Exhibit 99.1

Registered number: 06999250

 

 

 

 

 

 

 

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Accutronics Limited

Company Information

 

 

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Accutronics Limited

Contents

 

 

		Page
Strategic report		1
Directors’ report		2 - 3
Independent auditors’ report		4 - 5
Profit and loss account		6
Balance sheet		7
Cash flow statement		8
Notes to the financial statements		9 - 18
Detailed profit and loss account and summaries		19 - 21

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Accutronics Limited

Strategic report

for the year ended 31 August 2015

 

 

Principal activity

The principal activity of the company in the year continued to be that of a developer and manufacturer of custom rechargeable batteries for professional applications.

Business review

The Directors are pleased to report another successful year for the company. This was a year that saw a high level of activity in new product development, but still yielded a turnover of £8.56 million and operating profit was £737k, a significant improvement on the prior year. Our liquidity remains strong and the company continues to have the appropriate headroom to enable it to move forward into the coming year and continue to execute the strategic growth plans established for Accutronics Limited.

We have made progress in expanding our customer base and expect this to continue in the coming year. We are pleased with the new customer relationships we have forged over the last year and will continue to build ever stronger relationships with existing customers. This continues to strengthen yet further the business and allows us to continue to focus on delivering the latest battery technology to OEMs worldwide in a range of professional markets including Medical and specialist electronics markets.

The continued strong investment in New Product Development and R & D continues to enhance our own ready for market platform, Entellion. This, along with our innovative approach to unique bespoke battery solutions, our focus on quality and our excellent levels of customer service, continue to ensure that we deliver for all our stakeholders.

Principal risks and uncertainties

The company’s operations expose it to a variety of financial risks including, principally, currency risk which it seeks to mitigate where possible.

Currency risk

The company has exposure to currency fluctuations in both the Euro and US Dollar but have appropriate policies and instruments in place to monitor and control this potential exposure.

Financial key performance indicators

The Gross margin for the year is 32.6% (2014 - 30.4%) and is deemed appropriate for the business given its required infrastructure and its need to invest in R & D.

Its Operating Profit margin is 8.7% (2014 - 4.4%), again acceptable given the R & D investment currently being made.

Other key performance indicators

Headcount, at 75 FTE, remains appropriate given the current order book and requirements.

This report was approved by the board on 11 November 2015 and signed on its behalf.

R A Phillips

Director

 

 

Page 1

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Accutronics Limited

Directors’ report

for the year ended 31 August 2015

 

 

The directors present their report and the financial statements for the year ended 31 August 2015.

Directors

The directors who served during the year were:

R A Phillips

J B Grenfell

M Allen

Directors’ responsibilities statement

The directors are responsible for preparing the Directors’ report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

•

select suitable accounting policies and then apply them consistently;

 

•

make judgments and accounting estimates that are reasonable and prudent;

 

•

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

 

•

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors’ reports may differ from legislation in other jurisdictions.

Results

The profit for the year, after taxation, amounted to £630,643 (2014 - £311,974).

 

 

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Accutronics Limited

Directors’ report

for the year ended 31 August 2015

 

 

 

Provision of information to auditors

Each of the persons who are directors at the time when this Directors’ report is approved has confirmed that:

 

•

so far as that director is aware, there is no relevant audit information of which the company’s auditors are unaware, and

 

•

that director has taken all the steps that ought to have been taken as a director in order to be aware of any information needed by the company’s auditors in connection with preparing their report and to establish that the company’s auditors are aware of that information.

Auditors

The auditors, Dains LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 11 November 2015 and signed on its behalf.

R A Phillips

Director

 

 

Page 3

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Accutronics Limited

Independent auditors’ report to the members of Accutronics Limited

 

 

We have audited the financial statements of Accutronics Limited for the year ended 31 August 2015, which comprise the profit and loss account, the balance sheet and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 Auditors’ 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.

Respective responsibilities of directors and auditors

As explained more fully in the Directors’ responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Strategic report and the Directors’ report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

 

•

give a true and fair view of the state of the company’s affairs as at 31 August 2015 and of its profit for the year then ended;

 

•

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

 

•

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

Opinion on other matter prescribed by the Companies Act 2006

In our opinion 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.

