Company registration number 00586505 (England and Wales)
MOOG READING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 2 OCTOBER 2021
MOOG READING LIMITED
COMPANY INFORMATION
Directors
M. Layne
M. Smith
Secretary
N. Martin
Company number
00586505
Registered office
30 Suttons Park Avenue
Suttons Business Park
Reading
Berkshire
RG6 1AW
Auditor
Edwin Smith
32 Queens Road
Reading
Berkshire
RG1 4AU
Bankers
HSBC Bank Plc
PO BOX 120
49 Corn Street
Bristol
BS99 7PP
Solicitors
Willans LLP
28 Imperial Square
Cheltenham
Gloucestershire
GL50 1RH
MOOG READING LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Notes to the financial statements
12 - 31
MOOG READING LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 2 OCTOBER 2021
- 1 -
The directors present the strategic report for the period ended 2 October 2021.
true
Fair review of the business
The principal activities of the company are precision engineering and the manufacture of electro-mechanical devices, principally slip rings for home and export markets together with the purchase of goods from other group companies for sale in the UK and Europe.
The company prepares its financial statements to the closest Saturday to 30 September each year, which in the current period is
2 October 2021
(20
20
–
3 Octo
ber).
Principal risks and uncertainties
Competition
The company manages risk of competition through continual product improvement and development of new products, the
company provides products that are competitive in the market.
Suppliers
The company carefully selects suppliers who can consistently supply a high quality service or product.
Key performance indicators
The Company's key financial and other performance indicators during the year were as follows:
Period
Period
ended
ended
+ / -
Change
2 October
3 October
2021
2020
£
£
Turnover
20,906,820
22,198,153
-
5.82%
Operating profit
1,143,683
(915,370)
-
224.94%
Profit / (Loss) for the financial period
239,397
(1,284,389)
-
118.64%
Other information and explanations
Turnover was broadly flat against prior year, with the continuation of existing contracts and new business which has been won.
The FY20 results were adversely impacted by revenue reversal for a contract for which the company cannot renew its export licence, and also for cost overruns by inter-company suppliers for a development project.
FY22 turnover is expected to remain similar to that of FY21.
M. Smith
Director
21 June 2022
MOOG READING LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 2 OCTOBER 2021
- 2 -
The directors present their annual report and financial statements for the period ended 2 October 2021.
Principal activities
The principal activities of the company are precision engineering and the manufacture of electro-mechanical devices, principally slip rings for home and export markets together with the purchase of goods from other group companies for sale in the UK and Europe.
The company prepares its financial statements to the closest Saturday to 30 September each year, which in the current period is 2 October 2021 (2020 – 3 October).
Results and dividends
The results for the period are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
D. Norman
(Resigned
29 June 2021)
29 June 2021
J. Byrne-Safier
(Resigned 10 March 2022)
M. Layne
M. Smith
Qualifying third party indemnity provisions
The company has made qualifying third party indemnity provisions for the benefit of its directors which were made during the period and remain in force at the reporting date.
Supplier payment policy
The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).
The company's current policy concerning the payment of trade creditors is to:
-
settle the terms of payment with suppliers when agreeing the terms of each transaction;
-
ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
-
pay in accordance with the company's contractual and other legal obligations.
Trade creditors of the company at the year end were equivalent to 31 day's purchases, based on the average daily amount invoiced by suppliers during the year.
Financial instruments
Treasury operations and financial instruments
The company operates a treasury function which is responsible for managing the liquidity, interest and foreign currency
risks associated with the company’s activities.
The company’s principal financial instruments include bank overdrafts, loans and corporate bonds, the main purpose of
which is to raise finance for the company’s operations. In addition, the company has various other financial assets and
liabilities such as trade debtors and trade creditors arising directly from its operations.
Liquidity risk
The company mitigates liquidity risk by managing cash flow generation throughout its operation and by applying cash
collection procedures. Cash flow risk is managed by careful negotiation of terms with customers and suppliers.
