REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
AUTOMATION TOOLING SYSTEMS ENTERPRISES |
ENGLAND LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
AUTOMATION TOOLING SYSTEMS ENTERPRISES |
ENGLAND LIMITED |
AUTOMATION TOOLING SYSTEMS ENTERPRISES |
ENGLAND LIMITED (REGISTERED NUMBER: 12345545) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the year ended 31 March 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Statement of Profit or Loss and Other Comprehensive Income |
8 |
Statement of Financial Position | 9 |
Statement of Changes in Equity | 10 |
Statement of Cash Flows | 11 |
Notes to the Statement of Cash Flows | 12 |
Notes to the Financial Statements | 13 |
AUTOMATION TOOLING SYSTEMS ENTERPRISES |
ENGLAND LIMITED |
COMPANY INFORMATION |
for the year ended 31 March 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Registered Auditors |
Linden House |
Linden Close |
Tunbridge Wells |
Kent |
TN4 8HH |
AUTOMATION TOOLING SYSTEMS ENTERPRISES |
ENGLAND LIMITED (REGISTERED NUMBER: 12345545) |
STRATEGIC REPORT |
for the year ended 31 March 2023 |
The directors present their strategic report for the year ended 31 March 2023. |
REVIEW OF BUSINESS |
The company operates as a holding company, the results for the period reflect the interest charged on intercompany loans with the minimal administrative costs to operate as such. It's major outgoings are in respect interest paid on intercompany loans. Current interest rates being the primary driver for both Revenue and Finance costs. |
The company and its subsidiaries are subsidiaries of the ultimate parent ATS Corporation whose head office is in Ontario, Canada and who control the cash provision to the company. |
The following KPIs are in line with group expectation: |
2023 | 2023 | 2022 | 2022 |
£k | £k |
Revenue | 599 | 100% | 190 | 100% |
GM | 557 | 93% | 151 | 79% |
SG&A | 0 | 0% | 0 | 0% |
Finance cost | 1,995 | 333% | 991 | 522% |
EBT | -1,438 | -240% | -840 | -442% |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risk has been experienced during the reporting period due to the rise in interest rates around the world. This has been and will be mitigated by the ultimate parent company's finances. |
ON BEHALF OF THE BOARD: |
AUTOMATION TOOLING SYSTEMS ENTERPRISES |
ENGLAND LIMITED (REGISTERED NUMBER: 12345545) |
REPORT OF THE DIRECTORS |
for the year ended 31 March 2023 |
The directors present their report with the financial statements of the company for the year ended 31 March 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of a holding company. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 March 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with UK-adopted international accounting standards. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUTOMATION TOOLING SYSTEMS ENTERPRISES |
ENGLAND LIMITED (REGISTERED NUMBER: 12345545) |
REPORT OF THE DIRECTORS |
for the year ended 31 March 2023 |
AUDITORS |
The auditors, BSR Bespoke, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
AUTOMATION TOOLING SYSTEMS ENTERPRISES |
ENGLAND LIMITED |
Opinion |
We have audited the financial statements of Automation Tooling Systems Enterprises England Limited (the 'company') for the year ended 31 March 2023 which comprise the Statement of Profit or Loss and Other Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the UK. |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its loss for the year then ended; |
- | have been properly prepared in accordance with IFRSs as adopted by the UK; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
AUTOMATION TOOLING SYSTEMS ENTERPRISES |
ENGLAND LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the client and determined that the most significant is the form and content of the financial statements, IFRS "UK-adopted international accounting standards" and the Companies Act 2006. |
We assessed the susceptibility of the financial statements to material misstatement due to fraud, by making an |
assessment of the key fraud risks, the manner in which any such risks may materialise, our knowledge of the client and an assessment of the current business environment. |
We designed our audit procedures to identify non-compliance with such laws and regulations, including journals testing in order to test for indications of management bias. Where the risk was considered to be higher, we performed additional audit procedures to address each identified fraud risk to obtain reasonable assurance that the financial statements were free of fraud or error. |
