our business within the manufacturing industry:
 
1.Turnover and Revenue: Our turnover for FY2024 stood at £11.7 million representing a reduction of revenue. This underscores the significant headwinds within the industrial CNC Plasma cutting sector.
 
2.Profitability: Despite the reduction in profitability indicators, Esprit Automation Limited maintained a positive EBITDA of £1.89 million. While this signifies a decrease from the previous year, it demonstrates our resilience in navigating challenging market conditions.
 
3.Financial Stability: The balance sheet indicates that our financial position remains robust, consistent with prior years. Net assets have increased, reflecting our continued financial strength despite reduced profitability.
 
4.Currency Risk: It is worth noting that Esprit Automation Limited does not perceive significant exchange rate risk, as most of our stock purchases are denominated in a stable currency (Sterling/Euro).

Principal risks and uncertainties
 
Our Company faces several notable risks and uncertainties in its operations:

1.Market Competition: Esprit Automation Limited operates in a highly competitive industry. Key risks include retaining market share and skilled employees. We address these challenges by introducing new products and providing exceptional customer support. Employee retention and development strategies are central to our competitiveness.

2.Asset Financing Costs: During the financial year, the BoE has raised interest rates to 5.25% to cool the inflation in UK. This increase in the BoE base rate has increased the asset financing costs nearly threefold and as a result the new machines sales market has slowed down significantly. This slowdown in new machine sales is impacting our revenue and profitability.

3.Foreign Exchange Risk: While not a significant concern, we remain vigilant regarding exchange rate fluctuations, given our Euro-denominated stock purchases. Esprit Automation Ltd closely monitors currency rates and employs forward currency transactions to mitigate potential risks.

Key Performance Indicators (KPIs) 
Esprit Automation Limited closely monitors several key performance indicators to assess our operational health. We track indicators as described in the Financial key perfomance indicators section of this report; including turnover growth, gross profit percentage, EBITDA, and other relevant metrics to ensure ongoing performance improvement.

Page 1

 
ESPRIT AUTOMATION LIMITED
 

Strategic report (continued)
For the year ended 30 April 2024

Financial key performance indicators
 
In the past financial year, we observed noteworthy developments in our financial performance, as reflected in key financial performance indicators:
 
1.Turnover: Our turnover rate saw a notable shift, resulting in a shrinkage of -2.7% compared to FY2023, from £12.0 million in FY2023 to £11.7 million in FY2024. This reflects the economic challenges encountered during the year, mainly driven by the high interest rates resulting in increased asset financing costs for our customers.
 
2.Gross Profit Percentage: The gross profit percentage remained stable at 33% in FY2024. However, this is below our expected GP margin of 40%. The continued cost pressures due to wage inflation and input cost inflation has had a negative impact on our GM. 
 
3.EBITDA: Our EBITDA decreased from £2.07 million in FY2023 to £1.89 million in FY2024, mainly driven by the slowdown of our new machines sales business and the competitive pressure as a result of a wider capital goods market slowdown.

These financial performance indicators collectively highlight our experience of a demanding fiscal year, marked by a decline in revenue, reduced profitability, and increased cost pressures.


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





M S Ansari
Director

Date: 14 October 2024

Page 2

 
ESPRIT AUTOMATION LIMITED
 

 
Directors' report
For the year ended 30 April 2024

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

Directors' responsibilities statement

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

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The nature of the Company's principal activities is given in the Strategic Report.

Results and dividends

The profit for the year, after taxation, amounted to £1,643,951 (2023 - £1,950,359).

EBITDA for the year was £1,894,402 (2023: £2,075,688).
Dividends of £nil (2023: £nil) were paid during the year.

Directors

The directors who served during the year were:

M S Ansari 
T Macalliver 

Future developments

For the upcoming financial year, Esprit Automation Limited anticipates a similar level of turnover, subject to supply chain constraints. 

Page 3

 
ESPRIT AUTOMATION LIMITED
 

 
Directors' report (continued)
For the year ended 30 April 2024

Disclosure of information to auditors

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

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

Auditors

The auditorsPKF Smith Cooper Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





M S Ansari
Director

Date: 14 October 2024

Page 4

 
ESPRIT AUTOMATION LIMITED
 

 
Independent auditors' report to the members of Esprit Automation Limited
 

Opinion


We have audited the financial statements of Esprit Automation 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 and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the 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.


Basis for opinion


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


Conclusions relating to going concern


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


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


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


Other information


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


We have nothing to report in this regard.


Page 5

 
ESPRIT AUTOMATION LIMITED
 

 
Independent auditors' report to the members of Esprit Automation Limited (continued)


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the 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.


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 directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the 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.