MOOG READING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 2 OCTOBER 2021
- 3 -
Foreign currency risk
The company has transactional currency exposures which arise from sales and purchases in currencies other than its
functional currency as well as the currency risk associated with inter-company transactions in various currencies. Potential
exposures to foreign currency exchange rate movements are monitored through rolling cash flow forecasts in all currencies
in which the company trades. These are reviewed monthly and appropriate actions are taken to manage net open foreign
currency positions.
Credit risk
The company endeavours to minimise the risk of financial loss caused by third parties failing to discharge an obligation by
only granting credit terms to customers who demonstrate an appropriate payment history and satisfy credit worthiness
procedures and limiting the value of credit extended.
Research and development
The company undertakes Research and Development activities which are designed to improve the performance of existing
products, develop new market opportunities and to extend technical knowledge on chosen product lines.
Post reporting date events
The company’s business activities, together with the factors likely to affect its future development, its financial position,
financial risk management objectives, and its exposures to price, credit liquidity and cash flow risk are described in the
preceding part of the Strategic Report.
The company has considerable financial resources together with a strong forward order book with a number of customers
and suppliers across different geographic areas and industries. As a consequence, the directors believe that the company is
well placed to manage its business risk successfully despite the current uncertain economic outlook.
After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in
operational existence for the foreseeable future. The COVID pandemic has had negligible impact on the business; the order
book has not been affected to any great extent and the plant continues to operate at near-capacity. Accordingly, they
continue to adopt the going concern basis in preparing the annual report and financial statements.
Future developments
The company aims to retain and develop all existing and new customers by focussing on customer service and market
leading high technology products. The directors believe that these strategies will enable the business and sales performance
to continue to prosper through 202
1
and beyond.
Auditor
In accordance with the company's articles, a resolution proposing that Edwin Smith be reappointed as auditor of the company will be put at a General Meeting.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of
the principal risks and uncertainties of the company
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.
MOOG READING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 2 OCTOBER 2021
- 4 -
On behalf of the board
M. Smith
Director
21 June 2022
MOOG READING LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 2 OCTOBER 2021
- 5 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are 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. They are 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.
MOOG READING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF MOOG READING LIMITED
- 6 -
Opinion
We have audited the financial statements of Moog Reading Limited
(the 'company')
for the period ended 2 October 2021 which comprise the statement of comprehensive income, the statement of financial position, 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 101 Reduced Disclosure Framework (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 2 October 2021 and of its profit 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 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
true
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors'
eport for the financial period 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.
MOOG READING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF MOOG READING LIMITED
- 7 -
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 identifie
d
material misstatements in the strategic report or the directors'
r
eport
. 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
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of
financial statements
that are free from material misstatement, whether due to fraud or error. In preparing the
financial statements
, the
directors are
responsible for assessing the company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have
no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs (UK)
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements
.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit in respect of 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 to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.
Our approach was as follows:
We obtained an understanding of the legal and regulatory requirements applicable to the
company
and considered that the
most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council
,
UK taxation legislation
and a number of industry specific accreditations which the company must comply with
.
We obtained an understanding of how the
company
complies with these requirements by making enquiries with
management and those charged with governance.
We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur by considering the key risks impacting the financial statements and documenting the controls that the company has established to address risks identified, or that otherwise seek to prevent, deter or detect fraud. In our assessment we considered the risk of management override. Our audit procedures included testing manual journals, including segregation of duties.
We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations. We also confirmed with management that all memberships are accreditations with regulators are valid and up to date
.
MOOG READING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF MOOG READING LIMITED
- 8 -
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
A further description of our responsibilities is available on the
Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities.
This description forms part of our
auditor's
report.