There are inherent limitations in the audit procedures described above, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment. The primary responsibility for the prevention and detection of fraud rests with management and those charged with governance. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
AUTOMATION TOOLING SYSTEMS ENTERPRISES |
ENGLAND LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
Registered Auditors |
Linden House |
Linden Close |
Tunbridge Wells |
Kent |
TN4 8HH |
AUTOMATION TOOLING SYSTEMS ENTERPRISES |
ENGLAND LIMITED (REGISTERED NUMBER: 12345545) |
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME |
for the year ended 31 March 2023 |
31.3.23 | 31.3.22 |
Notes | £ | £ |
CONTINUING OPERATIONS |
Revenue |
Administrative expenses | ( |
) | ( |
) |
OPERATING PROFIT |
Finance costs | 4 | (1,995,882 | ) | (991,836 | ) |
LOSS BEFORE INCOME TAX | 5 | ( |
) | ( |
) |
Income tax | 6 |
LOSS FOR THE YEAR | ( |
) | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
( |
) |
AUTOMATION TOOLING SYSTEMS ENTERPRISES |
ENGLAND LIMITED (REGISTERED NUMBER: 12345545) |
STATEMENT OF FINANCIAL POSITION |
31 March 2023 |
31.3.23 | 31.3.22 | 1.4.21 |
Notes | £ | £ | £ |
ASSETS |
NON-CURRENT ASSETS |
Investments | 7 | 23,880,666 | 23,880,666 | 23,880,666 |
Trade and other receivables | 9 |
CURRENT ASSETS |
Trade and other receivables | 9 |
Cash and cash equivalents | 10 |
TOTAL ASSETS |
EQUITY |
SHAREHOLDERS' EQUITY |
Called up share capital | 11 |
Retained earnings | 12 | ( |
) |
TOTAL EQUITY |
LIABILITIES |
NON-CURRENT LIABILITIES |
Trade and other payables | 13 |
CURRENT LIABILITIES |
Trade and other payables | 13 |
TOTAL LIABILITIES |
TOTAL EQUITY AND LIABILITIES |
The financial statements were approved by the Board of Directors and authorised for issue on |
AUTOMATION TOOLING SYSTEMS ENTERPRISES |
ENGLAND LIMITED (REGISTERED NUMBER: 12345545) |
STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 March 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 March 2022 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 March 2023 | ( |
) |
AUTOMATION TOOLING SYSTEMS ENTERPRISES |
ENGLAND LIMITED (REGISTERED NUMBER: 12345545) |
STATEMENT OF CASH FLOWS |
for the year ended 31 March 2023 |
31.3.23 | 31.3.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) | ( |
) |
Net cash from operating activities | ( |
) | ( |
) |
Cash flows from investing activities |
Increase in amounts owed by group | (6,477,679 | ) | (5,049,945 | ) |
Interest received | 599,346 | 189,978 |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Increase in amounts owed to group | 9,137,975 | 6,963,559 |
Interest paid | (1,995,882 | ) | (991,836 | ) |
Net cash from financing activities |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
3,646,035 |
Cash and cash equivalents at end of year | 2 |
AUTOMATION TOOLING SYSTEMS ENTERPRISES |
ENGLAND LIMITED (REGISTERED NUMBER: 12345545) |
NOTES TO THE STATEMENT OF CASH FLOWS |
for the year ended 31 March 2023 |
1. | RECONCILIATION OF LOSS BEFORE INCOME TAX TO CASH GENERATED FROM OPERATIONS |
31.3.23 | 31.3.22 |
£ | £ |
Loss before income tax | ( |
) | ( |
) |
Finance income | (599,346 | ) | (189,978 | ) |
Finance costs | 1,995,882 | 991,836 |
(42,327 | ) | (38,501 | ) |
Decrease in trade and other receivables |
Increase in trade and other payables |
Cash generated from operations | ( |
) | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 6,003,399 | 4,747,890 |
Year ended 31 March 2022 |
31.3.22 | 1.4.21 |
£ | £ |
Cash and cash equivalents | 4,747,890 | 3,646,035 |
3. | RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES |
The changes in liabilities arising from financing activities are solely from financing cash flows. |
AUTOMATION TOOLING SYSTEMS ENTERPRISES |
ENGLAND LIMITED (REGISTERED NUMBER: 12345545) |
NOTES TO THE FINANCIAL STATEMENTS |
for the year ended 31 March 2023 |
1. | STATUTORY INFORMATION |
Automation Tooling Systems Enterprises England Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
The financial statements have been rounded to the nearest Pound. |
2. | ACCOUNTING POLICIES |
Basis of preparation |
For all periods up to and including the year ended 31 March 2022, the company prepared its financial |
statements in accordance with UK generally accepted accounting principles (UK GAAP). These financial |
statements for the year ended 31 March 2023 are the first the company has prepared in accordance with IFRS. Refer to Note 17 for information on how the company adopted IFRS. |
Going concern |
