Company registration number 13153527 (England and Wales)
ADVANCED MANUFACTURING HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
ADVANCED MANUFACTURING HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Dr G Morgan
N Lane
M Hands
Company number
13153527
Registered office
Unit B
Poplars Business Park
Poplar Way
Rotherham
South Yorkshire
S60 5TR
Auditor
Hart Shaw LLP
Europa Link
Sheffield Business Park
Sheffield
S9 1XU
ADVANCED MANUFACTURING HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 29
ADVANCED MANUFACTURING HOLDINGS 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
The financial year to 2024 saw a nominal increase in revenue over 2023. A number of orders that were won in the previous period were manufactured which saw a busy year in the technical area of the group as they were brought to market.
We undertook to develop many of the processes in the group to ensure that we had robust systems across many facets of the group. This encompassed all functions within the group with new reporting structures being implemented and a focus on delivery of the group objectives.
There was no capacity added in the year as it was deemed to be sensible to ensure we have good efficiency on the existing assets. There was extra factory space taken on to allow better storage and a working area for parts preparation, as the increased number of machines had led to the onsite storage area being reduced within the factory below the optimum size.
There were a number of personnel changes which has led to changes within various functions and which have led to new working practices.
The main markets that are core to the group are buoyant and offer considerable opportunities going forward. We have endeavoured to build a handful of strategic partnerships both within the UK and abroad.
Political and Economic Events
Whilst news and conditions across the world have generally deteriorated during the year, they have had no direct detrimental effect on our sphere of operation.
Our supply chains have improved over the year but on a historic view still remain tighter than the norm. Employment availability improved by a similar margin although it has been easier in previous years.
Energy pricing continues to prove a difficult issue to predict due to world events. In recent months some hedging has taken place along with buying on a spot basis. In turn the price level of energy has caused demand for our products to increase as power generation goes through their changes.
Sterling has strengthened marginally during the year and this has led to taking a hedging approach.
Following the change of Government in the UK, which was necessary for a reset, the early indications are that whilst economic growth is a key pillar of their strategy, not all measures and policies seem to be pro-business who are the main contributors to such growth. This however is seen elsewhere in the larger economies of the EU.
ADVANCED MANUFACTURING HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Principal risks and uncertainties
Stability in the world continues to elude the desires of national governments but generally organisations and individuals push forward to improve their positions within the national framework. This gives some hope that the future will not be too bleak.
In the UK we are reaching the point where the high level economic statistics have to improve by implementing a reset of policies, as without an improvement, the UK is on the decline as regards relevance on the world stage. The UK is not alone as other EU countries are in similar predicaments and remain a huge distance behind the US over the last decade for productivity growth. The Board are confident however that within our markets overall demand in the coming years will be strong and increasing.
Interest rates are predicted to soften over the next 12 months which is welcome news although a good portion of our borrowings are of a fixed nature. With pressure on the main costs of operating a machining business and not being able to pass these on as and when they occur means we do continue to monitor our cash resources each month to ensure good practice, and selecting efficient suppliers.
Cost of living pressures still abound for many citizens and hence increases are given to our staff to ensure retention and that we carry out regular benchmarking on pay rates.
Although the number of possible suppliers of any raw material that we require have reduced over the last few years, generally we can source what is needed.
The Directors continue to review global events and market risks as they all have the potential to affect our business outlook. We await with hope that the UK starts to grow at a faster rate in the next 12 months. We believe our core markets are more robust than many businesses across the UK are currently facing but it appears that world events seem more unpredictable than ever.
Global and market risks are reviewed frequently by the Directors to ensure the business can withstand any uncertainties in the prevailing market and economic conditions. Working capital and cash flow is closely monitored and forecasted to ensure that we have adequate cash resources for sustainable trading. The continual strengthening of balance sheet and order book provide a solid foundation in which we continue to focus on balancing margin improvement, customer needs and operational agility.
Key performance indicators
New Business Planning techniques have been developed working in conjunction with Sharing in Growth organisation and how these disseminate from top level objectives through departments and eventually to individuals. This goes forward to 3 years hence and then into more details as the short term is considered.
