Trinity Precision Engineering Ltd 08523037 false 2022-08-01 2023-07-31 2023-07-31 The principal activity of the company is precision engineering. Digita Accounts Production Advanced 6.30.9574.0 true true 08523037 2022-08-01 2023-07-31 08523037 2023-07-31 08523037 core:RetainedEarningsAccumulatedLosses 2023-07-31 08523037 core:ShareCapital 2023-07-31 08523037 core:CurrentFinancialInstruments 2023-07-31 08523037 core:CurrentFinancialInstruments core:WithinOneYear 2023-07-31 08523037 core:Non-currentFinancialInstruments 2023-07-31 08523037 core:Non-currentFinancialInstruments core:AfterOneYear 2023-07-31 08523037 core:FurnitureFittings 2023-07-31 08523037 core:MotorVehicles 2023-07-31 08523037 core:OfficeEquipment 2023-07-31 08523037 core:PlantMachinery 2023-07-31 08523037 bus:SmallEntities 2022-08-01 2023-07-31 08523037 bus:AuditExemptWithAccountantsReport 2022-08-01 2023-07-31 08523037 bus:FullAccounts 2022-08-01 2023-07-31 08523037 bus:SmallCompaniesRegimeForAccounts 2022-08-01 2023-07-31 08523037 bus:RegisteredOffice 2022-08-01 2023-07-31 08523037 bus:Director1 2022-08-01 2023-07-31 08523037 bus:Director2 2022-08-01 2023-07-31 08523037 bus:PrivateLimitedCompanyLtd 2022-08-01 2023-07-31 08523037 core:FurnitureFittings 2022-08-01 2023-07-31 08523037 core:FurnitureFittingsToolsEquipment 2022-08-01 2023-07-31 08523037 core:MotorVehicles 2022-08-01 2023-07-31 08523037 core:OfficeEquipment 2022-08-01 2023-07-31 08523037 core:PlantMachinery 2022-08-01 2023-07-31 08523037 countries:EnglandWales 2022-08-01 2023-07-31 08523037 2022-07-31 08523037 core:FurnitureFittings 2022-07-31 08523037 core:MotorVehicles 2022-07-31 08523037 core:OfficeEquipment 2022-07-31 08523037 core:PlantMachinery 2022-07-31 08523037 2021-08-01 2022-07-31 08523037 2022-07-31 08523037 core:RetainedEarningsAccumulatedLosses 2022-07-31 08523037 core:ShareCapital 2022-07-31 08523037 core:CurrentFinancialInstruments 2022-07-31 08523037 core:CurrentFinancialInstruments core:WithinOneYear 2022-07-31 08523037 core:Non-currentFinancialInstruments 2022-07-31 08523037 core:Non-currentFinancialInstruments core:AfterOneYear 2022-07-31 08523037 core:FurnitureFittings 2022-07-31 08523037 core:MotorVehicles 2022-07-31 08523037 core:OfficeEquipment 2022-07-31 08523037 core:PlantMachinery 2022-07-31 iso4217:GBP xbrli:pure

Registration number: 08523037

Trinity Precision Engineering Ltd

Filleted Annual Report and Unaudited Financial Statements

for the Year Ended 31 July 2023

 

Trinity Precision Engineering Ltd

Contents

Company Information

1

Statement of Financial Position

2 to 3

Notes to the Unaudited Financial Statements

4 to 10

 

Trinity Precision Engineering Ltd

Company Information

Directors

V Henderson

C P Buckley

Registered office

Unit B10, Hamar Close
Tyne Tunnel Trading Estate
North Shields
NE29 7XB

Accountants

Azets
Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
NE3 3LS

 

Trinity Precision Engineering Ltd

(Registration number: 08523037)
Statement of Financial Position as at 31 July 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

3,453,698

3,955,755

Current assets

 

Stocks

5

378,600

293,986

Debtors

6

825,976

719,182

Cash at bank and in hand

 

1,446

5,636

 

1,206,022

1,018,804

Creditors: Amounts falling due within one year

7

(2,788,178)

(2,198,903)

Net current liabilities

 

(1,582,156)

(1,180,099)

Total assets less current liabilities

 

1,871,542

2,775,656

Creditors: Amounts falling due after more than one year

7

(1,612,441)

(2,528,595)

Provisions for liabilities

(203,336)

(195,148)

Net assets

 

55,765

51,913

Capital and reserves

 

Called up share capital

4

4

Profit and loss account

55,761

51,909

Total equity

 

55,765

51,913

For the financial year ending 31 July 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

 

Trinity Precision Engineering Ltd

(Registration number: 08523037)
Statement of Financial Position as at 31 July 2023 (continued)

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Income Statement.

