Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2023
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
COMPANY INFORMATION
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
CONTENTS
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors present their strategic report of the Company and the Group for the year ended 31 December 2023.
Principal activity The principal activity of the Group is the manufacture and installation of vehicle mounted access platforms, through importation and distribution of its lifts. The Group prides itself on offering effective product support, with a quality service that synergises with the premium quality of its platforms. The principal activity of the Company is that of a holding company. The directors expect the general level and scope of the Group's activity to increase in future years in line with the Group's growth plan. This includes increasing the Group's presence in the after sales and service markets for Versalift products in the UK and Ireland.
The loss for the year, after taxation, amounted to £2,509,600 (2022 - profit £669,771).
The Group’s key performance indicators are set out in the table below: The financial year ending 31 December 2023 was marked by significant challenges and opportunities. Despite a substantial increase in turnover to £39,813,475 from £28,408,526 in 2022, the Group faced increased cost pressures, resulting in a gross profit of £2,934,225, down from £4,631,309 in the previous year. Administrative expenses rose to £5,288,323, reflecting investments in infrastructure.
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Market risk
The Group has majority market share in the importation, manufacture, distribution and provision of associated services relating to the sale of aerial lifts across the UK and Ireland. There is a clearly defined, established customer base, with a market that is largely influenced by the requirements of the larger customers in the telecoms, electric utilities, highways, municipal and rental sectors. As such, the risk to the Group is that customer demand declines due to lack of investment in critical infrastructure. The Group's exposure here is mitigated by having a strong order backlog, and growing sales revenues generated through several strategic acquisitions at group level, giving access to a broadening range of products, with wider market penetration. Following the addition of Ruthman Steiger and Ecoline to the Group's portfolio in 2022; 2023 has seen the introduction of a Ruthman Bluelift, an established brand of Spider Lifts, required when the most challenging work at height/access solution is necessary; and another opportunity to leverage growth potential. The increased product portfolio and the Group's reputation for strong customer service across a multi-brand operation also creates an after-sales revenue stream, with increased necessity for parts, service and contracts for a broadening portfolio. The Group continues to innovate with the introduction of new product lines and remain focused on growing both sales revenues and profitability with the ongoing development in these areas. The Group's continued investment in these new working-at-height solutions is a fundamental part of its ongoing growth strategy. The Group's established product support, parts and training proposition, provides support to a market of around 8,500 Versalift & Ruthman platforms. Continued focus in this important area will ensure customer retention and deliver alignment to the premium Versalift and Ruthman brands to a premium product support offering.
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Business Performance
Turnover and Profitability: The Group achieved a turnover of £39,813,475, a 40% increase from the previous year. However, the cost of sales rose significantly to £36,879,250, resulting in a reduced gross profit margin. The operating loss for the year was £2,348,131, compared to a profit of £1,079,738 in 2022. Administrative Expenses: Administrative expenses increased by 45% to £5,288,323. This rise was primarily due to strategic investments in expansion of the workforce to enhance operational capabilities. Interest and Taxation: Interest receivable and similar income amounted to £20,105, compared to an income of £9,153 in 2022. There was an interest expense this year of £162,405 related to financing interest which was new in the year with no interest expense in 2022. The tax charge for the year was £19,169, resulting in a net loss of £2,509,600. Looking ahead, the Group remains committed to its strategic goals of growth and sustainability through: 1. Innovation: Continued investment in research and development to drive product innovation and maintain competitive advantage. 2. Operational Efficiency: Enhancing operational efficiency through process improvements and cost management initiatives. 3. Customer Focus: Strengthening customer relationships and expanding service offerings to meet evolving market needs. The directors are confident that these strategic initiatives, along with the opening of the new site in Ireland and the expected sales growth in 2024, will enable the Group to overcome current challenges and achieve long-term success.
