Form 8-K/A

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K/A

Amendment No. 1

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

March 31, 2016

(Date of Report)

 

 

ULTRALIFE CORPORATION

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   000-20852   16-1387013
(State of incorporation)  

(Commission

File Number)

 

(IRS Employer

Identification No.)

2000 Technology Parkway, Newark, New York   14513
(Address of principal executive offices)   (Zip Code)

(315) 332-7100

(Registrant’s telephone number, including area code)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Explanatory Note

This Amendment No. 1 on Form 8-K/A (this “Form 8-K/A”) is an amendment to the Current Report of Ultralife Corporation, dated January 20, 2016 (the “Original Form 8-K”). This Form 8-K/A is being filed to update Item 2.01 of the Original Form 8-K for the final purchase price adjustment pertaining to the acquisition and to provide the financial statements of the business acquired and pro forma financial information as required under Item 9.01 (a) and Item 9.01 (b), respectively. This Form 8-K/A amends Item 2.01 and restates in its entirety Item 9.01(a) and Item 9.01(b) of the Original Form 8-K.

 

Item 2.01 Completion of Acquisition or Disposition of Assets

On January 13, 2016, Ultralife UK Limited (the “Merger Subsidiary”), a U.K. corporation and a wholly-owned subsidiary of Ultralife Corporation (the “Company”), completed the acquisition of all of the outstanding ordinary shares of Accutronics Limited (“Accutronics”), a U.K. corporation based in Newcastle-under-Lyme, U.K., from Intrinsic Equity Limited, Catapult Growth Fund Limited Partnership, MJF Pension Trustees Limited, Robert Andrew Phillips and Michael Allen (collectively, the “Sellers”). There are no material relationships between the Company or Merger Subsidiary and any of the Sellers, other than pertaining to this acquisition. Accutronics is a leading independent designer and manufacturer of smart batteries and charger systems for high-performance, feature-laden portable and handheld electronic devices.

The acquisition was completed pursuant to the terms of a Share Purchase Agreement dated January 13, 2016, by and among the Merger Subsidiary and the Sellers. The Merger Subsidiary paid at the time of closing an aggregate purchase price of £7.575 million (approximately $11.0 million) in cash, and in exchange the Merger Subsidiary received all of the outstanding shares of Accutronics ordinary stock. Monies to fund the purchase price were advanced to the Merger Subsidiary from the Company’s general corporate funds.

The purchase price was subject to adjustment based on the difference between actual and estimated amounts of working capital of Accutronics as well as the amount of net cash/indebtedness of Accutronics. The adjustment resulted in a final payment to the Sellers in the amount of £0.133 million on February 24, 2016 bringing the total aggregate purchase price to £7.708 million (approximately $11.2 million).

The Stock Purchase Agreement was filed with our Form 10-K for the fiscal year ended December 31, 2015 to provide investors and security holders with information regarding the terms, provisions, conditions, and covenants and is not intended to provide any other factual information respecting the Company, or Accutronics. In particular, the Stock Purchase Agreement contains representations and warranties made to and solely for the benefit of the parties thereto, allocating among themselves various risks of the transactions. The assertions embodied in those representations and warranties are qualified or modified by information in confidential disclosure schedules that the parties have exchanged in connection with signing the Stock Purchase Agreement. Moreover, information concerning the subject matter of the representations and warranties may be subject to limitations agreed upon by the parties and standards of materiality applicable to the parties that differ from those applicable to investors, and may change after the date of the Stock Purchase Agreement. This subsequent information may or may not be fully reflected in our public disclosures. Accordingly, investors and security holders should not rely on the representations and warranties in the Stock Purchase Agreement as characterizations of the actual state of any fact or facts.

 

Item 9.01 Financial Statements and Exhibits

 

(a) Financial Statements of Business Acquired

The audited historical financial statements of Accutronics for the most recent fiscal year ended August 31, 2015, are filed herewith in Exhibit 99.1. These financial statements were prepared and audited in accordance with United Kingdom Generally Accepted Accounting Standards. The Company utilized a third party independent accounting firm to analyze any material differences between UK and US Generally Accepted Accounting Principles (“US GAAP”) for Accutronics. Based on this review and the due diligence performed by the Company, we are not aware of any material differences requiring adjustment in the financial statements presented.