This report is made solely to the company’s member 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 member, those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Philip Nixon (Senior Statutory Auditor)
For and on behalf of Edwin Smith
27 June 2022
Chartered Accountants
Statutory Auditor
32 Queens Road
Reading
Berkshire
RG1 4AU
MOOG READING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 2 OCTOBER 2021
- 9 -
Period
Period
ended
ended
2 October
3 October
2021
2020
Notes
£
£
Turnover
3
20,906,820
22,198,153
Cost of sales
(16,966,744)
(20,926,145)
Gross profit
3,940,076
1,272,008
Distribution costs
(1,030,006)
(1,624,763)
Administrative expenses
(1,788,929)
(624,878)
Other operating income
22,542
62,263
Operating profit/(loss)
4
1,143,683
(915,370)
Interest receivable and similar income
7
4,402
152
Interest payable and similar expenses
8
(780,338)
(805,380)
Profit/(loss) before taxation
367,747
(1,720,598)
Tax on profit/(loss)
9
(128,350)
436,209
Profit/(loss) and total comprehensive income for the financial period
239,397
(1,284,389)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
MOOG READING LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 2 OCTOBER 2021
02 October 2021
- 10 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible fixed assets
10
5,194,000
5,539,836
Investments
11
22,051,382
22,051,382
27,245,382
27,591,218
Current assets
Stocks
13
3,774,725
4,312,154
Debtors
15
9,964,159
7,523,223
Cash at bank and in hand
313,473
451,010
14,052,357
12,286,387
Creditors: amounts falling due within one year
16
(7,308,011)
(5,304,887)
Net current assets
6,744,346
6,981,500
Total assets less current liabilities
33,989,728
34,572,718
Creditors: amounts falling due after more than one year
16
(14,115,190)
(14,477,608)
Provisions for liabilities
Deferred tax liabilities
20
(85,274)
Other provisions
21
(1,202,244)
(1,747,487)
Net assets
18,587,020
18,347,623
Capital and reserves
Called up share capital
24
135,137
135,137
Capital redemption reserve
25
7,200,000
7,200,000
Profit and loss reserves
11,251,883
11,012,486
Total equity
18,587,020
18,347,623
The financial statements were approved by the board of directors and authorised for issue on 21 June 2022 and are signed on its behalf by:
M. Smith
Director
Company registration number 00586505
MOOG READING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 2 OCTOBER 2021
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 29 September 2019
135,137
7,200,000
12,296,875
19,632,012
Period ended 3 October 2020:
Loss and total comprehensive income for the period
-
-
(1,284,389)
(1,284,389)
Balance at 3 October 2020
135,137
7,200,000
11,012,486
18,347,623
Period ended 2 October 2021:
Profit and total comprehensive income for the period
-
-
239,397
239,397
Balance at 2 October 2021
135,137
7,200,000
11,251,883
18,587,020
MOOG READING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 2 OCTOBER 2021
- 12 -
1
Accounting policies
Company information
Moog Reading Limited is a private company limited by shares incorporated in England and Wales. The registered office is 30 Suttons Park Avenue, Suttons Business Park, Reading, Berkshire, RG6 1AW.
The company's principal activities and nature of its operations are disclosed in the directors' report.
1.1
Reporting period
These financial statements are for the 52 week period ending 2 October 2021, the previous reporting date was 3 October 2020.
For operational reasons, the company prepares financial statements for the 52 week period ending with the Saturday falling closest to 30 September each year. As a result these financial statements do not cover a full year, however the results are considered to be comparable with previous financial reporting periods.
1.2
Accounting convention
The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS
-
inclusion of an explicit and unreserved statement of compliance with IFRS;
-
presentation of a statement of cash flows and related notes;
-
disclosure of the objectives, policies and processes for managing capital;
-
disclosure of key management personnel compensation;
-
disclosure of the categories of financial instrument and the nature and extent of risks arising on these financial instruments;
-
the effect of financial instruments on the statement of comprehensive income;
-
comparative period reconciliations for the number of shares outstanding and the carrying amounts of property, plant and equipment, intangible assets, investment property and biological assets;
-
disclosure of the future impact of new International Financial Reporting Standards in issue but not yet effective at the reporting date;
-
comparative narrative information; and
-
related party disclosures for transactions with the parent or wholly owned members of the group.
