TIDMSTG
RNS Number : 8742B
Strip Tinning Holdings PLC
07 June 2023
07 June 2023
Strip Tinning Holdings plc
("Strip Tinning" or the "Company")
Annual Results for year ended 31 December 2022
Strip Tinning Holdings plc (AIM: STG), a leading supplier of
specialist connectors to the automotive sector, is pleased to
announce its full year results for the year ended 31 December
2022.
2022 has been a transitional year for the Company, executed
against a very challenging business environment which was heralded
by Russia's invasion of the Ukraine, which started just six days
after the Company's admission to AIM. Strip Tinning has emerged
stronger and leaner and has maintained its core investment
programmes despite the disappointing FY 22 results.
FY23 developments and market outlook:
-- EBITDA positive for each of the first five months of FY 23
and the Board is confident in meeting market expectations for FY
23(1)
-- Growing pipeline of EV opportunities
o New order worth GBP0.8m for sample cell contact system modules
from the Company's leading EV customer announced in April
o New opportunities for serial production nominations and a
growing number of new leads
-- Strong glazing order book showing greater resilience than originally expected for FY 23
-- Improving prospects for the automotive light vehicle markets,
seeing positive growth as the threat of recession diminishes,
supply chain shortages ease and pent-up demand is satisfied
-- The Board is confident of a return to revenue growth in FY
24, with high exposure to the fast-growing EV space both through
our glazing products and our products for EV battery packs
FY22 Financial highlights:
-- Total Revenues of GBP10.2m (FY 21: GBP11.2m)
-- EV product sales trebled to GBP1.3m (FY 21: GBP0.4m)
-- Glazing product sales of GBP8.9m (FY 21: GBP10.8m)
-- Adjusted EBITDA loss of GBP2.2m (FY 21: GBP0.5m profit)
-- Cash of GBP1.3m (FY 21: GBP0.3m)
FY22 Operational highlights:
-- Increased EV sales highlight the continuing focus of vehicle
manufacturers on electric ranges, a continuing trend from which the
Company is well-positioned to benefit
-- Prudent action taken to accelerate the capture of the EV
opportunity as well as profitability in Glazing, with investment
into people, operations and products
-- Robust action taken on Glazing product prices to ensure that
the Company returns to profitability despite strong inflationary
cost pressures
-- New and improved products, product launch and production
processes to the benefit of both customers and the Company
-- GBP1.4m grant won during FY 22 to support production scale up of the EV business
-- Improved productivity, helping to alleviate pressures from labour market constraints
-- Strengthened management team with extensive experience within
the sector, from which the business is already benefitting
-- Uptick in EV performance driven by multiple development programmes and production orders
Richard Barton, Group Chief Executive Officer of Strip Tinning,
commented: "We are pleased that trading in each of the first five
months of FY 23 has been EBITDA positive, representing a
significant turn-around from the losses of 2022, deriving primarily
from action taken during the prior period. We are highly exposed to
the fast-growing EV sector and we are benefitting from our glazing
order book showing greater resilience for 2023 than expected. The
improving market outlook and growing pipeline of opportunities is
providing the Group with a firm foundation on which to return to a
growth trajectory."
Strip Tinning will be hosting a webinar for private investors on
Friday 9(th) June 2023 at 13:00. If you would like to register for
the webinar, please click the link below:
https://www.investormeetcompany.com/strip-tinning-holdings-plc/register-investor
(1) Strip Tinning understands that market expectations for the
year ended 31 December 2023 are for revenues of GBP9.4m, Adjusted
EBITDA of GBP0.1 m and net cash/debt of -GBP3.6m. (Source:
FactSet)
Enquiries:
Strip Tinning Holdings plc Via Alma PR
Richard Barton, Chief Executive Officer
Adam Le Van, Chief Financial Officer
Singer Capital Markets (Nominated Adviser and Sole Broker) +44 (0) 20 7496 3000
Rick Thompson
James Fischer
Alma PR (Financial PR) striptinning@almapr.co.uk
Josh Royston +44 (0) 20 3405 0205
Joe Pederzolli
A copy of this announcement, together with the Annual Report and
Accounts will be available to view on the Company's website in due
course at www.striptinning.com .
Chairman's statement
Although since coming to market we have been hampered by market
conditions we could not have foreseen, we can take a great deal of
pride in the way in which we have responded to market headwinds and
emerged as a leaner organisation. While this set of financial
results is far from what we had hoped for, we can look to the
future with optimism as a result of the action taken during the
period under review.
I would like to take this opportunity to thank all the employees
of Strip Tinning who have worked exceptionally hard this year to
achieve a significant financial and operational turnaround of the
business, and to prepare it for renewed growth moving forwards. We
were delighted to be able to reward our staff for their loyalty and
hard work last October with the Issue of Shares under our SIP
scheme, which had been a longstanding ambition of the Board,
creating shared ownership of the business among key employees.
I would also like to thank all our shareholders in Strip Tinning
for backing the business at IPO and for their pragmatic response to
the vastly different set of results from those we were all working
towards at the point of the IPO.
Our vastly experienced Board has proven of immense value during
the year, positioning the business to be better positioned to take
advantage of recovery and the continued opportunities Strip Tinning
sees in its markets. As might be expected, in order to address the
adverse trading environment, the Board has met at-least monthly
throughout the year, and in August I was delighted to take up my
current position as Executive Chair. I look forward to continuing
in my position and driving the Company back towards growth.
Looking to the future, we look forward to capitalising on the
increasing momentum we are seeing across the business, and whilst
we continue to remain highly vigilant of the wider macro-economic
environment, we are increasingly confident of a year of progress in
FY23.
Adam Robson
Executive Chairman
Chief Executive Officer's Report
2022 has been a transitional year for the Company, executed
against a very challenging business environment which was heralded
by Russia's invasion of the Ukraine, which started just six days
after the Company's admission to AIM . I am proud the way the
business has responded to the most turbulent time in trading. The
challenges we faced have meant that this year the Company has
delivered its worst financial results in its 60 year history but,
at the same time, it has emerged stronger and leaner, and has
maintained its core investment programmes. The results of these
changes are already being seen; the Company has delivered a
positive adjusted EBITDA in all its unaudited monthly results for
2023 and the Board is confident that the Company will return to
revenue growth in 2024.
Business Environment
The Company's products are used in the production of all classes
of automotive light vehicles, but predominantly for passenger cars
made in Europe where ACEA reported that car production fell by 1.6%
in 2022. Having started the year relatively strongly, albeit off a
low base caused by the global shortages of chips, production
softened further following Russia's invasion of the Ukraine. This
directly led to a collapse of car production in Russia (which at
the time accounted for 15% of Strip Tinning's sales through it is
Tier 1 customers) and a knock-on decline in production across
Europe due to supply chain disruptions for the Ukraine in
particular. This subsequently triggered a fall in demand for the
Company's products.
At the same time as transitioning to being a listed business,
the war in the Ukraine as well as other headwinds arising from the
COVID pandemic presented numerous challenges to the Company. We
also faced the specific major setback in August 2022 of the
cancellation of our EV volume nomination for the supply of a Cell
Contacting Management System (CCMS) to a leading German OEM by the
electric vehicle technology innovator making the battery packs.
This was an undoubted disappointment for the EV division as the
contract acted as a validation of the Strip Tinning EV product
offering. The business has worked hard to reach a fair and
acceptable settlement (which is close to being finalised) and has
ensured that the correct lessons have been learnt. The resulting
changes are now bearing fruit in the new programmes we have in our
sales pipeline.
Business improvements completed during 2022
In the face of the aforementioned challenges, the Company had to
focus down on achieving very material improvements in a number of
key areas, which it successfully did. These were:
-- Management team - we are fortunate to have recruited a new
Managing Director, Mark Perrins, who brings with him a proven
automotive track record in operational turnarounds. Mark has
developed a highly performing senior leadership team from existing
and new managers. This team has driven through the improvements
already achieved and is now taking the business forward towards
growth and improving margins.
-- New and improved products, product launch and production
processes to the benefit of both customers and the Company.
-- EV product sales trebled to GBP1.25m (2021: GBP0.4m) on the
back of multiple development programmes and production orders.
-- On time deliveries have improved with ERP improvements and
arrears have been eliminated. Our new SAP ERP will be fully
functional by the end of 2023.
-- Productivity has improved greatly thanks to the hard work and
support of all our employees. The Glazing connector factory layout
had been completely relocated and reorganised to optimise process
flow and improve quality. Sales per head in Q1 2023 is now 20.3%
higher than it was in Q1 2022. This has also helped to alleviate
pressures from labour market constraints.
-- Supplier management and development have become even more
critical in the new environment, with suppliers imposing on us
unprecedented lead-times and price increases. We have strengthened
our supplier management team and invested to develop new suppliers,
notably on supply of copper materials where we have an industry
leading position.
-- Energy consumption has been a focus in pursuit of both
off-setting energy price inflation and reducing our carbon
footprint. Improved productivity and investment to eliminate
capacity bottlenecks has allowed us to end night shift working and
this in particular has helped to reduce energy consumption.
Whilst achieving all of the above, we have maintained a
strategic focus on our long-term growth objectives, most important
of which is our entry into the rapidly growing market for CCMS for
use in the battery packs of Electric Vehicles (EVs). We have
supplied CCMS on to a number of production vehicles and this proof
of our capabilities has allowed us to build credibility and we now
have a strong pipeline of much larger programmes for which we are
already delivering sample parts. We expect the first of these to
turn into a volume production nomination later in 2023. This sales
pipeline is also being supported by an investment of over GBP2
million in a CCMS production line which will have capacity to
produce up to 220,000 units per annum.
