REGISTERED NUMBER:
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STRATEGIC REPORT, |
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REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS |
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FOR THE PERIOD |
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8 APRIL 2020 TO 31 MARCH 2021 |
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FOR |
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ARROWSMITH ENGINEERING (COVENTRY) LTD |
REGISTERED NUMBER:
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STRATEGIC REPORT, |
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REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS |
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FOR THE PERIOD |
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8 APRIL 2020 TO 31 MARCH 2021 |
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FOR |
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ARROWSMITH ENGINEERING (COVENTRY) LTD |
ARROWSMITH ENGINEERING (COVENTRY) LTD (REGISTERED NUMBER: 00900323) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
for the period 8 April 2020 to 31 March 2021 |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 5 |
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Report of the Independent Auditors | 7 |
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Income Statement | 11 |
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Other Comprehensive Income | 12 |
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Balance Sheet | 13 |
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Statement of Changes in Equity | 14 |
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Notes to the Financial Statements | 15 |
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ARROWSMITH ENGINEERING (COVENTRY) LTD |
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COMPANY INFORMATION |
for the period 8 April 2020 to 31 March 2021 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Chartered Accountants |
Statutory Auditors |
1110 Elliott Court |
Herald Avenue |
Coventry Business Park |
Coventry |
West Midlands |
CV5 6UB |
ARROWSMITH ENGINEERING (COVENTRY) LTD (REGISTERED NUMBER: 00900323) |
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STRATEGIC REPORT |
for the period 8 April 2020 to 31 March 2021 |
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The directors present their strategic report for the period 8 April 2020 to 31 March 2021. |
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PRINCIPAL ACTIVITIES AND BUSINESS REVIEW |
The principal activity of the company was that of the manufacture of precision engineered aerospace components. |
The directors are pleased with the profit achieved on ordinary activities for the year and the state of affairs at the balance sheet date. This profit has been generated on the back of the Company's focus on customer service and maintaining high standards of quality and delivery. The Board recognise that the past financial year was a challenging year, given the pandemic, world economic environment, state of the aerospace industry and the implications of the exit of the United Kingdom from the European Union. |
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Turnover for the year was down 42.2% in the year to £4.61m (2020: £7.96m) and a gross profit margin of 36.6% was achieved (2020: 38.6%). The company generated a profit before tax of £333,355 (2020: £778,339). This was in line with management's expectations for the year, the reductions being a result of the impact of Covid-19 on the company and its customers. |
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The balance sheet remains strong with net assets of £3,059,248 (2020: £2,626,663) and current assets (inclusive of intercompany balances) of £4,961,963 (2020: £6,171,525) which are 2.27 times (2020: 1.39 times) larger than current liabilities. |
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Overall the 2021 financial year was a challenging one but one in which the company remained profitable. |
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Given the nature of the business, the Company's directors are of the opinion that analysis using KPI's, other than those which emerge from the financial statements and discussed in the business review above, are not necessary for an understanding of the Company. |
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ARROWSMITH ENGINEERING (COVENTRY) LTD (REGISTERED NUMBER: 00900323) |
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STRATEGIC REPORT |
for the period 8 April 2020 to 31 March 2021 |
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PRINCIPAL RISKS AND UNCERTAINTIES |
In common with all trading businesses, the company is exposed to a variety of risks in the conduct of its normal business operations, the company maintains a range of insurance policies against major identified insurable risks. The Company's principal financial instruments comprise an invoice discounting facility and cash. The main purpose of these financial instruments is to raise finance for the company's operations. The company has various other financial instruments such as trade debtors and trade creditors, which arise from its operations. The company does not enter into derivative transactions and has a policy that no trading in financial instruments shall be undertaken. |
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While it is not possible to completely record or quantify every material risk, below is a summary of those risks that the directors believe are most significant to the company's business: |
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Liquidity Risk |
The company's objective is to maintain a balance between continuity of funding and flexibility through the use of an invoice discounting facility. |
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Credit Risk |
The company trades with only recognised, credit worthy third parties. It is company's policy that all customers who wish to trade on credit terms are subject to credit check procedures. Customers are reviewed throughout the year and recoverable balances are monitored on an on-going basis. |
