Isothermal Technology Limited - Limited company accounts 23.2

Isothermal Technology Limited - Limited company accounts 23.2


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REGISTERED NUMBER: 01530620 (England and Wales)











STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

FOR

ISOTHERMAL TECHNOLOGY LIMITED

ISOTHERMAL TECHNOLOGY LIMITED (REGISTERED NUMBER: 01530620)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Cash Flow Statement 14

Notes to the Cash Flow Statement 15

Notes to the Financial Statements 16


ISOTHERMAL TECHNOLOGY LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MARCH 2023







DIRECTORS: Mrs I F Tavener
D Southworth
Mrs L Ousey
J Brown
N Davies
S J Tavener
S C Tavener





REGISTERED OFFICE: 14A Pine Grove
Southport
PR9 9AG





REGISTERED NUMBER: 01530620 (England and Wales)





AUDITORS: Harrison Latham & Company
Chartered Accountants
& Registered Auditor
97 Tulketh Street
Southport
PR8 1AW

ISOTHERMAL TECHNOLOGY LIMITED (REGISTERED NUMBER: 01530620)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

Isotech excels in the field of temperature metrology, focusing on the design, development, and manufacturing of precision temperature calibration equipment. Based in Southport, UK, our company serves a global market, extending its reach through an extensive network of distributors in over 125 countries.
We emphasize quality, customer service, and innovation in our product range. Our mission is to provide complete temperature metrology solutions for clients ranging from sole traders to National Metrology Institutes and multinational corporations.
Performance and quality have always been our priority, helping us earn an excellent reputation for our products. Over four decades of operation, we have received recognition in the form of several major awards.

REVIEW OF BUSINESS
As we reflect on the past year, it's evident that our strategic decisions and adaptations have not only sustained us but have also propelled our growth and resilience in the face of ongoing global challenges.

Benefit of Increased Stock Spending
We made a significant investment in increasing our stock levels, a decision that has yielded substantial benefits. This proactive approach ensured that our lead times remained consistent and, in many cases, surpassed those of our peers. The ability to deliver promptly and reliably in a climate where delays have become the norm has further solidified our reputation for efficiency and dependability in the temperature metrology sector. We are continuing to hold extra stock of critical components.

Major Product Development and Launch
A highlight of the year was the development and preview of a major new product at the prestigious ITS-10 international metrology conference in California. This event not only showcased our commitment to innovation but also positioned us at the forefront of the industry, capturing the attention of a global metrology audience. This was important as it's been the first truly global temperature metrology conference since the pandemic.

Completion of New R&D Projects
Our commitment to research and development has ramped up. We completed several R&D projects that were set to culminate in the launch of new, cutting-edge products throughout 2023. These developments are expected to further enhance our product portfolio and address evolving market needs.

Financial Stability and Future Outlook
The company maintains a robust financial standing, underscored by a strong head of orders and a healthy cash balance. This stability positions us well to navigate future challenges and seize opportunities. Since the pandemic we have seen new international tenders, and these will bear fruit in the next financial year when we will see record growth.
In summary, the past year has been one of investment in R&D and solidification of our market position. Our investments in stock, new product developments, and successful R&D initiatives not only reflect our adaptability and resilience but also set a strong foundation for sustained success in the coming years.


ISOTHERMAL TECHNOLOGY LIMITED (REGISTERED NUMBER: 01530620)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

PRINCIPAL RISKS AND UNCERTAINTIES
As we progress in an evolving business landscape, our focus is on effectively managing key risks that may impact our operations and financial health.

Inflation Concerns
Despite improved sales, rising costs due to inflation present a significant challenge, potentially affecting our margins and product pricing. However, forecasts indicating a possible decrease in inflation rates provide some reassurance, and we are adjusting our strategies in response to these economic trends.

Supply Chain Volatility
Ongoing global supply chain disruptions pose risks to our supply consistency and customer service efficiency. We are proactively enhancing our supply sources and implementing a major update to our inventory and financial management software to mitigate these issues.