We were delighted to win during 2022 a grant from the Advanced
Propulsion Centre (APC) Scale-up Readiness Validation (SuRV)
competition worth up to GBP1.4 million. This grant is being
received via six quarterly drawdowns covering the period to end of
January 2024. This grant has made a valuable contribution to our
cash position which we have further strengthened through improved
terms and collection of receivables form our customers and greater
control of our stocks.
Finally, with the support of our customers during the period, we
raised our Glazing product prices to reflect the pressures felt by
all businesses trading internationally. Customers have engaged
constructively with our price increases, and appreciate Strip
Tinning's commitment to remain a strong, long-term supplier in the
Glazing market. That said, with a strong focus on profitable
production, it has not made sense to continue to supply all the
products manufactured in 2022. These changes have made a very
material difference to our profitability in 2023, as seen in the
much-improved financial results announced to date.
The elimination of low margin products does mean that Glazing
product sales in 2023 are forecast to decline but we believe that
we retain the support of our customers and we expect that we will
see a return to sales growth in 2024. We are committed to growing
both our core Glazing products (used to connect the electronic
functions embedded within the glass panels of automotive vehicles
and occasionally other applications such as buildings) and our new
EV related products. Our pipeline of sales opportunities is growing
in both market segments. We were particularly pleased to announce
in March a new order for a large number of sample CCMS modules from
our leading EV customer, supplying into the autonomous vehicle
industry in the USA. The order reflects the ongoing strength of the
relationship between both parties and the significant progress
being made by the end user towards commercialisation, having
already received the necessary regulatory approvals. The value of
the order is c.GBP775k, with the majority of the parts expected to
be shipped in 2023 and the Company anticipates next receiving
C-sample orders as a result. The order is a strong endorsement of
Strip Tinning's offering and underpins the Company's
well-established reputation as a supplier of cell contact systems
to the fast-growing EV space.
ESG
In January 2023 Strip Tinning was pleased to receive
confirmation from Integrum that it has maintained its best-in-class
A grade ESG rating, first obtained at the time of the IPO.
Outlook
Whilst the FY22 result is not what the Board had originally set
out to achieve for shareholders at the start of the financial year,
it nevertheless believes that material progress has been in 2022
which will bear fruit in the medium term. In the year ahead,
automotive light vehicle markets are expected to see positive
growth as the threat of recession diminishes, supply chain
shortages ease and pent-up demand is satisfied. According to ACEA^,
European passenger car production has growth17.8% in the first 5
months of 2023 compared to the same period in 2022 and the EV
growth rate has been 45.1%, representing 12% of the total market.
We are fortunate to have a strong and diverse base of end-user OEM
customers and good exposure to the fast- growing EV sector, both
through our glazing products and our products for EV battery packs.
In 2023 the Company is expecting to make over 30% of all its sales
into electric and hybrid vehicles, and growth for this market is
forecast to remain very strong driving high demand in particular
for the new EV battery related products manufactured by the Company
(1) .
Despite the challenging macroeconomic outlook, the business has
delivered a small adjusted EBITDA profit in the first five months
of the current year and a full year adjusted EBITDA profit is
expected to be achieved in total. This outlook puts the business
onto a sound footing for greater success in 2024. The Company is
able to manage its cash requirements whilst maintaining EV and
Glazing investment plans to build capacity, improve capabilities
and drive productivity. Strip Tinning is confident that these
investments, coupled with strong customer relationships, will lead
to valuable new supply nominations in 2023, taking the Company back
to growth in 2024.
(1)
https://www.acea.auto/pc-registrations/new-car-registrations-17-2-in-april-battery-electric-11-8-market-share/
R W Barton
Chief Executive Officer
Consolidated statement of comprehensive income
for the year ended 31 December 2022
Note 2022 2021
GBP'000 GBP'000
------------------------------------------- ---- -------- --------
Revenue 3 10,230 11,150
Cost of sales (9,731) (7,872)
------------------------------------------- ---- -------- --------
Gross profit 499 3,278
Other operating income 4 439 31
Administrative expenses 4 (5,864) (4,213)
Impairment loss 4 (577) -
------------------------------------------- ---- -------- --------
Operating loss 4 (5,503) (904)
Finance expense 6 (147) (158)
Loss before taxation (5,650) (1,062)
Taxation 7 725 237
------------------------------------------- ---- -------- --------
Loss and total comprehensive expense
for the financial year (4,925) (825)
------------------------------------------- ---- -------- --------
Basic and diluted loss per share (pence) 8 (33.7) (8.25)
------------------------------------------- ---- -------- --------
All amounts relate to continuing operations.
There is no other comprehensive income in either the current or
prior year.
Under the merger accounting principles applied, the statement
includes the results of the company and its subsidiary as if they
had been combined throughout the current and prior year.
Consolidated statement of financial position as at 31 December
2022
Note 31 December 31
2022 December
2021
GBP'000 GBP'000
----------------------------------- ---- ------------- ----------
Assets
Non current assets
Intangible assets 9 1,277 1,561
Right-of-use assets 10 1,151 1,142
Property, plant and equipment 11 2,950 3,089
5,378 5,792
Current assets
Inventories 13 1,848 2,014
Trade and other receivables 14 3,381 3,778
Tax recoverable 559 279
Cash at bank and in hand 1,290 337
----------------------------------- ---- ------------- ----------
7,078 6,408
----------------------------------- ---- ------------- ----------
Total assets 12,456 12,200
----------------------------------- ---- ------------- ----------
Liabilities
Current liabilities
Trade and other payables 15 (3,045) (4,413)
Borrowings 16 (553) (559)
Lease liabilities 17 (182) (152)
----------------------------------- ---- ------------- ----------
(3,780) (5,124)
----------------------------------- ---- ------------- ----------
Non current liabilities
Accruals and deferred income 15 (37) (162)
Borrowings 16 (992) (1,235)
Lease liabilities 17 (995) (1,104)
Provisions 20 (227) -
Deferred taxation 21 - (338)
(2,251) (2,839)
----------------------------------- ---- ------------- ----------
Total liabilities (6,031) (7,963)
----------------------------------- ---- ------------- ----------
Net assets 6,425 4,237
----------------------------------- ---- ------------- ----------
Equity
Called up share capital 22 154 -
Share premium account 22 6,966 -
Merger reserve 22 (100) -
Other reserve 22 (3) -
Accumulated loss/retained earnings (592) 4,237
----------------------------------- ---- ------------- ----------
Total equity 6,425 4,237
----------------------------------- ---- ------------- ----------
These financial statements were approved and authorised for
issue by the board on 6 June 2023 and were signed on its behalf
by:
A Le Van
Director
Strip Tinning Holdings plc Registered number: 13832126
Company statement of financial position as at 31 December
2022
Note 31 December
2022
GBP'000
---------------------------- ---- -------------
Assets
Non current assets
Investments 12 3,841
Current assets
Trade and other receivables 14 5,791
Cash at bank and in hand 414
---------------------------- ---- -------------
6,205
---------------------------- ---- -------------
Total assets 10,046
---------------------------- ---- -------------
Liabilities
Current liabilities
Trade and other payables 15 (67)
---------------------------- ---- -------------
Total liabilities (67)
---------------------------- ---- -------------
Net assets 9,979
---------------------------- ---- -------------
Equity
Called up share capital 22 154
Share premium account 22 6,966
Merger reserve 22 3,645
Other reserve 22 (3)
Accumulated loss (783)
---------------------------- ---- -------------
Total equity 9,979
---------------------------- ---- -------------
As permitted by section 408 of the Companies Act 2006, the
parent Company's profit and loss account has not been included in
these financial statements. The Company recorded a loss for the
period from incorporation to 31 December 2022 of GBP879,000.
