Registration number:
Hi-Tech Fabrication Ltd
for the Year Ended 31 December 2022
Hi-Tech Fabrication Ltd
Contents
Company Information |
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Balance Sheet |
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Notes to the Financial Statements |
Hi-Tech Fabrication Ltd
Company Information
Director |
S J Winter |
Registered office |
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Auditors |
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Hi-Tech Fabrication Ltd
(Registration number: 05554410)
Balance Sheet as at 31 December 2022
Note |
2022 |
2021 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net (liabilities)/assets |
( |
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Capital and reserves |
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Called up share capital |
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Profit and loss account |
( |
( |
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Total equity |
( |
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These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Directors' Report or the Profit and Loss Account has been taken.
Approved and authorised by the
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Hi-Tech Fabrication Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022
General information |
The company is a private company limited by share capital, incorporated in England & Wales. The company's registration number is 05554410.
The address of its registered office is:
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.
Hi-Tech Fabrication Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
2 |
Accounting policies (continued) |
Going concern
The Company has made an Operating loss of £1,138,914 during the year under review (2021: Operational Profit of £332,205).
Post receivership of Manoir Industries SAS, the immediate parent of the Company, it was anticipated an immediate bounce back in terms of intake and profitability for the company. This did not come to fruition within the year under review as a period of major internal restructuring has taken place with Manoir Industries, creating significant customer backlog, resulting from a dramatic rise in order intake due to global market conditions.
The impact of this has been a time lag on the company in the region of 6-9 months. With Q1 of 2023 we have already achieved 50% of the order intake forecast, for the year in total. Therefore the Directors are very confident that business activity will improve and potentially exceed forecast as business confidence and activity levels rise coupled with the continuity plan presented by Manoir Industries being extended.
The Directors have prepared profit and cashflow projections covering the year ending 31 December 2023 which indicate that the company will continue to grow profitability.
The profit and cashflow projections depend on subjective judgements and assumptions and they are, according to the nature of the business and the period covered, subject to inherent uncertainty, in particular, to the value of turnover secured, gross profit margin achieved, assumptions over the level of foreign exchange rates and the level of working capital funding provided by Manoir Industries made available through intra group trading and loan accounts.
In taking these and all other factors into account the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and thus continue to adopt the going concern basis of accounting in preparing the annual financial statements. The accounts do not include any adjustments that would arise if this concept turned out not to be appropriate.
Changes in accounting estimate
The effect of the change on assets, liabilities, income and expense in the current year is as follows: |
2021 |
Turnover |
772,517 |
Cost of sales |
575,871 |
Gross profit |
196,646 |
Stocks |
(1,307,237) |
Trade debtors |
1,169,526 |
Prepayments |
137,711 |
Profit and loss reserve brought forward |
(196,646) |
Hi-Tech Fabrication Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
2 |
Accounting policies (continued) |
Contract revenue recognition
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 as 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:
Rendering of services under construction contracts
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
• the amount of revenue can be measured reliably;
• it is probable that the Company will receive the consideration due under the contract;
• the stage of completion of the contract at the end of the reporting period can be measured reliably; and
• the costs incurred and the costs to complete the contract can be measured reliably.
• judgements in applying this policy are outlined in note 3.
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 as 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:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
• the amount of revenue can be measured reliably;
• it is probable that the Company will receive the consideration due under the contract;
• the stage of completion of the contract at the end of the reporting period can be measured reliably; and
• the costs incurred and the costs to complete the contract can be measured reliably.
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.
Foreign currency transactions and balances
Tax
The tax expense for the period comprises tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Hi-Tech Fabrication Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
2 |
Accounting policies (continued) |
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
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 the profit and loss.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Plant and machinery |
7-33% straight line |
Fixture and fittings |
33% straight line |
Computer and office equipment |
33% straight line |
Impairment of fixed assets
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset 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.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Software |
33% straight line |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Hi-Tech Fabrication Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
2 |
Accounting policies (continued) |
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 and loss. Reversals of impairment losses are also recognised in profit or loss.
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
The company has elected to apply 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 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 to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors, 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.
