BOOTH WELSH AUTOMATION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Company registration number 02374159 (England and Wales)
BOOTH WELSH AUTOMATION LIMITED
COMPANY INFORMATION
Directors
Mr Martin Welsh
Mr David Armour
(Appointed 4 November 2024)
Mr Hugh Welsh
(Appointed 4 November 2024)
Mr Gordon Semple
(Appointed 4 November 2024)
Company number
02374159
Registered office
7th Floor
50 Broadway
London
England
SW1H 0BL
Auditor
William Duncan + Co (Audit) Ltd
Ellersley House
30 Miller Road
Ayr
Ayrshire
KA7 2AY
Business address
3 Riverside Way
Riverside Business Park
Irvine
Ayrshire
KA11 5DJ
Bankers
Royal Bank of Scotland plc
69 High Street
Irvine
Ayrshire
KA12 0AL
Solicitors
BTO Solicitors LLP
48 St Vincent Street
Glasgow
G2 6HS
BOOTH WELSH AUTOMATION LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 25
BOOTH WELSH AUTOMATION LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

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

Review of the business

Having celebrated Booth Welsh Automation’s 35th anniversary during this financial year, it has been a good time for the board to reinforce the traditions and principles that have contributed to our longevity and continued success. This has been one of the most successful years in our history, delivering strong revenue growth and margin improvement, allowing us to continue to invest for the long-term.

 

We are particularly pleased to have sustained our health and safety performance, recording our 18th successive year without a lost-time accident whilst delivering a workload of over 8.5m man hours in that time. Our commitment to quality across our business continues with the addition of the ISO 27001 accreditation during the year.

 

We are fast approaching the second anniversary of our Management Buy Out from the Clough Group, having now addressed all of the systems and financial legacy which impacted prior years’ performance. Our owner-managed structure now ensures long-term stability and an environment that encourages and rewards excellence for all of our people.

Principal risks and uncertainties

Booth Welsh Automation has always faced a constant challenge to evolve its technical capabilities and service offerings in a dynamic operating environment. As the rate of change continues to accelerate, fueled by local, national and international issues ranging including the geopolitical landscape, societal change and the emergence of innovation and new technologies, we constantly endeavour to stay ahead of these developments to remain a relevant, cost-effective and value-added partner for all stakeholders.

 

Artificial Intelligence has moved from being an interesting opportunity to a mainstream technology that has application to address the highest priority engineering challenges in most industry sectors. Booth Welsh has begun to incorporate AI technology and tools into our service lines and are helping clients to implement new processes and practices that improve yield and quality whilst also reducing costs and risk. We have also recognized that these factors place different demands on our staff and we have responded by expanding our talent base though targeted recruitment and training – for the first time ever, over 50% of our workforce are under 25, including a growing proportion with graduate or higher qualifications in a widening range of disciplines including software and gaming.

 

We recognize the impact that the modern day workplace has on our people and we continue to support our staff and contractor base to thrive in this environment. Flexible and remote working arrangements are now standard practice which we supplement through a diverse array of initiatives including exercise, and mindfulness sessions, providing education and support on mental and physical health issue and many other aspects of pastoral care.

 

Booth Welsh takes its social responsibilities seriously, with Environment, Diversity and Inclusion being key pillars of our business. In the last 12 months, we have invested and changed processes to reduce our carbon footprint and our impact on the environment generally and have undertaken a series of initiatives that have made a positive impact on the communities in which we operate. We remain committed to deliver exacting Net Zero commitments as part of the Net Zero Accelerator programme.

Development and performance

Having previously announced our strategic partnership with the University of Strathclyde through the establishment of Scotland’s first Digital Process Manufacturing Centre within our property at Irvine, we are pleased to report the centre was officially opened in early 2025. DPMC will showcase new and emerging digital technologies that will continue to revolutionise manufacturing on a global scale.

 

As we announced in our 2023 accounts, we have now integrated all operations and staff from our iTech subsidiary within Booth Welsh Automation. This has enabled the streamlining of operations, enhancing the automation services we continue to provide to a broad range of business sectors across the UK.

 

BOOTH WELSH AUTOMATION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Key performance indicators

Booth Welsh Automation and its board constantly seek to make marginal gains and improvements in every aspect of our business, sharing the benefits this approach delivers with our staff, customers, suppliers and other key stakeholders through enhanced service levels, improved health & safety performance, compliance with exacting quality and environmental standards, an inclusive business culture, technological advancement and innovative profit and risk-sharing business models. We manage performance across the business using a comprehensive suite of OKRs to ensure we deliver on each of the company’s key objectives: People; Planet; Place; Product; Profit. Performance against all targets are satisfactory and show continuing improvement as we drive business performance and implement succession strategies to ensure long-term business health.

