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REGISTERED NUMBER:
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AGEMA ENGINEERING LIMITED |
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 MARCH 2017 |
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REGISTERED NUMBER:
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AGEMA ENGINEERING LIMITED |
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 MARCH 2017 |
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AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2017 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 3 |
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Report of the Independent Auditors | 4 |
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Income Statement | 5 |
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Other Comprehensive Income | 6 |
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Balance Sheet | 7 |
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Statement of Changes in Equity | 8 |
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Cash Flow Statement | 9 |
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Notes to the Cash Flow Statement | 10 |
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Notes to the Financial Statements | 11 |
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AGEMA ENGINEERING LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2017 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Sovereign House |
12 Warwick Street |
Coventry |
West Midlands |
CV5 6ET |
AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2017 |
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The directors present their strategic report for the year ended 31 March 2017. |
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REVIEW OF BUSINESS |
The anticipated impact of the investment in production capacity during 2016 began to be realised as turnover for the |
year increased by just over 20% to £17.0m. To more accurately reflect the full cost of production it was decided to |
re-allocate direct plant and machinery costs together with the majority of energy costs to cost of sales. The effect of this |
was to reduce the gross margin, which for 2016 was restated at 30.8%. The reduction to 30.4% in 2017 can largely be |
attributed to the impact of a full year's depreciation charge on the £1.7m of Plant and Machinery additions in 2016. |
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Turnover has continued its upward trajectory since the year end, with sales of both tools and production parts showing |
further significant improvement in the current financial year. |
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In order to take advantage of sales opportunities which are now presenting themselves in Europe, helped in part by the |
recent fall in the value of Sterling, a site on which a manufacturing and distribution base can be established has been |
acquired by another group company since the year end, in the Czech Republic. This plant however, is not expected to |
become operational until the second half of 2018 and will therefore have little impact on the current year's results. |
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Net profit before tax improved by £142k, to £3.14m but due to overhead cost increases in a number of areas, the net |
profit percentage fell from 21.2% to 18.5%. Very much in line with the increase in turnover, employee numbers rose to |
176 at the year end compared with 145 twelve months previously, and have since stabilised at around this level. |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The company's customer base is concentrated within the automotive industry, and consequently the principal risk to the |
business is posed by a potential reduction in demand, both at home and abroad, for vehicles manufactured by its |
customers. |
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Along with many businesses, the potential impact of the UK's exit from the EU provides a degree of uncertainty at |
present. However, this may present opportunities as well as threats, and the group's imminent establishment of a |
manufacturing facility within the EU should leave the company well placed to take advantage when they do. |
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Despite only a small proportion of raw materials and components being imported directly, costs from our UK based |
suppliers are determined to a large extent by global prices which are subject to fluctuations as well as exchange rate |
movements. Although further falls in the value of Sterling against the major international currencies cannot be ruled out, |
exchange rates appear to have stabilised, and as a result the potential adverse impact on costs in the future has been |
significantly reduced. |
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Whatever the future holds, the impact of any actual or proposed increased costs on profitability will continue to be |
controlled by robust purchasing, and where circumstances allow, any permanent increases would be passed on to |
customers. |
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ON BEHALF OF THE BOARD: |
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19 December 2017 |
AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2017 |
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The directors present their report with the financial statements of the company for the year ended 31 March 2017. |
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DIVIDENDS |
Interim dividends totalling £12,000 per Ordinary A share were paid during the year. The total distribution of dividends for |
the period ended 31 March 2017 was £120,000. The directors recommended that no final dividend be paid. |
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There have been no dividends since the year end up to the date of this report. |
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EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2016 to the date of this report. |
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DISCLOSURE IN THE STRATEGIC REPORT |
Details of important events occurring since the year end and likely future developments are included in the Strategic |
Report. |
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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; |
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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. |
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ON BEHALF OF THE BOARD: |
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
AGEMA ENGINEERING LIMITED |
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We have audited the financial statements of Agema Engineering Limited for the year ended 31 March 2017 on pages |
five to twenty. The financial reporting framework that has been applied in their preparation is 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'. |
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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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Respective responsibilities of directors and auditors |
