Brit Manufacturing Solutions Ltd |
Notes to the Accounts |
for the year ended 31 December 2023 |
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Intangible fixed assets |
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Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Leasehold land and buildings |
10 years |
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Plant and Machinery |
20% Reducing balance |
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Motor vehicles |
20% Reducing balance |
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Investments |
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Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account. |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that 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, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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Government Grants |
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Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grants relates. The deferred element of the grants in included in creditors as deferred income. |
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Grants of a revenue nature are recognised in the statement of Comprehensive income in the same period as the related expenditure. |
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Revalution of tangible fixed assets |
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Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsquent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date. |
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Fair values are determined from market based evidence normally undertaken by professionally qualified valuers. |
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Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss. |
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Research and development |
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In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on the research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsquently amortised on a straight line basis over their useful economic lives, which range from 3 to 6 years. |
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If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditiure is treated as if it were all incurred in the research phase only. |
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2 |
Employees |
2023 |
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2022 |
Number |
Number |
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Average number of persons employed by the company |
18 |
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20 |
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3 |
Intangible fixed assets |
Computer software |
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Leasehold improvements |
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Total |
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Goodwill: |
£ |
£ |
£ |
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Cost |
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At 1 January 2023 |
63,384 |
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94,896 |
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158,280 |
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Additions |
3,925 |
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66,432 |
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70,357 |
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Disposals |
- |
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- |
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- |
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At 31 December 2023 |
67,309 |
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161,328 |
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228,637 |
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Amortisation |
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At 1 January 2023 |
(49,097) |
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(9,490) |
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(58,587) |
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Provided during the year |
(7,483) |
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(16,133) |
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(23,616) |
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On disposals |
- |
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- |
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- |
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At 31 December 2023 |
(56,580) |
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(25,623) |
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(82,203) |
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Net book value |
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At 31 December 2023 |
10,729 |
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135,705 |
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146,434 |
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At 31 December 2022 |
14,287 |
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85,406 |
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99,693 |
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Computer software is being written off in equal annual instalments over it's estimated economic life of 3 years. Leasehold improvements is being written off in equal annual instalments over its estimated economic life of 10 years. |
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4 |
Tangible fixed assets |
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Land and buildings |
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Plant and machinery etc |
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Motor vehicles |
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Total |
£ |
£ |
£ |
£ |
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Cost |
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At 1 January 2023 |
1,703,090 |
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410,943 |
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61,995 |
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2,176,028 |
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Additions |
- |
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189,645 |
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- |
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189,645 |
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Disposals |
(1,450,000) |
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- |
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- |
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(1,450,000) |
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At 31 December 2023 |
253,090 |
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600,588 |
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61,995 |
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915,673 |
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Depreciation |
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At 1 January 2023 |
- |
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154,490 |
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52,649 |
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207,139 |
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Charge for the year |
- |
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29,399 |
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1,869 |
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31,268 |
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At 31 December 2023 |
- |
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183,889 |
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54,518 |
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238,407 |
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Net book value |
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At 31 December 2023 |
253,090 |
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416,699 |
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7,477 |
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677,266 |
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At 31 December 2022 |
1,703,090 |
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256,453 |
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9,346 |
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1,968,889 |
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5 |
Investments |
Investments in |
subsidiary |
undertakings |
£ |
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Cost |
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At 1 January 2023 |
1,051,711 |
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At 31 December 2023 |
1,051,711 |
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6 |
Debtors |
2023 |
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2022 |
£ |
£ |
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Trade debtors |
99,905 |
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52,529 |
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Prepayments and accrued income |
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183,323 |
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163,543 |
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Other taxes and social security |
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20,985 |
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157,405 |
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Other debtors |
6,353 |
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10,170 |
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310,566 |
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383,647 |
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7 |
Creditors: amounts falling due within one year |
2023 |
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2022 |
£ |
£ |
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Bank loans and overdrafts |
84,732 |
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124,190 |
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Obligations under finance lease and hire purchase contracts |
42,007 |
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30,600 |
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Trade creditors |
99,308 |
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228,175 |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
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106,400 |
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67,000 |
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Taxation and social security costs |
63,525 |
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21,531 |
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Accruals and deferred income |
30,064 |
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20,997 |
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Directors loan account |
379,630 |
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213,945 |
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Other creditors |
22,819 |
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88,672 |
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828,485 |
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795,110 |
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8 |
Creditors: amounts falling due after one year |
2023 |
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2022 |
£ |
£ |
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Bank loans |
674,248 |
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1,548,188 |
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Obligations under finance lease and hire purchase contracts |
76,498 |
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63,750 |
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750,746 |
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1,611,938 |
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9 |
Revaluation reserve |
2023 |
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2022 |
£ |
£ |
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At 1 January 2023 |
766,298 |
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616,298 |
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(Loss)/gain on revaluation of land and buildings |
(766,298) |
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150,000 |
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At 31 December 2023 |
- |
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766,298 |
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10 |
Other information |
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Brit Manufacturing Solutions Ltd is a private company limited by shares and incorporated in England. Its registered office is: |
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Barton Hill Way |
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Torquay |
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Devon |
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TQ2 8JG |
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11 |
Transactions with directors |
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At the previous year end the director was owed £213,945. At the year end date this has increased to £419,630. The loan is interest free and there is no set terms of repayment. |