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REGISTERED NUMBER: 00961458 (England and Wales)










Strategic Report, Report of the Director and

Financial Statements

for the Year Ended 31 December 2024

for

Aalberts Surface Technologies Limited

Aalberts Surface Technologies Limited (Registered number: 00961458)






Contents of the Financial Statements
for the Year Ended 31 December 2024




Page

Strategic Report 1

Report of the Director 3

Report of the Independent Auditors 5

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13


Aalberts Surface Technologies Limited (Registered number: 00961458)

Strategic Report
for the Year Ended 31 December 2024

Review of business
The company is a wholly owned subsidiary of Aalberts N.V., a Netherlands based manufacturing group.

Responsibility for day-to-day management of the business rests with the site senior management team locally with support provided by Group personnel as required.

The former Aalberts Surface Treatment Tamworth Limited is now fully integrated into the business at Kirkby in Ashfield and the combined entities operate as one unit from the Nottinghamshire site.

KPI's 2024 (£'000) 2023 (£'000) 2022 (£'000)
Revenue: 7.34 7.12 6.17
EBITA: 1.69 1.59 1.34

Description of general economic conditions and their effect on the entity
The business has again delivered an excellent improvement in revenue and pre-tax profit.
The results are largely attributable to a continued recovery in the aerospace market along with the ever-growing demand in the defence sector as a result of the general world order.

The business has again invested significantly in the development in new, and improvements to, existing technology in respect of vacuum coatings (IVD) in order to support the growth forecasts for both the aerospace and defence sectors over the coming 5-10 years. This has facilitated an improvement in RFT and opened up additional capacity.

Capital investments will continue in this area through 2025 to ensure that the business is well positioned to support the anticipated increases in demand and to replace and upgrade existing assets.

Internal and external factors and their potential impact on the organisation
The difficulty in operating outside the UK has again proved challenging as even more rigorous border controls are implemented. This is administratively challenging, however the business has implemented the requisite training of personnel and implemented the appropriate systems and authorisations to enable it to support its customer base in this regard.

The aerospace supply chain continues to be in ‘catch-up’ mode and the provision of raw materials remains challenging. However, the business has sought to ensure dual source for raw materials wherever possible in order to reduce lead times and avoid disruption to the supply chain..

Focus on the investment in REACH compliant alternatives to SVHC's has continued such that prime approvals are now in place to allow for the provision of 'safe' alternative coatings. As a result, some ‘non-REACH’ compliant processes will be removed from the portfolio during 2025.

HS & Environmental sustainability is a key target for the company and the Aalberts Group as a whole and implementation of 'safe' alternatives is an important factor in helping to deliver full compliance and a safer environment for our people and other stakeholders.


Aalberts Surface Technologies Limited (Registered number: 00961458)

Strategic Report
for the Year Ended 31 December 2024

The business maintains a large number of aerospace and defence third party accreditations along with AS9100 and NADCAP certification. There is no doubt that this has become even more challenging (costly) in recent years but, as this is required to operate in the markets that we do, we maintain a strong commitment to compliance. However, the management have taken the strategic decision to be more selective in the maintenance of these approvals to ensure the highest standards and necessary focus can be applied to those which are most important to the continued success and development of the organisation.

Outlook
Short term forecasts are encouraging and the management are optimistic of a strong performance in 2025. Medium to long term, driving improvement by implementation of lean, cost efficient and environmentally compliant processes along with the continued development of alternatives in chemical and energy utilisation will help to ensure sustainability for the organisation going forward.

Technological developments and capacity improvements as a result of strategic capital investments programmes should open up opportunities with existing customers and in new markets / projects, particularly given the current state of world affairs.

Principal risks and uncertainties
The management of the business and the development of the company's strategy are subject to a number of risks. The key business risks affecting the company are set out below.

Uncertainty in global financial and industrial markets.
Although the company is heavily focused on the support of the UK and European manufacturers, the trends and movements in global manufacturing will impact opportunities for growth. A high proportion of the aerospace products manufactured in these regions are for worldwide markets, hence any negative political or financial movements could impact on demand and reduce growth forecasts.

Employees
The company's performance depends to a significant degree on the senior management team and the experienced workforce. The resignation of key individuals and the inability to recruit people with appropriate skills could adversely affect the company's results. The company will focus on establishing a robust succession plan to address these concerns.