Page 6

 
ESPRIT AUTOMATION LIMITED
 

 
Independent auditors' report to the members of Esprit Automation Limited (continued)


Auditors' responsibilities for the audit of the financial statements
 

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Based on our understanding of the Company and industry, we identify the key laws and regulations affecting the Company. We identified that the principal risk of fraud or non-compliance with laws and regulations related to:

management bias in respect of accounting estimates and judgements made;
management override of control;
posting of unusual journals or transactions.

We focussed on those areas that could give rise to a material misstatement in the group financial statements. Our procedures included, but were not limited to:
 
enquiry of management and those charged with governance around actual and potential litigation and claims, including instances of non-compliance with laws and regulations and fraud;
reviewing minutes of meetings of those charged with governance where available;
reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and fraud;
reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
rerforming audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
 
It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


Page 7

 
ESPRIT AUTOMATION LIMITED
 

 
Independent auditors' report to the members of Esprit Automation Limited (continued)


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Sarah Flear (Senior statutory auditor)
for and on behalf of
PKF Smith Cooper Audit Limited
Stautory Auditors
2 Lace Market Square
Nottingham
NG1 1PB

15 October 2024
Page 8

 
ESPRIT AUTOMATION LIMITED
 

Statement of comprehensive income
For the year ended 30 April 2024

2024
2023
Note
£
£

  

Turnover
 4 
11,708,438
12,028,569

Cost of sales
  
(7,810,092)
(7,946,748)

Gross profit
  
3,898,346
4,081,821

Distribution costs
  
(572,032)
(580,675)

Administrative expenses
  
(1,666,016)
(1,551,533)

Other operating income
 5 
117,924
19,438

Operating profit
 6 
1,778,222
1,969,051

Interest receivable and similar income
 10 
9,428
1,147

Profit before tax
  
1,787,650
1,970,198

Tax on profit
 11 
(143,699)
(19,839)

Profit for the financial year
  
1,643,951
1,950,359

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

The notes on pages 12 to 24 form part of these financial statements.

Page 9

 
ESPRIT AUTOMATION LIMITED
Registered number: 02113853

Balance sheet
As at 30 April 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
420,395
308,589

Investments
 13 
27,583
27,583

  
447,978
336,172

Current assets
  

Stocks
 14 
2,722,036
2,632,318

Debtors: amounts falling due after more than one year
 15 
6,638,758
5,602,184

Debtors: amounts falling due within one year
 15 
2,440,096
2,506,836

Cash at bank and in hand
 16 
807,482
1,410,749

  
12,608,372
12,152,087

Creditors: amounts falling due within one year
 17 
(2,268,282)
(3,353,202)

Net current assets
  
 
 
10,340,090
 
 
8,798,885

Total assets less current liabilities
  
10,788,068
9,135,057

Provisions for liabilities
  

Deferred tax
 18 
(34,510)
(25,450)

Net assets
  
10,753,558
9,109,607


Capital and reserves
  

Called up share capital 
 19 
10,000
10,000

Profit and loss account
 20 
10,743,558
9,099,607

  
10,753,558
9,109,607


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




M S Ansari
Director

Date: 14 October 2024

The notes on pages 12 to 24 form part of these financial statements.

Page 10

 
ESPRIT AUTOMATION LIMITED
 

Statement of changes in equity
For the year ended 30 April 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 May 2022
10,000
7,149,248
7,159,248



Profit for the year
-
1,950,359
1,950,359



At 1 May 2023
10,000
9,099,607
9,109,607



Profit for the year
-
1,643,951
1,643,951


At 30 April 2024
10,000
10,743,558
10,753,558


The notes on pages 12 to 24 form part of these financial statements.

Page 11

 
ESPRIT AUTOMATION LIMITED
 

 
Notes to the financial statements
For the year ended 30 April 2024

1.


General information

Esprit Automation Limited (the 'Company') is a limited liability company incorporated and domiciled in England and Wales. The address of the registered office and company registration number is disclosed on the company information page. 
The nature of the Company’s operations and principal activities are given in the Directors’ Report.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

The financial statements are prepared in sterling (£), which is the functional currency of the company and are rounded to the nearest £1.

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

The following principal accounting policies have been applied:

 
2.2

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 the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Stellar Associates 1 Limited as at 30 April 2024 and these financial statements may be obtained from the Registrar of Companies, Companies House, Crown Way, Cardiff, CF14 3UZ.

