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Registration number: 01479677

Vapormatt Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 30 April 2024

 

Vapormatt Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 9

Consolidated Profit and Loss Account

10

Consolidated Statement of Comprehensive Income

11

Consolidated Balance Sheet

12

Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Statement of Changes in Equity

15

Consolidated Statement of Cash Flows

16

Notes to the Financial Statements

17 to 38

 

Vapormatt Limited

Company Information

Directors

R S Ashworth

T I Ashworth

H K F Brown

M R Teague

Registered office

2 Robins Drive
Bridgwater
Somerset
TA6 4DL

Auditors

ML Audit LLP
Statutory Auditors
Winchester House
Deane Gate Avenue
Taunton
Somerset
TA1 2UH

 

Vapormatt Limited

Strategic Report for the Year Ended 30 April 2024

The directors present their strategic report for the year ended 30 April 2024.

Principal activity

The principal activity of the group is the design, manufacture and supply of wet blasting machinery and the sale of aftermarket spares and services.

Fair review of the business

The Group has experienced a challenging year, primarily due to a slowdown in orders resulting from an over-reliance on a few key account customers in the automotive sector, who themselves faced a decline in demand for their products. Additionally, some technically challenging projects undertaken out of necessity during the COVID-19 period have proven problematic, leading to significant ongoing expenses.

In response, the directors implemented measures to reduce overall costs and preserve liquidity, including a reduction in headcount during the year and the post year end sale of underutilised assets. These actions have laid the groundwork for a more promising and profitable future.

Throughout this period, we have remained committed to our strategy of developing additional niche markets. Notably, we have successfully pivoted into the aerospace and wire and cable markets. To mitigate future risks, we have repositioned ourselves to strengthen our presence in the mid-market, where technical risks are lower, thereby reducing our dependence on higher-value, lower-volume contracts.

Current and prior years’ expenditure on product development has resulted in the elimination of loss-making lines and a substantial refresh of our product range, closely aligned with customer needs in the mid-market sectors. Of our seventeen major product lines, five are completely new, seven are new designs marketed under existing product names, and only five remain unchanged since 2020.

Over the extended period since COVID-19, we have revamped our sales team and established modern processes aligned with our strategy to excel in the mid-market. Our methods are now approaching best-in-class standards.

We believe the substantial costs and challenges associated with these sales processes, product range, and market focus refreshes are behind us. Coupled with the resolution of legacy large project issues from the COVID-19 period, we are confident that our trajectory from loss to profit is secure.

We see further opportunities for operational efficiency and have recruited an experienced operations practitioner to lead this aspect of the business.

We look to the future with confidence, supported by a smaller, more efficient organisation, a renewed focus on buoyant and resilient markets, and a robust product range.

Key financial performance indicators
Given the nature of the business, the Group’s directors believe key performance indicators are important. The Group uses several indicators to monitor and improve the development, performance and position of the business.

The Directors believe the group's key financial performance indicators during the year were as follows:

Financial KPIs

Unit

2024

2023

Turnover

£

7,123,537

7,537,939

Gross profit margin (%)

%

39

40

Overheads as a % of sales

%

48

39

 

Vapormatt Limited

Strategic Report for the Year Ended 30 April 2024

Principal risks and uncertainties

Liquidity Risk
The Group seeks to manage this risk by careful management of working capital requirements to ensure sufficient liquidity to meet foreseeable needs and to invest cash assets safely and profitably.

Credit Risk
Credit risk in the Group arises from the granting of payment terms to customers. In order to manage credit risk, the Directors set limits for customers based on a combination of payment history, financial information and third-party credit references. Credit limits are reviewed on a regular basis in conjunction with debt ageing and collection history.

Economic Risk
Brexit plans were well executed in prior years, and this did not result in a material impact on the business. The effects of the Covid pandemic were significant for our year ended 30 April 2021 and to some extent 2022 but the only impact on this set of financial statements are the supply chain issues noted above. The Group continues to monitor for any further impacts.

Foreign exchange risk
The Group is exposed to currency risk on sales and purchases made in several currencies. The company operates natural hedging to minimise risk and exposure.

Competition
The Group faces competitive pressure from rival companies but can maintain competitive advantage by continual investment in research and development.