Where required, equivalent disclosures are given in the group accounts of Moog Inc. The group accounts of Moog Inc are available to the public and can be obtained as set out in note 30.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The
financial statements
present information about the company as an individual entity and not about its group
.
Moog Reading Limited is a wholly owned subsidiary of Moog Controls Ltd and the results of Moog Reading Limited are included in the consolidated financial statements of Moog Inc which are available from its registered office, East Aurora, New York 14052-0018, United States of America
MOOG READING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 OCTOBER 2021
1
Accounting policies
(Continued)
- 13 -
1.3
Going concern
The directors have at the time of approving the financial statements, a reasonable expectation that the
true
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
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 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 are recoverable.
Credits in respect of returns and refunds are calculated by reference to the original sales invoice to which it relates.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings (ROU assets)
over the term of the lease
Leasehold improvements
over the term of the lease
Fixtures, fittings & equipment
10% per annum
Plant and machinery
10-33% per annum
IT and office equipment (ROU assets)
over the term of the lease
Motor vehicles (ROU assets)
over the term of the lease
Assets in the course of construction are not depreciated.
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
.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
MOOG READING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 OCTOBER 2021
1
Accounting policies
(Continued)
- 14 -
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.
1.7
Impairment of tangible and intangible assets
At each reporting end 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 profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
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 profit or loss, 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.
1.8
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.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
1.9
Cash at bank and in hand
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial assets
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
MOOG READING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 OCTOBER 2021
1
Accounting policies
(Continued)
- 15 -
Financial assets at fair value through profit or loss
Financial assets are classified as at FVTPL when the financial asset is held for trading. This is the case if:
-
the asset has been acquired principally for the purpose of selling in the near term, or
-
on initial recognition it is part of a portfolio of identified financial instruments that the
manages together and has a recent actual pattern of short-term profit taking, or
-
it is a derivative that is not designated and effective as a hedging instrument.
Financial assets at FVTPL are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any dividend or interest earned on the financial asset. Interest and dividends are included in 'Investment income' and gains and losses on remeasurement included in 'other gains and losses' in the statement of comprehensive income.
Financial assets held at amortised cost
Financial assets with fixed or determinable payments and fixed maturity dates that the Company has the positive intent and ability to hold to maturity are classified as held to maturity investments.
Held to maturity investments are measured at amortised cost using the effective interest method less any impairment, with revenue recognised on an effective yield basis.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
Trade Debtors
, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
Financial assets at fair value through other comprehensive income
Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.
Financial assets classified as available for sale are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income. Where an AFS financial asset is disposed of or determined to be impaired, the cumulative gain or loss previously recognised in other comprehensive income is reclassified to profit or loss.
Dividends and interest earned on AFS financial assets are included in the investment income line item in the statement of comprehensive income.
MOOG READING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 OCTOBER 2021
1
Accounting policies
(Continued)
- 16 -
Impairment of financial assets
Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.
The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.
For trade receivables, the simplified approach permitted by IFRS 9 is applied, which requires expected lifetime losses to be recognised from initial recognition of the receivables.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
1.11
Financial liabilities
The company recogni
s
es financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either
'
financial liabilities at fair value through profit or loss
'
or
'
other financial liabilities
'
.
Other financial liabilities
Other financial liabilities, including borrowings
, t
rade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs
directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method
.
For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the
company’s
obligations are discharged, cancelled, or they expire.
1.12
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.13
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability. A derivative is presented as a non-current asset or liability if the remaining maturity of the instrument is more than 12 months and it is not expected to be realised or settled within 12 months. Other derivatives are classified as current.
1.14
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
MOOG READING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 OCTOBER 2021
1
Accounting policies
(Continued)
- 17 -
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 end date.
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset 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
and
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 end date, taking into account the risks and uncertainties surrounding the obligation.
Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
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
inventories
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.
