The directors present the strategic report for the year ended 31 December 2024.
Our global customers span a broad range of industry sectors including Industrial, Infrastructure, Energy, Healthcare, Medtech, Transportation, Process Control, Consumer and Mechatronics. We enable our customers to develop high-quality products which deliver rich, exciting experiences to their end-users via our designs and through our provision of innovative systems encompassing leading edge embedded technologies and user interfaces. We make these possible by drawing on our deep and extensive knowledge in the field. Our customers, who are our partners benefit extensively as we share our deep expertise to help extract outstanding outcomes in their product development.
Our European facility in the Netherlands, which was set up to bypass the negative impacts of Brexit has continued to serve us well during 2024. As a fully operational BV company, generating its own revenue stream and contributing to the overall profitability of the group, it continues to be an asset to service our European customers.
Our team has continued to embrace the hybrid work environment and we do not expect to return to a full-time on-site work arrangement in the near term. Our engineering team utilises a combination of our on-site laboratory for hardware R&D as well as home office working for software R&D.
During 2024 we continued to leverage the strength of our supplier partnerships to ensure that deliveries to our customers were fulfilled and new designs and projects were supported. Supply lead times have generally improved, although product development by our customers have not ramped up to pre-pandemic levels. The escalation of geopolitical conflicts continue to make it challenging for businesses overall and the uncertainty of the outcome from the US elections in the second half of 2024 resulted in a significant downturn in manufacturing orders.
Revenues for the year were $18,677,058 (2023: $19,598,868) resulting in a pre-tax profit of $98,739 (2023: $307,535). As at year end, net assets amounted to $3,808,126 (2023: $3,717,010).
Margins continued to be under pressure across all the major industry sectors even as supply chains continued to ramp up output. Our strong partnerships with our suppliers have helped to stabilise and minimise the impact on our customers although high inflation during 2024 impacted demand. Our strategic focus on product enablement and our ongoing investment in the business for R&D have continued to serve us well and allowed us to maintain the high level of service to our customers. Over the next three years, we expect to realise the returns from our R&D investments.
We would like to acknowledge the significant contributions of our people and we thank them for their passion and hard work, without whom our ongoing achievements would not have been possible.
We will continue to seek new opportunities to acquire or partner with companies and institutions who can bring us into complementary and new markets.
As a matter of course, we identify and actively manage the risks and uncertainties facing the business both internally and externally, on a regular basis and have taken steps to mitigate these through good business practices. These include management awareness, prevention, diversification and insurances as appropriate.
Current geopolitical actions and political unrest remain the biggest risk to the business given the uncertainty of actions being taken by governments driven by populism and nationalism. These actions include trade barriers which drive customer decision making away from best practice to favour political self-interest. During 2024, the lead up to the US elections have had a disproportionate negative impact on our customers’ business decisions.
Our continuing investment in our product portfolio, logistics and infrastructure and the increasing depth and breadth of our customer and supplier base mitigate our overall exposure in the respective segments of the business.
The directors continue to consider the effect of geo-politics and the ongoing fallout of Brexit, on the company's activities. We have managed to adapt our working practices with no impact on our ability to service our customers. Our customers continue to create new projects with us and at the date of approval of these financial statements, we expect to continue to re-build our growth for the coming years.
The directors produce and measure financial performance against management accounts. In addition, certain key performance indicators are used to manage the business.
These include but are not limited to the following:
- Turnover: $18,677,058 (2023: $19,598,868)
- Gross profit: $4,432,454 (2023: $4,535,314)
Section 414CZA(1) of the Companies Act 2006 requires the directors to explain how they considered the matters set out in section 172(1) (a) to (f) of the Companies Act 2006 ('S172 (1)') when performing their duty to promote the success of the company. When making decisions, each director ensures that they act in the way that would most likely promote the company's success for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to the following matters:
(a) The likely consequences of any decision in the long term
The directors understand the business and the evolving environment in which the group operates, including the challenges of operating in an uncertain business environment.
(b) The interests of the group's employees
The directors recognise that the success of the business depends on attracting, retaining and motivating highly engaged and competent team members. The directors take into account the benefits of being a responsible employer, provision of a healthy and safe workplace environment, and the role of the business in support of the community, environment and social justice.
In addition to ensuring a competitive compensation and benefits package for employees, the group is committed to the personal development of our employees and has funded both training and educational courses to improve the skills and competencies of our people.
(c) The need to foster the group's business relationships with suppliers, customers and others
The directors seek to promote strong mutually beneficial relationships with all our stakeholders including suppliers, customers, regulators and authorities. Such general principles are critical in the delivery of the group's strategy.
Our supply chain strategy relies on key relationships with a focused number of suppliers. Over the years, the group has undergone a supplier rationalisation program in order to be better able to partner with our high-quality suppliers.
We manage our customers with internal and external facing teams to ensure that our customers are serviced by dedicated teams with the necessary breadth and depth of expertise.
(d) The impact of the group's operations on the community and the environment
The group is committed to understanding the interests of our external stakeholder groups. The directors receive information on these topics on a periodic basis to provide relevant information for specific decisions.