Approved and authorised by the Board on 31 January 2025 and signed on its behalf by:

H K F Brown
Director

   
     
 

Vapormatt Limited

Directors' Report for the Year Ended 30 April 2024

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

Directors of the group

The directors who held office during the year were as follows:

R S Ashworth

T I Ashworth

H K F Brown

M R Teague

Dividends

The directors recommend a final dividend payment of £Nil be made in respect of the financial period ended 30 April 2023 (2022 - £Nil).

Financial instruments
The Group has procedures to identify risk and manage risks that may hinder its financial performance objectives. The Group does not consider it necessary to employ derivatives to manage risk based on the current activities of the company.

Objectives and policies

The Group's objectives are to operate in a profitable manner in the United Kingdom and abroad.

Price risk, credit risk, liquidity risk and cash flow risk

The Group's activities expose it to a number of financial risks. The directors review the risk management strategies regularly.

Price risk
The Group is exposed to price risk as a result of its operations. However, sale prices are agreed by management before any work is undertaken and management also have a good knowledge of how long jobs take which means that they are able to control the main cost of the Group.

Credit risk
Credit risk in the Group arises from the granting of payment terms to customers. In order to manage credit risk, the directors set limits for customers based on a combination of payment history, financial information and third-party credit references. Credit limits are reviewed on a regular basis in conjunction with debt ageing and collection history.

Liquidity risk
The Group seeks to manage this risk by careful management of working capital requirements to ensure sufficient liquidity to meet foreseeable needs and to invest cash assets safely and profitably.

Cash flow risk
The Group is exposed to cash flow risk as a result of the timing between paying suppliers and staff wages and the receipt of monies from customers. However, the risk is managed through regular reviews of cash flows, including long term forecasts.

Future developments

The strategy for the Group has been clearly defined. Our vision is to be the world’s leading wet blast company and we invest in our people and in research and development to provide innovation and consistent results to our customers worldwide.

 

Vapormatt Limited

Directors' Report for the Year Ended 30 April 2024

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Reappointment of auditors

The auditors, ML Audit LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved by the Board on 31 January 2025 and signed on its behalf by:

H K F Brown
Director

   
     
 

Vapormatt Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Vapormatt Limited

Independent Auditor's Report to the Members of Vapormatt Limited

Opinion

We have audited the financial statements of Vapormatt Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, 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 group's and the parent company's affairs as at 30 April 2024 and of the group's loss for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Vapormatt Limited

Independent Auditor's Report to the Members of Vapormatt Limited

We have nothing to report in this regard.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and 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 our knowledge and understanding of the group and parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

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

adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

the parent company 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 Statement of Directors' Responsibilities set out on page 6, 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 group’s and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor 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.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework;

 

Vapormatt Limited

Independent Auditor's Report to the Members of Vapormatt Limited

inquired of management, and those charged with governance, about their own identification and assessment of the risks or irregularities, including known and actual, suspected or alleged instances of fraud;

discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud;

undertook a review of manual journals processed in the accounting system, applying professional scepticism to ensure that they are in line with our expectation that they are not unusual in the normal course of business.

However, 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.

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

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





Nigel Fry (Senior Statutory Auditor)
For and on behalf of ML Audit LLP, Statutory Auditors
Winchester House
Deane Gate Avenue
Taunton
Somerset
TA1 2UH

31 January 2025

 

Vapormatt Limited

Consolidated Profit and Loss Account for the Year Ended 30 April 2024

Note

2024
£

2023
£

Turnover

3

7,123,537

7,537,939

Cost of sales

 

(4,309,970)

(4,493,562)

Gross profit

 

2,813,567

3,044,377

Distribution costs

 

(132,425)

(148,170)

Administrative expenses

 

(3,279,718)

(2,818,109)

Other operating income

4

5,623

350

Operating (loss)/profit

5

(592,953)

78,448

Interest payable and similar expenses

6

(125,927)

(64,394)

(Loss)/profit before tax

 

(718,880)

14,054

Tax on (loss)/profit

10

308,749

(41,438)

Loss for the financial year

 

(410,131)

(27,384)

Profit/(loss) attributable to:

 

Owners of the company

 

(410,131)

(27,384)

The above results were derived from the Group's continuing operations.

