REGISTERED NUMBER: |
ADVANCED MAINTENANCE SUPPLIES LIMITED |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 December 2022 |
REGISTERED NUMBER: |
ADVANCED MAINTENANCE SUPPLIES LIMITED |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 December 2022 |
ADVANCED MAINTENANCE SUPPLIES LIMITED (REGISTERED NUMBER: 03644623) |
Contents of the Financial Statements |
for the year ended 31 December 2022 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 | to | 4 |
Report of the Independent Auditors | 5 | to | 7 |
Statement of Comprehensive Income | 8 |
Statement of Financial Position | 9 |
Statement of Changes in Equity | 10 |
Notes to the Financial Statements | 11 | to | 20 |
ADVANCED MAINTENANCE SUPPLIES LIMITED |
Company Information |
for the year ended 31 December 2022 |
Directors: |
Secretary: |
Registered office: |
Registered number: |
Auditors: |
5-6 Greenfield Crescent |
Edgbaston |
Birmingham |
West Midlands |
B15 3BE |
Bankers: |
79-83 Colmore Row |
Birmingham |
B3 2BA |
ADVANCED MAINTENANCE SUPPLIES LIMITED (REGISTERED NUMBER: 03644623) |
Strategic Report |
for the year ended 31 December 2022 |
The directors present their strategic report for the year ended 31 December 2022. |
Review of business |
The Company's key performance indicators are turnover, which was £32,080,641 for 31 December 2022 (31 December 2021 - £25,913,236), and profit before taxation which was £2,826,193 for 31 December 2022 (31 December 2021 - £2,532,376). The Directors are satisfied with the company's performance and except the performance seen during the year to be maintained. |
The success of the business is effected by the economic cycles, particularly in the engineering and transport infrastructure sectors in which the company's customers operate. This risk is partially mitigated by no single customer representing a significant proportion of turnover. Pressures arising from the general economic situation together with the highly competitive market in which the company operates, results in the constant pressure on margins. This risk is mitigated by the high levels of customer service provided. |
Financial risk management objectives and policies |
The Company's principal financial instruments comprise bank balances, trade creditors and trade debtors. The main purpose of these instruments is to raise funds for the Company's operations and to finance the Company's operations. |
During the year the Company has been exposed to credit risk and liquidity risk. The Directors do not consider any other risks attaching to the use of financial instruments to be material to an assessment of its financial position. |
Credit risk |
The Company's principal financial assets are cash at bank and trade debtors, which represent the most significant exposure to credit risk in relation to financial assets. Credit risk is managed by continually evaluating the creditworthiness of individual customers. Trade debtors are stated net provision for specific doubtful debts, which are based on the circumstances of individual customers in the context of the prevailing economic climate. |
The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. |
The Company has no significant concentration of credit risk, with exposure spread over a large number of customers. |
Liquidity risk |
The Company has a policy of continuous assessment of its funding requirements and arranges financing with regard to its operational needs. The Directors are confident that the company has adequate financial resources for the foreseeable future. |
Payment of creditors |
The Company's policy in relation to the payment of suppliers is to seek the best possible terms from suppliers appropriate to its business and in placing orders gives consideration to the quality, price and terms of payment which will be agreed with suppliers when the details of transactions are settled. The Company will continue to honour its contractual obligations and pay creditors on the dates agreed in contacts and purchase orders. |
On behalf of the board: |
ADVANCED MAINTENANCE SUPPLIES LIMITED (REGISTERED NUMBER: 03644623) |
Report of the Directors |
for the year ended 31 December 2022 |
The directors present their report with the financial statements of the company for the year ended 31 December 2022. |
Principal activity |
The principal activity of the company in the year under review was that of the sale of bearings and power transmission parts. |
Dividends |
The profit for the year, after taxation, amounted to £2,274,193 (2021 - £2,070,376). |
Dividends of £2,070,000 were paid during the year (2021 - £Nil). The directors do not propose the payment of a final dividend. |
Directors |
The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
Going concern |
After making enquiries and preparing integrated profit and loss and cash flow forecasts for the wider Hayley Group for one year from the date the financial statements are signed, the Directors have formed a judgement that, as at the date of approving the financial statements, there is a reasonable expectation that the Company, with any required support from the wider Group, has adequate resources to continue in existence for the foreseeable future. The preparation of the forecasts has been produced using known and unknown certainties, as described in more detail below. |
