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Registration number: 03816958

Norfolk Precision Engineering Limited

Unaudited Filleted Financial Statements

for the Year Ended 31 July 2023

 

Norfolk Precision Engineering Limited

Contents


 

Balance Sheet

1 to 2

Notes to the Financial Statements

3 to 11

 

Norfolk Precision Engineering Limited

Registration number: 03816958

Balance Sheet as at 31 July 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

5

271,837

255,052

Current assets

 

Stocks

6

36,000

46,500

Debtors

7

212,629

242,711

Cash at bank and in hand

 

7,765

13,876

 

256,394

303,087

Creditors: Amounts falling due within one year

8

(244,984)

(283,531)

Net current assets

 

11,410

19,556

Total assets less current liabilities

 

283,247

274,608

Creditors: Amounts falling due after more than one year

8

(44,013)

(75,159)

Provisions for liabilities

(67,392)

(47,920)

Net assets

 

171,842

151,529

Capital and reserves

 

Called up share capital

9

4

4

Retained earnings

171,838

151,525

Shareholders' funds

 

171,842

151,529



The director's statements required by sections 475 (2) and (3) are shown on the following page which forms part of this Balance Sheet.

 

Norfolk Precision Engineering Limited

Registration number: 03816958

Balance Sheet as at 31 July 2023 (continued)

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 accounts 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 accounts.

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.

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 Profit and Loss Account.

Approved and authorised by the Board on 11 April 2024 and signed on its behalf by:
 


J P Bone
Director


H R Harwood
Director

 
     
 

Norfolk Precision Engineering Limited

Notes to the 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 16 251 Holt Road
Horsford
Norwich
Norfolk
NR10 3EB

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 except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

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 sales/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.

 

Norfolk Precision Engineering Limited

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

2

Accounting policies (continued)

Government grants

Government grants in relation to expenditure are credited to the profit and loss account in the period in which the related expenditure is charged.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change 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.

 

Norfolk Precision Engineering Limited

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

2

Accounting policies (continued)

Tangible assets

Tangible assets are stated in the balance sheet 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 equipment

10% or 25% Reducing balance

Fixtures, fittings an equipment

15% Reducing balance

Motor vehicles

25% Reducing balance

Short leasehold improvements

Straight line over 15 years

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

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 profit and loss account 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.

 

Norfolk Precision Engineering Limited

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

2

Accounting policies (continued)

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 balance sheet as a finance lease obligation.

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

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 13 (2022 - 13).

 

Norfolk Precision Engineering Limited

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

4

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 August 2022

20,000

20,000

At 31 July 2023

20,000

20,000

Amortisation

At 1 August 2022

20,000

20,000

At 31 July 2023

20,000

20,000

Carrying amount

At 31 July 2023

-

-

 

Norfolk Precision Engineering Limited

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

5

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Other property, plant and equipment
 £

Total
£

Cost or valuation

At 1 August 2022

11,473

20,505

36,541

596,087

664,606

Additions

-

525

34,000

31,461

65,986

At 31 July 2023

11,473

21,030

70,541

627,548

730,592

Depreciation

At 1 August 2022

10,106

11,563

20,134

367,751

409,554

Charge for the year

202

1,420

12,602

34,977

49,201

At 31 July 2023

10,308

12,983

32,736

402,728

458,755

Carrying amount

At 31 July 2023

1,165

8,047

37,805

224,820

271,837

At 31 July 2022

1,367

8,942

16,407

228,336

255,052

Included within the net book value of land and buildings above is £1,165 (2022 - £1,367) in respect of short leasehold land and buildings.
 

6

Stocks

2023
£

2022
£

Raw materials and consumables

11,000

34,000

Work in progress

25,000

12,500

36,000

46,500

 

Norfolk Precision Engineering Limited

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

7

Debtors

Current

2023
£

2022
£

Trade debtors

210,655

241,855

Prepayments

749

456

Other debtors

1,225

400

 

212,629

242,711

8

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Bank loans and overdrafts

49,817

44,836

Trade creditors

 

76,793

120,263

Directors' loan accounts

34,584

50,286

Taxation and social security

 

76,049

63,407

Other creditors

 

7,741

4,739

 

244,984

283,531

Due after one year

 

Loans and borrowings

44,013

75,159


Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £39,817 (2022 - £34,836).

 

Norfolk Precision Engineering Limited

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

8

Creditors (continued)

Current loans and borrowings

2023
£

2022
£

Bank borrowings

10,000

10,000

HP and finance lease liabilities

39,817

34,836

49,817

44,836

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

44,013

75,159

Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £25,680 (2022 - £46,826).

Non-current loans and borrowings

2023
£

2022
£

Bank borrowings

18,333

28,333

HP and finance lease liabilities

25,680

46,826

44,013

75,159

 

Norfolk Precision Engineering Limited

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

9

Share capital

Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

Ordinary £1 shares of £1 each

4

4

4

4

       

10

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £39,195 (2022 - £44,875). The finanical commitment is a lease of equipment which runs until June 2028.