Disaster recovery
The company's main IT system are managed and controlled by an Aalberts group company located in Germany. Data is backed-up on servers at that location and also on to local servers, thereby providing the ability to recover data in the event of a failure in the group IT systems.

ON BEHALF OF THE BOARD:





P T Brown - Director


16 April 2025

Aalberts Surface Technologies Limited (Registered number: 00961458)

Report of the Director
for the Year Ended 31 December 2024

The director presents his report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY
The principal activity of the company is the provision of specialist surface engineering and metal finishing services.

The company operates in high level critical industries with very exacting quality management system and appropriate/applicable accreditation requirements.

The business maintains a very high number of approvals in the aerospace and defence sector and continues to successfully develop systems / procedures / skills etc. required to support this challenging environment.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2024.

DIRECTOR
P T Brown held office during the whole of the period from 1 January 2024 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Aalberts Surface Technologies Limited (Registered number: 00961458)

Report of the Director
for the Year Ended 31 December 2024


AUDITORS
The auditors, Bourne & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





P T Brown - Director


16 April 2025

Report of the Independent Auditors to the Members of
Aalberts Surface Technologies Limited

Opinion
We have audited the financial statements of Aalberts Surface Technologies Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Report of the Independent Auditors to the Members of
Aalberts Surface Technologies Limited


Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of director's remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of director
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Aalberts Surface Technologies Limited


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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations was as follows:

- the senior statutory auditor ensured that the engagement team collectively had the appropriate
competence, capabilities and skills to identify or recognise non-compliance with applicable laws and
regulations;
- we identified the laws and regulations applicable to the company through discussions with directors
and other management, and from our commercial knowledge and experience of the sector;
- we focused on specific laws and regulations which we considered may have a direct material effect
on the financial statements or the operations of the company, including the financial reporting
legislation, Companies Act 2006, taxation legislation, anti-bribery, employment, and environmental
and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through
making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team
remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud my occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud,
their knowledge of suspected and alleged fraud; and
- considering the internal controls in place to mitigate the risks of fraud and non-compliance with
laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions
- assessed whether judgements and assumptions made in determining the accounting estimates
were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.

Report of the Independent Auditors to the Members of
Aalberts Surface Technologies Limited


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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




David Meadows FCA (Senior Statutory Auditor)
for and on behalf of Bourne & Co
Statutory Auditors
6 Lichfield Street
Burton-on-Trent
Staffordshire
DE14 3RD

16 April 2025

Aalberts Surface Technologies Limited (Registered number: 00961458)

Income Statement
for the Year Ended 31 December 2024

31.12.24 31.12.23
Notes £    £    £   

TURNOVER 3 7,335,878 7,116,901

Cost of sales 4,195,701 4,004,386
GROSS PROFIT 3,140,177 3,112,515

Administrative expenses 1,477,696 1,511,755
OPERATING PROFIT 5 1,662,481 1,600,760

Income from shares in group
undertakings

-

7,443,195
Interest receivable and similar income 133,065 623,191
133,065 8,066,386
1,795,546 9,667,146
Amounts written off investments 6 - 11,548,310
1,795,546 (1,881,164 )

Interest payable and similar expenses 7 11,024 -
PROFIT/(LOSS) BEFORE TAXATION 1,784,522 (1,881,164 )

Tax on profit/(loss) 8 538,079 743,448
PROFIT/(LOSS) FOR THE FINANCIAL
YEAR

1,246,443

(2,624,612

)

Aalberts Surface Technologies Limited (Registered number: 00961458)

Other Comprehensive Income
for the Year Ended 31 December 2024

31.12.24 31.12.23
Notes £    £   

PROFIT/(LOSS) FOR THE YEAR 1,246,443 (2,624,612 )


OTHER COMPREHENSIVE INCOME
Revaluation of land and buildings - 667,119
Income tax relating to other
comprehensive income

-

(103,045

)
OTHER COMPREHENSIVE INCOME FOR
THE YEAR, NET OF INCOME TAX

-

564,074
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

1,246,443

(2,060,538

)

Aalberts Surface Technologies Limited (Registered number: 00961458)

Balance Sheet
31 December 2024

31.12.24 31.12.23
Notes £    £    £   
FIXED ASSETS
Tangible assets 9 5,397,118 5,488,994
Investments 10 4,032,001 4,032,001
9,429,119 9,520,995