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Scope of the audit of the financial statements |
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give |
reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or |
error. This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances |
and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates |
made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and |
non-financial information in the Strategic Report and the Report of the Directors to identify material inconsistencies with |
the audited financial statements and to identify any information that is apparently materially incorrect based on, or |
materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of |
any apparent material misstatements or inconsistencies we consider the implications for our report. |
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Opinion on financial statements |
In our opinion the financial statements: |
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give a true and fair view of the state of the company's affairs as at 31 March 2017 and of its profit for the year 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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Opinion on other matter 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with |
the financial statements, and has been prepared in accordance with applicable legal requirements. In the light of the |
knowledge and understanding of the company and its environment, we have not identified any material misstatements in |
the Strategic Report or the Report of the Directors. |
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Matters on which we are required to report by exception |
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: |
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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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for and on behalf of
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Sovereign House |
12 Warwick Street |
Coventry |
West Midlands |
CV5 6ET |
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AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
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INCOME STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2017 |
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2017 | 2016 |
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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3,209,173 | 3,083,956 |
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Other operating income |
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OPERATING PROFIT | 5 |
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Interest receivable and similar income |
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3,222,610 | 3,114,605 |
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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 YEAR |
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AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
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OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MARCH 2017 |
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2017 | 2016 |
Notes | £ | £ |
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PROFIT FOR THE YEAR |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR |
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AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
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BALANCE SHEET |
31 MARCH 2017 |
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2017 | 2016 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 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 | 17 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 18 |
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Retained earnings | 19 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors on
by: |
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AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
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STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2017 |
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Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
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Balance at 1 April 2015 |
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Changes in equity |
Dividends | - | ( |
) | ( |
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Total comprehensive income | - |
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Balance at 31 March 2016 |
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Changes in equity |
Dividends | - | ( |
) | ( |
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Total comprehensive income | - |
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Balance at 31 March 2017 |
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AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
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CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2017 |
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2017 | 2016 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
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Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments
paid |
( |
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( |
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Tax paid | ( |
) | ( |
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Net cash from operating activities |
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Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
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Sale of tangible fixed assets |
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Interest received |
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Net cash from investing activities | ( |
) | ( |
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Cash flows from financing activities |
New loans in year |
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Loan repayments in year | ( |
) | ( |
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Capital repayments in year | ( |
) | ( |
) |
Amount withdrawn by directors | (476,559 | ) | (269,484 | ) |
Equity dividends paid | ( |
) | ( |
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Net cash from financing activities | ( |
) | ( |
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Increase/(decrease) in cash and cash equivalents |
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( |
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Cash and cash equivalents at beginning
of year |
2 |
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768,839 |
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Cash and cash equivalents at end of year | 2 | 1,553,706 | 263,172 |
AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
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NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2017 |