 

 

Page 4

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Accutronics Limited

Independent auditors’ report to the members of Accutronics Limited

 

 

 

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

 

•

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

 

•

the financial statements are not in agreement with the accounting records and returns; or

 

•

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

 

•

we have not received all the information and explanations we require for our audit.

Mark Hargate FCA (Senior statutory auditor)

for and on behalf of

Dains LLP

Statutory Auditor

Chartered Accountants

Birmingham

11 November 2015

 

 

Page 5

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Accutronics Limited

Profit and loss account

for the year ended 31 August 2015

 

 

 

				2015				2014
		Note		£				£
Turnover		1			8,562,211				7,533,916
Cost of sales					(5,770,594	)			(5,240,414	)
Gross profit					2,791,617				2,293,502
Selling and distribution expenses					(93,387	)			(93,622	)
Administrative expenses					(1,960,751	)			(1,871,635	)
Operating profit		3			737,479				328,245
Interest payable and similar charges		6			(37,873	)			(21,443	)
Profit on ordinary activities before taxation					699,606				306,802
Tax on profit on ordinary activities		7			(68,963	)			5,172
Profit for the financial year		15			630,643				311,974

All amounts relate to continuing operations.

There were no recognised gains and losses for 2015 or 2014 other than those included in the profit and loss account.

The notes on pages 9 to 18 form part of these financial statements.

 

 

Page 6

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Accutronics Limited

Registered number: 06999250

Balance sheet

as at 31 August 2015

 

 

 

								2015								2014
		Note		£				£				£				£
Fixed assets
Tangible assets		8							279,483								232,493
Current assets
Stocks		9			1,474,624								1,292,167
Debtors		10			1,672,652								1,299,015
Cash at bank and in hand					824,633								239,327
					3,971,909								2,830,509
Creditors: amounts falling due within one year		11			(2,075,763	)							(1,242,816	)
Net current assets									1,896,146								1,587,693
Total assets less current liabilities									2,175,629								1,820,186
Creditors: amounts falling due after more than one year		12							(59,843	)							(173,609	)
Provisions for liabilities
Deferred tax		13							(50,991	)							(29,522	)
Net assets									2,064,795								1,617,055
Capital and reserves
Called up share capital		14							254,453								250,000
Profit and loss account		15							1,810,342								1,367,055
Shareholders’ funds		16							2,064,795								1,617,055

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 11 November 2015.

R A Phillips

Director

The notes on pages 9 to 18 form part of these financial statements.

 

 

Page 7

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Accutronics Limited

Cash flow statement

for the year ended 31 August 2015

 

 

 

				2015				2014
		Note		£				£
Net cash flow from operating activities		18			182,208				72,035
Returns on investments and servicing of finance		19			(37,873	)			(21,443	)
Taxation					4,480				(4,480	)
Capital expenditure and financial investment		19			(141,304	)			(162,734	)
Equity dividends paid					(100,000	)			(22,899	)
Cash outflow before financing					(92,489	)			(139,521	)
Financing		19			(7,844	)			11,113
Decrease in cash in the year					(100,333	)			(128,408	)

 

 

Reconciliation of net cash flow to movement in net funds/debt

for the year ended 31 August 2015

 

 

 

		2015				2014
		£				£
Decrease in cash in the year			(100,333	)			(128,408	)
Cash outflow from decrease in debt and lease financing			7,844				(11,113	)
Movement in net debt in the year			(92,489	)			(139,521	)
Net funds at 1 September 2014			88,367				227,888
Net (debt)/funds at 31 August 2015			(4,122	)			88,367

The notes on pages 9 to 18 form part of these financial statements.

 

 

Page 8

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Accutronics Limited

Notes to the financial statements

for the year ended 31 August 2015

 

 

 

1.	Accounting policies

 

1.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards.

 

1.2

Turnover

Turnover comprises revenue recognised by the company in respect of goods supplied, exclusive of Value Added Tax and trade discounts. Turnover is recognised when goods are despatched to customers.

 

1.3

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

 

Leasehold improvements		-						Over the term of the lease
Plant and machinery		-			20	%		straight line
Furniture, fittings and equipment		-			33	%		straight line

 

1.4

Operating leases

Rentals under operating leases are charged to the profit and loss account on a straight line basis over the lease term.

 

1.5

Stocks and work in progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes an appropriate proportion of labour and overheads.

