Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2021
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NEWTON TECHNOLOGY GROUP PLC
COMPANY INFORMATION
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NEWTON TECHNOLOGY GROUP PLC
CONTENTS
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NEWTON TECHNOLOGY GROUP PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
The directors present their strategic report for the company for the year ended 31 December 2021
The company acts as a holding company to a number of 100% owned subsidiaries engaged in the development, design and building of equipment for use in the optical fibre manufacturing, gas handling and semi-conductor industries. The company also provides administration services to those subsidiaries.
In the year, the company recharged subsidiaries £325,000 for such services and incurred total costs of £654,790 net of sundry operating income. The recharges for the year were restricted by the low level of profitability of the company’s subsidiaries, caused by ongoing international trade constraints and shortages of key supplies. Consequently, the company recorded a loss of £329,790 for the year.
The risks for the company reflect those applicable to its trading subsidiaries and these comprise liquidity, interest rate, currency and credit risks. The key uncertainty is the level of international demand for optical fibre manufacturing equipment.
The directors manage these risks by imposing operating parameters on the subsidiaries as approved by the board and monitoring adherence thereto, as follows:- Liquidity - it is policy to ensure that the company and its subsidiaries, as a whole (‘the group’), continues to have sufficient cash to meet liabilities as they fall due. The directors review cash flow and projections on a regular basis. Interest rates – exposure to this risk is minimal, due to combined cash resources. Currency – a natural hedge is achieved by having both revenues and costs in all currencies dealt in. Currency balances are maintained from receipts to meet anticipated costs. Credit – limits are applied to customers, based on searches and trading history. Letters of credit are received for all major supplies above the limits set. The subsidiaries do not enter into speculative transactions.
The key performance indicators for the group comprise:-
- The rate of receipt of new work enquiries and the conversion of those enquiries into orders. - Productive activity in meeting orders and carrying out design and development activities. - The incidence of shipment of orders and the collection of cash from those shipments. - Materials cost of sales prices against standards and shortages in supply chains. The directors regularly monitor the above indicators and take action as required.
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NEWTON TECHNOLOGY GROUP PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
The group’s ongoing engagement with stakeholders and consideration of their respective interests is as described below.
Shareholders All shareholders are actively involved with the company as directors. Customers and suppliers Newton Technology Group was created and developed by Technologists and Process Engineers, who recognised the importance of service, support and process knowledge. This ethos is key to the success of the group. Maintaining the strong reputation with our customer base through customer support and knowledge transfer and providing equipment and service of the highest quality is of paramount importance. Likewise, we have long-standing working relationships with key suppliers. Employees A key to the group’s success has been its engaged workforce. Our teams include experienced designers, engineers and software experts who work together in close collaboration to deliver interesting projects which provide opportunities for development. Community and environment Our businesses are principally located in Newton Hall, near Cambridge in the UK, where the companies share facilities for development and production. This actively encourages the open exchange of ideas.
This report was approved by the board
and signed on its behalf.
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NEWTON TECHNOLOGY GROUP PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
The directors present their report and the financial statements for the year ended 31 December 2021.
The directors who served during the year were:
The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;
∙
make judgments and accounting estimates that are reasonable and prudent;
∙
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The 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 to 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.
The loss for the year, after taxation, amounted to £
329,790
(2020 -
loss
£
13,629
)
.
'The company is expected to continue to oversee the activities of its subsidiaries and to procure such working capital as they may need to service any upturn in activity.
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NEWTON TECHNOLOGY GROUP PLC
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
There have been no significant events affecting the Company since the year end.
The auditors, Ashcroft Partnership LLP, will be proposed for reappointment in accordance with
section 489 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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NEWTON TECHNOLOGY GROUP PLC
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEWTON TECHNOLOGY GROUP PLC
We have audited the financial statements of Newton Technology Group PLC (the 'Company') for the year ended 31 December 2021, which comprise the Statement of income and retained earnings, the Statement of financial position, the Statement of cash flows
and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards,
including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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.