 

Vapormatt Limited

Consolidated Statement of Comprehensive Income for the Year Ended 30 April 2024

2024
£

2023
£

Loss for the year

(410,131)

(27,384)

Foreign currency translation (losses)/gains

(689)

2,210

Total comprehensive income for the year

(410,820)

(25,174)

Total comprehensive income attributable to:

Owners of the company

(410,820)

(25,174)

 

Vapormatt Limited

(Registration number: 01479677)
Consolidated Balance Sheet as at 30 April 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

11

74,067

83,832

Tangible assets

12

614,762

685,765

 

688,829

769,597

Current assets

 

Stocks

14

1,259,582

2,327,985

Debtors

15

2,640,195

4,679,911

Cash at bank and in hand

16

258,555

397,262

 

4,158,332

7,405,158

Creditors: Amounts falling due within one year

17

(3,323,776)

(6,170,911)

Net current assets

 

834,556

1,234,247

Total assets less current liabilities

 

1,523,385

2,003,844

Creditors: Amounts falling due after more than one year

17

(77,781)

(144,699)

Provisions for liabilities

18

-

(2,721)

Net assets

 

1,445,604

1,856,424

Capital and reserves

 

Called up share capital

20

261,000

261,000

Other reserves

21

6,544

7,233

Profit and loss account

21

1,178,060

1,588,191

Equity attributable to owners of the company

 

1,445,604

1,856,424

Total equity

 

1,445,604

1,856,424

Approved and authorised by the Board on 31 January 2025 and signed on its behalf by:
 

H K F Brown
Director

   
     
 

Vapormatt Limited

(Registration number: 01479677)
Parent Balance Sheet as at 30 April 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

12

607,049

673,630

Investments

13

125,811

125,811

 

732,860

799,441

Current assets

 

Stocks

14

1,220,446

2,282,970

Debtors

15

2,530,463

4,144,329

Cash at bank and in hand

16

233,985

359,681

 

3,984,894

6,786,980

Creditors: Amounts falling due within one year

17

(3,275,729)

(5,572,820)

Net current assets

 

709,165

1,214,160

Total assets less current liabilities

 

1,442,025

2,013,601

Creditors: Amounts falling due after more than one year

17

(77,781)

(144,699)

Net assets

 

1,364,244

1,868,902

Capital and reserves

 

Called up share capital

20

261,000

261,000

Profit and loss account

21

1,103,244

1,607,902

Total equity

 

1,364,244

1,868,902

The company made a loss after tax for the financial year of £504,658 (2023 - profit of £17,674).

Approved and authorised by the Board on 31 January 2025 and signed on its behalf by:
 

H K F Brown
Director

   
     
 

Vapormatt Limited

Consolidated Statement of Changes in Equity for the Year Ended 30 April 2024
Equity attributable to the parent company

Share capital
£

Other reserves
£

Profit and loss account
£

Total
£

Total equity
£

At 1 May 2023

261,000

7,233

1,588,191

1,856,424

1,856,424

Loss for the year

-

-

(410,131)

(410,131)

(410,131)

Other comprehensive income

-

(689)

-

(689)

(689)

Total comprehensive income

-

(689)

(410,131)

(410,820)

(410,820)

At 30 April 2024

261,000

6,544

1,178,060

1,445,604

1,445,604


 

Share capital
£

Other reserves
£

Profit and loss account
£

Total
£

Total equity
£

At 1 May 2022

261,000

5,023

1,615,575

1,881,598

1,881,598

Loss for the year

-

-

(27,384)

(27,384)

(27,384)

Other comprehensive income

-

2,210

-

2,210

2,210

Total comprehensive income

-

2,210

(27,384)

(25,174)

(25,174)

At 30 April 2023

261,000

7,233

1,588,191

1,856,424

1,856,424

 

Vapormatt Limited

Parent Statement of Changes in Equity for the Year Ended 30 April 2024

Share capital
£

Profit and loss account
£

Total
£

At 1 May 2023

261,000

1,607,902

1,868,902

Loss for the year

-

(504,658)

(504,658)

At 30 April 2024

261,000

1,103,244

1,364,244


 

Share capital
£

Profit and loss account
£

Total
£

At 1 May 2022

261,000

1,590,228

1,851,228

Profit for the year

-

17,674

17,674

At 30 April 2023

261,000

1,607,902

1,868,902

 