 

1.6

Deferred taxation

Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation.

A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse.

Deferred tax assets and liabilities are not discounted.

 

 

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Accutronics Limited

Notes to the financial statements

for the year ended 31 August 2015

 

 

 

1.	Accounting policies (continued)

 

1.7

Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date.

Transactions in foreign currencies are translated into sterling at the rate ruling at the start of the month in which the transaction occurs.

Exchange gains and losses are recognised in the profit and loss account.

 

1.8

Research and development

Research expenditure is written off in the year in which it is incurred.

Development costs not considered to meet the criteria for capitalisation as intangible fixed assets are written off in the year of expenditure.

 

1.9

Pensions

The company contributes to the personal pension plans of a number of employees. The profit and loss account charge in the year represents the amounts contributed to these schemes in the year.

 

2.

Turnover

The whole of the turnover is attributable to the company’s principal activity.

A geographical analysis of turnover is as follows:

 

 

 

Page 10

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Accutronics Limited

Notes to the financial statements

for the year ended 31 August 2015

 

 

 

3.	Operating profit

The operating profit is stated after charging/(crediting):

 

 

4.	Staff costs

Staff costs, including directors’ remuneration, were as follows:

 

The average monthly number of employees, including the directors, during the year was as follows:

 

 

 

Page 11

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Accutronics Limited

Notes to the financial statements

for the year ended 31 August 2015

 

 

 

5.	Directors’ remuneration

 

During the year retirement benefits were accruing to 1 director (2014 - 1) in respect of defined contribution pension schemes.

 

6.	Interest payable

 

 

7.

Taxation

 

 

 

 

Page 12

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Accutronics Limited

Notes to the financial statements

for the year ended 31 August 2015

 

 

 

7.	Taxation (continued)

 

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2014 - lower than) the standard rate of corporation tax in the UK of 20% (2014 - 20%). The differences are explained below:

 

		2015				2014
		£				£
Profit on ordinary activities before tax			699,606				306,802
Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 20% (2014 - 20%)			139,921				61,360
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment			2,359				1,760
Capital allowances for year in excess of depreciation			(8,272	)			(14,164	)
Utilisation of tax losses			(13,719	)			—
Adjustments to tax charge in respect of prior periods			(1	)			(4,356	)
Short term timing difference leading to an increase in taxation			297				43
Research and development claim leading to a decrease in the tax charge			(69,982	)			(66,973	)
Unrelieved tax losses carried forward			—				17,974
Other differences leading to a decrease in the tax charge			(3,109	)			—
Current tax charge/(credit) for the year (see note above)			47,494				(4,356	)

 

 

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Accutronics Limited

Notes to the financial statements

for the year ended 31 August 2015

 

 

 

8.	Tangible fixed assets

 

 

9.

Stocks

 

 

10.

Debtors

 

 

 

 

Page 14

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Accutronics Limited

Notes to the financial statements

for the year ended 31 August 2015

 

 

 

11.	Creditors:

Amounts falling due within one year

 

Included within accruals and deferred income at the year end are preferential dividends payable of £110,255 (2014 - £22,899).

 

12.	Creditors:

Amounts falling due after more than one year

 

 

13.	Deferred taxation

 

The provision for deferred taxation is made up as follows:

 

 

 

Page 15

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Accutronics Limited

Notes to the financial statements

for the year ended 31 August 2015

 

 

 

14.	Share capital

 

On 11 May 2015 the company issued and allotted 4,453 Ordinary shares of £1 each, at par.

The ‘A’ Ordinary shares shall be a separate class of shares for the purpose of paying dividends or other distributions but, in all other respects, shall rank pari passu with the Ordinary shares.

 

15.

Reserves

 

 

16.	Reconciliation of movement in shareholders’ funds

 

 

17.

Dividends

 

 

 

 

Page 16

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Accutronics Limited

Notes to the financial statements

for the year ended 31 August 2015

 

 

 

18.	Net cash flow from operating activities

 

 

19.	Analysis of cash flows for headings netted in cash flow statement

 

 

 

 

 

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Accutronics Limited

Notes to the financial statements

for the year ended 31 August 2015

 

 

 

20.	Analysis of changes in net funds

 

 

21.	Pension commitments

The company contributes to the personal pension plans of a number of employees. The charge in the year represents the amounts contributed to these schemes in the year. Contributions for the year amounted to £37,533 (2014 - £32,621). Included in creditors are contributions totalling £9,192 (2014 - £6,566) which were payable to the funds at the balance sheet date.