MOOG READING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 OCTOBER 2021
1
Accounting policies
(Continued)
- 18 -
1.18
Leases
At inception, the company assesses whether a contract is
,
or contains
,
a lease
within the scope of IFRS 16. A contract is
,
or contains
,
a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within
tangible fixed assets,
apart from those that meet the definition of investment property
.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other tangible fixed assets. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in
:
future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.
1.19
Grants
Government grants are recognised when there is reasonable assurance that the grant conditions will be met and the grants will be received.
1.20
Foreign exchange
Transactions in currencies other than
pounds sterling 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.
1.21
Research and development expenditure is written off as incurred, except that development expenditure incurred on an
individual project is carried forward when its future recoverability can reasonably be regarded as assured. Any
expenditure carried forward is amortised in line with the expected future sales from the related project.
R&D expenditure in the year totalled £
316,300
(
2020 - £314,349
). An R&D expenditure tax credit of £
41,119
(
2020 - £40,073
) has been included in the Cost of Sales .
MOOG READING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 OCTOBER 2021
- 19 -
2
Critical accounting estimates and judgements
In the application of the company’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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
Critical judgements
Slow moving stock
Management consider any stock line not used in the last 12 months and not required for an order due to commence in
next 12 months to be 'slow moving' and has been provided for accordingly.
Doubtful debts
Management policy is to provide for any debt which is doubtful to be recovered and later released if received. Bad
debts are provided on specific debtor balances using managements historic knowledge of payment patterns and
relationship with the customer. The provision is updated based on the latest information available at the time of
publishing the financial statements.
Functional currency
Although many transactions are made in Euros and US Dollars, management consider that the functional currency of
the company is British Pounds.
Loan provided by a related party
The terms of the loan and the interest rate are considered by management to be at market rates.
Revenue from contracts
The cost estimates at completion are derived from production unit costs and forecasts of qualification costs.
Key sources of estimation uncertainty
Dilapidations
Ma
nagement have considered that the provision for building restoration works is a fair and reasonable estimate of
costs to be incurred. The provision has not been discounted historically.
Warranty costs
A provision for repairs to parts returned under warranty is calculated using a standard cost per unit. Any under / over
provision is recognised when the work has been completed.
Labour and overhead rate
Work in progress includes the cost of labour and overheads absorbed using standard rates calculated and reviewed
e
ach quarter.
MOOG READING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 OCTOBER 2021
- 20 -
3
Turnover and other income
An analysis of the company's turnover is as follows:
2021
2020
£
£
Turnover analysed by class of business
Provision of goods and services from contracts
20,906,820
22,198,153
2021
2020
£
£
Other income
Grants received
19,354
60,247
The directors have chosen not to disclose turnover analysis by geographical
or other
segmentation
as provision of such
information is considered to be prejudicial to the interests of the company.
Turnover represents the amounts derived from the provision of goods and services
from contracts,
which fall within the company's
ordinary activities, stated net of value added tax.
The directors consider that all turnovers are attributable to the one continuing principal activity of the business.
4
Operating profit/(loss)
2021
2020
Operating profit/(loss) for the period is stated after charging/(crediting):
£
£
Exchange losses
69,957
32,020
Government grants
(19,354)
(60,247)
Fees payable to the company's auditor for the audit of the company's financial statements
27,675
20,333
Depreciation of property, plant and equipment
753,046
736,030
Cost of inventories recognised as an expense
10,393,121
13,829,257
5
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2021
2020
Number
Number
Production
102
99
Distribution and selling
12
13
Administration and IT
9
8
Total
123
120
MOOG READING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 OCTOBER 2021
5
Employees
(Continued)
- 21 -
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
5,587,713
5,772,439
Social security costs
453,629
434,041
Pension costs
253,399
253,323
6,294,741
6,459,803
6
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
204,829
168,289
Company pension contributions to defined contribution schemes
8,375
8,355
213,204
176,644
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2020 - 3).
Remuneration disclosed above include the following amounts paid to the highest paid director:
Remuneration for qualifying services
109,153
-
Company pension contributions to defined contribution schemes
5,826
-
As total directors' remuneration was less than £200,000 in the
prior
Period, no disclosure is provided for that Period.