Consolidated statement of changes in equity for the year ended
31 December 2022
Share Merger Other
Called premium reserve reserve Accumulated Total
up share account loss Equity
capital GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
GBP'000
----------------------------- ---------- -------- -------- -------- ------------- ---------
Balance as at 1 January
2021 - - - - 5,104 5,104
Loss and total comprehensive
expense for the financial
year - - - - (825) (825)
Share based payment
(note 23) - - - - 145 145
Share options deferred
tax credit - - - - 225 225
Dividends paid (by Strip
Tinning Limited) - - - - (412) (412)
----------------------------- ---------- -------- -------- -------- ------------- ---------
Total contributions
by owners - - - - (42) (42)
Balance as at 31 December
2021 - - - - 4,237 4,237
Loss and total comprehensive
expense for the financial
year - - - - (4,925) (4,925)
Share based payment
(note 22, 23) - - - (3) 96 93
Capital reorganisation
(note 22) 100 - (100) - - -
Issue of share capital
(note 22) 54 6,966 - - - 7,020
----------------------------- ---------- -------- -------- -------- ------------- ---------
Total contributions
by owners 54 6,966 - (3) 96 7,113
Balance as at 31 December
2022 154 6,966 (100) (3) (592) 6,425
----------------------------- ---------- -------- -------- -------- ------------- ---------
Company statement of changes in equity for the year ended 31
December 2022
Share Merger Other Accumulated Total
Called premium reserve reserve loss equity
up share account GBP'000 GBP'000
capital GBP'000 GBP'000 GBP'000
GBP'000
----------------------------- ---------- -------- -------- -------- ----------- --------
On incorporation - - - - - -
Loss and total comprehensive
expense for the financial
year - - - - (879) (879)
Issue of share capital
in exchange for Strip
Tinning Limited shares
(note 22) 100 - 3,645 - - 3,745
Issue of share capital
(note 22) 54 6,966 - - - 7,020
Share based payment (note
22, 23) - - - (3) 96 93
----------------------------- ---------- -------- -------- -------- ----------- --------
Total contributions by
owners 154 6,966 3,645 (3) - 10,858
Balance as at 31 December
2022 154 6,966 3,645 (3) (783) 9,979
----------------------------- ---------- -------- -------- -------- ----------- --------
Consolidated cash flow statement for the year ended 31 December
2022
2022 2021
GBP'000 GBP'000
----------------------------------------------- --- -------- --------
Cash flow from operating activities
Loss for the financial year (4,925) (825)
Adjustment for:
Depreciation of property, plant and
equipment 11 592 561
Depreciation of right-of-use assets 10 203 160
Amortisation of intangible assets 9 180 191
Impairment of intangible fixed assets 9 577 -
Loss on disposal of tangible fixed assets 55 -
Foreign exchange movements (9) -
Amortisation of government grants (49) (31)
IPO financing related costs in administrative 314 -
expenses
Share based payment 23 96 145
Finance costs 6 147 158
Taxation credit 7 (725) (237)
Changes in working capital :
Decrease/(increase) in inventories 13 166 (492)
Decrease/(increase) in trade and other
receivables 14 397 (1,605)
(Decrease)/increase in trade and other
payables 15 (1,309) 3,022
Cash (used in)/generated from operations (4,290) 1,047
Income tax received 107 24
----------------------------------------------- --- -------- --------
Net cash (used in)/generated from operating
activities (4,183) 1,071
----------------------------------------------- --- -------- --------
Cash flows from investing activities
Purchase of property, plant and equipment 11 (508) (737)
Proceeds on disposal of intangible fixed 15 -
assets
Purchase of intangible assets 9 (488) (732)
Net cash used in investing activities (981) (1,469)
----------------------------------------------- --- -------- --------
Cash flows from financing activities
Issue of share capital 22 8,094 -
Share issue costs paid 22 (1,077) -
Dividends paid to shareholders (by Strip
Tinning Limited) - (412)
IPO financing related costs paid (314) -
Interest paid (147) (158)
Payment of lease liabilities (199) (136)
Loan advanced - 355
Hire purchase finance received 311 401
Loan repayments (73) -
Repayment of capital element of hire
purchase contracts (487) (545)
Net cash generated from/(used in) financing
activities 6,108 (495)
----------------------------------------------- --- -------- --------
Net increase/(decrease) in cash and
cash equivalents 944 (893)
Cash and cash equivalents at the beginning
of the year 337 1,230
Foreign exchange movements 9 -
Cash and cash equivalents at the end
of the year (all cash at bank and in
hand) 1,290 337
----------------------------------------------- --- -------- --------
Notes to the financial statements
for the year ended 31 December 2022
1 Corporate information
Strip Tinning Holdings plc is a public company incorporated in
the United Kingdom and listed on the Alternative Investment Market.
The registered address of the Company is Arden Business Park, Arden
Road, Frankley Birmingham, West Midlands, B45 0JA.
The principal activity of the Company is as a holding company
for a subsidiary which manufactures automotive busbar, ancillary
connectors and flexible printed circuits (together the
'Group').
2 Accounting policies
Basis of preparation
The Group financial statements have been prepared in accordance
with UK adopted international accounting standards ("IFRS") and in
accordance with the requirements of the Companies Act 2006.
The parent Company financial statements have been prepared under
applicable United Kingdom Financial Reporting Standards 101:
Reduced Disclosure Framework ("FRS101") and the requirements of the
Companies Act 2006. The following FRS 101 disclosure exemptions
have been taken in respect of the parent Company only
information:
-- IAS 7 Statement of cash flows;
-- IFRS 7 Financial instruments disclosures and;
-- IAS 24 Key management remuneration.
The principal accounting policies applied in the preparation of
these consolidated and separate financial statements are set out
below. These policies have been consistently applied to all the
years presented, unless otherwise stated. There are no changes as a
result of revised standards to the policies applied by Strip
Tinning Limited in its 2021 financial statements.
The financial statements have been prepared under the historical
cost convention. The financial statements and the accompanying
notes are presented in thousands of pounds sterling ('GBP'000'),
the functional and presentation currency of the Company, except
where otherwise indicated.
Going concern
After making appropriate enquiries, the directors have a
reasonable expectation that the Company and the Group have adequate
resources to continue in operational existence for at least twelve
months from the date of approval of the financial statements. In
adopting the going concern basis for preparing the financial
statements, the directors have considered a base case going concern
model and then modelled a series of severe but plausible downside
scenarios such as reductions in sales from potential conflicts,
reduced market demand for the company products, material price
increases, the loss of a major customer, or an unfavourable
settlement of the remaining liability associated with the
termination of the EV contract. The results of this stress testing
suggested that with the financing arrangements available to the
business and / or realistic mitigating actions, the Group has
adequate resources to continue in operational existence. For this
reason, the directors continue to adopt the going concern basis in
preparing the Group's and Company's financial statements.
2 Accounting policies (continued)
Standards, amendments and interpretations in issue but not yet
effective
Certain new standards, amendments and interpretations to
existing standards have been published that are mandatory for
accounting periods beginning on or after 1 January 2023 and which
the Group has chosen not to adopt early. These include the
following standards which may be relevant to the Group:
- Amendment to IAS 1 regarding the classification of liabilities
being based on an entity's rights at the end of a reporting period
and disclosure in respect of material accounting policies;
- IAS 8 Amendments regarding the definition of accounting
estimates;
- IAS 12 Amendments regarding deferred tax on leases which give
rise to equal amounts of taxable and deductible temporary
differences on recognition;
- IFRS 16 Amendments to clarify how a seller-lessee subsequently
measures sale and leaseback transactions
As a result of initial review of the new standards,
interpretations and amendments which are not yet effective in these
financial statements, none are expected to have a material effect
on the Company or Group's future financial statements.
Use of estimates and judgments
The preparation of the financial statements in conformity with
IFRS requires management to make judgments, estimates and
assumptions that affect the application of policies and reported
amounts of assets and liabilities, income and expenses. The
estimates and associated assumptions are based on historical
experience, as well as expectations of future events and various
other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making the
judgments about carrying values of assets and liabilities that are
not readily apparent from other sources. Actual results may differ
from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised and in any future periods
affected. The estimates and judgements that have a significant risk
of causing a material adjustment to the carrying amounts of assets
and liabilities within the next financial year are discussed
below.
Right-of-use assets
Estimation
The application of IFRS16 involves an estimation of the
appropriate incremental borrowing rate and of the relevant lease
period. The rate is reviewed in conjunction with the rates on
similar borrowings and a judgement has been made where there are
break options by reference to business plans and the most likely
outcome. An increase in the rate of 1% would have reduced the
opening asset and liability by GBP67,000 with no impact on net
assets, reduced the depreciation charges by GBP6,000 a year and
increased finance charges for 2021 and 2022 by approximately
GBP10,000.
Property, plant and equipment
Estimation
Property, plant and equipment as set out in note 11 is
depreciated over the estimated useful lives of the assets. Useful
lives are based on management's estimates of the period that the
assets will generate revenue, which are reviewed annually for
continued appropriateness and events which may cause the estimate
to be revised.
2 Accounting policies (continued)
Intangible assets
Judgement
The capitalisation of development costs set out in note 9 is
subject to a degree of judgement in respect of the point when the
commercial viability of new technology and know-how is reached,
supported by the results of testing and customer trials. The
carrying values are shown in note 9.
Estimation
Capitalisation criteria in respect of financial recoverability
involves estimated forecasts of future sales and margins with
assumptions based on experience and trends when they are prepared
which may change over time. At 31 December 2022 there was the
specific impairment referred to in note 9 and the group has
performed a sensitivity analysis and noted that a reasonable change
in the underlying significant assumptions is not expected to result
in an impairment of an intangible asset.
Amortisation commences once management consider that the asset
is available for use, i.e. when it is judged to be in the location
and condition necessary for it to be capable of operating in the
manner intended by management and the cost is amortised over the
estimated 5 to 8 year useful life of the know-how based on
experience of and future expected customer product cycles and
lives.
Deferred taxation
Judgement
The recognition of deferred tax assets involves the assessment
of forecasts in respect of future results and taxable profits and
judgement as to the likelihood that these will be achieved and
realise the assets.
Inventory
Judgement
The calculation of net realisable value provisions against
inventory requires, in particular, an assessment of whether
materials or components can be utilised in future production.
Management use past experience and expectations of future orders to
judge whether inventory will not be used and therefore requires a
provision.
Basis of consolidation
The Company was incorporated on 6 January 2022 with one GBP0.01
ordinary share and on 2 February 2022, became the Group parent
Company when it issued 9,999,999 GBP0.01 ordinary shares in
exchange for all the ordinary shares in Strip Tinning Limited. In
addition, options over ordinary shares in Strip Tinning Limited
were converted, on equivalent terms, to options over 813,045 shares
in the Company. This is considered not to be a business combination
and outside the scope of IFRS3 Business Combinations. This is a key
judgement. and as a transaction where there was no change in the
shareholders or holdings is accordingly accounted for using merger
accounting with no change in the book values of assets and
liabilities with no fair value accounting applied.
These consolidated financial statements of the Group are the
first set of financial statements for the newly formed Group. The
prior period comparatives are those of Strip Tinning Limited since
no substantive economic changes have occurred.
