REGISTERED NUMBER: 01851002 (England and Wales)

ABLE INSTRUMENTS AND CONTROLS LIMITED

REPORT OF THE DIRECTOR AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016

Page

Company Information

1

Report of the Director

2

Income Statement

3

Balance Sheet

4

Notes to the Financial Statements

6

DIRECTOR:

M J Shortall

SECRETARY:

Mrs S V Shortall

REGISTERED OFFICE:

Cutbush Park

Danehill

Lower Earley

Reading

Berkshire

RG6 4UT

REGISTERED NUMBER:

01851002 (England and Wales)

ACCOUNTANTS:

AGHS Accounting & Taxation Services Limited

14 Progress Business Centre

Whittle Parkway

Slough

Berkshire

SL1 6DQ

The director presents his report with the financial statements of the company for the year ended 31 December 2016.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of assembly, testing, calibration and sale of

industrial instruments.

REVIEW OF BUSINESS

The results of the year and financial position of the company at year-end are shown in the financial statements and are

considered robust in an economy still emerging from recession and an environment of falling oil prices.

2016 overall performance and market conditions were very similar to 2015.

Further major contract awards will see significant impact on 2017 revenues coupled with significant growth in the

E-Commerce business and continued concentration on improving margins saw our average gross profit increase in our

core business area.

The company continues its investment in Intellectual Property with pending patents on multiphase, exploration and

drilling mass metering innovations. In addition the development of our new Training and Calibration facility nears

completion with additional supply agreements complementing our services portfolio.

Principal Risks and Uncertainties

The company's operations expose it to a variety of risks and uncertainties including competition, demand for the

company's goods and services through industry-wide trends and the general state of the economy. The company is also

subject to financial risks including interest rate risks and credit risk. Interest rate risks exist in respect of the company's

exposure to bank loans and other borrowings. These are mitigated by careful management of the levels of borrowing.

Credit risk exists in respect of the recoverability of trade debts, but this is mitigated by an active credit control process

and as a result the company's bad debts over recent years have been minimal.

DIRECTOR

M J Shortall held office during the whole of the period from 1 January 2016 to the date of this report.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small

companies.

ON BEHALF OF THE BOARD:

M J Shortall - Director

25 September 2017

TURNOVER

7,608,147

7,583,109

Cost of sales

3,807,936

3,612,347

GROSS PROFIT

3,800,211

3,970,762

Administrative expenses

2,989,273

3,312,759

810,938

658,003

Other operating income

-

10,462

OPERATING PROFIT

4

810,938

668,465

Interest receivable and similar income

59,661

44,571

870,599

713,036

Amounts written off investments

160,849

78,482

709,750

634,554

Interest payable and similar expenses

33,674

49,013

PROFIT BEFORE TAXATION

676,076

585,541

Tax on profit

65,940

32,302

PROFIT FOR THE FINANCIAL YEAR

610,136

553,239

FIXED ASSETS

Tangible assets

5

4,155,932

4,169,768

Investments

6

410,669

571,518

4,566,601

4,741,286

CURRENT ASSETS

Stocks

1,071,532

1,102,225

Debtors

7

4,335,999

3,799,858

Investments

8

10,000

10,000

Cash at bank

826,289

1,001,315

6,243,820

5,913,398

CREDITORS

Amounts falling due within one year

9

2,436,391

2,549,093

NET CURRENT ASSETS

3,807,429

3,364,305

TOTAL ASSETS LESS CURRENT LIABILITIES

8,374,030

8,105,591

CREDITORS

Amounts falling due after more than one year

10

(880,071

)

(1,161,918

)

PROVISIONS FOR LIABILITIES

(225,789

)

(239,975

)

NET ASSETS

7,268,170

6,703,698

CAPITAL AND RESERVES

Called up share capital

12,750

12,750

Revaluation reserve

11

1,139,061

1,126,725

Retained earnings

6,116,359

5,564,223

SHAREHOLDERS' FUNDS

7,268,170

6,703,698

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2016.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2016 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 in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the director on 25 September 2017 and were signed by:

M J Shortall - Director

1.	STATUTORY INFORMATION

Able Instruments and Controls Limited is a private company, limited by shares, registered in England & Wales.

The company's registered number and registered office address can be found on page 1.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with applicable United Kingdom accounting

standards, including Section 1A of Financial Reporting Standard 102 - 'The Financial Reporting Standard

applicable in the United Kingdom and Republic of Ireland' ('FRS 102'), and with the Companies Act 2006. The

financial statements have been prepared on the historical cost basis except for the modification to a fair value

basis for certain financial instruments as specified in the accounting policies below.

The financial statements are presented in pounds sterling, which is the functional currency of the company.

Preparation of consolidated financial statements

The financial statements contain information about Able Instruments And Controls Limited as an individual

company and do not contain consolidated financial information as the parent of a group. The company has

taken the option under Section 398 of the Companies Act 2006 not to prepare consolidated financial statements.