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1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2017 | 2016 |
£ | £ |
Profit before taxation |
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Depreciation charges |
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Profit on disposal of fixed assets |
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( |
) |
Finance costs | 82,116 | 116,008 |
Finance income | (4,116 | ) | (21,125 | ) |
3,869,991 | 3,603,735 |
Decrease/(increase) in stocks |
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( |
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(Increase)/decrease in trade and other debtors | ( |
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Increase/(decrease) in trade and other creditors |
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( |
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Cash generated from operations |
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2. | CASH AND CASH EQUIVALENTS |
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The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of |
these Balance Sheet amounts: |
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Year ended 31 March 2017 |
31.3.17 | 1.4.16 |
£ | £ |
Cash and cash equivalents | 1,553,706 | 263,172 |
Year ended 31 March 2016 |
31.3.16 | 1.4.15 |
£ | £ |
Cash and cash equivalents | 263,172 | 768,839 |
AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2017 |
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1. | STATUTORY INFORMATION |
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Agema Engineering Limited is a
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company's registered number and registered office address can be found on the Company Information page. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
Agema Engineering Limited is a private company limited by shares incorporated in England, United Kingdom. |
The address of the registered office is given in the company information on page 1 of these financial statements. |
The nature of the company's operations and principal activities are that of design, tool manufacture and |
moulding of plastic products. |
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The financial statements have been prepared in accordance with applicable accounting standards including |
Financial Reporting Standard 102, The Financial Reporting Standard Applicable in the UK and Republic of |
Ireland (FRS 102) and the Companies Act 2006. The financial statements have been prepared on a going |
concern basis under the historical cost convention, modified where applicable to include certain items at fair |
value. The financial statements are presented in sterling which is the functional currency of the company and |
rounded to the nearest £. |
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The significant accounting policies applied in the preparation of these financial statements are set out below. |
These policies have been consistently applied to all years presented unless otherwise stated. |
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Turnover and other income |
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade |
discounts. The policies adopted for the recognition of turnover are as follows: |
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Sale of general goods and parts |
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Turnover from the sale of goods and parts is recognised when significant risks and rewards of ownership of the |
goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the |
economic benefits associated with the transaction will flow to the company and the costs incurred or to be |
incurred in respect of the transaction can be measured reliably. This is usually on delivery of the goods and |
parts to the customer. |
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Sale of tooling |
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When the outcome of a tooling contract can be estimated reliably and the company has performed sufficient |
work to obtain rights to consideration under the contract, tooling costs and turnover are recognised by reference |
to the stage of completion at the balance sheet date. Stage of completion is measured by reference to the |
contractual obligations met and the rights to consideration obtained on the contract. |
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Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in |
which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will |
be recoverable. |
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When it is probable that contract costs will exceed the total contract turnover, the expected loss is recognised as |
an expense immediately, with a corresponding provision. |
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Interest receivable |
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Interest income is recognised using the effective interest method. |
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Rental income |
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Rental income is recognised when the company obtains the rights to consideration under the rental agreement. |
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Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful |
life. |
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Freehold property | - 2% on cost |
Plant, machinery etc | - 33% on cost, 25% on reducing balance, and 15% on reducing balance |
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From the 1st April 2016 the company has started to depreciate Freehold property at 2% on cost per annum. |
AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2017 |
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2. | ACCOUNTING POLICIES - continued |
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Stocks |
Stocks 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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Stock is stated at the lower of cost and net realisable value. The cost of finished goods and work in progress |
comprises of raw materials, direct labour, other direct costs and related production overheads (based on normal |
operating capacity). It excludes borrowing costs. Net realisable value is the estimated selling price in the ordinary |
course of business, less applicable variable selling expenses. |
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Taxation |
Taxation for the year 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 taxation |
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 year 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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Foreign currencies |
Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot |
exchange rate between the functional currency and the foreign currency at the date of the transaction. |
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Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using |
the closing rate. |
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Leases |
