Argon Electronics (UK) Limited
Unaudited Financial Statements
For Filing with Registrar
For the year ended 31 March 2021
Company Registration No. 07170285 (England and Wales)
Argon Electronics (UK) Limited
Company Information
Directors
Mr S D Pike
Mrs C A Pike
Company number
07170285
Registered office
16 Ribcon Way
Progress Business Park
Luton
Bedfordshire
LU4 9UR
Accountants
Moore Kingston Smith LLP
4 Victoria Square
St Albans
Hertfordshire
AL1 3TF
Argon Electronics (UK) Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
Argon Electronics (UK) Limited
Balance Sheet
As at 31 March 2021
Page 1
2021
2020
Notes
£
£
£
£
Fixed assets
Intangible assets
4
340,032
318,466
Tangible assets
5
21,328
11,047
Current assets
Stock
525,387
444,866
Debtors
6
502,159
500,781
Cash at bank and in hand
3,419,275
2,350,187
4,446,821
3,295,834
Creditors: amounts falling due within one year
7
(571,210)
(267,497)
Net current assets
3,875,611
3,028,337
Total assets less current liabilities
4,236,971
3,357,850
Provisions for liabilities
(3,172)
(980)
Net assets
4,233,799
3,356,870
Capital and reserves
Called up share capital
8
30,000
30,000
Profit and loss reserves
4,203,799
3,326,870
Total equity
4,233,799
3,356,870
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 year ended 31 March 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
T
he directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year 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.
Argon Electronics (UK) Limited
Balance Sheet (Continued)
As at 31 March 2021
Page 2
The financial statements were approved by the board of directors and authorised for issue on 21 December 2021 and are signed on its behalf by:
Mr S D Pike
Director
Company Registration No. 07170285
Argon Electronics (UK) Limited
Notes to the Financial Statements
For the year ended 31 March 2021
Page 3
1
Accounting policies
Company information
Argon Electronics (UK) Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
16 Ribcon Way, Progress Business Park, Luton, Bedfordshire, United Kingdom, LU4 9UR.
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 Section 1A”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
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
pound
.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents amounts receivable for goods and services net of Vat and trade discounts.
1.3
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 years.
1.4
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.
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
.
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
20% Straight Line
Development costs
25% Straight Line
1.5
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:
Fixtures and fittings
25% Straight Line
Computers
25% Straight Line
Argon Electronics (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2021
1
Accounting policies
(Continued)
Page 4
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
.
1.6
Impairment of fixed assets
At each reporting 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).
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.
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 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. Where an impairment loss subsequently reverses, the carrying amount of the asset 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 prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stock
Stock
are stated at the lower of cost and
estimated selling price less costs to complete and sell.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock 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.
1.8
Cash and cash equivalents
Cash at bank and in hand
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.
Argon Electronics (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2021
1
Accounting policies
(Continued)
Page 5
1.9
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.
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 trade and other payables, bank loans, 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.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Research and development expenditure
Research and development expenditure is expensed in the year it is incurred. Development expenditure that fulfils the criteria for capitalisation is capitalised and amortised.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Argon Electronics (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2021
1
Accounting policies
(Continued)
Page 6
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.
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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 are included in the
profit and loss account
for the period.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 7 (2020 - 7
).
Argon Electronics (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2021
Page 7
3
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
172,172
128,672
Deferred tax
Origination and reversal of timing differences
2,192
436
Total tax charge
174,364
129,108
4
Intangible fixed assets
Goodwill
Other
Total
£
£
£
Cost
At 1 April 2020
840,000
571,532
1,411,532
Additions
-
127,664
127,664
At 31 March 2021
840,000
699,196
1,539,196
Amortisation and impairment
At 1 April 2020
840,000
253,066
1,093,066
Amortisation charged for the year
106,098
106,098
At 31 March 2021
840,000
359,164
1,199,164
Carrying amount
At 31 March 2021
340,032
340,032
At 31 March 2020
318,466
318,466
Argon Electronics (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2021
Page 8
5
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2020
114,192
Additions
16,467
At 31 March 2021
130,659
Depreciation
At 1 April 2020
103,145
Depreciation charged in the year
6,186
At 31 March 2021
109,331
Carrying amount
At 31 March 2021
21,328
At 31 March 2020
11,047
6
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
442,707
462,663
Other debtors
59,452
38,118
502,159
500,781
7
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
217,416
83,071
Corporation tax
172,172
128,671
Other taxation and social security
3,936
41,337
Other creditors
177,686
14,418
571,210
267,497
Argon Electronics (UK) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2021
Page 9
8
Called up share capital
2021
2020
£
£
Ordinary share capital
Issued and fully paid
30,000 Ordinary shares of £1 each
30,000
30,000
30,000
30,000
9
Directors' transactions
Dividends totalling £4,082 (2020 - £86,980) were paid in the year in respect of shares held by the company's directors.