IRIS Accounts Production v24.1.4.33 SC039355 Board of Directors 1.1.23 31.12.23 31.12.23 the manufacture of precision aerospace components in medium volumes. true false true true false false true false Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWhSC0393552022-12-31SC0393552023-12-31SC0393552023-01-012023-12-31SC0393552021-12-31SC0393552022-01-012022-12-31SC0393552022-12-31SC039355ns15:Scotland2023-01-012023-12-31SC039355ns14:PoundSterling2023-01-012023-12-31SC039355ns10:Director12023-01-012023-12-31SC039355ns10:PrivateLimitedCompanyLtd2023-01-012023-12-31SC039355ns10:FRS1022023-01-012023-12-31SC039355ns10:Audited2023-01-012023-12-31SC039355ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2023-01-012023-12-31SC039355ns10:LargeMedium-sizedCompaniesRegimeForAccounts2023-01-012023-12-31SC039355ns10:FullAccounts2023-01-012023-12-31SC039355ns10:OrdinaryShareClass12023-01-012023-12-31SC039355ns10:Director22023-01-012023-12-31SC039355ns10:Director32023-01-012023-12-31SC039355ns10:CompanySecretary12023-01-012023-12-31SC039355ns10:RegisteredOffice2023-01-012023-12-31SC039355ns5:CurrentFinancialInstruments2023-12-31SC039355ns5:CurrentFinancialInstruments2022-12-31SC039355ns5:Non-currentFinancialInstruments2023-12-31SC039355ns5:Non-currentFinancialInstruments2022-12-31SC039355ns5:ShareCapital2023-12-31SC039355ns5:ShareCapital2022-12-31SC039355ns5:RetainedEarningsAccumulatedLosses2023-12-31SC039355ns5:RetainedEarningsAccumulatedLosses2022-12-31SC039355ns5:ShareCapital2021-12-31SC039355ns5:RetainedEarningsAccumulatedLosses2021-12-31SC039355ns5:RetainedEarningsAccumulatedLosses2022-01-012022-12-31SC039355ns5:RetainedEarningsAccumulatedLosses2023-01-012023-12-31SC039355ns5:OwnedOrFreeholdAssetsns5:LandBuildings2023-01-012023-12-31SC039355ns5:LeaseholdImprovements2023-01-012023-12-31SC039355ns5:PlantMachinery2023-01-012023-12-31SC039355ns5:FurnitureFittings2023-01-012023-12-31SC039355ns10:HighestPaidDirector2023-01-012023-12-31SC039355ns10:HighestPaidDirector2022-01-012022-12-31SC039355ns5:PlantEquipmentOtherAssetsUnderOperatingLeases2023-01-012023-12-31SC039355ns5:PlantEquipmentOtherAssetsUnderOperatingLeases2022-01-012022-12-31SC039355ns5:OwnedAssets2023-01-012023-12-31SC039355ns5:OwnedAssets2022-01-012022-12-31SC039355ns5:HirePurchaseContracts2023-01-012023-12-31SC039355ns5:HirePurchaseContracts2022-01-012022-12-31SC039355ns5:FinanceLeases2023-01-012023-12-31SC039355ns5:FinanceLeases2022-01-012022-12-31SC039355ns5:LandBuildings2022-12-31SC039355ns5:LeaseholdImprovements2022-12-31SC039355ns5:PlantMachinery2022-12-31SC039355ns5:FurnitureFittings2022-12-31SC039355ns5:LandBuildings2023-01-012023-12-31SC039355ns5:LandBuildings2023-12-31SC039355ns5:LeaseholdImprovements2023-12-31SC039355ns5:PlantMachinery2023-12-31SC039355ns5:FurnitureFittings2023-12-31SC039355ns5:LandBuildings2022-12-31SC039355ns5:LeaseholdImprovements2022-12-31SC039355ns5:PlantMachinery2022-12-31SC039355ns5:FurnitureFittings2022-12-31SC039355ns5:LeasedAssetsHeldAsLessee2023-01-012023-12-31SC039355ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-12-31SC039355ns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-12-31SC039355ns5:HirePurchaseContractsns5:WithinOneYear2023-12-31SC039355ns5:HirePurchaseContractsns5:WithinOneYear2022-12-31SC039355ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2023-12-31SC039355ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2022-12-31SC039355ns5:HirePurchaseContracts2023-12-31SC039355ns5:HirePurchaseContracts2022-12-31SC039355ns5:HirePurchaseContractsns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-12-31SC039355ns5:HirePurchaseContractsns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-12-31SC039355ns10:OrdinaryShareClass12023-12-31SC039355ns5:RetainedEarningsAccumulatedLosses2022-12-31
REGISTERED NUMBER: SC039355 (Scotland)












Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31 December 2023

for

Castle Precision Engineering
(Glasgow) Limited

Castle Precision Engineering
(Glasgow) Limited (Registered number: SC039355)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Income Statement 7

Other Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 13


Castle Precision Engineering
(Glasgow) Limited

Company Information
for the Year Ended 31 December 2023







DIRECTORS: Mrs R Tiefenbrun
Y L Tiefenbrun
Miss R E Tiefenbrun





SECRETARY: J Forrest





REGISTERED OFFICE: 241 Drakemire Drive
Castlemilk
Glasgow
G45 9SZ





REGISTERED NUMBER: SC039355 (Scotland)





AUDITORS: O'Haras Accountants Limited
Radleigh House
1 Golf Road
Clarkston
Glasgow
G76 7HU

Castle Precision Engineering
(Glasgow) Limited (Registered number: SC039355)

Strategic Report
for the Year Ended 31 December 2023

The directors present their strategic report for the year ended 31 December 2023.

REVIEW OF BUSINESS
In the twelve months to 31 December 2023, the company experienced improving trading conditions driven by returning demand for its core aerospace activities.

With revenues of £23.9m in FY2023, the company delivered meaningful top line growth on the previous full year report, however the net loss position of £719k still reflects the overall challenging return journey for the supply chain in this period and the impacts of inflationary pressures.

The company's core operating area in civil widebody saw engine flying hours recover to circa 80-85% of pre-pandemic levels (average) resulting in rising demands for manufactured components; however servicing this would be significantly impacted by availability of critical forgings and continued high inflation in energy and payroll costs.

Other business segments the company delivers to, including defence & medical also saw growth in this period, with less disruption.

Overall, supply side problems limiting revenue delivery, coupled with inflationary cost challenges (including continued high energy costs, process consumables and wage inflation) vs legacy fixed price contracts would result in FY2023 finishing in the red but starting to rebound from pandemic lows with net losses narrowed to 3% of turnover.

A return to pre-pandemic trading levels is expected in 2024/2025 in line with the broader aviation market and supported by uplift in other business segments.

ON BEHALF OF THE BOARD:





Y L Tiefenbrun - Director


22 September 2024

Castle Precision Engineering
(Glasgow) Limited (Registered number: SC039355)

Report of the Directors
for the Year Ended 31 December 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

Mrs R Tiefenbrun
Y L Tiefenbrun
Miss R E Tiefenbrun

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, O'Haras Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Y L Tiefenbrun - Director


22 September 2024

Report of the Independent Auditors to the Members of
Castle Precision Engineering
(Glasgow) Limited

Opinion
We have audited the financial statements of Castle Precision Engineering (Glasgow) Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and 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 opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Castle Precision Engineering
(Glasgow) Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We made enquiries of management as to whether there were any known or suspected instances of non compliance with laws and regulations.

We gained an understanding of management's internal controls designed to prevent and detect irregularities in their day-to-day operations.

We considered how fraud might occur in this company and designed our tests accordingly.

As in all audits, we also addressed the risk of management override of internal controls, including reviewing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
Castle Precision Engineering
(Glasgow) Limited


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




John O'Hara CA (Senior Statutory Auditor)
for and on behalf of O'Haras Accountants Limited
Radleigh House
1 Golf Road
Clarkston
Glasgow
G76 7HU

22 September 2024

Castle Precision Engineering
(Glasgow) Limited (Registered number: SC039355)

Income Statement
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

REVENUE 23,973,154 19,117,593

Cost of sales 18,228,523 14,137,472
GROSS PROFIT 5,744,631 4,980,121

Administrative expenses 6,496,770 5,858,480
(752,139 ) (878,359 )

Other operating income 75,392 31,967
OPERATING LOSS 4 (676,747 ) (846,392 )


Interest payable and similar expenses 5 43,169 69,293
LOSS BEFORE TAXATION (719,916 ) (915,685 )

Tax on loss 6 - -
LOSS FOR THE FINANCIAL YEAR (719,916 ) (915,685 )

Castle Precision Engineering
(Glasgow) Limited (Registered number: SC039355)

Other Comprehensive Income
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

LOSS FOR THE YEAR (719,916 ) (915,685 )


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(719,916

)

(915,685

)