 
2.3

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

Page 12

 
ESPRIT AUTOMATION LIMITED
 

 
Notes to the financial statements
For the year ended 30 April 2024

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

 
2.5

Revenue

Turnover comprises revenue recognised by the Company in respect of goods and services supplied during the year, exclusive of Value Added Tax. 
The Company derives revenue from the sale of machinery, service and maintenance contracts, software licences and software support contracts. 
The principles of revenue recognition applied by the company are as follows:
Machines
The Company recognises revenue on delivery of the machine. 
Software licences
The Company recognises revenue when evidenced by a signed agreement, the delivery of the product has occurred, and the fee is fixed and determinable. 
Software support contracts
The Company recognises revenue on a straight-line basis over the period of the contract. Revenue not recognised in the profit and loss account under this policy is classified as deferred income and held within other creditors in the balance sheet. 
Service and maintenance contracts
The Company recognises revenue on a straight-line basis over the period of the contract. Revenue not recognised in the profit and loss account under this policy is classified as deferred income and held within other creditors in the balance sheet.  

 
2.6

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 13

 
ESPRIT AUTOMATION LIMITED
 

 
Notes to the financial statements
For the year ended 30 April 2024

2.Accounting policies (continued)

 
2.8

Pensions

Defined contribution pension plan

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

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

 
2.9

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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

 
2.10

Tangible fixed assets

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

Page 14

 
ESPRIT AUTOMATION LIMITED
 

 
Notes to the financial statements
For the year ended 30 April 2024

2.Accounting policies (continued)


2.10
Tangible fixed assets (continued)

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

Depreciation is provided on the following basis:

Leasehold improvements
-
Over the period of the lease
Plant and machinery
-
20% straight-line
Motor vehicles
-
25% straight-line
Fixtures and fittings
-
15 - 33% straight-line

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

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

 
2.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in subsidaries are assessed for impairment at each reporting date. Any impairment losses or reversals of impairment losses are recognised immediately in the profit and loss account.

 
2.12

Stocks

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

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

 
2.13

Debtors

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

  
2.14

Research and development

Research and development expenditure is written off in the year which it is incurred. 

 
2.15

Cash and cash equivalents

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

Page 15

 
ESPRIT AUTOMATION LIMITED
 

 
Notes to the financial statements
For the year ended 30 April 2024

2.Accounting policies (continued)

 
2.16

Creditors

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

 
2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities at the balance sheet and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. There are no significant judgments (apart from those involving estimates) which have had an effect on the amounts recognised in the financial statements.


4.


Turnover

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


2024
2023
£
£

Sale of goods
10,197,071
10,420,829

Rendering of services (including machine installation)
1,511,367
1,607,740

11,708,438
12,028,569


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
10,923,988
10,439,927

Rest of Europe
762,344
1,568,108

Rest of the world
22,106
20,534

11,708,438
12,028,569


Page 16

 
ESPRIT AUTOMATION LIMITED
 

 
Notes to the financial statements
For the year ended 30 April 2024

5.


Other operating income

2024
2023
£
£

Miscellaneous income
117,924
19,438



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation
116,180
106,637

Other operating lease rentals
140,676
130,786


7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
14,500
13,300

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


8.


Employees

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


2024
2023
£
£

Wages and salaries
3,112,790
2,835,237

Social security costs
337,623
326,035

Pension costs
60,302
55,603

3,510,715
3,216,875


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


        2024
        2023
            No.
            No.







Employees
66
64

Page 17

 
ESPRIT AUTOMATION LIMITED
 

 
Notes to the financial statements
For the year ended 30 April 2024

9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
301,135
272,075

Company contributions to defined contribution pension schemes
1,321
1,320

302,456
273,395


During the year retirement benefits were accruing to 1 director (2023 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £171,292 (2023 - £166,286).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2023 - £NIL).


10.


Interest receivable

2024
2023
£
£


Other interest receivable
9,428
1,147


11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
128,277
43,303

Adjustments in respect of previous periods
6,362
(15,387)


Total current tax
134,639
27,916

Deferred tax


Origination and reversal of timing differences
9,060
(8,077)

Total deferred tax
9,060
(8,077)


Taxation on profit on ordinary activities
143,699
19,839
Page 18

 
ESPRIT AUTOMATION LIMITED
 

 
Notes to the financial statements
For the year ended 30 April 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19.49%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
1,787,650
1,970,198


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19.49%)
446,913
384,053

Effects of:


Expenses not deductible for tax purposes
2,428
1,179

Capital allowances for year in excess of depreciation
382
(1,231)

Adjustments to tax charge in respect of prior periods
6,362
(15,387)

Remeasurement of deferred tax for changes in tax rates
-
(1,779)

Non-taxable income
(7,000)
-

Additional deduction for R&D tax expenditure
(174,332)
(217,856)

Group relief surrendered/(claimed)
(131,054)
(129,140)

Total tax charge for the year
143,699
19,839


Factors that may affect future tax charges

There are no factors that may affect the future tax charge on the profits of ordinary activities. 