Management have continued to implement logistical and organisational changes to underpin the Group's strengths and maintain its resilience to being negatively affected from changing global and local events and economic conditions, with the key focus being protecting all personnel, minimising the impact on critical work streams and ensuring business continuity. |
For these reasons the generation of sufficient operating cash flows remain a potential risk, however management believe the Group and company will generate sufficient working capital and cash flows to continue in operational existence for the foreseeable future. |
In making this assessment the Board of Directors has continued to regularly undertake a thorough review of the Hayley group's budgets and forecasts and has produced detailed and realistic cash flow projections based on the group's existing significant cash resources and an unused invoice discounting facility of £12m. |
These cash flow projections, when considered in conjunction with the group's significant existing cash balances and available facilities, demonstrate that the Hayley Group has sufficient working capital for the foreseeable future. In light of the assessment and sensitivities prepared, the directors remain of the view that the forecast is achievable. |
For the reasons and assumptions used in the cash flow projections the directors are of the opinion that the headroom within the forecast should be sufficient to enable the group and company to operate and meet its liabilities as they fall due for payment throughout the year. The UK parent company, Hayley Group Holding Limited has confirmed that it will draw on its resources to support the company and enable it to continue in operation and meet its liabilities as they fall due for at least a year from the date of approval of these financial statements, and the financial statements have accordingly been prepared on a going concern basis. |
Matters covered in strategic report |
The business review, principal risks and uncertainties and financial risk management objectives and policies have been included in the strategic report. |
ADVANCED MAINTENANCE SUPPLIES LIMITED (REGISTERED NUMBER: 03644623) |
Report of the Directors |
for the year ended 31 December 2022 |
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. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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. |
Auditors |
The auditors, Haines Watts Birmingham LLP, are deemed to be reappointed under Section 487 (2) of the Companies Act 2006. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
Advanced Maintenance Supplies Limited |
Opinion |
We have audited the financial statements of Advanced Maintenance Supplies Limited (the 'company') for the year ended 31 December 2022 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2022 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. |
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. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
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. |
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. |
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. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
. |
Report of the Independent Auditors to the Members of |
Advanced Maintenance Supplies Limited |
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. |
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. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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. |
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. |
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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We obtained an understanding of the legal and regulatory framework applicable to both the company itself and the industry in which it operates. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience and through discussion with the directors and other management. The most significant were identified as the Companies Act 2006, UK GAAP (FRS102) and relevant tax legislation. |
We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statements. Our audit procedures included, but were not limited to: |
- making enquires of directors and management as to where they consider there to be a susceptibility to fraud and whether they have any knowledge or suspicion of fraud; |
- obtaining an understanding of the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; |
- assessing the design effectiveness of the controls in place to prevent and detect fraud; |
- assessing the risk of management override including identifying and testing journal entries; |
- challenging the assumptions and judgements made by management in its significant accounting estimates. |
Whilst our audit did not identify any significant matters relating to the detection of irregularities including fraud, and despite the audit being planned and conducted in accordance with ISAs (UK), there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity would likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls. |
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. |
Report of the Independent Auditors to the Members of |
Advanced Maintenance Supplies Limited |
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. |
for and on behalf of |
5-6 Greenfield Crescent |
Edgbaston |
Birmingham |
West Midlands |
B15 3BE |
ADVANCED MAINTENANCE SUPPLIES LIMITED (REGISTERED NUMBER: 03644623) |
