Aercomp Precision Engineering Limited 03474807 false 2023-01-01 2023-12-31 2023-12-31 The principal activity of the company is precision engineering Digita Accounts Production Advanced 6.30.9574.0 true true true 03474807 2023-01-01 2023-12-31 03474807 2023-12-31 03474807 bus:OrdinaryShareClass1 2023-12-31 03474807 bus:OrdinaryShareClass2 2023-12-31 03474807 bus:OrdinaryShareClass3 2023-12-31 03474807 bus:OrdinaryShareClass4 2023-12-31 03474807 bus:OrdinaryShareClass5 2023-12-31 03474807 core:FinanceLeases core:CurrentFinancialInstruments 2023-12-31 03474807 core:FinanceLeases core:Non-currentFinancialInstruments 2023-12-31 03474807 core:CurrentFinancialInstruments 2023-12-31 03474807 core:CurrentFinancialInstruments core:WithinOneYear 2023-12-31 03474807 core:Non-currentFinancialInstruments 2023-12-31 03474807 core:Non-currentFinancialInstruments core:AfterOneYear 2023-12-31 03474807 core:FurnitureFittings 2023-12-31 03474807 core:LandBuildings 2023-12-31 03474807 core:LandBuildings core:OwnedOrFreeholdAssets 2023-12-31 03474807 core:PlantMachinery 2023-12-31 03474807 1 2023-12-31 03474807 2 2023-12-31 03474807 3 2023-12-31 03474807 bus:SmallEntities 2023-01-01 2023-12-31 03474807 bus:AuditExemptWithAccountantsReport 2023-01-01 2023-12-31 03474807 bus:FilletedAccounts 2023-01-01 2023-12-31 03474807 bus:SmallCompaniesRegimeForAccounts 2023-01-01 2023-12-31 03474807 bus:RegisteredOffice 2023-01-01 2023-12-31 03474807 bus:Director1 2023-01-01 2023-12-31 03474807 bus:Director2 2023-01-01 2023-12-31 03474807 bus:Director5 2023-01-01 2023-12-31 03474807 bus:OrdinaryShareClass1 2023-01-01 2023-12-31 03474807 bus:OrdinaryShareClass2 2023-01-01 2023-12-31 03474807 bus:OrdinaryShareClass3 2023-01-01 2023-12-31 03474807 bus:OrdinaryShareClass4 2023-01-01 2023-12-31 03474807 bus:OrdinaryShareClass5 2023-01-01 2023-12-31 03474807 bus:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 03474807 core:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 03474807 core:RetainedEarningsAccumulatedLosses core:LandBuildings 2023-01-01 2023-12-31 03474807 core:RevaluationReserve 2023-01-01 2023-12-31 03474807 core:RevaluationReserve core:LandBuildings 2023-01-01 2023-12-31 03474807 core:FurnitureFittings 2023-01-01 2023-12-31 03474807 core:LandBuildings 2023-01-01 2023-12-31 03474807 core:LandBuildings core:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 03474807 core:PlantMachinery 2023-01-01 2023-12-31 03474807 core:Vehicles 2023-01-01 2023-12-31 03474807 core:KeyManagementPersonnel 2023-01-01 2023-12-31 03474807 core:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl 2023-01-01 2023-12-31 03474807 1 2023-01-01 2023-12-31 03474807 2 2023-01-01 2023-12-31 03474807 3 2023-01-01 2023-12-31 03474807 countries:England 2023-01-01 2023-12-31 03474807 2022-12-31 03474807 core:FurnitureFittings 2022-12-31 03474807 core:LandBuildings core:OwnedOrFreeholdAssets 2022-12-31 03474807 core:PlantMachinery 2022-12-31 03474807 2022-01-01 2022-12-31 03474807 2022-12-31 03474807 bus:OrdinaryShareClass1 2022-12-31 03474807 bus:OrdinaryShareClass2 2022-12-31 03474807 bus:OrdinaryShareClass3 2022-12-31 03474807 bus:OrdinaryShareClass4 2022-12-31 03474807 bus:OrdinaryShareClass5 2022-12-31 03474807 core:FinanceLeases core:CurrentFinancialInstruments 2022-12-31 03474807 core:FinanceLeases core:Non-currentFinancialInstruments 2022-12-31 03474807 core:CurrentFinancialInstruments 2022-12-31 03474807 core:CurrentFinancialInstruments core:WithinOneYear 2022-12-31 03474807 core:Non-currentFinancialInstruments 2022-12-31 03474807 core:Non-currentFinancialInstruments core:AfterOneYear 2022-12-31 03474807 core:FurnitureFittings 2022-12-31 03474807 core:LandBuildings 2022-12-31 03474807 core:LandBuildings core:OwnedOrFreeholdAssets 2022-12-31 03474807 core:PlantMachinery 2022-12-31 03474807 1 2022-12-31 03474807 2 2022-12-31 03474807 3 2022-12-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 03474807

