ASSOCIATED BRITISH ENGINEERING PLC

 

FINANCIAL HIGHLIGHTS

 

			Year	Period
			ended	ended
			30 Sep	30 Sept
			2021	2020
			£'000	£'000
REVENUE			-	165
OPERATING (LOSS)/PROFIT			(88)	139
(LOSS)/PROFIT BEFORE TAXATION			(87)	145
OTHER COMPREHENSIVE INCOME			385	327
NET ASSETS			889	591
BASIC (LOSS)/PROFIT PER 2.5p ORDINARY SHARE			(4.25p)	263.0p
EQUITY SHAREHOLDERS' FUNDS PER 2.5p ORDINARY SHARE			£0.43	£0.29

 

 

 

ASSOCIATED BRITISH ENGINEERING PLC

 

CHAIRMEN'S STATEMENT

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

As you will be aware , in August 2020 we disposed of our subsidiary British Polar Engines Limited (BPE) and as part of the process we recovered assets for the Company and the Pension Fund. In addition the Company was also able to remove from the Group balance sheet as at September 2020 the liability for the Pension Fund. The net result was to create positive assets as at September 2020  of £591,000, which  in the year to September 2021 had increased to £889,000. As at September 2020 the Company held cash of £186,000 which rose to  £489,000 as at September 2021.

 

As a result of the process in August 2020 and the sale of the Group's main trading activities the group has  had no trading activities in 2021; therefore there is no turnover for the year to September 2021. Group operating costs have been reduced to £87,000 for the year to September 2021.

 

During the year to September 2021 the Company was able to realise cash from some of its assets amounting to £380,000 and these created a realised gain of £149,000 and a gain, previously reported as unrealised, of £236,000; resulting in a combined Comprehensive Profit of £385,000 in the year to September 2021 (2020 £327,000). The BPE Pension Fund, some of whose assets the Directors monitor on their behalf, was also able to avail itself of the same opportunity to realise assets .

 

As the Company currently has no trading activity and only two directors and one employee within the group, the group has not been affected by the COVID Pandemic or Brexit in either 2021 or in the first part of 2022. 

 

The net result for 2021 shows an increase in retained earnings of the Group of £208,000 and an increase in Revaluation Reserve of £90,000. (The results for the prior year were affected  by the release of the Pension Fund Liability and therefore are not directly comparable).

 

As you will note in the balance sheet the Group continued to hold Assets for Sale, which included  a material quoted  holding  in one entity, the valuation of which is  subject to the market for biotech companies on NASDAQ. Over the past 12 months this  holding has ranged from over $40 to $12 per share; the current price is lower than the value at the September year end. Colin Weinberg was a director of the parent company of the investment and was instrumental in the development of that business. He resigned his directorship in January 2019 and, in view of the potential conflicts of interest that may arise, he is not participating in decisions regarding the sale of that investment and its parent company.

 

It is unfortunate to note that the Auditor still deems it necessary to give a "Qualified Opinion" that as you will note in their report relates solely to the lack of accounting information from the former subsidiary BPE. This in no way affects the accounts for 2021 or the balance sheet for any of the years reported on herein and we advise you to read the audit report accordingly. Nonetheless the Directors are looking for the suspension to be lifted and to restart trading in its shares as soon as possible.

 

In the meantime the directors are containing all costs and are not taking any remuneration from the Company for their services as directors. They continue to review any possible corporate developments as they arise with a view to developing or acquiring a new business activity within the Group.

 

We wish all our shareholders good health and we look forward to new developments in 2022. 

 

 

 

 

Colin Weinberg and Rupert Pearce Gould

Chairmen

 

 

Date: 27 January 2022

 

ASSOCIATED BRITISH ENGINEERING PLC

 

DIRECTORS' REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

The directors submit their report and audited accounts for the year ended 30 September 2021.

 

RESULTS AND DIVIDENDS

 

The Group's loss after tax amounted to £86,572 (2020: £144,800 profit). The directors are unable to recommend a dividend on the ordinary shares for the year (2020: £Nil per ordinary share).

 

DIRECTORS

 

The names of the directors who served during the year from 1 October 2020 to 30 September 2021 are:

 

Mr C Weinberg	Director
Mr R Pearce Gould	Director

 

Biographical details of the directors are set out on page 54.

 

With regard to the appointment and replacement of directors, the Company is governed by its Articles of Association, the Corporate Governance Code, the Companies Act 2006 and related legislation.

 

In accordance with the Articles of Association Mr R Pearce Gould retires by rotation and, being eligible, offers himself for re-election.

 

DIRECTORS' AND OFFICERS' LIABILITY INSURANCE

 

The group has, as permitted by s.234 and s.235 of the Companies Act 2006, maintained insurance cover on behalf of the directors and secretary indemnifying them against certain liabilities which may be incurred by them in relation to the company.

 

SUBSTANTIAL HOLDINGS

 

As at 30 September 2021 the Company had been notified of the following substantial interests, in excess of 3%, in the issued ordinary share capital of the Company:

 