Assets acquired under finance leases are capitalised and depreciated over the shorter of the lease term and the |
expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the |
reduction of the outstanding lease liability using the effective interest method. The related obligations, net of |
future finance charges, are included in creditors. |
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Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight |
line basis over the period of the lease. |
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Employee benefits |
When employees have rendered service to the company, short-term employee benefits to which the employees |
are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. |
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The company operates a defined contribution pension plan for the benefit of its employees. Contributions are |
expensed as they become payable. |
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Debtors and creditors receivable / payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at |
transaction price. Any losses arising from impairment are recognised in the profit and loss account in other |
administrative expenses. |
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Loans and borrowings |
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, |
they are measured at amortised cost using the effective interest rate method, less impairment. If an |
arrangement constitutes a finance transaction it is measured at present value. |
AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2017 |
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2. | ACCOUNTING POLICIES - continued |
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Impairment |
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each |
balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash |
generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its |
recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued |
amount where the impairment loss is a revaluation decrease. |
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Prior period adjustments |
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During the year to 31st March 2017 the company reviewed and updated the analysis of plant depreciation, |
energy costs and plant and machinery maintenance from administrative expenses to cost of sales which |
amounted to £1,023,041 in the current year and £924,273 in the year to 31st March 2016. On the Profit and Loss |
Account, this has had the effect of reducing both the 2017 and 2016 gross profit by the figure mentioned above |
and reduced the company gross profit margin from 36.4% to 30.4% in 2017 and 37.3% to 30.8% in 2016. This |
adjustment has had no effect on the Balance Sheet or reserves at 31st March 2017 as this was simply a Profit |
and Loss Account presentational adjustment. |
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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 class of business is given below: |
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2017 | 2016 |
£ | £ |
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An analysis of turnover by geographical market is given below: |
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2017 | 2016 |
£ | £ |
United Kingdom |
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Europe |
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4. | EMPLOYEES AND DIRECTORS |
2017 | 2016 |
£ | £ |
Wages and salaries |
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Social security costs |
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Other pension costs |
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The average monthly number of employees during the year was as follows: |
2017 | 2016 |
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Admin | 12 | 12 |
Production | 151 | 127 |
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2017 | 2016 |
£ | £ |
Directors' remuneration |
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Directors' pension contributions to money purchase schemes |
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AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2017 |
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4. | EMPLOYEES AND DIRECTORS - continued |
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The number of directors to whom retirement benefits were accruing was as follows: |
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Money purchase schemes |
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5. | OPERATING PROFIT |
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The operating profit is stated after charging/(crediting): |
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2017 | 2016 |
£ | £ |
Hire of plant and machinery |
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Depreciation - owned assets |
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Depreciation - assets on hire purchase contracts |
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Profit on disposal of fixed assets |
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( |
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Auditors' remuneration |
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Foreign exchange differences |
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6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2017 | 2016 |
£ | £ |
Bank interest |
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Bank loan interest |
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Hire purchase interest |
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7. | TAXATION |
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Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2017 | 2016 |
£ | £ |
Current tax: |
UK corporation tax |
|
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Adjustment earlier years | ( |
) | ( |
) |
Total current tax |
|
|
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Deferred tax | ( |
) |
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Tax on profit |
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UK corporation tax has been charged at 20% . |
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Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is |
explained below: |
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2017 | 2016 |
£ | £ |
Profit before tax |
|
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Profit multiplied by the standard rate of corporation tax in the UK of
(2016 - |
|
|
|
Effects of: |
Adjustments to tax charge in respect of previous periods | ( |
) | ( |
) |
|
Effect of changes of tax rate on deferred tax opening position | (14,979 | ) | (11,195 | ) |
Total tax charge | 525,395 | 534,065 |
AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2017 |
|
7. | TAXATION - continued |
|
Deferred tax: |
|
Deferred tax included in the balance sheet is as follows: |
|
2017 | 2016 |
£ | £ |
|
Included in provisions for liabilities (note 17) | 291,077 | 301,432 |
|
Accelerated capital allowances | 291,077 | 301,432 |
