Company registration number NI675935 (Northern Ireland)
PRECISION NI HOLDINGS LTD
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PRECISION NI HOLDINGS LTD
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Company statement of cash flows
13
Notes to the financial statements
14 - 30
PRECISION NI HOLDINGS LTD
COMPANY INFORMATION
Director
Mr. K Williams
Company number
NI675935
Registered office
28 McLean Road
Eglinton
Derry
BT47 3XX
Auditor
Moore (NI) LLP
21/23 Clarendon Street
Derry/Londonderry
BT48 7EP
Bankers
Danske Bank
North Business Centre
1-2 Broadway
Ballymena
BT43 7AA
Solicitors
Mark Reid Solicitor
2A Woodburn Park
Lisnagelvin
Londonderry
BT47 5PS
PRECISION NI HOLDINGS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The director presents the strategic report for the year ended 31 December 2023.

Review of the business

For the year ended 31st December 2023 the group is pleased to report profit before tax of £592,419 (2022: profit before tax of £666,590).

 

The directors are satisfied with the performance and are confident that the group will perform well in 2024 and beyond.

Principal risks and uncertainties

In accordance with the requirement to analyse the key risks and uncertainties facing the future development of the group and company, the following have been identified:

 

Financial risk management

The group's operations expose it to a variety of financial risks that include price risk, foreign exchange risk, credit risk and liquidity risk. The group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the group by monitoring and controlling the effects of these risks. Given the size of the group, the directors have assumed responsibility for the monitoring of financial risk management.

 

Foreign exchange risk

A proportion of the group's trading is conducted in foreign currency. However, any exposure to foreign exchange risk in the normal course of business is deemed to be immaterial.

 

Credit risk

The group is exposed to credit risk due to its policy of giving credit to customers. However, credit checks are routinely carried out on new customers. Bad debt is monitored on an going basis and the group's policies mean that bad debt is kept to a minimum.

 

Interest rate cash flow risk

The group has interest bearing liabilities and has a policy of monitoring its debt finance to ensure certainty of future interest cash flows.

 

Liquidity risk

The directors monitor the cash levels of the group to ensure that there are always cash funds available to meet the day to day working capital requirements of the group.

Key performance indicators

Given the straightforward nature of the business, the group and parent company's directors are of the opinion that analysis using KPIs is not necessary for an understanding of the development, performance or position of the business.

On behalf of the board

Mr. K Williams
Director
24 September 2024
PRECISION NI HOLDINGS LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The director presents his annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the parent company is that of a holding company. The principal activities of each of the company's subsidiaries are as follows:

 

Precision Industrial Services Ltd - the provision of property, environmental and utility services.

Precision Processing Services Ltd - the provision of thermochemical cleaning services.

Steam & Generation Services (NI) Ltd- the provision of mechanical, fitting and coded welding services.

Precision Mechanical Contractors Ltd- provision of mechanical and plumbing services.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The director does not recommend payment of a further dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr. K Williams
Auditor

Moore (NI) LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Energy and carbon report

As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Statement of director's responsibilities

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

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

PRECISION NI HOLDINGS LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr. K Williams
Director
24 September 2024
PRECISION NI HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PRECISION NI HOLDINGS LTD
- 4 -
Opinion

We have audited the financial statements of Precision NI Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 director's 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 group's and parent 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

PRECISION NI HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PRECISION NI HOLDINGS LTD
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines is 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 director is responsible for assessing the parent 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 director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

Auditor's 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 an auditor's report 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the group and parent company.

 

Based on our understanding of the group and parent company's operating environment, we determined that the most significant frameworks which have a direct impact on the preparation of the financial statements are those related to the reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations of which non-compliance may have a material effect on the financial statements. Compliance with these laws and regulations was assessed as part of our procedures.

 

Other laws and regulations of which non-compliance may have a material effect on the financial statements, e.g. through fines or litigation, were identified as regulations in relation to employment law and health and safety regulations. Our required procedures in these areas are limited to inquiry of directors and other management and inspection of any regulatory or legal correspondence. These limited procedures did not identify any actual or suspected non-compliance.

