Company registration number SC145469 (Scotland)
MARTIN PRECISION LTD
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 DECEMBER 2023
MARTIN PRECISION LTD
CONTENTS
Page
Company information
1
Balance sheet
2
Notes to the financial statements
3 - 10
MARTIN PRECISION LTD
COMPANY INFORMATION
- 1 -
Directors
W G Martin
N Lawson
L Gourlay
A Caldwell
Secretary
L Gourlay
Company number
SC145469
Registered office
Block 2 East Faulds Road
Caldwellside Industrial Estate
Lanark
South Lanarkshire
United Kingdom
ML11 7SR
Auditor
Consilium Audit Limited
169 West George Street
Glasgow
Scotland
G2 2LB
Bankers
Royal Bank of Scotland
88 High Street
Lanark
Scotland
ML11 7ET
MARTIN PRECISION LTD
BALANCE SHEET
AS AT 30 DECEMBER 2023
30 December 2023
- 2 -
30 December 2023
31 December 2022
Notes
£
£
£
£
Fixed assets
Tangible assets
5
2,082,086
2,197,212
Current assets
Stocks
1,113,504
581,380
Debtors
6
343,618
793,772
Cash at bank and in hand
1,242,949
595,286
2,700,071
1,970,438
Creditors: amounts falling due within one year
7
(2,246,466)
(1,311,578)
Net current assets
453,605
658,860
Total assets less current liabilities
2,535,691
2,856,072
Creditors: amounts falling due after more than one year
8
(427,933)
(671,059)
Provisions for liabilities
9
(356,055)
(361,540)
Net assets
1,751,703
1,823,473
Capital and reserves
Called up share capital
11
125,024
59,024
Share premium account
212,749
83,549
Capital redemption reserve
562,526
562,526
Profit and loss reserves
851,404
1,118,374
Total equity
1,751,703
1,823,473
The notes on pages 3 to 10 form part of these financial statements.
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 27 August 2024 and are signed on its behalf by:
L Gourlay
Director
Company Registration No. SC145469
MARTIN PRECISION LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 DECEMBER 2023
- 3 -
1
Accounting policies
Company information
Martin Precision Ltd is a private company limited by shares incorporated in Scotland. The registered office is Block 2 East Faulds Road, Caldwellside Industrial Estate, Lanark, South Lanarkshire, United Kingdom, ML11 7SR. The company's registration number is SC145469.
1.1
Accounting convention
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.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Reporting period
The company prepares these financial statements for a 52 week period to 30 December 2023. The comparative figures are the 52 weeks to 31 December 2022.
1.4
Turnover
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must be met before turnover is recognised:
Sale of goods:
Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
the company has transferred the significant risks and rewards of ownership to the buyer;
the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of turnover can be measured reliably;
it is probable that the company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% or 33% straight line
Plant and equipment
7% or 10% straight line
Fixtures and fittings
20% or 25% straight line
MARTIN PRECISION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the profit and loss account.
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Assets under construction are not depreciated in the current year. These assets will be depreciated from the date they are brought into use.
1.6
Stocks
Stocks are stated at the lower of cost and net realisable value, after making due allowanced for obsolete and slow moving items. Cost includes all direct expenditure and an appropriate portion of variable and fixed overheads.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in the profit and loss account. Reversals of impairment losses are also recognised in the profit and loss account.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
MARTIN PRECISION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
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. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. 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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
MARTIN PRECISION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value, and are depreciated in accordance with the above depreciation policies.
Future instalments payable under such agreements, net of finance charges, are included within creditors. Rentals payable are apportioned between the capital element, which reduces the outstanding obligation included within creditors, and the finance element, which is charged to the profit and loss account on a straight line basis.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
1.15
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.
2
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
15,580
15,580
3
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2023
2022
Total
48
49
4
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
241,980
241,338
MARTIN PRECISION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 DECEMBER 2023
4
Directors' remuneration
(Continued)
- 7 -
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 3).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
88,350
86,463
Company pension contributions to defined contribution schemes
10,938
7,808
In the current period, £20,250 (2022: £15,636 ) was paid to a third party for providing the services of a director to the company.
5
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 January 2023
765,370
3,895,137
844,309
5,504,816
Additions
793
89,433
73,203
163,429
Disposals
(88,521)
(88,521)
At 30 December 2023
766,163
3,896,049
917,512
5,579,724
Depreciation and impairment
At 1 January 2023
386,266
2,343,119
578,219
3,307,604
Depreciation charged in the period
20,791
157,221
100,543
278,555
Eliminated in respect of disposals
(88,521)
(88,521)
At 30 December 2023
407,057
2,411,819
678,762
3,497,638
Carrying amount
At 30 December 2023
359,106
1,484,230
238,750
2,082,086
At 31 December 2022
379,104
1,552,018
266,090
2,197,212
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
248,067
540,221
Other debtors
95,551
253,551
343,618
793,772
MARTIN PRECISION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 DECEMBER 2023
- 8 -
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
86,465
102,751
Trade creditors
913,551
587,274
Taxation and social security
308,424
180,155
Other creditors
938,026
441,398
2,246,466
1,311,578
Secured creditors falling due within one year amounts to £271,131 (2022: £355,092).
