Company Registration No. 01944904 (England and Wales)
ENCOCAM LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED
31 AUGUST 2024
Brightfield Business Hub
Bakewell Road
Orton Southgate
Peterborough
Cambridgeshire
PE2 6XU
ENCOCAM LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11 - 12
Statement of changes in equity
13
Notes to the financial statements
14 - 35
ENCOCAM LIMITED
COMPANY INFORMATION
Director
M M Ashmead
Secretary
L Waldron
Company number
01944904
Registered office
Imet Emery Crescent
Enterprise Campus
Alconbury Weald
Huntingdon
Cambridgeshire
PE28 4YE
Auditor
TC Group
Brightfield Business Hub
Bakewell Road
Orton Southgate
Peterborough
Cambridgeshire
PE2 6XU
ENCOCAM LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 AUGUST 2024
- 1 -
The director presents the strategic report for the period ended 31 August 2024.
Fair review of the business
The year saw consistent sales volumes, yet sales pricing lost some pace against the rate of inflation. The company saw a slight increase in turnover overall from the previous year however. Financial performance was hindered by heightened costs across the board, but particularly on raw materials and energy costs. Our profit margins as a result were negatively affected.
The Bank of England base rate continued to rise in the earlier part of the year, meeting its recent peak in August 2023. While it did reduce slightly by the end of August 2024, for most of this year, the rate was at the highest level seen for many years. As a result, the cost of borrowing, along with the impact of more volatile foreign exchange markets, negatively and significantly impacted financial performance.
The company achieved the launch of its new ERP system, which will drive robust processes for the future. Financial investment in this continued during the year ahead of the launch.
The automotive industry has seen a significant shift in the centre of gravity, moving towards Asia while China has taken centre stage in the manufacture of EV and hybrid models. We see this reflected in the growth we have experienced in the year within Chinese and other Asian markets. To meet the changing outlook, the company prepares to establish a stronger foothold within the Asian market during the years 2025-2026 and is encouraged by the relationships held with leading industry figures within that market.
The company retains its position as a leading brand in the automotive passive safety industry. We continue to invest in research and development and have invested an amount equivalent to 3.5% of sales in research and development in the year. We continue to be committed to meeting customers and industry needs. A new range of products to meet incoming consumer testing requirements will continue to expand our current product range.
Principal risks and uncertainties
The business' activities expose it primarily to the financial risks of changes in foreign currency exchange rates.
The business' principal financial instruments comprise bank balances, bank overdrafts, trade debtors, trade creditors, loans to business and finance lease agreements. The main purpose of these instruments is to finance the business' operations.
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. All of the business' cash balances are held in such a way that achieves a competitive rate of interest. The business makes use of money market facilities where funds are available.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.
Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet the amounts due. Loans comprise loans from financial institutions. The interest rates are variable, but the monthly repayments are fixed. The business manages the liquidity risk by ensuring that there are sufficient funds to meet the payments.
The business is a lessee in respect of finance leased assets. The liquidity in respect of these is managed by ensuring that there are sufficient funds to meet the payments due.
ENCOCAM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 2 -
Key performance indicators
The key performance indicators for the year were as follows:
Unit
2024
2023
16 Months
12 Months
Turnover
£
26,018,443
19,388,091
Turnover Growth
%
34
3
Gross Profit Margin
%
36
39
(Loss) / Profit before tax
£
(1,451,408)
(359,058)
M M Ashmead
Director
23 May 2025
ENCOCAM LIMITED
DIRECTOR'S REPORT
FOR THE PERIOD ENDED 31 AUGUST 2024
- 3 -
The director presents his annual report and financial statements for the period ended 31 August 2024.
Principal activities
The principal activity of the company continued to be that of manufacture of engineered structures and solutions. These activities remained principally focused on the automotive crash safety, the design & manufacture of bonded structures and motorcycle development.
Results and dividends
The results for the period are set out on page 9.
Ordinary dividends were paid amounting to £376,880. The director does not recommend payment of a final dividend.
Director
The director who held office during the period and up to the date of signature of the financial statements was as follows:
M M Ashmead
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
M M Ashmead
Director
23 May 2025
ENCOCAM LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 AUGUST 2024
- 4 -
The director is responsible for preparing the annual report 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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 them 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.
ENCOCAM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ENCOCAM LIMITED
- 5 -
Opinion
We have audited the financial statements of Encocam Limited (the 'company') for the period ended 31 August 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 company's affairs as at 31 August 2024 and of its loss for the period 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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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.