Castle Precision Engineering
(Glasgow) Limited (Registered number: SC039355)

Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Property, plant and equipment 7 6,529,987 6,089,338

CURRENT ASSETS
Inventories 8 6,391,805 4,671,176
Debtors 9 1,857,403 995,529
Cash at bank and in hand 1,034,289 4,822,239
9,283,497 10,488,944
CREDITORS
Amounts falling due within one year 10 5,624,861 5,710,629
NET CURRENT ASSETS 3,658,636 4,778,315
TOTAL ASSETS LESS CURRENT
LIABILITIES

10,188,623

10,867,653

CREDITORS
Amounts falling due after more than one
year

11

622,230

581,344
NET ASSETS 9,566,393 10,286,309

CAPITAL AND RESERVES
Called up share capital 14 3,000 3,000
Retained earnings 15 9,563,393 10,283,309
SHAREHOLDERS' FUNDS 9,566,393 10,286,309

The financial statements were approved by the Board of Directors and authorised for issue on 22 September 2024 and were signed on its behalf by:





Y L Tiefenbrun - Director


Castle Precision Engineering
(Glasgow) Limited (Registered number: SC039355)

Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 3,000 11,198,994 11,201,994

Changes in equity
Total comprehensive income - (915,685 ) (915,685 )
Balance at 31 December 2022 3,000 10,283,309 10,286,309

Changes in equity
Total comprehensive income - (719,916 ) (719,916 )
Balance at 31 December 2023 3,000 9,563,393 9,566,393

Castle Precision Engineering
(Glasgow) Limited (Registered number: SC039355)

Cash Flow Statement
for the Year Ended 31 December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (2,786,504 ) 2,458,826
Interest paid (10,668 ) (26,727 )
Interest element of hire purchase payments
paid

(32,501

)

(42,566

)
Net cash from operating activities (2,829,673 ) 2,389,533

Cash flows from investing activities
Purchase of tangible fixed assets (1,217,907 ) (289,202 )
Sale of tangible fixed assets - 30,436
Net cash from investing activities (1,217,907 ) (258,766 )

Cash flows from financing activities
Loan repayments in year - (1,596,535 )
Capital movement in the year (390,370 ) (410,987 )
Amount introduced by directors 650,000 -
Net cash from financing activities 259,630 (2,007,522 )

(Decrease)/increase in cash and cash equivalents (3,787,950 ) 123,245
Cash and cash equivalents at beginning of
year

2

4,822,239

4,698,994

Cash and cash equivalents at end of year 2 1,034,289 4,822,239

Castle Precision Engineering
(Glasgow) Limited (Registered number: SC039355)

Notes to the Cash Flow Statement
for the Year Ended 31 December 2023

1. RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Loss before taxation (719,916 ) (915,685 )
Depreciation charges 777,258 748,221
Profit on disposal of fixed assets - (30,436 )
Finance costs 43,169 69,293
100,511 (128,607 )
Increase in inventories (1,720,629 ) (559,087 )
(Increase)/decrease in trade and other debtors (861,874 ) 870,361
(Decrease)/increase in trade and other creditors (304,512 ) 2,276,159
Cash generated from operations (2,786,504 ) 2,458,826

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 1,034,289 4,822,239
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 4,822,239 4,698,994


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 4,822,239 (3,787,950 ) 1,034,289
4,822,239 (3,787,950 ) 1,034,289
Debt
Finance leases (789,577 ) 390,370 (399,207 )
(789,577 ) 390,370 (399,207 )
Total 4,032,662 (3,397,580 ) 635,082

Castle Precision Engineering
(Glasgow) Limited (Registered number: SC039355)

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

1. STATUTORY INFORMATION

Castle Precision Engineering (Glasgow) Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern
The directors are satisfied that the Company will have access to sufficient funds to ensure that all liabilities will be met as they fall due over a period of at least 12 months from the approval date of these financial statements. Consequently, the directors consider it appropriate to prepare the financial statements on a going concern basis.

Revenue
Revenue is shown exclusive of VAT and is generated from the provision of engineering services. Revenue is recognised when goods are dispatched or made available for collection.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Freehold property - 2% on cost
Improvements to property - 2% on cost
Plant and machinery - 10% on cost
Office and computer equipment - 30% on reducing balance

Work in progress
Work in Progress is stated at the lower of cost and net realisable value. For partially shipped and invoiced orders costs are apportioned based on expected/ known gross profit percentages.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Castle Precision Engineering
(Glasgow) Limited (Registered number: SC039355)

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

2. ACCOUNTING POLICIES - continued

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
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Impairment of fixed assets
At each balance sheet date, the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.


Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 4,459,047 3,971,181
Social security costs 458,723 439,099
Other pension costs 244,918 211,155
5,162,688 4,621,435

The average number of employees during the year was as follows:
2023 2022

Management & administration 57 52
Manufacturing 50 43
107 95

2023 2022
£    £   
Directors' remuneration 423,806 462,630
Directors' pension contributions to money purchase schemes 20,623 20,623

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

Castle Precision Engineering
(Glasgow) Limited (Registered number: SC039355)

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

3. EMPLOYEES AND DIRECTORS - continued

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 207,357 162,099
Pension contributions to money purchase schemes 11,747 -

4. OPERATING LOSS

The operating loss is stated after charging/(crediting):

2023 2022
£    £   
Hire of plant and machinery 26,837 23,464
Depreciation - owned assets 777,258 748,221
Profit on disposal of fixed assets - (30,436 )
Auditors' remuneration 11,500 11,500
Auditors' remuneration for non audit work 21,500 13,112
Foreign exchange differences (35,415 ) (65,438 )

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 10,668 26,727
Hire purchase 15,061 25,459
Leasing 17,440 17,107
43,169 69,293

6. TAXATION

Analysis of the tax charge
No liability to UK corporation tax arose for the year ended 31 December 2023 nor for the year ended 31 December 2022.

Castle Precision Engineering
(Glasgow) Limited (Registered number: SC039355)

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

7. PROPERTY, PLANT AND EQUIPMENT
Office
Improvements and
Freehold to Plant and computer
property property machinery equipment Totals
£    £    £    £    £   
COST
At 1 January 2023 2,694,464 1,230,339 22,269,080 3,195,695 29,389,578
Additions - - 1,192,180 25,727 1,217,907
At 31 December 2023 2,694,464 1,230,339 23,461,260 3,221,422 30,607,485
DEPRECIATION
At 1 January 2023 1,070,264 78,794 19,087,729 3,063,453 23,300,240
Charge for year 52,716 24,624 655,616 44,302 777,258
At 31 December 2023 1,122,980 103,418 19,743,345 3,107,755 24,077,498
NET BOOK VALUE
At 31 December 2023 1,571,484 1,126,921 3,717,915 113,667 6,529,987
At 31 December 2022 1,624,200 1,151,545 3,181,351 132,242 6,089,338

Included in plant and machinery are assets costing £3,591,901 and depreciation of £2,158,762 which are subject to hire purchase agreements.

8. INVENTORIES
2023 2022
£    £   
Work-in-progress 6,391,805 4,671,176

9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,355,387 979,219
Other debtors 106,772 7,300
Prepayments and accrued income 395,244 9,010
1,857,403 995,529

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 12) 274,255 390,369
Trade creditors 2,536,412 2,207,463
Social security and other taxes 133,677 118,534
VAT 366,477 846,607
Other creditors 1,505,418 1,990,626
Directors' current accounts 650,000 -
Accrued expenses 107,377 142,398
Deferred government grants 51,245 14,632
5,624,861 5,710,629

Castle Precision Engineering
(Glasgow) Limited (Registered number: SC039355)

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

11. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Hire purchase contracts (see note 12) 124,952 399,208
Deferred government grants 497,278 182,136
622,230 581,344

12. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2023 2022
£    £   
Gross obligations repayable:
Within one year 280,056 404,715
Between one and five years 126,078 406,135
406,134 810,850

Finance charges repayable:
Within one year 5,801 14,346
Between one and five years 1,126 6,927
6,927 21,273

Net obligations repayable:
Within one year 274,255 390,369
Between one and five years 124,952 399,208
399,207 789,577

13. SECURED DEBTS

The bank holds a floating charge over the assets and undertakings of the company.

14. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
3,000 Ordinary £1 3,000 3,000

Ordinary shares carry full voting rights and dividend rights.

Castle Precision Engineering
(Glasgow) Limited (Registered number: SC039355)

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

15. RESERVES
Retained
earnings
£   

At 1 January 2023 10,283,309
Deficit for the year (719,916 )
At 31 December 2023 9,563,393

16. RELATED PARTY DISCLOSURES

During the year, the company made sales to Linn Products Limited, a company owned by a family member totalling £229,303.

At 31 December 2023 there was £28,870 due from or to Linn Products Limited.






17. ULTIMATE CONTROLLING PARTY

The controlling party is Mrs R Tiefenbrun.