Page 19

 
ESPRIT AUTOMATION LIMITED
 

 
Notes to the financial statements
For the year ended 30 April 2024

12.


Tangible fixed assets





Leasehold Improvements
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost


At 1 May 2023
132,001
303,623
243,097
175,197
853,918


Additions
-
85,685
88,410
55,178
229,273


Disposals
-
-
(14,698)
(2,763)
(17,461)



At 30 April 2024

132,001
389,308
316,809
227,612
1,065,730



Depreciation


At 1 May 2023
70,191
207,613
135,574
131,951
545,329


Charge for the year on owned assets
5,137
29,394
57,519
24,130
116,180


Disposals
-
-
(14,698)
(1,476)
(16,174)



At 30 April 2024

75,328
237,007
178,395
154,605
645,335



Net book value



At 30 April 2024
56,673
152,301
138,414
73,007
420,395



At 30 April 2023
61,810
96,010
107,523
43,246
308,589

Page 20

 
ESPRIT AUTOMATION LIMITED
 

 
Notes to the financial statements
For the year ended 30 April 2024

13.


Fixed asset investments





Investments in subsidiary companies

£



Cost


At 1 May 2023
27,583



At 30 April 2024
27,583






Net book value



At 30 April 2024
27,583



At 30 April 2023
27,583


Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Esprit Automation SARL
8 Chemin de la noue,
21600,
Longvic,
France
Ordinary
100%
Esprit Automation Sp. z.o.o.
ul. Kapitalowa 3, 
35-213 Rzeszów,
Poland
Ordinary
100%


14.


Stocks

2024
2023
£
£

Raw materials
1,319,553
1,443,578

Work in progress
1,402,483
1,188,740

2,722,036
2,632,318


Page 21

 
ESPRIT AUTOMATION LIMITED
 

 
Notes to the financial statements
For the year ended 30 April 2024

15.


Debtors

2024
2023
£
£

Due after more than one year

Amounts owed by group undertakings
6,638,758
5,602,184


2024
2023
£
£

Due within one year

Trade debtors
1,032,686
1,188,667

Amounts owed by group undertakings
1,248,184
816,053

Other debtors
159,226
502,116

2,440,096
2,506,836



16.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
807,482
1,410,749



17.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
1,117,714
2,149,516

Amounts owed to group undertakings
16,891
9,592

Other taxation and social security
433,387
547,289

Accruals and deferred income
700,290
646,805

2,268,282
3,353,202


Page 22

 
ESPRIT AUTOMATION LIMITED
 

 
Notes to the financial statements
For the year ended 30 April 2024

18.


Deferred taxation




2024


£






At beginning of year
(25,450)


Charged to profit or loss
(9,060)



At end of year
(34,510)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(35,919)
(26,891)

Other timing differences
1,409
1,441

(34,510)
(25,450)


19.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



9,000 (2023 - 9,000) A Ordinary shares of £1.00 each
9,000
9,000
500 (2023 - 500) B Ordinary shares of £1.00 each
500
500
500 (2023 - 500) C Ordinary shares of £1.00 each
500
500

10,000

10,000



20.


Reserves

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses, less dividends paid. 


21.


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. 
The pension cost represents contributions payable by the Company £60,302 (2023: £55,603). The amount unpaid at year end totalled £13,142 (2023: £14,738)

Page 23

 
ESPRIT AUTOMATION LIMITED
 

 
Notes to the financial statements
For the year ended 30 April 2024

22.


Commitments under operating leases

At 30 April 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
106,445
104,457

Later than 1 year and not later than 5 years
317,843
390,000

424,288
494,457


23.Other financial commitments

There is a cross guarantee in place with Stellar Finance 1 Limited. 


24.


Related party transactions

The Company has taken advantage of the exemption in Section 33.1A of FRS 102 from disclosing transactions entered into between two or more members of the group as all subsidiaries are wholly owned.
The Company has taken advantage of the exemption under FRS 102 Section 1.12 Reduced Disclosures For Subsidiaries from disclosing key management personnel compensation in total.


25.


Controlling party

The Company's immediate parent undertaking is Stellar Finance 1 Limited. The ultimate parent undertaking is Stellar Associates 1 Limited. The ultimate controlling party is the board of directors of Stellar Associates 1 Limited.
The parent undertaking of the largest group for which consolidated financial satements are prepared is Stellar Associates 1 Limited. Consolidated financial statements are available from the Registrar of Companies, Companies House, Crown Way, Cardiff, CF14 3UZ. 


Page 24