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REGISTERED NUMBER: 14084479 (England and Wales)












AUDITED FINANCIAL STATEMENTS

FOR THE PERIOD 1 JUNE 2023 TO 31 OCTOBER 2023

FOR

SHIELD MANUFACTURING TECHNOLOGIES
LIMITED

SHIELD MANUFACTURING TECHNOLOGIES
LIMITED (REGISTERED NUMBER: 14084479)

CONTENTS OF THE FINANCIAL STATEMENTS
for the period 1 June 2023 to 31 October 2023










Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


SHIELD MANUFACTURING TECHNOLOGIES
LIMITED

COMPANY INFORMATION
for the period 1 June 2023 to 31 October 2023







DIRECTORS: J Cooper
C R F Shield
C J Elworthy
M A Hobday





REGISTERED OFFICE: First Floor
One Colton Square
Leicester
Leicestershire
LE1 1QH





REGISTERED NUMBER: 14084479 (England and Wales)





AUDITORS: Magma Audit LLP (part of the Dains Group)
Chartered Accountants
Statutory Auditor
Unit 2, Charnwood Edge Business Park
Syston Road
Leicestershire
LE7 4UZ

SHIELD MANUFACTURING TECHNOLOGIES
LIMITED (REGISTERED NUMBER: 14084479)

BALANCE SHEET
31 October 2023

2023 2023
Notes £    £   
FIXED ASSETS
Intangible assets 4 875,000 916,667
Tangible assets 5 1,227,610 1,237,564
2,102,610 2,154,231

CURRENT ASSETS
Stocks 716,318 711,963
Debtors 6 371,167 735,941
Cash at bank 20,886 14,888
1,108,371 1,462,792
CREDITORS
Amounts falling due within one year 7 (1,096,997 ) (485,808 )
NET CURRENT ASSETS 11,374 976,984
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,113,984

3,131,215

CAPITAL AND RESERVES
Called up share capital 4,975,595 4,975,595
Retained earnings (2,861,611 ) (1,844,380 )
2,113,984 3,131,215

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 30 July 2024 and were signed on its behalf by:





C R F Shield - Director


SHIELD MANUFACTURING TECHNOLOGIES
LIMITED (REGISTERED NUMBER: 14084479)

NOTES TO THE FINANCIAL STATEMENTS
for the period 1 June 2023 to 31 October 2023


1. STATUTORY INFORMATION

Shield Manufacturing Technologies Limited is a private limited company, limited by shares, registered in England and Wales. Its registered office address is First Floor, One Colton Square, Leicester, Leicestershire, LE1 1QH and the registered number is 14084479.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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 £.

Going concern
The financial statements have been prepared on a going concern basis. This assumption is reliant upon the continued financial support from the director, C R F Shield. They have ensured that they will support Shield Manufacturing Technologies Ltd financially for a period of at least 1 year.

Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts and is recognised when goods are despatched.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2022, is being amortised evenly over its estimated useful life of ten years.

Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery- 15% straight line
Computer equipment- 25% straight line

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is 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.

SHIELD MANUFACTURING TECHNOLOGIES
LIMITED (REGISTERED NUMBER: 14084479)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the period 1 June 2023 to 31 October 2023


2. ACCOUNTING POLICIES - continued

Financial instruments
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Taxation
The tax expense for the year comprises current and deferred tax.

Tax is recognised in profit or loss except that a change attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:
- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Operating leases
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Debtors
Basic financial assets, including trade and other debtors, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents
Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors
Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the period was 20 (2023 - 15 ) .

SHIELD MANUFACTURING TECHNOLOGIES
LIMITED (REGISTERED NUMBER: 14084479)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the period 1 June 2023 to 31 October 2023


4. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 June 2023
and 31 October 2023 1,000,000
AMORTISATION
At 1 June 2023 83,333
Charge for period 41,667
At 31 October 2023 125,000
NET BOOK VALUE
At 31 October 2023 875,000
At 31 May 2023 916,667

5. TANGIBLE FIXED ASSETS
Plant and Computer
machinery equipment Totals
£    £    £   
COST
At 1 June 2023 1,348,071 1,999 1,350,070
Additions 74,958 - 74,958
At 31 October 2023 1,423,029 1,999 1,425,028
DEPRECIATION
At 1 June 2023 112,339 167 112,506
Charge for period 84,704 208 84,912
At 31 October 2023 197,043 375 197,418
NET BOOK VALUE
At 31 October 2023 1,225,986 1,624 1,227,610
At 31 May 2023 1,235,732 1,832 1,237,564

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2023
£    £   
Trade debtors 14,902 103,615
Amounts owed by group undertakings 161,208 579,745
Other debtors 57,200 23,200
VAT 132,523 27,027
Prepayments and accrued income 5,334 2,354
371,167 735,941

SHIELD MANUFACTURING TECHNOLOGIES
LIMITED (REGISTERED NUMBER: 14084479)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the period 1 June 2023 to 31 October 2023


7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2023
£    £   
Hire purchase contracts 252,021 430,091
Trade creditors 322,836 33,867
Amounts owed to group undertakings 475,937 1,326
Social security and other taxes 22,195 16,273
Other creditors - 169
Accruals and deferred income 24,008 4,082
1,096,997 485,808

8. SECURED DEBTS

The following secured debts are included within creditors:

2023 2023
£    £   
Hire purchase contracts 252,021 430,091

9. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was qualified on the following basis:

Basis for qualified opinion
We were unable to satisfy ourselves concerning the inventory quantities held, cut-off, and valuation throughout the period and at the 31 October 2023, which are included in the balance sheet at £716,318, by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary.

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs UK)) ad applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Luke Turner FCA FCCA (Senior Statutory Auditor)
for and on behalf of Magma Audit LLP (part of the Dains Group)

10. RELATED PARTY DISCLOSURES

During the year sales of £373,181 (2023 - £609,440) were made to Lontra Limited a company in which C R Shield holds an investment in. At the year end £66,266 (2023 - £26,084) was due from Lontra Limited. A total impairment of £596,390 has been made against the Lontra Limited trade debtor balance.

11. POST BALANCE SHEET EVENTS

On the 4th December 2023 Lontra Limited, a key customer of Shield Manufacturing Technologies Limited filed for administration. Shield Manufacturing Technologies has subsequently purchased assets from Lontra Limited and will continue their trade through Shield Manufacturing Technologies Limited.