Significant judgements and estimates

Preparation of the financial statements requires management to make significant judgements and estimates. The

items in the financial statements where these judgement and estimates have been made include:

a - Critical judgements in applying accounting policies

There are no critical judgements (apart from those involving estimates) that have had a significant effect on

amounts recognised in the financial statements.

b - Key accounting estimates and assumptions

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will,

by definition, seldom equal the actual results. The estimates and assumptions that have the most significant

potential impact upon the carrying values of assets and liabilities within the next financial year are as follows;

i) Useful economic lives of tangible fixed assets

The useful economic lives used by the Company in respect of tangible fixed assets are set out in the accounting

policies. These estimates are the best estimate based on past experience and expected performance and are

regularly reviewed to ensure they remain appropriate. The net book value of tangible fixed assets as at 31

December 2016 was £4,155,932 after a depreciation charge in the period of £251,393.

ii) Property valuation

The valuation of the Company's property is inherently subjective due to, among other factors, the individual

nature of each property, its location and its condition. As a result, the valuations the Company places on its

properties are subject to a degree of uncertainty and are made on the basis of assumptions which may not prove

to be accurate, particularly in periods of volatility or low transaction flow in the property market.

The valuations contain a number of assumptions upon which the Company's valuer has based their valuations,

including matters such as ground conditions, the structural conditions and comparable market transactions.

The market value of the Group's property, as determined by the director, was £3,270,000 (2015: £3,270,000).

iii) Stock

Stocks are stated at the lower of cost and net realisable value. Provision is made for obsolete, slow-moving or

defective items where appropriate. The value of stock as at 31 December 2016 was £1,071,532.

Impairment of assets

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets

have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of

any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is

lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is

recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised

estimate of its recoverable amount, but not in excess of the amount that would have been determined had no

impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised

immediately in profit or loss.

Revenue recognition

Turnover from the sale of goods and services is measured at the fair value of consideration receivable, net of

discounts.

Revenue is recognised to the extent that it is probable that economic benefits will flow to the company and the

revenue can be reliably measured. In practice this means that revenue is recognised when equipment or parts

are invoiced and physically dispatched or when the service has been undertaken.

Tangible fixed assets

Depreciation is provided for at the following annual rates in order to write down each asset over its estimated

useful life.

Freehold property

- 2% on cost of buildings

Long leasehold property

- 2% on cost of buildings

Plant and machinery

- At various rates between 5% and 10% on cost

Fixtures, fittings and office equipment

- At various rates between 3% and 20% on cost

Motor vehicles

- At various rates between 14.28% and 20% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 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.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and

rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets' fair value at the date of

inception and the present value of the minimum lease payments. The related liability is included in the balance

sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements.

The interest is charged to the income statement so as to produce a constant periodic rate of interest on the

remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to income on a

straight line basis over the term of the relevant lease except where another more systematic basis is more

representative of the time pattern in which economic benefits from the lease asset are consumed.

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial

assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and

loans to related parties.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other

debtors and creditors, are initially measured at present value of the future cash flows and subsequently at

amortised cost using the effective interest method. Debt instruments that are payable or receivable within one

year, typically trade debtors or creditors, are measured, initially and subsequently, at the undiscounted amount

of the cash and other consideration, expected to be paid or received. However if the arrangements of a

short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond

normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right

short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the

future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at

amortised cost.

Financial assets that are measured at cost and amortised are assessed at the end of each reporting period for

objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is

recognised in the Profit and Loss Account.

Provisions for liabilities

A provision is recognised in the Balance Sheet when the Company has a present legal or constructive obligation

as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits

will be required to settle the obligation. Provisions are determined by discounting the expected future cash

flows at a pre-tax rate that reflects risks specific to the liability

Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational

existence for the foreseeable future. The company therefore continues to adopt the going concern basis in

preparing its financial statements.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 44 (2015 - 47 ) .

4.	OPERATING PROFIT

The operating profit is stated after charging:

31.12.16

31.12.15

£

£

Depreciation - owned assets

251,393

250,228

Research and development

417,928

452,586

5.	TANGIBLE FIXED ASSETS

Freehold

Long

Plant and

property

leasehold

machinery

£

£

£

COST OR VALUATION

At 1 January 2016

1,820,000

1,450,000

602,885

Additions

-

-

220,861

Disposals

-

-

(88,964

)

At 31 December 2016

1,820,000

1,450,000

734,782

DEPRECIATION

At 1 January 2016

40,109

19,865

304,812

Charge for year

40,109

19,865

70,028

Eliminated on disposal

-

-

(77,708

)

At 31 December 2016

80,218

39,730

297,132

NET BOOK VALUE

At 31 December 2016

1,739,782

1,410,270

437,650

At 31 December 2015

1,779,891

1,430,135

298,073

Fixtures,fittings

and

office

Motor

equipment

vehicles

Totals

£

£

£

COST OR VALUATION

At 1 January 2016

1,542,520

389,093

5,804,498

Additions

68,601

-

289,462

Disposals

-

(156,646

)