Statement of Comprehensive |
Income |
for the year ended 31 December 2022 |
2022 | 2021 |
Notes | £ | £ |
Turnover | 4 |
Cost of sales | ( |
) | ( |
) |
Gross profit |
Administrative expenses | ( |
) | ( |
) |
2,826,193 | 2,521,276 |
Other operating income | 5 |
Operating profit and |
Profit before taxation |
Tax on profit | 8 | ( |
) | ( |
) |
Profit for the financial year |
Other comprehensive income | - | - |
Total comprehensive income for the year |
ADVANCED MAINTENANCE SUPPLIES LIMITED (REGISTERED NUMBER: 03644623) |
Statement of Financial Position |
31 December 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 10 |
Current assets |
Stocks | 11 |
Debtors | 12 |
Cash at bank |
Creditors |
Amounts falling due within one year | 13 |
Net current assets |
Total assets less current liabilities |
Capital and reserves |
Called up share capital | 16 |
Retained earnings | 17 |
Shareholders' funds |
The financial statements were approved by the Board of Directors and authorised for issue on |
ADVANCED MAINTENANCE SUPPLIES LIMITED (REGISTERED NUMBER: 03644623) |
Statement of Changes in Equity |
for the year ended 31 December 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2021 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
ADVANCED MAINTENANCE SUPPLIES LIMITED (REGISTERED NUMBER: 03644623) |
Notes to the Financial Statements |
for the year ended 31 December 2022 |
1. | Statutory information |
Advanced Maintenance Supplies Limited is a |
2. | Accounting policies |
Basis of preparing the financial statements |
The preparation of financial statements in compliance with FRS102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3). |
The following principal accounting policies have been applied consistently: |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 3.17(d); |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A; |
• | the requirement of paragraph 33.7. |
This information is included in the consolidated financial statements of Hayley Group Holding Limited as at 31 December 2022 and these financial statements may be obtained from its registered office or directly from Companies House. |
ADVANCED MAINTENANCE SUPPLIES LIMITED (REGISTERED NUMBER: 03644623) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2022 |
2. | Accounting policies - continued |
Going concern |
After making enquiries and preparing integrated profit and loss and cash flow forecasts for the wider Hayley Group for one year from the date the financial statements are signed, the Directors have formed a judgement that, as at the date of approving the financial statements, there is a reasonable expectation that the Company, with any required support from the wider Group, has adequate resources to continue in existence for the foreseeable future. The preparation of the forecasts has been produced using known and unknown certainties, as described in more detail below. |
Management have continued to implement logistical and organisational changes to underpin the Group's strengths and maintain its resilience to being negatively affected from changing global and local events and economic conditions, with the key focus being protecting all personnel, minimising the impact on critical work streams and ensuring business continuity. |
For these reasons the generation of sufficient operating cash flows remain a potential risk, however management believe the Group and company will generate sufficient working capital and cash flows to continue in operational existence for the foreseeable future. |
In making this assessment the Board of Directors has continued to regularly undertake a thorough review of the Hayley group's budgets and forecasts and has produced detailed and realistic cash flow projections based on the group's existing significant cash resources and an unused invoice discounting facility of £12m. |
These cash flow projections, when considered in conjunction with the group's significant existing cash balances and available facilities, demonstrate that the Hayley Group has sufficient working capital for the foreseeable future. In light of the assessment and sensitivities prepared, the directors remain of the view that the forecast is achievable. |
For the reasons and assumptions used in the cash flow projections the directors are of the opinion that the headroom within the forecast should be sufficient to enable the group and company to operate and meet its liabilities as they fall due for payment throughout the year. The UK parent company, Hayley Group Holding Limited has confirmed that it will draw on its resources to support the company and enable it to continue in operation and meet its liabilities as they fall due for at least a year from the date of approval of these financial statements, and the financial statements have accordingly been prepared on a going concern basis. |
Revenue |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured s the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
Sale of goods |
Revenue from the sale of goods is recognised when all of the following conditions are satisfied; |
- the Company has transferred the significant risks and rewards of ownership to the buyer; |
- the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
- the amount of revenue can be measured reliably; |
- it is probable that the Company will receive the consideration due under the transaction; and |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
