Company registration number 01245667 (England and Wales)
ARROW PRECISION ENGINEERING LIMITED
ANNUAL REPORT AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 OCTOBER 2023
PAGES FOR FILING WITH REGISTRAR
ARROW PRECISION ENGINEERING LIMITED
COMPANY INFORMATION
Directors
Mr I D Arnold
Mrs J S Reeves
Mrs R Arnold
Company number
01245667
Registered office
12 Barleyfield
Hinckley Fields Industrial Estate
Hinckley
Leicestershire
LE10 1YE
Auditor
Newby Castleman LLP
West Walk Building
110 Regent Road
Leicester
LE1 7LT
Business address
12 Barleyfield
Hinckley Fields Industrial Estate
Hinckley
Leicestershire
LE10 1YE
Bankers
National Westminster Bank plc
13 The Borough
Hinckley
Leicestershire
LE10 1NL
ARROW PRECISION ENGINEERING LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
Information for management
-
ARROW PRECISION ENGINEERING LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
2,694,675
2,617,571
Current assets
Stocks
760,776
902,473
Debtors
5
1,768,874
1,252,930
Cash at bank and in hand
887,345
431,468
3,416,995
2,586,871
Creditors: amounts falling due within one year
6
(1,248,184)
(1,019,068)
Net current assets
2,168,811
1,567,803
Total assets less current liabilities
4,863,486
4,185,374
Creditors: amounts falling due after more than one year
7
(46,667)
(173,139)
Provisions for liabilities
(390,204)
(348,120)
Net assets
4,426,615
3,664,115
Capital and reserves
Called up share capital
8
10,100
10,100
Profit and loss reserves
4,416,515
3,654,015
Total equity
4,426,615
3,664,115
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 4 April 2024 and are signed on its behalf by:
Mr I D Arnold
Mrs R Arnold
Director
Director
Company registration number 01245667 (England and Wales)
ARROW PRECISION ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -
1
Accounting policies
Company information
Arrow Precision Engineering Limited is a private company limited by shares incorporated in England and Wales. The registered office is 12 Barleyfield, Hinckley Fields Industrial Estate, Hinckley, Leicestershire, LE10 1YE.
1.1
Basis of preparation
These financial statements have been prepared in accordance with applicable accounting standards including 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. These policies have been consistently applied to all years presented unless otherwise stated.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services net of VAT provided in the normal course of business. Turnover is recognised as earned when and to the extent that, the company obtains the right to consideration in exchange for its performance under contracts and is recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts the amount of revenue reflects the accrual of the right to consideration by reference to the value of work performed. Turnover not billed to clients is included in debtors and classified as 'amounts due from contract customers'.
1.3
Tangible fixed assets
Tangible fixed assets are measured at cost net of depreciation.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Land and buildings Freehold
No depreciation
Leasehold property improvements
15% per annum of net book value
Plant and machinery
10% per annum of net book value
Fixtures, fittings & equipment
15% per annum of net book value & 33% per annum of cost
Motor vehicles
25% per annum of net book value
Freehold land is not depreciated. The estimated residual value of freehold buildings is such that their depreciable amount is insignificant. Accordingly, no depreciation is charged on freehold buildings.
1.4
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Provision is made for damaged, obsolete and slow-moving stock where appropriate.
1.5
Financial instruments
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
ARROW PRECISION ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 3 -
Debtors and creditors with no stated interest rate and receivable or payable within one year are measured at transaction price. Any losses arising from impairment are recognised in the profit and loss account.
Loans payable over a period of more than one year with a stated interest rate are initially measured at transaction price and subsequently measured at amortised cost using the effective interest method.
1.6
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
1.7
Employee benefits
When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.
1.8
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.9
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 profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases are charged to the profit and loss account on a straight line basis over the lease term.
ARROW PRECISION ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 4 -
1.10
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in the profit and loss account.
1.11
Research expenditure is written off to the profit and loss account in the year in which it is incurred. Development expenditure is written off in the same way unless the directors are satisfied as to the technical, commercial and financial viability of the individual projects. In this situation, the expenditure is deferred and amortised over the period during which the company is expected to benefit.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
48
47
3
Intangible fixed assets
Goodwill
£
Cost
At 1 November 2022 and 31 October 2023
245,000
Amortisation and impairment
At 1 November 2022 and 31 October 2023
245,000
Carrying amount
At 31 October 2023
At 31 October 2022
ARROW PRECISION ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 5 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc.
Total
£
£
£
Cost
At 1 November 2022
821,567
5,566,048
6,387,615
Additions
7,845
273,820
281,665
Disposals
(48,603)
(48,603)
At 31 October 2023
829,412
5,791,265
6,620,677
Depreciation and impairment
At 1 November 2022
70,504
3,699,540
3,770,044
Depreciation charged in the year
3,625
194,927
198,552
Eliminated in respect of disposals
(42,594)
(42,594)
At 31 October 2023
74,129
3,851,873
3,926,002
Carrying amount
At 31 October 2023
755,283
1,939,392
2,694,675
At 31 October 2022
751,063
1,866,508
2,617,571
5
Debtors
2023
2022
Amounts falling due within one year
£
£
Trade debtors
606,327
574,839
Gross amounts owed by contract customers
1,018,775
551,172
Other debtors
11,750
11,750
Prepayments and accrued income
132,022
115,169
1,768,874
1,252,930
6
Creditors: amounts falling due within one year
2023
2022
£
£
Obligations under finance leases
86,474
148,244
Other borrowings
40,000
40,000
Trade creditors
686,433
634,511
Corporation tax
180,761
20,209
Other taxation and social security
142,223
107,708
Other creditors
12,023
11,461
Accruals and deferred income
100,270
56,935
1,248,184
1,019,068
ARROW PRECISION ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 6 -
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Loans and overdrafts
46,667
86,667
Obligations under finance leases
86,472
46,667
173,139
The outstanding hire purchase obligations of £86,474 (2022: £234,716) are secured against the assets to which they relate.
8
Called up share capital
2023
2022
£
£
Issued and fully paid
100 'A' Ordinary shares of £1 each
100
100
10,000 'B' Ordinary shares of £1 each
10,000
10,000
10,100
10,100
9
Audit report information
As the profit and loss account has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Paul Barnett FCCA
Statutory Auditor:
Newby Castleman LLP
Date of audit report:
16 April 2024
10
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
242,432
53,973
11
Events after the reporting date
On 4th January 2024 dividends of £100,000 were declared.