(245,610

)

At 31 December 2016

1,611,121

232,447

5,848,350

DEPRECIATION

At 1 January 2016

1,041,317

228,627

1,634,730

Charge for year

74,772

46,619

251,393

Eliminated on disposal

-

(115,997

)

(193,705

)

At 31 December 2016

1,116,089

159,249

1,692,418

NET BOOK VALUE

At 31 December 2016

495,032

73,198

4,155,932

At 31 December 2015

501,203

160,466

4,169,768

Amounts brought forward have been restated to reflect the capitalisation of plant and machinery costs that had

previously been expensed as follows:

£

Cost

290,345

Accumulated depreciation

42,689

Provisions for liabilities (being deferred tax in relation to the above)

49,531

The restatement has necessitated changes to the depreciation charges and deferred tax charges recognised in the

accounts in respect of 2015 and earlier periods. The effects have been to increase the retained earnings brought

forward at 1 January 2015 by £97,080, to increase the profit before taxation for 2015 by £124,770, to increase

the tax on profit for 2015 by £23,725, and therefore to increase the profit after tax for the 2015 financial year by

£101,045.

Cost or valuation at 31 December 2016 is represented by:

Freehold

Long

Plant and

property

leasehold

machinery

£

£

£

Valuation in 2012

135,987

-

-

Valuation in 2014

252,528

467,152

-

Cost

1,431,485

982,848

734,782

1,820,000

1,450,000

734,782

Fixtures,fittings

and

office

Motor

equipment

vehicles

Totals

£

£

£

Valuation in 2012

-

-

135,987

Valuation in 2014

-

-

719,680

Cost

1,611,121

232,447

4,992,683

1,611,121

232,447

5,848,350

If freehold land and buildings had not been revalued they would have been included at the following historical

cost:

31.12.16

31.12.15

£

£

Cost

1,431,486

1,431,486

Aggregate depreciation

328,874

328,874

Value of land in freehold land and buildings

485,612

485,612

Freehold and Long Leasehold land and buildings were valued on an open market basis as at 31 December 2014

by the director, Mr M J Shortall. Open market values were not considered to have changed materially in the

period to 31 December 2016.

6.	FIXED ASSET INVESTMENTS

Other

investments

£

COST

At 1 January 2016

571,518

Impairments

(160,849

)

At 31 December 2016

410,669

NET BOOK VALUE

At 31 December 2016

410,669

At 31 December 2015

571,518

The company's investments at the Balance Sheet date comprise the following:

Name: Vilamoura Charters LLP

Country of incorporation: England and Wales

Nature of business: Yacht charter

Member's interest: 97%

Total members' interests as at 31 December 2016: £423,370

Loss for the period ended 31 December 2016: £101,179.

During the year ended 31 December 2016 the company recognised an impairment loss of £160,849 (2015:

£78,482) due to the LLP's loss-making position.

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.16

31.12.15

£

£

Trade debtors

628,159

1,395,539

Amounts owed by group undertakings

327,942

245,881

Other debtors

3,379,898

2,158,438

4,335,999

3,799,858

8.	CURRENT ASSET INVESTMENTS

31.12.16

31.12.15

£

£

Unlisted investments

10,000

10,000

The unlisted investments are valued at cost less impairment.

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.16

31.12.15

£

£

Bank loans and overdrafts

284,547

84,725

Payments received on account

6,351

268,289

Trade creditors

1,617,972

1,369,214

Taxation and social security

349,369

314,616

Other creditors

178,152

512,249

2,436,391

2,549,093

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.16

31.12.15

£

£

Bank loans

880,071

1,161,918

Amounts falling due in more than five years:

Repayable by instalments

Bank loans

6,969

50,670

11.

RESERVES

Revaluation

reserve

£

At 1 January 2016

1,126,725

Deferred tax movement

12,336

At 31 December 2016

1,139,061

12.	CONTINGENT LIABILITIES

The company had contingent liabilities of £10,000 (31 December 2015 - £10,000) in respect of HM Customs &

Excise duty deferment, £44,000 (31 December 2015 - £44,000) in respect of a guarantee to the Environment

Agency and £66,241 (31 December 2015 - £104,947) in respect of product warranty guarantees.

13.	DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 December 2016 and

31 December 2015:

31.12.16

31.12.15

£

£

M J Shortall

Balance outstanding at start of year

1,633,795

543,005

Amounts advanced

1,019,142

1,254,810

Amounts repaid

(110,373

)

(164,020

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

2,542,564

1,633,795

The above transactions form the director's current account shown in current assets. Interest is receivable on the

account at a rate of 3.00% (2015 - between 3.00 and 3.25%) per annum. Interest received during the year was

£63,640 (2015 - £43,644).

At the year end the company's bankers held a personal guarantee from M J Shortall for £100,000 (2015 -

£100,000) in respect of the company's borrowings.