After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements. |
Preparation of consolidated financial statements |
The financial statements contain information about Automation Tooling Systems Enterprises England Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 401 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, ATS Corporation, 730 Fountain Street North, Cambridge, Ontario, Canada. |
The company is also exempt from preparing consolidated financial statements under IFRS 10.4(a). |
Critical accounting judgements and key sources of estimation uncertainty |
In the process of applying its accounting policies set out in note 2, the company is required to make certain estimates, judgements and assumptions that it believes are reasonable based on the information available. These judgements, estimates and assumptions affect the carrying amounts of assets and liabilities at the date of the financial statements and the amounts of revenues and expenses recognised during the reporting periods presented. Changes to these estimates, judgements and assumptions could have a material effect on the financial statements. |
On an ongoing basis, the company evaluates its estimates using historical experience, consultation with experts and other methods considered reasonable in the particular circumstances. Actual results may differ significantly from the estimates, the effect of which is recognised in the period in which the facts that give rise to the revision become known. |
Revenue recognition |
Interest receivable accrues daily and is recognised at the end of the month to which it relates. |
AUTOMATION TOOLING SYSTEMS ENTERPRISES |
ENGLAND LIMITED (REGISTERED NUMBER: 12345545) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Cash and cash equivalents |
Cash represents cash in hand and deposits held on demand with financial institutions. Cash equivalents are short-term, highly-liquid investments with original maturities of three months or less (as at their date of acquisition). Cash equivalents are readily convertible to known amounts of cash and subject to an insignificant risk of change in that cash value. |
In the presentation of the Statement of Cash Flows, cash and cash equivalents also include bank overdrafts. Any such overdrafts are shown within borrowings under ‘current liabilities’ on the Statement of Financial Position. |
Financial instruments |
Financial assets |
All of the company's financial assets are classified as cash at bank and intercompany receivables. These comprise non-derivative financial assets that are not quoted in an active market. They are initially recognised at fair value plus transaction costs and are subsequently carried at amortised cost using the effective interest rate method, less provision for expected credit losses (ECLs). |
ECL is the product of the probability of default (PD), exposure at default (EAD) and loss given default (LGD), discounted at the original EIR. The assessment of credit risk and the estimation of ECL are required to be unbiased, probability-weighted and should incorporate all available information relevant to the assessment, including information about past events, current conditions and reasonable and supportable forecasts of economic conditions at the reporting date. |
Financial liabilities |
All of the company's financial liabilities are classified as other financial liabilities not measured at fair value through profit and loss and comprise: |
Loans and borrowings - these are initially recognised at fair value net of any transaction costs and are subsequently measured at amortised cost using the effective interest rate method, which ensures that the interest expense over the repayment is at a constant rate on the balance of the liability carried in the statement of financial position. |
Taxation |
Current taxes are based on the results shown in the financial statements and are calculated according to local tax rules, using tax rates enacted or substantially enacted by the statement of financial position date. |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Deferred tax is measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on the tax rates that have been enacted or substantially enacted by the end of the reporting period. |
Investments in subsidiaries |
Subsidiaries are entities controlled by the company. Control exists when the company is exposed, or has rights, to variable returns from its involvement with the subsidiary entity and has the ability to affect those returns through its power over the subsidiary entity. Investments in subsidiary undertakings are recognised at cost as permitted by IAS 27. |