KPI’s are the outputs from this exercise and are reviewed on a regular basis and at various levels within the group. These are a means to establishing what is performing to target and those that are falling short.
N Lane
Director
5 December 2024
ADVANCED MANUFACTURING HOLDINGS 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 company was incorporated on 25 January 2021 to purchase the share capital of Advanced Manufacturing Sheffield Limited.
The principal activity of the group continued to be the manufacture of a range of components from mainly hard metals for different industries. The main sectors serviced are Aerospace and Energy. The company manufactures parts that might be utilised in new product development, prototypes through to delivering parts to the build line at our customers.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £282,352. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Dr G Morgan
N Lane
M Hands
Future developments
2024 witnessed a small uplift in revenue alongside a continued effort to broaden the product range and consolidate the considerable growth that had been achieved in 2023. In the coming financial year we are planning on a double digit growth, a continued focus on internal efficiencies and developments with our main customers.
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 auditor of the company 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 auditor of the company 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
N Lane
Director
5 December 2024
ADVANCED MANUFACTURING HOLDINGS 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
ADVANCED MANUFACTURING HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ADVANCED MANUFACTURING HOLDINGS LIMITED
- 5 -
Opinion
We have audited the financial statements of Advanced Manufacturing Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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:
give a true and fair view of the state of the group's and the parent company's affairs as at 30 June 2024 and of the group's 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.
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 group and parent 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 group's and 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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
ADVANCED MANUFACTURING HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ADVANCED MANUFACTURING HOLDINGS LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent 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.
Extent to which the audit was considered capable of detecting irregularities, including fraud and the audit response
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:
At the planning stage we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors and other management, as required by auditing standards. The potential effect of any laws and regulation on the financial statements can vary considerably. There are laws and regulations that directly affect the financial statements (e.g. the Companies Act) as well as many other operational laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements. Owing to the size, nature and complexity of the organisation and the applicable laws and regulations to which it must adhere, the risk of material misstatement was deemed to be low, therefore the procedures performed by the audit team were limited to:
Communicating identified laws and regulations at planning throughout the audit team to remain alert to any indications of non-compliance throughout the audit.
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as non-compliance with laws and regulations.
Reviewing minutes of meetings of those charged with governance.
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
ADVANCED MANUFACTURING HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ADVANCED MANUFACTURING HOLDINGS LIMITED
- 7 -
We have assessed the overall susceptibility of the financial statements to material misstatement due to fraud. Management override is the most likely way in which fraud might present itself and as such is inherently high risk on any audit. Management override, which may cause there to be a material misstatement within the financial statements, may present itself in a number of ways, for example:
Override of internal controls (e.g. segregation of duties)
Entering into transactions outside the normal course of business, especially with related parties
Fraudulent revenue recognition, including fictitious sales and sales being recorded in the wrong period.
Presenting bias in accounting judgements and estimates, particularly ones that are key to the business.
In order to reduce the risk of material misstatement to an acceptable level, numerous audit procedures were performed including:
Enquiry of management, those charged with governance around actual and potential litigation and claims.
Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.
Reviewing minutes of meetings of those charged with governance.
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, and evaluating the business rationale of significant transactions outside the normal course of business.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected material misstatements in the financial statements, even though we have performed our audit in accordance with auditing standards. Furthermore, as with all audits, there is a higher risk of irregularities (especially those relating to fraud) being undetected, as these may involve the override of internal controls, collusion, intentional omissions and misrepresentations etc. We are not responsible for preventing non-compliance or fraud and therefore cannot be expected to detect all instances of such. Our audit was not designed to identify misstatements or other irregularities that would not be considered to be material to the financial statements. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
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.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Martin McDonagh (Senior Statutory Auditor)
For and on behalf of Hart Shaw LLP
10 December 2024
Chartered Accountants
Statutory Auditor
Europa Link
Sheffield Business Park
Sheffield
S9 1XU
ADVANCED MANUFACTURING HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
9,198,307
8,980,584
Cost of sales
(6,353,077)
(6,849,454)
Gross profit
2,845,230
2,131,130
Administrative expenses
(2,702,337)
(1,767,395)
Other operating income
482,856
575,204
Operating profit
4
625,749
938,939
Interest receivable and similar income
7
3,000
3,897
Interest payable and similar expenses
8
(261,492)
(248,858)
Profit before taxation
367,257
693,978
Tax on profit
9
(35,858)
226,716
Profit for the financial year
331,399
920,694
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
Included within the above is a profit of £259,413 (2023 - £49,215) generated by the parent company.
