Earnings by function

Page 1

Company LimitedConsolidated statement of comprehensive income and retained earningsfor the year ended 30 April 2010

2010£

Revenue 6,863,545 Cost of Sales -5,178,530 Gross Profit 1,685,015 Other income 88,850 Distribution costs -175,550 Administrative expenses -810,230 Other expenses -106,763 Finance costs -26,366 Profit before tax 654,956 Income tax expense -270,250 Profit for the year 384,706 Retained earnings at start of year 2,171,353 Dividends -150,000 Retained earnings at end of year 2,406,059

Earnings by function

Page 2

2009£

5,808,653 -4,422,575 1,386,078

25,000 -156,800 -660,389 -100,030

-36,712 457,147

-189,559 267,588

2,003,765 -100,000

2,171,353

Earnings by nature

Page 3

Company LimitedConsolidated statement of comprehensive income and retained earningsfor the year ended 30 April 2010

2010£

Revenue 6,863,545 Other income 88,850 Changes in inventories of finished goods and work in progress 3,310 Raw material and consumables used -4,786,488 Employee salaries and benefits -936,142 Depreciation and amortisation expense -272,060 Impairment of property, plant and equipment -30,000 Other expenses -249,693 Finance costs -26,366 Profit before tax 654,956 Income tax expense -270,250 Profit for the year 384,706 Retained earnings at start of year 2,171,353 Dividends -150,000 Retained earnings at end of year 2,406,059

Earnings by nature

Page 4

2009£

5,808,653 25,000 -1,360

-4,003,235 -879,900 -221,247

0 -234,052

-36,712 457,147

-189,559 267,588

2,003,765 -100,000

2,171,353

Financial position

Page 5

Company LimitedConsolidated statement of financial positionat 30 April 2010

2010 2009£ £

ASSETSCurrent assetsCash 28,700 22,075 Trade and other receivables 585,548 573,862 Invetories 57,381 47,920

671,629 643,857 Non-current assetsInvestment in associate 107,500 107,500 Property, plant and equipment 2,549,945 2,401,455 Intangible assets 850 2,550 Deferred tax asset 4,309 2,912

2,662,604 2,514,417 Total Assets 3,334,233 3,158,274

LIABILITIES AND EQUITYCurrent liabilitiesBank overdraft 83,600 115,507 Trade payables 431,480 420,520 Interest payable 2,000 1,200 Current tax liability 271,647 190,316 Provision for warranty obligations 4,200 5,040 Current portion of employee benefit obligations 4,944 4,754 Current portion of obligations under finance leases 21,461 19,884

819,332 757,221

Financial Position _cont

Page 6

Company LimitedConsolidated statement of financial positionat 30 April 2010

2010 2009£ £

Non-current liabilitiesBank loan 50,000 150,000 Long-term employee benefit obligations 5,679 5,076 Obligations under finance leases 23,163 44,624

78,842 199,700 Total liabilities 898,174 956,921

EquityShare capital 30000 30000Retained earnings 2406059 2171353

2436059 2201353

Total liabilites and equity 3,334,233 3,158,274

Cash Flow

Page 7

Company LimitedConsolidated statement of financial positionat 30 April 2010

2010 2009£ £

Cash flows from operating activitiesProfit for the year 384,706 267,588 Adjustments for non-cash income and expenses: Non-cash finance costs 800 1,200 Non-cash income tax expense 79,934 16,348 Depreciation of property, plant and equipment 270,360 219,547 Impairment loss 30,000 - Amortisation of intangibles 1,700 1,700 Cash flow included in investing activities: Gain on sale of equipment -63,850 - Changes in operating assets and liabilities Decrease (increase) in trade and other receivables -11,686 -52,628 Decrease/(increase) in inventories -9,461 -2,870 Decrease/(increase) in trade payables 10,120 10,870 Increase in current and long-term employee benefit payable 793 193 Net cash from operating activities 693,416 461,948 Cash flow from investing activitiesProceeds from sale of equipment 100,000 - Purchases of equipment -485,000 -435,000 Net cash used in investing activities -385,000 -435,000 Cash flows from financing activitiesPayment of finance lease liabilities -19,884 -18,423 Repayment of borrowings -100,000 - Dividends paid -150,000 -100,000 Net cash used in financing activities -269,884 -118,423 Net increase/(decrease) in cash and cash equivalents 38,532 -91,475 Cash and cash equivalents at beginning of year -93,432 -1,957 Cash and cash equivalents at end of year -54,900 -93,432