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Brexit and Trade |
In common with all businesses, the company is exposed to the uncertainties surrounding the final outcome of the exit of the United Kingdom from the European Union. The main risks are from changes in foreign currency exchange rates, the impact of tariffs and other increased costs of doing business, and the impact of delays in bringing in product from the European Union. The company does not expect these to have significant impact on trading but, where possible, has taken steps to minimise their impact. |
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Pandemics |
The current global COVID-19 pandemic has had an impact on the industries served by the Company and has had an impact on the revenue of the Company. The Aerospace industry was affected due to the lockdowns of countries throughout the world and the various travel bans imposed in the United Kingdom and the wider world. The full impact may not be known until later in 2021 and as the government guidance changes. There will certainly be a recovery period which is likely to be a number of years. |
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Given the nature of the company's business other risks include the following: |
- Competition selling similar products at lower prices. |
- Ensuring that company's UK based manufacturing costs are globally competitive. |
- Global or regional recession reducing demand. |
- Difficulty in maintaining margins in the face of commodity or exchange rate fluctuations. |
- Product related legislation. |
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The directors continue to assess the risk and opportunities arising from the above and take action to mitigate any adverse impact. |
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FUTURE DEVELOPMENTS |
Being a part of the Aero Services Global Group Limited will ensure the continued development of its business offering to the Aerospace industry and further investment in the Company. |
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RESEARCH AND DEVELOPMENT ACTIVITIES |
The Company are specialists in development works for major world aerospace companies and help to develop parts for the most advanced aerospace engines in the world. They aim to stay at the forefront of machining technology and techniques and are involved in several NATEP projects. |
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ARROWSMITH ENGINEERING (COVENTRY) LTD (REGISTERED NUMBER: 00900323) |
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STRATEGIC REPORT |
for the period 8 April 2020 to 31 March 2021 |
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GOING CONCERN |
The directors have prepared forecasts to 31 March 2023 to assist them in making an assessment in preparing these financial statements as to whether the Company is expected to be a going concern for a period of at least 12 months from the approval of these accounts and have concluded that there are no material uncertainties that may cast doubt on the Company's ability to continue as a going concern. |
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ON BEHALF OF THE BOARD: |
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ARROWSMITH ENGINEERING (COVENTRY) LTD (REGISTERED NUMBER: 00900323) |
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REPORT OF THE DIRECTORS |
for the period 8 April 2020 to 31 March 2021 |
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The directors present their report with the financial statements of the company for the period 8 April 2020 to 31 March 2021. |
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DIVIDENDS |
No dividends will be distributed for the period ended 31 March 2021. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 8 April 2020 to the date of this report. |
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DISCLOSURE IN THE STRATEGIC REPORT |
Included in the Strategic Report is the business review, details of principal risk and uncertainties, key performance indicators, future developments, research and development activities, consideration of going concern and post balance sheet events. |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
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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: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
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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. |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ARROWSMITH ENGINEERING (COVENTRY) LTD (REGISTERED NUMBER: 00900323) |
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REPORT OF THE DIRECTORS |
for the period 8 April 2020 to 31 March 2021 |
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AUDITORS |
The auditors, Luckmans Duckett Parker Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
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ON BEHALF OF THE BOARD: |
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ARROWSMITH ENGINEERING (COVENTRY) LTD |
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Opinion |
We have audited the financial statements of Arrowsmith Engineering (Coventry) Ltd (the 'company') for the period ended 31 March 2021 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, 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). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 March 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. |
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Basis for opinion |
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 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. |
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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. |
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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. |
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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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Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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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. |