The consolidated financial statements present the results of the
Company and its subsidiary as if they have always formed a single
group. Intercompany transactions and balances between Group
companies are therefore eliminated in full. The share capital
presented is that of Strip Tinning Holdings plc from the date of
the capital reorganisation in 2022 with the difference on
elimination of Strip Tinning Limited's capital being shown as a
merger reserve.
The consolidated statement of comprehensive income reflects the
consolidated results for the full financial year ended 31 December
2022, inclusive of the results of the newly incorporated parent
entity, plc, from 6 January 2022 onwards.
A subsidiary is an entity over which the Group has control. The
Group controls an entity when it is exposed to, or has rights to,
variable returns from its involvement with the entity and has the
ability to affect those returns through its power over the
entity.
2 Accounting policies (continued)
Revenue
Revenue principally comprises income from the sale of automotive
glazing components comprising busbar, ancillary connectors and
flexible printed circuits together with a small degree of product
tooling purchased by customers and represents the amount receivable
for the sale of these component products or tooling, excluding VAT
and trade discounts. Tooling is usually retained by the Group and
held as a fixed asset.
There are framework agreements with major customers including
pricing per component and purchase orders are then received from
customers for each delivery. Revenue is recognised to the extent
that the performance obligations, being the agreement to transfer
the product meeting the technical specifications is satisfied,
which is when the customer obtains control of the product or of the
tooling and is able to benefit from or direct the use of the
product. The transfer takes place in accordance with the terms
agreed with each customer, either at the point in time the goods
are despatched to or received by the customer. Product is tested
before dispatch, but any product returned by the customer as faulty
is treated as a reduction in revenue.
Any tooling revenue is recognised in full once the tooling
project is complete and in use to make parts for the customer.
When an amount has been invoiced or payment received in advance
of the associated performance obligations being fulfilled, any
amounts due are recognised as trade receivables and deferred income
is recorded for the sales value of the performance obligations that
have not been provided.
Grants
Income based grants
Income based grants are recognised in other operating income
based on the specific terms related to them as follows:
-- A grant is recognised in other operating income when the
grant proceeds are received (or receivable) provided that the terms
of the grant do not impose future performance-related
conditions.
-- If the terms of a grant impose performance-related conditions
including incurring related expenditure, then the grant is only
recognised in income as the related performance conditions are
met.
-- Any grants that are received before the revenue recognition
criteria are met are recognised in the statement of financial
position as an other creditor within liabilities.
Capital grants
Grants received relating to tangible and intangible fixed assets
are treated as deferred income and released to the income statement
over the expected useful lives of the assets concerned.
Employee benefits
The Group operates a defined contribution pension scheme.
Contributions are recognised in the statement of comprehensive
income in the year in which they become payable in accordance with
the rules of the scheme.
Share based payment
The Company operates an equity-settled share-based compensation
plan in which the Group receives services from employees as
consideration for share options. The fair value is established at
the point of grant using an appropriate pricing model and then the
cost is recognised as an expense in administrative expenses in the
statement of comprehensive income, together with a corresponding
increase directly in equity over the period in which the services
are fulfilled. This is the estimated period to vesting in respect
of employees. The cumulative expense recognised for equity-settled
transactions at each reporting date until vesting date reflects the
extent to which the vesting period has expired and the Group's best
estimate of the number of equity instruments that will ultimately
vest.
Deferred tax credits in respect of the potential future tax
deduction from exercise of options are initially included in the
tax in the statement of comprehensive income. To the extent the
potential corporate tax deduction exceeds the share based payment
charges, the deferred tax is taken directly to retained earnings in
equity in accordance with IAS12.
2 Accounting policies (continued)
Income tax
Current income tax assets and/or liabilities comprise
obligations to, or claims from, fiscal authorities relating to the
current or prior reporting periods, that are unpaid/due at the
reporting date. Current tax is payable on taxable profits, which
may differ from profit or loss in the financial statements.
Calculation of current tax is based on the tax rates and tax laws
that have been enacted or substantively enacted at the reporting
period.
Deferred taxes are calculated using the liability method on
temporary differences between the carrying amounts of assets and
liabilities and their tax bases. A deferred tax asset is recognised
for all deductible temporary differences to the extent that it is
probable that taxable profit will be available against which the
deductible temporary difference can be utilised, unless the
deferred tax asset arises from the initial recognition of an asset
or liability in a transaction that is not a business combination
and at the time of the transaction, affects neither accounting
profit nor taxable profit (tax loss).
Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply to the period when the asset is
realised or the liability is settled, based on tax rates and tax
laws that have been enacted or substantively enacted by the end of
the reporting period.
Computer software
Computer software assets are capitalised at the cost of
acquiring and bringing into use the software. Subsequent to initial
recognition it is stated at cost less accumulated amortisation and
accumulated impairment. Software is amortised on a straight line
basis over its estimated useful life of two years. Amortisation on
all intangible assets is recognised in administrative expenses in
the Statement of Comprehensive Income.
Research and development costs
An internally generated intangible asset arising from
development (or the development phase) of an internal project to
improve the efficiency, design or capability of the Group's product
range is recognised if, and only if, all of the following have been
demonstrated:
-- It is technically feasible to complete the development such
that it will be available for use, sale or licence;
-- There is an intention to complete the development;
-- There is an ability to use, sell or licence the resultant asset;
-- The method by which probable future economic benefits will be generated is known;
-- There are adequate technical, financial and other resources
required to complete the development;
-- There are reliable measures that can identify the expenditure
directly attributable to the project during its development.
The amount recognised is the expenditure incurred from the date
when the project first meets the recognition criteria listed above.
Expenses capitalised consist of employee costs incurred on
development, direct costs including material or testing and an
apportionment of appropriate overheads.
Where the above criteria are not met, research and development
expenditure is charged to the income statement in the period in
which it is incurred.
Capitalised development costs are initially measured at cost.
After initial recognition, they are recognised at cost less any
accumulated amortisation and any accumulated impairment losses.
The depreciable amount of a development cost intangible asset
with a finite useful life is amortised on a straight line basis
over its useful life, currently expected to range from 5 to 8
years. Amortisation begins when the asset is available for use,
i.e. when it is in the location and condition necessary for it to
be capable of operating in the manner intended by management.
The amortisation period and the amortisation method for the
assets with a finite useful life is reviewed at least each
financial year-end. If the expected useful of the asset is
different from previous estimates, the amortisation period is
changed accordingly.
Patent costs
Patent cost assets are initially measured at cost. After initial
recognition, they are recognised at cost less any accumulated
amortisation and any accumulated impairment losses. The costs are
amortised over a 5 year estimated useful life.
2 Accounting policies (continued)
Property plant and equipment
Property, plant and equipment is recognised as an asset only if
it is probable that future economic benefits associated with the
item will flow to the Group and the cost of the item can be
measured reliably. An item of property, plant and equipment that
qualifies for recognition as an asset is measured at its cost. Cost
of an item of property, plant and equipment comprises the purchase
price and any costs directly attributable to bringing the asset to
the location and condition necessary for it to be capable of
operating in the manner intended by management.
After recognition, all property, plant and equipment (including
plant, computer equipment and fixtures) is carried at cost less any
accumulated depreciation and any accumulated impairment losses.
Depreciation is provided at rates calculated to write down the cost
of assets, less estimated residual value, over their expected
useful lives on the following basis:
Leasehold improvements straight line over life of lease
Plant and machinery 2-15 year straight line
Office equipment 2 year straight line
Tooling 5 year straight line
The residual value and the useful life of an asset is reviewed
at least at each financial year-end and if expectations differ from
previous estimates, the changes are accounted for as a change in an
accounting estimate in accordance with IAS 8 Accounting Policies,
Changes in Accounting Estimates and Errors.
Gains or losses arising on the disposal of property, plant and
equipment are determined as the difference between the disposal
proceeds and the carrying value of the asset and are recognised in
profit or loss.
Right-of-use assets and lease liabilities
Assets and liabilities arising from a lease with a duration of
more than one year are initially measured at the present value of
the lease payments and payments to be made under reasonably certain
extension options are also included in the measurement of the
liability. The lease payments are discounted using the interest
rate implicit in the lease or the incremental borrowing rate that
the individual lessee would have to pay to borrow the funds
necessary to obtain an asset of similar value to the right-of-use
asset in a similar economic environment with similar terms,
security and conditions.
Lease payments are allocated between repayments of the
discounted liability, presented as a separate category within
liabilities, and the lease liability finance charges. The finance
cost is charged to profit or loss over the lease period to produce
a constant periodic rate of interest on the remaining balance of
the liability for each period. Right-of-use assets are measured at
cost comprising the amount of the initial measurement of lease
liability, any lease payments made at or before the commencement
date less any lease incentives received and any initial direct
costs and are presented as a separate category within tangible
fixed assets.
Right-of-use assets are generally depreciated over the shorter
of the asset's useful life and the lease
term on a straight-line basis. If the Group is reasonably
certain to exercise a purchase option, the right-of-use asset is
depreciated over the underlying asset's useful life.
Any payments associated with short-term leases of equipment and
all leases of low-value assets would be recognised on a
straight-line basis as an expense in profit or loss. Short-term
leases are leases with a lease term of 12 months or less. There
have been no significant short lease costs in the reporting period.
Associated costs of all leases, such as maintenance, service
charges and insurance, are expensed as incurred.
Impairment of intangible assets, right-of-use assets and
property, plant and equipment
For impairment assessment purposes, assets are grouped at the
lowest levels for which there are largely independent cash flows.