3. | EMPLOYEES AND DIRECTORS |
There were no staff costs for the year ended 31 March 2023 nor for the year ended 31 March 2022. |
AUTOMATION TOOLING SYSTEMS ENTERPRISES |
ENGLAND LIMITED (REGISTERED NUMBER: 12345545) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
3. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
31.3.23 | 31.3.22 |
Directors |
31.3.23 | 31.3.22 |
£ | £ |
Directors' remuneration |
4. | NET FINANCE COSTS |
31.3.23 | 31.3.22 |
£ | £ |
Finance income: |
Interest income | 599,346 | 189,978 |
Finance costs: |
Loan interest | 1,995,882 | 991,836 |
Net finance costs | (1,396,536 | ) | (801,858 | ) |
5. | LOSS BEFORE INCOME TAX |
Auditors' remuneration for the period is £13,320 (2022: £7,260). |
6. | INCOME TAX |
Analysis of tax expense |
No liability to UK corporation tax arose for the year ended 31 March 2023 nor for the year ended 31 March 2022. |
AUTOMATION TOOLING SYSTEMS ENTERPRISES |
ENGLAND LIMITED (REGISTERED NUMBER: 12345545) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
6. | INCOME TAX - continued |
Factors affecting the tax expense |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.3.23 | 31.3.22 |
£ | £ |
Loss before income tax | ( |
) | ( |
) |
Loss multiplied by the standard rate of corporation tax in the UK of (2022 - |
( |
) |
( |
) |
Effects of: |
Transfer pricing compensating adjustment | 127,884 | 22,816 |
Losses relieved to group companies | 140,066 | 131,418 |
Expenses not deductible for tax purposes | 5,434 | 5,434 |
Tax expense |
7. | INVESTMENTS |
Shares in |
group |
undertaking |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 | 23,880,666 |
NET BOOK VALUE |
At 31 March 2023 | 23,880,666 |
At 31 March 2022 | 23,880,666 |
The company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Registered office: Block 3, The Industrial Estate, Enterprise Way, Edenbridge, Kent. TN8 6HF. |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 5 New Street Square, London, United Kingdom, EC4A 3TW |
Nature of business: |
% |
Class of shares: | holding |
AUTOMATION TOOLING SYSTEMS ENTERPRISES |
ENGLAND LIMITED (REGISTERED NUMBER: 12345545) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
7. | INVESTMENTS - continued |
These financial statements are the separate, unconsolidated financial statements of Automation Tooling Systems Enterprises England Limited. The exemption from consolidation has been used as per IFRS 10.4(a). |
ATS Corporation (incorporated in Canada) is regarded by the directors as being the company's ultimate parent company and prepares consolidated accounts that are compliant with IFRS. The consolidated accounts are publicly available at www.sedar.com. |
Investments are accounted for at cost less impairment and their book value is not considered significantly different to their market values. |
8. | FINANCIAL ASSETS AND LIABILITIES |
31.3.23 | 31.3.22 |
£ | £ |
Financial Assets |
Debt instruments measured at amortised cost | 13,268,450 | 6,790,772 |
Financial Assets |
Measured at fair value through profit or loss | - | - |
Financial Assets |
Measured at fair value through other comprehensive income | - | - |
Financial Liabilities |
Measured at amortised cost | 33,019,998 | 23,882,023 |
Financial Liabilities |
Measured at fair value through profit or loss | - | - |
Debt instruments measured at amortised cost include receivables from related parties. |
Financial liabilities measured at amortised cost include loans due to related parties. |
The terms of the debt instruments and financial liabilities can be found in note 16. |
9. | TRADE AND OTHER RECEIVABLES |
31.3.23 | 31.3.22 |
£ | £ |
Current: |
Amounts owed by group undertakings |
Prepayments and accrued income | 78,747 | 106,097 |
AUTOMATION TOOLING SYSTEMS ENTERPRISES |
ENGLAND LIMITED (REGISTERED NUMBER: 12345545) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
9. | TRADE AND OTHER RECEIVABLES - continued |
31.3.23 | 31.3.22 |
£ | £ |
Non-current: |
Amounts owed by group undertakings |
Aggregate amounts |
Amounts owed by group undertakings are considered to carry low credit risk. The group undertakings are considered to have a strong capacity to meet their contractual cash flow obligations in the long term and any associated 12-month ECLs are deemed immaterial to the accounts. |
10. | CASH AND CASH EQUIVALENTS |
31.3.23 | 31.3.22 |
£ | £ |
Bank accounts |
11. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.3.23 | 31.3.22 |
