REGISTERED NUMBER: 00313089 (England and Wales)

Unaudited Financial Statements

for the Year Ended 31 March 2018

for

ALBANY ENGINEERING COMPANY LIMITED(THE)

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTOR:

C Allen

REGISTERED OFFICE:

Church Road

Lydney

Gloucestershire

GL15 5EQ

REGISTERED NUMBER:

00313089 (England and Wales)

ACCOUNTANTS:

Haines Watts

Chartered Accountants

Bath House

6-8 Bath Street

Bristol

BS1 6HL

FIXED ASSETS

Intangible assets

4

-

-

Tangible assets

5

105,094

162,717

105,094

162,717

CURRENT ASSETS

Stocks

739,603

707,017

Debtors

6

607,975

640,291

Cash at bank and in hand

508,325

777,144

1,855,903

2,124,452

CREDITORS

Amounts falling due within one year

7

976,093

656,485

NET CURRENT ASSETS

879,810

1,467,967

TOTAL ASSETS LESS CURRENT LIABILITIES

984,904

1,630,684

PROVISIONS FOR LIABILITIES

2,056

9,418

NET ASSETS

982,848

1,621,266

CAPITAL AND RESERVES

Called up share capital

9

19,500

19,500

Retained earnings

963,348

1,601,766

SHAREHOLDERS' FUNDS

982,848

1,621,266

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2018 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the director on 24 January 2019 and were signed by:

C Allen - Director

1.	COMPANY INFORMATION

Albany Engineering Company Limited(The) is a private company, limited by shares , registered in England

and Wales. The company's registered number and registered office address can be found on the Company

Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small

Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and

Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary

amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared on the historical cost convention. The principal accounting

policies adopted are set out below.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company

has adequate resources to continue in operational existence for the foreseeable future. Thus the directors

continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable and represents amounts

receivable for goods provided in the normal course of business, net of discounts, VAT and other sales related

taxes.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2017.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost

less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

20% on cost

Fixtures, fittings and equipment

-

25% on cost and 10% on cost

Motor vehicles

-

25% on cost

Stocks

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 items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs

in bringing stocks to their present location and condition.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid

investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown

within borrowings in current liabilities.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12

'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. Financial instruments are

recognised when the company becomes party to the contractual provisions of the instrument. Financial assets

and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally

enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise

the asset and settle the liability simultaneously.

Basic financial assets, which include trade and other debtors, amounts due from group undertakings and cash

and bank balances, are initially measured at transaction price including transaction costs and are subsequently

carried at amortised cost. Financial assets are derecognised only when the contractual rights to the cash flows

from the asset expire or are settled, or when the company transfers the financial asset and substantially all the

risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are

retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an

unrelated third party.

Basic financial liabilities, including trade and other creditors and amounts due to group undertakings are

initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the

debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Financial

liabilities are derecognised when, and only when, the company's contractual obligations are discharged,

cancelled, or they expire.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account,

except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the

balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different

from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and

laws that have been enacted or substantively enacted by the year end and that are expected to apply to the

reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange

ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating

result.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 69 (2017 - 70 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 April 2017

and 31 March 2018

21,572

AMORTISATION

At 1 April 2017

and 31 March 2018

21,572

NET BOOK VALUE

At 31 March 2018

-

At 31 March 2017

-

5.	TANGIBLE FIXED ASSETS

Fixtures,

fittings

Plant and

and

Motor

machinery

equipment

vehicles

Totals

£

£

£

£

COST

At 1 April 2017

2,732,730

243,141

57,909

3,033,780

Additions

16,713

6,400

12,500

35,613

At 31 March 2018

2,749,443

249,541

70,409

3,069,393

DEPRECIATION

At 1 April 2017

2,591,135

222,019

57,909

2,871,063

Charge for year

79,713

11,440

2,083

93,236

At 31 March 2018

2,670,848

233,459

59,992

2,964,299

NET BOOK VALUE

At 31 March 2018

78,595

16,082

10,417

105,094

At 31 March 2017

141,595

21,122

-

162,717

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

493,822

597,318

Other debtors

72,865

-

Prepayments

41,288

42,973

607,975

640,291

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Bank loans and overdrafts

10,695

21,396

Trade creditors

365,389

283,216

Tax

-

64,430

Social security and other taxes

58,729

49,755

VAT

11,819

19,082

Other creditors

305,814

139,003

Accrued expenses

223,647

79,603

976,093

656,485

8.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2018

2017

£

£

Within one year

61,807

67,807

Between one and five years

167,946

188,753

In more than five years

697,000

738,000

926,753

994,560

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2018

2017

value:

£

£

19,500

Ordinary

£1

19,500

19,500

10.	OTHER FINANCIAL COMMITMENTS

The company has provided a guarantee in respect of deferred consideration payments due to the former owners

of the company's parent, Albany Engineering Group Limited, which arose on the acquisition of that company

in 2015 by Albany Pumps Trustees Limited.

These amounts, which are payable annually until 2024, total £1,225,000 and are secured by a fixed and

floating charge over the company's assets.

11.	ULTIMATE CONTROLLING PARTY

The controlling party is Albany Engineering Group Limited.

The ultimate controlling party is Albany Pumps Trustees Limited.