Aercomp Precision Engineering Limited

Unaudited Filleted Financial Statements

for the Year Ended 31 December 2023

 

Aercomp Precision Engineering Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Financial Statements

4 to 12

 

Aercomp Precision Engineering Limited

Company Information

Directors

Mr J F Mulqueen

Mrs N Mulqueen

Mr G G Ball

Registered office

27 Factory Road
Upton
Poole
Dorset
BH16 5SL

Accountants

Elysium
Chartered Accountants
Unit A7 The Arena
9 Nimrod Way
Wimborne
Dorset
BH21 7UH

 

Aercomp Precision Engineering Limited

(Registration number: 03474807)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

5

966,421

1,008,091

Current assets

 

Stocks

6

126,582

226,655

Debtors

7

149,746

62,992

Cash at bank and in hand

 

215,402

88,536

 

491,730

378,183

Creditors: Amounts falling due within one year

8

(503,099)

(385,485)

Net current liabilities

 

(11,369)

(7,302)

Total assets less current liabilities

 

955,052

1,000,789

Creditors: Amounts falling due after more than one year

8

(299,250)

(450,400)

Provisions for liabilities

(75,395)

(139,236)

Net assets

 

580,407

411,153

Capital and reserves

 

Called up share capital

9

1,000

1,000

Revaluation reserve

414,305

416,280

Retained earnings

165,102

(6,127)

Shareholders' funds

 

580,407

411,153

 

Aercomp Precision Engineering Limited

(Registration number: 03474807)
Balance Sheet as at 31 December 2023

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 Profit and Loss Account.

Approved and authorised by the Board on 10 September 2024 and signed on its behalf by:
 

.........................................
Mr J F Mulqueen
Director

 

Aercomp Precision Engineering Limited

Notes to the 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.

The address of its registered office is:
27 Factory Road
Upton
Poole
Dorset
BH16 5SL
England

These financial statements were authorised for issue by the Board on 10 September 2024.

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.

 

Aercomp Precision Engineering Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Going concern

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

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.

Government grants

Grants of a revenue nature are recognised in income in the period the related costs are incurred and for which the grant is intended to compensate.

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, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used.

Tangible assets

With the exception of plant and machinery and freehold property, 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.

Plant and machinery and freehold property are stated in the balance sheet at their revalued amounts. Revalued amounts equate to the fair value of the asset at the date revaluation, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are carried out periodically so th at the carrying amounts of the asset does not materially differ from its fair value at the balance sheet date.

Transfers are made annually between the revaluation reserve and profit and loss reserves equivalent to the excess depreciation that has been charged in respect of the revalued assets.

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:

 

Aercomp Precision Engineering Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Asset class

Depreciation method and rate

Freehold property

2% on cost

Plant and machinery

8% on cost

Fixtures and fittings

20% on reducing balance

Motor vehicles

25% on reducing balance

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, 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.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

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.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

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.

 

Aercomp Precision Engineering Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

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.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

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 9 (2022 - 9).

