Motivair Compressors Limited - Limited company accounts 22.3

REGISTERED NUMBER: 00918800 (England and Wales)

MOTIVAIR COMPRESSORS LIMITED

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 March 2022

Page

Company Information

1

Strategic Report

2

to

3

Report of the Directors

4

Report of the Independent Auditors

5

to

7

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11

to

19

Directors:

J P Leach

I Beadle

J A V Sopher

Registered office:

Victoria House

Britannia Road

Waltham Cross

Hertfordshire

EN8 7NU

Registered number:

00918800 (England and Wales)

Auditors:

Haines Watts Birmingham LLP

5-6 Greenfield Crescent

Edgbaston

Birmingham

West Midlands

B15 3BE

Bankers:

HSBC UK Bank Plc

1 Centenary Square

Birmingham

B1 1HQ

The directors present their strategic report for the year ended 31 March 2022.

Review of business

The results for the year and financial position of the company are as shown in the annexed financial statements.

Introduction

Founded in the late 1950s, the company has developed into one of the country's leading compressed air management companies, focusing on technical know-how, service and general support both in the UK and overseas.

The emphasis of the business has changed in recent years. The company has moved from being a branch based distributor of compressed air equipment to an independent, centralised, national service provider.

Principal risks and uncertainties

The principal risks faced by the company and its responses thereto are summarized in this analysis. Not all these factors are within the management's control and there may be risks and uncertainties which are unknown to the company. Other risks may not be deemed relevant now but may turn out to be significant in the future.

1. Financial risk management

The company's financial instruments comprise cash at bank and overdraft. The chief purpose of these is to raise adequate finance for the company's operations, together with management of working capital. The main concerns are interest rate fluctuations and liquidity risk. The company`s policy is to finance its operations through a

mixture of cash and borrowings and to review periodically the mix of these instruments with regard to the projected cash flow requirements and an acceptable level of exposure.

2. Foreign currency risk

The company feels it is not significantly exposed to foreign currency fluctuation. Overseas trading is about 1% of turnover and management of its foreign currencies is handled prudently with the assistance of its bankers.

3. Customer concentration risk

The company has a broad and disparate customer base. The company has diversified - organically and through acquisition - into new sectors (e.g. facilities management, utility providers and international 'Blue Chips') reducing dependence on older smaller and more price sensitive clients. At this stage, the risk from customer concentration is low.

4. Competitive pressure risk

The traditional industrial market for compressors has been moving to a direct OEM sales model. This is leading to consolidation and increased competitive pressures. That said, the strategic decision to actively move into new sectors where the barrier to entry is relatively high but competition is weak (e.g. BNFL, the MOD and FM) is insulating the company from much of the price war that is impacting the competition.

5. Loss of key personnel

A company of this size does rely on key personnel at many levels but the risk from any single loss has been mitigated by strengthening management structures. Knowledge is being encoded and processes enhanced. Performance based remuneration packages, an emphasis on staff welfare and other company benefits have ensured low staff turnover.

6. Credit risk

Default by customers on receivables could negatively affect earnings. New, more stringent credit controls have been put in place and a tight grip is maintained by the financial staff on all new, large or unusual customers.

7. Loss of supply of critical materials

There are very few products within the portfolio which are either unique or single sourced. Independence from any one supplier has given the group room for improved purchasing practices. The company also endeavours to maintain supply contracts with all key suppliers.

Financial review

Turnover increased by £1.40 million to £13.01 million (2021: £11.61 million) resulting in a gross profit margin of 58.74% (2021: 60.51%). The operating profit for the year was £926,758 (2021: £333,297). The net financial cost for the year was £37,842 (2021: £52,1181).

Trading statement

The increased year over year sales revenue can be attributed to a major system installation with further works due in future financial years, in addition service contract sales growth with a high GP% and reduced overheads also increased YOY profitability.

Motivair continue to leverage a broad sector client footprint, maintaining Critical National infrastructure (CNI) assets (Not optional for the End User to maintain) by utilising its site experience, knowledge, and national service footprint. Motivair over the last 3 years have been working closely with the expanding Facilities Management (FM )companies. FMs work extensively in both the Public and Private sectors. Motivair service proposition (National Delivery footprint, single contact point, single engineering standard) fit well with FMs supply chain consolidation strategy, management see further future growth with this client set.

The emphasis on promoting longer contract lengths to clients in exchange for a fixed price with RPIX indexing has worked well with a number of key clients moving from an annual service renewal to a three year cycle, further protecting our revenue base.

Motivair utilise a broad supply chain via multiple vendors, due to our independence from an OEMs control we have maintained a robust supply of spare parts and new assets over the last 12 months. We are in regular dialogue with our supply chain and see this position continuing over the next 12 months.

Post pandemic we have several revenue and profit growth initiatives in place that should see Motivair grow or maintain its revenue and profit results for FY 22/23.

