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 2021 |
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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 2021 |
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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 2021 |
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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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Statement of 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 2021 |
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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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Chartered Accountants (Statutory Auditor) |
Sovereign House |
12 Warwick Street |
Coventry |
West Midlands |
CV5 6ET |
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BANKERS: |
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Leicester |
LE87 2BB |
AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2021 |
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The directors present their strategic report for the year ended 31 March 2021. |
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REVIEW OF BUSINESS |
Turnover for the year decreased by 12.7% from £12.8m to £11.1m (2020 decrease of 24.4%). |
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Sales of moulded products declined by 16.5% to £9.2m with tooling sales remaining broadly flat across the two years. |
The reduction in turnover can be attributed to the effects of the Covid 19 pandemic which swept across the world during 2020. The pandemic triggered a significant downturn in markets globally and these challenging market conditions continued into 2021. This resulted in reduced product volumes from our customers and major disruptions to supply chains and production capability. A series of national lockdowns and subsequent suspension of manufacturing led the company to access certain Government schemes to mitigate the operating cost and cashflow impact of the pandemic. |
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Although uncertainty regarding the future trading relationship with the EU post Brexit was a negative factor during the year, export sales grew by 16% to £693k due primarily to intercompany sales to our new manufacturing company in the Czech Republic. |
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Gross profit margins have reduced from 22.2% in 2020 to 19.7% in 2021 as a result of carrying excess labour during the pandemic. Operating profits however have increased from £473k to £747k due to a reduction in overhead costs and Government support under the coronavirus job retention scheme. |
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The company broadly maintained it's net asset value, with shareholders' funds increasing by £411k, from £12.6m to £13.0m. |
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The directors are pleased to report that following the significant investment over the past few years in establishing a new manufacturing facility in the Czech Republic, Agema Europe s.r.o. is now fully operational and commenced production in June 2021. The business comprises a new purpose built factory and state of the art manufacturing equipment and is well placed to service existing and new customers in mainland Europe. |
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Post April 2021 automotive manufacturers have been particularly hard hit by the global shortage of semi-conductors which form an integral component in the manufacture of motor vehicles. The company's operating results in 2021/22 will depend on global economic conditions and the continued impact of Covid 19. |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The company's customer base is concentrated within the automotive industry, and consequently, as demonstrated by experience over the last few years, 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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Despite recent events, the impact of the UK's exit from the EU still provides a degree of uncertainty. However, this may present opportunities as well as threats, and our new manufacturing facility within the EU should leave the company well placed to take advantage of them when they do. |
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Currency fluctuations can have a significant impact on costs. 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 movements in sterling against other major international currencies cannot be ruled out, the impact on profitability of any actual or proposed increased costs will continue to be controlled as far as possible by exchange risk management and robust purchasing. |
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ON BEHALF OF THE BOARD: |
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29 September 2021 |
AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2021 |
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The directors present their report with the financial statements of the company for the year ended 31 March 2021. |
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DIVIDENDS |
The directors recommended that no dividends be paid during the year. |
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There have been no dividend's since the year end up to the date of this report. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2020 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; |
- | 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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AUDITORS |
The auditors, Burrows Scarborough, is deemed to be reappointed under section 487(2) of the Companies Act 2006. |
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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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Opinion |
We have audited the financial statements of Agema Engineering Limited (the 'company') for the year ended 31 March 2021 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 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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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. |
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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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
AGEMA ENGINEERING LIMITED |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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. |
