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Registered number: 06552780
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ARTEMIS OPTICAL (HOLDINGS) LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 MARCH 2022
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ARTEMIS OPTICAL (HOLDINGS) LIMITED
REGISTERED NUMBER:06552780
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2022
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Capital redemption reserve
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The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
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.
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 2 to 7 form part of these financial statements.
Page 1
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ARTEMIS OPTICAL (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Artemis Optical (Holdings) Limited is a private company limited by shares, incorporated in England & Wales (registered number: 06552780) in the United Kingdom. Its registered office is 1 Western Wood Way, Langage Science Park, Plymouth, Devon, PL7 5BG.
2.ACCOUNTING POLICIES
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BASIS OF PREPARATION OF FINANCIAL STATEMENTS
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies.
The Company is the 100% parent of Artemis Optical Limited. There is no requirement to produce consolidated accounts as the group is a small group.
The following principal accounting policies have been applied:
Page 2
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ARTEMIS OPTICAL (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.ACCOUNTING POLICIES (continued)
The Company has incurred a loss during the year of £23,421 (2021: loss of £3,540), and it has net current liabilities of £395,524 (2021: net current liabilities of £447,103).
After achieving net profits for the previous two years, the Company (including Artemis Optical Limited) was affected by two significant issues during the year which had a marked impact on financial performance:
∙During August 2021, there was a serious equipment failure within the facility. For a period of seven weeks thereafter, the Company’s coating capacity was reduced by 20%. In regard to this failure, insurance negotiations have proved to be prolonged and extracted due to the complexity of the claim and the details behind the malfunction.
∙A global supply chain issue regarding the availability of silicon chips. This manifested in the deferral of a significant sales order from a major UK customer.
The Company expects to meet its working capital requirements through a mixture of adequate operating profit and cash generation, in addition to its banking facilities. In order to manage these requirements, the Company’s revenue forecast and projections are regularly reviewed and updated to reflect any changes in trading performance. The key revenue assumptions are based on current order book values plus known and qualified market opportunities from existing customers.
As the Company (including Artemis Optical Limited) recovered from the setbacks outlined, its revenue for the 12 month period ending 31st March 2023 grew by 31% on 2022 levels, being £4.3 million. Projected growth in revenue in the 12 months ending 31st March 2024 will be up to an estimated further 20%. This growth is underpinned by a strong order book of £1.97m. From the period from 1st April 2023 to date, revenue of £1.2m has already been shipped.
New orders booked in the twelve-month period since 1st June 2022 exceed £5.5m, this significant increase in order intake has been driven by growth in our industrial customer base as well as continuing levels of business with our Defence customers. We expect these levels of industrial business to continue and to be enhanced by an increase in Defence driven orders. The latter being driven by programs commencing in the UK and Europe as well as an increase in Defence spending globally amongst the backdrop of increasing geopolitical uncertainty. Given the status and importance to our customer base, the Company expects no significant delay in future order placements.
Based on the above, the projections show that the future profits and cash generation are sufficient to enable the Company to operate within its working capital requirements and its available banking facilities. After making these enquiries, the directors are confident that the Company has adequate resources to continue for the foreseeable future. In the event of any short-term cash generation delay or deferral, the directors have expressed a willingness to provide a level of temporary cash flow support sufficient to cover any short-term cash deficit that may arise.
On the basis of the above, the Company continues to adopt a going concern basis in preparing its
financial statements.
Page 3
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ARTEMIS OPTICAL (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.ACCOUNTING POLICIES (continued)
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.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
DEFINED CONTRIBUTION PENSION PLAN
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.
Investments in subsidiaries are measured at cost less accumulated impairment.
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 ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid
Page 4
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ARTEMIS OPTICAL (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.ACCOUNTING POLICIES (continued)
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FINANCIAL INSTRUMENTS (CONTINUED)
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or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Page 5
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ARTEMIS OPTICAL (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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The average monthly number of employees, including directors, during the year was 4 (2021: 4).
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Investments in subsidiary companies
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Prepayments and accrued income
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CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Interest is charged at 8% per annum on other loans of £42,580 and the loan remains repayable on demand.
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Page 6
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ARTEMIS OPTICAL (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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ALLOTTED, CALLED UP AND FULLY PAID
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533,613 (2021: 533,613) Ordinary A shares of £0.00001 each
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10,937 (2021: 10,937) Ordinary B shares of £0.00001 each
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7,443 (2021: 7,443) Ordinary C shares of £0.00001 each
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An Unlimited Composite Company Guarantee has been given by both Artemis Optical Limited and Artemis Optical (Holdings) Limited to secure all liabilities of each company .
The Company operates a defined contributions 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 £9,602 (2021: £10,404). Contributions totalling £3,584 (2021: £2,578) were payable to the fund at the reporting date and are included in creditors.
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RELATED PARTY TRANSACTIONS
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As the 100% parent of Artemis Optical Limited, the Company has taken advantage of the exemption in Financial Reporting Standard 102 Section 33 "Related party disclosures" in not disclosing intra-group transactions with its subsidiary.
At 31 March 2022, the Company owed £4,250 (2021: £4,250) to its Directors.
At 31 March 2022, the Company was owed £26,984 (2021: £26,984) by a Director of the Company's trading subsidiary.
At 31 March 2022, the Company owed a Director £37,586 (2021: £42,580). Interest is charged on the loan at 8% per annum.
During 2019, the Directors loaned the Company £75,000, interest free. At 31 March 2022, the Company owed £nil to the Directors (2021: £75,000).
During the year, the Directors received remuneration of £123,479 (2021: £122,039) and pension contributions of £9,602 (2021: £10,404).
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The company is not considered to have an ultimate controlling party as the company was controlled jointly by the directors throughout the year.
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