Vapormatt Limited

Consolidated Statement of Cash Flows for the Year Ended 30 April 2024

Note

2024
£

2023
£

Cash flows from operating activities

Loss for the year

 

(410,131)

(27,384)

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

91,486

96,402

Profit on disposal of tangible assets

(2,400)

(252)

Finance costs

6

90,259

51,441

Income tax expense

10

(308,749)

41,438

Foreign exchange gains/losses

 

(689)

2,210

 

(540,224)

163,855

Working capital adjustments

 

Decrease/(increase) in stocks

14

1,068,403

(927,219)

Decrease/(increase) in trade debtors

15

2,187,286

(764,714)

(Decrease)/increase in trade creditors

17

(2,697,327)

401,892

(Decrease)/increase in deferred income, including government grants

 

(265,902)

977,112

Cash generated from operations

 

(247,764)

(149,074)

Income taxes received/(paid)

10

158,458

(47,084)

Net cash flow from operating activities

 

(89,306)

(196,158)

Cash flows from investing activities

 

Acquisitions of tangible assets

(10,718)

(143,300)

Proceeds from sale of tangible assets

 

2,400

10,377

Acquisition of intangible assets

11

-

(400)

Net cash flows from investing activities

 

(8,318)

(133,323)

Cash flows from financing activities

 

Interest paid

6

(90,259)

(51,441)

Proceeds from bank borrowing draw downs

 

78,031

(64,000)

Payments to finance lease creditors

 

(28,855)

(21,188)

Net cash flows from financing activities

 

(41,083)

(136,629)

Net decrease in cash and cash equivalents

 

(138,707)

(466,110)

Cash and cash equivalents at 1 May

 

397,262

863,372

Cash and cash equivalents at 30 April

 

258,555

397,262

 

Vapormatt Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

1

General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is:
2 Robins Drive
Bridgwater
Somerset
TA6 4DL

These financial statements were authorised for issue by the Board on 31 January 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that, as disclosed in the accounting policies, certain items are shown at fair value.

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

Summary of disclosure exemptions

The Company is a qualifying entity for the purposes of FRS 102 and has elected to take the exemption under FRS 102. para 1.12(b) not to present the Company Statement of Cash Flows.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 April 2024.

No Profit and Loss Account is presented for the company as permitted by section 408 of the Companies Act 2006. The company made a loss after tax for the financial year of £504,658 (2023 - profit of £17,674).

 

Vapormatt Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Going concern

UK businesses are currently facing many uncertainties such as the consequences of Brexit, Covid-19, environmental sustainability and geopolitical. These uncertainties have contributed to an environment where there exists a range of issues and risks, including inflation, rising interest rates, labour shortages, disrupted supply chains and new ways of working.

The Directors have carried out an assessment of the potential impact of these uncertainties on the business and have concluded that these will create a challenging trading environment in the coming year. The Directors have taken account of these potential impacts in their going concern assessment. The Vapormatt Group have strong relationships with their stakeholders and will work with its partners to minimise the impacts of these events and will be actively looking for any opportunities they may provide to the business.

The Directors have prepared a detailed cash flow forecast for the period to 31 January 2026 which shows the company will be able to operate and meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Based on these forecasts, the Directors consider it appropriate to prepare the financial statements on a going concern basis.

Reclassification of comparative amounts

During the preparation of these financial statements it was identified that the labour cost included within amounts recoverable under contract had been reported as a deduction of wages and salaries within cost of sales rather than a deduction of purchases within cost of sales. The comparatives have been reclassified accordingly by £421,739.

 

Vapormatt Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Key sources of estimation uncertainty

In the application of the group'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 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.

The estimates and assumptions which are considered to have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:.

Stock valuation
The group reviews its stock on a regular basis and where appropriate makes provisions for slow moving and obsolete stock. The carrying amount is £1,259,582 (2023 - £2,327,985).

Accrued income
The group recognises revenue on a stage of completion basis which can be different to the amounts invoiced to customers, giving rise to accrued income at the balance sheet date. The carrying amount is £65,295 (2023 - £816,050).

Deferred income
The recognition of revenue on a stage of completion basis also gives rise to deferred income at the balance sheet date for similar reasons to the above accrued income. The carrying amount is £802,273 (2023 - £1,068,175).