ENCOCAM LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ENCOCAM LIMITED
- 6 -
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 director's report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report 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 director's 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, 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 director's responsibilities statement, 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 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 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.
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.
ENCOCAM LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ENCOCAM LIMITED
- 7 -
Our approach was as follows:
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), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;
We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;
We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;
We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
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.
ENCOCAM LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ENCOCAM LIMITED
- 8 -
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.
John Grant (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
Office: Peterborough
28 May 2025
ENCOCAM LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 AUGUST 2024
- 9 -
Period
Year
ended
ended
31 August
30 April
2024
2023
Notes
£
£
Turnover
3
26,018,443
19,388,091
Cost of sales
(16,668,580)
(11,746,620)
Gross profit
9,349,863
7,641,471
Distribution costs
(1,246,890)
(1,192,068)
Administrative expenses
(8,949,565)
(6,599,873)
Other operating income
76,309
57,978
Operating loss
4
(770,283)
(92,492)
Interest receivable and similar income
7
263
Interest payable and similar expenses
8
(571,388)
(266,566)
Amounts written off investments
9
(110,000)
-
Loss before taxation
(1,451,408)
(359,058)
Tax on loss
10
338,164
22,690
Loss for the financial period
(1,113,244)
(336,368)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
ENCOCAM LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 AUGUST 2024
- 10 -
Period
Year
ended
ended
31 August
30 April
2024
2023
£
£
Loss for the period
(1,113,244)
(336,368)
Other comprehensive income
-
-
Total comprehensive income for the period
(1,113,244)
(336,368)
ENCOCAM LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2024
31 August 2024
- 11 -
31 August 2024
30 April 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
7,362,610
7,996,161
Investment property
13
2,965,000
3,075,000
Investments
14
22,783
10,783
10,350,393
11,081,944
Current assets
Stocks
16
5,519,579
8,145,872
Debtors
17
4,333,888
5,596,922
Cash at bank and in hand
1,096,698
24,954
10,950,165
13,767,748
Creditors: amounts falling due within one year
18
(7,006,749)
(4,963,400)
Net current assets
3,943,416
8,804,348
Total assets less current liabilities
14,293,809
19,886,292
Creditors: amounts falling due after more than one year
19
(296,225)
(4,246,519)
Provisions for liabilities
Provisions
22
63,961
Deferred tax liability
23
600,722
688,826
(600,722)
(752,787)
Net assets
13,396,862
14,886,986
Capital and reserves
Called up share capital
25
100
100
Profit and loss reserves
13,396,762
14,886,886
Total equity
13,396,862
14,886,986
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
ENCOCAM LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 AUGUST 2024
31 August 2024
- 12 -
The financial statements were approved and signed by the director and authorised for issue on 23 May 2025
M M Ashmead
Director
Company registration number 01944904 (England and Wales)
ENCOCAM LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 AUGUST 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2022
100
15,223,254
15,223,354
Year ended 30 April 2023:
Loss and total comprehensive income
-
(336,368)
(336,368)
Balance at 30 April 2023
100
14,886,886
14,886,986
Period ended 31 August 2024:
Loss and total comprehensive income
-
(1,113,244)
(1,113,244)
Dividends
11
-
(376,880)
(376,880)
Balance at 31 August 2024
100
13,396,762
13,396,862
ENCOCAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024
- 14 -
1
Accounting policies
Company information
Encocam Limited is a private company limited by shares incorporated in England and Wales. The registered office is iMet, Emery Crescent, Enterprise Campus, Alconbury Weald, Huntingdon, Cambridgeshire, England, PE28 4YE.
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.
These 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 £.
These financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
This 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. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Encocam Holdings Limited. These consolidated financial statements are available from its registered office, Imet Emery Crescent, Enterprise Campus, Alconbury Weald, Huntingdon, Cambridgeshire, England, PE28 4YE.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing these financial statements.
ENCOCAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 15 -
1.3
Reporting period
The reporting period has changed from 30 April to 31 August. The reporting period has changed due to internal system changes during the year. Amounts presented for the 2024 reporting period are for a 16-month period. Comparative figures are for a 12-month period. Consequently, comparative amounts are not comparable.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.5
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or revaluation, net of depreciation and any impairment losses. Depreciation on additions to tangible fixed assets is charged from the month in which tangible fixed assets is acquired or capitalized while no depreciation is charged for the month in which tangible fixed assets is disposed off / derecognized.