The invoice discounting facility is secured with a floating charge.
Obligations under finance leases and hire purchase contracts are secured against those assets to which they relate.
8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans
144,464
230,793
Other creditors
283,469
440,266
427,933
671,059
Secured creditors falling due after more than one year amount to £344,493 (2022: £604,901).
The invoice discounting facility is secured with a floating charge.
Obligations under finance leases and hire purchase contracts are secured against those assets to which they relate.
9
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
10
356,055
361,540
10
Deferred taxation
The following are the major deferred tax liabilities recognised by the company and movements thereon:
2023
2022
Balances:
£
£
Accelerated capital allowances
356,055
361,540
MARTIN PRECISION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 DECEMBER 2023
10
Deferred taxation
(Continued)
- 9 -
2023
Movements in the period:
£
Liability at 1 January 2023
361,540
Credit to profit or loss
(5,485)
Liability at 30 December 2023
356,055
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
11
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
1,250,240 (2022: 590,240) Ordinary shares of 10p
125,024
59,024
There has been an issue of shares in the year totalling £66,000 which has generate a share premium of £129,200.
12
Audit report information
As the income statement 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:
Brian Thomson BA(Hons) CA
Statutory Auditor:
Consilium Audit Limited
13
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
£
£
83,398
84,817
14
Related party transactions
As at 30 December 2023, included within trade creditors is a balance of £1,875 (2022: £1,500) owed to IFT Corporate Services Limited. The total spend on this service amounted to £20,250 (2022: £15,636). This amount is in respect of the provision of services of a director.
MARTIN PRECISION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 DECEMBER 2023
- 10 -
15
Ultimate controlling party
During the period, a shareholding in the company was sold to an Employee Ownership Trust (EOT), Martin Precision Ownership Trust (EOT), representing the employees of the trading company, Martin Precision Limited. The Trustees of Martin Precision Ownership Trust (EOT) are now the ultimate controlling party.
Prior to this, the company was under the control of its shareholders, with no individual shareholder having a controlling interest in the company.
2023-12-302023-01-01false27 August 2024CCH SoftwareCCH Accounts Production 2024.200No description of principal activityThis audit opinion is unqualifiedW G MartinN LawsonA CaldwellA CaldwellL GourlayfalsefalseSC1454692023-01-012023-12-30SC145469bus:Director12023-01-012023-12-30SC145469bus:Director22023-01-012023-12-30SC145469bus:CompanySecretaryDirector12023-01-012023-12-30SC145469bus:Director32023-01-012023-12-30SC145469bus:CompanySecretary12023-01-012023-12-30SC145469bus:Director42023-01-012023-12-30SC145469bus:RegisteredOffice2023-01-012023-12-30SC145469bus:Agent12023-01-012023-12-30SC1454692023-12-30SC1454692022-12-31SC145469core:LandBuildingscore:OwnedOrFreeholdAssets2023-12-30SC145469core:PlantMachinery2023-12-30SC145469core:FurnitureFittings2023-12-30SC145469core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-31SC145469core:PlantMachinery2022-12-31SC145469core:FurnitureFittings2022-12-31SC145469core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-30SC145469core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-31SC145469core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-30SC145469core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-31SC145469core:CurrentFinancialInstruments2023-12-30SC145469core:CurrentFinancialInstruments2022-12-31SC145469core:Non-currentFinancialInstruments2023-12-30SC145469core:Non-currentFinancialInstruments2022-12-31SC145469core:ShareCapital2023-12-30SC145469core:ShareCapital2022-12-31SC145469core:SharePremium2023-12-30SC145469core:SharePremium2022-12-31SC145469core:CapitalRedemptionReserve2023-12-30SC145469core:CapitalRedemptionReserve2022-12-31SC145469core:RetainedEarningsAccumulatedLosses2023-12-30SC145469core:RetainedEarningsAccumulatedLosses2022-12-31SC145469core:LandBuildingscore:OwnedOrFreeholdAssets2023-01-012023-12-30SC145469core:PlantMachinery2023-01-012023-12-30SC145469core:FurnitureFittings2023-01-012023-12-30SC1454692022-01-022022-12-31SC145469core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-31SC145469core:PlantMachinery2022-12-31SC145469core:FurnitureFittings2022-12-31SC1454692022-12-31SC145469core:WithinOneYear2023-12-30SC145469core:WithinOneYear2022-12-31SC145469bus:PrivateLimitedCompanyLtd2023-01-012023-12-30SC145469bus:SmallCompaniesRegimeForAccounts2023-01-012023-12-30SC145469bus:FRS1022023-01-012023-12-30SC145469bus:Audited2023-01-012023-12-30SC145469bus:FullAccounts2023-01-012023-12-30xbrli:purexbrli:sharesiso4217:GBP