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In connection with our audit of the financial statements, 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 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. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ARROWSMITH ENGINEERING (COVENTRY) LTD |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
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We have nothing to report in respect of the following matters where 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 directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
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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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ARROWSMITH ENGINEERING (COVENTRY) LTD |
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Auditors' 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 a Report of the Auditors 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. |
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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: |
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Enquiring of management and employees, including obtaining and reviewing supporting documentation, concerning the company's policies and procedures relating to: |
- Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; |
- Detecting and responding to the risks of fraud and whether they had knowledge of any actual, suspected or alleged fraud; and |
- The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations. |
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We obtained an understanding of the legal and regulatory frameworks applicable to the company based on our understanding of the company and sector experience and discussions with management. The most significant considerations for the company are the Companies Act 2006, corporate taxes and VAT legislation, employment taxes, health and safety and the Bribery Act 2010. |
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We carried out discussions among the engagement team, who also undertook the audit testing, to assess how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of these discussions, we identified potential for fraud in the following areas: |
- management override of control; and |
- revenue recognition - specifically in respect of completeness and cut-off and manipulation of revenue through management override of journals. |
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We designed and executed procedures in line with our responsibilities to detect material misstatements in respect of irregularities, including fraud. These procedures, together with the extent to which they are capable of detecting irregularities, including fraud, are detailed below: |
- We critically assessed the appropriateness and tested the application of the revenue and cost recognition policies. |
- We tested the appropriateness of accounting journals and other adjustments made in the preparation of the financial statements. We were able to identify and analyse the complete population of all journals in the year to identify and substantively test any which we considered were indicative of management override. |
- We reviewed the company's accounting policies for non-compliance with relevant standards. Our work also included considering significant accounting estimates for evidence of misstatement or possible bias and testing any significant transactions that appeared to be outside the normal course of business. |
- We made enquiries of management and reviewed correspondence with the relevant authorities to identify any irregularities or instances of non-compliance with laws and regulations. |
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We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
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Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. |
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ARROWSMITH ENGINEERING (COVENTRY) LTD |
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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 Report of the Auditors. |
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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 a Report of the Auditors 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. |
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for and on behalf of
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Chartered Accountants |
Statutory Auditors |
1110 Elliott Court |
Herald Avenue |
Coventry Business Park |
Coventry |
West Midlands |
CV5 6UB |
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ARROWSMITH ENGINEERING (COVENTRY) LTD (REGISTERED NUMBER: 00900323) |
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INCOME STATEMENT |
for the period 8 April 2020 to 31 March 2021 |
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Period | Period |
8.4.20 | 1.4.19 |
to | to |
31.3.21 | 7.4.20 |
Notes | £ | £ |
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TURNOVER | 3 |
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Cost of sales |
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GROSS PROFIT |
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Administrative expenses |
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(99,178 | ) | 858,651 |
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Other operating income |
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OPERATING PROFIT | 5 |
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Interest payable and similar expenses | 6 |
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PROFIT BEFORE TAXATION |
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Tax on profit | 7 | ( |
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PROFIT FOR THE FINANCIAL PERIOD |
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ARROWSMITH ENGINEERING (COVENTRY) LTD (REGISTERED NUMBER: 00900323) |
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OTHER COMPREHENSIVE INCOME |
for the period 8 April 2020 to 31 March 2021 |
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Period | Period |
8.4.20 | 1.4.19 |
to | to |
31.3.21 | 7.4.20 |
Notes | £ | £ |
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PROFIT FOR THE PERIOD |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD |
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ARROWSMITH ENGINEERING (COVENTRY) LTD (REGISTERED NUMBER: 00900323) |
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BALANCE SHEET |
31 March 2021 |
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2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
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Investments | 9 |
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CURRENT ASSETS |
Stocks | 10 |
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Debtors | 11 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 12 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
13 |
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PROVISIONS FOR LIABILITIES | 16 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 17 |
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Retained earnings | 18 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors and authorised for issue on
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ARROWSMITH ENGINEERING (COVENTRY) LTD (REGISTERED NUMBER: 00900323) |
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STATEMENT OF CHANGES IN EQUITY |
for the period 8 April 2020 to 31 March 2021 |
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Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
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Balance at 1 April 2019 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 7 April 2020 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31 March 2021 |
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ARROWSMITH ENGINEERING (COVENTRY) LTD (REGISTERED NUMBER: 00900323) |
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NOTES TO THE FINANCIAL STATEMENTS |
for the period 8 April 2020 to 31 March 2021 |
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1. | STATUTORY INFORMATION |
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Arrowsmith Engineering (Coventry) Ltd is a
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
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• | the requirements of Section 7 Statement of Cash Flows. |
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Preparation of consolidated financial statements |
The financial statements contain information about Arrowsmith Engineering (Coventry) Ltd as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Aero Services Global Group Ltd, C/O A2e Industries, No.1 Marsden Street, Manchester, England, M2 1HW. |
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Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
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Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
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Tangible fixed assets |
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Improvements to property | - |
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Plant and machinery | - |
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Fixtures and fittings | - |
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Computer equipment | - |
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Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost less any provision for impairment. |
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Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due |
allowance for obsolete and slow moving items. |
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Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling |
costs in bringing stocks to their present location and condition. Work in progress include labour and attributable overheads and finished goods are valued at sales price less margin. |
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ARROWSMITH ENGINEERING (COVENTRY) LTD (REGISTERED NUMBER: 00900323) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
for the period 8 April 2020 to 31 March 2021 |
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2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
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Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
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Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
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The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
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Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
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Government grants |
Revenue grants are charged to the profit and loss account when the expenditure is incurred. Capital |
grants are recorded on the balance sheet and unwound over the life of the asset they relate to. During the year the company received revenue grants of £438,733 and recognised capital grants of £29,006. |
ARROWSMITH ENGINEERING (COVENTRY) LTD (REGISTERED NUMBER: 00900323) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
for the period 8 April 2020 to 31 March 2021 |
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3. | TURNOVER |
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The turnover and profit before taxation are attributable to the one principal activity of the company. |
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An analysis of turnover by geographical market is given below: |
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Period | Period |
8.4.20 | 1.4.19 |
to | to |
31.3.21 | 7.4.20 |
£ | £ |
United Kingdom |
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Overseas | 700,365 | 1,980,732 |
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4. | EMPLOYEES AND DIRECTORS |
Period | Period |
8.4.20 | 1.4.19 |
to | to |
31.3.21 | 7.4.20 |
£ | £ |
Wages and salaries |
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Social security costs |
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Other pension costs |
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The average number of employees during the period was as follows: |
Period | Period |
8.4.20 | 1.4.19 |
to | to |
31.3.21 | 7.4.20 |
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Production | 51 | 55 |
Office and management | 14 | 19 |
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Period | Period |
