REGISTERED NUMBER: |
BATTEN AND ALLEN LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2024 |
REGISTERED NUMBER: |
BATTEN AND ALLEN LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2024 |
BATTEN AND ALLEN LIMITED (REGISTERED NUMBER: 01075810) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Cash Flow Statement | 12 |
Notes to the Cash Flow Statement | 13 |
Notes to the Financial Statements | 14 |
BATTEN AND ALLEN LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MAY 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
(Statutory Auditor) |
Sovereign House |
12 Warwick Street |
Coventry |
CV5 6ET |
BATTEN AND ALLEN LIMITED (REGISTERED NUMBER: 01075810) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MAY 2024 |
The directors present their strategic report for the year ended 31 May 2024. |
REVIEW OF BUSINESS |
We aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. This review is consistent with the size and nature of the business. |
As mentioned in our last report, due to the end of the re-stocking within the supply chain in the previous financial period the activity levels of the business were much reduced throughout the year as expected. This trend has also continued in the first half of the current period before picking up again in the calendar year 2025, and the current order intake supports our expectations for a much improved performance in the financial year ending May 2026. |
We have made the best of this quieter period by bringing several new projects into production, we expect these to hit full production volumes within the next 18 months. We have also continued to strengthen the pipeline for new business, and maintained investment in new production technology to ensure we are well placed to deal with the expected increase in demand. |
We have maintained good control over our internal costs throughout the period despite the continuing inflationary pressure, although the increase in energy and labour costs will inevitably increase our cost base and we are looking to increase efficiency to reduce the impact of this. |
As a large exporter, we are subjected to movements in the sterling exchange rates particularly against the US Dollar and the Euro. Exchange rates against the US Dollar fluctuated between 1.21 and 1.31 during the year. In general terms stronger sterling has an adverse impact on our profitability. |
Capital expenditure for the year was £1.2m with investments being made primarily in precious metal plating capability, IT infrastructure and improvement to our press shop processes. The additional capabilities will improve our ability to win new business, while the process improvements will help to increase efficiencies. The company has utilised its strong balance sheet together with asset finance to enable us to continue to invest in the long-term future of the company. |
As stated previously, we have seen a large increase in inventory levels in previous years. As expected inventory levels did decline over the course of the year, we will continue efforts to reduce this further but the addition of new projects with higher value lines of inventory will make this challenging. |
FINANCIAL KEY PERFORMANCE INDICATORS |
For the reason mentioned above, turnover has reduced by 33.9% to £15.2m, gross profit margin reduced from 22.1% to 12.9% and operating profit has reduced from £2,114k to £88k. |
The company's year end net asset position reduced by £0.1m to £8.3m and the cash at bank increased by £0.5m to £4.1m. |
BATTEN AND ALLEN LIMITED (REGISTERED NUMBER: 01075810) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MAY 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
There are no major changes in the risks and uncertainties facing the business which principally derive from global demand for products in the electronics industry and our position as a UK sub-contractor supplying on a global basis. |
As a member of the supply chain for products in this industry the company is subject to changes in consumer demand and stock holding policies of other members of the supply chain, both of which are dependent upon global economic conditions. The company maintains a buffer of cash resources to deal with such fluctuations. |
The company is also affected by changes in foreign exchange rates as around 90% of the company's turnover is generated in currencies other than GBP. |
The availability of critical materials used in the manufacturing process is always an area of concern and needs constant monitoring to ensure stock levels are maintained. Inflationary pressures, particularly staff costs and utility prices, are an obvious concern as they are for the vast majority of businesses. The company is also affected by changes in the underlying cost of a number of materials, notably copper, gold, tin and nickel. The company regularly monitors these costs and, in the main, enters into sales contracts which allow changes in material costs to be passed on. |
It is important that the company continues to keep at the forefront of technology within our sector and at any one time is pursuing new ideas and investing in new processes. There is no certainty that these developments will always result in productive results. |
The company maintains a number of systems and procedures to deal with disaster scenarios including a fire rated tool store, offsite IT system back-up and critical working insurance cover. |
FUTURE DEVELOPMENTS AND RESEARCH AND DEVELOPMENT |
In recent years, the company has made a strong investment in research and development and will continue to do so for the foreseeable future. This will increase both efficiency and production. |
ON BEHALF OF THE BOARD: |
26 February 2025 |