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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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We have assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur, as low risk. Through discussions with management and review of our documented understanding of the company, we have obtained an understanding of: |
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- The legal and regulatory framework applicable to the company and how the company is complying with that framework. |
- The company's policies and procedures on compliance with laws and regulations, including documentation of any instances of noncompliance. |
- The company's policies and procedures on fraud risks, including knowledge of any actual, suspected or alleged fraud. |
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We have identified that non-compliance with the health and safety legislation is of significance in the context of the company. |
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Our approach to responding to these risks was as follows: |
- Enquiry of management around actual and potential litigation and claims, including health and safety. |
- Enquiry of company's staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations. |
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. |
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness. |
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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 Auditor) |
Sovereign House |
12 Warwick Street |
Coventry |
West Midlands |
CV5 6ET |
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AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
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STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 31 MARCH 2021 |
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31.3.21 | 31.3.20 |
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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(84,233 | ) | 472,204 |
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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 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 2021 |
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31.3.21 | 31.3.20 |
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
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13 |
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PROVISIONS FOR LIABILITIES | 18 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 19 |
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Retained earnings | 20 |
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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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AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
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STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 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 31 March 2020 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31 March 2021 |
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AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
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CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2021 |
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31.3.21 | 31.3.20 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
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Interest paid | ( |
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Interest element of hire purchase payments
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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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Net cash from investing activities |
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Cash flows from financing activities |
Loan from other related parties |
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Loan repayments in year | ( |
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Loans to group companies | (1,645,880 | ) | (4,294,502 | ) |
Loans repaid from group companies | 168,857 | 50,810 |
Capital repayments in year | ( |
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Amount withdrawn by directors | (6,038 | ) | (214,646 | ) |
Loan repaid from related parties |
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New bank loans |
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Net cash from financing activities | ( |
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Increase/(decrease) in cash and cash equivalents |
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Cash and cash equivalents at beginning
of year |
2 |
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3,550,322 |
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Cash and cash equivalents at end of year | 2 | 179,721 | 22,268 |
AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
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NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2021 |
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1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.3.21 | 31.3.20 |
£ | £ |
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 | 239,851 | 210,824 |
1,301,805 | 1,169,012 |
Decrease/(increase) in stocks |
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Increase in trade and other debtors | ( |
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Increase in trade and other creditors |
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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 2021 |
31.3.21 | 1.4.20 |
£ | £ |
Cash and cash equivalents | 179,721 | 22,268 |
Year ended 31 March 2020 |
31.3.20 | 1.4.19 |
£ | £ |
Cash and cash equivalents | 22,268 | 3,550,322 |
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3. | ANALYSIS OF CHANGES IN NET DEBT |
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At 1.4.20 | Cash flow | At 31.3.21 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 22,268 | 157,453 | 179,721 |
22,268 |
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179,721 |
Debt |
Finance leases | (608,448 | ) | 223,082 | (385,366 | ) |
Debts falling due within 1 year | (93,635 | ) | (50,072 | ) | (143,707 | ) |
Debts falling due after 1 year | (551,959 | ) | (368,724 | ) | (920,683 | ) |
(1,254,042 | ) | (195,714 | ) | (1,449,756 | ) |
Total | (1,231,774 | ) | (38,261 | ) | (1,270,035 | ) |
AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2021 |
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1. | STATUTORY INFORMATION |
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Agema Engineering Limited is a