Market Competition
The temperature metrology market is rapidly evolving with increased competition and technological advancements. We are committed to continuous innovation and research to stay ahead in this competitive environment.

Economic and Geopolitical Uncertainties
The global economic and geopolitical climate continues to be unpredictable. While these factors can influence market conditions and trade regulations, our diversified export strategy, covering over 125 countries, mitigates reliance on any single geographical area.

Conclusion
Acknowledging these risks, our commitment to innovation, operational efficiency, and strong financial foundations, including robust cash reserves and asset ownership, positions us well for sustained growth. This outlook is bolstered by record new orders placed since April 2023, underlining our resilience and potential for future success.

KEY PERFORMANCE INDICATORS

The director monitors the performance of the company on the following Key Performance Indicators (''KPIs'') - sales, profit margins, overall company profitability and cash generated.

2023 2022
Sales £5.64m £5.35m
Gross profit margin 44.2% 43.5%
Operating profit margin 8.3% 10.9%
Operating profits £0.47m £0.59m
Bank and cash balances at year end £3.2m £3.35m

ON BEHALF OF THE BOARD:





Mrs I F Tavener - Director


27 November 2023

ISOTHERMAL TECHNOLOGY LIMITED (REGISTERED NUMBER: 01530620)

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
Manufacturers and suppliers of temperature measuring equipment.

DIVIDENDS
Interim dividends per share were paid as follows:
Ordinary £1 shares £37.5 - 31 March 2023
Ordinary A shares £1 shares £37.5 - 31 March 2023


The directors recommend that no final dividends be paid.

The total distribution of dividends for the year ended 31 March 2023 will be £ 300,000 .

FUTURE DEVELOPMENTS
The company intends to continue with the policies that have proven to be successful so far and it will continue to search for opportunities to grow in the medium to long term.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report.

Mrs I F Tavener
D Southworth
Mrs L Ousey
J Brown
N Davies
S J Tavener
S C Tavener

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ISOTHERMAL TECHNOLOGY LIMITED (REGISTERED NUMBER: 01530620)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2023


AUDITORS
The auditors, Harrison Latham & Company, having indicated their willingness to continue in office, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mrs I F Tavener - Director


27 November 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ISOTHERMAL TECHNOLOGY LIMITED

Qualified opinion
We have audited the financial statements of Isothermal Technology Limited (the 'company') for the year ended 31 March 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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, except for the possible effects on the comparative income statement of the matter described in the basis of qualified opinion paragraph, 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 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 qualified opinion
We were not appointed as auditor of the company until after 31 March 2021 and thus did not observe the counting of physical inventories at the end of the year ended 31st March 2021. In the year ended 31st March 2021 we were unable to satisfy ourselves by alternative audit procedures the inventory quantities held at 31 March 2021, which amount to £3,524,747. The inventory at 31st March 2021 forms the opening balance for year ended 31st March 2022. Consequently, we were unable to determine whether any adjustment to this amount was necessary, which would affect the comparative income statement.

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 qualified 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ISOTHERMAL TECHNOLOGY LIMITED


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.



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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ISOTHERMAL TECHNOLOGY LIMITED


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:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

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
ISOTHERMAL TECHNOLOGY 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.




Neil Latham (Senior Statutory Auditor)
for and on behalf of Harrison Latham & Company
Chartered Accountants
& Registered Auditor
97 Tulketh Street
Southport
PR8 1AW

27 November 2023

ISOTHERMAL TECHNOLOGY LIMITED (REGISTERED NUMBER: 01530620)

INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023

31.3.23 31.3.22
Notes £    £    £    £   

TURNOVER 5,637,265 5,347,380

Cost of sales 3,143,427 3,020,140
GROSS PROFIT 2,493,838 2,327,240

Distribution costs 60,061 42,310
Administrative expenses 2,007,688 1,696,140
2,067,749 1,738,450
426,089 588,790