4

Profit before tax

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

41,669

38,872

 

Aercomp Precision Engineering Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

5

Tangible assets

Land and buildings
£

Fixtures and fittings
£

Plant and machinery
£

Total
£

Cost or valuation

At 1 January 2023

690,000

18,750

343,744

1,052,494

At 31 December 2023

690,000

18,750

343,744

1,052,494

Depreciation

At 1 January 2023

-

16,903

27,500

44,403

Charge for the year

13,800

370

27,500

41,670

At 31 December 2023

13,800

17,273

55,000

86,073

Carrying amount

At 31 December 2023

676,200

1,477

288,744

966,421

At 31 December 2022

690,000

1,847

316,244

1,008,091

Revaluation

The fair value of the company's land and buildings was revalued on 3 November 2022 by an independent valuer. The name and qualification of the independent valuer are Hannah Bennett BA(Hons) MSc MRICS.
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £408,072 (2022 - £419,239).

The fair value of the company's plant and machinery was revalued on 31 December 2021. An independent valuer was not invloved.
Had this class of asset not been measured on a historical cost basis, the carrying amount would have been £nil (2022 - £nil).
 

6

Stocks

2023
£

2022
£

Other inventories

126,582

226,655

7

Debtors

Current

2023
£

2022
£

Trade debtors

149,746

60,848

Prepayments

-

2,144

 

149,746

62,992

 

Aercomp Precision Engineering Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

8

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

11

233,243

207,772

Trade creditors

 

131,139

59,363

Taxation and social security

 

131,924

110,467

Accruals and deferred income

 

2,849

4,769

Other creditors

 

3,944

3,114

 

503,099

385,485

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

11

299,250

450,400

 

Aercomp Precision Engineering Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

9

Share capital

Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

Ordinary £1 "A" of £1 each

650

650

650

650

Ordinary £1 "B" of £1 each

50

50

50

50

Ordinary £1 "C" of £1 each

100

100

100

100

Ordinary £1 "D" of £1 each

100

100

100

100

Ordinary £1 "E" of £1 each

100

100

100

100

1,000

1,000

1,000

1,000

10

Reserves

The changes to each component of equity resulting from items of other comprehensive income for the current year were as follows:

Revaluation reserve
£

Retained earnings
£

Total
£

Surplus/deficit on property, plant and equipment revaluation

(1,975)

-

(1,975)

Other comprehensive income - depreciation

-

2,633

2,633

(1,975)

2,633

658

 

Aercomp Precision Engineering Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

11

Loans and borrowings

Non-current loans and borrowings

2023
£

2022
£

Bank borrowings

299,250

441,160

Finance lease liabilities

-

9,240

299,250

450,400

Current loans and borrowings

2023
£

2022
£

Bank borrowings

147,702

147,703

Finance lease liabilities

9,240

17,060

Other borrowings

76,301

43,009

233,243

207,772

Bank borrowings

Bank loan 1 is denominated in Pounds with a nominal interest rate of 5.656%, and the final instalment is due on 31 August 2028. The carrying amount at year end is £83,193 (2022 - £95,819).

Lloyds bank hold a charge over the freehold Property at 27 Factory Road, Upton, Poole, Dorset BH16 5SL

Bank loan 2 is denominated in Pounds with a nominal interest rate of 6.69%, and the final instalment is due on 31 August 2028. The carrying amount at year end is £60,957 (2022 - £73,043).

Lloyds Bank Commercial Finance Limited hold a debenture dated 31 July 2015 over the assets of the company

Bank Loan 3 is denominated in Pounds with a nominal interest rate of 6.74%, and the final instalment is due on 24 June 2026. The carrying amount at year end is £300,000 (2022 - £420,000).

Other borrowings

Hire Purchase is denominated in Pounds with a nominal interest rate of 5.4%, and the final instalment is due on 7 September 2024. The carrying amount at year end is £9,240 (2022 - £23,100).

The hire purchase agreement is secured over specific assets.

 

Aercomp Precision Engineering Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

12

Related party transactions

Key management personnel

One of the directors is also a director of a company that supplies accounting services to the company.

Summary of transactions with key management

During the year, the company paid £32,834 for these services (2022 - £28,695).
 These were arms length transactions.
 

Transactions with directors

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

82,689

43,431

Contributions paid to money purchase schemes

7,237

980

89,926

44,411