BATTEN AND ALLEN LIMITED (REGISTERED NUMBER: 01075810) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MAY 2024 |
The directors present their report with the financial statements of the company for the year ended 31 May 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of manufacture and plating of precision pressings and the manufacture of press tools and assembly machines for the electronics industry. |
DIVIDENDS |
Interim dividends per share were paid as follows: |
£35,112 | - 28 June 2023 |
£35,112 | - 28 July 2023 |
£35,112 | - 25 August 2023 |
£35,112 | - 28 September 2023 |
£35,112 | - 27 October 2023 |
£35,112 | - 28 November 2023 |
£35,112 | - 28 December 2023 |
£35,112 | - 26 January 2024 |
£35,112 | - 28 February 2024 |
£33,397 | - 8 April 2024 |
£33,397 | - 1 May 2024 |
The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 31 May 2024 will be £ |
Dividends paid after 31st May 2024 but before the date of this report total £292,866. |
FUTURE DEVELOPMENTS |
In recent years, the company has made a strong investment in research and development and will continue to do so for the foreseeable future. This will increase both efficiency and production. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 June 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
ACQUISITION OF OWN SHARES |
During the year the company purchased 245 of its own £1 shares for £230,629. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
BATTEN AND ALLEN LIMITED (REGISTERED NUMBER: 01075810) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MAY 2024 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Burrows Scarborough Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BATTEN AND ALLEN LIMITED |
Opinion |
We have audited the financial statements of Batten and Allen Limited (the 'company') for the year ended 31 May 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 company's affairs as at 31 May 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors 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 Report of the Directors. |
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, 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BATTEN AND ALLEN LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on pages four and five, 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 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. |
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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the company's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. |
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 frameworks that the company operates in and how the company is complying with the legal and regulatory frameworks; |
- enquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known 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. |
As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are employment law, health and safety legislation, FRS 102, the Companies Act 2006 and tax law. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements, which included: |
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. |
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and assessing whether the judgements made in making accounting estimates are indicative of potential bias. |
- Enquiring of management around actual and potential litigation and claims, including health and safety. |
- Enquiring of company's staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations. |
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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BATTEN AND ALLEN LIMITED |
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 a Report of the Auditors 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. |
for and on behalf of |
(Statutory Auditor) |
Sovereign House |
12 Warwick Street |
Coventry |
CV5 6ET |
BATTEN AND ALLEN LIMITED (REGISTERED NUMBER: 01075810) |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 31 MAY 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
1,875,149 | 2,988,858 |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
117,652 | 2,153,655 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME |
Purchase of own shares | ( |
) |
Income tax relating to other comprehensive income |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
( |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
BATTEN AND ALLEN LIMITED (REGISTERED NUMBER: 01075810) |
BALANCE SHEET |
31 MAY 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors: amounts falling due within one year | 12 |
Debtors: amounts falling due after more than one year |
12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 14 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Share premium | 21 |
Capital redemption reserve | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
BATTEN AND ALLEN LIMITED (REGISTERED NUMBER: 01075810) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MAY 2024 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 June 2022 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 May 2023 |
Changes in equity |
Reduction in share capital | (245 | ) | - | - | - | (245 | ) |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 May 2024 |
BATTEN AND ALLEN LIMITED (REGISTERED NUMBER: 01075810) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MAY 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax refund |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Proceeds from new finance leases | 934,236 | 1,313,746 |
Capital repayments in year | ( |
) | ( |
) |
Amount introduced by directors | 129,535 | - |
Amount withdrawn by directors | - | 206,847 |
Share buyback | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