Warranty provisions
The machines sold include a period of warranty and, accordingly, the group recognise a provision in other creditors in respect of potential costs that may arise upon the group during the warranty period. The carrying amount is £105,206 (2023 - £95,249).

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods
and provision of services in the ordinary course of the Group’s activities. Turnover is shown net of
value added tax, returns, rebates and discounts and after eliminating intra-group sales.
The Group recognises revenue when all of the following conditions are satisfied:
- the amount of revenue can be reliably measured;
- all of the significant risks and rewards of ownership have been transferred to the customer;
- the entity retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold;
- the costs incurred or to be incurred in respect of the transaction can be measured reliably;
- it is probable that future economic benefits will flow to the entity; and
- specific criteria have been met for each of the Group's activities.

The Group recognises revenue as specific performance obligations are met, due to some contracts to build machines being over a longer timescale.

 

Vapormatt Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Government grants

Government grants are recognised at fair value when there is reasonable assurance that the Company will comply with the conditions attaching to them and that the grants will be received. Grants related to the purchase of assets are treated as deferred income and allocated to the income statement over the useful lives of the related assets while grants related to expenses are treated as other income in the income statement.

Finance income and costs policy

Interest income and expenses are recognised using the effective interest rate method.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is remeasured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

 

Vapormatt Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

10% straight line

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Leasehold land and buildings

Over the lease term

Plant and machinery

10% to 33% straight line

Office equipment

33% straight line

Motor vehicles

25% to 33% straight line

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.

 

Vapormatt Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Provisions

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires a settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the profit and loss account in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the balance sheet.

 

Vapormatt Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

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 expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

 

Vapormatt Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Financial instruments

Classification
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.

 

 

Vapormatt Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

3

Turnover

The analysis of the group's turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods

4,845,145

4,745,218

Rendering of services

2,267,672

2,782,001

Other revenue

10,720

10,720

7,123,537

7,537,939

The analysis of the group's turnover for the year by market is as follows:

2024
£

2023
£

UK

950,643

973,532

Europe

3,329,096

3,259,649

Rest of world

2,843,798

3,304,758

7,123,537

7,537,939

4

Other operating income

The analysis of the group's other operating income for the year is as follows:

2024
£

2023
£

Miscellaneous other operating income

5,623

350

5

Operating (loss)/profit

Arrived at after charging/(crediting):

2024
£

2023
£

Depreciation expense

81,721

86,637

Amortisation expense

9,765

9,765

Operating lease expense - plant and machinery

198,679

163,889

6

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

21,805

16,835

Interest on obligations under finance leases and hire purchase contracts

16,697

592

Interest expense on other finance liabilities

51,757

34,014

Foreign exchange gains

35,668

12,953

125,927

64,394

 

Vapormatt Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

(As restated)
2023
£

Wages and salaries

2,357,747

2,203,428

Social security costs

180,809

138,406

Pension costs, defined contribution scheme

50,191

50,540

2,588,747

2,392,374

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Sales, marketing and distribution

59

59

59

59

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

150,104

131,750

Contributions paid to money purchase schemes

2,642

2,642

152,746

134,392

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

2

2

9

Auditors' remuneration

2024
£

2023
£

Audit of these financial statements

17,875

17,050

Other fees to auditors

All other assurance services

22,619

10,234


 

 

Vapormatt Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

10

Taxation

Tax charged/(credited) in the income statement:

2024
£

2023
£

Current taxation

UK corporation tax adjustment to prior periods

(311,513)

(2,710)

Foreign tax

5,485

44,148

Total current income tax

(306,028)

41,438

Deferred taxation

Arising from origination and reversal of timing differences

(2,721)

-

Tax (receipt)/expense in the income statement

(308,749)

41,438

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of 25% (2023 - 19%).

The differences are reconciled below:

2024
£

2023
£

(Loss)/profit before tax

(718,880)

14,054

Corporation tax at standard rate

(179,720)

2,670

Decrease in UK and foreign current tax from adjustment for prior periods

(311,513)

-

Effect of expense not deductible in determining taxable profit (tax loss)

8,802

-

Increase from tax losses for which no deferred tax asset was recognised

197,284

-

Effect of foreign tax rates

(23,602)

44,148

Other tax decrease for reconciliation between accounting profit and tax expense

-

(5,380)

Total tax (credit)/charge

(308,749)

41,438

Deferred tax

Group

Deferred tax assets and liabilities

2023

Liability
£

Capital allowances in excess of depreciation

2,721

2,721

 

Vapormatt Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

There are £1,787,389 of unused tax losses (2023 - £1,055,476) for which no deferred tax asset is recognised in the balance sheet.