ADVANCED MANUFACTURING HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
611,651
703,399
Other intangible assets
11
85,512
122,910
Total intangible assets
697,163
826,309
Tangible assets
12
4,070,099
4,747,824
4,767,262
5,574,133
Current assets
Stocks
15
120,337
297,616
Debtors
16
4,374,441
3,990,009
Cash at bank and in hand
115,462
369,791
4,610,240
4,657,416
Creditors: amounts falling due within one year
17
(1,807,074)
(3,545,623)
Net current assets
2,803,166
1,111,793
Total assets less current liabilities
7,570,428
6,685,926
Creditors: amounts falling due after more than one year
18
(5,327,518)
(4,503,663)
Provisions for liabilities
Deferred tax liability
21
622,800
611,200
(622,800)
(611,200)
Net assets
1,620,110
1,571,063
Capital and reserves
Called up share capital
24
100,000
100,000
Profit and loss reserves
1,520,110
1,471,063
Total equity
1,620,110
1,571,063
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 5 December 2024 and are signed on its behalf by:
05 December 2024
N Lane
Director
Company registration number 13153527 (England and Wales)
ADVANCED MANUFACTURING HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
1,935,484
1,935,484
Current assets
Debtors
16
898,938
169,687
Cash at bank and in hand
12
898,950
169,687
Creditors: amounts falling due within one year
17
(59,671)
(477,467)
Net current assets/(liabilities)
839,279
(307,780)
Total assets less current liabilities
2,774,763
1,627,704
Creditors: amounts falling due after more than one year
18
(2,669,998)
(1,500,000)
Net assets
104,765
127,704
Capital and reserves
Called up share capital
24
100,000
100,000
Profit and loss reserves
4,765
27,704
Total equity
104,765
127,704
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £259,413 (2023 - £49,215 profit).
These financial statements are in respect of the Parent Company only and do not constitute statutory financial statements due to the requirement to produce consolidated financial statements for the Group.
The financial statements were approved by the board of directors and authorised for issue on 5 December 2024 and are signed on its behalf by:
05 December 2024
N Lane
Director
Company registration number 13153527 (England and Wales)
ADVANCED MANUFACTURING HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
100,000
650,369
750,369
Year ended 30 June 2023:
Profit and total comprehensive income
-
920,694
920,694
Dividends
10
-
(100,000)
(100,000)
Balance at 30 June 2023
100,000
1,471,063
1,571,063
Year ended 30 June 2024:
Profit and total comprehensive income
-
331,399
331,399
Dividends
10
-
(282,352)
(282,352)
Balance at 30 June 2024
100,000
1,520,110
1,620,110
ADVANCED MANUFACTURING HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
100,000
78,489
178,489
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
49,215
49,215
Dividends
10
-
(100,000)
(100,000)
Balance at 30 June 2023
100,000
27,704
127,704
Year ended 30 June 2024:
Profit and total comprehensive income
-
259,413
259,413
Dividends
10
-
(282,352)
(282,352)
Balance at 30 June 2024
100,000
4,765
104,765
ADVANCED MANUFACTURING HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
28
(754,560)
753,634
Interest paid
(261,492)
(248,858)
Income taxes refunded
188,214
335,556
Net cash (outflow)/inflow from operating activities
(827,838)
840,332
Investing activities
Purchase of intangible assets
-
(42,173)
Purchase of tangible fixed assets
(483,514)
(1,109,823)
Repayment of loans
109,082
-
Interest received
3,000
3,897
Net cash used in investing activities
(371,432)
(1,148,099)
Financing activities
Repayment of borrowings
1,088,127
22,352
Repayment of bank loans
-
(189,356)
Payment of finance leases obligations
139,166
(712,165)
Dividends paid to equity shareholders
(282,352)
(100,000)
Net cash generated from/(used in) financing activities
944,941
(979,169)
Net decrease in cash and cash equivalents
(254,329)
(1,286,936)
Cash and cash equivalents at beginning of year
369,791
1,656,727
Cash and cash equivalents at end of year
115,462
369,791
ADVANCED MANUFACTURING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
1
Accounting policies
Company information
Advanced Manufacturing Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit B, Poplars Business Park, Poplar Way, Rotherham, South Yorkshire, S60 5TR.