 

(b) Pro Forma Financial Information

The pro forma financial information required by this item is presented below. The financial information provided for Accutronics in the Pro Forma Financial Information has been recast to be consistent with the Company’s fiscal year ended December 31, 2015.


UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

The following unaudited pro forma condensed combined financial statements are based on our historical consolidated financial statements and Accutronics’ recasted historical financial statements as adjusted to give effect to the Company’s acquisition of Accutronics. The unaudited pro forma condensed combined statement of operations for the twelve months ended December 31, 2015 gives effect to the transaction had it occurred on January 1, 2015. The unaudited pro forma condensed combined balance sheet as of December 31, 2015 gives effect to the transaction had it occurred on January 1, 2015.

The assumptions and estimates underlying the unaudited adjustments to the pro forma condensed combined financial statements are described in the accompanying notes, which should be read together with the pro forma combined financial statements.

The unaudited pro forma condensed combined financial statements should be read together with the Company’s historical financial statements, which are included in the Company’s latest annual report on Form 10-K, and Accutronics historical information included herein. The financial information provided for Accutronics in the unaudited pro forma condensed combined financial statements has been recast to be consistent with the Company’s fiscal year ended December 31, 2015. Accutronics’ results for this twelve-month period are derived by adding their results for the four months subsequent to its financial statements for its fiscal year ended August 31, 2015 and subtracting the comparable months from the preceding year.

Unaudited Pro Forma Condensed Combined Balance Sheet

Year Ended December 31, 2015

(In Thousands, Except Per Share Information)

 

     Ultralife Corporation
and Subsidiaries
Historical
     Accutronics Ltd
Historical
     Pro Forma
Adjustments
    Notes    Pro Forma
Combined
 

Current Assets:

             

Cash, Cash Equivalents and Restricted Cash

   $ 14,533       $ 1,304       -$ 11,161      a    $ 4,676   

Trade Accounts Receivable

     11,430         1,344              12,774   

Inventories

     23,814         2,093              25,907   

Prepaid Expense and Other Current Assets

     2,077         289              2,366   

Deferred Income Taxes

     92                 92   
  

 

 

    

 

 

    

 

 

      

 

 

 

Current Assets

     51,946         5,030         -11,161           45,815   

Property, Equipment and Improvements

     9,038         368              9,406   

Goodwill

     16,283            4,383      b      20,666   

Intangible Assets

     3,946            4,776      c      8,722   

Other Non-Current Assets

     309                 309   
  

 

 

    

 

 

    

 

 

      

 

 

 

Total Assets

   $ 81,522       $ 5,398       -$ 2,002         $ 84,918   
  

 

 

    

 

 

    

 

 

      

 

 

 

Current Liabilities:

             

Accounts Payable

   $ 6,494       $ 1,009            $ 7,503   

Accrued Compensation and Related Benefits

     2,377                 2,377   

Accrued Expenses and Current Liabilities

     1,749         1,134              2,883   

Income Taxes Payable

     227         111              338   
  

 

 

    

 

 

    

 

 

      

 

 

 
     10,847         2,254              13,101   

Deferred Income Taxes

     4,631         74         860      d      5,565   

Other Non-Current Liabilities

     28         209              237   
  

 

 

    

 

 

    

 

 

      

 

 

 

Total Liabilities

     15,506         2,536         860           18,902   

Total Shareholders’ Equity

     66,016         2,862         -2,862      e      66,016   
  

 

 

    

 

 

    

 

 

      

 

 

 

Total Liabilities and Shareholder’s Equity

   $ 81,522       $ 5,398       -$ 2,002         $ 84,918   
  

 

 

    

 

 

    

 

 

      

 

 

 


Unaudited Pro Forma Condensed Combined Statement of Operations

Year Ended December 31, 2015

(In Thousands, Except Per Share Information)

 

     Ultralife Corporation
and Subsidiaries
Historical
     Accutronics Ltd
Historical
     Pro Forma
Adjustments
     Notes    Pro Forma
Combined
 