As a result, some assets are tested individually for impairment and
some are tested at the overall Group level. For the purpose of
impairment testing, assets that cannot be tested individually are
grouped together into the smallest group of assets that generates
cash inflows from continuing use that are largely independent of
the cash inflows of other assets or groups of assets (the
"cash-generating unit".
All individual assets or cash-generating units are reviewed for
indicators of impairment at the end of each period and tested for
impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable.
An asset or cash-generating unit is impaired when its carrying
amount exceed its recoverable amount. The recoverable amount is
measured as the higher of fair value less cost of disposal and
value in use. The value in use is calculated as being net projected
cash flows based on financial forecasts discounted back to present
value.The impairment loss is allocated to reduce the carrying
amount of the asset pro-rata on the basis of the carrying amount of
each asset in the unit. Non-financial assets that suffered an
impairment are reviewed for a possible reversal of the impairment
at the end of each reporting period. An impairment loss is reversed
if the asset's or cash-generating unit's recoverable amount exceeds
its carrying amount.
2 Accounting policies (continued)
Inventories
Inventories are initially recognised at cost, and subsequently
at the lower of cost and net realisable value. Cost comprises all
costs of purchase of raw materials or bought in manufacturing
components on a first in first out basis, costs of conversion and
an appropriate proportion of fixed and variable overheads incurred
in bringing the finished goods inventories to their present
location and condition. Net realisable value represents the
estimated selling price less costs to complete and sell. Where
necessary, provision is made to reduce cost to no more than net
realisable value having regard to the nature and condition of
inventory, as well as its anticipated utilisation and
saleability.
Financial instruments
Financial assets
Financial assets are recognised in the statement of financial
position when, and only when, the Group becomes a party to the
contractual provisions of the instrument and are classified based
upon the purpose for which the asset was acquired. The Group's
business model is to hold all assets recognised within these
financial statements to collect the cash flows.
Financial assets are initially recognised at fair value, which
is usually the cost, plus directly attributable transaction costs.
These comprise trade and other receivables and cash and cash
equivalents.Financial assets are subsequently measured at amortised
cost using the effective interest method. Discounting is omitted
where the effect of discounting is immaterial.
The Group applies the IFRS 9 simplified approach to measuring
expected credit losses using a lifetime expected credit loss
provision for trade receivables. The Group measures loss allowances
at an amount equal to lifetime ECL, which is estimated using past
experience of the historical credit losses experienced over the
three year period prior to the period end. Historical loss rates
are then adjusted for current and forward-looking information on
macroeconomic factors affecting the Group's customers, such as
inflation rates. The gross carrying amount of a financial asset is
written off (either partially or in full) to the extent that there
is no realistic prospect of recovery.
The Group recognises loss allowances for expected credit losses
(ECLs) on financial assets measured at amortised cost.
A financial asset is derecognised when the contractual rights to
the cash flows from the financial asset expire, or when the
financial asset and all substantial risks and reward are
transferred.
Financial liabilities
Financial liabilities include loans, hire purchase borrowings,
lease liabilities, trade and other payables and any derivatives in
respect of forward foreign exchange contracts. Financial
liabilities are obligations to pay cash or other financial assets
and are recognised in the statement of financial position when, and
only when, the Group becomes a party to the contractual provisions
of the instrument.
Trade and other payables are initially recognised at fair value
and subsequently carried at amortised cost using the effective
interest method. Loans and hire purchase borrowings are are
initially recognised at fair value net of any transaction costs
directly attributable to the issue of the instrument and
subsequently carried at amortised cost using the effective interest
method. Discounting is omitted where the effect of discounting is
immaterial.
Derivatives would be measured at fair value through profit and
loss for any movements. None have been entered into within the
period of these financial statements.
A financial liability is derecognised only when the contractual
obligation is extinguished, that is, when the obligation is
discharged, cancelled or expires.
The Group utilises hire purchase asset backed finance to fund
tangible fixed assets, drawing down finance against individual
assets or bundles of assets, which may directly finance the asset
purchase or be drawn down retrospectively. The economic ownership
of assets subject to hire purchase agreements are transferred to
the Group if the Group bears substantially all the risks and
rewards of ownership of the asset. The related asset is recognised
and measured in accordance with the tangible fixed asset policy
with initial cost being the fair value of the asset. A
corresponding hire purchase liability.is recognised in respect of
the capital repayments to be made. These interest bearing
liabilities are then measured at amortised cost with the interest,
under the effective interest method, expensed over the repayment
period at a constant rate.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand
deposits, together with other short term, highly liquid investments
that are readily convertible into known amounts of cash and are
subject to an insignificant risk of changes in value
2 Accounting policies (continued)
Foreign currencies
Transactions entered into by the Group in a currency other than
the functional currency of sterling are recorded at the rates
ruling when the transactions occur. Foreign currency monetary
assets and liabilities are translated at the rates ruling at the
reporting date. Exchange differences arising on the retranslation
of unsettled monetary assets and liabilities are recognised
immediately in the income statement in administrative expenses.
Provisions
Provisions are recognised when the Group has a present legal or
constructive obligation as a result of past events, it is probable
that an economic outflow will occur and a reliable estimate can be
made including any additional evidence from post period end events.
Where the timing of the estimate represents a relatively certain
amount it is provided for within accruals.
Equity and reserves
Share capital represents the nominal value of shares that have
been issued. Share premium represents the excess consideration
received over the nominal value of share capital upon the sale of
shares, less any incidental costs of issue. The company's merger
reserve arises from the fair value attributed to the shares issued
in exchange for the subsidiary's shares as no share premium account
is recognised under Companies Act merger relief. On consolidation a
merger reserve arises as a result of the difference between the
nominal value of the parent company shares issued in exchange for
subsidiary shares and the nominal value of those subsidiary
shares.
Retained earnings include all current and prior period retained
profits.
Presentation of non statutory measures
The Group classifies certain one-off charges or credits that
have a material impact on the financial results but are not related
to the core underlying trading as 'exceptional' or 'non-recurring'
items. These are disclosed separately in note 4 and adjusted
results to provide further understanding of the financial
performance of the Group.
3 Segmental reporting
IFRS 8, Operating Segments, requires operating segments to be
identified on the basis of internal reports that are regularly
reviewed by the Group's chief operating decision maker. The chief
operating decision maker is considered to be the executive
Directors.
The Group previously comprised only one operating segment for
the sale of automotive circuit components for glazing products. The
operating segments are monitored by the chief operating decision
maker and strategic decisions are made on the basis of adjusted
segment operating results. All assets, liabilities and revenues are
located in, or derived in, the United Kingdom. However, the Group
has commenced the development and initial sales of its glazing
circuits for electric vehicles ('EV' segment) which are expected to
grow to be a material segment. Separate management reporting and
information has now been prepared for 2022 at a revenue and gross
profit level only for a Glazing segment (sale of glazing circuits
for petrol/diesel vehicles) and EV as follows:
Glazing EV Total
Year ended 31 December 2022 GBP'000 GBP'000 GBP'000
Revenue 8,977 1,253 10,230
Cost of sales (8,650) (1,081) (9,731)
-------- -------- ---------
Gross profit 327 172 499
-------- -------- ---------
Other operating income 439
Administrative expenses (5,864)
Impairment loss (in EV) (577)
Finance expense (147)
Taxation 725
---------
Loss for the year (4,925)
---------
Some estimated information was derived for the year ended 31
December 2021 for EV showing sales of GBP0.35m and net costs of
about GBP1.1m as a result of the increasing investment and
development in this area of activity.
3 Segmental reporting (continued)
Turnover with the largest customers (including customer groups)
representing in excess of 10% of total revenue in the year for 3
customers (2021: 4 customers) has been as follows:
Year ended Year ended
31 December 31 December
2022 2021
GBP'000 GBP'000
Customer A 2,062 1,680
Customer B 1,709 2,392
Customer C 1,189 552
Customer D 867 2,091
Customer E 693 1,230
------------- -------------
All revenue arises at a point in time and relates to the sale of
automotive busbar, ancillary connectors and flexible printed
circuit product. Turnover by geographical destination is as
follows:
Year ended Year ended
31 December 31 December
2022 2021
GBP'000 GBP'000
UK 967 319
Rest of Europe 5,571 6,074
Rest of the World 3,692 4,757
10,230 11,150
------------- -------------
4 Operating loss
The operating loss is stated after charging/(crediting):
2022 2021
GBP'000 GBP'000
Operating loss is stated after charging/(crediting):
Other operating income
Amortisation of deferred government capital
grant income (49) (31)
Government revenue grant income in respect (389) -
of development work
Government job retention scheme income (1) (1)
Amortisation of intangible assets 180 191
Depreciation of property, plant and equipment 592 561
Depreciation of right-of-use assets 203 160
Loss on disposal of fixed assets 55 -
Cost of inventory sold 5,092 4,379
Research and development expenditure expensed
in the year 925 114
Short term lease rentals 22 24
Foreign exchange (gains)/losses (45) 164
Exceptional or non-recurring costs
IPO preparation related costs 381 198
Restructuring related costs 529 -
Contract termination costs 382 -
Impairment of intangible fixed assets 577 -
Auditor's remuneration
For audit 85 62
For tax advisory services - 6
For other assurance services - 15
----------------------------------------------------- ----------------- ---------
GBP232,000 of fees payable to the auditors in respect of IPO
reporting accountants related services were expensed or included in
costs taken to the share premium account.