value: | £ | £ |
Ordinary | £1 | 10,286,000 | 10,286,000 |
The shares have attached to them full voting, dividend and capital distribution rights. |
12. | RESERVES |
Retained |
earnings |
£ |
At 1 April 2022 |
Deficit for the year | ( |
) |
At 31 March 2023 | ( |
) |
13. | TRADE AND OTHER PAYABLES |
31.3.23 | 31.3.22 |
£ | £ |
Current: |
Amounts owed to group undertakings |
Accrued expenses | 6,726 | - |
AUTOMATION TOOLING SYSTEMS ENTERPRISES |
ENGLAND LIMITED (REGISTERED NUMBER: 12345545) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
13. | TRADE AND OTHER PAYABLES - continued |
31.3.23 | 31.3.22 |
£ | £ |
Non-current: |
Amounts owed to group undertakings |
Aggregate amounts |
AUTOMATION TOOLING SYSTEMS ENTERPRISES |
ENGLAND LIMITED (REGISTERED NUMBER: 12345545) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
14. | FINANCIAL INSTRUMENTS |
Risk management |
The company is exposed through its operations to the following financial risks: |
- credit risk; |
- market risk; and |
- liquidity risk. |
The board has overall responsibility for the determination of the company's financial risk management objectives and policies. The board's overall objective is to set policies that seek to reduce risk as far as possible without unduly affecting the company's competitiveness and flexibility. Further details regarding these policies are described below: |
Credit risk |
Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. |
The company is exposed to credit risk from its investing activities in the form of amounts owing from group undertakings. |
Amounts owed by group undertakings are considered to carry low credit risk. The group undertakings are considered to have a strong capacity to meet their contractual cash flow obligations in the long term and any associated 12-month ECLs are deemed immaterial to the accounts. As a result no ECL disclosures are presented. Exposure to credit risk is deemed to be low for the company. |
At 31 March 2023 and 31 March 2022 the majority of the company's cash deposits were held by HSBC. |
Market risk |
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, debt and equity investments and derivative financial instruments. The company's exposure to currency risk and other price risk is negligible and not considered material to the company's activities. |
Interest rate risk |
The company is exposed to changes in interest rates through its intercompany debt obligations. The company's ultimate parent company manages and oversees the financing of the company and sets the interest rates on the intra-group debt. |
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on the intercompany debt. |
Interest | Increase/ decrease in basis points | Effect on loss before tax |
£ |
2023 | 100 | 187,315 |
(10 | ) | (18,732 | ) |
2022 | 50 | 80,848 |
(5 | ) | (8,085 | ) |
AUTOMATION TOOLING SYSTEMS ENTERPRISES |
ENGLAND LIMITED (REGISTERED NUMBER: 12345545) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
FINANCIAL INSTRUMENTS - continued |
The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment, showing a higher volatility than in prior years. |
Liquidity risk |
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The company mitigates this risk by managing cash generations by its operations and reviewing detailed cash flow forecasts and projections. |
In both the current and prior year there is not a material difference between the year end present value of the financial liabilities and the total undiscounted contractual cash flows. |
The table below summarises the maturity profile of the company's financial liabilities based on contractual undiscounted payments. |
Year ended 31 March 2023 |
< 1 year | 1-5 years | > 5 years | Total |
£ | £ | £ | £ |
Trade and other payables | 17,876,998 | 15,149,726 | - | 33,026,724 |
Year ended 31 March 2022 |
< 1 year | 1-5 years | > 5 years | Total |
£ | £ | £ | £ |
Trade and other payables | 8,732,297 | 15,149,726 | - | 23,882,023 |
As at 1 April 2021 |
< 1 year | 1-5 years | > 5 years | Total |
£ | £ | £ | £ |
Trade and other payables | 1,768,738 | 15,149,726 | - | 16,918,464 |
Capital disclosures |
The company's capital comprises its share capital and retained earnings. The company's objectives when maintaining capital are: |
- to safeguard the company's ability to continue as a going concern; and |
- to provide adequate return to shareholders. |
The company manages its capital structure and makes adjustments to it in the light of changes in economic conditions, for example adjusting the amount of dividends paid to shareholders. The company did not pay any dividends to shareholders during the year (2022: £nil). |