The group receives information and interacts with the local business community association and the Oxford business groups. We are a signatory to the UK anti-slavery act and are committed to the framework of the Code of Conduct V6.0 2018 (Code) issued by the Responsible Business Alliance RBA (formerly the Electronic Industry Citizenship Coalition EICC) with respect to our Corporate Social and Environmental Policy.
Fundamental to adopting this Code is the understanding that a business, in all of its activities, must operate in full compliance with the laws, rules and regulations of the countries in which it operates.
We expect our group to go beyond legal compliance, drawing upon internationally recognised standards, in order to advance social
and environmental responsibility and business ethics. In alignment with the UN Guiding Principles on Business and Human Rights,
the provisions in this Code are derived from key international human rights standards including the ILO Declaration on Fundamental Principles and Rights at Work and the UN Universal Declaration of Human Rights.
(e) The desirability of the group maintaining a reputation for high standards of business conduct
The directors recognise the importance of acting in ways which promote high standards of business conduct. The board periodically reviews and approves clear operating frameworks including the Code of Conduct V6.0 2018 (Code) issued by the Responsible Business Alliance RBA (formerly the Electronic Industry Citizenship Coalition EICC) to ensure that its high standards are maintained both within the businesses and the business relationships the group has with stakeholders.
(f) The need to act fairly between members of the group
The directors aim to act fairly between the group's members when delivering the group's strategy. All strategic decisions take into account the interests of all the stakeholders of the group and serve to improve both the long term strength of the group in terms of its financials as well as the well being and health of our people.
By order of the board
The directors present their annual report and financial statements for the year ended 31 December 2024.
The results for the year are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.
The group is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The group has the option to use interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates if deemed necessary.
The group’s principal foreign currency exposures arise from trading with overseas companies. Group policy permits but does not demand that these exposures may be hedged in order to fix the cost. This hedging activity would involve the use of foreign exchange forward contracts.
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
The group actively engages in research and development (R&D) at the cutting edge of our technologies. The results of our R&D activities benefit our customers and allow us to deliver high quality products and services.
We remain fully committed to investing in R&D for the coming years.
We have audited the financial statements of Anders Electronics Plc (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
As part of our planning process:
We enquired of management the systems and controls the group and company have in place, the areas of the financial statements that are most susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The group and company did not inform us of any known, suspected or alleged fraud.
We obtained an understanding of the legal and regulatory frameworks applicable to the group and company. We determined that the following were most relevant: FRS 102, Companies Act 2006.
We considered the incentives and opportunities that exist in the group and company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.
Using our knowledge of the group and company, together with the discussions held with the group and company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
Identifying and testing journal entries and the overall accounting records, in particular any that were significant and unusual.
Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
Testing key revenue lines, in particular for cut-off, accuracy and completeness, for evidence of management bias.
Performing either a physical verification or obtaining 3rd party confirmations of stock items (including testing of the stock system).
Obtaining third-party confirmation of bank and facility balances.
Documenting and verifying all significant related party and consolidated balances and transactions.
Completing a review of the company's board minutes.
Testing all material consolidation adjustments.
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. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.
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.
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 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.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was $19,280 (2023 - $250,461 profit).
Anders Electronics Plc (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Acre House, 11-15 William Road, London, NW1 3ER, United Kingdom. The business address is Plus X Innovation, 2 Brunel Way, Slough, Berkshire, SL1 1FQ.
The group consists of Anders Electronics Plc and all of its subsidiaries.
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.
On 1 January 2024, the group changed its presentational currency from Pound Sterling to US Dollar as this is the group's functional currency. In accordance with FRS 102, this change in presentational currency was applied retrospectively and accordingly, prior year comparatives have been restated.
Financial information included in the consolidated financial statements for the years ended 31 December 2024 and 2023 has been restated in US dollars as follows:
assets and liabilities in non-US dollar denominated currencies were translated into US dollars at the rate of exchange ruling at the relevant balance sheet date;
non-US dollar income statements and cash flows were translated into US dollars at average rates of exchange for the relevant period;
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
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 each category of financial instrument; basis of determining fair values; details of collateral;
The consolidated group financial statements consist of the financial statements of the parent company Anders Electronics Plc together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions and balances between group companies are eliminated on consolidation.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources, including the availability of bank funding to assist with the cash flow and working capital of the group as needed, to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
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.
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.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group 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).
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, 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. Financial assets classified as receivable within one year are not amortised.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors and bank loans, 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.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Transactions in currencies other than US dollars are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The directors do not feel there are any material key judgements or accounting estimates.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Details of the company's subsidiaries at 31 December 2024 are as follows:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The company has a debenture in place, relating to a loan facility, with a fixed and floating charge over the assets held in the company.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
During the year the company entered into the following transactions with related parties:
At the year end, the company owed an amount of $6,400 (2023: $6,400) to a director of the company.
During the year, a close family member of a director received gross remuneration of $6,996 (2023: $13,598).