 

On behalf of the board

Mr Martin Welsh
Director
5 March 2025
BOOTH WELSH AUTOMATION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

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

Principal activities

The principal activity of the company continued to be that of the provision of specialist control and engineering automation design services for blue chip clients, operating in industrial process industries, together with associated professional services to support customers through the entire product and process lifecycle. Professional services are supported by technical recruitment services for both internal and customer requirements.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr Martin Welsh
Mr David Armour
(Appointed 4 November 2024)
Mr Hugh Welsh
(Appointed 4 November 2024)
Mr Gordon Semple
(Appointed 4 November 2024)
Auditor

In accordance with the company's articles, a resolution proposing that William Duncan + Co (Audit) Ltd be reappointed as auditor of the company will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr Martin Welsh
Director
5 March 2025
BOOTH WELSH AUTOMATION LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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.

BOOTH WELSH AUTOMATION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BOOTH WELSH AUTOMATION LIMITED
- 5 -
Opinion

We have audited the financial statements of Booth Welsh Automation Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

BOOTH WELSH AUTOMATION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BOOTH WELSH AUTOMATION LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

BOOTH WELSH AUTOMATION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BOOTH WELSH AUTOMATION LIMITED (CONTINUED)
- 7 -

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Mr Neil Reid FCCA
Senior Statutory Auditor
For and on behalf of William Duncan + Co (Audit) Ltd
6 March 2025
Accountants
Statutory Auditor
Ellersley House
30 Miller Road
Ayr
Ayrshire
KA7 2AY
BOOTH WELSH AUTOMATION LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
24,433,316
23,969,943
Cost of sales
(18,675,147)
(19,356,651)
Gross profit
5,758,169
4,613,292
Administrative expenses
(5,366,858)
(4,349,314)
Other operating income
484,755
332,888
Exceptional item
4
-
0
(401,466)
Operating profit
5
876,066
195,400
Interest payable and similar expenses
8
(321,837)
(183,166)
Amounts written off investments
9
14,812
-
Profit before taxation
569,041
12,234
Tax on profit
10
(58,795)
(1,077)
Profit for the financial year
510,246
11,157

The profit and loss account has been prepared on the basis that all operations are continuing operations.

BOOTH WELSH AUTOMATION LIMITED
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
229,057
36,382
Tangible assets
13
1,823,095
704,667
2,052,152
741,049
Current assets
Stocks
14
58,027
58,027
Debtors
15
8,911,905
10,069,951
Cash at bank and in hand
178,065
794,370
9,147,997
10,922,348
Creditors: amounts falling due within one year
16
(7,579,300)
(8,599,284)
Net current assets
1,568,697
2,323,064
Total assets less current liabilities
3,620,849
3,064,113
Creditors: amounts falling due after more than one year
17
(31,095)
(43,400)
Provisions for liabilities
Deferred tax liability
20
102,067
43,272
(102,067)
(43,272)
Net assets
3,487,687
2,977,441
Capital and reserves
Called up share capital
22
10,000
10,000
Profit and loss reserves
3,477,687
2,967,441
Total equity
3,487,687
2,977,441

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 5 March 2025 and are signed on its behalf by:
Mr Martin Welsh
Director
Company registration number 02374159 (England and Wales)
BOOTH WELSH AUTOMATION LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 25 June 2022
10,000
3,534,584
3,544,584
Year ended 30 June 2023:
Profit and total comprehensive income
-
11,157
11,157
Dividends
11
-
(578,300)
(578,300)
Balance at 30 June 2023
10,000
2,967,441
2,977,441
Year ended 30 June 2024:
Profit and total comprehensive income
-
510,246
510,246
Balance at 30 June 2024
10,000
3,477,687
3,487,687
BOOTH WELSH AUTOMATION LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
2,350,835
507,345
Interest paid
(321,837)
(183,166)
Net cash inflow from operating activities
2,028,998
324,179
Investing activities
Purchase of intangible assets
(66,986)
-
0
Purchase of tangible fixed assets
(1,385,601)
(267,933)
Repayment of loans
14,812
-
0
Net cash used in investing activities
(1,437,775)
(267,933)
Financing activities
Repayment of borrowings
(498,753)
(2,183,487)
Proceeds from new bank loans
-
0
3,670,932
Repayment of bank loans
(702,302)
-
0
Payment of finance leases obligations
(6,473)
(4,238)
Dividends paid
-
0
(578,300)
Net cash (used in)/generated from financing activities
(1,207,528)
904,907
Net (decrease)/increase in cash and cash equivalents
(616,305)
961,153
Cash and cash equivalents at beginning of year
794,370
(166,783)
Cash and cash equivalents at end of year
178,065
794,370
BOOTH WELSH AUTOMATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
1
Accounting policies
Company information