Company

There are £1,787,389 of unused tax losses (2023 - £1,047,809) for which no deferred tax asset is recognised in the balance sheet.

11

Intangible assets

Group

Goodwill
 £

Total
£

Cost

At 1 May 2023

137,679

137,679

At 30 April 2024

137,679

137,679

Amortisation

At 1 May 2023

53,847

53,847

Amortisation charge

9,765

9,765

At 30 April 2024

63,612

63,612

Carrying amount

At 30 April 2024

74,067

74,067

At 30 April 2023

83,832

83,832

The amortisation of intangible assets is included in administrative expenses in the profit and loss account.

Individually material intangible assets

Goodwill
The carrying amount of this asset is £74,067 (2023 - £83,832) and the remaining amortisation period is 7 years and 7 months (2023 - 8 years and 7 months).

 

Vapormatt Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Company

Goodwill
 £

Total
£

Cost

At 1 May 2023

12,500

12,500

At 30 April 2024

12,500

12,500

Amortisation

At 1 May 2023

12,500

12,500

At 30 April 2024

12,500

12,500

Carrying amount

At 30 April 2024 and at 30 April 2023

-

-

12

Tangible assets

Group

Leasehold land and buildings
£

Furniture, fittings and equipment
£

Plant and machinery
£

Office equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 May 2023

376,639

2,563

1,282,003

2,453

182,912

1,846,570

Additions

-

-

10,718

-

-

10,718

Disposals

-

-

(1,794)

-

-

(1,794)

At 30 April 2024

376,639

2,563

1,290,927

2,453

182,912

1,855,494

Depreciation

At 1 May 2023

140,347

2,563

854,735

2,178

160,982

1,160,805

Charge for the year

18,735

-

55,247

168

7,571

81,721

Eliminated on disposal

-

-

(1,794)

-

-

(1,794)

At 30 April 2024

159,082

2,563

908,188

2,346

168,553

1,240,732

Carrying amount

At 30 April 2024

217,557

-

382,739

107

14,359

614,762

At 30 April 2023

236,292

-

427,268

275

21,930

685,765

Included within the net book value of land and buildings above is £217,557 (2023 - £236,292) in respect of long leasehold land and buildings.
 

 

Vapormatt Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

2024
£

2023
£

Plant and machinery

11,718

170,231

Motor vehicles

-

18,535

11,718

188,766

Restriction on title and pledged as security

Leasehold land and buildings with a carrying amount of £217,557 (2023 - £236,292) has been pledged as security for liabilities.

Plant and machinery with a carrying amount of £382,739 (2023 - £427,268) has been pledged as security for liabilities.

Office equipment with a carrying amount of £107 (2023 - £275) has been pledged as security for liabilities.

Motor vehicles with a carrying amount of £14,359 (2023 - £21,930) has been pledged as security for liabilities.

Company

Leasehold land and buildings
£

Plant and machinery
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 May 2023

376,639

1,218,932

182,912

1,778,483

Additions

-

10,718

-

10,718

At 30 April 2024

376,639

1,229,650

182,912

1,789,201

Depreciation

At 1 May 2023

140,347

803,524

160,982

1,104,853

Charge for the year

18,735

50,993

7,571

77,299

At 30 April 2024

159,082

854,517

168,553

1,182,152

Carrying amount

At 30 April 2024

217,557

375,133

14,359

607,049

At 30 April 2023

236,292

415,408

21,930

673,630

Included within the net book value of land and buildings above is £217,557 (2023 - £236,292) in respect of long leasehold land and buildings.
 

 

Vapormatt Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

2024
£

2023
£

Plant and machinery

11,718

170,231

Motor vehicles

-

18,535

11,718

188,766

Restriction on title and pledged as security

Leasehold land and buildings with a carrying amount of £217,557 (2023 - £236,292) has been pledged as security for liabilities.

