Company Registration No. 03479383 (England and Wales)
AGM BATTERIES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2020
PAGES FOR FILING WITH REGISTRAR
AGM BATTERIES LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
4 - 12
AGM BATTERIES LIMITED
BALANCE SHEET
AS AT
30 JUNE 2020
30 June 2020
- 1 -
2020
2019
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
4
-
1,287,810
Tangible assets
5
-
1,307,303
-
2,595,113
Current assets
Stocks
-
22,916
Debtors
6
654,956
797,472
Cash at bank and in hand
136,460
206,530
791,416
1,026,918
Creditors: amounts falling due within one year
7
(747,489)
(1,359,292)
Net current assets/(liabilities)
43,927
(332,374)
Total assets less current liabilities
43,927
2,262,739
Creditors: amounts falling due after more than one year
8
-
(909,644)
Net assets
43,927
1,353,095
Capital and reserves
Called up share capital
7,064,000
7,064,000
Revaluation reserve
9
-
309,820
Profit and loss reserves
(7,020,073)
(6,020,725)
Total equity
43,927
1,353,095
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial period ended 30 June 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he member has not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
AGM BATTERIES LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 JUNE 2020
30 June 2020
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 30 November 2020 and are signed on its behalf by:
Mr K D Brundish
Director
Company Registration No. 03479383
AGM BATTERIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2020
- 3 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
As restated for the period ended 31 March 2019:
Balance at 1 April 2018
7,064,000
309,820
(5,845,456)
1,528,364
Year ended 31 March 2019:
Loss and total comprehensive income for the year
-
-
(175,269)
(175,269)
Balance at 31 March 2019
7,064,000
309,820
(6,020,725)
1,353,095
Period ended 30 June 2020:
Loss for the period
-
-
(999,348)
(999,348)
Other comprehensive income:
Revaluation of tangible fixed assets
-
(309,820)
-
(309,820)
Total comprehensive income for the period
-
(309,820)
(999,348)
(1,309,168)
Balance at 30 June 2020
7,064,000
-
(7,020,073)
43,927
AGM BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2020
- 4 -
1
Accounting policies
Company information
AGM Batteries Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Suite 1, 3rd Floor, 11-12 St James's Square, London, SW1Y 4LB.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
These accounts have been prepared on a going concern basis subject to the impact that the COVID 19 pandemic might have on the business which is unknown at this time.
true
The company has incurred a loss for the year of £999,348, but has net assets of £43,927 at the year end. The company continues to meet its day to day working capital requirements and has the provision of working capital facilities supported by the company’s parent company, AMTE Power Limited. The directors of that company have confirmed that they will continue to provide financial support to the company for the foreseeable future.
In light of the information currently available to them, the directors believe that the company's parent company will support it in providing adequate funds to meet its day to day obligations. On this basis, the directors consider it appropriate to prepare the financial statements on a going concern basis. Should the parent company not support the company, adjustments would be necessary to record the additional liabilities and write down the assets to their recoverable amounts. It is not practicable to quantify these adjustments.
1.3
Reporting period
The company changed its year end from 31 March to 30 June which has produced a 15 month accounting period. The end of the reporting period was changed to support key changes within the company. The comparative period is 12 months.
1.4
Turnover
Revenue is generated from the principle activities of the company and represents amounts (excluding VAT) earned in respect of products delivered and services rendered to customers net of trade discounts.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
AGM BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2020
1
Accounting policies
(Continued)
- 5 -
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that
it is probable will be
recover
ed
.
1.5
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Development Costs
over the life of the project
1.7
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
5-15 years straight line
Fixtures, fittings & equipment
10-20 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
During the year, the company revised its depreciation policies. This resulted in £635,293 less depreciation being recognised in relation to this change.
1.8
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
AGM BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2020
1
Accounting policies
(Continued)
- 6 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.10
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally 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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
AGM BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2020
1
Accounting policies
(Continued)
- 7 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.12
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
AGM BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2020
1
Accounting policies
(Continued)
- 8 -
1.14
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.17
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.18
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
AGM BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2020
- 9 -
2
Change in accounting policy
During the year the company has changed it accounting policies in relation to the capitalisation of development costs.
In the prior year, the company wrote off all development costs and related grants to the profit and loss account.
Following a review of this policy the company has restated the prior year financial statements as follows:
Capitalised development costs of £1,287,810 have been recorded in intangible assets. Grant income of £792,741 related to these costs have been deferred as part of loan term creditors. This change in policy has increased the profit and loss reserve by £495,069.
In addition, the company had changed its depreciation policies on certain assets, but had not adjusted the policies within the financial statements. As a result of this error, depreciation has been overcharged in the previously reported financial statements.
To correct this oversight, the company has restated the depreciation charge in the current and prior years. This has resulted in a net increase in the profit and loss reserve at 1 April 2018 of £208,272 and of tangible fixed assets at that date. In 2019 there is a decrease in the depreciation charge of £427,021 and a corresponding increase in the profit and loss reserve at that date.
3
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2020
2019
Number
Number
Total
39
33
AGM BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2020
- 10 -
4
Intangible fixed assets
Development costs
£
Cost
At 1 April 2019
1,287,810
Additions
1,705,257
Disposals
(2,993,067)
At 30 June 2020
-
Amortisation and impairment
At 1 April 2019 and 30 June 2020
-
Carrying amount
At 30 June 2020
-
At 31 March 2019
1,287,810
On 30 June 2020, the company transferred its intangible fixed assets to its parent undertaking AMTE Power Limited at net book value.
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 April 2019
-
8,548,529
8,548,529
Additions
36,828
195,598
232,426
Disposals
(36,828)
(8,744,127)
(8,780,955)
At 30 June 2020
-
-
-
Depreciation and impairment
At 1 April 2019
-
7,241,226
7,241,226
Depreciation charged in the period
1,875
198,986
200,861
Eliminated in respect of disposals
(1,875)
(7,440,212)
(7,442,087)
At 30 June 2020
-
-
-
Carrying amount
At 30 June 2020
-
-
-
At 31 March 2019
-
1,307,303
1,307,303
On 30 June 2020, the company transferred its tangible fixed assets to its parent undertaking AMTE Power Limited at net book value.
AGM BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2020
- 11 -
6
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
131,713
131,330
Other debtors
523,243
666,142
654,956
797,472
7
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
192,372
87,116
Amounts owed to group undertakings
368,445
1,149,758
Taxation and social security
127,988
26,242
Other creditors
58,684
96,176
747,489
1,359,292
Hire purchase obligations of £nil (2019 - £21,073) are secured over the assets concerned.
8
Creditors: amounts falling due after more than one year
2020
2019
£
£
Other creditors
-
909,644
Hire purchase obligations of £nil (2019 - £83,558) are secured over the assets concerned.
On 30 June 2020, the company transferred its deferred grants and HP obligations to its parent undertaking AMTE Power Ltd at book value.
9
Revaluation reserve
2020
2019
£
£
At the beginning of the period
309,820
309,820
Revaluation surplus arising in the period
(309,820)
-
At the end of the period
-
309,820
AGM BATTERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2020
- 12 -
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2020
2019
£
£
103,125
180,000
11
Parent company
The company remained under the control of AMTE Power Ltd by nature of the majority shareholding.
2020-06-30
2019-04-01
false
30 November 2020
CCH Software
CCH Accounts Production 2020.200
No description of principal activity
Mr K D Brundish
Mr P Tillet
Mr A C Park
Jordan Company Secretaries Ltd
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