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
ENCOCAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 16 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
3% straight line
Leasehold land and buildings
Straight line over the term of the lease
Plant and equipment
10% to 50% straight line and 25% reducing balance
Fixtures and fittings
20% to 50% straight line
Motor vehicles
30% reducing balance
Other tangible assets
Nil
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the profit and loss account.
1.7
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting date. Changes in fair value are recognised in the profit and loss account.
1.8
Fixed asset investments
Investment in subsidiaries, joint ventures and associates are initially recognized at cost, except for those as classified through profit or loss. At subsequent reporting dates, recoverable amount is estimated to determine the extent of impairment loss, if any, and carrying amount of investment is adjusted accordingly. Impairment losses are recognized as expense in profit and loss account. Where impairment losses subsequently reverse, the carrying amount of the investment is increased to its revised recoverable amount but limited to the extent of initial cost of investment. Reversal of impairment loss is recognized in the profit and loss account.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term investment and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term investment and shares control under a contractual arrangement are classified as jointly controlled entities.
ENCOCAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 17 -
1.9
Impairment of fixed assets
At each reporting date, the company reviews the carrying amounts of its tangible 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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the profit and loss account, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in the profit and loss account, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.10
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, the Company reviews the carrying value of stock and provision is made for obsolescence, if there is any change in usage pattern or physical form of related stocks. Any excess of the carrying amount of stocks over its estimated selling price less costs to sell is recognised as a provision for slow moving or obsolete stock in profit and loss account and reversal of provisions are also recognised in profit and loss account.
1.11
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.
ENCOCAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 18 -
1.12
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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 the profit and loss account, 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 or loss, are assessed for indicators of impairment at each reporting 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 the profit and loss account.
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 the profit and loss account.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
ENCOCAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 19 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are ssubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in the profit and loss account in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.13
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.14
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
ENCOCAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 20 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting 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 date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.15
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in the profit and loss account in the period in which it arises.
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.
ENCOCAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 21 -
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 the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to the profit and loss account on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.19
Foreign exchange
Transactions in currencies other than sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting date. Gains and losses arising on translation in the period are included in the profit and loss account.
ENCOCAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 22 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
Stock
Included in stocks held at the year end is a provision for obsolete stock. This provision is based on judgements made by the directors using their opinion of the proportion of items that are no longer saleable at full price or that may be obsolete. The provision is based around the likelihood of the future sales of stock items that have remained unsold for significant time.
Investment Properties
Investment properties are required to be valued at fair value at the year end. This year 2 of the 9 investment properties had professional valuations. The remaining 7 investment properties were valued by the director by comparing to values of similar properties in the area and taking into account size, condition etc.
3
Turnover and other revenue
2024
2023
16 Months
12 Months
£
£
Turnover analysed by geographical market
UK
3,946,016
2,400,964
Europe
9,733,605
8,529,792
Rest of world
12,338,822
8,457,335
26,018,443
19,388,091
2024
2023
16 Months
12 Months
£
£
Other revenue
Interest income
263
-
Miscellaneous other operating income
76,309
57,978
ENCOCAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 23 -
4
Operating loss
2024
2023
16 Months
12 Months
Operating loss for the period is stated after charging/(crediting):
£
£
Exchange losses
120,754
22,435
Research and development costs
355,570
208,103
Fees payable to the company's auditor for the audit of the company's financial statements
35,000
30,000
Depreciation of owned tangible fixed assets
931,982
774,040
Loss/(profit) on disposal of tangible fixed assets
90,150
(913)
Operating lease charges
98,400
99,232
5
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2024
2023
Number
Number
Production
90
90
Administration and support
129
136
Total
219
226
Their aggregate remuneration comprised:
2024
2023
16 Months
12 Months
£
£
Wages and salaries
9,722,099
7,199,434
Social security costs
889,470
643,075
Pension costs
434,634
341,688
11,046,203
8,184,197
ENCOCAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 24 -
6
Director's remuneration
2024
2023
16 Months
12 Months
£
£
Remuneration for qualifying services
224,686
39,960
Company pension contributions to defined contribution schemes
60,000
40,000
284,686
79,960
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
16 Months
12 Months
£
£
Remuneration for qualifying services
224,686
N/A
Company pension contributions to defined contribution schemes
60,000
N/A
As total director's remuneration was less than £200,000 in the prior period, no disclosure is provided for that period.