 

22.	Operating lease commitments

At 31 August 2015 the company had annual commitments under non-cancellable operating leases as follows:

 

 

23.	Related party transactions

During the year R A Phillips, a director of the company, was paid an interim dividend of £20,000 (2014 - £Nil).

 

24.	Controlling party

In the opinion of the directors there is no one ultimate controlling party.

 

 

Page 18

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Accutronics Limited

Detailed trading and profit and loss account

for the year ended 31 August 2015

 

 

 

				2015				2014
		Page		£				£
Turnover		20			8,562,211				7,533,916
Cost of sales		20			(5,770,594	)			(5,240,414	)
Gross profit					2,791,617				2,293,502
Gross profit %									30.4	%
Less: Overheads
Selling and distribution expenses		20			(93,387	)			(93,622	)
Administration expenses		20			(1,960,751	)			(1,871,635	)
Operating profit					737,479				328,245
Interest payable		21			(37,873	)			(21,443	)
Profit for the year					699,606				306,802

 

 

Page 19

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Accutronics Limited

Schedule to the detailed accounts

for the year ended 31 August 2015

 

 

 

		2015				2014
		£				£
Turnover
Sales - UK - assembled products			108,776				35,097
Sales - UK - non assembled products			190,434				267,398
Sales - EC - assembled products			6,254,012				5,901,856
Sales - EC - non assembled products			995,590				455,732
Sales - EC - NRE/Engineering income			276,994				279,943
Sales - Rest of world - assembled products			469,978				485,115
Sales - Rest of world - non assembled products			116,077				39,475
Other income - UK			150,350				69,300
			8,562,211				7,533,916
		2015				2014
		£				£
Cost of sales
Opening stocks			1,292,167				1,313,211
Closing stocks			(1,474,624	)			(1,292,167	)
Purchases			4,345,162				3,673,791
Wages and salaries			881,742				903,542
National insurance			69,872				74,486
Staff pension costs			15,010				12,338
Subcontract labour			9,498				28,210
Components and tooling			354,937				284,372
Carriage and import duty			230,806				204,024
Manufacturing overheads			46,024				38,607
			5,770,594				5,240,414
		2015				2014
		£				£
Selling and distribution expenses
Advertising and marketing			93,085				94,007
Bad debts			302				(385	)
			93,387				93,622

 

 

Page 20

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Accutronics Limited

Schedule to the detailed accounts

for the year ended 31 August 2015

 

 

 

 

		2015				2014
		£				£
Administration expenses
Directors salaries			155,389				148,379
Directors pension costs			6,411				6,361
Staff salaries			722,538				612,829
Staff private health insurance			24,895				23,112
Staff national insurance			88,254				82,796
Staff pension costs			31,122				26,260
Reorganisation costs			—				189
Staff training			6,430				13,593
Other staff costs			4,453				—
Canteen			21,138				17,055
Motor running costs			32,319				36,435
Entertainment			298				—
Hotels, travel and subsistence			78,063				77,508
Consultancy			88,367				85,917
Printing, postage and stationery			11,229				16,538
Telephone and fax			34,354				35,572
Computer costs			74,391				55,902
Legal and professional			24,069				25,735
Auditors’ remuneration			9,500				9,200
Auditors’ remuneration - non-audit			4,840				3,250
Equipment leasing			16,108				14,566
Bank charges			15,758				13,857
Debt factoring charges			19,834				16,275
Difference on foreign exchange			82,102				153,341
Sundry expenses			42,738				42,194
Rent			55,000				55,000
Rates			29,360				30,304
Light and heat			19,566				16,703
Insurances			39,000				37,690
Repairs and maintenance			4,655				11,444
Depreciation on plant and machinery			41,579				23,761
Depreciation on furniture, fittings and equipment			52,736				62,911
Profit on sale of tangible assets			—				(150	)
Development work			115,702				113,108
Recruitment costs			8,553				4,000
			1,960,751				1,871,635

 

		2015				2014
		£				£
Interest payable
Bank overdraft interest payable			28,818				13,750
Other interest			9,055				7,693
			37,873				21,443

 

 

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