Shareholders	Notes
The Bank of New York (Nominees) Limited	The Bank of New York Nominees owns 12.98% of issued ordinary shares, of which Colin Weinberg. owns 3.44% of issued share capital.
Fiske Nominees Limited (FISKPOOL)	FISKPOOL owns 12.87% of issued ordinary shares, of which Stephen Cockburn has a combined beneficial and non beneficial interest in 7.53% of issued share capital.
R A Pearce Gould	Mr Pearce Gould's overall holding is 12.89% of issued ordinary shares, which includes Rulegale below.
Stephen Cockburn	Mr Cockburn's overall beneficial and non beneficial interest is 9.18% of issued ordinary shares, including Fiske Nominees above.
C Weinberg	Mr Weinberg's overall holding is 8.22% of issued ordinary shares, including Bank of New York above.
Lynchwood Nominees Limited (2006420)	Lynchwood owns 6.74% of issued ordinary shares.
Rulegale Nominees Limited (JAMSCLT)	JAMSCLT owns 5.28% of which Mr R A Pearce Gould has all of the issued ordinary shares.
ASSOCIATED BRITISH ENGINEERING PLC DIRECTORS' REPORT (continued) FOR THE YEAR ENDED 30 SEPTEMBER 2021 ___________________________________________________________________________________
Shareholders                                                     Hargreaves Lansdown (Nominees) Ltd (VRA)	Notes   Hargreaves Lansdown owns 5.27% of issued ordinary shares.
W B Nominees Limited	W B Nominees Limited owns 3.51% of issued ordinary shares.
Interactive Investor Services Nominees Limited	Interactive Investor Services Nominees Limited owns 3.53% of issued ordinary shares.
Barclays Direct Investing Nominees Ltd (Clients)	Barclays Direct owns 3.68% of issued ordinary shares.
Vidacos Nominees Limited (BBUCCC)	BBUCCCC owns 3.40% of which Graeme Marshall owns all of the issued ordinary shares.
Winterflood Securities Limited (WINSCREEP)	Winterflood Securities owns 3.04% of issued share capital.

 

BENEFICIAL INTERESTS IN SIGNIFICANT CONTRACTS

 

None of the directors had a material interest in any contract of significance to which the Company or any of its subsidiaries was party during the period.

 

BENEFICIAL INTERESTS IN THE SHARE CAPITAL OF THE COMPANY

 

The beneficial interests of the directors, who served during the year, their spouses and dependents in the share capital of the Company according to the register kept by the Company as at 30 September 2021 were as follows:

 

	Ordinary shares of
	2.5p	2.5p
	2021	2020
	No.	No.
Mr C Weinberg	168,404	168,404
Mr R Pearce Gould	264,049	264,049

 

No share options or derivatives were held by any of the directors at 30 September 2021.

 

Since 30 September 2020 and up to and including 30 September 2021 there have been no changes in the directors' interests in the share capital of the Company.

 

 

FINANCIAL INTERESTS

 

The Group uses various financial instruments and these include cash, equity investments and various others, such as trade receivables and trade payables which arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Group's operations.

 

Further details of the policies adopted by the Group in respect of the financial risk management are included within note 17 to the Group financial statements and the Strategic Report.

 

ASSOCIATED BRITISH ENGINEERING PLC

 

DIRECTORS' REPORT (continued)

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

FINANCIAL INTERESTS - CAPITAL

 

The structure of the Group's and Company's capital, at nominal value, is as follows:

	No. in issue		Nominal Value		Total Value		% of Capital
			£		£		£
Ordinary shares	2,048,990		0.025		51,255		1.9
Deferred shares	1,313,427		1.975		2,594,018		98.1

 

The Deferred Shares are considered to be of negligible value and therefore have not been reported on in the holdings of directors.

 

DISABLED PERSONS

 

It is the Group's policy to give sympathetic consideration to the recruitment, continuing employment, training, career development and promotion of disabled persons.

 

EMPLOYEES

 

The Group recognises the importance of employees to the success of the business and ensures that they are fully informed of events that directly affect them and their working environment.

 

ENERGY AND EMISSIONS DATA

 

As the Group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a law energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

 

GOING CONCERN

 

After making appropriate enquiries, the Directors have a reasonable expectation that the Company and the Group will have adequate resources to continue in operational existence for the foreseeable future.

 

AUDITOR AND DISCLOSURE OF INFORMATION TO THE AUDITOR

 

The auditor, Bright Grahame Murray, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

 

So far as the Directors are aware, there is no relevant audit information that has not been brought to the attention of the Company's auditor. Each Director has taken all reasonable steps to make himself aware of any relevant audit information and to establish that such information was provided to the auditor.

 

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

 

A resolution to confirm the reappointment of Bright Grahame Murray as auditor of the Company will be proposed at the 2021 AGM. The confirmation has been recommended to the Board by its Audit Committee and Bright Grahame Murray have indicated their willingness to remain in office.

 

By order of the Board

 

 

 

Colin Weinberg

For and on behalf of the Board of Directors

                                                                                                                                

Date: 27 January 2022

 

ASSOCIATED BRITISH ENGINEERING PLC

 

STRATEGIC REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

BUSINESS REVIEW

 

A review of the business and of events during the year is contained in the Chairmen's Statement on page 2 which forms part of the Strategic Report.

 

 

BUSINESS MODEL AND STRATEGY

 

The Associated British Engineering Group has one subsidiary undertaking:                     

 

Akoris Trading Limited ("Akoris").

 

On 4 August 2020, the Group disposed of its investment in British Polar Engines Limited ("BPE"), as outlined in note 9, page 41 of these financial statements.

 

 

S.172 STATEMENT

 

The directors of the Company are required under section 172 of the Companies Act 2006 ('s.172') to act in a way that promotes the success of the Company for the benefit of its shareholders as a whole, whilst having regard to the following matters (amongst other things): the likely long term consequences; the interests of the Company's employees; the business relationships with suppliers and customers; the impact on the community and the environment; reputation for high standards of business conduct; and acting fairly between shareholders.

 

The governance framework adopted by the Associated British Engineering Group has been applied by the Company and its subsidiary, Akoris Trading Limited, and the matters that the directors of the Company are responsible for considering under s.172 have been considered to an appropriate extent by the Board in relation to both Company and its subsidiary. Further details of how the Board has considered the matters set out in s.172 (for the Group and for the Company) are set out in the Associated British Engineering Plc Annual Report and Accounts, which does not form part of this report. During the year, the directors have also considered, both individually and together, relevant matters where appropriate.

 

 

PRINCIPAL RISKS AND UNCERTAINTIES FACING THE BUSINESS

 

The Group's main operating business was its subsidiary Akoris.

 

The Board controls risks by adopting appropriate strategies and maintaining strong systems of internal control.