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors of the Group are committed to fulfilling their duty under section 172 of the Companies Act 2006 to promote the success of the Group for the benefit of its members. In doing so, the directors have regard to the following matters:
1. Long-Term Decision Making: The directors ensure that all decisions are made with a long-term perspective, considering the sustainable growth and success of the Group. Strategic initiatives and investments are evaluated based on their potential to deliver long-term value. 2. Interests of Employees: The Group recognizes that its employees are its most valuable asset. The directors are committed to providing a safe, inclusive, and supportive working environment. Regular training and development programs are conducted to enhance employee skills and career growth. 3. Fostering Business Relationships: The directors prioritise maintaining strong relationships with customers, suppliers, and other key stakeholders. By fostering trust and collaboration, the Group aims to create mutually beneficial partnerships that drive business success. 4. Community and Environment: The Group is dedicated to operating in a socially responsible manner. The directors actively support community initiatives and are committed to reducing the environmental impact of the Group’s operations through sustainable practices and initiatives. 5. High Standards of Business Conduct: The directors uphold the highest standards of business conduct and corporate governance. Ethical behaviour and compliance with legal and regulatory requirements are integral to the Group’s operations. 6. Fair Treatment of Shareholders: The directors ensure that the interests of all shareholders are considered and that they are treated fairly. Transparent communication and regular updates are provided to keep shareholders informed about the Group’s performance and strategic direction. By adhering to these principles, the directors aim to promote the success of the Group, ensuring its long-term sustainability and delivering value to all stakeholders.
This report was approved by the board and signed on its behalf.
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors present their report and the financial statements for the year ended 31 December 2023.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments 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;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The loss for the year, after taxation, amounted to £2,509,600 (2022 - profit £669,771).
The directors do not recommend the payment of a dividend (2022 - £NIL).
The directors who served during the year were:
The directors expect the business to continue operating for the foreseeable future.
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
The Streamlined Energy and Carbon Reporting (“SECR”) disclosure presents the Group’s carbon footprint within the UK across Scope 1, 2 and Scope 3 mandatory business travel emissions, an appropriate intensity metric and the total energy use of electricity, gas and transport fuel.
The table below shows the Group’s energy use and associated Greenhouse Gas (“GHG”) emissions aligned to the Greenhouse Gas Protocol. Notes
1.Operational approach has been used. GHG Emissions reporting is in line with the GHG Protocol Corporate Accounting and Reporting Standard. All emissions and conversion factors are sourced from Defra, 2022 (https://www.gov.uk/government /publications /greenhouse-gas-reporting -conversion -factors-2022). The calculation method is - Activity Data x Emission Factor = GHG Emissions. Activity Data x Conversion Factor = kWh consumption. Minor difference between actual and reported GHG emissions might occur due to rounding (not more than 1%).
2.Electric consumption for electric vehicles is included within Scope 2 emissions when they are charged on site.
3.Transport data was calculated from litres to kWh and GHG emissions using the method above.
4.Based on the nature of our business, as well as following the recommendations of the SECR legislation the Company chose the following intensity metric; Full time employees (“FTE”) average. Through future comparisons, this will show the trend in the Group’s energy efficiency.
5.No comparative data has been presented as this is the first year that the company is in scope for disclosure of Streamlined Energy and Carbon Reporting disclosures.
6.During the year, the Board reviewed energy efficiency practices for implementation in 2024 including transition to hydrid and electric vehicles and improved tracking measures for recycling
There have been no significant events affecting the Group since the year end.
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
The auditors, MHA, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TIME MANUFACTURING ACQUISITION (UK) LIMITED
We have audited the financial statements of Time Manufacturing Acquisition (UK) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, 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).
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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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's or the parent 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.
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TIME MANUFACTURING ACQUISITION (UK) LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TIME MANUFACTURING ACQUISITION (UK) LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙enquiry of management and those charged with governance around actual and potential litigation and claims;
∙performing audit work over the risk and management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
∙reviewing minutes of meetings of those charged with governance; and
∙reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable 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 Auditors' Report.
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TIME MANUFACTURING ACQUISITION (UK) LIMITED (CONTINUED)
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 Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditor
Date:
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
REGISTERED NUMBER: 10560981
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 42 form part of these financial statements.
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
REGISTERED NUMBER: 10560981
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by by:
The notes on pages 19 to 42 form part of these financial statements.
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Time Manufacturing Acquisition (UK) Limited is a private company, limited by shares, registered in England and Wales. The Company's registered number is 10560981, the registered office address is 1 Altendiez Way, Burton Latimer, Kettering, Northamptonshire, NN15 5YZ.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The Company has also taken advantage of the requirements of Section 7 Statement of Cash Flows, as its results have been reported in the Consolidated Statement of Cash Flows presented in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
The directors confirm that, having reviewed the Group's cash requirements for the next 12 months from the date of signing the financial statements, they have formed a judgement that the Group has reasonable expectations that adequate resources will be available to continue operations for the foreseeable future. Therefore, the financial statements have been prepared on a going concern basis. In forming this judgement, the directors have reviewed forecasts for 2025, cashflow projections from the date of approval of these financial statements, contingency planning and the sufficiency of banking facilities. The directors will continue to monitor developments closely and adjust their forecasting as required.