Other operating income 37,477 2,220
OPERATING PROFIT 4 463,566 591,010

Interest receivable and similar income 5,279 221
468,845 591,231

Interest payable and similar expenses 5 91 7,722
PROFIT BEFORE TAXATION 468,754 583,509

Tax on profit 6 47,786 (230,523 )
PROFIT FOR THE FINANCIAL YEAR 420,968 814,032

ISOTHERMAL TECHNOLOGY LIMITED (REGISTERED NUMBER: 01530620)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023

31.3.23 31.3.22
Notes £    £   

PROFIT FOR THE YEAR 420,968 814,032


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

420,968

814,032

ISOTHERMAL TECHNOLOGY LIMITED (REGISTERED NUMBER: 01530620)

BALANCE SHEET
31 MARCH 2023

31.3.23 31.3.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 785,407 805,275

CURRENT ASSETS
Stocks 9 3,438,057 3,371,445
Debtors 10 1,163,466 945,755
Cash at bank and in hand 3,201,778 3,353,156
7,803,301 7,670,356
CREDITORS
Amounts falling due within one year 11 678,403 683,101
NET CURRENT ASSETS 7,124,898 6,987,255
TOTAL ASSETS LESS CURRENT
LIABILITIES

7,910,305

7,792,530

PROVISIONS FOR LIABILITIES 13 7,335 10,528
NET ASSETS 7,902,970 7,782,002

CAPITAL AND RESERVES
Called up share capital 14 8,000 8,000
Retained earnings 15 7,894,970 7,774,002
SHAREHOLDERS' FUNDS 7,902,970 7,782,002

The financial statements were approved by the Board of Directors and authorised for issue on 27 November 2023 and were signed on its behalf by:





Mrs I F Tavener - Director


ISOTHERMAL TECHNOLOGY LIMITED (REGISTERED NUMBER: 01530620)

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 8,000 7,259,970 7,267,970

Changes in equity
Dividends - (300,000 ) (300,000 )
Total comprehensive income - 814,032 814,032
Balance at 31 March 2022 8,000 7,774,002 7,782,002

Changes in equity
Dividends - (300,000 ) (300,000 )
Total comprehensive income - 420,968 420,968
Balance at 31 March 2023 8,000 7,894,970 7,902,970

ISOTHERMAL TECHNOLOGY LIMITED (REGISTERED NUMBER: 01530620)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023

31.3.23 31.3.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 273,211 671,876
Interest paid (91 ) (7,722 )
Tax paid (112,582 ) (320,196 )
Net cash from operating activities 160,538 343,958

Cash flows from investing activities
Purchase of tangible fixed assets (17,195 ) (69,125 )
Interest received 5,279 221
Net cash from investing activities (11,916 ) (68,904 )

Cash flows from financing activities
Equity dividends paid (300,000 ) (300,000 )
Net cash from financing activities (300,000 ) (300,000 )

Decrease in cash and cash equivalents (151,378 ) (24,946 )
Cash and cash equivalents at beginning of
year

2

3,353,156

3,378,102

Cash and cash equivalents at end of year 2 3,201,778 3,353,156

ISOTHERMAL TECHNOLOGY LIMITED (REGISTERED NUMBER: 01530620)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
31.3.23 31.3.22
£    £   
Profit before taxation 468,754 583,509
Depreciation charges 37,063 37,764
Government grants - (1 )
Finance costs 91 7,722
Finance income (5,279 ) (221 )
500,629 628,773
(Increase)/decrease in stocks (66,612 ) 153,302
Increase in trade and other debtors (217,711 ) (178,564 )
Increase in trade and other creditors 56,905 68,365
Cash generated from operations 273,211 671,876

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2023
31.3.23 1.4.22
£    £   
Cash and cash equivalents 3,201,778 3,353,156
Year ended 31 March 2022
31.3.22 1.4.21
£    £   
Cash and cash equivalents 3,353,156 3,378,102


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.22 Cash flow At 31.3.23
£    £    £   
Net cash
Cash at bank and in hand 3,353,156 (151,378 ) 3,201,778
3,353,156 (151,378 ) 3,201,778
Total 3,353,156 (151,378 ) 3,201,778

ISOTHERMAL TECHNOLOGY LIMITED (REGISTERED NUMBER: 01530620)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1. STATUTORY INFORMATION

Isothermal Technology 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.