Revenues

   $ 76,427       $ 13,108             $ 89,535   

Cost of Products Sold

     53,111         9,058               62,169   
  

 

 

    

 

 

          

 

 

 

Gross Profit

     23,316         4,050               27,366   

Operating Expenses:

              

Research & Development

     5,473         363               5,836   

Selling, General & Administrative

     14,128         2,433               16,561   

Intangible Asset Amortization

     235         0         370       f      605   

Intangible Asset Impairment

     150         0               150   
  

 

 

    

 

 

    

 

 

       

 

 

 
     19,986         2,795         370            23,151   

Operating Income

     3,330         1,255         -370            4,215   

Other (Expense) Income

              

Interest Income (Expense), Net

     -245         -63               -308   

Miscellaneous

     65         16               81   
  

 

 

    

 

 

    

 

 

       

 

 

 
     -180         -48               -228   

Income Before Income Taxes

     3,150         1,207         -370            3,987   

Income Tax Provision

     310         120         -74       g      356   
  

 

 

    

 

 

    

 

 

       

 

 

 

Net Income

     2,840         1,087         -296            3,631   

Net Loss Attributable to Non-Controlling Interest

     29         0               29   
  

 

 

    

 

 

    

 

 

       

 

 

 

Net Income Attrributable to Ultralife

     2,869         1,087         -296            3,660   

Net Income Per Share - Basic

   $ 0.18       $ 0.07       -$ 0.02          $ 0.23   

Net Income Per Share - Diluted

   $ 0.17       $ 0.07       -$ 0.02          $ 0.22   

Weighted Average Shares Outstanding - Basic

     16,182                  16,182   

Weighted Average Shares Outstanding - Diluted

     16,458                  16,458   

See accompanying notes to the Unaudited Pro Forma Condensed Combined Financial Information

Notes to the Unaudited Pro Forma Condensed Combined Financial Information

(In Thousands, Except Per Share Information)

Note 1 – Basis of Presentation

The historical consolidated financial statements have been adjusted in the pro forma condensed combined financial statements to give effect to the pro forma events that are (1) directly attributable to the business combination, (2) factually supportable and (3) with respect to the pro forma condensed combined statement of operations, expected to have a continuing impact on the combined results following the business combination.

The business combination was accounted for under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations. As an acquirer for accounting purposes, the Company has estimated the fair value of Accutronics’ assets acquired and liabilities assumed and ensured that the accounting policies of Accutronics were consistent with that of the Company.


The pro forma condensed combined financial statements do not necessarily reflect what the combined company’s financial condition or results of operations would have been had the acquisition occurred on the dates indicated. They also may not be useful in predicting the future financial condition and results of operations of the combined company. The actual financial position and results of operations may differ significantly from the pro forma amounts reflected herein due to a variety of factors.

The condensed combined pro forma financial information does not reflect the realization of any expected cost savings or other synergies from the acquisition of Accutronics as a result of restructuring activities, other cost savings initiatives or sales synergies following the completion of the business combination.

Note 2 – Foreign Currency and US GAAP Conversion

The recast historical financial information of Accutronics was prepared in accordance with United Kingdom Generally Accepted Accounting Standards and presented in British Pounds Sterling. The recast historical information was translated from British Pounds Sterling to US Dollars using the following historical exchange rates:

 

     $/£  

Statement of Operations - 12 Month Average Exchange Rate for Year Ended December 31, 2015

     1.57   

Balance Sheet - Exchange Rate for Acquisition Date (January 13, 2016)*

     1.45   

 

* The Balance Sheet translation rate was not materially different from the December 31, 2015 rate.

The Company utilized a third party independent accounting firm to analyze any material differences between UK and US GAAP for Accutronics. Based on this review and the due diligence performed by the Company, we are not aware of any material differences requiring adjustment in the pro forma condensed combined financial statements.

Note 3 – Funding Transaction

The Company completed the acquisition of Accutronics for approximately £7.708 million (approximately $11.2 million) in cash. The Company utilized monies from its general corporate funds for the acquisition.