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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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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. |
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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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Preparation of consolidated financial statements |
The financial statements contain information about Agema Engineering Limited 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, Agema Limited, 21 Bayton Road Bayton Road Industrial Estate, Exhall, Coventry, England, CV7 9EL. |
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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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Critical accounting judgements and key sources of estimation uncertainty |
Many of the amounts included in the financial statements involve the use of judgement and/or estimation. These judgements and estimates are based on management's best knowledge of the relevant facts and circumstances, having regard to prior experience, but actual results may differ from the amounts included in the financial statements. Information about such judgements and estimation is contained in these accounting policies and/or the notes to the financial statements and the key areas are summarised below: |
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Judgements in applying accounting policies |
The main judgemental area in the financial statements is the recoverability of long-term contracts. |
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Sources of estimation uncertainty |
Depreciation rates are based on estimates of the useful lives and residual values of the assets involved (see the Tangible fixed assets accounting policy). |
Slow moving stock provisions are based on estimates of the likely recoverable amounts (see the Stocks accounting policy). |
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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 started to depreciate Freehold property at 2% on cost per annum. |
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The freehold land is not depreciated. |
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Government grants |
Revenue Government grants receivable, which relate to COVID related grants, are recognised in the period to which they relate. |
AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
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2. | ACCOUNTING POLICIES - continued |
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Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
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Stocks |
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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Turnover |
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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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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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. |
AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
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2. | ACCOUNTING POLICIES - continued |
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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. |
|
The company operates a defined contribution pension plan for the benefit of its employees. Contributions are expensed as they become payable. |
|
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. |
|
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. |
|
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. |
|
Sales invoice financing |
|
Amounts recoverable in respect of invoice discounting are separately disclosed as current assets. The management and collection of trade debtors remain within the company. |
|
3. | TURNOVER |
|
The turnover and profit before taxation are attributable to the one principal activity of the company. |
|
An analysis of turnover by class of business is given below: |
|
31.3.21 | 31.3.20 |
£ | £ |
|
|
|
|
|
|
|
|
|
|
|
AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
3. | TURNOVER - continued |
|
An analysis of turnover by geographical market is given below: |
|
31.3.21 | 31.3.20 |
£ | £ |
United Kingdom |
|
|
Europe |
|
|
|
|
|
4. | EMPLOYEES AND DIRECTORS |
31.3.21 | 31.3.20 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
31.3.21 | 31.3.20 |
|
Admin | 20 | 23 |
Production | 129 | 138 |
|
|
|
31.3.21 | 31.3.20 |
£ | £ |
Directors' remuneration |
|
|
|
5. | OPERATING PROFIT |
|
The operating profit is stated after charging/(crediting): |
|
31.3.21 | 31.3.20 |
£ | £ |
Hire of plant and machinery |
|
|
Depreciation - owned assets |
|
|
Depreciation - assets on hire purchase contracts |
|
|
Profit on disposal of fixed assets | ( |
) |
|
Auditors' remuneration |
|
|
Foreign exchange differences |
|
|
|
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.3.21 | 31.3.20 |
£ | £ |
Bank interest |
|
|
Bank loan interest |
|
|
Other loan interest |
|
|
Hire purchase interest |
|
|
|
|
AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
7. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.3.21 | 31.3.20 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
|
Deferred tax | ( |
) |
|
Tax on profit |
|
|
|
UK corporation tax has been charged at 19% (2020 - 19%). |
|
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is the same as the standard rate of corporation tax in the UK. |
|
31.3.21 | 31.3.20 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
(2020 - |
|
|
|
Effects of: |
Adjustments to tax charge in respect of previous periods |
|
|
Total tax charge | 96,325 | 49,811 |
|
Deferred tax: |
|
Deferred tax included in the balance sheet is as follows: |
|
2021 | 2020 |
£ | £ |
|
Included in provisions for liabilities (note 18) | 288,311 | 300,240 |
|
Accelerated capital allowances | 288,311 | 300,240 |
|
The expectation is that the deferred tax liability will increase by £12,357 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 2022 on the specific assets on the balance sheet at 31st March 2021 that are eligible for capital allowances. |
AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
8. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 April 2020 |
|
|
|
Additions |
|
|
|
Disposals |
|
( |
) |
|
At 31 March 2021 |
|
|
|
DEPRECIATION |
At 1 April 2020 |
|
|
|
Charge for year |
|
|
|
Eliminated on disposal |
|
( |
) |
|
At 31 March 2021 |
|
|
|
NET BOOK VALUE |
At 31 March 2021 |
|
|
|
At 31 March 2020 |
|
|
|
|