|
The expectation is that £46,025 of this deferred tax liability will reverse in the next financial year. This consists of |
the tax on depreciation that will be charged in excess of capital allowances to be claimed in the year to 31st |
March 2018 on the specific assets on the balance sheet at 31st March 2017 that are eligible for capital |
allowances. |
|
8. | DIVIDENDS |
2017 | 2016 |
£ | £ |
Ordinary shares of £1.00 each |
Interim |
|
|
Ordinary A shares of £1.00 each |
Interim |
|
|
|
|
|
9. | TANGIBLE FIXED ASSETS |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST |
At 1 April 2016 |
|
|
|
Additions |
|
|
|
Reclassification/transfer |
|
( |
) |
|
At 31 March 2017 |
|
|
|
DEPRECIATION |
At 1 April 2016 |
|
|
|
Charge for year |
|
|
|
At 31 March 2017 |
|
|
|
NET BOOK VALUE |
At 31 March 2017 |
|
|
|
At 31 March 2016 |
|
|
|
AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2017 |
|
9. | TANGIBLE FIXED ASSETS - continued |
|
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2016 |
|
|
|
|
Additions |
|
|
|
|
At 31 March 2017 |
|
|
|
|
DEPRECIATION |
At 1 April 2016 |
|
|
|
|
Charge for year |
|
|
|
|
At 31 March 2017 |
|
|
|
|
NET BOOK VALUE |
At 31 March 2017 |
|
|
|
|
At 31 March 2016 |
|
|
|
|
|
Included in cost of land and buildings is freehold land of £ 927,500 (2016 - £ 707,500 ) which is not depreciated. |
|
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST |
At 1 April 2016 |
|
Transfer to ownership | (587,850 | ) |
At 31 March 2017 |
|
DEPRECIATION |
At 1 April 2016 |
|
Charge for year |
|
Transfer to ownership | (230,425 | ) |
At 31 March 2017 |
|
NET BOOK VALUE |
At 31 March 2017 |
|
At 31 March 2016 |
|
|
10. | STOCKS |
2017 | 2016 |
£ | £ |
Raw materials |
|
|
Finished goods |
|
|
1,041,292 | 874,720 |
Long term contract balances | - | 361,796 |
|
|
AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2017 |
|
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2017 | 2016 |
£ | £ |
Trade debtors |
|
|
Other debtors |
|
|
Tax |
|
|
Prepayments |
|
|
|
|
|
Trade debtors subject to invoice finance at the balance sheet date amount to £3,490,970 (2016 £2,981,322). |
|
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2017 | 2016 |
£ | £ |
Bank loans and overdrafts (see note 14) |
|
|
Hire purchase contracts (see note 15) |
|
|
Trade creditors |
|
|
Taxation |
|
|
PAYE | 89,202 | 66,924 |
VAT | 326,955 | 356,709 |
Other creditors |
|
|
Directors' current accounts | 739,368 | 15,927 |
Accrued expenses |
|
|
|
|
|
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2017 | 2016 |
£ | £ |
Bank loans (see note 14) |
|
|
Hire purchase contracts (see note 15) |
|
|
|
|
|
14. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
2017 | 2016 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
|
|
|
Amounts falling due between one and two years: |
Bank loans |
|
|
|
Amounts falling due between two and five years: |
Bank loans |
|
|
|
Amounts falling due in more than five years: |
|
Repayable by instalments |
Bank loans | 432,592 | 517,635 |
|
The bank loans are repayable over various terms of between 120 and 180 months and at the balance sheet date |
had remaining terms of between 90 and 131 months. The bank loans bear interest at either 3.47% or 3.84% over |
the Bank of England base rate |
AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2017 |
|
15. | LEASING AGREEMENTS |
|
Minimum lease payments fall due as follows: |
|
Hire purchase contracts |
2017 | 2016 |
£ | £ |
Net obligations repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Non-cancellable operating |
leases |
2017 | 2016 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
In more than five years |
|
|
|
|
|
In the year to 31st March 2017, operating lease payments of £73,282 were recognised as an expense (2016 |
£71,592). |
|
16. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
2017 | 2016 |
£ | £ |
Bank loans |
|
|
Hire purchase contracts | 505,114 | 987,122 |
|
|
|
Barclays Bank PLC - Corporate Mortgage, Debenture, Fixed and Floating Charge & Legal Charge. |
|
There is a fixed and floating charge over the assets of the company including a charge over specific assets |
including the freehold property at 3 Stephenson Road and 23 Bayton Road in Exhall Coventry. |
|
17. | PROVISIONS FOR LIABILITIES |
2017 | 2016 |
£ | £ |
Deferred tax | 284,574 | 301,432 |
|
Deferred |
tax |
£ |
Balance at 1 April 2016 |
|
Credit to Income Statement during year | ( |
) |
Balance at 31 March 2017 |
|
|
Deferred tax consists entirely of accelerated capital allowances. |
AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2017 |
|
18. | CALLED UP SHARE CAPITAL |
|
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2017 | 2016 |
value: | £ | £ |
|
Ordinary | £1.00 | 100 | 100 |
|
Ordinary A | £1.00 | 10 | 10 |
110 | 110 |
|
The Ordinary shares and Ordinary A shares have differing dividend rights but otherwise rank pari-passu in all |
other respects. Both the Ordinary and the Ordinary A shares carry full voting rights and capital participation on |
sale or winding up of the company. There are no restrictions or specific preferences on either the Ordinary or the |
Ordinary A shares. |
|
19. | RESERVES |
Retained |
earnings |
£ |
|
At 1 April 2016 |
|
Profit for the year |
|
Dividends | ( |
) |
At 31 March 2017 |
|
|
The Retained earnings reserve represents cumulative profits and losses net of dividends and other adjustments. |
|
20. | PENSION COMMITMENTS |
|
The company operates a defined contribution pension plan for its employees. The amount recognised as an |
expense in the period was £25,263 (2016 £14,000). |
|
21. | CAPITAL COMMITMENTS |
2017 | 2016 |
£ | £ |
Contracted but not provided for in the |
financial statements |
|
|
|
22. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
|
The following advances and credits to a director subsisted during the years ended 31 March 2017 and |
31 March 2016: |
|
2017 | 2016 |
£ | £ |
|
Balance outstanding at start of year |
|
|
Amounts advanced |
|
|
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
|
|
|
Interest has been charged on these loans at a rate of 3.00% (2016 3.00%) and no conditions or guarantees |
have been given. |
|
23. | RELATED PARTY DISCLOSURES |
AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2017 |
|
23. | RELATED PARTY DISCLOSURES - continued |
|
|
2017 | 2016 |
£ | £ |
Purchases |
|
|
Amount due from related party |
|
|
Amount due to related party |
|
|
|
|
2017 | 2016 |
£ | £ |
Purchases |
|
|
Interest received | 4,106 | 20,962 |
Rent charged | 59,603 | 60,000 |
Amount due to related party |
|
|
|
|
2017 | 2016 |
£ | £ |
Amount due from related party |
|
|
|
24. | POST BALANCE SHEET EVENTS |
|
On the 1st April 2017 Agema Engineering Limited became a 100% subsidiary of Agema Limited. |
|
25. | ULTIMATE CONTROLLING PARTY |
|
Throughout the period under review, the ultimate controlling party was Mr J F E Stringer by virtue of his majority |
shareholding in Agema Engineering Limited. Subsequent to the group reorganisation on 1st April 2017, Mr J F E |
Stringer is still the ultimate controlling party by virtue of his shareholding in Agema Limited. |