Plant and machinery with a carrying amount of £375,133 (2023 - £415,408) has been pledged as security for liabilities.

Motor vehicles with a carrying amount of £14,359 (2023 - £21,930) has been pledged as security for liabilities.

13

Investments

Company

2024
£

2023
£

Investments in subsidiaries

125,811

125,811

Subsidiaries

£

Cost

At 1 May 2023

125,811

At 30 April 2024

125,811

Carrying amount

At 30 April 2024

125,811

At 30 April 2023

125,811

 

Vapormatt Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

2024

2023

Subsidiary undertakings

Vapormatt Inc

155 Seaport Boulevard, Suite 500, Boston, MA 02210-2695

United States of America

Ordinary Shares

100%

100%

Vapormatt Scandinavia AB

C/o Wistrand, Box 7543, 10393 - Stockholm

Sweden

Ordinary shares

100%

100%

Dataroll Limited

2 Robins Drive, Bridgwater, Somerset, TA6 4DL

England and Wales

Ordinary shares

100%

100%

Subsidiary undertakings

Vapormatt Inc

The principal activity of Vapormatt Inc is the manufacture of other special-purpose machinery.

Vapormatt Scandinavia AB

The principal activity of Vapormatt Scandinavia AB is dormant.

Dataroll Limited

The principal activity of Dataroll Limited is the manufacture of other plastic products.

For the year ended 30 April 2024, the following subsidiaries were entitled to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies:

Dataroll Limited

14

Stocks

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Raw materials and consumables

1,146,822

1,929,485

1,107,686

1,884,470

Finished goods and goods for resale

112,760

398,500

112,760

398,500

1,259,582

2,327,985

1,220,446

2,282,970

 

Vapormatt Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Group

Impairment of inventories

The amount of impairment loss included in profit or loss is £13,429 (2023 - £Nil).

The carrying amount of stocks pledged as security for liabilities amounted to £1,259,582 (2023 - £2,327,985).

Company

Impairment of inventories

The amount of impairment loss included in profit or loss is £13,429 (2023 - £Nil).

The carrying amount of stocks pledged as security for liabilities amounted to £1,220,446 (2023 - £2,282,970).

15

Debtors

   

Group

Company

Current

Note

2024
£

2023
£

2024
£

2023
£

Trade debtors

 

1,571,904

1,796,467

1,368,545

1,356,883

Amounts owed by related parties

25

270,220

871,727

386,099

955,140

Other debtors

 

44,949

118,761

43,379

125,353

Prepayments

 

193,329

123,151

175,367

105,597

Accrued income

 

65,295

816,050

65,295

650,415

Amounts recoverable on contract

 

344,218

951,045

344,218

950,941

Income tax asset

10

150,280

2,710

147,560

-

   

2,640,195

4,679,911

2,530,463

4,144,329

Group

The carrying amount of debtors pledged as security for liabilities amounted to £2,640,195 (2023 - £4,679,911).

Company

The carrying amount of debtors pledged as security for liabilities amounted to £2,530,463 (2023 - £4,144,329).

16

Cash and cash equivalents

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Cash at bank

258,555

397,262

233,985

359,681

 

Vapormatt Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

17

Creditors

   

Group

Company

Note

2024
£

2023
£

2024
£

2023
£

Due within one year

 

Loans and borrowings

22

209,301

93,207

209,301

93,207

Trade creditors

 

1,427,801

1,869,514

1,430,474

1,503,216

Amounts due to related parties

25

-

-

69,519

-

Social security and other taxes

 

162,632

167,942

159,590

156,320

Outstanding defined contribution pension costs

 

8,527

-

7,896

-

Other creditors

 

105,206

269,735

105,206

84,607

Accruals

 

608,036

2,702,338

491,470

2,667,295

Deferred income

 

802,273

1,068,175

802,273

1,068,175

 

3,323,776

6,170,911

3,275,729

5,572,820

Due after one year

 

Loans and borrowings

22

77,781

144,699

77,781

144,699

18

Provisions for liabilities

Group

Deferred tax
£

Total
£

At 1 May 2023

2,721

2,721

Provisions used

(2,721)

(2,721)

At 30 April 2024

-

-

19

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £50,191 (2023 - £50,540).

Contributions totalling £8,527 (2023 - £Nil) were payable to the scheme at the end of the year and are included in creditors.