 

These strategies however cannot attempt to eliminate all risk, but control the risks that we believe are appropriate to take to maintain the group. Details of the group's risk management processes are given in the Corporate Governance report on page 46.

 

We have considered below the current risk factors that are considered by the Board to be material. However, in a changing world, new risks may appear or immaterial risks may become more important, and the directors will develop appropriate strategies.

 

The Board is looking to identify additional business to acquire with either high profitability or with the prospect of significant profitability.

 

Market conditions

The company has currently no significant trade. There remains a risk regarding the marketability of some of its investments and the ability to liquidate them. 

 

Reputational risk

Over many periods the Group has built up a reputation for integrity and is aware that this can be easily damaged with the consequential cost. To mitigate this risk, policies are in place which, cover standards of behaviour and good governance.

 

ASSOCIATED BRITISH ENGINEERING PLC

 

STRATEGIC REPORT (continued)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

 

COVID-19 risk

Considering the low number of employees, COVID-19 does not affect the Group.

 

Brexit risk

As the service we provide is predominantly delivered to UK-based customers, the impact of Brexit on our business is not as significant as it is to other businesses. As a Board, we will continue to closely monitor developments in the UK Government's Brexit plans and any potential impacts on the company and so like most businesses we are keen to have certainty over how Brexit will be implemented.

 

Defined Benefit pension scheme funding

As from 4 August 2020, the date of sale of the subsidiary, the Group no longer had any exposure to any defined benefit scheme.

 

Cyclical nature of the business

The trading outlook for the Group remains unpredictable due to the requirement to identify a trading business in the midst of a Global pandemic

 

Further consideration of risks and uncertainties in respect of financial instruments that face the Group and Company is contained in note 17 to the Group financial statements.

 

 

KEY PERFORMANCE INDICATORS

 

The Group uses various indicators to monitor its progress but in view of the low level of trade providing a report does aid any understanding.

 

Our employees

 

Whilst the Group does not have a specific human rights policy, it has a strong commitment to upholding the principles of human rights across our business.

 

 

CORPORATE GOVERNANCE

 

Details of corporate governance, which is part of this report for the year to 30 September 2021, are disclosed in the Corporate Governance report on page 46.

 

 

CORPORATE SOCIAL RESPONSIBILITY

 

The Group is committed to the protection of the environment and the development of processes which ensure that any adverse impact on the environment arising from its trading activities is minimised by encouraging reduction in waste, awareness of recycling, and encouraging employees to pay regard to environmental issues.

 

 

 

ASSOCIATED BRITISH ENGINEERING PLC

 

STRATEGIC REPORT (continued)

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

 

Employees

 

The Group's ability to achieve its commercial objectives and to service the needs of society and its customers in a profitable and competitive manner depends on the contribution of its employees. Employees are encouraged to develop their contribution to the business wherever they happen to work. The Group regularly keeps employees up to date with financial and other information.

 

The Group currently employs three people, made up of two male part time executives and one male part time administrator.

 

	Total no. of officers/employees	Number of males %	Number of females %
Senior Management	2	100	0
Whole Workforce	1	100	0

 

 

By order of the Board

 

 

 

 

 

Colin Weinberg

 For and on behalf of the Board of Directors

 

Date: 27 January 2022

 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

 

ASSOCIATED BRITISH ENGINEERING PLC

 

We have audited the financial statements of Associated British Engineering PLC (the "parent company") and its subsidiary companies (the "Group") for the year ended 30 September 2021 which comprise of the consolidated income statement, the consolidated statement of comprehensive income, the Group statement of financial position, the Group statement of cash flows, the Group statement of changes in equity, the Company balance sheet, the Company statement of changes in equity, the Company statement of cash flows and the 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 UK adopted international accounting standards.

In our opinion, except for the effects on the corresponding figures of the matter described in the Basis for qualified opinion section of our report, the financial statements:

·    give a true and fair view of the state of the group's and company's affairs as at 30 September 2021 and of its loss for the year then ended;

·    have been properly prepared in accordance with UK adopted international accounting standards; and

·      have been prepared in accordance with the requirements of the Companies Act 2006.

 

Basis for qualified opinion

 

On 4 August 2020 in the previous accounting period ended 30 September 2020 the company disposed of its investment in British Polar Engines Limited which was the main trading subsidiary of Associated British Engineering PLC. We were and continue to be unable to obtain from the management of British Polar Engines Limited details of the profit and loss account during the period 1 April 2019 until the date of disposal in August 2020. We were therefore unable to confirm or verify by alternative means the amounts included in the prior period consolidated statement of comprehensive income. As a result of this matter we were unable to determine whether any adjustments might have been found necessary to the elements included in the prior period consolidated statement of comprehensive income or the prior period consolidated statement of cash flows. This did not impact our work on the consolidated statement of financial position as at the 30 September 2020 or 30 September 2021 and the remainder of the group, as the assets and liabilities of the disposed subsidiary are not included at either 30 September 2020 or 30 September 2021. The parent company statement of financial position for both periods reported are also unaffected as the investment has been disposed.  Our audit opinion on these financial statements is modified because of the possible effect on the comparative figures presented in the consolidated statement of comprehensive income.

 

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and the parent 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 as applied to listed public interest entities, 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.

 

Key audit matters

 

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) we identified, including those which had the greatest effect on the overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

 

 

 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

 

ASSOCIATED BRITISH ENGINEERING PLC

 

	Key Audit Matter- Group	How the matter was addressed in the audit- Group
	Risk of management over ride of internal controls   ISAs (UK) require that we consider this.	We performed a fraud risk assessment in order to identify specific areas of risk relating to management over ride of controls.   We preformed testing of journals, with particular focus on manual adjustments to the income statement, to mitigate the risk of manipulation of revenue and the loss figures.   We independently assessed and challenged accounting estimates relevant to the financial statements for evidence of bias by the Directors that may represent a risk of material misstatement due to fraud for example accruals and provisions.   We assessed the overall control environment of the Group and held meetings with the directors.