7
Interest receivable and similar income
2024
2023
16 Months
12 Months
£
£
Interest income
Interest on bank deposits
263
8
Interest payable and similar expenses
2024
2023
16 Months
12 Months
£
£
Interest on bank overdrafts and loans
517,814
221,434
Interest on finance leases and hire purchase contracts
53,438
45,132
Other interest
136
571,388
266,566
ENCOCAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 25 -
9
Amounts written off investments
2024
2023
16 Months
12 Months
£
£
Changes in the fair value of investment properties
(110,000)
-
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(142,780)
(175,300)
Adjustments in respect of prior periods
(107,280)
4,013
Total current tax
(250,060)
(171,287)
Deferred tax
Origination and reversal of timing differences
(88,104)
148,597
Total tax credit
(338,164)
(22,690)
The actual credit for the period can be reconciled to the expected credit for the period based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Loss before taxation
(1,451,408)
(359,058)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(362,852)
(68,221)
Tax effect of expenses that are not deductible in determining taxable profit
21,508
13,496
Adjustments in respect of prior years
(107,280)
Permanent capital allowances in excess of depreciation
(131,581)
(25,951)
Depreciation on assets not qualifying for tax allowances
19,563
14,868
Research and development tax credit
(142,780)
(171,288)
Tax losses surrendered
365,258
214,406
Taxation credit for the period
(338,164)
(22,690)
ENCOCAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 26 -
11
Dividends
2024
2023
£
£
Interim paid
376,880
ENCOCAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 27 -
12
Tangible fixed assets
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Other tangible assets
Total
£
£
£
£
£
£
£
Cost
At 1 May 2023
4,690,371
1,773,850
5,472,255
938,230
409,144
255,642
13,539,492
Additions
210,948
30,017
189,815
430,780
Disposals
(93,150)
(12,365)
(85,000)
(190,515)
Transfers
32,525
8,040
(40,565)
At 31 August 2024
4,690,371
1,773,850
5,622,578
976,287
396,779
319,892
13,779,757
Depreciation and impairment
At 1 May 2023
450,043
389,120
3,785,638
710,431
208,099
5,543,331
Depreciation charged in the period
191,452
60,954
524,996
99,554
55,026
931,982
Eliminated in respect of disposals
(50,042)
(8,124)
(58,166)
At 31 August 2024
641,495
450,074
4,260,592
809,985
255,001
6,417,147
Carrying amount
At 31 August 2024
4,048,876
1,323,776
1,361,986
166,302
141,778
319,892
7,362,610
At 30 April 2023
4,240,328
1,384,730
1,686,617
227,799
201,045
255,642
7,996,161
ENCOCAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
12
Tangible fixed assets
(Continued)
- 28 -
Included within the gross book value of freehold land and buildings are £4,690,371 (2023 - £4,690,371) of depreciable assets. Included within the gross book value of leasehold property are £1,523,850 (2023 - £1,523,850) of depreciable assets. Included within the net book value of tangible fixed assets is £635,658 (2023 - £975,986) in respect of assets held under finance leases and similar hire purchase contracts. Depreciation for the year on these assets was £299,203(2023 - £304,064). These assets are held as security over the balances to which they relate.
13
Investment properties
2024
£
Fair value
At 1 May 2023
3,075,000
Net gains or losses through fair value adjustments
(110,000)
At 31 August 2024
2,965,000
On 16 September 2024, a professional valuation was carried out on 2 investment properties by Harwoods Chartered Surveyors, the combined valuation of these properties were £710,000.
The remaining 7 properties were valued by the director at £2,255,000 at 3 February 2025.
The director is of the opinion that the difference between the value of properties at the 31 August 2024 is immaterially different to the valuations carried out on the 16 September 2024 by the professional valuer and 3 February 2025 by the director.
The historical cost of the investment properties are £2,018,398 (2023 - £2,018,398).
14
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
15
22,783
10,783
ENCOCAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
14
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 May 2023
10,783
Additions
12,000
At 31 August 2024
22,783
Carrying amount
At 31 August 2024
22,783
At 30 April 2023
10,783
15
Subsidiaries
Details of the company's subsidiaries at 31 August 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Cellbond Incorporated
USA
Ordinary
100.00
Cellbond Kabushiki Kaisha
Japan
Ordinary
100.00
Cellbond B.V.
Holland
Ordinary
100.00
Cellbond GmbH
Germany
Ordinary
100.00
Cellbond Korea
South Korea
Ordinary
100.00
ENCOCAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
15
Subsidiaries
(Continued)
- 30 -
Subsidiary undertakings
Cellbond Incorporated
The principal activity of Cellbond Incorporated is sale of bonded structures.