Hi-Tech Fabrication Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
2 |
Accounting policies (continued) |
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting date.
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 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 the amortised cost using the effect interest method.
Hi-Tech Fabrication Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
Audit report information |
Audit report
As the income statement 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:
Material uncertainty in relation to going concern
We draw your attention to note 2 of the financial statements, which sets out that on 25th February 2021 Manoir Industries SAS, the immediate parent undertaking of the Company, was placed into a court administered receivership process in France and an initial 6month observation period commenced.
Manoir Industries formally came out of the receivership procedure on 15th October 2021 with the Court accepting the business continuity recovery plan presented by CAM-SPC, the ultimate controlling shareholder of the Manoir Group.
In view of the dependence of the Company on the continued provision of working capital funding by Manoir Industries SAS and the circumstances set out in note 2, theses conditions indicate that a material uncertainty exists that may cast doubt on the Company's ability to continue as a going concern. Our opinion is not qualified in respect of this matter.
In auditing the financial statements, we have concluded that Director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
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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Staff numbers |
The average number of persons employed (including the director) during the year was
Hi-Tech Fabrication Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
Taxation |
Deferred tax
Deferred tax assets and liabilities
2022 |
Liability |
Accelerated capital allowances |
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2021 |
Liability |
Accelerated capital allowances |
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Intangible assets |
Internally generated software development costs |
Total |
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Cost or valuation |
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At 1 January 2022 |
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At 31 December 2022 |
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Amortisation |
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At 1 January 2022 |
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At 31 December 2022 |
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Carrying amount |
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At 31 December 2022 |
- |
- |
At 31 December 2021 |
- |
- |
Hi-Tech Fabrication Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
Tangible assets |
Fixtures and fittings |
Plant and machinery |
Office equipment |
Total |
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Cost or valuation |
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At 1 January 2022 |
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Disposals |
- |
( |
- |
( |
At 31 December 2022 |
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Depreciation |
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At 1 January 2022 |
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Charge for the year |
- |
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Eliminated on disposal |
- |
( |
- |
( |
At 31 December 2022 |
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Carrying amount |
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At 31 December 2022 |
- |
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At 31 December 2021 |
- |
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During the year the company has assessed the depreciation and residual value of tangible fixed assets and has written back the depreciation to align with the residual value.
Stocks |
2022 |
2021 |
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Stock |
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Debtors |
Note |
2022 |
2021 |
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Trade debtors |
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Amounts owed by related parties |
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Other debtors |
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Prepayments |
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Income tax asset |
- |
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Less non-current portion |
( |
( |
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Hi-Tech Fabrication Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
Creditors |
Creditors: amounts falling due within one year
Note |
2022 |
2021 |
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Due within one year |
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Loans and borrowings |
- |
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Trade creditors |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
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Taxation and social security |
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Other creditors |
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Accrued expenses |
192,367 |
527,131 |
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Creditors: amounts falling due after more than one year
2022 |
2021 |
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Due after one year |
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Amounts owed by group undertakings |
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Loans and borrowings |
2022 |
2021 |
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Current loans and borrowings |
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HP and finance lease liabilities |
- |
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Share capital |
Allotted, called up and fully paid shares
2022 |
2021 |
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No. |
£ |
No. |
£ |
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2,579,221 |
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2,579,221 |
Rights, preferences and restrictions
Ordinary shares have the following rights, preferences and restrictions: |
Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £
Hi-Tech Fabrication Ltd
Notes to the Financial Statements for the Year Ended 31 December 2022 (continued)
Related party transactions |
In preparing these financial statements, advantage has been taken under the provision of section 33 of FRS 102 which states that disclosure is not required of transactions with entities that are part of the group as the company is a wholly owned subsidiary.
Parent and ultimate parent undertaking |
Equitis Gestion acts as a Fiduciary Corporate director on behalf of the French government.
The shares are held in trust as security against the French funding in the parent company, and will continue to be held until the funding has been fully repaid.
Manoir Industries SAS still has full day to to day operational control.
The company's immediate parent is
The ultimate parent is
The most senior parent entity producing publicly available financial statements is