CURRENT ASSETS
Stocks 11 264,905 221,834
Debtors 12 2,431,384 12,831,425
Cash in hand 750 765
2,697,039 13,054,024
CREDITORS
Amounts falling due within one year 13 849,304 12,624,244
NET CURRENT ASSETS 1,847,735 429,780
TOTAL ASSETS LESS CURRENT
LIABILITIES

11,276,854

9,950,775

PROVISIONS FOR LIABILITIES 15 499,685 420,049
NET ASSETS 10,777,169 9,530,726

CAPITAL AND RESERVES
Called up share capital 16 514,000 514,000
Share premium 17 26,000 26,000
Revaluation reserve 17 2,211,501 2,211,501
Retained earnings 17 8,025,668 6,779,225
SHAREHOLDERS' FUNDS 10,777,169 9,530,726

The financial statements were approved by the director and authorised for issue on 16 April 2025 and were signed by:





P T Brown - Director


Aalberts Surface Technologies Limited (Registered number: 00961458)

Statement of Changes in Equity
for the Year Ended 31 December 2024

Called up
share Retained Share Revaluation Total
capital earnings premium reserve equity
£    £    £    £    £   
Balance at 1 January 2023 514,000 9,403,837 26,000 1,647,427 11,591,264

Changes in equity
Total comprehensive income - (2,624,612 ) - 564,074 (2,060,538 )
Balance at 31 December 2023 514,000 6,779,225 26,000 2,211,501 9,530,726

Changes in equity
Total comprehensive income - 1,246,443 - - 1,246,443
Balance at 31 December 2024 514,000 8,025,668 26,000 2,211,501 10,777,169

Aalberts Surface Technologies Limited (Registered number: 00961458)

Notes to the Financial Statements
for the Year Ended 31 December 2024

1. STATUTORY INFORMATION

Aalberts Surface Technologies Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address are as below:

Registered number: 00961458

Registered office: Field Industrial Estate
Clover Street
Kirkby-In-Ashfield
Nottinghamshire
NG17 7LJ

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Aalberts Surface Technologies Limited meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its separate financial statements. Aalberts Surface Technologies Limited is consolidated in the financial statements of its ultimate parent company, Aalberts N.V., which may be obtained at www.aalberts.com. Exemptions have been taken in these separate financial statements in respect of the cashflow statement.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b)
and 11.48(c);
the requirement of paragraph 33.7.

Aalberts Surface Technologies Limited (Registered number: 00961458)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2024

2. ACCOUNTING POLICIES - continued

Significant judgements and estimates
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions regarding the carrying amounts of the company's assets and liabilities. These are based on historical experience and other factors that are considered relevant. They are reviewed on a regular basis and changes recognised in the period in which the estimate is revised. Actual results mar differ from these estimates.

The following are the critical accounting judgements and key sources of estimation uncertainty:

Tangible fixed assets are depreciated over their useful economic lives taking into account their residual values where appropriate. The acute lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing the asset lives, factors such as technical innovation, product life cycles and maintainable programmes are taken into account. Residual values consider such things as future market condition, the remaining life of the asset and projected disposal values.

The value of stock is assessed for impairment. In assessing stock value, factors such as slow movement and obsolescence are taken into account.

The company holds an investment in a wholly owned subsidiary. Management reviews the carrying amount of the investment annually to determine whether there is any indication of impairment. Where indicators exist, the recoverable amount of the investment is assessed by reference to the subsidiary’s net asset position, profitability, and expected future cash flows. The valuation includes consideration of non-financial indicators such as market position, business forecasts, and strategic plans.

Due to the inherent uncertainty in forecasting future performance, significant judgement is involved in determining the appropriate assumptions used, including discount rates, growth rates, and the estimated future profitability of the subsidiary. If actual results differ from those estimated, future results may be materially impacted.

The company owns a freehold property that is held for operational use and stated at fair value in accordance with FRS 102 Section 17. The fair value of the property is based on periodic valuations carried out by qualified external valuers or through management’s own estimation, considering recent market transactions for similar properties, condition of the property, location, and current use.

Valuations are inherently subjective and dependent on various market factors and assumptions, including yield rates and market demand. Accordingly, there is a risk that the carrying amount of the property may not reflect its actual market value, particularly in times of market volatility.