5 Staff and key management
Year ended Year ended
Average monthly number 31 December 31 December
of employees 2022 2021
Number Number
Management 15 4
Sales 2 5
Production 146 140
Administration 5 4
------------- -------------
168 153
------------- -------------
Payroll costs GBP'000 GBP'000
Gross salaries 4,577 3,860
Social security costs 511 369
Share based payment 96 145
Contributions to money
purchase pension schemes 318 233
------------- -------------
5,502 4,607
In view of the size and nature of the Group, the Key Management
Personnel in the period is considered to comprise only the
directors of the parent and subsidiary companies. The Company
directors' remuneration was as follows (disclosed in aggregate in
respect of Strip Tinning Limited directors in the prior year).
Year ended 31 December Salary Benefits Share Pension Total
2022 in kind based
payment
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
R W Barton 15 - - - 15
P George 37 - - - 37
A Le Van 140 4 12 8 164
A D Robson 86 - - - 86
M Taylor 37 - - - 37
-------- --------- --------- -------- --------
315 4 12 8 339
-------- --------- --------- -------- --------
Year ended 31 December
2021
Aggregate emoluments 335 - 145 13 493
-------- --------- --------- -------- --------
Retirement benefits were accruing to 1 director in respect of
defined contribution schemes (2021: 2). The highest paid director
in 2022 received GBP156,000 of remuneration and GBP8,000 of
employer pension contributions.
Key management remuneration was GBP941,000 (2021: GBP535,000)
including GBP23,000 of pension contributions (2021: GBP13,000).
6 Finance costs
Year ended Year ended
31 December 31 December
2022 2021
GBP'000 GBP'000
Interest payable on hire purchase
obligations 55 71
Bank interest 26 21
Lease liability finance charges 66 66
------------- -------------
147 158
------------- -------------
7 Income tax
Year ended Year ended
31 December 31 December
2022 2021
GBP'000 GBP'000
Current tax:
UK corporation tax (308) (195)
Adjustment for prior periods (79) -
------------- -------------
Total current tax credit (387) (195)
Deferred tax:
Origination and reversal of
temporary differences (349) (161)
Effect of change in tax rate - 135
Adjustment for prior periods 11 (16)
------------- -------------
Total deferred tax credit (338) (42)
Total tax credit (725) (237)
------------- -------------
The tax rate used for the reconciliation is the corporate tax
rate of 19% (2021: 19%) payable by corporate entities in the UK on
taxable profits under UK tax law. In May 2021 an increase to 25%
from April 2023 was substantively enacted and, as the expected
period of reversal, is accordingly applied to deferred tax balances
at 31 December 2021 and 2022.
The credit for the year can be reconciled to the loss for the
year as follows:
Year ended Year ended
31 December 31 December
2022 2021
GBP'000 GBP'000
Loss before taxation (5,650) (1,062)
------------- -------------
Income tax calculated at 19% (2021:
19%) (1,074) (202)
Expenses not deductible 92 35
Enhanced research and development
allowances (132) (84)
Enhanced capital allowances (29) (41)
Deduction on exercise of share (34) -
options
Differing deferred and corporate (83) -
tax rates
Deferred tax asset in respect of
share options - (64)
Effect of change in deferred tax
rate - 135
Deferred tax not recognised in 603 -
respect of losses
Adjustment for prior periods (68) (16)
Total tax credit (725) (237)
------------- -------------
In addition, a deferred tax credit of GBPnil (2021: GBP225,000)
has been taken directly to retained earnings in equity in
accordance with IAS12. This is in respect of the extent to which
the potential corporate tax deduction exceeds the share based
payment charges.
8 Earnings per share
Year ended Year ended
31 December 31 December
2022 2021
Loss used in calculating earnings
per share (GBP'000) (4,925) (825)
Weighted average number of
shares ('000) 14,612 10,000
Basic and diluted loss per
share (pence) (33.7) (8.25)
------------- -------------
Earnings per share has been calculated based on the share
capital of the parent company (and equivalent share capital for
2021). There are options in place over 254,051 (2021: 813,045)
shares that were anti-dilutive at the year end but which may dilute
future earnings per share.
9 Intangible assets
Development Patents Computer Total
Group costs software
GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 1 January 2021 1,298 138 90 1,526
Additions 487 9 236 732
---------------------------- ----------- -------- --------- --------
At 31 December 2021 1,785 147 326 2,258
Additions 430 1 57 488
Disposals - - (15) (15)
Removal of fully impaired
assets (594) - - (594)
---------------------------- ----------- -------- --------- --------
At 31 December 2022 1,621 148 368 2,137
---------------------------- ----------- -------- --------- --------
Accumulated amortisation
At 1 January 2021 296 127 83 506
Charge for the year 180 5 6 191
---------------------------- ----------- -------- --------- --------
At 31 December 2021 476 132 89 697
Charge for the year 176 4 - 180
Impairment in the
year 577 - - 577
Removal of fully impaired
assets (594) - - (594)
---------------------------- ----------- -------- --------- --------
At 31 December 2022 635 136 89 860
---------------------------- ----------- -------- --------- --------
Net book amount
At 31 December 2022 986 12 279 1,277
---------------------------- ----------- -------- --------- --------
At 31 December 2021 1,309 15 237 1,561
---------------------------- ----------- -------- --------- --------
The Group has a programme of research and development projects
to improve the efficiency and functionality of its products.
Capitalised development costs relate to the projects evaluated as
viable and where the successful developments are being applied and
contributing to revenue.
Included within the carrying amount of the above, are assets
held under hire purchase agreements of GBP159,000 (2021:
GBP159,000) relating to software. Amortisation charged on these
assets in the year amounted to GBPnil (2021: GBPnil ).
The 2022 impairment charge results from cancellation of a
contract by a customer for which design and development work had
been carried out and capitalised in 2021.
10 Right-of -use assets
Property Plant and Total
Group leasehold machinery
assets assets GBP'000
GBP'000
GBP'000
Cost
At 1 January 2021 1,656 136 1,792
Additions - 66 66
Disposals - (77) (77)
--------------------------- ---------- ---------- --------
At 31 December 2021 1,656 125 1,781
Additions 212 - 212
Disposals - (13) (13)
--------------------------- ---------- ---------- --------
At 31 December 2022 1,868 112 1,980
--------------------------- ---------- ---------- --------
Accumulated depreciation
At 1 January 2021 465 91 556
Charge for the year 122 38 160
Disposals (77) (77)
--------------------------- ---------- ---------- --------
At 31 December 2021 587 52 639
Charge for the year 168 35 203
Disposals - (13) (13)
--------------------------- ---------- ---------- --------
At 31 December 2022 755 74 829
--------------------------- ---------- ---------- --------
Net book amount
At 31 December 2022 1,113 38 1,151
--------------------------- ---------- ---------- --------
At 31 December 2021 1,069 73 1,142
--------------------------- ---------- ---------- --------
The financing charges in respect of right-of-use assets are
disclosed in note 6 and the lease liabilities in 17. Short term
rentals are disclosed in note 4 with no low value leases in either
year. Right-of-use assets and l ease liabilities relate principally
to property leases. The Group leases its main operating premises,
typically on a ten year lease, subject to periodic rent reviews and
potential breaks, with the intention and assumption made in
measuring assets and liabilities that the full period will be
utilised. Total cash outflows in respect of leases were GBP276,000
for the year ended 31 December 2022 (2021: GBP202,000).
11 Property, plant and equipment
Leasehold Plant and Tooling Office Total
Group improvements machinery equipment
GBP000 GBP'000 GBP'000 GBP'000
GBP'000
Cost
At 1 January 2021 402 5,222 1,018 122 6,764
Additions 95 515 94 33 737
Disposals - (633) - - (633)
--------------------------- ------------- ---------- -------- ---------- --------
At 31 December 2021 497 5,104 1,112 155 6,868
Additions 19 408 65 16 508
Disposals (69) (31) (22) - (122)
At 31 December 2022 447 5,481 1,155 171 7,254
--------------------------- ------------- ---------- -------- ---------- --------
Accumulated depreciation
At 1 January 2021 236 3,000 512 103 3,851
Charge for the year 27 374 139 21 561
Disposals - (633) - - (633)
--------------------------- ------------- ---------- -------- ---------- --------
At 31 December 2021 263 2,741 651 124 3,779
Charge for the year 31 322 216 23 592
Disposals (62) (1) (4) - (67)
At 31 December 2022 232 3,062 863 147 4,304
--------------------------- ------------- ---------- -------- ---------- --------
Net book amount
At 31 December 2022 215 2,419 292 24 2,950
--------------------------- ------------- ---------- -------- ---------- --------
At 31 December 2021 234 2,363 461 31 3,089
--------------------------- ------------- ---------- -------- ---------- --------
Included within the carrying amount of the above, are assets
held under hire purchase agreements of GBP1,705,000 (2021:
GBP1,482,000) relating to plant and machinery and GBP100,000 (2021:
GBP190,000) relating to tooling. Depreciation charged on these
assets in the year amounted to GBP213,000 (2021: GBP297,000).
12 Investments
Shares in
group undertakings
Company GBP'000
----------------------------- -------------------
Additions and at 31 December
2022 3,841
------------------------------- -------------------
The Company acquired all of the shares in Strip Tinning Limited
by a share for share exchange on 2 February 2022 with the
GBP3,745,000 cost of investment recorded in accordance with IAS 27.
GBP96,000 of additions also arise as a result of the treatment of
the share based payment charge in the subsidiary as a capital
contribution. Strip Tinning Limited is incorporated and registered
in England at Arden Business Park, Arden Road, Frankley Birmingham,
West Midlands, B45 0JA.It manufactures automotive busbar, ancillary
connectors and flexible printed circuits.