The group consists of Advanced Manufacturing Holdings Limited and all of its subsidiaries.
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.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Advanced Manufacturing Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 30 June 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
ADVANCED MANUFACTURING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.
1.5
Turnover
Revenue from contracts for the provision of machining 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.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.7
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
10-33% straight line
1.8
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:
CNC machines
5, 10 & 15 years straight line
Leasehold improvements
over the remainder of the term of the lease
Plant and equipment
10-33% straight line
Motor vehicles
4-5 years
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 recognised in the profit and loss account.
ADVANCED MANUFACTURING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
1.9
Fixed asset investments
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.10
Impairment of fixed assets
At each reporting period end date, the group 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.
1.11
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.12
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.
1.13
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
ADVANCED MANUFACTURING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
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 group 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 group 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 group's contractual obligations expire or are discharged or cancelled.
ADVANCED MANUFACTURING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -
1.14
Equity instruments
Equity instruments issued by the group 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 group.
1.15
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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 if, and only if, there is 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.
1.16
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.
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.18
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.
ADVANCED MANUFACTURING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 19 -
1.19
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Recognition of revenue as service contracts
The company has two distinct types of contracts for rendering of services which were in progress at the year end. These contracts fall into two categories;
Despite the differences in the above contracts it has been considered reasonable to treat these the same in line with the principal activity of the Company being to provide a bespoke machining service. As such, all contracts regardless of who purchases the raw material are treated as service contracts and therefore revenue is recognised in line with the stage of completion of the contract.
In making this judgement, management has considered the detailed criteria set out for the recognition of revenue in FRS 102 Section 23.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Accrued income in relating to service contracts
Revenue from service contracts is recognised by reference to the stage of completion which is estimated based on costs incurred to date and the estimated cost to complete. Given the level of estimation involved in the costs to complete, actual outcomes could vary from these estimates. Furthermore, had the directors chosen a different judgement for assessing the stage of completion then these outcomes could vary.
The company had a number of service contracts which were in progress at the year end. At the 30 June 2024 the company has in its balance sheet amounts recoverable on service contracts of £2629549 (2023 - £1954897).
ADVANCED MANUFACTURING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
9,198,307
8,980,584
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
5,555,427
6,235,283
Europe
486,903
1,524,544
Rest of world
3,155,977
1,220,757
9,198,307
8,980,584
2024
2023
£
£
Other revenue
Interest income
3,000
3,897
Grants received
482,856
575,204
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(7,770)
11,139
Government grants
(482,856)
(575,204)
Depreciation of owned tangible fixed assets
1,161,239
942,383
Amortisation of intangible assets
129,146
132,825
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
15,475
19,500
ADVANCED MANUFACTURING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
90
82
3
3
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,101,818
2,751,721
Social security costs
277,856
249,987
-
-
Pension costs
141,143
116,065
3,520,817
3,117,773
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest receivable from group companies
1,897
Other interest income
3,000
2,000
Total income
3,000
3,897
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
111,307
42,317
Interest on invoice finance arrangements
2,092
Interest on finance leases and hire purchase contracts
150,185
204,449
Total finance costs
261,492
248,858
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
13,948
(266,903)
Adjustments in respect of prior periods
10,310
(335,556)
Total current tax
24,258
(602,459)
ADVANCED MANUFACTURING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
9
Taxation
2024
2023
£
£
(Continued)
- 22 -
Deferred tax
Origination and reversal of timing differences
11,600
375,743
Total tax charge/(credit)
35,858
(226,716)
The actual charge/(credit) 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
367,257
693,978
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
91,814
131,856
Tax effect of expenses that are not deductible in determining taxable profit
24,352
19,376
Unutilised tax losses carried forward
147
28,649
Effect of change in corporation tax rate
-
193,011
Permanent capital allowances in excess of depreciation
(59,315)
Research and development tax credit
(70,145)
(204,737)
Under/(over) provided in prior years
(10,310)
(335,556)
Taxation charge/(credit)
35,858
(226,716)
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
282,352
100,000
11
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 1 July 2023 and 30 June 2024
917,477
370,301
1,287,778
Amortisation and impairment
At 1 July 2023
214,078
247,391
461,469
Amortisation charged for the year
91,748
37,398
129,146
At 30 June 2024
305,826
284,789
590,615
ADVANCED MANUFACTURING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
11
Intangible fixed assets
(Continued)
- 23 -
Carrying amount
At 30 June 2024
611,651
85,512
697,163
At 30 June 2023
703,399
122,910
826,309
The company had no intangible fixed assets at 30 June 2024 or 30 June 2023.
