A B E

ASSOCIATED BRITISH ENGINEERING PLC

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED

30 SEPTEMBER 2020

ASSOCIATED BRITISH ENGINEERING PLC

Company Registration No. 00110663 (England and Wales)

REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 SEPTEMBER 2020

CONTENTS

Page

Financial highlights

1

Chairmen's statement

2

Directors' report

3

Strategic report

6

Report of the independent auditor - Group

9

Group and Parent Company accounting policies

14

Consolidated income statement

20

Consolidated statement of comprehensive income

21

Group statement of financial position

22

Group statement of changes in equity

23

Group cash flow statement

24

Notes to the Group financial statements

25

Company statement of financial position

37

Company statement of changes in equity

48

Company cash flow statement

49

Notes to the Company financial statements

40

Statement of directors' responsibilities

46

Corporate governance report

47

Directors' remuneration report

52

Directors, registered office and advisers

55

The Directors' Report on pages 3 to 5 and the Directors' Remuneration Report on pages 52 to 54 have each been drawn up in accordance with the requirements of English law and liability in respect thereof is also governed by English law. In particular, the responsibility of the directors for these reports is owed solely to Associated British Engineering plc.

The directors submit to the members their Report and Accounts for the Group for the period ended 30 September 2020. Pages 1 to 8 and 47 to 55, including the Financial Highlights, Chairmen's Statement, Directors' Report, Strategic Report, Corporate Governance Report, Directors' Remuneration Report and the Directors, Registered Office and Advisers page form part of the Report of the Directors.

ASSOCIATED BRITISH ENGINEERING PLC

FINANCIAL HIGHLIGHTS

30 Sep

31 Mar

2020

2019

£'000

£'000

REVENUE

165

1,134

OPERATING PROFIT/ (LOSS)

139

(1,742)

PROFIT/ (LOSS) BEFORE TAXATION

145

(1,810)

NET ASSETS/ (LIABILITIES)

591

(3,708)

BASIC PROFIT/ (LOSS) PER 2.5p ORDINARY SHARE

263.0p

(84.5p)

EQUITY SHAREHOLDERS' FUNDS PER 2.5p ORDINARY SHARE

£0.29

(£1.81)

1

ASSOCIATED BRITISH ENGINEERING PLC

CHAIRMEN'S STATEMENT

FOR THE PERIOD ENDED 30 SEPTEMBER 2020

The shareholders of Associated British Engineering Plc (ABE) will be disappointed that the operations of its main subsidiary British Polar Engines Ltd (BPE) failed to improve since the last annual accounts and up to the beginning of 2020 to a sufficient degree to counter the drag of the historic pension fund liabilities. Following a period of marketing and approval at the shareholder meeting held on 3 August 2020, the Group disposed of its shareholding in BPE together with its loan to that company. Consequently as at 30 September 2020 the Group had one remaining subsidiary, Akoris Trading Limited, and some investments.

The actuarial increases to the liabilities of the pension fund together with judgement of likely future actuarial movements meant that there seemed to be no end in sight to actuarial increases and reducing the deficit. While the disposal of BPE is regrettable it had proved necessary for the future of BPE for it to combine with another business.

You will see from our financial numbers and the balance sheet that in the period our net assets have improved by over £4 million. This is due primarily to the Pension Fund no longer being a liability of the Group as at 30 September 2020. We are unable to comment on the trading of BPE as we have been denied access to the accounts of our former subsidiary. We do not believe that this impacts in any way on our balance sheet position as at 30 September 2020.

It is hoped that the BPE staff and the business at Helen Street will prosper under its new ownership with a more diverse business model and that BPE will contribute profits for its new owners. We take this opportunity to thank all of our former group employees for their support over many years and especially from the start of the Pandemic in early 2020.

The Board has, meanwhile, taken the opportunity to again reduce the cost base of the remaining parts of the Associated British Engineering Plc group. Since the year end the investments have made a useful gain in value and the company has started the process of diversifying the investments. It is expected that these and future capital gains will be tax free due to inherited capital gains tax losses; the Board will take the opportunity to liquidate investments and invest for future growth when suitable opportunities occur.

Your company is now in a position to talk to potential acquisitions without having to consider the impact of the pension fund and related historical deficits. Your Board is now committed to using all its efforts to identifying and acquiring a new business with growth potential and hopefully showing profits for our group and a financial return for our patient shareholders.

Rupert Pearce Gould and Colin Weinberg

Chairmen

Date: 30 March 2021

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ABE - Associated British Engineering plc published this content on 21 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 May 2021 12:14:01 UTC.