13 Inventories
31 December 31 December
2022 2021
Group GBP'000 GBP'000
------------------------------------ ------------ -------------
Raw materials and consumables 1,536 1,714
Finished goods and goods for resale 312 300
------------------------------------- ------------ -------------
1,848 2,014
------------------------------------ ------------ -------------
An inventory impairment loss of GBP479,000 (2021: GBPnil) was
recognised in the year.
14 Trade and other receivables
Group Company
31 December 31 December 31 December
2022 2021 2022
Current GBP'000 GBP'000 GBP'000
---------------------- ------------ ------------- ------------
Trade receivables 2,691 3,039 -
Impairment provision - (25) -
---------------------- ------------ ------------- ------------
Net trade receivables 2,691 3,014
Amounts owed by group
undertakings - - 5,776
Other receivables 267 131 -
Prepayments 423 633 15
----------------------- ------------ ------------- ------------
3,381 3,778 5,791
---------------------- ------------ ------------- ------------
The directors consider that the carrying amount of trade and
other receivables approximates to their fair value.
Amounts owed by group undertakings are unsecured, interest free
and have no fixed repayment date.
The impairment charge and movement in the expected credit loss
provision against trade receivables is as follows:
GBP'000 GBP'000
At 1 January 2022/2021 25 -
Impairment charge for the year - 25
Debt written off (25) -
--------- --------
At 31 December 2022/2021 - 25
-------- --------
Ageing of trade receivables past their due dates but not
provided were:
Less than 30 to 60 More than
30 days days overdue 60 days
overdue overdue
GBP'000 GBP'000 GBP'000
31 December 2021 405 119 148
31 December 2022 498 289 237
---------- -------------- ----------
The directors consider the credit quality of trade and other
receivables that are neither past due nor impaired to be of good
quality with the impairment charge arising principally from one
former customer.
15 Trade and other payables
Group Company
31 December 31 December 31 December
2022 2021 2022
Current GBP'000 GBP'000 GBP'000
------------------------- ------------ ------------- ------------
Trade payables 2,211 2,985 67
Other payables 41 - -
Taxation and social
security 117 336 -
Accruals 476 715 -
Deferred income 200 377 -
3,045 4,413 67
------------------------- ------------ ------------- ------------
Non current liabilities
------------------------- ------------ ------------- ------------
Accruals - 19 -
Deferred income (grants) 37 143 -
-------------------------- ------------ ------------- ------------
37 162 -
------------------------- ------------ ------------- ------------
16 Borrowings
Group Company
31 December 31 December 31 December
2022 2021 2022
Current liabilities GBP'000 GBP'000 GBP'000
-------------------------- ------------ ------------- ------------
Loans 74 61 -
Hire purchase liabilities 479 498 -
553 559 -
-------------------------- ------------ ------------- ------------
Non current liabilities
-------------------------- ------------ ------------- ------------
Loans 208 294 -
Hire purchase liabilities 784 941 -
--------------------------- ------------ ------------- ------------
992 1,235 -
-------------------------- ------------ ------------- ------------
Hire purchase obligations are secured by fixed charges over
intangible and tangible fixed assets and floating charges over
other assets and undertakings of the Group. All obligations fall
due within five years with the exception of GBP40,000 as at 31
December 2021. This related to a hire purchase liability of
GBP304,000 repayable over 6 years with interest at 7%. The total
payments including interest in respect of hire purchase liabilities
are shown in note 18.
17 Lease liabilities
Group 31 December 31 December
2022 2021
GBP'000 GBP'000
---------------------------- ------------ -------------
Current 182 152
---------------------------- ------------ -------------
Due in one to five years 588 551
Due in more than five years 407 553
995 1,104
---------------------------- ------------ -------------
The total payments including interest in respect of lease
liabilities are shown in note 18.
18 Movements in total financing liabilities
Group Borrowings Lease Total
liabilities financing
GBP'000 GBP'000 GBP'000
------------------------------- ----------- ------------- -----------
At 1 January 2021 1,583 1,326 2,909
Cash movements:
Lease liability payments - (136) (136)
Hire purchase finance advanced 401 - 401
Loan received 355 - 355
Hire purchase payments (545) - (545)
Interest paid (92) (66) (158)
Non-cash movements
Interest accrued 92 66 158
New lease liabilities - 66 66
At 31 December 2021 1,794 1,256 3,050
Cash movements:
Lease liability payments - (199) (199)
Hire purchase finance advanced 311 - 311
Hire purchase payments (487) - (487)
Loan repayments (73) - (73)
Interest paid (81) (66) (147)
Non-cash movements
Interest accrued 81 66 147
New lease liabilities - 120 120
At 31 December 2022 1,545 1,177 2,722
------------------------------- ----------- ------------- -----------
19 Financial instruments and capital management
Risk management
The Board has overall responsibility for the determination of
the Company and the Group's risk management objectives and
policies. The overall objective of the Board is to set policies
that seek to reduce risk as far as possible without unduly
affecting the Group's flexibility. All funding requirements and
financial risks are managed based on policies and procedures
adopted by the Board of Directors. The Group is exposed to
financial risks in respect of market including foreign exchange
risk, credit and liquidity risks.
19 Financial instruments and capital management (continued)
Capital management
The Group's capital comprises all components of equity which
includes share capital and retained earnings amounting to
GBP6,425,000 at 31 December 2022 (2021: GBP4,237,000). The
Company's objectives when maintaining capital are to safeguard the
entity's ability to continue as a going concern, so that it can
continue to provide returns for shareholders and benefits for other
stakeholders, and to provide an adequate return to shareholders by
pricing products and services commensurately with the level of
risk. The capital structure of the Company consists of shareholders
equity with all working capital requirements financed from cash and
major capital expenditure funded by leases and hire purchase
agreements.
The Company sets the amount of capital it requires in proportion
to risk. It manages its capital structure and makes adjustments to
it in the light of changes in economic conditions, the ability to
finance capital purchases and the risk characteristics of the
underlying assets and activity. In order to maintain or adjust the
capital structure, the Company may adjust the amount of dividends
paid to shareholders, return capital to shareholders, issue new
shares, or sell assets to reduce debt.
Market risks
These arise from the nature and location of the customer markets
and include foreign exchange rate risks.
The Group trades within European and other overseas automotive
supplier markets, and accordingly there is a risk relating to the
underlying performance of these markets. The directors monitor this
and the foreign exchange risk closely with the intention to foresee
downturns in trade or changes in the use of automotive
components.
Foreign exchange risk
The Group trades with overseas customers and, whilst it has net
foreign currency balances, also makes a degree of purchases in the
respective currency and uses currency denominated accounts to defer
conversion to sterling or to utilise the currency when needed.
There has therefore been a reduced sensitivity to fluctuations in
exchange rates although a 10% increase or decrease in Euro and US
dollar exchange rates against sterling could impact the results by
up to GBP150,000 or GBP50,000 as a reduction or increase in profit
respectively.
The Group had the following in net assets comprising cash, sales
ledger and purchase ledger balances denominated in foreign
currencies:
31 December 31 December
2022 2021
GBP'000 GBP'000
Euro denominated 1,154 1,290
US dollar denominated 496 291
------------ ------------
Interest rate risk
The Group makes use of fixed rate three to five year hire
purchase agreements to acquire property, plant and equipment with
interest rates typically ranging from 3.5% (new agreements in 2020
to 2022) to 7% (2018 and 2019); this spreads the capital cost,
ensures that the Group maintains sufficient cash resources for
working capital purposes and ensures certainty of total costs at
the point of acquisition of those assets. A 5 year term bank loan
has also been drawn upon at a fixed interest rate of 9.4%. These
liabilities are set out in note 16.
Credit risk
Credit risk is the risk of financial loss if a customer or
counterparty to a financial instrument fails to meet its
contractual obligations. The Group is mainly exposed to credit risk
from credit sales and attempts to mitigate credit risk by assessing
the creditworthiness of customers, including using proforma terms
for new customers and closely monitoring the payment record and
trends for each customer. The customers are principally tier 1
automotive suppliers.
At 31 December 2022 trade receivables were GBP2,691,000 (31
December 2021: GBP2,688,000) with 35% (31 December 2021: 25%) of
the balance owed by one customer group and 25% (2021: 36%) of the
balance by 3 other customers with operations based in a number of
European and other countries.
The ageing of overdue debtors is included in note 14 with all
amounts subsequently substantially received. The impairments to
trade or other receivables in 2021 and 2022 have been immaterial
and relate to a few smaller customers.
Credit risk on cash and cash equivalents is considered to be
minimal as the counterparties are all substantial banks with high
credit ratings.
19 Financial instruments and capital management (continued)
Liquidity risk
The maturity of the Group's financial liabilities including
trade and other payables, hire purchase and lease liability total
payments with the interest payable is as set out below. Current
liabilities were payable on demand or to normal trade credit terms,
hire purchase and loan obligations were payable monthly and lease
liabilities quarterly. Hire purchase and lease liabilities are used
to manage liquidity by spreading the cost of payment for capital
purchases.
At 31 December Up to 1 1-2 years 2-5 years Over 5 years
2022 year
GBP'000 GBP'000 GBP'000 GBP'000
Trade, other payables 2,728 - - -
and accruals
Hire purchase obligations 548 391 511 -
Loans 92 92 170 -
Lease liabilities 240 217 513 762
------- --------- --------- ------------
3,608 700 1,194 762
------- --------- --------- ------------
At 31 December Up to 1 1-2 years 2-5 years Over 5 years
2021 year
GBP'000 GBP'000 GBP'000 GBP'000
Trade, other payables
and accruals 3,535 19 - -
Hire purchase obligations 557 455 565 47
Loans 92 92 254 -
Lease liabilities 213 200 521 610
------- --------- --------- --------------
4,397 766 1,340 657
------- --------- --------- --------------
Classification of financial instruments
All financial assets have been classified as at amortised cost,
and all financial liabilities have been classified as other
financial liabilities measured at amortised cost.