Notes P_L

Page 8

Revenue 2010£

Sale of Goods -6,743,545 Services -120,000

-6,863,545

Finance costs 2,010 £

Interest on bank loan and overdraft 21,250 Interest on finance leases 5,116

26,366

Profit before tax 2,010 £

Cost of inventories recognised as expense 5,187,991 Research and development cost (included in other expenses) 31,620 Foreign exchange loss on trade payables (included in other expenses) 1,000 Warranty expense (included in cost of sales)/(inculded in raw materials) 5,260

Notes P_L

Page 9

2009£

-5,688,653 -120,000

-5,808,653

2,009 £ 30,135

6,577

36,712

2,009 £

4,425,445 22,778

7,340

Notes Current assets

Page 10

10. Trade and other receivables

Trade debtorsPrepayments

11. Inventories

Raw materialsWork in progressFinished goods

Notes Current assets

Page 11

2010 2009£ £

528,788 528,384 56,760 45,478

585,548 573,862

2,010 2,009 £ £ 42,601 36,450

1,140 900 13,640 10,570

57,381 47,920

Notes Tangible assets

Page 12

13. Property, pland and equipment

Land andbuildings

£Cost1 January 2010 1,960,000 AdditionsDisposals31 December 2010 1,960,000

Accumulated depreciation and impairment

1 January 2010 -390,000 Annual depreciation -30,000 ImpairmentLess accumulated depreciation on disposals31 December 2010 -420,000

Carrying amount 31 December 2010 1,540,000

Carrying amount 31 December 2009 1,570,000

Notes Tangible assets

Page 13

Fixtures andequipment Total

£ £

1,102,045 3,062,045 485,000 485,000

-241,000 -241,000 1,346,045 3,306,045

-270,590 -660,590 -240,360 -270,360

-30,000 -30,000 204,850 204,850

-336,100 -756,100

1,009,945 2,549,945

831,455 2,401,455

Notes Intangible assets

Page 14

14. Intangible AssetsPatents & trademarks:

Cost1 January 2010

AdditionsDisposals31 December 2010

Accumulated depreciation and impairment

1 January 2010

Annual amortisation31 December 2010

Carrying amount 31 December 2010Carrying amount 31 December 2009

12. Investment in associate

Cost of investment in associateDividend received from associate

Notes Intangible assets

Page 15

Patents &Trademarks

£

8,500

8,500

-5,950 -1,700 -7,650

850 2,550

2,010 2,009 £ £ 107,500 107,500 -25,000 -25,000

Notes cash _ equity

Page 16

16. Bank overdraft and loan

Bank overdraftBank loan

22. Share capital

Authorised share capital1000 ordinary shares at £1 par value

Issued share capital100 ordiary shares at £1 par value fully paid, issued and outstanding

23. Cash and cash equivalents

Cash on handOverdrafts

Notes cash _ equity

Page 17

2010 2009£ £

-83,600 -115,507 -50,000 -150,000

-133,600 -265,507

2010 2009£ £

1,000 1,000

2010 2009£ £

28,700 22,075 -83,600 -115,507 -54,900 -93,432

Notes provisions

Page 18

18. Provision for warranty obligations 2010£

1 January 2010 -5040Additional accrual during the year -5260Cost of warranty repairs and replacement during year 610031 December 2010 -4200

19. Employee benefit obligation - long-service payments 2010£

Obligation at 1 January 2010 -9830Additional accrual during the year 5260Benefit payments made in yearObligation at 31 December 2010 -4570

The obligation is classified as: 2010 2009£ £

Current liability -4944 -4754Non-current liablility -5679 -5076Total -10623 -9830

Notes RP

Page 19

26. Related party transactions Sales Debtors2010 2009 2010 2009

£ £ £ £

Associate -10000 -8000 800 400

Notes leases

Page 20

20. Obligations under finance leases 2010 2009£ £

Within one year 25000 25000Within two to five years 25000 50000Later than five years

50000 75000

The obligation is classified as

Current liability -21461 -19884Non-current liability -23163 -44624

-44624 -64508

21. Commitments under operating leases 2010 2009£ £

Minimum lease payments under operating leasesrecognised as an expense during the year 26100 26100

Outstanding commitments under non-cancellableoperating leases:

Within one year 13050 26100Within two to five years 13050Later than five years

13050 39150

Notes tax

Page 21

15. Deferred TaxForeign

Patents & exchangeTrademarks loss

£ £

1 January 2009 1,700 Charge/(credit) to profit or loss for the year -680 1 January 2010 1,020 - Charge/(credit) to profit or loss for the year -680 -400 31 December 2010 340 -400

2010 2009£ £

Deferred tax liability 340 1,020 Deferred tax asset -4,649 -3,932

-4,309 -2,912

Income Tax expense 2010 2009£ £

Current tax 271,647 190,316 Deferred tax -1,397 -757

270,250 189,559

Notes tax

Page 22

Longservicebenefit Total

£ £

-3,855 -2,155 -77 -757

-3,932 -2,912 -317 -1,397

-4,249 -4,309

TB

Page 23

Company LimitedTrial balancefor the year ended 30 April 2010

2010 2009£ £

Profit and loss accountSales -6733545 -5680653Services rendered -120000 -120000Sales to associate -10000 -8000Opening inventory 47920 45050Purchases 5182731 4418105Warranty expense 5260 7340Closing inventory -57381 -47920Other incomeDividend received from associate -25000 -25000Gain on disposal of property, plant & equipment -63850

Distribution costs 175550 156800Administrative expenses 810230 660389Other expenses 74143 77252Research & development 31620 22778Foreign exchange loss 1000Finance costsInterest on loan and overdraft 21250 30135Interest on finance lases 5116 6577Income tax expenseCurrent tax charge 271647 190316Deferred tax charge -1397 -757Dividends paid 150000 100000

Balance SheetProperty, plant & equipment 2401455Land and buildings cost b/fwd 1960000Fixtures and equipment cost bfwd 1102045Fixtures and fittings - additions 485000Fixtures and equipment disposals -241000Land and buildings accumulated depreciation b/fwd -390000Land and buildings annual depreciation -30000F&E accumulated depreciation b/fwd -270590F&E annual depreaciation -240360F&E impairment -30000F&E accumulated depreciation on disposals 204850Intangible assets 2550

TB

Page 24

Patents and trademarksCost at 1 January 2010 8500Accumulated depreciation and impairment1 January 2010 -5950Annual amortisation -1700InvestmentsCost of investment in associate 107500 107500Deferred tax asset1 January 2010: Patents & trademarks -1020 -1700Charge/(credit) for the year: patenet & trademarks 680 680Charge/(credit) for the year: foreign exchange loss 4001 January 2010: Long-service benefit 3932 3855Charge/(credit) for the year: Long-service benefit 317 77Cash 28700 22075InventoriesRaw Materials 42601 36450Work in progress 1140 900Finished Goods 13640 10570Trade and other receivablesTrade Debtors 527988 527984Trade debtors - associate 800 400Prepayments 56760 45478Current LiabilitiesBank overdraft -83600 -115507Trade payables -431480 -420520Interest payable -2000 -1200Current tax liability -271647 -190316Provision for warranty obligations -50401 January 2010 -5040Additional accrual warranty costs -5260Warranty repairs and replacement cost 6100Current portion of employee benefit obligations -4944 -4754Current portion of obligations under finance leases -21461 -19884Non-current liabilitiesBank loan -50000 -150000Long-term employee benefit obligations -5679 -5076Obligations under finance leases -23163 -44624Retained earnings -2171353 -2003765EquityShare capital -30000 -30000

0 0

TB

Page 25

2008£

5178530

810230

316201000

-936142-298750

TB

Page 26

1075002155

1847845050

521234

20435412690

0173211

2000

457118423

1500005066

64508

30000

Workings

Page 27

W1 Raw materials and conumables used 2010 2009£ £

Opening inventory 47,920 45,050 Purchases 5,182,731 4,418,105 Warranty expense 5,260 7,340 Closing inventory -57,381 -47,920 Administrative expenses 810,230 660,389 Research & development 31,620 22,778 Foreign exchange loss 1,000 - Changes in inventories of finished goods and work in progress 3,310 -1,360 Depreciation and amortisation expense -272,060 -221,247 Impairment of property, plant and equipment -30,000 - Employee salaries and benefits -936,142 -879,900

4,786,488 4,003,235

W2 Other expenses

Distribution costs 175,550 156,800 Other expenses 74,143 77,252

249,693 234,052