7
Interest receivable and similar income
2021
2020
£
£
Interest income
Other interest income
4,402
152
MOOG READING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 OCTOBER 2021
- 22 -
8
Interest payable and similar expenses
2021
2020
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
620,665
631,142
Interest on lease liabilities
159,673
169,228
Interest on other loans
5,010
780,338
805,380
9
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
30,794
-
Adjustments in respect of prior periods
(443,814)
-
Total UK current tax
(413,020)
Deferred tax
Origination and reversal of temporary differences
101,247
(440,592)
Adjustment in respect of prior periods
440,123
4,383
541,370
(436,209)
Total tax charge/(credit)
128,350
(436,209)
The charge for the period can be reconciled to the profit/(loss) per the profit and loss account as follows:
2021
2020
£
£
Profit/(loss) before taxation
367,747
(1,720,598)
Expected tax charge/(credit) based on a corporation tax rate of 19.00% (2020: 19.00%)
69,872
(326,914)
Effect of expenses not deductible in determining taxable profit
238
1,568
Unutilised tax losses carried forward
440,123
Adjustment in respect of prior years
(443,814)
Depreciation on assets not qualifying for tax allowances
(14,527)
8,144
Deferred tax movement
541,370
(436,209)
Movement on short term timing differences
-
(3,669)
Effect of transition adjustments on current year tax charge
-
(119,252)
Revenue expenditure treaed as capital
(24,789)
-
Taxation charge/(credit) for the period
128,350
(436,209)
MOOG READING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 OCTOBER 2021
- 23 -
10
Tangible fixed assets
Leasehold land and buildings (ROU assets)
Leasehold improvements
Assets under construction
Plant and machinery
Fixtures, fittings & equipment
IT and office equipment (ROU assets)
Motor vehicles (ROU assets)
Total
£
£
£
£
£
£
£
£
Cost
At 4 October 2020
3,848,707
1,379,430
4,126,813
271,991
44,617
20,028
9,691,586
Additions
48,243
230,805
70,676
57,486
407,210
At 2 October 2021
3,848,707
1,427,673
230,805
4,197,489
271,991
44,617
77,514
10,098,796
Accumulated depreciation and impairment
At 4 October 2020
324,099
1,180,414
2,476,420
162,492
3,235
5,090
4,151,750
Charge for the period
333,479
29,097
344,159
25,367
7,970
12,974
753,046
At 2 October 2021
657,578
1,209,511
2,820,579
187,859
11,205
18,064
4,904,796
Carrying amount
At 2 October 2021
3,191,129
218,162
230,805
1,376,910
84,132
33,412
59,450
5,194,000
At 3 October 2020
3,524,608
199,016
1,650,393
109,499
41,382
14,938
5,539,836
MOOG READING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 OCTOBER 2021
- 24 -
11
Investments
Current
Non-current
2021
2020
2021
2020
£
£
£
£
Investments in subsidiaries
-
-
22,051,382
22,051,382
On 23 August 2012, the company acquired 100% of the issued share capital of Tritech Holdings Limited and its
wholly owned subsidiary Tritech International Limited.