Booth Welsh Automation Limited is a private company limited by shares incorporated in England and Wales. The registered office is , 7th Floor, 50 Broadway, London, England, SW1H 0BL.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Booth Welsh Automation Limited is a wholly owned subsidiary of BWA (Holdings) Ltd and of its ultimate parent, Booth Welsh Nexus Limited and the results of Booth Welsh Automation Limited are included in the consolidated financial statements of Booth Welsh Nexus Limited which are publicly available.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company meets its day to day working capital requirements through its bank facilities. The company's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the company should be able to operate within the level of its current facilities. After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
15% reducing balance
BOOTH WELSH AUTOMATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
2% straight line
Leasehold land and buildings
15% reducing balance
Plant and equipment
25% reducing balance
Furniture and fittings
15% reducing balance
IT Equipment
15% reducing balance
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.7
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 method. The carrying amount of stock is recognised as an expense in the period in which the related revenue is recognised.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

BOOTH WELSH AUTOMATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

BOOTH WELSH AUTOMATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

BOOTH WELSH AUTOMATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Sales
24,433,316
23,969,943
2024
2023
£
£
Turnover analysed by geographical market
UK
23,594,478
23,258,943
Europe
60,893
86,000
Australia
763,737
619,000
USA
14,058
2,000
Rest of World
150
4,000
24,433,316
23,969,943
4
Exceptional item
2024
2023
£
£
Expenditure
Exceptional reconstruction and migration costs
-
401,466
5
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
1,866
(3,878)
Fees payable to the company's auditor for the audit of the company's financial statements
32,380
36,401
Depreciation of owned tangible fixed assets
113,346
104,601
Loss on disposal of tangible fixed assets
12,336
-
Amortisation of intangible assets
15,802
6,420
Operating lease charges
-
36,000
BOOTH WELSH AUTOMATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Administration
37
35
Manufacturing
136
149
Total
173
184

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
8,628,132
8,413,522
Social security costs
909,856
1,079,217
Pension costs
199,150
208,636
9,737,138
9,701,375
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
153,838
155,266
Company pension contributions to defined contribution schemes
8,690
8,690
162,528
163,956

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
315,078
181,804
Other finance costs:
Interest on finance leases and hire purchase contracts
6,759
1,362
321,837
183,166
BOOTH WELSH AUTOMATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
9
Amounts written off investments
2024
2023
£
£
Amounts written back to current loans
14,812
-
10
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
58,795
1,077

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
569,041
12,234
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
142,260
3,059
Tax effect of expenses that are not deductible in determining taxable profit
19,438
108,077
Effect of change in corporation tax rate
-
0
(15,314)
Permanent capital allowances in excess of depreciation
6,110
6,110
Research and development tax credit
(103,694)
(68,777)
Other permanent differences
(64,114)
(33,155)
Deferred tax movements
58,795
1,077
Taxation charge for the year
58,795
1,077

 

