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Registration number: 04874814

Racing Green Engineering Limited

Unaudited Filleted Financial Statements

for the Year Ended 31 December 2023

 

Racing Green Engineering Limited

Contents

Statement of Financial Position

1 to 2

Notes to the Unaudited Financial Statements

3 to 10

 

Racing Green Engineering Limited

(Registration number: 04874814)
Statement of Financial Position as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

4

19,620

22,585

Tangible assets

5

64,689

75,932

 

84,309

98,517

Current assets

 

Stocks

1,911,137

1,790,841

Debtors

6

826,604

943,520

Cash at bank and in hand

 

86

181

 

2,737,827

2,734,542

Creditors: Amounts falling due within one year

7

(964,536)

(1,029,883)

Net current assets

 

1,773,291

1,704,659

Total assets less current liabilities

 

1,857,600

1,803,176

Creditors: Amounts falling due after more than one year

7

(14,167)

(24,167)

Provisions for liabilities

(13,768)

(15,133)

Net assets

 

1,829,665

1,763,876

Capital and reserves

 

Called up share capital

20,000

20,000

Profit and loss account

1,809,665

1,743,876

Shareholders' funds

 

1,829,665

1,763,876

For the financial year ending 31 December 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 Statement of Comprehensive Income.

 

Racing Green Engineering Limited

(Registration number: 04874814)
Statement of Financial Position as at 31 December 2023 (continued)

Approved and authorised by the Board on 30 August 2024 and signed on its behalf by:
 


P L Edwards
Director

 

Racing Green Engineering Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 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:
Ty Nant
16a Cwmfelin Road
Llanelli
Dyfed
SA14 9LR
Wales

Principal activity

The principal activity of the company is that of renovating classic cars.

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 prepared in sterling which is the functional currency of the entity.

Going concern

The financial statements have been prepared on a going concern basis.

 

Racing Green Engineering Limited

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

2

Accounting policies (continued)

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome.

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 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.

For the recognition of revenue from construction contracts see the separate accounting policy below.

Contract revenue recognition

Where the outcome of construction contracts can be reliably estimated, contract revenue and contract costs are recognised by reference to the stage of completion of the contract activity as at the period end.

When it is probable that total contract costs will exceed total contract revenue, the expected loss is expensed immediately, with a corresponding provision for an onerous contract being recognised.

The entity uses the percentage of completion method to determine the amounts to be recognised in the period. The stage of completion is measured by reference to the contract costs incurred up to the end of the reporting period as a percentage of total estimated costs for each contract.

The entity recognises the gross amount due from customers for contract work as an asset within other debtors. The entity recognises the gross amount due to customers for contract work as a liability within other creditors.

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.

 

Racing Green Engineering Limited

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

2

Accounting policies (continued)

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.

Tangible assets

Tangible assets are stated in the statement of financial position 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

Leasehold improvements

10% straight line

Plant and machinery

25% reducing balance

Motor vehicles

25% reducing balance

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Development costs

Research expenditure is written off in the period in which it is incurred.

Development expenditure incurred on clearly defined projects whose outcome can be assessed with reasonable certainty is capitalised as an intangible asset.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Development expenditure

33% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. In the statement of financial position, bank overdrafts are shown within borrowing or current liabilities

 

Racing Green Engineering Limited

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

2

Accounting policies (continued)

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Costs include all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition. .

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

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 statement of comprehensive income 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.

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.

Financial instruments

Recognition and measurement
A financial asset or a financial liability is recognised only when the company becomes party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 19 (2022 - 18).

 

Racing Green Engineering Limited

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

4

Intangible assets

Other intangible assets
 £

Total
£

Cost or valuation

At 1 January 2023

297,359

297,359

Additions acquired separately

11,100

11,100

At 31 December 2023

308,459

308,459

Amortisation

At 1 January 2023

274,774

274,774

Amortisation charge

14,065

14,065

At 31 December 2023

288,839

288,839

Carrying amount

At 31 December 2023

19,620

19,620

At 31 December 2022

22,585

22,585

5

Tangible assets

Leasehold improvements
£

Plant and machinery
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2023

232,020

375,939

51,725

659,684

Additions

-

2,951

11,500

14,451

Disposals

-

-

(6,050)

(6,050)

At 31 December 2023

232,020

378,890

57,175

668,085

Depreciation

At 1 January 2023

210,827

343,132

29,793

583,752

Charge for the year

7,688

8,941

8,123

24,752

Eliminated on disposal

-

-

(5,108)

(5,108)

At 31 December 2023

218,515

352,073

32,808

603,396

Carrying amount

At 31 December 2023

13,505

26,817

24,367

64,689

At 31 December 2022

21,193

32,807

21,932

75,932

 

Racing Green Engineering Limited

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

6

Debtors

2023
£

2022
£

Trade debtors

10,880

40,437

Other debtors

263,612

10,212

Prepayments

47,062

43,540

Gross amount due from customers for contract work

505,050

849,331

826,604

943,520

 

Racing Green Engineering Limited

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

7

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

9

249,546

289,558

Trade creditors

 

244,780

262,062

Taxation and social security

 

91,898

88,776

Accruals and deferred income

 

68,994

76,259

Other creditors

 

309,318

313,228

 

964,536

1,029,883


Creditors include bank loans and overdrafts of £249,546 (2022 - £289,558) which are secured by a fixed and floating charge on the assets of the Company.

Included in other creditors are amounts of £35,796 (2022: £55,599) due to customers on contract work.

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

9

14,167

24,167


Creditors include bank loans and overdrafts of £14,167 (2022 - £24,167) which are secured by a fixed and floating charge on the assets of the Company.

8

Reserves

Profit and loss account:

This reserve records retained earnings and accumulated losses.

 

Racing Green Engineering Limited

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

9

Loans and borrowings

Non-current loans and borrowings

2023
£

2022
£

Bank borrowings

14,167

24,167

Current loans and borrowings

2023
£

2022
£

Bank borrowings

10,000

10,000

Bank overdrafts

239,546

279,558

249,546

289,558

10

Related party transactions

Summary of transactions with other related parties



 Creditors include £272,420 (2022: £251,288) due to the directors. The balance is treated as repayable on demand. No interest is charged to the company.

Debtors include £253,398 due from Ty-Glas Properties Limited, a company controlled by the directors.