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 4 October 2020
22,051,382
At 2 October 2021
22,051,382
Carrying amount
At 2 October 2021
22,051,382
At 3 October 2020
22,051,382
12
Subsidiaries
Details of the company's subsidiaries at 2 October 2021 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Tritech Holdings Limited
Peregrine Road, Westhill Business Park, Westhill,
Aberdeen, Aberdeenshire, AB32 6JL, United Kingdom
Ordinary Shares
100.00
-
Tritech International Limited
Peregrine Road, Westhill Business Park, Westhill,
Aberdeenshire, AB32 6JL, United Kingdom
Ordinary Shares
0
100.00
13
Stocks
2021
2020
£
£
Raw materials
2,996,416
3,437,261
Work in progress
331,470
422,704
Finished goods
446,839
452,189
3,774,725
4,312,154
MOOG READING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 OCTOBER 2021
- 25 -
14
Contracts with customers
2021
2020
2020
Period end
Period end
Period start
£
£
£
Contracts in progress
Contract assets
5,498,225
2,596,191
5,754,498
15
Debtors
2021
2020
£
£
Trade debtors
3,514,723
4,376,136
Provision for bad and doubtful debts
(205,254)
(218,871)
3,309,469
4,157,265
Contract assets (note 14)
5,498,225
2,596,191
Corporation tax recoverable
706,710
-
VAT recoverable
182,763
49,772
Amounts owed by fellow group undertakings
119,636
86,968
Prepayments and accrued income
147,356
176,931
9,964,159
7,067,127
Deferred tax asset
-
456,096
9,964,159
7,523,223
Trade debtors disclosed above are classified as loans and receivables and are therefore measured at amortised cost.
16
Creditors
Due within one year
Due after one year
2021
2020
2021
2020
Notes
£
£
£
£
Loans and overdrafts
17
11,000,000
11,000,000
Creditors
18
6,653,244
4,959,703
Corporation tax
-
(159,085)
-
-
Other taxation and social security
123,069
101,277
-
-
Lease liabilities
19
411,165
375,800
3,115,190
3,477,608
Deferred income
22
120,533
27,192
7,308,011
5,304,887
14,115,190
14,477,608
MOOG READING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 OCTOBER 2021
- 26 -
17
Loans and overdrafts
Due after one year
2021
2020
£
£
Borrowings held at amortised cost:
Loans from parent undertaking
11,000,000
11,000,000
Interest is charged at market rates.
The £11,000,000 loan from the immediate parent company, Moog Controls Limited, expires in December 2022. Interest on the loan is charged at a rate of 5.46% p.a. Interest due up until the date of transfer was fully paid .
18
Creditors
2021
2020
£
£
Trade creditors
1,700,037
2,022,684
Payments received on account
377,206
152,944
Amounts owed to fellow group undertakings
4,040,286
1,964,172
Accruals and deferred income
535,715
819,903
6,653,244
4,959,703
19
Lease liabilities
2021
2020
Maturity analysis
£
£
Within one year
411,165
375,800
In two to five years
3,115,190
1,671,788
In over five years
-
1,805,820
Total undiscounted liabilities
3,526,355
3,853,408
Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
2021
2020
£
£
Current liabilities
411,165
375,800
Non-current liabilities
3,115,190
3,477,608
3,526,355
3,853,408
MOOG READING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 OCTOBER 2021
19
Lease liabilities
(Continued)
- 27 -
2021
2020
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
159,673
169,228
Other leasing information is included in note 27.
20
Deferred taxation
2021
2020
£
£
Deferred tax liabilities
85,274
Deferred tax assets
(456,096)
85,274
(456,096)
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.
Accelerated capital allowances
Tax losses
Retirement benefit obligations
Transition adjustment
Total
£
£
£
£
£
Deferred tax asset at 4 October 2019
(11,835)
(3,668)
(4,384)
(19,887)
Deferred tax movements in prior year
Charge/(credit) to profit or loss
(4,138)
(440,123)
3,668
-
(440,593)
Other
-
-
-
4,384
4,384
Deferred tax asset at 4 October 2020
(15,973)
(440,123)
-
(456,096)
Deferred tax movements in current year
Charge/(credit) to profit or loss
101,247
440,123
-
-
541,370
Deferred tax liability at 2 October 2021
85,274
-
85,274
Deferred tax assets and liabilities are offset in the financial statements only where the company has a legally enforceable right to do so.