12
Tangible fixed assets
Group
CNC machines
Leasehold improvements
Assets under construction
Plant and equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 July 2023
6,718,538
476,631
2,120,392
45,900
9,361,461
Additions
55,579
40,424
68,420
319,091
483,514
At 30 June 2024
6,774,117
517,055
68,420
2,439,483
45,900
9,844,975
Depreciation and impairment
At 1 July 2023
2,892,470
308,460
1,395,224
17,483
4,613,637
Depreciation charged in the year
752,285
62,303
340,451
6,200
1,161,239
At 30 June 2024
3,644,755
370,763
1,735,675
23,683
5,774,876
Carrying amount
At 30 June 2024
3,129,362
146,292
68,420
703,808
22,217
4,070,099
At 30 June 2023
3,826,068
168,171
725,168
28,417
4,747,824
The company had no tangible fixed assets at 30 June 2024 or 30 June 2023.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
261,672
87,739
Motor vehicles
28,417
CNC machines
2,149,548
2,329,977
-
-
2,411,220
2,446,133
-
-
ADVANCED MANUFACTURING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
12
Tangible fixed assets
(Continued)
- 24 -
The combined total of CNC Machines held at a cost of £1,669,700 and CNC Machines held at a valuation of £942,500 (including a revaluation uplift of £432,500) at 31 December 2012 became those held at a deemed cost of £2,612,200 on transition to FRS 102. Since then further additions of £4,161,917 have been made giving a total cost of £6,774,117.
If, the CNC machines had been included under the historical cost convention they would be presented as follows:
2024
2023
£
£
Group
Cost
6,341,617
6,286,038
Accumulated depreciation
(3,572,723)
(2,845,692)
Carrying value
2,768,894
3,440,346
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
1,935,484
1,935,484
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2023 and 30 June 2024
1,935,484
Carrying amount
At 30 June 2024
1,935,484
At 30 June 2023
1,935,484
14
Subsidiaries
Details of the company's subsidiaries at 30 June 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Advanced Manufacturing (Sheffield) Limited
Unit B Poplars Business Park, Poplar Way, Catcliffe, S60 5TR
Ordinary
100.00
ADVANCED MANUFACTURING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 25 -
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials
120,337
297,616
-
-
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,233,116
1,125,918
Gross amounts owed by contract customers
2,629,549
1,954,897
Corporation tax recoverable
54,736
279,390
12,893
12,487
Amounts owed by group undertakings
-
-
836,045
-
Other debtors
107,505
303,349
50,000
157,000
Prepayments and accrued income
349,535
326,455
200
4,374,441
3,990,009
898,938
169,687
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
20
658,811
497,874
Other borrowings
19
176,461
197,847
Trade creditors
575,550
1,068,551
Amounts owed to group undertakings
447,966
Corporation tax payable
305
12,487
305
12,487
Other taxation and social security
173,942
74,396
-
-
Deferred income
22
1,415,289
Other creditors
96,153
49,352
42,352
Accruals and deferred income
125,852
229,827
17,014
17,014
1,807,074
3,545,623
59,671
477,467
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
20
817,974
839,745
Other borrowings
19
3,144,662
2,035,149
2,669,998
1,500,000
Grants received
1,364,882
1,628,769
5,327,518
4,503,663
2,669,998
1,500,000
ADVANCED MANUFACTURING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
18
Creditors: amounts falling due after more than one year
(Continued)
- 26 -
The amounts included above as 'Grants received' are capital grants being released in line with the useful life of the assets to which they relate.