The presentation currency of the financial statements is the Pound Sterling (£).


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.

Turnover
The company recognises a sale when all the risks and rewards of ownership of the goods pass from the company to the customer, this is considered to be the date of dispatch.

Where the company receives payment in advance of goods being dispatched, the sale is deferred in the balance sheet as deferred income and is included within creditors amounts falling due within one year.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on reducing balance
Plant and machinery - 25% on reducing balance
Fixtures and fittings - 25% on reducing balance
Computer equipment - 33% on cost

Stocks & work in progress
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Costs comprise those costs incurred by the company in bringing the stocks to the location and condition intended by management and are calculated on a first-in first-out basis. Estimated selling price less costs to complete and sell is based on the estimated selling price in an arm's length transaction less any estimated completion or selling costs that will be expected to be incurred in the transaction. Work in progress is valued using the percentage of completion method and values are calculated using the lower of cost and estimated selling price less costs to complete and sell. When stocks are sold, the carrying amount of those stocks is recognised as an expense within cost of sales. This takes place in the same period that the associated revenue is recognised. At each balance sheet date, the directors undertake a review of its stock and work in progress to establish if any stock or work in progress is slow-moving or has become obsolete. Where any write-downs of stock become necessary so as to reduce the value from cost to estimated selling price less costs to complete and sell, such write-downs are recognised as an expense in profit or loss in the period in which the write-down or loss occurs. Where such write-downs subsequently reverse, the amount of any reversal is recognised as a reduction in the amount of stocks recognised as an expense in the period in which the reversal occurs.

Financial instruments
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument. Basic financial assets, which include debtors, prepayments and bank balances, are initially measured at transaction price and are subsequently carried at cost unless the arrangement indicates otherwise and then the asset is measured at the present value of the future receipts discounted at a market rate of interest. Basic financial liabilities, which include creditors, accruals, loans and group borrowings, are initially recognised at transaction price and are subsequently carried at cost unless the arrangement indicates otherwise and then the liability is measured at the present value of the future obligations discounted at a market rate of interest.


ISOTHERMAL TECHNOLOGY LIMITED (REGISTERED NUMBER: 01530620)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.


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.

3. EMPLOYEES AND DIRECTORS
31.3.23 31.3.22
£    £   
Wages and salaries 2,016,153 1,789,071
Social security costs 220,654 179,812
Other pension costs 52,996 48,821
2,289,803 2,017,704

The average number of employees during the year was as follows:
31.3.23 31.3.22

Manufacturing 30 30
Administration 24 24
54 54

31.3.23 31.3.22
£    £   
Directors' remuneration 618,556 377,129
Directors' pension contributions to money purchase schemes 10,383 7,962

ISOTHERMAL TECHNOLOGY LIMITED (REGISTERED NUMBER: 01530620)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

3. EMPLOYEES AND DIRECTORS - continued

Information regarding the highest paid director is as follows:
31.3.23 31.3.22
£    £   
Emoluments etc 130,301 96,001
Pension contributions to money purchase schemes 2,599 -

4. OPERATING PROFIT

The operating profit is stated after charging:

31.3.23 31.3.22
£    £   
Depreciation - owned assets 37,063 37,763
Auditors' remuneration 7,500 8,400
Operating lease rentals 17,492 21,337
Research & development 18,487 19,932