3,560,711 |
4,208,378 |
Cash and cash equivalents at end of year | 2 | 4,056,480 |
BATTEN AND ALLEN LIMITED (REGISTERED NUMBER: 01075810) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MAY 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Finance costs | 95,542 | 39,286 |
Finance income | (30,058 | ) | (39,911 | ) |
951,022 | 2,835,966 |
Decrease/(increase) in stocks | ( |
) |
Decrease in trade and other debtors |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 May 2024 |
31.5.24 | 1.6.23 |
£ | £ |
Cash and cash equivalents | 4,056,480 | 3,560,733 |
Bank overdrafts | ( |
) |
4,056,480 | 3,560,711 |
Year ended 31 May 2023 |
31.5.23 | 1.6.22 |
£ | £ |
Cash and cash equivalents | 3,560,733 | 4,208,387 |
Bank overdrafts | ( |
) | ( |
) |
3,560,711 | 4,208,378 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.6.23 | Cash flow | At 31.5.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 3,560,733 | 495,747 | 4,056,480 |
Bank overdrafts | (22 | ) | 22 | - |
3,560,711 | 4,056,480 |
Debt |
Finance leases | (1,475,611 | ) | (490,076 | ) | (1,965,687 | ) |
(1,475,611 | ) | (490,076 | ) | (1,965,687 | ) |
Total | 2,085,100 | 5,693 | 2,090,793 |
BATTEN AND ALLEN LIMITED (REGISTERED NUMBER: 01075810) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2024 |
1. | STATUTORY INFORMATION |
Batten and Allen Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Significant judgements and estimates |
Estimates and judgements are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates that involve judgements that have been made in the process of applying the above accounting policies that have had a significant effect on amounts recognised in the financial statements include useful economic life of tangible fixed assets, bad debts provisions, stock provisions and absorption of labour and overheads in stock. |
Revenue |
Revenue is recognised to the extent that it is probable that economic benefits will flow to the company and revenue can be easily measured. Revenue is measured as the fair value of the consideration receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
Sale of goods |
Revenue from the sales of goods is recognised when all of the following conditions are satisfied: |
- the Company has transferred the significant risks rewards of ownership to the buyer; |
- the Company retains neither continuing managerial involvement to the degree usually associated with | ownership nor effective control over the goods sold; |
- the amount of revenue can be measured reliably; |
- it is probable that the company will received the consideration due under the transaction; and |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Assets under construction are not depreciated. |
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. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
BATTEN AND ALLEN LIMITED (REGISTERED NUMBER: 01075810) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Going concern |
The directors monitor the business on a timely basis in order to assess performance and manage business risk. The directors have given consideration to the cash flow forecasts and budgeted profitability for a period of at least 12 months from the date of approval of the financial statements. As noted in the principal risks and uncertainties disclosure there are certain important customer relationships which are long standing and the directors do not anticipate material alterations. Furthermore, the directors are satisfied that the company has access to adequate resources to enable it to adjust to any unforeseen changes to its business model. On this basis the directors are of the opinion that there are no material uncertainties in relation to going concern and therefore believe that it is appropriate to prepare the financial statements on a going concern basis. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom |
Europe |
Rest of the world | 8,657,770 | 14,180,193 |
BATTEN AND ALLEN LIMITED (REGISTERED NUMBER: 01075810) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Production | 90 | 97 |
Distribution | 9 | 9 |
Administration | 19 | 18 |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets | 604,201 | 577,822 |
Depreciation - finance leases | 261,853 | 202,158 |
Profit on disposal of fixed assets | (2,624 | ) | (57,758 | ) |
Auditors' remuneration | 19,283 | 37,268 |
Foreign exchange differences | (2,143 | ) | 79,666 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank interest |
Hire purchase |
BATTEN AND ALLEN LIMITED (REGISTERED NUMBER: 01075810) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
7. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
Adjustment to prior year | (81,519 | ) | - |
Deferred tax: |
Deferred tax | ( |
) |
Deferred tax prior adjustment | (379,680 | ) | - |
Total deferred tax | ( |
) |
Tax on profit | ( |
) |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
Remeasurement of deffered tax charge for changes in tax rate | - | 96,482 |
Depreciation on Fixed assets not subject to capital allowances | 9,104 | 37,092 |
Super deduction enhanced capital allowances | - | (74,624 | ) |
Total tax (credit)/charge | (466,949 | ) | 482,683 |
Tax effects relating to effects of other comprehensive income |
2024 |
Gross | Tax | Net |
£ | £ | £ |
Purchase of own shares | ( |
) | - | (230,384 | ) |
BATTEN AND ALLEN LIMITED (REGISTERED NUMBER: 01075810) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
7. | TAXATION - continued |
Deferred tax: |
Deferred tax included in the balance sheet is as follows: |
2024 | 2023 |
£ | £ |
Included in provisions for liabilities (note 20) | 225,017 | 230,767 |
Accelerated capital allowances | 225,017 | 274,266 |