8.4.20 | 1.4.19 |
to | to |
31.3.21 | 7.4.20 |
£ | £ |
Directors' remuneration |
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Directors' pension contributions to money purchase schemes |
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|
|
The number of directors to whom retirement benefits were accruing was as follows: |
|
Money purchase schemes |
|
|
ARROWSMITH ENGINEERING (COVENTRY) LTD (REGISTERED NUMBER: 00900323) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the period 8 April 2020 to 31 March 2021 |
|
5. | OPERATING PROFIT |
|
The operating profit is stated after charging/(crediting): |
|
Period | Period |
8.4.20 | 1.4.19 |
to | to |
31.3.21 | 7.4.20 |
£ | £ |
Hire of plant and machinery | ( |
) |
|
Other operating leases |
|
|
Depreciation - owned assets |
|
|
Loss on disposal of fixed assets |
|
|
Auditors' remuneration |
|
|
Foreign exchange differences |
|
|
|
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period | Period |
8.4.20 | 1.4.19 |
to | to |
31.3.21 | 7.4.20 |
£ | £ |
Bank and other loan interest |
|
|
Invoice discounting interest |
|
|
Hire purchase interest |
|
|
|
|
|
7. | TAXATION |
|
Analysis of the tax credit |
The tax credit on the profit for the period was as follows: |
Period | Period |
8.4.20 | 1.4.19 |
to | to |
31.3.21 | 7.4.20 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) | ( |
) |
|
Deferred tax | ( |
) |
|
Tax on profit | ( |
) | ( |
) |
|
UK corporation tax has been charged at 19% (2020 - 19%). |
ARROWSMITH ENGINEERING (COVENTRY) LTD (REGISTERED NUMBER: 00900323) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the period 8 April 2020 to 31 March 2021 |
|
7. | TAXATION - continued |
|
Reconciliation of total tax credit included in profit and loss |
The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
|
Period | Period |
8.4.20 | 1.4.19 |
to | to |
31.3.21 | 7.4.20 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
|
|
|
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Depreciation in excess of capital allowances |
|
|
Research and development tax credit | (165,952 | ) | (241,199 | ) |
Fixed asset differences | 187 | (7,944 | ) |
Total tax credit | (99,230 | ) | (89,534 | ) |
|
8. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
to | Plant and | and | Computer |
property | machinery | fittings | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 8 April 2020 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals |
|
|
|
( |
) | ( |
) |
At 31 March 2021 |
|
|
|
|
|
DEPRECIATION |
At 8 April 2020 |
|
|
|
|
|
Charge for period |
|
|
|
|
|
Eliminated on disposal |
|
|
|
( |
) | ( |
) |
At 31 March 2021 |
|
|
|
|
|
NET BOOK VALUE |
At 31 March 2021 |
|
|
|
|
|
At 7 April 2020 |
|
|
|
|
|
ARROWSMITH ENGINEERING (COVENTRY) LTD (REGISTERED NUMBER: 00900323) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the period 8 April 2020 to 31 March 2021 |
|
8. | TANGIBLE FIXED ASSETS - continued |
|
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Fixtures |
Plant and | and |
machinery | fittings | Totals |
£ | £ | £ |
COST |
Reclassification/transfer |
|
|
|
At 31 March 2021 |
|
|
|
DEPRECIATION |
Reclassification/transfer |
|
|
|
At 31 March 2021 |
|
|
|
NET BOOK VALUE |
At 31 March 2021 |
|
|
|
|
9. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 8 April 2020 |
and 31 March 2021 |
|
PROVISIONS |
At 8 April 2020 |
and 31 March 2021 | 121,617 |
NET BOOK VALUE |
At 31 March 2021 |
|
At 7 April 2020 |
|
|
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
|
|
Registered office: 50 Bayton Road, Exhall, Coventry,CV7 9DW |
Nature of business:
|
% |
Class of shares: | holding |
|
|
|
10. | STOCKS |
2021 | 2020 |
£ | £ |
Raw materials |
|
|
W I P and finished goods |
|
|
|
|
ARROWSMITH ENGINEERING (COVENTRY) LTD (REGISTERED NUMBER: 00900323) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the period 8 April 2020 to 31 March 2021 |
|
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Other debtors |
|
|
Tax |
|
|
Prepayments |
|
|
|
|
|
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Hire purchase contracts (see note 14) |
|
|
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Invoice discounting current account | 668,585 | 1,114,614 |
Accrued expenses |
|
|
Deferred government grants |
|
|
|
|
|
13. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
2021 | 2020 |
£ | £ |
Hire purchase contracts (see note 14) |
|
|
Deferred government grants |
|
|
|
|
|
14. | LEASING AGREEMENTS |
|
Minimum lease payments fall due as follows: |
|
Hire purchase contracts |
2021 | 2020 |
£ | £ |
Net obligations repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
ARROWSMITH ENGINEERING (COVENTRY) LTD (REGISTERED NUMBER: 00900323) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the period 8 April 2020 to 31 March 2021 |
|
14. | LEASING AGREEMENTS - continued |
|
Non-cancellable | operating leases |
2021 | 2020 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
In more than five years |
|
|
|
|
|
15. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
2021 | 2020 |
£ | £ |
Hire purchase contracts | 577,798 | - |
Invoice discounting account | 668,585 | 1,114,614 |
|
|
|
Close Brothers Invoice Finance hold an all assets debenture consisting of a fixed and floating charge over all of the assets of the company. |
|
16. | PROVISIONS FOR LIABILITIES |
2021 | 2020 |
£ | £ |
Deferred taxation | 108,203 | 126,842 |
|
Deferred |
tax |
£ |
Balance at 8 April 2020 |
|
Provided during period | ( |
) |
Balance at 31 March 2021 |
|
|
17. | CALLED UP SHARE CAPITAL |
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
|
Ordinary shares | £1 | 100 | 100 |
ARROWSMITH ENGINEERING (COVENTRY) LTD (REGISTERED NUMBER: 00900323) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the period 8 April 2020 to 31 March 2021 |
|
18. | RESERVES |
Retained |
earnings |
£ |
|
At 8 April 2020 |
|
Profit for the period |
|
At 31 March 2021 |
|
|
19. | ULTIMATE PARENT COMPANY |
|
The immediate parent undertaking of Arrowsmith Engineering (Coventry) Limited is A B Engineering Limited, a company registered in England and Wales, by virtue of it holding the entire share capital of the company. |
|
Aero Services Global Group Ltd is regarded by the directors as being the company's ultimate parent |
company. |