Note 4 – Preliminary Purchase Price Allocation

The Company has performed a preliminary valuation analysis of the fair market value of Accutronics’ assets and liabilities to identify, value and assign estimated useful lives to intangible assets and to determine goodwill. The resulting valuation analysis is considered preliminary as it has not been audited by the Company’s independent registered public accountant at the time of this filing. The following table summarizes the allocation of the preliminary purchase price as of the acquisition date (in thousands):

 

Cash

   $ 1,304   

Accounts Receivable

     1,344   

Inventory

     2,093   

Prepaids and Other Current Assets

     289   

Property, Plant & Equipment

     368   

Identifiable Intangible Assets

     4,776   

Goodwill

     4,383   

Accounts Payable

     -1,009   

Accrued Expenses

     -1,134   

Income Taxes Payable

     -111   

Non-Current Liabilities

     -209   

Deferred Income Taxes

     -74   

Deferred Taxes on Intangible Assets

     -860   
  

 

 

 

Total Consideration

   $ 11,161   
  

 

 

 

The preliminary purchase price allocation has been used to prepare pro forma adjustments in the pro forma balance sheet and income statement. The final purchase price allocation will be determined when the Company’s allocation is audited. The final allocation could differ materially from the preliminary allocation used in the pro forma adjustments. The final audited allocation may include (1) changes in allocations to intangible assets such as customer contracts and relationships, trade name and intellectual property as well as goodwill, (2) changes to deferred taxes and (3) other changes to assets and liabilities.

Note 5 – Pro Forma Adjustments

The pro forma adjustments are based on our preliminary estimates and assumptions that are subject to change. The following adjustments have been reflected in the unaudited pro forma condensed combined financial information:

 

  (a) Represents the total aggregate purchase price for the acquisition of £7.708 million (approximately $11.2 million).

 

  (b) Reflects the adjustment to record goodwill associated with the acquisition of $4.383 million as shown in Note 4. The amount of the goodwill adjustment is based on the preliminary valuation analysis based on financial data as of the Company’s fiscal year ended December 31, 2015. The resulting valuation analysis is considered preliminary as it has not been audited by the Company’s independent registered public accountant at the time of this filing.

 

  (c)

Reflects the adjustment to allocate the purchase price to identifiable intangible assets as shown in Note 4. The Company performed an appraisal to identify and value intangible assets, which they determined to be customer contracts and relationships, trade name and intellectual property. The fair value of the identifiable


  intangible assets was determined using the “income approach” requiring a forecast of all of the expected future cash flows. The resulting valuation analysis is considered preliminary as it has not been audited by the Company’s independent registered public accountant at the time of this filing. The following table summarizes the estimated fair value, the estimated useful life and the estimated annual amortization for each of the identifiable intangible assets resulting from the valuation analysis:

 

     Estimated Fair
Value
     Estimated
Useful Lives
in Years
   Annual
Estimated
Amortization
Expense
 
     ($ 000’s)           ($ 000’s)  

Customer Contracts and Relationships

   $ 3,223       15    $ 215   

Trade Name

     421       10      42   

Intellectual Property

     1,132       10      113   
  

 

 

       

 

 

 

Pro Forma Adjustments

   $ 4,776          $ 370   
  

 

 

       

 

 

 

The unaudited estimates of fair value and estimated useful lives could differ from final amounts upon completion of the Company’s annual audit, and the difference could have a material effect on the accompanying unaudited pro forma condensed combined financial statements. A doubling or halving of the attrition estimates used to estimate the fair value of the customer contracts and relationships could cause a corresponding increase or decrease in the balance between intangible assets and goodwill by approximately 11% to 12%. An increase or decrease in the estimated useful lives of the identifiable intangible assets by five years could cause a corresponding change in the balance of intangible assets by approximately +5% or -16%, respectively, with the offset to goodwill. There would also be a corresponding impact to the annual intangible amortization expense.