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Other loans
3,321,123
2,232,996
2,669,998
1,500,000
Payable within one year
176,461
197,847
Payable after one year
3,144,662
2,035,149
2,669,998
1,500,000
Included in other loans is £2,669,998 which is due to family members of one of the directors. Interest is payable at 5.25% on the first £1,500.000 and 8% on the remaining £1,169,998. The interest rate on the loan has increased to track Bank of England official interest rates following the year end. The loan is unsecured and is repayable upon demand.
20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
658,811
497,874
In two to five years
817,974
839,745
1,476,785
1,337,619
-
-
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Fixed asset timing differences
838,400
1,016,800
Tax losses
(148,200)
(353,900)
Revaluations
6,700
13,600
Short term timing differences
(3,200)
(10,500)
Unused R&D credit
(70,900)
(54,800)
622,800
611,200
ADVANCED MANUFACTURING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
21
Deferred taxation
(Continued)
- 27 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 July 2023
611,200
-
Charge to profit or loss
11,600
-
Liability at 30 June 2024
622,800
-
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
22
Deferred income
Group
Company
2024
2023
2024
2023
£
£
£
£
Other deferred income
-
1,415,289
-
-
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
141,143
116,065
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
85,000
85,000
85,000
85,000
B Ordinary shares of £1 each
15,000
15,000
15,000
15,000
100,000
100,000
100,000
100,000
Class A and B shares rank pari passu.
Both classes carry one vote per share each and are both entitled to a dividend by ordinary resolution against the share class of that type.
ADVANCED MANUFACTURING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 28 -
25
Operating lease commitments
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
343,365
484,882
-
-
Between two and five years
849,862
979,642
-
-
In over five years
-
15,986
-
-
1,193,227
1,480,510
-
-
26
Related party transactions
Disclosure exemptions have been taken under Section 33.1A for companies which are wholly owned subsidiaries of Advanced Manufacturing Holdings Limited.
27
Directors' transactions
Dividends totalling £261,176 (2023 - £92,500) were paid in the year in respect of shares held by the company's directors.
Two directors received interest bearing loans from the company during the year.
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Interest bearing loan
2.50
78,500
65,000
1,500
(120,000)
25,000
Interest bearing loan
2.50
78,500
65,000
1,500
(120,000)
25,000
157,000
130,000
3,000
(240,000)
50,000
ADVANCED MANUFACTURING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 29 -
28
Cash (absorbed by)/generated from operations - group
2024
2023
£
£
Profit for the year after tax
331,399
920,694
Adjustments for:
Taxation charged/(credited)
35,858
(226,716)
Finance costs
261,492
248,858
Investment income
(3,000)
(3,897)
Amortisation and impairment of intangible assets
129,146
132,825
Depreciation and impairment of tangible fixed assets
1,161,239
942,383
Movements in working capital:
Decrease/(increase) in stocks
177,279
(218,561)
Increase in debtors
(718,168)
(2,042,014)
(Decrease)/increase in creditors
(714,516)
1,000,062
Decrease in deferred income
(1,415,289)
-
Cash (absorbed by)/generated from operations
(754,560)
753,634
29
Analysis of changes in net debt - group
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
369,791
(254,329)
115,462
Borrowings excluding overdrafts
(2,232,996)
(1,088,127)
(3,321,123)
Obligations under finance leases
(1,337,619)
(139,166)
(1,476,785)
(3,200,824)
(1,481,622)
(4,682,446)
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