Company registration number 04628123 (England and Wales)
HAHN AUTOMATION LIMITED (FORMERLY ORWIN LIMITED)
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
HAHN AUTOMATION LIMITED (FORMERLY ORWIN LIMITED)
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 10
HAHN AUTOMATION LIMITED (FORMERLY ORWIN LIMITED)
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
6
1,463
14,927
Tangible assets
7
244,045
183,676
245,508
198,603
Current assets
Stocks
8
871,919
626,084
Debtors
9
2,671,404
2,561,122
Cash at bank and in hand
239,095
1,514,472
3,782,418
4,701,678
Creditors: amounts falling due within one year
10
(3,145,455)
(3,414,130)
Net current assets
636,963
1,287,548
Total assets less current liabilities
882,471
1,486,151
Creditors: amounts falling due after more than one year
11
(5,378)
Provisions for liabilities
12
(33,013)
(38,554)
Net assets
849,458
1,442,219
Capital and reserves
Called up share capital
13
1
1
Profit and loss reserves
849,457
1,442,218
Total equity
849,458
1,442,219
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 31 March 2023 and are signed on its behalf by:
B G Murphy
Director
Company Registration No. 04628123
HAHN AUTOMATION LIMITED (FORMERLY ORWIN LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
1
Accounting policies
Company information
Hahn Automation Limited (formerly Orwin Limited) is a private company limited by shares incorporated in England and Wales. The registered office is 3 Brockwell Road, Crowther, Washington, Tyne And Wear, NE38 0AF.
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 amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The comparatives presented are unaudited as stated. The principal accounting policies adopted are set out below.
1.2
Going concern
Attrue the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents amounts receivable for goods and services provided in the normal course of business net of VAT and trade discounts.
Long term contract turnover is calculated as the value of the contract works completed at the balance sheet date. Profit recognised is based on the stage of completion of a contract. Where turnover differs from amounts invoiced, the balance is included in amounts recoverable on long term contracts or payments on account as appropriate.
Service contract revenue is recognised on a straight-line basis over the period to which the maintenance service relates.
Spare parts sales are recognised on the delivery of goods.
1.4
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.
R&D expenditure credits are recognised when they become receivable.
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10.83 years.
HAHN AUTOMATION LIMITED (FORMERLY ORWIN LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 3 -
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:
Patents & licences
17 years straight line
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:
Leasehold land and buildings
3 - 10 years straight line
Plant and equipment
3 - 10 years straight line
Fixtures and fittings
6 - 10 years straight line
Motor vehicles
3 - 4 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.
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).
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.
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
Long-term contract revenue
Where the outcome of a long term contract can be estimated reliably, turnover and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date.
When it is probable that total forecasted contract costs will exceed total contract turnover provision is made in full for anticipated losses on uncompleted contracts at the reporting end date.
HAHN AUTOMATION LIMITED (FORMERLY ORWIN LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 4 -
The “percentage of completion method” is used to determine the appropriate amount of turnover and costs to recognise in a given period. The stage of completion is measured by reference to the time costs incurred in relation to budgeted costs to complete.
Cumulative costs incurred net of amounts recognised as cost of sales are held as work in progress. Contract cost accruals and anticipated losses on contract are held within other creditors.
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, loans to fellow group companies 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.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 payments 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. Amounts 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
HAHN AUTOMATION LIMITED (FORMERLY ORWIN LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 5 -
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.
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, if considered material to the financial statements.
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.
HAHN AUTOMATION LIMITED (FORMERLY ORWIN LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 6 -
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 leases asset are consumed.
1.17
Government grants
Government grants are recognised at the fair value of the asset received 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.
The current year income statement includes amounts of £nil (2021 - £32,820) received in relation to the coronavirus job retention scheme grants.
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.
2
Operating profit
2022
2021
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
7,000
7,000
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
84
92
4
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
80,947
100,925
Adjustments in respect of prior periods
2,103
(52,986)
Total current tax
83,050
47,939
HAHN AUTOMATION LIMITED (FORMERLY ORWIN LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
4
Taxation
2022
2021
£
£
(Continued)
- 7 -
Deferred tax
Origination and reversal of timing differences
(5,541)
30,117
Total tax charge
77,509
78,056
5
Dividends
2022
2021
£
£
Interim paid
407,588
10,000
6
Intangible fixed assets
Goodwill
Patents & licences
Total
£
£
£
Cost
At 1 January 2022
20,800
5,852
26,652
Disposals
(20,800)
(20,800)
At 31 December 2022
5,852
5,852
Amortisation and impairment
At 1 January 2022
7,680
4,045
11,725
Amortisation charged for the year
1,440
344
1,784
Disposals
(9,120)
(9,120)
At 31 December 2022
4,389
4,389
Carrying amount
At 31 December 2022
1,463
1,463
At 31 December 2021
13,120
1,807
14,927
HAHN AUTOMATION LIMITED (FORMERLY ORWIN LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
7
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2022
125,299
253,943
257,484
209,391
846,117
Additions
117,489
11,000
16,196
144,685
Disposals
(74,300)
(74,300)
At 31 December 2022
242,788
264,943
273,680
135,091
916,502
Depreciation and impairment
At 1 January 2022
113,150
209,765
137,416
202,110
662,441
Depreciation charged in the year
21,260
12,033
43,742
7,281
84,316
Eliminated in respect of disposals
(74,300)
(74,300)
At 31 December 2022
134,410
221,798
181,158
135,091
672,457
Carrying amount
At 31 December 2022
108,378
43,145
92,522
244,045
At 31 December 2021
12,149
44,178
120,068
7,281
183,676
8
Stocks
2022
2021
£
£
Raw materials and consumables
391,181
146,985
Work in progress
480,738
479,099
871,919
626,084
9
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
467,672
700,460
Amounts owed by group undertakings
2,118,610
1,473,900
Other debtors
85,122
386,762
2,671,404
2,561,122
HAHN AUTOMATION LIMITED (FORMERLY ORWIN LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
10
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
620,132
533,823
Amounts owed to group undertakings
364,969
112,617
Corporation tax
37,808
4,601
Other taxation and social security
105,911
115,640
Other creditors
2,016,635
2,647,449
3,145,455
3,414,130
Included within other creditors are amounts of £5,318 (2021 - £31,611) relating to hire purchase liabilities which are secured upon the assets to which they relate.
11
Creditors: amounts falling due after more than one year
2022
2021
£
£
Other creditors
5,378
Included within other creditors are amounts of £nil (2021 - £5,378) relating to hire purchase liabilities which are secured upon the assets to which they relate.
12
Provisions for liabilities
2022
2021
£
£
Deferred tax liabilities
33,013
38,554
13
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
14
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:
2022
2021
£
£
Total commitments
1,123,667
596,317
HAHN AUTOMATION LIMITED (FORMERLY ORWIN LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
15
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
2022
2021
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
131,220
79,786
The following amounts were outstanding at the reporting end date:
2022
2021
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
1,994,806
945,667
16
Parent company
The immediate parent company is Whiteley Murphy Limited, a company registered in England and Wales.
The ultimate parent company is RAG-Stiftung GmbH, a company registered in Germany.
17
Audit report information
As the income statement and Directors' report has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Paul Gainford.
The auditor was RMT Accountants & Business Advisors Ltd.
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