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Development costs are accounted for in accordance with Section 18 of FRS 102 on Intangible Assets other than Goodwill. Development expenditure is capitalised as an intangible asset if, and only if, all of the following conditions are met:
∙Technical Feasibility: The technical feasibility of completing the intangible asset so that it will be available for use or sale is established.
∙Intention to Complete: The Group has the intention to complete the intangible asset and use or sell it.
∙Ability to Use or Sell: The Group has the ability to use or sell the intangible asset.
∙Future Economic Benefits: The Group can demonstrate how the intangible asset will generate probable future economic benefits. Among other factors, the Group may demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself.
∙Availability of Resources: The Group has adequate technical, financial, and other resources available to complete the development and to use or sell the intangible asset.
∙Reliable Measurement: The expenditure attributable to the intangible asset during its development can be measured reliably.
Development costs meeting all the criteria above are capitalised and amortised over the estimated useful life of the intangible asset, which is reviewed annually. Capitalised development costs are initially measured at cost, including all directly attributable costs necessary to prepare the asset for its intended use. Amortisation begins when the asset is available for use and is charged on a systematic basis over the asset’s estimated useful life, which is determined based on the expected pattern of economic benefits generated from the asset.
At each reporting date, the carrying amount of capitalised development costs is reviewed for indicators of impairment. If such indicators exist, the recoverable amount is estimated, and an impairment loss is recognized in the income statement if the carrying amount exceeds the recoverable amount.
Expenditure incurred on development projects that do not meet the criteria for capitalisation is recognised as an expense when it is incurred.
Research costs, defined as costs incurred in the early phase of a project to obtain new scientific or technical knowledge, are expensed as incurred and not capitalised.
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
The site project is not depreciated.
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Group's Balance Sheet when the Group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Derecognition of financial instruments
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The directors have made the following policies in regards to income on service contracts and the capitalisation of development costs. Income on service contracts The income on service contracts is recognised on a straight line basis over the life of the contract. Capitalisation of development costs The development costs in relation to new product ranges and specialist work for specific contracts are amortised over the useful economic life of the product or the expected length of the related contract. Prepayment of UKCA costs The costs of obtaining the certification are prepaid over the length of which the certification is given, this is 3 years and released evenly over the period of certification.
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Analysis of turnover by country of destination:
Page 28
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 29
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 30
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 31
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
12.Taxation (continued)
The rate of Corporate Tax of 19% has been effective from 1 April 2017. The rate increased to 25% in April 2023.
The group anticipates to have in the region of £1m of losses carried forward at the reporting date. No deferred tax asset has been recognised due to the uncertainty of the timing of future profits.
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 35
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
15.Fixed asset investments (continued)
Subsidiary undertakings (continued)
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 37
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
In 2017 the Group received a loan from Time Manufacturing LLC, an intermediate parent company, for the financing of cash flows and investment. This is an interest-free loan.
Page 38
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
22.Deferred taxation (continued)
Prior period adjustment carried out during the 2023 accounts preparation:
Development costs were previously capitalised as an intangible asset relating to certain projects undertaken by the Company. A prior year adjustment was processed to removed £821,294 from the balance sheet, with the corresponding entry being recognised as an expense in the profit and loss account as it was concluded that none of the projects met the definition of being an internally generated identifiable asset. As a result, the profit for the year to 31 December 2022 decreased from £1,491,066 to £669,722. Various reclassifications have also taken place within the same financial statement areas as a result of a cleanse of the chart of accounts, as indicated throughout the financial statements. This includes reclassifications of salaries of £330,515 between cost of sales and administrative expenses to appropriately reflect the category of roles of individuals these costs are associated with. With regards to the company restatement, this relates to foreign exchange movements on an investment in joint venture erroneously recognised in the incorrect legal entity within the Group. This is now recognised in Versalift United Kingdom Limited which is also included in the consolidation and as such does not impact the Group position. This error results in a reversal of £246,106 to company retained earnings.
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £109,990 (2022 - £97,787). Contributions totaling £41,540 (2022 - £11,627) were payable to the fund at the reporting date and are held within other creditors.
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The Group has availed of the exemptions under Section 33 1A of FRS 102 - Related Party Disclosures not to provide details of related party transactions as it is a wholly owned subsidiary of Time Manufacturing Acquisition LLC which is preparing consolidated financial statements which include this Group. These financial statements can be obtained from 7601 Imperial Drive, PO Box 20368, Waco, Texas, 76702-0368, United States of America.
