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2022-01-01
Sage Accounts Production Advanced 2021 - FRS102_2021
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xbrli:shares
iso4217:GBP
02579965
2022-01-01
2022-12-31
02579965
2022-12-31
02579965
2021-12-31
02579965
2021-01-01
2021-12-31
02579965
2021-12-31
02579965
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2022-01-01
2022-12-31
02579965
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2021-12-31
02579965
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2021-12-31
02579965
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2022-12-31
02579965
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2022-12-31
02579965
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2022-01-01
2022-12-31
02579965
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2022-01-01
2022-12-31
02579965
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2022-12-31
02579965
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2021-12-31
02579965
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2022-12-31
02579965
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2021-12-31
02579965
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2022-12-31
02579965
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2021-12-31
02579965
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2022-12-31
02579965
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2021-12-31
02579965
core:RetainedEarningsAccumulatedLosses
2022-12-31
02579965
core:RetainedEarningsAccumulatedLosses
2021-12-31
02579965
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2021-12-31
02579965
core:PlantMachinery
2021-12-31
02579965
bus:SmallEntities
2022-01-01
2022-12-31
02579965
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2022-01-01
2022-12-31
02579965
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2022-01-01
2022-12-31
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2022-01-01
2022-12-31
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2022-01-01
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2022-01-01
2022-12-31
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2022-01-01
2022-12-31
02579965
1
2022-01-01
2022-12-31
COMPANY REGISTRATION NUMBER:
02579965
PALLION ENGINEERING LIMITED |
|
FILLETED UNAUDITED FINANCIAL STATEMENTS |
|
PALLION ENGINEERING LIMITED |
|
STATEMENT OF FINANCIAL POSITION |
|
31 December 2022
Fixed Assets
Tangible assets |
5 |
|
2,539,034 |
2,314,886 |
|
|
|
|
|
Current Assets
Debtors |
6 |
236,231 |
|
164,468 |
Cash at bank and in hand |
231,215 |
|
22,940 |
|
--------- |
|
--------- |
|
467,446 |
|
187,408 |
|
|
|
|
|
Creditors: amounts falling due within one year |
7 |
321,947 |
|
433,081 |
|
--------- |
|
--------- |
Net Current Assets/(Liabilities) |
|
145,499 |
(
245,673) |
|
|
------------ |
------------ |
Total Assets Less Current Liabilities |
|
2,684,533 |
2,069,213 |
|
|
|
|
|
Creditors: amounts falling due after more than one year |
8 |
|
2,911,341 |
2,171,341 |
|
|
------------ |
------------ |
Net Liabilities |
|
(
226,808) |
(
102,128) |
|
|
------------ |
------------ |
|
|
|
|
|
PALLION ENGINEERING LIMITED |
|
STATEMENT OF FINANCIAL POSITION (continued) |
|
31 December 2022
Capital and Reserves
Called up share capital |
|
2,075,000 |
2,075,000 |
Profit and loss - non-distributable reserve |
|
2,289,981 |
2,170,151 |
Profit and loss - distributable reserve |
|
(
4,591,789) |
(
4,347,279) |
|
|
------------ |
------------ |
Shareholders Deficit |
|
(
226,808) |
(
102,128) |
|
|
------------ |
------------ |
|
|
|
|
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.
For the year ending 31 December 2022 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
;
-
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 were approved by the
board of directors
and authorised for issue on
8 February 2024
, and are signed on behalf of the board by:
Company registration number:
02579965
PALLION ENGINEERING LIMITED |
|
NOTES TO THE FINANCIAL STATEMENTS |
|
YEAR ENDED 31 DECEMBER 2022
1.
General Information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Pallion Yard, Pallion, Sunderland, SR4 6LL.
2.
Statement of Compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3.
Accounting Policies
Basis of preparation
These financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 under the historical cost convention.
The principal accounting policies adopted are set out below:
Going concern
"These financial statements have been prepared on a going concern basis despite the fact that the company has net liabilities of £226,808 and repayable debenture loans amounting to £2,133,841. The debenture holders have been asked to provide confirmation that they will not seek repayment in the foreseeable future, and have confirmed in writing that the debenture loans will be extended for a minimum period of 12 months from 31st January 2024. In addition, your attention is drawn to note 8 below.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for engineering services supplied and services rendered, stated net of discounts and of Value Added Tax. Revenue from the supply of services is recognised when the agreed criteria from the provision of services have been met, usually on contract of services, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Operating leases
Lease income is recognised in profit or loss on a straight line basis over the lease term. The aggregate cost of lease incentives are recognised as a reduction to income over the lease term on a straight-line basis. Costs, including depreciation, incurred in earning the lease income are recognised as an expense. Any initial direct costs incurred in negotiating and arranging the operating lease are added to the carrying amount of the lease and recognised as an expense over the lease term on the same basis as the lease income.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
|
Plant and machinery |
- |
2% to 33 1/3 % straight line
|
|
Computer equipment |
- |
25% straight line |
|
|
|
|
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis 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 and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Defined contribution plans
The company operates a defined contribution pension scheme covering a number of its employees. The scheme funds are administered by trustees and the assets of the scheme are held separately from those of the company. The pension costs charged against profits represent the amount of the contributions payable to the scheme in respect of the accounting period.