 

  (d) Reflects the adjustment to the deferred tax liabilities resulting from the acquisition. The estimated increase in deferred taxes liabilities stems from the fair value adjustments for non-deductible intangible assets based on the long-term enacted corporation tax rate for the United Kingdom of 18%. The estimate of deferred income tax balances is preliminary and subject to change once the valuation analysis is audited by the Company’s independent registered public accountant. The following table summarizes the pro forma estimated deferred tax adjustment for each identifiable intangible asset:

 

     Estimated Fair
Value
     Estimated
Tax Rate
    Deferred
Tax
 
     ($ 000’s)            ($ 000’s)  

Customer Contracts and Relationships

   $ 3,223         18   $ 580   

Trade Name

     421         18     76   

Intellectual Property

     1,132         18     204   
  

 

 

      

 

 

 

Pro Forma Adjustments

   $ 4,776         $ 860   
  

 

 

      

 

 

 


  (e) Represents the adjustment to eliminate the shareholders’equity of Accutronics in accordance with purchase accounting for the acquisition.

 

  (f) Reflects the adjustment for the annual intangible asset amortization as described in Note 5 (c).

 

  (g) Reflects the income tax effect of pro forma adjustments based on the statutory UK tax rate for 2015.

Note 6 – Non-Recurring Transaction Costs

The Company incurred non-recurring transaction costs of approximately $.25 million which are directly attributable to the Accutronics’ acquisition. These costs, including one-time accounting, legal and due diligence services as well as stamp duties related to the acquisition of the UK-based company, were incurred in the first quarter of 2016 and, accordingly, are not reflected in the pro forma condensed combined financial statements presented herein.

 

(c) Exhibits

99.1 Historical Audited Financial Statements for Accutronics for the Year Ended August 31, 2015


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: March 31, 2016   ULTRALIFE CORPORATION
  By:  

/s/ Philip A. Fain

    Philip A. Fain
    Chief Financial Officer and Treasurer
EX-99.1

Exhibit 99.1

Registered number: 06999250

 

 

Accutronics Limited
Directors’ report and financial statements
for the year ended 31 August 2015

 

 

 

 

 

LOGO


Accutronics Limited

Company Information

 

 

Directors   

R A Phillips

J B Grenfell

M Allen

Registered number    06999250
Registered office   

Unit 20 Loomer Road

Chesterton

Newcastle-under-Lyme

Staffordshire

ST5 7LB

Independent auditors   

Dains LLP

15 Colmore Row

Birmingham

B3 2BH


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


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


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).

 

 

Page 2


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


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


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


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


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


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


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.

 

 

Page 9


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:

 

    

2015

£

    

2014

£

 

United Kingdom

     449,560         371,795   

Rest of European Union

     7,526,596         6,637,531   

Rest of world

     586,055         524,590   
  

 

 

    

 

 

 
     8,562,211         7,533,916   
  

 

 

    

 

 

 

 

 

Page 10


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):

 

    

2015

£

    

2014

£

 

Depreciation of tangible fixed assets:

     

- owned by the company

     94,314         86,672   

Auditors’ remuneration

     9,500         9,200   

Auditors’ remuneration - non-audit

     4,840         3,250   

Operating lease rentals:

     

- plant and machinery

     16,108         14,566   

- other operating leases

     55,000         55,000   

Difference on foreign exchange

     82,102         153,341   

Development work

     115,702         113,108   
  

 

 

    

 

 

 

 

4. Staff costs

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

 

    

2015

£

    

2014

£

 

Wages and salaries

     1,759,668         1,664,750   

Social security costs

     158,127         157,282   

Other pension costs

     52,544         44,960   
  

 

 

    

 

 

 
     1,970,339         1,866,992   
  

 

 

    

 

 

 

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

 

    

2015

No.

    

2014

No.