 

Other than the matter described in the Basis for qualified opinion section, we have determined there are no other key audit matters to be communicated in our report.

 

Conclusions relating to going concern

 

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors' assessment of the entity's ability to continue to adopt the going concern basis of accounting included:

·    Testing the model used for management's going concern assessment which is primarily a cash flow forecast.  Management's assessment covered the 24 month period ended September 2023. We assessed this process by reviewing the assumptions and whether there was adequate support for these assumptions.

·    We considered the potential mitigating actions that management may have available to it to reduce costs, manage cash flows  or raise additional financing and assessed whether these were within the control of management and possible in the period of assessment.

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 group's and parent company's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

 

In relation to the entities reporting on how they have applied the UK Corporate Governance Code, we have nothing material to add or draw attention to in relation to the directors' statement in the financial statements about whether the director's considered it appropriate to adopt the going concern basis of accounting.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

 

Our approach to the audit

 

We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates.

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

 

ASSOCIATED BRITISH ENGINEERING PLC

 

 

Opinions on other matters prescribed by the Companies Act 2006

 

In our opinion, the part of the directors' remuneration report to be audited has been properly prepared in accordance with 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements and those reports have been prepared in accordance with applicable legal requirements;

·    the information about internal control and risk management systems in relation to financial reporting processes and about share capital structures, given in compliance with rules 7.2.5 and 7.2.6 in the Disclosure Rules and Transparency Rules sourcebook made by the Financial Conduct Authority (the FCA Rules), is consistent with the financial statements and has been prepared in accordance with applicable legal requirements; and

 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

 

ASSOCIATED BRITISH ENGINEERING PLC

 

·    information about the company's corporate governance code and practices and about its administrative, management and supervisory bodies and their committees complies with rules 7.2.2, 7.2.3 and 7.2.7 of the FCA Rules.

Matters on which we are required to report by exception

 

Except for the matter described in the Basis for qualified opinion section of our report, in the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in:

·    the strategic report or the directors' report; or

·    the information about internal control and risk management systems in relation to financial reporting processes and about share capital structures, given in compliance with rules 7.2.5 and 7.2.6 of the FCA Rules.

Other than the matter described in the Basis for qualified opinion section we have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

·    adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

·    the parent company financial statements and the part of the directors' remuneration report to be audited are not in agreement with the accounting records and returns; or

·    certain disclosures of directors' remuneration specified by law are not made; or

·    we have not received all the information and explanations we require for our audit; or

·    a corporate governance statement has not been prepared by the parent company.

Corporate governance statement

 

We have reviewed the directors' statement in relation to going concern, longer-term viability and that part of the Corporate Governance Statement relating to the group's compliance with the provisions of the UK Corporate Governance Statement specified for our review.

 

Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate Governance Statement is materially consistent with the financial statements or our knowledge obtained during the audit:

·    Directors' statement with regards the appropriateness of adopting the going concern basis of accounting and any material uncertainties identified set out on page 49;

·    Directors' explanation as to its assessment of the group's prospects, the period this assessment covers and why the period is appropriate set out on pages 49 and 50;

·    Directors' statement on whether it has a reasonable expectation that the group will be able to continue in operation and meet its liabilities set out on pages 49 and 50;

·    Directors' statement on fair, balanced and understandable set out on page 49;

·    Board's confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 49;

·    The section of the annual report that describes the review of effectiveness of risk management and internal control systems set out on page 49; and

·    The section describing the work of the audit committee set out on page 47.

 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

 

ASSOCIATED BRITISH ENGINEERING PLC

 

·    We obtained an understanding of laws and regulations that affect the group, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and regulations that we identified included the UK Companies Act, IFRS, Listing rules, tax legislation and employment legislation.

·    We enquired of the directors and reviewed ' meeting minutes for evidence of non-compliance with relevant laws and regulations. We also reviewed controls the directors have in place to ensure compliance.

·    We gained an understanding of the controls that the directors have in place to prevent and detect fraud. We enquired of the directors about any incidences of fraud that had taken place during the accounting period.

·    The risk of fraud and non-compliance with laws and regulations and fraud was discussed within the audit team and tests were planned and performed to address these risks. We identified the potential for fraud in the following areas: revenue recognition, related parties outside normal course of business, management override and misappropriation of cash and other assets.

·    We reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above.

·    We enquired of the directors about actual and potential litigation and claims.

·    We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud.

·    In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias.

 

 

 

 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

 

ASSOCIATED BRITISH ENGINEERING PLC

 

 

A further description of our responsibilities is available on the FRC's website at:

 

https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-the-fi/description-of-the-auditor%E2%80%99s-responsibilities-for 

 

This description forms part of our auditor's report.

 

Other matters which we are required to address

 

We were appointed by the directors on 29 January 2021 to audit the financial statements for the period ending 30 September 2021. Our total uninterrupted period of engagement is 2 years, covering the periods ending 30 September 2020 to date.

 

The non-audit services prohibited by the FRC's Ethical Standard were not provided to the group or the parent company and we remain independent of the group and the parent company in conducting our audit.

 

Our audit opinion is consistent with the additional report to the audit committee.

 

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 an auditor's report 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.

 

 

 

 

 

Bright Grahame Murray

 

 

Matthew Eade

Senior Statutory Auditor

For and on behalf of Bright Grahame Murray

Emperor's Gate

114a Cromwell Road

Kensington

London

SW7 4AG

 

Date: 27 January 2022

 

 

 

 

 

ASSOCIATED BRITISH ENGINEERING PLC

 

GROUP AND PARENT COMPANY ACCOUNTING POLICIES

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

 

BASIS OF PREPARATION

 

The Company is a public limited company incorporated in the United Kingdom under the Companies Act 2006. The address of the registered office is given on the final page of this annual report.