On behalf of the board:

J P Leach - Director

20 October 2022

The directors present their report with the financial statements of the company for the year ended 31 March 2022.

Principal activity

The principal activity of the company in the year under review was that of air compressor servicing, maintenance and repairs.

Dividends

No dividends will be distributed for the year ended 31 March 2022.

Directors

The directors shown below have held office during the whole of the period from 1 April 2021 to the date of this report.

J P Leach

I Beadle

J A V Sopher

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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.

Auditors

The auditors, Haines Watts Birmingham LLP, were appointed during the year and will be deemed to be re-appointed

under section 487(2) of the Companies Act 2006.

On behalf of the board:

J P Leach - Director

20 October 2022

Opinion

We have audited the financial statements of Motivair Compressors Limited (the 'company') for the year ended 31 March 2022 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2022 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; 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.

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 four, 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 framework applicable to both the company itself and the industry in which it operates. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience and through discussion with the directors and other management. The most significant were identified as the Companies Act 2006, UK GAAP (FRS102) and relevant tax legislation.

We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statements. Our audit procedures included, but were not limited to:

-

making enquires of directors and management as to where they consider there to be a susceptibility to fraud and whether they have any knowledge or suspicion of fraud;

-

obtaining an understanding of the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;

-

assessing the design effectiveness of the controls in place to prevent and detect fraud;

-

assessing the risk of management override including identifying and testing journal entries;

-

challenging the assumptions and judgements made by management in its significant accounting estimates.

Our audit did not identify any key audit matters relating to the detection of irregularities including fraud. However, despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls.

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.

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.

Andrew Hughes ACA (Senior Statutory Auditor)

for and on behalf of Haines Watts Birmingham LLP

5-6 Greenfield Crescent

Edgbaston

Birmingham

West Midlands

B15 3BE

25 October 2022

Turnover

3

13,014,033

11,614,144

Cost of sales

(5,429,118

)

(4,566,137

)

Gross profit

7,584,915

7,048,007

Distribution costs

(238,635

)

(242,629

)

Administrative expenses

(6,421,298

)

(6,472,081

)

924,982

333,297

Other operating income

1,776

-

Operating profit

5

926,758

333,297

Interest payable and similar expenses

6

(37,842

)

(52,118

)

Profit before taxation

888,916

281,179

Tax on profit

7

410,612

463,536

Profit for the financial year

1,299,528

744,715

Other comprehensive income

-

-

Total comprehensive income for the year

1,299,528

744,715

Fixed assets

Tangible assets

9

253,169

404,815

Investments

10

1

6,968

253,170

411,783

Current assets

Stocks

11

1,448,713

1,329,282

Debtors

12

2,436,140

2,605,398

Cash at bank and in hand

397,261

388,737

4,282,114

4,323,417

Creditors

Amounts falling due within one year

13

3,252,804

3,442,507

Net current assets

1,029,310

880,910

Total assets less current liabilities

1,282,480

1,292,693

Creditors

Amounts falling due after more than one year

14

370,765

1,680,506

Net assets/(liabilities)

911,715

(387,813

)

Capital and reserves

Called up share capital

18

5,250,991

5,250,991

Retained earnings

19

(4,339,276

)

(5,638,804

)

Shareholders' funds

911,715

(387,813

)

The financial statements were approved by the Board of Directors and authorised for issue on 20 October 2022 and were signed on its behalf by:

J P Leach - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2020

5,250,991

(6,383,519

)

(1,132,528

)

Changes in equity

Total comprehensive income

-

744,715

744,715

Balance at 31 March 2021

5,250,991

(5,638,804

)

(387,813

)

Changes in equity

Total comprehensive income

-

1,299,528

1,299,528

Balance at 31 March 2022

5,250,991

(4,339,276

)

911,715

1.	Statutory information

Motivair Compressors Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	Accounting policies

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting policies. It also requires management to exercise judgement in applying the Company's accounting policies.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Preparation of consolidated financial statements

The financial statements contain information about Motivair Compressors Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 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, Pettits Limited, Victoria House, Britannia Road, Waltham Cross, Hertfordshire, EN8 7NU.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

There are no key assumptions concerning the future, or other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Short leasehold

-

in accordance with the property

Plant and machinery

-

33% on cost and 10% on cost

Fixtures and fittings

-

33% on cost

Motor vehicles

-

25% on cost

Government grants

Grants are accounted for under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the profit and loss account at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.

Grants of a revenue nature are recognised in other operating income within profit or loss in the same period as the related expenditure. This includes the Government Coronavirus Job Retention Scheme (‘Furlough’).

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section12

'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.

Trade debtors , loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment. Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual

arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of

the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A mounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

3.