 

Production

     46         39   

Directors

     2         2   

Engineers

     10         12   

Sales

     5         5   

Administration and support

     13         11   
  

 

 

    

 

 

 
     76         69   
  

 

 

    

 

 

 

 

 

Page 11


Accutronics Limited

Notes to the financial statements

for the year ended 31 August 2015

 

 

 

5. Directors’ remuneration

 

    

2015

£

    

2014

£

 

Remuneration

     171,946         163,959   
  

 

 

    

 

 

 

Company pension contributions to defined contribution pension schemes

     6,411         6,361   
  

 

 

    

 

 

 

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

 

6. Interest payable

 

    

2015

£

    

2014

£

 

On bank loans and overdrafts

     28,818         13,750   

Other interest payable

     9,055         7,693   
  

 

 

    

 

 

 
     37,873         21,443   
  

 

 

    

 

 

 

 

7. Taxation

 

    

2015

£

   

2014

£

 

Analysis of tax charge/(credit) in the year

    

Current tax (see note below)

    

UK corporation tax charge on profit for the year

     47,495        —     

Adjustments in respect of prior periods

     (1     (4,356
  

 

 

   

 

 

 

Total current tax

     47,494        (4,356
  

 

 

   

 

 

 

Deferred tax

    

Origination and reversal of timing differences

     21,469        628   

Effect of changes in tax rates

     —          (1,444
  

 

 

   

 

 

 

Total deferred tax (see note 13)

     21,469        (816
  

 

 

   

 

 

 

Tax on profit on ordinary activities

     68,963        (5,172
  

 

 

   

 

 

 

 

 

 

Page 12


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
  

 

 

   

 

 

 

 

 

Page 13


Accutronics Limited

Notes to the financial statements

for the year ended 31 August 2015

 

 

 

8. Tangible fixed assets

 

    

Leasehold
improvements

£

    

Plant and
machinery

£

    

Furniture,
fittings and
equipment

£

    

Total

£

 

Cost

           

At 1 September 2014

     —           198,039         243,687         441,726   

Additions

     42,718         62,019         36,567         141,304   
  

 

 

    

 

 

    

 

 

    

 

 

 

At 31 August 2015

     42,718         260,058         280,254         583,030   
  

 

 

    

 

 

    

 

 

    

 

 

 

Depreciation

           

At 1 September 2014

     —           41,369         167,864         209,233   

Charge for the year

     6,040         41,579         46,695         94,314   
  

 

 

    

 

 

    

 

 

    

 

 

 

At 31 August 2015

     6,040         82,948         214,559         303,547   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net book value

           

At 31 August 2015

     36,678         177,110         65,695         279,483   
  

 

 

    

 

 

    

 

 

    

 

 

 

At 31 August 2014

     —           156,670         75,823         232,493   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

9. Stocks

 

    

2015

£

    

2014

£

 

Raw materials

     673,305         742,454   

Work in progress

     418,763         203,137   

Finished goods and goods for resale

     382,556         346,576   
  

 

 

    

 

 

 
     1,474,624         1,292,167   
  

 

 

    

 

 

 

 

10. Debtors

 

    

2015

£

    

2014

£

 

Trade debtors

     963,749         964,116   

Other debtors

     589,815         232,252   

Prepayments and accrued income

     119,088         98,168   

Tax recoverable

     —           4,479   
  

 

 

    

 

 

 
     1,672,652         1,299,015   
  

 

 

    

 

 

 

 

 

 

Page 14


Accutronics Limited

Notes to the financial statements

for the year ended 31 August 2015

 

 

 

11. Creditors:

Amounts falling due within one year

 

     2015      2014  
     £      £  

Bank loans and overdrafts

     825,486         139,847   

Trade creditors

     649,283         602,845   

Corporation tax

     47,495         —     

Social security and other taxes

     36,959         39,865   

Other creditors

     187,095         192,269   

Accruals and deferred income

     329,445         267,990   
  

 

 

    

 

 

 
     2,075,763         1,242,816   
  

 

 

    

 

 

 

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

 

     2015      2014  
     £      £  

Other loan

     3,269         11,113   

Other creditors

     56,574         162,496   
  

 

 

    

 

 

 
     59,843         173,609   
  

 

 

    

 

 

 

 

13. Deferred taxation

 

     2015      2014  
     £      £  

At beginning of year

     29,522         30,338   

Released during year

     21,469         (816
  

 

 

    

 

 

 

At end of year

     50,991         29,522   
  

 

 

    

 

 

 

The provision for deferred taxation is made up as follows:

 

     2015     2014  
     £     £  

Accelerated capital allowances

     51,944        43,673   

Tax losses carried forward

     —          (13,494

Other timing differences

     (953     (657
  

 