 

The financial statements have been prepared on the going concern basis.

 

These Group consolidated accounts and the company accounts have been prepared in accordance with International Financial Reporting Standards (IFRS) and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

 

The Company's ordinary shares are listed on the London Stock Exchange (LSE) under the ticker (ASBE) albeit that at the date of preparation share trading was suspended. These financial statements are presented in pound sterling because that is the currency of the primary economic environment in which the Group operates and all values are rounded to the nearest thousand pounds (£'000) except where otherwise indicated.

 

The Company's accounting reference date is 30 September. These financial statements are for the year 1 October 2020 to 30 September 2021. The comparative figures are for the period 1 April 2019 to 30 September 2020 (18 months).

 

 

NEWLY ISSUED ACCOUNTING STANDARDS

 

The following standards and amendments to existing standards became effective from 1 January 2021 and are applicable for the current reporting period:

 

·      Amendments to IAS 1, Presentation of Financial Statements. The amendments clarify the basis used for the classification of current and non-current liabilities.

 

·      Amendments to IAS 8, Accounting policies, Changes in Accounting Estimates and Errors. The amendments introduce the definition of an accounting estimate and include other amendments to IAS 8 to distinguish changes in accounting estimates from changes in accounting policies.

 

·      Amendments to IAS 37, Provisions, Contingent Liabilities and Contingent Assets. The amendments clarify the costs that should be included when assessing whether a contract is onerous.

 

 

The adoption of the above new and revised standards had no impact on the financial statements of the Group for the year ended 30 September 2021.

 

The following amendments to existing standards have been issued, but will become effective for annual periods beginning on or after 1 January 2022.

 

·      Amendments to IAS 1, Disclosure of Accounting policies. Amendments to IAS 1 and the Materiality Practice Statement, to accounting policies which require disclosure.

 

·      Amendments to IAS 37, Onerous contracts (Cost of fulfilling a contract). The amendments clarify the meaning of 'cost to fulfil a contract'.

 

·      Amendments to IAS 12, Deferred Tax related to Assets and Liabilities. The amendment narrowed the scope of the recognition exemption, so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences.

 

 

 

ASSOCIATED BRITISH ENGINEERING PLC

 

GROUP AND PARENT COMPANY ACCOUNTING POLICIES (continued)

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

GOING CONCERN

 

The Company has sufficient financial resources. As a consequence, the Directors believe the Company is well placed to manage its business risks successfully, including the impact of Covid-19 and Brexit. The Directors regularly review the forecasts.

 

In accordance with their responsibilities, the Directors of the Company have considered the appropriateness of the going concern basis, which has been used in the preparation of these financial statements. The Directors have prepared trading and cash flow forecasts for the Company, which take into account the future performance of the Company and consider the impact of the Covid-19 pandemic. The forecasts, including allowance for reasonable possible changes in trading performance indicate that the Company should be able to operate for at least 12 months from the approval of these financial statements. The Strategic Report and Directors Report includes further disclosure on the Covid-19 impact.

 

The forecasts for the 12 months from approval of these financial statements have been considered. As a result of the above assessment, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for a minimum period of 12 months from the date of signing these financial statements. Thus, they are adopting the going concern basis in preparing the annual financial statements.

 

BASIS OF CONSOLIDATION

 

The consolidated accounts include the Company and its subsidiary undertaking (from the date of acquisition or to the date of disposal where applicable). Intra group sales and profits are eliminated on consolidation. The accounts of the subsidiary undertaking are made up to 30 September 2021.

 

A subsidiary is an entity controlled, either directly or indirectly, by the Company, where control is the power to govern the financial and operating policies of the entity so as to obtain benefit from its activities. The acquisition method of accounting is used to account for acquisition of subsidiaries by the Group. The cost on an acquisition is measured as the fair value of the assets given, equity instruments issued, and liabilities incurred or assumed at the date of exchange. Acquisition costs are expensed in the consolidated income statement for the period in which they are incurred.

 

The consolidated financial statements consist of the results of the following entities:

 

Entity                                                                           Summary Description

 

Associated British Engineering Plc (ABE)                   Holding Company

 

Akoris Trading Ltd (AT)                                                Trading Company

 

British Polar Engines Ltd (BPE)                                   Trading Company. Disposed of in previous
                                                                                      year. Please refer to note 9 on page 40. 

 

REVENUE RECOGNITION

 

Revenue is measured at the fair value of the consideration receivable by the Group for goods supplied and services provided, excluding value added tax and trade discounts. Revenue from the sale of spare parts is recognised when the goods are dispatched or, if under a bill and hold arrangement, when they are available for despatch to a specific customer. Revenue from the sale of engines is recognised in accordance with the performance of contractual terms and specifically when the engines have been satisfactorily tested in accordance with contractual terms. Revenue from servicing and repair work is recognised when the work is completed.

 

 

 

 

ASSOCIATED BRITISH ENGINEERING PLC

 

GROUP AND PARENT COMPANY ACCOUNTING POLICIES (continued)

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

ACCOUNTING ESTIMATES AND JUDGEMENTS

 

Management are required, in accordance with IFRS, to exercise judgement and to make estimates and assumptions regarding the application of accounting policies and the resulting effect on reported amounts of assets, liabilities, income and expenses. These estimates and assumptions are based on historical experience and a review of current conditions prevailing at the time but actual results may differ from these estimates. Any such revision is recognised in the financial statements in the period in which the change in circumstance is detected.

 

ACCOUNTING JUDGEMENTS

 

The key areas where management have exercised judgement in the period, and the thought processes undertaken, are as follows:

 

DEFERRED TAX

 

Judgement is applied by management in determining the extent to which the recovery of carried forward tax losses is probable for the purpose of meeting the criteria for recognition as deferred tax assets. Note 18 sets out information on carried forward tax losses for which a deferred tax asset has not been recognised.