As at 31 December 2023 the Group owed £1,629,627 (2022: £1,683,956) in other payables due to Time Manufacturing Company Inc. This amount is interest free with £332,819 not repayable on demand and the remainder being repayable on demand. As at 31 December 2023 the Group owed £12,851,981 (2022: £Nil) and was owed £54,756 (2022: £Nil) by Time Export. This amount is interest free with £192,770 not repayable on demand and the remainder being repayable on demand. As at 31 December 2023 the Group owed £8,068,864 (2022: £6,793,755) and was owed £Nil (2022: £196,980) by Versalift Denmark A/S. As at 31 December 2023 there was £2,285,387 (2022: £788,070) owed to Time Manufacturing Company Inc, in relation to a working capital loan. This amount is interest free and not repayable on demand. As at 31 December 2023 there was £646,245 (2022: £646,245) owed to Versalift Denmark A/S, in relation to a working capital loan. This amount is interest free and not repayable on demand. As at 31 December 2023 the Group owed £1,959,895 (2022: £nil) to Time Manufacturing Acquisition Ltd in terms of an offset agreement in place with Ruthman Holdings GmbH, Ruthman Italia S.R.L. This consists of a total loan payable of £522,697, other payables of £1,430,451, and interest £6,747. This amount is interest free and not repayable on demand. As at 31 December 2023 the Group included £7,498 (2022: £Nil) in other receivables due from Ruthman Holdings GmbH. This amount is interest free and repayable on demand. As at 31 December 2023 the Group owed £403,457 (2022: £Nil) to Time Manufacturing Company Inc, in relation to a loan. This amount is interest free and not repayable on demand. As at 31 December 2023 the Group owed £7,206 (2022: £Nil) to Time Manufacturing Holdings Ltd, the group parent company, in relation to a loan. This amount is interest free and not repayable on demand. As at 31 December 2023 there was £1,131,002 (2022: £1,131,002) owed to Time Manufacturing Company Inc, in relation to a loan for investment purposes. As at 31 December 2023 the Group included £32,851 (2022: £Nil) in other payables due to France Elevateur. This amount is interest free and repayable on demand. As at 31 December 2023 the Group included £38,877 (2022: £nil) in other receivables due from Versalift Ireland Limited, a group company. This amount is interest free and repayable on demand.
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TIME MANUFACTURING ACQUISITION (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Time Manufacturing Acquisitions (UK) Ltd is itself a subsidiary of Time Manufacturing Acquisition LLC.
Time Manufacturing Acquisitions LLC is a business registered and operating in the United States of America. It's registered office address is 7601 Imperial Drive, PO Box 20368, Waco, Texas, 76702-0368, United States of America. The whole group was purchased in December 2021 by the H.I.G. Capital of which the Group is a member, who's address is 1271 Avenue of the Americas, 22nd Floor, New York, NY10020, United States. The ultimate parent entity is H.I.G Time Manufacturing Holdings, L.P. and there is no ultimate controlling party. Versalift United Kingdom Limited is a wholly owned subsidiary of Time Manufacturing Acquisitions (UK) Ltd and its financial statements are incorporated in the consolidated financial statements. The registered office is 1 Altendiez Way, Burton Latimer, Kettering, Northamptonshire, United Kingdom, NN15 5YZ. Versalift Ireland Limited is a wholly owned subsidiary of Time Manufacturing Acquisitions (UK) Ltd and its financial statements are incorporated in the consolidated financial statements. The registered office is Unit 55 Broomhill Drive, Broomhill Industrial Estate, Dublin, Ireland, D24 XT25.
The subsidiary, Versalift United Kingdom Limited's bank has guaranteed the Customs and Excise authorities for amounts up to £80,000 (2022 - £80,000). The Group has indemnified the bank against any losses under this guarantee.
As at 31 December 2023, the subsidiary held two forward contracts to manage foreign currency risk related to anticipated sales denominated in US dollars. These contracts are not designated as hedging instruments under FRS 102.
Contract details: 1. Trade and effective date 2 November 2023, maturity date 7 May 2024 for a notional amount of $1m at a contract rate of £0.820563/USD. 2. Trade and effective date 27 December 2023, maturity date 28 March 2024 for a notional amount of $260k at a contract rate of £0.785100/USD. The fair values of the forward contracts at the reporting date, based on prevailing forward exchange rates, result in an unrealised loss of £10,513 which is not recognised in the Statement of Comprehensive Income. Unrealised exchange movements are only disclosed as part of the financial statement notes to provide information on the foreign currency risk managed by the subsidiary.
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