Approved and authorised for issue by the Board on 20 October 2023 and signed on its behalf by:
 

.........................................
C P Buckley
Director

 

Trinity Precision Engineering Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is Unit B10, Hamar Close, Tyne Tunnel Trading Estate, North Shields, NE29 7XB.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention.

These financial statements are prepared in sterling which is the functional currency of the entity.

Going concern

The financial statements have been prepared on a going concern basis. The company meets its day to day working capital requirements through cash generated from operations, shareholder borrowings and external borrowings. The company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance.

Based on the factors set out above the directors believe that it remains appropriate to prepare the financial statements on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

 

Trinity Precision Engineering Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023 (continued)

2

Accounting policies (continued)

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Tax

The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

 

Asset class

Depreciation method and rate

 

Plant and machinery

15% reducing balance

 

Motor vehicles

20% reducing balance

 

Furniture. fittings and equipment

25% reducing balance

 

Office equipment

25% reducing balance

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

Trinity Precision Engineering Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023 (continued)

2

Accounting policies (continued)

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.

Lease payments are apportioned between finance costs in the income statement and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

 

Trinity Precision Engineering Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023 (continued)

2

Accounting policies (continued)

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 28 (2022 - 31).

 

Trinity Precision Engineering Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023 (continued)

4

Tangible assets

Fixtures and fittings
£

Plant and machinery
£

Office equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 August 2022

25,043

5,388,405

-

20,089

5,433,537

Additions

-

72,950

36,797

-

109,747

At 31 July 2023

25,043

5,461,355

36,797

20,089

5,543,284

Depreciation

At 1 August 2022

9,297

1,453,540

-

14,945

1,477,782

Charge for the year

3,936

600,260

6,579

1,029

611,804

At 31 July 2023

13,233

2,053,800

6,579

15,974

2,089,586

Carrying amount

At 31 July 2023

11,810

3,407,555

30,218

4,115

3,453,698

At 31 July 2022

15,746

3,934,865

-

5,144

3,955,755

 

Trinity Precision Engineering Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023 (continued)

5

Stocks

2023
£

2022
£

Raw materials and consumables

38,724

3,600

Work in progress

339,876

290,386

378,600

293,986

6

Debtors

2023
£

2022
£

Trade debtors

624,123

549,376

Amounts owed by related parties

157,553

97,472

Prepayments

44,300

-

Corporation tax asset

-

72,334

825,976

719,182

7

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Bank loans and overdrafts

8

1,257,776

871,561

Trade creditors

 

307,436

255,820

Taxation and social security

 

709,071

446,480

Accruals and deferred income

 

8,050

5,500

Other creditors

 

460,726

469,933

Directors loan accounts

 

45,119

149,609

 

2,788,178

2,198,903

The factoring advances of £451,948 (2022 - £449,999) included within other creditors are secured over the company's debtor book.

Hire purchase and finance lease creditors are secured against the assets to which they relate.

 

Trinity Precision Engineering Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 July 2023 (continued)

7

Creditors (continued)

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

8

1,612,441

2,528,595

8

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Hire purchase and finance lease liabilities

1,215,224

807,447

Other borrowings

42,552

64,114

1,257,776

871,561

2023
£

2022
£

Non-current loans and borrowings

Hire purchase and finance lease liabilities

1,547,974

2,426,048

Other borrowings

64,467

102,547

1,612,441

2,528,595

9

Financial commitments, guarantees and contingencies

Amounts not provided for in the statement of financial position

The total amount of financial commitments not included in the statement of financial position is £29,879 (2022 - £47,807).