Turnover

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2022

2021

as restated

£

£

United Kingdom

12,962,097

11,498,852

Export sales

51,936

115,292

13,014,033

11,614,144

4.	Employees and directors

2022

2021

as restated

£

£

Wages and salaries

3,766,209

3,694,778

Social security costs

368,376

365,139

Other pension costs

148,520

160,731

4,283,105

4,220,648

The average number of employees during the year was as follows:

2022

2021

as restated

Office management

5

6

Trading and distribution

88

86

93

92

2022

2021

as restated

£

£

Directors' remuneration

252,510

191,252

Information regarding the highest paid director for the year ended 31 March 2022 is as follows:

2022

£

Emoluments etc

240,010

5.	Operating profit

The operating profit is stated after charging:

2022

2021

as restated

£

£

Other operating leases

134,622

148,260

Depreciation - owned assets

208,061

206,135

Auditors' remuneration

15,991

14,736

6.

Interest payable and similar expenses

2022

2021

as restated

£

£

Bank loan interest

37,842

52,118

7.

Taxation

Analysis of the tax credit

The tax credit on the profit for the year was as follows:

2022

2021

as restated

£

£

Current tax:

Research and development

(410,612

)

(463,536

)

Tax on profit

(410,612

)

(463,536

)

UK corporation tax has been charged at 19% (2021 - 19%).

Reconciliation of total tax credit included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2022

2021

as restated

£

£

Profit before tax

888,916

281,179

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2021 - 19%)

168,894

53,424

Effects of:

Expenses not deductible for tax purposes

1,633

-

Depreciation in excess of capital allowances

16,575

10,927

Adjustments to tax charge in respect of previous periods

-

(77,485

)

Research and development enhanced deduction

(1,135,757

)

(654,533

)

Utilisation of tax losses for research and development tax credit

538,043

204,131

Total tax credit

(410,612

)

(463,536

)

8.	Prior year adjustment

Impairment

A prior year adjustment has been made to retrospectively impair the investment in Central Compressor Consultants Limited by £2,514,837. The trade and assets of Central Compressor Consultants Limited were hived up into Motivair Compressors Limited in 2015, the year of acquisition, which resulted in goodwill on acquisition of £879,204 which has now been retrospectively impaired, backdated to 2015. Goodwill was recognised at group level in respect of the hive up of trade and assets and continues to be amortised within the group accounts.

9.	Tangible fixed assets

Fixtures

Short

Plant and

and

Motor

leasehold

machinery

fittings

vehicles

Totals

£

£

£

£

£

Cost

At 1 April 2021

277,965

871,468

485,359

160,349

1,795,141

Additions

-

-

56,415

-

56,415

At 31 March 2022

277,965

871,468

541,774

160,349

1,851,556

Depreciation

At 1 April 2021

139,716

724,233

366,103

160,274

1,390,326

Charge for year

14,681

146,961

46,419

-

208,061

At 31 March 2022

154,397

871,194

412,522

160,274

1,598,387

Net book value

At 31 March 2022

123,568

274

129,252

75

253,169

At 31 March 2021

138,249

147,235

119,256

75

404,815

10.	Fixed asset investments

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Central Compressor Consultants Limited

Registered office: Victoria House, Britannia Road, Waltham Cross, Hertfordshire, EN8 7NU

Nature of business: Hire and maintenance of high pressure compressors

Class of shares

% holding

Ordinary

100.00

2022

2021

£

£

Aggregate capital and reserves

(37,759

)

(18,829

)

Profit/(loss) for the year

(-

)

(19,470

)

11.

Stocks

2022

2021

as restated

£

£

Stocks

1,448,713

1,329,282

12.

Debtors: amounts falling due within one year

2022

2021

as restated

£

£

Trade debtors

1,980,983

1,933,395

Other debtors

20,096

98,626

Tax

312,580

450,402

Prepayments

122,481

122,975

2,436,140

2,605,398

13.

Creditors: amounts falling due within one year

2022

2021

as restated

£

£

Bank loans and overdrafts (see note 15)

710,648

250,000

Trade creditors

1,382,000

1,524,479

Social security and other taxes

125,492

131,249

VAT

256,307

547,642

Other creditors

425,765

541,359

Accruals and deferred income

352,592

447,778

3,252,804

3,442,507

14.

Creditors: amounts falling due after more than one year

2022

2021

as restated

£

£

Bank loans (see note 15)

35,419

700,000

Amounts owed to group undertakings

335,346

980,506

370,765

1,680,506

15.

Loans

An analysis of the maturity of loans is given below:

2022

2021

as restated

£

£

Amounts falling due within one year or on demand:

Bank loans

710,648

250,000

Amounts falling due between one and two years:

Bank loans - 1-2 years

10,648

700,000

Amounts falling due between two and five years:

Bank loans - 2-5 years

24,771

-

16.	Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:

2022

2021

as restated

£

£

Within one year

358,988

311,100

Between one and five years

654,430

918,885

In more than five years

97,623

167,903

1,111,041

1,397,888