15. | ULTIMATE PARENT COMPANY |
ATS Corporation (incorporated in Canada) is regarded by the directors as being the company's ultimate parent company. |
Automation Tooling Systems Enterprises England Limited and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its ultimate parent company. Copies of the accounts are available at www.sedar.com |
AUTOMATION TOOLING SYSTEMS ENTERPRISES |
ENGLAND LIMITED (REGISTERED NUMBER: 12345545) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
16. | RELATED PARTY DISCLOSURES |
No key management personnel compensation was paid during the year (2022 - £nil). |
All other related party transactions are disclosed below: |
Year ended 31 March 2023 |
Name | Nature | Interest income | Loan interest | Amounts owed by | Amounts owed to |
ATS Corporation | Ultimate parent | - | - | - | - |
ATS Automation England Holdings 1 Limited | Subsidiary | 119,700 | - | 1,718,527 | 393,298 |
Marco Limited | Subsidiary | - | 172,866 | - | 3,485,520 |
ATS Automation Solutions Limited | Group company | - | 78,331 | - | 1,478,988 |
Olimon Hungary Kft. | Group company | - | 1,179,313 | - | 15,253,022 |
BioDot Limited | Group company | - | 385,904 | - | 5,235,682 |
Genevac Limited | Group company | - | 179,468 | - | 7,173,488 |
ATS Automation Tooling Systems GmbH | Group company | 479,646 | - | 11,549,924 | - |
The loan from ATS Corporation was repaid during the year and was interest free and with no set repayment terms. |
The core loan of £1,710,000 to ATS Automation England Holdings 1 Limited bears interest at 7% and matures in December 2024. The sales represent the interest receivable during the year on this loan. |
The loan to ATS Automation England Holdings 1 Limited is interest free and there are no set repayment terms. |
The loans from Marco Limited, ATS Automation Solutions Limited, BioDot Limited and Genevac Limited relate to bank sweep arrangements and bear interest at 5% + SONIA. There are no set repayment terms for these loans. The purchases for these companies relate to the interest on the aforementioned loans. |
The core loan of £15,149,726 from Olimon Hungary Kft. bears interest at 5.5% + LIBOR and matures in March 2025. The purchases represent the interest payable during the year on this loan. |
The core loan of £11,000,000 to ATS Automation Tooling Systems GmbH bears interest at 5.5% + SONIA and there are no set repayment terms. The balance relates to unpaid interest. The sales represent the interest receivable during the year on this loan. |
Year ended 31 March 2022 |
Name | Nature | Interest income | Loan interest | Amounts owed by | Amounts owed to |
ATS Corporation | Ultimate parent | - | - | - | 154,940 |
ATS Automation England Holdings 1 Limited | Subsidiary | 119,700 | - | 1,720,494 | 367,728 |
Marco Limited | Subsidiary | - | 31,644 | - | 2,102,283 |
ATS Automation Solutions Limited | Group company | - | 14,577 | - | 790,205 |
Olimon Hungary Kft. | Group company | - | 855,826 | - | 15,230,739 |
BioDot Limited | Group company | - | 89,789 | - | 5,236,128 |
ATS Automation Tooling Systems GmbH | Group company | 70,278 | - | 5,070,278 | - |
AUTOMATION TOOLING SYSTEMS ENTERPRISES |
ENGLAND LIMITED (REGISTERED NUMBER: 12345545) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
17. | ULTIMATE CONTROLLING PARTY |
The controlling party is ATS Automation Holdings Limited. |
The ultimate controlling party is ATS Corporation. |
The entire share capital of the company is owned by ATS Automation Holdings Limited which is 100% owned by ATS Corporation. |
18. | FIRST YEAR ADOPTION |
These financial statements, for the year ended 31 March 2023, are the first the company has prepared in |
accordance with IFRS. For periods up to and including the year ended 31 March 2022, the company prepared its financial statements in accordance with UK generally accepted accounting principles (UK GAAP). |
Accordingly, the company has prepared financial statements that comply with IFRS applicable as at 31 March 2023, together with the comparative period data for the year ended 31 March 2022. |
In preparing the financial statements, the company's opening statement of financial position was prepared as at 1 April 2021, the company's date of transition to IFRS. There were no adjustments made by the company to the statement of financial position or the income statement at 1 April 2021 and 31 March 2022 in restating its UK GAAP financial statements. |