Cellbond Kabushiki Kaisha
The principal activity of Cellbond Kabushiki Kaisha is sale of bonded structures.
Cellbond B.V.
The principal activity of Cellbond B.V. is dormant.
Cellbond GmbH
The principal activity of Cellbond GmbH is sale of bonded structures.
Cellbond Korea
The principal activity of Cellbond Korea is sale of bonded structures.
All the above subsidiaries, except dormant companies, are included in the consolidation of Encocam Holdings Limited.
16
Stocks
2024
2023
£
£
Raw materials and consumables
1,876,253
2,285,863
Work in progress
1,553,647
2,463,391
Finished goods and goods for resale
2,089,679
3,396,618
5,519,579
8,145,872
Impairment of stocks
The amount of impairment loss included in profit or loss is £2,453,021 (2023 - £2,459,161).
ENCOCAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 31 -
17
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,385,822
2,464,956
Corporation tax recoverable
172,233
99,498
Amounts owed by group undertakings
778,776
1,671,390
Other debtors
537,239
688,767
Prepayments and accrued income
459,818
672,311
4,333,888
5,596,922
18
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
20
5,037,519
1,523,416
Obligations under finance leases
21
216,340
285,797
Trade creditors
1,434,482
2,671,544
Amounts owed to group undertakings
8,263
Taxation and social security
154,140
168,004
Deferred income
1,940
3,167
Other creditors
50,878
51,698
Accruals
103,187
259,774
7,006,749
4,963,400
19
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
20
3,654,021
Obligations under finance leases
21
296,225
592,498
296,225
4,246,519
ENCOCAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 32 -
20
Loans and overdrafts
2024
2023
£
£
Bank loans
5,037,519
4,402,344
Bank overdrafts
775,093
5,037,519
5,177,437
Payable within one year
5,037,519
1,523,416
Payable after one year
3,654,021
As at the period ended 31 August 2024, there was a breach of loan covenants in relation to the ratio of EBITDA to Debt Service. The carrying value of loans in breach of this covenant as at 31 August 2024 is £5,037,519. As a result of this breach the entire loan has been recognised as due under 1 year. The covenant breach was remedied after the year end as the company received covenant waivers.
Security is held over both current and non-current loans and borrowings. The bank borrowings and overdrafts are secured by a debenture and a legal charge over all leasehold, freehold, investment property and all assets of the company. There is also a currency letter off set against other accounts held. The finance lease obligations are secured against the assets to which they relate. The value of the security in each case is equal to the total outstanding as shown above.
21
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
216,340
285,797
In two to five years
296,225
592,498
512,565
878,295
22
Provisions for liabilities
2024
2023
£
£
Provisions
-
63,961
ENCOCAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 33 -
23
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
336,571
424,675
Investment property
264,151
264,151
600,722
688,826
2024
Movements in the period:
£
Liability at 1 May 2023
688,826
Credit to profit or loss
(88,104)
Liability at 31 August 2024
600,722
24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
434,634
341,688
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
25
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
ENCOCAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 34 -
26
Reserves
The changes to each component of equity resulting from items of other comprehensive income for the prior year were as follows:
Share capital
Represents the nominal value of shares that have been issued.
Profit and loss account
Includes all current and prior period retained profits and losses, inclusive of cumulative unrealised gains and losses for assets shown at fair value at the balance sheet date.
27
Operating lease commitments
Lessee
As at reporting date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
20,565
59,785
Between two and five years
47,625
20,565
107,410
28
Events after the reporting date
On 11 October 2024 Encocam Limited made an interim dividend of £305,000 to Encocam Holdings Limited. This enabled Encocam Holdings Limited to enact a share buy-back of £300,000 for 4 B shares.
29
Directors' transactions
Dividends totalling £0 (2023 - £0) were paid in the period in respect of shares held by the company's directors.
During the year a director received advances totalling £126,153 (2023 - £215,411) and made repayments totalling £Nil (2023 - £Nil). The loan is interest free. The balance outstanding at the year end is £446,264 (2023 - £320,111)
ENCOCAM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 35 -
30
Controlling party
There was a group reconstruction that took place on the 18 October 2023. This resulted in Encocam Holdings Limited being the owner of the entire share capital in Encocam Limited however there was no change in the ultimate ownership of Encocam Limited.
Encocam Holdings Limited is the ultimate holding company. The ultimate controlling party is M M Ashmead by virtue of their majority shareholding.
Consolidated accounts are prepared by Encocam Holdings Limited and are available from companies house.
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