 

Accounting estimates

The key accounting estimates having an impact on carrying amounts of assets and liabilities in the reporting period are as follows:

 

INVENTORIES

 

Inventories are stated at the lower of cost (including an appropriate proportion of attributable supplier rebates and discounts) and net realisable values.

 

Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. Provision is made for obsolete or slow-moving inventories where appropriate.

 

INVENTORIES AND IMPAIRMENT OF INVENTORIES

 

Inventories of raw materials, work in progress and finished goods are valued at the lower of cost and net realisable value. Work in progress and finished goods include an appropriate allocation of overheads.

 

Cost is on a first in, first out basis. Net realisable value is the estimated selling price in the normal course of business, less estimated costs of completion and provision is made for obsolete, slow moving and defective inventories.

 

PROVISION FOR DOUBTFUL DEBTS

 

At the balance sheet date, each subsidiary evaluates the recoverability of trade receivables and records provisions for doubtful or disputed debts based on experience including comparisons of the relative age of accounts and consideration of the history. The actual level of debt collected may differ from the estimated levels of recovery and could impact future operating results positively or negatively. As at 30 September 2021 the Group has provided £Nil (2020: £Nil) against its trade receivables.

 

LEASED ASSETS

 

Leases of property and plant and equipment, where the Group has substantially all the risks and rewards of ownership, are classified as finance leases. Assets held under finance leases are capitalised at lease inception at the lower of the asset's fair value and the present value of the minimum lease payments. Obligations related to finance leases, net of finance charges in respect of future periods, are included as appropriate within borrowings. The interest element of the finance cost is charged to the income statement over the life of the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The property, plant or equipment is depreciated on the same basis as owned plant and equipment or over the life of the lease, if shorter.

ASSOCIATED BRITISH ENGINEERING PLC

 

GROUP AND PARENT COMPANY ACCOUNTING POLICIES (continued)

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

LEASED ASSETS (Continued)

 

Leases where the lessor retains substantially all the risks and rewards of ownership are classified as operating leases. Operating lease rentals (net of any related lease incentives) are charged against profit on a straight line basis over the period of the lease.

 

FOREIGN CURRENCIES

 

The functional and presentational currency of the parent company and its subsidiaries is UK Pound Sterling, rounded to the nearest thousand. Transactions in currencies other than the functional currency are translated at the rate ruling at the date of the transaction. At each balance sheet date, monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. Any gains or losses arising from the transactions are taken to the income statement.

 

PROPERTY, PLANT AND EQUIPMENT

 

Plant and equipment are stated at cost less depreciation and any impairment in value. Depreciation is calculated to write down the cost of all plant and equipment less its residual value by annual instalments over their expected useful lives on the following bases:

 

Plant and machinery                  7½- 33⅓ per cent straight line

 

These useful lives and residual values are reviewed in each financial period.

 

Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets or where shorter, over the term of the relevant lease. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised as income.

 

The carrying values of plant and machinery are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.  If any such indication exists, and where the carrying values exceed the estimated recoverable amount, the assets or cash generating units are written down to their recoverable amounts.

 

TAXATION

 

The tax expense represents the sum of the tax currently payable and deferred tax.

 

Current tax payable is based on the taxable profit or loss for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other periods and it further excludes items that are never taxable or deductible. The Group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

 

Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. The deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction, other than a business combination, that at the time of the transaction affects neither accounting nor taxable profit nor loss. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

 

Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of reversal of the temporary differences is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.

 

Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.

 

 

ASSOCIATED BRITISH ENGINEERING PLC

 

GROUP AND PARENT COMPANY ACCOUNTING POLICIES (continued)

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

CASH AND CASH EQUIVALENTS

 

Cash and cash equivalents in the Statement of Financial Position comprise cash at bank and in hand and short term deposits with a maturity of three months or less which are subject to an insignificant risk of changes in value.

 

FINANCIAL ASSETS

 

Financial assets are recognised initially at fair value, normally being the transaction price. In the case of financial assets not at fair value through profit or loss, directly attributable transaction costs are also included. The subsequent measurement of financial assets depends on their classification. The group derecognises financial assets when the contractual rights to the cash flows expire or the financial asset is transferred to a third party. This includes the de-recognition of receivables for which discounting arrangements are entered into.

 

FINANCIAL INSTRUMENTS

 

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into.

 

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities.  Financial liabilities are presented as such in the balance sheet.  Finance costs and gains or losses relating to financial liabilities are included in the income statement.  Finance costs are calculated so as to produce a constant rate of charge on the outstanding liability. Where none of the contractual terms of share capital meet the definition of a financial liability then this is classed as an equity instrument.  Dividends and distributions relating to equity instruments are debited direct to equity.

 

Further analysis of the Group's financial instruments, and the relevant exposure to risks and uncertainties, is stated in note 17 and the various classifications of financial assets and liabilities are identified and explained.

 

Trade and other receivables

At the balance sheet date, the Company and its subsidiary evaluate the recoverability of trade receivables and record provisions for doubtful or disputed debts based on experience including comparisons of the relative age of accounts and consideration of history. The actual level of debt collected may differ from the estimated levels of recovery and could impact future operating results positively or negatively.

 

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, demand deposits, and other short-term highly liquid investments that have maturities of three months or less from inception, are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.

 

Trade and other payables

Trade and other payables are originally recognised at fair value, net of transaction costs. Subsequent measurement is at amortised cost using the effective interest rate method. 

 

Investments in securities

Investments are recognised and derecognised on a trade date where a purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, with all transaction costs being written off to the income statement as incurred.

 

Investments are classified as available for sale and are measured at subsequent reporting dates at fair value. Gains and losses arising from changes in fair value of available for sale financial assets are included in other comprehensive income for the period.  When the asset is disposed of or deemed to be impaired, the cumulative gain or loss is reclassified from equity reserve to income statement.