ADVANCED MAINTENANCE SUPPLIES LIMITED (REGISTERED NUMBER: 03644623) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2022 |
2. | Accounting policies - continued |
Tangible fixed assets |
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charge to profit or loss during the period in which they are incurred. |
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives and is provided on the following basis: |
Long-term leasehold property | - straight line over the life of the lease |
Motor vehicles | - 25% straight line |
Fixtures and equipment | - 20% reducing balance |
Plant and machinery | - 20% reducing balance |
Stocks |
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. |
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss. |
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. |
Current or deferred taxation assets and liabilities are not discounted. |
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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
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. |
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. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
ADVANCED MAINTENANCE SUPPLIES LIMITED (REGISTERED NUMBER: 03644623) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2022 |
2. | Accounting policies - continued |
Operating leases: the company as a lessee |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term. |
Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
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 the transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
Holiday pay accrual |
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Statement of Financial Position date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement accrued at the Statement of Financial Position date. |
Financial instruments |
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
ADVANCED MAINTENANCE SUPPLIES LIMITED (REGISTERED NUMBER: 03644623) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2022 |
3. | Critical accounting judgements and key sources of estimation uncertainty |
Preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets, liabilities, revenues and expenses. |
The estimates and associated assumptions are based on historic experiences and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities and are not readily apparent from other sources. Actual results may differ from these estimates. The judgements, estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are: |
Trade debtors |
Trade debtors consist of amounts due from customers. An allowance for doubtful debts is maintained for estimated losses resulting from the inability of the Company's customers to make required payments. The allowance is based on the Company's regular assessment of the credit worthiness and financial conditions of customers. |
Stock |
Certain factors could affect the realisable value of the Company's stocks, including customer demand and market conditions. The Company considers usage, anticipated sale price, effect of new product introductions, product obsolescence and other factors when evaluating the value. |
Going concern |
When making the assessment upon the Company's ability to continue as a going concern, the Directors consider various factors, including current trading and market conditions, the expectations of future trading and the ability of the company to operate within available funding facilities, contingent liabilities, and any other relevant facts or circumstances. This assessment covers at least twelve months following the date of approval of the financial statements. Note 2 contains more information in respect of this. |
4. | 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: |
2022 | 2021 |
£ | £ |
All turnover arose within the United Kingdom. |
5. | Other operating income |
2022 | 2021 |
£ | £ |
Furlough income |
6. | Employees and directors |
2022 | 2021 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
ADVANCED MAINTENANCE SUPPLIES LIMITED (REGISTERED NUMBER: 03644623) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2022 |
6. | Employees and directors - continued |
The average number of employees during the year was as follows: |
2022 | 2021 |
Employee not including Directors | 85 | 81 |
Directors | 2 | 2 |
2022 | 2021 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2022 | 2021 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
7. | Operating profit |
The operating profit is stated after charging/(crediting): |
2022 | 2021 |
£ | £ |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
Auditors' remuneration for non audit work |
Exchange rate differences |
Operating leases |
8. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax: |
Timing differences | 27,000 | (20,000 | ) |
Effect of changes in tax rates | - | (18,000 | ) |
Total deferred tax | ( |
) |
Tax on profit |
UK corporation tax has been charged at 19% (2021 - 19%). |
ADVANCED MAINTENANCE SUPPLIES LIMITED (REGISTERED NUMBER: 03644623) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2022 |
8. | Taxation - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2022 | 2021 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2021 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Effects of changes to deferred tax rate | - | (18,000 | ) |
Other timing differences | (286 | ) | 1,295 |
Total tax charge | 552,000 | 462,000 |