MOOG READING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 OCTOBER 2021
- 28 -
21
Provisions for liabilities
2021
2020
£
£
Dilapidations provision
256,500
256,500
Warranty provision
151,893
262,322
Contract loss provision
793,851
1,228,665
1,202,244
1,747,487
Movements on provisions:
Dilapidations provision
Warranty provision
Contract loss provision
Total
£
£
£
£
At 4 October 2020
256,500
262,323
817,586
1,336,409
Additional provisions in the year
-
13,684
553,141
566,825
Utilisation of provision
-
(124,114)
(576,876)
(700,990)
At 2 October 2021
256,500
151,893
793,851
1,202,244
Dilapidations provision
A provision has been created to estimate the full cost of dilapidations which will be incurred at the end of the current
lease in 2029.
Warranty provision
A provision is recognised for expected warranty claims on products sold during the last period. It is expected that
most of these costs will be incurred in the next financial period and all will have been incurred within two years of
the balance sheet date.
Contract loss provision
A provision is recognised for expected losses on outstanding manufacturing contracts. It is expected that most of
these losses will be incurred in the next financial period.
22
Deferred revenue
2021
2020
£
£
Arising from advance invoicing
120,533
27,192
23
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
253,399
253,323
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.
MOOG READING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 OCTOBER 2021
- 29 -
24
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Authorised
Ordinary shares of £1 each
128,702
128,702
128,702
128,702
'A' ordinary shares of 5p each
128,700
128,700
6,435
6,435
257,402
257,402
135,137
135,137
Issued and fully paid
Ordinary shares of £1 each
128,702
128,702
128,702
128,702
'A' ordinary shares of 5p each
128,700
128,700
6,435
6,435
257,402
257,402
135,137
135,137
Dividends and any surplus assets on a winding up order are distributed one ninth to holders of ordinary shares.
Dividends and any surplus assets on a winding up order are distributed eight ninths to holders of ordinary A shares.
25
Capital redemption reserve
2021
2020
£
£
At the beginning and end of the period
7,200,000
7,200,000
26
Contingent liabilities
The company has provided a guarantee to HM Revenue & Customs for £80,000 in respect of import
d
uties.
27
Other leasing information
Lessee
Short term leases have been accounted for in accordance with IFRS 16 paragraph 6.
Amounts recognised in profit or loss as an expense during the period in respect of lease arrangements are as follows:
2021
2020
£
£
Expense relating to short-term leases
1,405
3,195
MOOG READING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 OCTOBER 2021
27
Other leasing information
(Continued)
- 30 -
Set out below are the future cash outflows to which the lessee is potentially exposed that are not reflected in the measurement of lease liabilities:
2021
2020
Operating leases apart from land and buildings
£
£
Within one year
-
3,194
Between two and five years
-
1,335
-
4,529
Information relating to lease liabilities is included in note 19.
28
Capital commitments
2021
2020
£
£
At 2 October 2021 the company had capital commitments as follows:
Contracted for but not provided in the financial statements:
Acquisition of tangible fixed assets
320,832
-
29
Related party transactions
Remuneration of key management personnel
T
he company has
claimed
the exemption from disclosing the remuneration of key management personnel
.
The following amounts were outstanding at the reporting end date:
2021
2020
Amounts due to related parties
£
£
Parent company
12,895,941
11,000,393
Other related parties
2,144,345
1,963,779
15,040,286
12,964,172
MOOG READING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 OCTOBER 2021
29
Related party transactions
(Continued)
- 31 -
The following amounts were outstanding at the reporting end date:
2021
2020
Amounts due from related parties
£
£
Parent company
18,383
86,968
Other related parties
101,253
-
119,636
86,968
Other information
The company has claimed the exemption from disclosing
transactions with wholly owned fellow subsidiary companies of the Moog
Inc. group.
30
Controlling party
The company's immediate parent undertaking is Moog Controls Limited.
In the directors' opinion, the company's ultimate parent undertaking and controlling party is Moog Inc., which is
incorporated in the United States of America. The financial statements of Moog Inc. are available from Moog Inc.,
East Aurora, New York 14052-0018, United States of America.
The smallest group in which the company results are included is that headed by Moog Controls Limited, registered in
England. The largest group in which the results of Moog Reading Limited are included is that headed by Moog Inc.
2021-10-02
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D. Norman
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