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 April 2020 |
|
|
|
Additions |
|
|
|
Disposals | ( |
) | ( |
) | ( |
) |
At 31 March 2021 |
|
|
|
DEPRECIATION |
At 1 April 2020 |
|
|
|
Charge for year |
|
|
|
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 March 2021 |
|
|
|
NET BOOK VALUE |
At 31 March 2021 |
|
|
|
At 31 March 2020 |
|
|
|
|
Included in cost of land and buildings is freehold land of £ 927,500 (2020 - £ 927,500 ) which is not depreciated. |
AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
8. | TANGIBLE FIXED ASSETS - continued |
|
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST |
At 1 April 2020 |
|
Disposals | ( |
) |
At 31 March 2021 |
|
DEPRECIATION |
At 1 April 2020 |
|
Charge for year |
|
At 31 March 2021 |
|
NET BOOK VALUE |
At 31 March 2021 |
|
At 31 March 2020 |
|
|
9. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 April 2020 |
|
Exchange differences |
|
At 31 March 2021 |
|
NET BOOK VALUE |
At 31 March 2021 |
|
At 31 March 2020 |
|
|
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
|
|
Registered office: Tovarni 1423/7, 76901, Holesov, Czech Republic |
Nature of business:
|
% |
Class of shares: | holding |
|
|
31.3.21 | 31.3.20 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year | ( |
) | ( |
) |
AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
10. | STOCKS |
31.3.21 | 31.3.20 |
£ | £ |
Raw materials |
|
|
Finished goods |
|
|
|
|
|
Stock included in the financial statements for the year ended 31st March 2020 amounting to £1,363,030 was expensed in the year to 31st March 2021. |
|
The replacement cost of stocks is not materially different from the value stated above. |
|
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.21 | 31.3.20 |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Other debtors |
|
|
Tax |
|
|
Prepayments and accrued income |
|
|
|
|
|
Trade debtors subject to invoice finance at the balance sheet date amount to £3,298,716 (2020 £2,877,693). |
|
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.21 | 31.3.20 |
£ | £ |
Bank loans and overdrafts (see note 14) |
|
|
Hire purchase contracts (see note 15) |
|
|
Trade creditors |
|
|
Taxation |
|
|
PAYE | 77,044 | 76,737 |
VAT | 399,109 | 261,389 |
Other creditors |
|
|
Amounts owed to related |
parties | - | 1,773,702 |
Directors' current accounts | - | 6,038 |
Accrued expenses |
|
|
|
|
|
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.3.21 | 31.3.20 |
£ | £ |
Bank loans (see note 14) |
|
|
Hire purchase contracts (see note 15) |
|
|
Amounts owed to related |
parties |
|
|
|
|
|
14. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
31.3.21 | 31.3.20 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
|
|
AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
14. | LOANS - continued |
31.3.21 | 31.3.20 |
£ | £ |
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 | 161,717 | 182,073 |
|
The bank loans are repayable over various terms of between 60 and 180 months and at the balance sheet date had remaining terms of between 38 and 82 months. The bank loans bear interest at either 3.00%, 3.47% or 3.84% over the Bank of England base rate. |
|
15. | LEASING AGREEMENTS |
|
Minimum lease payments fall due as follows: |
|
Hire purchase contracts |
31.3.21 | 31.3.20 |
£ | £ |
Net obligations repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Non-cancellable operating | leases |
31.3.21 | 31.3.20 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
In more than five years |
|
|
|
|
|
In the year to 31st March 2021, operating lease payments of £18,483 were recognised as an expense (2020 £16,997). |
|
16. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
31.3.21 | 31.3.20 |
£ | £ |
Bank loans |
|
|
Hire purchase contracts | 385,366 | 608,448 |
Barclays invoice finance | 335,381 | 313,851 |
|
|
|
Barclays Bank PLC hold a 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. |
|
A cross debenture exists with Agema Limited dated 3/12/2020 with Barclays bank. |
AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
17. | FINANCIAL INSTRUMENTS |
|
2021 | 2020 |
£ | £ |
Financial assets |
|
Financial assets that are debt instruments measured at amortised cost | 11,814,608 | 9,645,512 |
11,814,608 | 9,645,512 |
|
2021 | 2020 |
£ | £ |
Financial liabilities |
|
Financial liabilities measured at amortised cost | 8,956,883 | 8,156,312 |
8,956,883 | 8,156,312 |
|
Financial assets measured at amortised cost comprise of cash at bank and in hand, trade debtors, other debtors and amounts owed by group undertakings. |
|
Financial liabilities measured at amortised cost comprise of trade creditors, hire purchase contracts, bank loans and overdrafts, amounts owed to related parties, other creditors, directors' current accounts and accrued expenses. |
|
18. | PROVISIONS FOR LIABILITIES |
31.3.21 | 31.3.20 |
£ | £ |
Deferred tax | 288,309 | 300,238 |
|
Deferred |
tax |
£ |
Balance at 1 April 2020 |
|
Credit to Statement of Comprehensive Income during year | ( |
) |
Balance at 31 March 2021 |
|
|
Deferred tax consists entirely of accelerated capital allowances. |
|
19. | CALLED UP SHARE CAPITAL |
|
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.3.21 | 31.3.20 |
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. |
AGEMA ENGINEERING LIMITED (REGISTERED NUMBER: 02072649) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2021 |
|
20. | RESERVES |
Retained |
earnings |
£ |
|
At 1 April 2020 |
|
Profit for the year |
|
At 31 March 2021 |
|
|
Retained earnings |
This reserve records the distributable reserves of the company. |
|
21. | PENSION COMMITMENTS |
|
The company operates a defined contribution pension plan for its employees. The amount recognised as an expense in the period was £75,708 (2020 £79,011). £0 was outstanding to pension providers at 31st March 2021 (2020 £14,870). |
|
22. | ULTIMATE PARENT COMPANY |
|
Agema Limited (incorporated in United Kingdom ) is regarded by the directors as being the company's ultimate parent company. |
|
23. | RELATED PARTY DISCLOSURES |
|
|
31.3.21 | 31.3.20 |
£ | £ |
Interest paid | - | 9,942 |
Amount due to related party |
|
|
|
|
31.3.21 | 31.3.20 |
£ | £ |
Sales |
|
|
Purchases |
|
|
Amount due from related party |
|
|
Amount due to related party |
|
|
|
During the year, a total of key management personnel compensation of £
|
|
24. | ULTIMATE CONTROLLING PARTY |
|
The ultimate controlling parties are Mr J F E Stringer and Mr J Stringer by virtue of their shareholdings in Agema Limited. |
|
25. | GOVERNMENT GRANTS |
|
Revenue Government grants receivable of £830,707 (2020 £0), which relate to COVID related grants, are recognised in the year. |