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NEWTON TECHNOLOGY GROUP PLC
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEWTON TECHNOLOGY GROUP PLC (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the 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.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
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NEWTON TECHNOLOGY GROUP PLC
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEWTON TECHNOLOGY GROUP PLC (CONTINUED)
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 Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. 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:
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity. The following laws and regulations were identified as being of significance to the entity: • Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation. • It is considered that there are no laws and regulations for which non-compliance maybe fundamental to the operating aspects of the business. Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud. No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at:
www.frc.org.uk/auditorsresponsibilities
. This description forms part of our Auditors' report.
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NEWTON TECHNOLOGY GROUP PLC
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEWTON TECHNOLOGY GROUP PLC (CONTINUED)
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 Auditors' 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.
for and on behalf of
Chartered Accountants
Statutory Auditor
Stonecross
Trumpington High Street
CB2 9SU
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NEWTON TECHNOLOGY GROUP PLC
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2021
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NEWTON TECHNOLOGY GROUP PLC
REGISTERED NUMBER:
00620459
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2021
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on pages 13 to 24 form part of these financial statements.
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NEWTON TECHNOLOGY GROUP PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
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NEWTON TECHNOLOGY GROUP PLC
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2021
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NEWTON TECHNOLOGY GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
The principal activity of Newton Technology Group plc ("the Company") is that of activities of head offices.
Newton Technology Group plc is a public limited company, limited by shares, and is incorporated in England and Wales. The registered office address is Newton Hall, Town Street, Newton, Cambridge, Cambridgeshire, CB22 7ZE.
2.
Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The
Company
, and the
Group
headed by it, qualify as small as set out in
section 383 of the Companies Act 2006
and the parent and
Group
are considered eligible for the exemption to prepare consolidated accounts.
Grants of a revenue nature are recognised in the Statement of income and retained earnings in the same period as the related expenditure.
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NEWTON TECHNOLOGY GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.
Accounting policies (continued)
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NEWTON TECHNOLOGY GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.
Accounting policies (continued)
Goodwill
Other intangible assets
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments.
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NEWTON TECHNOLOGY GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.
Accounting policies (continued)
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
(i) Basic financial assets Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at market rate of interest. Financial assets classified as receivable within one year are not amortised. (ii) Basic financial liabilities Basic financial liabilities, including creditors and loans that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. 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 rate method. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. a) There are no judgements, apart from those involving estimates, that have had a significant effect on the amounts recognised in the financial statements. b) The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results.
The whole of the turnover is attributable to management fees from subsidiary companies.
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NEWTON TECHNOLOGY GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
There was no directors remuneration paid in the period (2020: £nil)
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NEWTON TECHNOLOGY GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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NEWTON TECHNOLOGY GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
9.
Taxation (continued)
The company has estimated tax trading losses carried forward of £316,561 (2020: £2,766). A
deferred tax asset of £80,567 (2020: £145) has not been recognised on the basis that the losses will not be utilised in the foreseeable future.
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NEWTON TECHNOLOGY GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Page 21
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NEWTON TECHNOLOGY GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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NEWTON TECHNOLOGY GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
There is a cross guarantee and debenture with Newton Technology Group Plc dated 29 November 2016 securing all monies and liabilities, now or in the future, due to Barclays, against all assets of the companies in the group.
In addition to this on 24 May 2017 a fixed charge was registered with Barclays by SG Controls Limited in relation to future credit balances. A charge over Newton Hall is in place in favour of Barclays dated 20 November 2020. There is a cross guarantee and debenture with Newton Technology Group Plc dated 8 January 2021 securing all monies and liabilities, now or in the future, due to Barclays, against all assets of SG Controls.
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NEWTON TECHNOLOGY GROUP PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
The controlling party is I McNulty.
The group is exempt from the requirement to prepare group accounts as at the end of the financial year the company would be subject to the small companies regime but from being a public company.
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