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Registration number: 01227271

aep Compressed Air Technologies Limited

Filleted Financial Statements

for the Year Ended 31 August 2024

 

aep Compressed Air Technologies Limited

Contents

Company Information

1

Directors' Report

2

Balance Sheet

3

Notes to the Financial Statements

4 to 13

 

aep Compressed Air Technologies Limited

Company Information

Directors

Mr MT Middleton

Mr BE West

Mr R J Horton

Mr J J Hill

Registered office

Devonshire Road
Heathpark Industrial Estate
Honiton
Devon
EX14 1SG

Auditors

MMO Limited
Chartered Accountants and Statutory Auditors
Wellesley House
204 London Road
Waterlooville
Hampshire
PO7 7AN

 

aep Compressed Air Technologies Limited

Directors' Report for the Year Ended 31 August 2024

The directors present their report and the financial statements for the year ended 31 August 2024.

Directors of the company

The directors who held office during the year were as follows:

Mr MT Middleton

Mr BE West

Mr R J Horton

Mr R J R Oddy (ceased 4 September 2024)

Mr J J Hill

Principal activity

The principal activity of the company is that of the sale and repair of pneumatic equipment

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Small companies provision statement

This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the Board on 2 May 2025 and signed on its behalf by:
 

.........................................
Mr MT Middleton
Director

 

aep Compressed Air Technologies Limited

(Registration number: 01227271)
Balance Sheet as at 31 August 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

4

630,941

611,095

Tangible assets

5

485,426

502,995

Investments

6

-

1,000

 

1,116,367

1,115,090

Current assets

 

Stocks

7

813,312

894,397

Debtors

8

1,116,120

1,466,256

Cash at bank and in hand

 

71,607

(122)

 

2,001,039

2,360,531

Creditors: Amounts falling due within one year

9

(1,362,426)

(1,634,568)

Net current assets

 

638,613

725,963

Total assets less current liabilities

 

1,754,980

1,841,053

Creditors: Amounts falling due after more than one year

9

(139,265)

(158,874)

Provisions for liabilities

(16,659)

(13,585)

Net assets

 

1,599,056

1,668,594

Capital and reserves

 

Called up share capital

10

1,000

1,000

Revaluation reserve

230,661

230,661

Retained earnings

1,367,395

1,436,933

Shareholders' funds

 

1,599,056

1,668,594

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 2 May 2025 and signed on its behalf by:
 

.........................................
Mr MT Middleton
Director

 

aep Compressed Air Technologies Limited

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

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
Devonshire Road
Heathpark Industrial Estate
Honiton
Devon
EX14 1SG
England

These financial statements were authorised for issue by the Board on 2 May 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

All figures are presented in British Sterling, which is the functional currency of the company, and are rounded to the nearest £1.

Audit report

The Independent Auditor's Report was unqualified. . The name of the Senior Statutory Auditor who signed the audit report on 6 May 2025 was Gillian McIntosh, who signed for and on behalf of MMO Limited.

.........................................

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

 

aep Compressed Air Technologies Limited

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

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

The depreciation policies have been amended in the current year to better reflect what the directors consider to be the economic useful life of the assets.

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

20% Straight line

Fixtures and fittings

10% Straight line

Freehold property

2% Straight line

Motor vehicles

25% Reducing balance

Computer equipment

20% Straight line

 

aep Compressed Air Technologies Limited

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

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill (acquired)

10 years straight line

Website

20% straight line

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the impairment loss is recognised immediately in profit or loss.

 

aep Compressed Air Technologies Limited

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

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

 

aep Compressed Air Technologies Limited

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

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

The company operates a defined contribution pension scheme. Contributions to the scheme are charged to the profit or loss in the year to which they relate.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 31 (2023 - 32).