Factors the may effect future tax charges |
The main rate of corporation tax in force at the Statement of Financial Position date was 19%. A resolution to amend the corporation tax rate from 1 April 2023 was passed on 3 March 2021, at which point the main rate of corporation tax will increase to 25%. A small profits rate of 19% for companies with profits not exceeding £50k will take effect from the same date. |
The deferred taxation balance has therefore been calculated at 25%, being the rate substantively enacted at the Statement of Financial Position date. |
9. | Dividends |
2022 | 2021 |
£ | £ |
Ordinary shares of £1 each |
Final |
10. | Tangible fixed assets |
Fixtures |
Long | Plant and | and | Motor |
leasehold | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
Cost |
At 1 January 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2022 |
Depreciation |
At 1 January 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2022 |
Net book value |
At 31 December 2022 |
At 31 December 2021 |
ADVANCED MAINTENANCE SUPPLIES LIMITED (REGISTERED NUMBER: 03644623) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2022 |
11. | Stocks |
2022 | 2021 |
£ | £ |
Finished goods |
An impairment loss of £26,218 (2021 - £22,498 - loss) was recognised in the statement of Comprehensive Income during the year due to slow-moving and obsolete stock. |
12. | Debtors: amounts falling due within one year |
2022 | 2021 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Amounts owed by related |
parties | - | 1,294 |
Corporation Tax |
Deferred tax asset |
Prepayments |
Deferred tax asset |
2022 | 2021 |
£ | £ |
Accelerated capital allowances |
Other timing differences | 4,622 | 4,115 |
An impairment gain of £Nil (2021 - gain £10,741) was recognised in the Statement of Comprehensive Income during the year in respect of bad and doubtful debts. |
Amounts owed by group undertakings are unsecured with no set repayment dates and do not bear interest. All transactions with group undertakings are at arms length on normal business terms. |
13. | Creditors: amounts falling due within one year |
2022 | 2021 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Social security and other taxes |
VAT | 825,586 | 637,816 |
Other creditors |
Amounts owed to related parties | 26,712 | 17,158 |
Accruals and deferred income |
Amounts owed to group undertakings are unsecured with no set repayment dates and do not bear interest. All transactions with group undertakings are at arms length on normal business terms. |
ADVANCED MAINTENANCE SUPPLIES LIMITED (REGISTERED NUMBER: 03644623) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2022 |
14. | Leasing agreements |
At 31 December 2022 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods: |
2022 | 2021 |
£ | £ |
Land and buildings |
Not later than 1 year | 100,330 | 99,552 |
Later than 1 year and not later than 5 years | 119,274 | 219,604 |
219,604 | 319,156 |
2022 | 2021 |
£ | £ |
Other |
Not later than 1 year | 161,580 | 87,260 |
Later than 1 year and not later than 5 years | 237,394 | 117,028 |
398,974 | 204,288 |
15. | Deferred tax |
£ |
Balance at 1 January 2022 | ( |
) |
Charge to Statement of Comprehensive Income during year |
Balance at 31 December 2022 | ( |
) |
16. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
17. | Reserves |
Retained |
earnings |
£ |
At 1 January 2022 |
Profit for the year |
Dividends | ( |
) |
At 31 December 2022 |
Profit and loss account |
Profit and loss account includes all current and prior period retained profits and losses. |
18. | Contingent liabilities |
The Royal Bank of Scotland hold an unlimited multi-party guarantee, dated 10 February 2010, executed by Hayley Group Limited, Hayley Holdings, Bearing Man Limited and Advanced Maintenance Supplies Limited over borrowings of £Nil (2021: £Nil). |
ADVANCED MAINTENANCE SUPPLIES LIMITED (REGISTERED NUMBER: 03644623) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2022 |
19. | Pension commitments |
The Company operates a defined benefit contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £129,278 (2021 - £122,916). An amount of £11,883 (2021 - £10,002) remains payable at the year end and is included within other creditors. |
20. | Related party disclosures |
The company has taken advantage of the reduced disclosure exemptions permitted by FRS102 as detailed in note 2 and therefore, has not disclosed transactions with Hayley Group Limited, on the grounds that its share capital is 100% owned by Hayley Group Limited. |
During the year the Company made £nil of sales (2021 - £nil) to, and £198,498 of purchases (2021 - £223,484) from, companies controlled by Descours & Cabaud SA. |
At the year ended 31 December 2022, the company owed £26,712 (2021 - £15,864) to companies controlled by Descours & Cabaud SA. |
21. | Ultimate controlling party |
The immediate parent company is Hayley Group Limited, a company registered in England and Wales. Hayley Group Limited is 100% owned by Hayley Group Holding Limited, a company registered in England and Wales. |
The ultimate parent company, by virtue of its 100% ownership of Hayley Group Holding Limited, is Descours & Cabaud SA, a company registered in France. |
The results of Hayley Group Limited and its subsidiaries are included in the consolidated accounts of Hayley Group Holding Limited and the consolidated accounts of Descours & Cabaud SA. |
There is no ultimate controlling party. |