5. INTEREST PAYABLE AND SIMILAR EXPENSES
31.3.23 31.3.22
£    £   
Interest paid on tax paid late 91 7,722

6. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the year was as follows:
31.3.23 31.3.22
£    £   
Current tax:
UK corporation tax 50,979 111,737
Overprovision for earlier year
s - (344,266 )
Total current tax 50,979 (232,529 )

Deferred tax (3,193 ) 2,006
Tax on profit 47,786 (230,523 )

7. DIVIDENDS
31.3.23 31.3.22
£    £   
Ordinary shares of £1 each
Interim 264,000 300,000
Ordinary A shares shares of £1 each
Interim 36,000 -
300,000 300,000

ISOTHERMAL TECHNOLOGY LIMITED (REGISTERED NUMBER: 01530620)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

8. TANGIBLE FIXED ASSETS
Fixtures
Freehold Plant and and Computer
property machinery fittings equipment Totals
£    £    £    £    £   
COST
At 1 April 2022 967,918 761,708 268,043 8,739 2,006,408
Additions - 12,162 2,224 2,809 17,195
At 31 March 2023 967,918 773,870 270,267 11,548 2,023,603
DEPRECIATION
At 1 April 2022 226,270 707,098 263,509 4,256 1,201,133
Charge for year 14,832 16,693 1,689 3,849 37,063
At 31 March 2023 241,102 723,791 265,198 8,105 1,238,196
NET BOOK VALUE
At 31 March 2023 726,816 50,079 5,069 3,443 785,407
At 31 March 2022 741,648 54,610 4,534 4,483 805,275

9. STOCKS
31.3.23 31.3.22
£    £   
Raw materials 2,776,903 2,447,183
Work in progress 661,154 924,262
3,438,057 3,371,445

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.3.23 31.3.22
£    £   
Trade debtors 1,006,178 899,410
Other debtors 6,434 30,868
Prepayments 150,854 15,477
1,163,466 945,755

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.3.23 31.3.22
£    £   
Trade creditors 242,312 316,849
Corporation tax 50,979 112,582
Social security and other taxes 173,785 76,767
VAT - 54
Other creditors 111,419 37,538
Accruals and deferred income 99,908 139,311
678,403 683,101

ISOTHERMAL TECHNOLOGY LIMITED (REGISTERED NUMBER: 01530620)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

12. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.3.23 31.3.22
£    £   
Within one year - 2,782

13. PROVISIONS FOR LIABILITIES
31.3.23 31.3.22
£    £   
Deferred tax
Accelerated capital allowances 7,335 10,528

Deferred
tax
£   
Balance at 1 April 2022 10,528
Credit to Income Statement during year (3,193 )
Balance at 31 March 2023 7,335

14. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.3.23 31.3.22
value: £    £   
7,040 Ordinary £1 7,040 8,000
960 Ordinary A shares £1 960 -
8,000 8,000

15. RESERVES
Retained
earnings
£   

At 1 April 2022 7,774,002
Profit for the year 420,968
Dividends (300,000 )
At 31 March 2023 7,894,970

16. PENSION COMMITMENTS

The company operates a defined contribution retirement benefit scheme for all its qualifying employees. The total expense charged to profit or loss in the year to 31 March 2023 was £52,996 (2022: £48,821).
Pension contributions outstanding at 31st March 2023 were £12,734 (2022: £9,425)

17. RELATED PARTY DISCLOSURES

During the year, total dividends of £300,000 (2022 - £300,000) were paid to the directors .

During the year rent of £14,400 (2022: £14,400) was paid to Mrs I F Tavener - Director

ISOTHERMAL TECHNOLOGY LIMITED (REGISTERED NUMBER: 01530620)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

17. RELATED PARTY DISCLOSURES - continued

During the year, a total of key management personnel compensation of £ 628,939 (2022 - £ 441,915 ) was paid.

18. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Mrs I F Tavener (Director).