Changes in the valuation are recognised in other comprehensive income and accumulated in the revaluation reserve unless the revaluation results in a decrease below historical cost, in which case it is recognised in the profit and loss account.

Aalberts Surface Technologies Limited (Registered number: 00961458)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2024

2. ACCOUNTING POLICIES - continued

Turnover
Turnover represents net invoiced sale of goods and services excluding value added tax and is recognised at the fair value of the consideration received for sale of goods and services to external customers in the ordinary course of business. Turnover is recognised when the goods have been delivered to the customer's place of business. The fair value of consideration takes into account returns, discounts and rebates.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - not provided and at varying rates on cost
Fixtures and fittings - at varying rates on cost

Tangible fixed assets are initially recognised at cost, including transaction costs. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Land and buildings are subsequently subject to fair value measurement, based on an open market basis and deferred tax is provided on the fair value movements.
Gains and losses arising from changes in the fair value of land and buildings are included within the Statement of Income and Retained Earnings in the period in which they arise.

Investments in subsidiaries
Investments in subsidiary undertakings are initially recognised at cost, including transaction costs. Annually the company conducts an impairment review and any impairments are shown in the profit or loss account.

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Aalberts Surface Technologies Limited (Registered number: 00961458)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2024

2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Financial assets and liabilities
Short term debtors are measured at transaction price.

Short term creditors are measured at transaction price, less any impairment.

3. TURNOVER

The turnover and profit (2023 - loss) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

31.12.24 31.12.23
£    £   
United Kingdom 3,889,252 3,769,325
Europe 1,267,293 2,991,971
Rest of World 2,179,333 355,605
7,335,878 7,116,901

Aalberts Surface Technologies Limited (Registered number: 00961458)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2024

4. EMPLOYEES AND DIRECTORS
31.12.24 31.12.23
£    £   
Wages and salaries 2,017,539 2,054,229
Social security costs 191,989 184,093
Other pension costs 160,172 162,488
2,369,700 2,400,810

The average number of employees during the year was as follows:
31.12.24 31.12.23

Production 48 54
Administration and support 15 15
63 69

31.12.24 31.12.23
£    £   
Director's remuneration 136,513 130,000
Director's pension contributions to money purchase schemes 58,654 12,984

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.12.24 31.12.23
£    £   
Hire of plant and machinery 24,428 26,405
Depreciation - owned assets 341,217 250,353
Loss on disposal of fixed assets 155 4,935
Auditors' remuneration 21,309 17,000
Foreign exchange differences (10,547 ) (4,519 )

6. AMOUNTS WRITTEN OFF INVESTMENTS
31.12.24 31.12.23
£    £   
Amounts w/o invs - 11,548,310

Aalberts Surface Technologies Limited (Registered number: 00961458)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2024

7. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.24 31.12.23
£    £   
Other interest paid 11,024 -

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.12.24 31.12.23
£    £   
Current tax:
UK corporation tax 467,042 430,546
Under/over provision of tax 50,324 252,819
Total current tax 517,366 683,365

Deferred tax 20,713 60,083
Tax on profit/(loss) 538,079 743,448

UK corporation tax has been charged at 25% (2023 - 23.50%).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.24 31.12.23
£    £   
Profit/(loss) before tax 1,784,522 (1,881,164 )
Profit/(loss) multiplied by the standard rate of corporation tax in
the UK of 25% (2023 - 23.500%)

446,131

(442,074

)

Effects of:
Expenses not deductible for tax purposes 20,914 2,722,698
Income not taxable for tax purposes - (1,749,151 )
Capital allowances in excess of depreciation (20,928 ) (92,900 )
Adjustments to tax charge in respect of previous periods 91,962 304,722

Super-deduction claim - 153

Total tax charge 538,079 743,448

Aalberts Surface Technologies Limited (Registered number: 00961458)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2024

8. TAXATION - continued

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 31 December 2024.

31.12.23
Gross Tax Net
£    £    £   
Revaluation of land and buildings 667,119 (103,045 ) 564,074

Deferred taxes at the balance sheet date have been measured using these enacted tax rates and reflected in these financial statements.

There is no expiry date on timing differences, unused tax losses or tax credits.