4.
Employee Numbers
The average number of persons employed by the company during the year amounted to
4
(2021:
5
).
5.
Tangible Assets
|
Land and buildings |
Plant and machinery |
Equipment |
Total |
|
£ |
£ |
£ |
£ |
Cost or valuation |
|
|
|
|
At 1 January 2022 |
2,050,000 |
4,972,703 |
4,197 |
7,026,900 |
Additions |
107,918 |
– |
– |
107,918 |
Revaluations |
125,000 |
– |
– |
125,000 |
|
------------ |
------------ |
------- |
------------ |
At 31 December 2022 |
2,282,918 |
4,972,703 |
4,197 |
7,259,818 |
|
------------ |
------------ |
------- |
------------ |
Depreciation |
|
|
|
|
At 1 January 2022 |
– |
4,708,018 |
3,996 |
4,712,014 |
Charge for the year |
– |
8,572 |
198 |
8,770 |
|
------------ |
------------ |
------- |
------------ |
At 31 December 2022 |
– |
4,716,590 |
4,194 |
4,720,784 |
|
------------ |
------------ |
------- |
------------ |
Carrying amount |
|
|
|
|
At 31 December 2022 |
2,282,918 |
256,113 |
3 |
2,539,034 |
|
------------ |
------------ |
------- |
------------ |
At 31 December 2021 |
2,050,000 |
264,685 |
201 |
2,314,886 |
|
------------ |
------------ |
------- |
------------ |
|
|
|
|
|
The land and buildings occupied by the company were revalued by the directors during the year on the basis of a valuation made by external valuers, Lambert Smith Hampton, on a fair value basis prepared in accordance with the Royal Institution of Chartered Surveyors Valuation Guidance as set out within the 2017 Global Standards and with particular reference to the UK supplement, also known as the "Red Book" on 23 February 2022. Plant and equipment were revalued by by Messrs. Thompson and Bryan on 14th February 1991 on the basis of open market value for the existing use in accordance with the Statements of Asset Valuation Practice and Guidance Notes of the Royal Institution of Chartered Surveyors. The directors do not believe that the current valuations are materially different from these valuations. The depreciated cost of tangible fixed assets, included above at cost or valuation, determined according to the historical cost accounting rules is as follows: Land and buildings - Cost: £398,430
(2021: £290,512)
Depreciation to date: £255,058(2021: £255,058)Plant and equipment - Cost: £1,821,724(2021: £1,821,724)Depreciation to date: £1,716,9503(2021: £1,712,443)
6.
Debtors
|
2022 |
2021 |
|
£ |
£ |
Trade debtors |
174,403 |
68,432 |
Other debtors |
61,828 |
96,036 |
|
--------- |
--------- |
|
236,231 |
164,468 |
|
--------- |
--------- |
|
|
|
7.
Creditors:
amounts falling due within one year
|
2022 |
2021 |
|
£ |
£ |
Bank loans and overdrafts |
10,000 |
10,000 |
Trade creditors |
183,663 |
318,824 |
Social security and other taxes |
23,045 |
17,462 |
Other creditors |
105,239 |
86,795 |
|
--------- |
--------- |
|
321,947 |
433,081 |
|
--------- |
--------- |
|
|
|
8.
Creditors:
amounts falling due after more than one year
|
2022 |
2021 |
|
£ |
£ |
Bank loans and overdrafts |
27,500 |
37,500 |
Other loans |
750,000 |
– |
Other creditors |
2,133,841 |
2,133,841 |
|
------------ |
------------ |
|
2,911,341 |
2,171,341 |
|
------------ |
------------ |
|
|
|
The debenture loans are secured by a fixed charge over all plant, machinery, machine apparatus and chattels. The debenture loans, currently totalling, £2,133,841 have been extended for a minimum period not to expire prior to 31st January 2025. It is anticipated that the debenture loans will continue to be extended beyond that date.
9.
Operating Leases
As lessor
The total future minimum lease payments receivable under non-cancellable operating leases are as follows:
|
2022 |
2021 |
|
£ |
£ |
Not later than 1 year |
42,571 |
49,782 |
|
-------- |
-------- |
|
|
|
10.
Events after the End of the Reporting Period
Since the balance sheet date the shareholders have continued to provide further 'fresh' loans required to meet the financial obligations of the business, including those for planned maintenance and repairs of the infrastructure, and they have also provided verbal assurances that a further sum of £500,000 will be made available to the directors to restore the balance sheet of the company so that the current shareholder deficit will be made good in full. These further sums will be utilised to meet the future planned capital expenditure and the day to day cash flow requirements of the business.