Financial assets
31 December 31 December
2022 2021
At amortised cost GBP'000 GBP'000
Trade receivables and other receivables 2,958 3,145
Cash and cash equivalents 1,290 337
------------ ------------
4,248 3,482
------------ ------------
Financial liabilities
31 December 31 December
2022 2021
GBP'000 GBP'000
At amortised cost
Trade payables, other payables and
accruals 2,728 3,719
Hire purchase obligations 1,263 1,439
Loans 282 355
4,273 5,513
------------ ----------------
The directors consider that the carrying amount of the financial
assets and liabilities approximates to their fair values.
20 Provisions
The dilapidations provisions have been reassessed during 2022 in
respect of the group's rented properties and increased to allow for
potential reinstatement costs that may be incurred at the end of
the leases in 2030 under the standard terms in the contracts. This
primarily results in an increase in the amount recognised in
respect of the right of use assets for property and in the
discounted provisions liability which amounts to GBP227,000 at 31
December 2022.
Group Dilapidations
provision
GBP'000
Transfer from accruals 71
Additions to right of use property assets 156
Liability at 31 December 2022 227
--------------
21 Deferred taxation
Group
Liability/(asset) Accelerated Intangible Share Losses Total
in respect of: capital R&D assets based and other
allowances payment timing
differences
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at 31 December
2020 487 190 - (72) 605
Credited to equity - - (225) - (225)
Credit to profit
or loss 251 137 (83) (347) (42)
------------ ------------ --------- ------------- --------
As at 31 December
2021 738 327 (308) (419) 338
Credit to profit
or loss (7) (59) 308 (580) (338)
------------ ------------ --------- ------------- --------
As at 31 December
2022 731 268 - (999) -
------------ ------------ --------- ------------- --------
The Group has tax losses carried forward of approximately
GBP6,900,000 (2021: GBP1,570,000) and an unrecognised deferred tax
asset of GBP790,000. The net asset has not been recognised as it is
not yet considered sufficiently probable, in the short term, that
the asset will be realised.
The Company has tax losses carried forward of GBP564,000 and an
unrecognised deferred tax asset of GBP141,000 in respect of
these.
22 Share capital
The movements in share capital have been as follows:
Company and Group Number Nominal Share
of GBP0.01 premium
shares
GBP'000 GBP'000
Share issued on incorporation 1 - -
Shares issued in exchange for Strip
Tinning Limited shares 9,999,999 100 -
EIS and VCT placing shares issued
at GBP1.85 each 2,702,702 27 4,973
Other placing shares issued at
GBP1.85 each 1,621,622 16 2,984
Exercise of options at GBP0.116
each 813,045 8 86
Shares issued to employee benefit
trust at GBP0.01 each 322,345 3 -
Share issue costs (1,077)
------------ -------- ---------
15,459,714 154 6,966
------------ -------- ---------
The Company was incorporated with one GBP0.01 share and on 2
February 2022 issued 9,999,999 GBP0.01 shares in exchange for all
of the issued share capital in Strip Tinning Limited. Merger relief
arises under the Companies Act from a share premium and in
accordance with IAS 27 for such a transaction with no change in
control, the consideration was recorded at the Strip Tinning
Limited net asset value of GBP3,745,000 (GBP0.375 per share) in the
company, GBP100,000 of nominal share capital and a merger reserve
of GBP3,645,000.
The issue of shares with a nominal value of GBP100,000 in
exchange for the 2,000 GBP0.10 shares in Strip Tinning Limited with
a nominal value of GBP200 results in a debit to a merger reserve of
GBP99,800 in the consolidated financial statements, presented as a
capital reorganisation after consolidating applying the merger
accounting principles as set out in note 2.
On 10 February 2022, the Company issued a further 4,324,324
GBP0.01 shares at GBP1.85 each and 813,045 GBP0.01 shares at
GBP0.116 each on exercise of share options. On 16 February 2022 the
Company was listed on AIM. The issue of these shares in February
2022 resulted in a share premium of GBP6,966,000 (net of
GBP1,077,000 of share issue costs).
On 2 November 2022, 322,345 GBP0.01 ordinary shares were issued
to the Employee Benefit Trust in respect of an employee incentive
scheme with a 3 year vesting period and the nominal value of
GBP3,000 has been debited to an other reserve.
All GBP0.01 ordinary shares rank equally with the right to
receive dividends and capital distributions .
23 Share based payment
Options were granted on 24 August 2018 over 354 GBP0.10 A
Ordinary Shares in Strip Tinning Limited ('STL') at an exercise
price of GBP267 per share. These options were only exercisable on a
sale of the company or on a listing and had the right to share only
pro-rata with the Ordinary Shares in the capital proceeds in excess
of GBP10 million, receive dividends at the discretion of the
directors and have voting rights. They were exchanged for an
equivalent 813,045 options in the Company's GBP0.01 shares with no
change in the value of the options, exercisable at GBP0.116 per
share and exercised in February 2022 when the share price was
GBP1.85. The fair value of GBP1,345 per STL A option share was
derived using a Black Scholes option pricing model applying a risk
free rate of 1% and an estimated volatility of 40%. The remainder
of the original fair value of GBP48,000 was expensed on exercise
(2021: 4 year estimated vesting period and charge of
GBP145,000).
Options over parent company shares under a Long Term Incentive
Plan were granted in February 2022 with an exercise price of
GBP0.01. These were subject to a 3 year vesting period. Options
over 122,702 shares required a total shareholder return ('TSR')
target to be achieved and 129,188 earnings and gross profit targets
to be achieved. 42,162 of those subject to a TSR return and 42,162
subject to earnings targets lapsed when the director left on 31
March 2022. The respective fair values of GBP0.92 (TSR market
condition and probability applied) and GBP1.841 (earnings target
conditions) have been calculated using a Black Scholes option
pricing model applying the 3 year vesting period, share price of
GBP1.85 at date of grant, a risk- free rate of 2%, expected
dividends of nil and estimated volatility of 45% with a GBP26,000
charge in the year.
23 Share based payment (continued)
Further options under the plan were granted in May 2022 with an
exercise price of GBP0.01. These were subject to a 3 year vesting
period. Options over 30,270 shares required a total shareholder
return ('TSR') target to be achieved and 56,216 earnings and gross
profit targets to be achieved. The respective fair values of
GBP0.733 (TSR market condition and probability applied) and
GBP1.466 (earnings target conditions) have been calculated using a
Black Scholes option pricing model applying the 3 year vesting
period, share price of GBP1.475 at date of grant, a risk -free rate
of 2%, expected dividends of nil and estimated volatility of 45%
with a GBP10,000 charge in the year.
On 2 November 2022, employees were granted a total of 322,345 of
free shares subject to a 3 year vesting period. The fair value of
GBP0.725 per share has been calculated using a Black Scholes option
pricing model applying the 3 year vesting period, share price of
GBP0.725 at date of grant, a risk -free rate of 3%, expected
dividends of nil and estimated volatility of 50% with a GBP12,000
charge in the year.
In view of the short period since listing, volatility has been
estimated by reference to similar shares. Unexpired options have an
average vesting period remaining at 31 December 2022 of 2.5
years.
The movements in share options have been as follows:
Weighted Transfer PSP Employee
average of Strip scheme free share
exercise Tinning scheme
price Limited
GBP options
Number Number Number
On incorporation - - - -
Conversion of STL options 0.116 813,045 - -
Granted in the year 0.005 - 338,375 322,345
Exercised 0.116 (813,045) - -
Lapsed 0.01 - (84,324) -
---------- ---------- --------- ------------
As at 31 December 2022 0.004 - 254,051 322,345
---------- ---------- --------- ------------
24 Capital commitments and contingent liabilities
The Group had capital commitments contracted but not provided
for of GBP303,000 at 31 December 2022 (2021: GBPnil). The company
had no capital commitments.
Following the notification of the termination of an EV contract
in July 2022, effective October 2022, the business has been working
hard to reach a fair settlement and mitigate the liabilities
associated with the contract. The company and the EV customer
continue to work closely together to reach a full and final
resolution. Commercial negotiations are now at an advanced stage
and as at the financial statements signing date, a single
commercial claim remained outstanding to settle between the
company, the EV customer, and a supplier on the programme. Whilst
the supplier has claimed additional amounts up to point of
termination, they had actually received advanced payment for work
carried out and additional costs have not been supported or
justified. A conclusion is expected to be reached within 2023 with
an outcome that is broadly neutral to the Strip Tinning Group.
25 Post balance sheet events
The business is in the process of transitioning to an
alternative banking facility with a new provider. This is a managed
process by mutual agreement and the new arrangements are expected
to be on similar terms and provide the same initial level of
headroom as the previous CID facility was intended to. The transfer
is anticipated to complete by 31 August 2023.
26 Control and related party transactions
At 31 December 2022, the Company was an ultimate parent company.
Mr R Barton was considered to be the ultimate controlling party.
The key management personnel are considered to be the directors.
Please refer to note 5 for details of key management personnel
remuneration.
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END
FR BQLLBXQLEBBX
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June 07, 2023 02:00 ET (06:00 GMT)
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