9. TANGIBLE FIXED ASSETS
Fixtures
Freehold Plant and and
property machinery fittings Totals
£    £    £    £   
COST OR VALUATION
At 1 January 2024 3,340,001 3,361,402 15,512 6,716,915
Additions 5,403 242,220 1,890 249,513
Disposals (71 ) (390 ) - (461 )
At 31 December 2024 3,345,333 3,603,232 17,402 6,965,967
DEPRECIATION
At 1 January 2024 - 1,224,866 3,055 1,227,921
Charge for year 67,989 269,983 3,245 341,217
Eliminated on disposal (49 ) (240 ) - (289 )
At 31 December 2024 67,940 1,494,609 6,300 1,568,849
NET BOOK VALUE
At 31 December 2024 3,277,393 2,108,623 11,102 5,397,118
At 31 December 2023 3,340,001 2,136,536 12,457 5,488,994

Aalberts Surface Technologies Limited (Registered number: 00961458)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2024

9. TANGIBLE FIXED ASSETS - continued

Cost or valuation at 31 December 2024 is represented by:

Fixtures
Freehold Plant and and
property machinery fittings Totals
£    £    £    £   
Valuation in 2019 1,505,816 - - 1,505,816
Valuation in 2023 412,182 - - 412,182
Cost 1,427,335 3,603,232 17,402 5,047,969
3,345,333 3,603,232 17,402 6,965,967

If freehold land and buildings had not been revalued they would have been included at the following historical cost:

31.12.24 31.12.23
£    £   
Cost 1,427,335 1,422,003

Freehold land and buildings were valued on an open market basis on 11 October 2023 by WA Barnes LLP .

10. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 January 2024
and 31 December 2024 4,032,001
NET BOOK VALUE
At 31 December 2024 4,032,001
At 31 December 2023 4,032,001

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Aalberts Surface Technologies OCT Limited
Registered office: Unit 8 Lagrange, Tamworth, Staffordshire, B79 7XD
Nature of business: Manufacturing of plastic products
%
Class of shares: holding
Ordinary shares 100.00

Aalberts Surface Technologies Limited (Registered number: 00961458)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2024

11. STOCKS
31.12.24 31.12.23
£    £   
Raw materials 218,658 203,288
Work-in-progress 46,247 18,546
264,905 221,834

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.24 31.12.23
£    £   
Trade debtors 1,005,834 781,517
Amounts owed by group undertakings 1,388,099 12,022,501
Other debtors - 2,650
Prepayments and accrued income 37,451 24,757
2,431,384 12,831,425

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.24 31.12.23
£    £   
Trade creditors 330,255 384,568
Amounts owed to group undertakings - 11,549,000
Tax 62,556 378,842
Social security and other taxes 50,192 43,573
VAT 179,569 26,626
Other creditors 12,682 15,865
Accruals and deferred income 214,050 225,770
849,304 12,624,244

14. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.12.24 31.12.23
£    £   
Within one year 28,198 41,345
Between one and five years 26,084 39,063
54,282 80,408

15. PROVISIONS FOR LIABILITIES
31.12.24 31.12.23
£    £   
Deferred tax 499,685 420,049

Aalberts Surface Technologies Limited (Registered number: 00961458)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2024

15. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 January 2024 420,049
Charge to Income Statement during year 79,636
Charged on revaluation
Balance at 31 December 2024 499,685

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.24 31.12.23
value: £    £   
514,000 Ordinary 1 514,000 514,000

17. RESERVES
Retained Share Revaluation
earnings premium reserve Totals
£    £    £    £   

At 1 January 2024 6,779,225 26,000 2,211,501 9,016,726
Profit for the year 1,246,443 1,246,443
At 31 December 2024 8,025,668 26,000 2,211,501 10,263,169

18. ULTIMATE PARENT COMPANY

The company's immediate parent company is Aalberts UK Ltd (company number 03596780), incorporated in England.

The ultimate parent company is Aalberts N.V. (registration number 30089954), incorporated in the Netherlands.

19. OTHER FINANCIAL COMMITMENTS

The company is a member of a cash pooling arrangement, maintained by Aalberts Finance B.V, with other selected Aalberts Group Companies. This arrangement requires that each company party to the agreement provides a limited guarantee covering any default on the repayment or overdraft facilities by any other member of the group. The director considers the likelihood of this being called upon as remote.