11
Dividends
2024
2023
£
£
Interim paid
-
0
578,300
BOOTH WELSH AUTOMATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
12
Intangible fixed assets
Software
£
Cost
At 1 July 2023
43,344
Additions
66,986
Transfers
141,491
At 30 June 2024
251,821
Amortisation and impairment
At 1 July 2023
6,962
Amortisation charged for the year
15,802
At 30 June 2024
22,764
Carrying amount
At 30 June 2024
229,057
At 30 June 2023
36,382
BOOTH WELSH AUTOMATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
13
Tangible fixed assets
Freehold land and buildings
Leasehold land and buildings
Assets under construction
Plant and equipment
Furniture and fittings
IT Equipment
Motor vehicles
Total
£
£
£
£
£
£
£
£
Cost
At 1 July 2023
-
0
307,227
178,900
107,248
288,973
510,429
225,020
1,617,797
Additions
1,305,700
-
0
-
0
60,740
-
0
19,161
-
0
1,385,601
Disposals
-
0
-
0
(12,336)
-
0
-
0
-
0
-
0
(12,336)
Transfers
307,227
(307,227)
(141,491)
-
0
-
0
-
0
-
0
(141,491)
At 30 June 2024
1,612,927
-
0
25,073
167,988
288,973
529,590
225,020
2,849,571
Depreciation and impairment
At 1 July 2023
-
0
147,461
-
0
43,716
228,973
343,728
149,252
913,130
Depreciation charged in the year
-
0
24,149
-
0
16,388
8,631
25,842
38,336
113,346
Transfers
171,610
(171,610)
-
0
-
0
-
0
-
0
-
0
-
0
At 30 June 2024
171,610
-
0
-
0
60,104
237,604
369,570
187,588
1,026,476
Carrying amount
At 30 June 2024
1,441,317
-
0
25,073
107,884
51,369
160,020
37,432
1,823,095
At 30 June 2023
-
0
159,766
178,900
63,532
60,000
166,701
75,768
704,667
BOOTH WELSH AUTOMATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
13
Tangible fixed assets
(Continued)
- 21 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Motor vehicles
21,281
27,422
14
Stocks
2024
2023
£
£
Raw materials and consumables
58,027
58,027
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
5,372,700
4,626,524
Gross amounts owed by contract customers
2,338,041
3,049,205
Amounts owed by group undertakings
-
0
1,397,777
Other debtors
912,027
792,561
Prepayments and accrued income
289,137
203,884
8,911,905
10,069,951
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
18
2,968,630
3,670,932
Obligations under finance leases
19
4,238
4,238
Other borrowings
18
5,832
498,753
Payments received on account
1,702,635
1,527,280
Trade creditors
935,460
497,897
Amounts owed to group undertakings
11,509
-
0
Taxation and social security
883,248
723,556
Other creditors
324,994
30,716
Accruals and deferred income
742,754
1,645,912
7,579,300
8,599,284
BOOTH WELSH AUTOMATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
19
26,721
33,194
Other borrowings
18
4,374
10,206
31,095
43,400
18
Loans and overdrafts
2024
2023
£
£
Bank loans
2,968,630
3,670,932
Loans from group undertakings
-
0
92,921
Other loans
10,206
416,038
2,978,836
4,179,891
Payable within one year
2,974,462
4,169,685
Payable after one year
4,374
10,206

The bank overdraft is unsecured.

 

Bank loans include £2,968,630 relating to the company's invoice finance arrangement (2023 - £3,670,932). This amount is secured over the relevant debtors.

 

The other loans includes loans from The Energy Savings Trust which is both interest free and unsecured.

19
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
4,238
4,238
In two to five years
26,721
33,194
30,959
37,432

Finance leases are secured against the assets to which they relate.

BOOTH WELSH AUTOMATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
43,272
47,175
Provisions
58,795
(3,903)
102,067
43,272
2024
Movements in the year:
£
Liability at 1 July 2023
43,272
Charge to profit or loss
58,795
Liability at 30 June 2024
102,067
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
199,150
208,636

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10,000
10,000
10,000
10,000
23
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

BOOTH WELSH AUTOMATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
23
Related party transactions
(Continued)
- 24 -
Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Entities with control, joint control or significant influence over the company
-
0
486,111
-
0
-
0
Entities over which the entity has control, joint control or significant influence
41,695
-
0
131,924
208,735

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Entities over which the entity has control, joint control or significant influence
(11,509)
1,392,981
24
Ultimate controlling party

The immediate parent company is BWA (Holdings) Limited, a company incorporated in Scotland. The ultimate parent company is Booth Welsh Nexus Limited, incorporated in Scotland. The registered office of the ultimate parent is 3 Riverside Way, Irvine, Ayrshire, United Kingdom.

25
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
510,246
11,157
Adjustments for:
Taxation charged
58,795
1,077
Finance costs
321,837
183,166
Loss on disposal of tangible fixed assets
12,336
-
Amortisation and impairment of intangible assets
15,802
6,420
Depreciation and impairment of tangible fixed assets
113,346
104,601
Other gains and losses
(14,812)
-
Movements in working capital:
Decrease in debtors
1,158,046
527,914
Increase/(decrease) in creditors
175,239
(326,990)
Cash generated from operations
2,350,835
507,345
BOOTH WELSH AUTOMATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 25 -
26
Analysis of changes in net debt
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
794,370
(616,305)
178,065
Borrowings excluding overdrafts
(4,179,891)
1,201,055
(2,978,836)
Obligations under finance leases
(37,432)
6,473
(30,959)
(3,422,953)
591,223
(2,831,730)
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