 

   

 

 

 
     50,991        29,522   
  

 

 

   

 

 

 

 

 

Page 15


Accutronics Limited

Notes to the financial statements

for the year ended 31 August 2015

 

 

 

14. Share capital

 

     2015      2014  
     £      £  

Allotted, called up and fully paid

     

179,453 (2014 - 175,000) Ordinary shares of £1 each

     179,453         175,000   

75,000- ‘A’ Ordinary shares of £1 each

     75,000         75,000   
  

 

 

    

 

 

 
     254,453         250,000   
  

 

 

    

 

 

 

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

 

     Profit and
loss account
 
     £  

At 1 September 2014

     1,367,055   

Profit for the financial year

     630,643   

Dividends on equity capital

     (187,356)   
  

 

 

 

At 31 August 2015

     1,810,342   
  

 

 

 

 

16. Reconciliation of movement in shareholders’ funds

 

     2015     2014  
     £     £  

Opening shareholders’ funds

     1,617,055        1,327,980   

Profit for the financial year

     630,643        311,974   

Dividends (Note 17)

     (187,356     (22,899

Shares issued during the year

     4,453        —     
  

 

 

   

 

 

 

Closing shareholders’ funds

     2,064,795        1,617,055   
  

 

 

   

 

 

 

 

17. Dividends

 

     2015      2014  
     £      £  

Dividends paid on equity capital

     187,356         22,899   
  

 

 

    

 

 

 

 

 

 

Page 16


Accutronics Limited

Notes to the financial statements

for the year ended 31 August 2015

 

 

 

18. Net cash flow from operating activities

 

     2015     2014  
     £     £  

Operating profit

     737,479        328,245   

Depreciation of tangible fixed assets

     94,314        86,672   

Non cash consideration for issue of ordinary shares

     4,453        —     

Profit on disposal of tangible fixed assets

     —          (150

(Increase)/decrease in stocks

     (182,457     21,044   

(Increase)/decrease in debtors

     (378,116     13,822   

Decrease in creditors

     (93,465     (377,598
  

 

 

   

 

 

 

Net cash inflow from operating activities

     182,208        72,035   
  

 

 

   

 

 

 

 

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

 

     2015     2014  
     £     £  

Returns on investments and servicing of finance

    

Interest paid

     (37,873     (21,443
  

 

 

   

 

 

 

 

     2015     2014  
     £     £  

Capital expenditure and financial investment

    

Purchase of tangible fixed assets

     (141,304     (162,884

Sale of tangible fixed assets

     —          150   
  

 

 

   

 

 

 

Net cash outflow from capital expenditure

     (141,304     (162,734
  

 

 

   

 

 

 

 

     2015     2014  
     £     £  

Financing

    

Other new loans

     —          11,113   

Repayment of other loans

     (7,844     —     
  

 

 

   

 

 

 

Net cash (outflow)/inflow from financing

     (7,844     11,113   
  

 

 

   

 

 

 

 

 

Page 17


Accutronics Limited

Notes to the financial statements

for the year ended 31 August 2015

 

 

 

20. Analysis of changes in net funds

 

     1 September
2014
    Cash flow     Other
non-cash
changes
    31 August
2015
 
     £     £     £     £  

Cash at bank and in hand

     239,327        585,306        —          824,633   

Bank overdraft

     (139,847     (685,639     —          (825,486
  

 

 

   

 

 

   

 

 

   

 

 

 
     99,480        (100,333     —          (853

Debt:

        

Debts due within one year

     —          7,844        (7,844     —     

Debts falling due after more than one year

     (11,113     —          7,844        (3,269
  

 

 

   

 

 

   

 

 

   

 

 

 

Net funds

     88,367        (92,489     —          (4,122
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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:

 

     Land and buildings             Other  
     2015      2014      2015      2014  
     £      £      £      £  

Expiry date:

           

Within 1 year

     55,000         45,000         7,491         —     

Between 2 and 5 years

     —           10,000         6,488         19,329   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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


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


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


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   
  

 

 

    

 

 

 

 

 

Page 21