 

aep Compressed Air Technologies Limited

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

4

Intangible assets

Goodwill
 £

Other intangible assets
 £

Total
£

Cost or valuation

At 1 September 2023

717,126

11,499

728,625

Additions acquired separately

40,287

-

40,287

At 31 August 2024

757,413

11,499

768,912

Amortisation

At 1 September 2023

108,848

8,682

117,530

Amortisation charge

18,142

2,299

20,441

At 31 August 2024

126,990

10,981

137,971

Carrying amount

At 31 August 2024

630,423

518

630,941

At 31 August 2023

608,278

2,817

611,095

 

aep Compressed Air Technologies Limited

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

5

Tangible assets

Land and buildings
£

Fixtures and fittings
£

Plant and machinery
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 September 2023

500,714

213,137

146,505

46,549

906,905

Additions

-

10,910

15,371

-

26,281

At 31 August 2024

500,714

224,047

161,876

46,549

933,186

Depreciation

At 1 September 2023

91,769

157,272

136,436

18,433

403,910

Charge for the year

10,014

16,760

7,704

9,372

43,850

At 31 August 2024

101,783

174,032

144,140

27,805

447,760

Carrying amount

At 31 August 2024

398,931

50,015

17,736

18,744

485,426

At 31 August 2023

408,945

55,865

10,069

28,116

502,995

Included within the net book value of land and buildings above is £398,931 (2023 - £408,945) in respect of freehold land and buildings.
 

 

aep Compressed Air Technologies Limited

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

6

Investments

2024
£

2023
£

Investments in subsidiaries

-

1,000

Subsidiaries

£

Cost or valuation

At 1 September 2023

1,000

Disposals

(1,000)

At 31 August 2024

-

Provision

Carrying amount

At 31 August 2024

-

At 31 August 2023

1,000

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

2024

2023

Subsidiary undertakings

Compressed Air Plant Services UK Limited

England

Ordinary shares

100%

100%

Subsidiary undertakings

Compressed Air Plant Services UK Limited

The principal activity of Compressed Air Plant Services UK Limited is sale & maintenance of compressed air plant equipment.

 

aep Compressed Air Technologies Limited

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

7

Stocks

2024
£

2023
£

Finished goods and goods for resale

813,312

894,397

8

Debtors

Current

Note

2024
£

2023
£

Trade debtors

 

1,019,047

1,320,483

Amounts owed by related parties

14,710

72,589

Prepayments

 

77,195

71,763

Other debtors

 

5,168

1,421

   

1,116,120

1,466,256

9

Creditors

Creditors: amounts falling due within one year

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

27,569

237,582

Trade creditors

 

532,484

381,116

Amounts owed to group undertakings and undertakings in which the company has a participating interest

400,521

226,726

Taxation and social security

 

159,655

241,519

Accruals and deferred income

 

235,054

538,500

Other creditors

 

7,143

9,125

 

1,362,426

1,634,568

Creditors: amounts falling due after more than one year

Note

2024
£

2023
£

Due after one year

 

Loans and borrowings

139,265

158,874

 

aep Compressed Air Technologies Limited

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

Bank borrowings

The bank loan is denominated in British Pound Sterling with a nominal interest rate of 6.5%, and the final instalment is due on 14 February 2033. The carrying amount at year end is £158,156 (2023 - £169,087).

The bank holds a fixed and floating charge over all the property in the company, to allow for a cross guarantee and debenture between AEP Compressed Air Technologies Limited and The West Group Limited AEP Compressed Air Technologies Limited, Southbourne Rubber Company Limited and The West Group (Fluid Power) Limited.

10

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

1,000

1,000

1,000

1,000

       

11

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

119,238

124,519

Later than one year and not later than five years

92,509

139,853

Later than five years

-

10,484

211,747

274,856

The amount of non-cancellable operating lease payments recognised as an expense during the year was £123,777 (2023 - £Nil).

12

Parent and ultimate parent undertaking

The company's immediate parent is The West Group (Fluid Power) Limited, incorporated in England & Wales.

  These financial statements are available upon request from 29 Aston Road, Waterlooville, Portsmouth, PO7 7XJ

 The ultimate controlling party is Mr O West.