 

Vapormatt Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

20

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary A of £1 each

130,500

130,500

130,500

130,500

Ordinary B of £1 each

130,500

130,500

130,500

130,500

261,000

261,000

261,000

261,000

Rights, preferences and restrictions

Ordinary A and B shares have the following rights, preferences and restrictions:
The ordinary shares have full voting rights and rights to dividends at the discretion of the directors.

21

Reserves

Group

Other reserves

This reserve comprises of the gains and losses arising upon the translating of opening net assets at a closing rate that differs from the previous closing rate. This reserve also includes foreign currency differences on intercompany differences.

Profit and loss account

This reserve is used to record accumulated profit and losses net of any dividend paid to equity shareholders.

The changes to each component of equity resulting from items of other comprehensive income for the current year were as follows:

Foreign currency translation
£

Total
£

Foreign currency translation gains/losses

(689)

(689)

The changes to each component of equity resulting from items of other comprehensive income for the prior year were as follows:

Foreign currency translation
£

Total
£

Foreign currency translation gains/losses

2,210

2,210

Company

Profit and loss account

This reserve is used to record accumulated profit and losses net of any dividend paid to equity shareholders.

 

Vapormatt Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

22

Loans and borrowings

Non-current loans and borrowings

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Bank borrowings

69,333

133,333

69,333

133,333

Finance lease liabilities

8,448

11,366

8,448

11,366

77,781

144,699

77,781

144,699

Current loans and borrowings

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Bank borrowings

206,031

64,000

206,031

64,000

Finance lease liabilities

3,270

29,207

3,270

29,207

209,301

93,207

209,301

93,207

Group and company

Bank borrowings

The bank loan consists of three loans and is denominated in GBP with a nominal interest rate of 3.72% over the base rate to 20%, and the final instalment is due 14 May 2026. The carrying amount at year end is £275,364 (2023 - £197,333).

The bank loan is secured by way of an unlimited debenture dated 11 April 2019.

Other borrowings

The hire purchase liabilities is denominated in GBP with a nominal interest rate of between 6.6% and 10%, and the final instalment is due on 1 November 2027. The carrying amount at year end is £11,718 (2023 - £40,573).

The hire purchase liabilities are secured over the assets under the hire purchase agreements.

23

Obligations under leases and hire purchase contracts

Group and company

Finance leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

3,994

31,118

Later than one year and not later than five years

10,319

14,313

14,313

45,431

 

Vapormatt Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

168,425

135,237

Later than one year and not later than five years

478,603

399,278

Later than five years

352,273

370,834

999,301

905,349

The amount of non-cancellable operating lease payments recognised as an expense during the year was £198,679 (2023 - £163,889).

24

Analysis of changes in net debt

Group

At 1 May 2023
£

Financing cash flows
£

At 30 April 2024
£

Cash and cash equivalents

Cash

397,262

(138,707)

258,555

Borrowings

Long term borrowings

(144,699)

66,918

(77,781)

Short term borrowings

(93,207)

(116,094)

(209,301)

(237,906)

(49,176)

(287,082)

 

159,356

(187,883)

(28,527)

Company

At 1 May 2023
£

Financing cash flows
£

At 30 April 2024
£

Cash and cash equivalents

Cash

359,681

(125,696)

233,985

Borrowings

Long term borrowings

(144,699)

66,918

(77,781)

Short term borrowings

(93,207)

(116,094)

(209,301)

(237,906)

(49,176)

(287,082)

 

121,775

(174,872)

(53,097)

 

Vapormatt Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

25

Related party transactions

Group and company

Summary of transactions with parent and subsidiaries

The group has taken advantage of the exemptions in Financial Reporting Standard 102 Section 33 and has not disclosed transactions between wholly owned members of the same group.
 

Summary of transactions with other related parties

During the year, Vapormatt Limited bought services from an other related party, outside the group.
 

Expenditure with and payables to related parties

2024

Other related parties
£

Rent payable

105,109

2023

Other related parties
£

Rent payable

115,133

Other cost recharges

1,385

116,518

26

Parent and ultimate parent undertaking

The company's immediate parent is Vapormatt Limited, incorporated in Guernsey.

 The most senior parent entity producing publicly available financial statements is Vapormatt Limited, incorporated in the UK.