 

 

 

ASSOCIATED BRITISH ENGINEERING PLC

 

GROUP AND PARENT COMPANY ACCOUNTING POLICIES (continued)

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT

 

At each balance sheet date the Group reviews the carrying amounts of its property, plant and equipment to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.   

 

Recoverable amount is the higher of fair value less costs to sell and value in use.  In assessing value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount.  An impairment loss is recognised as an expense immediately, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

 

Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior periods.

 

SEGMENTAL REPORTING

 

The standard requires financial information to be disclosed in the financial statements in the same format in which it is disclosed to the chief operating decision-maker. The chief decision-maker has been identified as the Board, at which level strategic decisions are made.

 

EQUITY AND RESERVES

 

Share capital represents the nominal value of shares that have been issued except for the preference shares classified as debt. Deferred shares represent shares arising from the sub-division of ordinary shares of £2.

 

Share premium includes any premiums received on issue of share capital.  Any transaction costs associated with the issuing of shares are deducted from share premium, net of any related income tax benefits. Retained earnings include all current and prior period retained profits and losses. Available for sale reserve includes all gains and losses relating to Available for Sale financial assets. Other reserves relate to movements not classified in any of the reserves detailed above. Revaluation reserve includes all gains and losses relating to Property, Plant and Equipment. All transactions with owners of the parent are recorded separately within equity.

 

 

 

 

ASSOCIATED BRITISH ENGINEERING PLC

 

CONSOLIDATED INCOME STATEMENT

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

		30 Sep		30 Sept
	Note	2021		2020
		£'000		£'000
REVENUE	1	-		165
Operating costs	2	(88)		(26)
OPERATING (LOSS)/PROFIT	3	(88)		139
Finance income	6	-		1
Other income		1		5
(LOSS)/PROFIT BEFORE TAXATION		(87)		145
Taxation	7	-		-
(LOSS)/PROFIT FOR THE YEAR FROM CONTINUOUS OPERATIONS		(87)		145
PROFIT ON DISPOSAL OF DISCONTINUED OPERATIONS (PAGE 41)	9	-		5,239
TOTAL (LOSS)/PROFIT FOR THE YEAR		(87)		5,384
PROFIT/(LOSS) PER SHARE ON PROFIT/(LOSS) FOR THE YEAR
ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT COMPANY
BASIC AND DILUTED PROFIT FROM DISCONTINUED OPERATIONS		-		256.0p
BASIC AND DILUTED (LOSS)/PROFIT	8	(4.25p)		263.0p
(Loss)/Profit for the year attributable to:
Owners of the Company		(87)		5,384
Non-controlling interests		-		-
		(87)		5,384

 

 

 

 

The accounting policies on pages 15 to 20 and the notes on pages 26 to 35 form part of these accounts.

 

ASSOCIATED BRITISH ENGINEERING PLC

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

		Year ended 30 Sep		Period ended 30 Sep
		2021		2020
		£'000		£'000
(Loss)/Profit in the year		(87)		5,384
Other comprehensive income
Gain on available for sale financial assets
Unrealised gains (*)		236		327
Gains released to Retained Earnings		149		-
Other comprehensive profit in the year		385		327
TOTAL COMPREHENSIVE INCOME IN THE YEAR		298		5,711
Total comprehensive income attributable to:
Owners of the Company		298		5,711
Non-controlling interests		-		-
		298		5,711

 

 

 (*) = Items which may subsequently be reclassified to the Income Statement.

 

 

 All activities are classified as continuing.

 

 

 

 

The accounting policies on pages 15 to 20 and the notes on pages 26 to 35 form part of these accounts.

 

ASSOCIATED BRITISH ENGINEERING PLC                                                    Company Number: 00110663

 

GROUP STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2021

 

	Note	2021		2020
		£'000		£'000
ASSETS
Non-current assets
Available for sale financial assets	12	419		413
		419		413
Current assets
Trade and other receivables	11	21		24
Cash and cash equivalents		489		186
		510		210
Total assets		929		623
EQUITY AND LIABILITIES
Called up share capital	13	51		51
Deferred shares	13	2,594		2,594
Share premium account		5,370		5,370
Other reserves		11		11
Available for Sale reserve		360		270
Retained earnings		(7,497)		(7,705)
Equity attributable to the Parent Company's Equity shareholders		889		591
Total equity		889		591
LIABILITIES
Current liabilities
Trade and other payables	16	40		32
		40		32
Total liabilities		40		32
Total equity and liabilities		929		623

 

 

 

The financial statements were approved and authorised for issue by the Board of Directors on 27 January 2022 and were signed below on its behalf by:

 

C Weinberg

Director

 

 

 

The accounting policies on pages 15 to 20 and the notes on pages 26 to 35 form part of these accounts.

 

ASSOCIATED BRITISH ENGINEERING PLC

 

GROUP STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

	Share capital	Share premium	Deferred shares	Other reserve	Available for Sale reserve	Revaluation reserve	Retained earnings	Attributa-ble to owners of the parent	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 1 April 2019	51	5,370	2,594	11	805	550	(13,089)	(3,708)	(3,708)
Profit for the period	-	-	-	-	-	-	145	145	145
Other comprehensive income
Disposal of subsidiary	-	-	-	-	(862)	(550)	5,239	3,827	3,827
Unrealised gain on Available for Sale financial assets (*)	-	-	-	-	327	-	-	327	327
	--------------	--------------	--------------	--------------	--------------	--------------	--------------	--------------	--------------
Balance at 1 October 2020	51	5,370	2,594	11	270	-	(7,705)	591	591
	--------------	--------------	---------------	--------------	--------------	--------------	---------------	---------------	---------------
Loss for the year	-	-	-	-	-	-	(87)	(87)	(87)
Other comprehensive income
Unrealised gain on Available for Sale financial assets (*)	-	-	-	-	385	-	-	385	385
Realised gain on
Available for Sale
financial assets
Fair value adjustments	-	-	-	-	55	-	(55)	-	-
Realised gains	-	-	-	-	(350)	-	350	-	-
	--------------	--------------	---------------	--------------	--------------	--------------	---------------	---------------	---------------
Balance at 30 September 2021	51	5,370	2,594	11	360	-	(7,497)	889	889
	======	======	======	======	======	======	=======	=======	======

 

 

 

(*) Items which may subsequently be reclassified to the Income Statement.