Short-term timing difference | - | (43,499 | ) |
The expectation is that the deferred tax liability will fall by £152,348 in the next financial year. This consists of the tax on depreciation that will be charged in excess of capital allowances to be claimed in the year to 31st May 2025 on the specific assets on the balance sheet at 31st May 2024 that are eligible for capital allowances. |
8. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of £1.00 each |
Interim |
9. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 June 2023 |
Additions |
Disposals | ( |
) |
At 31 May 2024 |
DEPRECIATION |
At 1 June 2023 |
Charge for year |
Eliminated on disposal | ( |
) |
At 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
BATTEN AND ALLEN LIMITED (REGISTERED NUMBER: 01075810) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
9. | TANGIBLE FIXED ASSETS - continued |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 June 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 May 2024 |
DEPRECIATION |
At 1 June 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
In the previous year Assets under construction of £274,149 relating to plant of equipment were shown separately. For the presentation of this years accounts this amount has been shown within the plant and equipment figures above. |
10. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST |
At 1 June 2023 |
and 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: Bridge End, Love Lane Trading Estate, Cirencester, Glos., GL7 1NQ |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
BATTEN AND ALLEN LIMITED (REGISTERED NUMBER: 01075810) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
10. | FIXED ASSET INVESTMENTS - continued |
Registered office: Bridge End, Love Lane Trading Estate, Cirencester, Glos., GL7 1NQ |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Investments in subsidiaries are measured at cost less accumulated impairment. |
11. | STOCKS |
2024 | 2023 |
£ | £ |
Raw materials and consumables |
Work-in-progress |
Finished goods |
12. | DEBTORS |
2024 | 2023 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Amounts recoverable on contract |
Other debtors |
Directors' current accounts | 58,151 | 56,872 |
Taxation |
VAT |
Prepayments |
Amounts falling due after more than one year: |
Other debtors |
Aggregate amounts |
Included in Other debtors falling due after more than one year are amounts owed to the company by directors totalling £134,184 (2023 £263,719). |
BATTEN AND ALLEN LIMITED (REGISTERED NUMBER: 01075810) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Hire purchase contracts (see note 16) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Hire purchase contracts (see note 16) |
15. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Hire purchase contracts | 1,965,687 | 1,475,611 |
BATTEN AND ALLEN LIMITED (REGISTERED NUMBER: 01075810) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
18. | FINANCIAL INSTRUMENTS |
All financial assets and liabilities are measured at amortised cost. |
19. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 225,017 | 610,447 |
Deferred |
tax |
£ |
Balance at 1 June 2023 |
Credit to Statement of Comprehensive Income during year | ( |
) |
Prior year adjustment | (379,680 | ) |
Balance at 31 May 2024 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1.00 | 4,771 | 5,016 |
The company purchased 245 of its own shares in the period to 31st May 2024. |
All shares have full rights in respect to voting, dividends and to participate in a distribution (including on winding up). |
21. | RESERVES |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 June 2023 | 8,448,085 |
Profit for the year |
Dividends | ( |
) | ( |
) |
Purchase of own shares | (230,629 | ) | - | 245 | (230,384 | ) |
At 31 May 2024 | 8,323,958 |
Retained earnings |
This reserve records the distributable reserves of the company. |
Share premium |
This reserve records the amount above the nominal value received for shares sold. |
Capital redemption reserve |
This reserve records the nominal value of shares repurchased by the company. |
22. | PENSION COMMITMENTS |
The company operates defined contribution pension schemes. The assets of the schemes are held separately from those of the company in independently administered funds. The pension cost represents contributions payable by the company to the fund and amounted to £281,631 (2023 £389,829). Contributions totalling £nil (2023 £nil) were payable to the funds at the year end. |
BATTEN AND ALLEN LIMITED (REGISTERED NUMBER: 01075810) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
23. | CAPITAL COMMITMENTS |
2024 | 2023 |
£ | £ |
Contracted but not provided for in the |
financial statements |
24. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 May 2024 and 31 May 2023: |
2024 | 2023 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts repaid | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
The loan made to S A Batten, a director, is repayable on demand, and interest was charged at 2.25% per annum amounting to £1,279 during the year. |
Loans to D Legg and D Merchant, both directors, are repayable in more than 5 years and no interest in chargeable. |
25. | RELATED PARTY DISCLOSURES |
2024 | 2023 |
£ | £ |
Amount due to related party |
BATTEN AND ALLEN LIMITED (REGISTERED NUMBER: 01075810) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2024 |
25. | RELATED PARTY DISCLOSURES - continued |
At the year end, the company owed Palmer Plating Limited, a subsidiary company, £47,600 (2023 £47,600). |
At the year end, the company owed Batten and Allen International Limited, a subsidiary company, £48,000 (2023 £48,000). |
26. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is |