 

 

 

  

The accounting policies on pages 15 to 20 and the notes on pages 26 to 35 form part of these accounts.

 

ASSOCIATED BRITISH ENGINEERING PLC

 

GROUP CASH FLOW STATEMENT

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

	2021		2020
	£'000		£'000
Cash flows from operating activities
Cash used in operations	(77)		91
Net cash used in operating activities	(77)		91
Cash flows from investing activities
Movements in investments	-		(65)
Sale proceeds from trading investments	380		-
Sale proceeds from subsidiary disposal	-		100
Net cash increase from investing activities	380		35
Net increase in cash and cash equivalents	303		126
Cash decrease on disposal of subsidiary	-		(329)
Cash and cash equivalents at beginning of period	186		389
Cash and cash equivalents at end of period	489		186
CASH FLOW FROM OPERATING ACTIVITIES
	2021		2020
	£'000		£'000
(Loss)/profit from continuous operations	(87)		145
Adjustments for changes in working capital:
Decrease/(increase) in trade and other receivables	3		(20)
Increase/(decrease) in payables	7		(34)
	(77)		91
Cash used in operations	(77)		91

 

 

 

 

 

The accounting policies on pages 15 to 20 and the notes on pages 26 to 35 form part of these accounts.
 

ASSOCIATED BRITISH ENGINEERING PLC

 

NOTES TO THE ACCOUNTS - GROUP

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

1.      SEGMENTAL REPORTING

 

	All sales made in the prior period were within the United Kingdom and relate to the rendering of services.

          In the year ended 30 September 2021 save for dollar bank accounts and overseas debtors, all of the

          assets held by the Group were located in the United Kingdom and all capital expenditure was incurred

          within the United Kingdom.

 

Operating segments

 

The following segment information has been prepared in accordance with IFRS 8, "Operating Segments", which defines requirements for the disclosure of financial information of an entity's operating segments.

 

The Board consider the Group on an individual company basis.  Reports by individual companies are used by the chief decision-maker in the Group.  Significant operating segments are Associated British Engineering Plc and Akoris Trading Limited.

 

The Group's operations are located in the United Kingdom.  Any transactions between business units are on normal commercial terms and conditions.

 

Akoris Trading Limited is a commodity and natural resource trading, finance and investment company.

 

Associated British Engineering Plc is the Group's holding company.

 

 

 

Year ending 30 September 2021			Associated British Engineering Plc		Akoris Trading Limited		Consolidated
			£'000		£'000		£'000
External sales			-		-		-
Segment result (LBIT)			(84)		(3)		(87)
Net finance expenses							-
Taxation							-
Loss after tax							(87)
Balance sheet
Segment assets			900		29		929

 

 

 

 

ASSOCIATED BRITISH ENGINEERING PLC

 

NOTES TO THE ACCOUNTS - GROUP (continued)

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

1.    SEGMENTAL REPORTING (continued)

Period ended 30 September 2020	Associated British Engineering Plc		British Polar Engines Limited		Akoris Trading Limited		Consolidated
	£'000		£'000		£'000		£'000
External sales	165		Unavailable		-		165
Segment result PBIT/(LBIT)	146		Unavailable		(1)		145
Net finance expenses							-
Taxation							-
Profit after tax							145
Other information
Capital additions	-		Unavailable		-		-
Balance sheet
Segment assets	591		Unavailable		32		623

 

 

  British Polar Engines was sold on 4 August 2020, for further details please see note 9 (page 41).

 

          All of the revenue recognised by the Group during the prior period arose from contracts from customers

          as defined in IFRS 15.

 

2.	OPERATING COSTS	Year		Period
		ended		ended
		30 Sep		30 Sep
		2021		2020
		£'000		£'000
	Staff costs (note 4)	5		65
	Other expenses	83		(39)
		88		26

         

  

3.	OPERATING (LOSS)/PROFIT		Year ended 30 Sep		Period ended 30 Sep
			2021		2020
			£'000		£'000
		Operating (loss)/profit is stated after charging
		Fees payable to the Company's auditor for the audit of the Company's annual accounts:
		PLC audit costs	9		9
		The audit of the Company's subsidiaries pursuant to legislation	1		1

 

 

 

ASSOCIATED BRITISH ENGINEERING PLC

 

NOTES TO THE ACCOUNTS - GROUP (continued)

FOR THE YEAR ENDED 30 SEPTEMBER 2021

 

4.	STAFF COSTS AND EMPLOYEES	Year ended 30 Sep		Period   ended  30 Sep
		2021		2020
		£'000		£'000
	Wages and salaries	5		62
	Social security costs	-		3
		5		65
	The average monthly number of persons employed by the Group during the period was:
		Year ended 30 Sep	Period ended 30 Sep
	2021			2020
	Number			Number
	By activity
	Administration	3		3
		3		3

5.       DIRECTORS' REMUNERATION

          Directors received emoluments of £1,050 (2020: £78,336). Further details can be found on page 52.

 

		Year		Period
		ended		ended
		30 Sep		30 Sep
	KEY MANAGEMENT COMPENSATION	2021		2020
		£'000		£'000
	Remuneration of Group directors	-		42

          

         The Group made no pension contributions in respect of Group directors during the year ended 30

          September 2021.

 

 

6.	INTEREST RECEIVED		Year ended 30 Sep		Period ended 30 Sep
			2021		2020
			£'000		£'000
	Interest receivable on cash and cash equivalents		-		1
			-		1