We assessed the susceptibility of the group and parent company's financial statements to material misstatement, including how fraud might occur, including evaluating management's incentives and opportunities to manage earnings or influence the reported results. From the results of our assessment, we determined that the principal risk of fraud related to posting inappropriate journal entries. In common with all audits under ISAs (UK), we are required to perform specific procedures to respond to the risk of management override.

PRECISION NI HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PRECISION NI HOLDINGS LTD
- 6 -
Audit response to risks identified

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. Audit procedures performed by the engagement team included:

 

We communicated relevant laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment through collusion, forgery, intentional omissions, misrepresentations or the override of internal control.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

The purpose of our audit work and to whom we owe our responsibilities

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 an auditor's report 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 Bradley (Senior Statutory Auditor)
For and on behalf of Moore (NI) LLP
24 September 2024
Chartered Accountants
Statutory Auditor
21/23 Clarendon Street
Derry/Londonderry
BT48 7EP
PRECISION NI HOLDINGS LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
12,105,682
10,353,820
Cost of sales
(9,709,971)
(8,076,065)
Gross profit
2,395,711
2,277,755
Administrative expenses
(1,857,609)
(1,700,544)
Other operating income
97,670
117,654
Operating profit
4
635,772
694,865
Interest receivable and similar income
7
6,759
9
Interest payable and similar expenses
8
(50,112)
(28,284)
Profit before taxation
592,419
666,590
Tax on profit
9
(195,095)
(126,278)
Profit for the financial year
25
397,324
540,312
Profit for the financial year is all attributable to the owner of the parent company.
Total comprehensive income for the year is all attributable to the owner of the parent company.
PRECISION NI HOLDINGS LTD
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
820,088
922,599
Tangible assets
12
973,475
860,193
Investment property
13
200,000
200,000
1,993,563
1,982,792
Current assets
Stocks
16
168,799
214,870
Debtors
17
3,095,246
4,082,365
Cash at bank and in hand
939,538
169,275
4,203,583
4,466,510
Creditors: amounts falling due within one year
18
(2,632,906)
(2,740,272)
Net current assets
1,570,677
1,726,238
Total assets less current liabilities
3,564,240
3,709,030
Creditors: amounts falling due after more than one year
19
(2,604,404)
(3,179,718)
Provisions for liabilities
Deferred tax liability
22
80,600
-
0
(80,600)
-
Net assets
879,236
529,312
Capital and reserves
Called up share capital
24
100
100
Profit and loss reserves
25
879,136
529,212
Total equity
879,236
529,312
The financial statements were approved and signed by the director and authorised for issue on 24 September 2024
24 September 2024
Mr. K Williams
Director
Company registration number NI675935 (Northern Ireland)
PRECISION NI HOLDINGS LTD
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
14
5,220,234
5,220,234
Current assets
Debtors
17
-
0
86,400
Cash at bank and in hand
126,747
23,336
126,747
109,736
Creditors: amounts falling due within one year
18
(1,709,487)
(1,345,074)
Net current liabilities
(1,582,740)
(1,235,338)
Total assets less current liabilities
3,637,494
3,984,896
Creditors: amounts falling due after more than one year
19
(2,400,000)
(2,700,000)
Net assets
1,237,494
1,284,896
Capital and reserves
Called up share capital
24
100
100
Profit and loss reserves
25
1,237,394
1,284,796
Total equity
1,237,494
1,284,896

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £2 (2022 - £4,104 loss).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved and signed by the director and authorised for issue on 24 September 2024
24 September 2024
Mr. K Williams
Director
Company registration number NI675935 (Northern Ireland)
PRECISION NI HOLDINGS LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
100
(1,500)
(1,400)
Year ended 31 December 2022:
Profit and total comprehensive income
-
540,312
540,312
Dividends
10
-
(9,600)
(9,600)
Balance at 31 December 2022
100
529,212
529,312
Year ended 31 December 2023:
Profit and total comprehensive income
-
397,324
397,324
Dividends
10
-
(47,400)
(47,400)
Balance at 31 December 2023
100
879,136
879,236
PRECISION NI HOLDINGS LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
100
1,298,500
1,298,600
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
(4,104)
(4,104)
Dividends
10
-
(9,600)
(9,600)
Balance at 31 December 2022
100
1,284,796
1,284,896
Year ended 31 December 2023:
Profit and total comprehensive income
-
(2)
(2)
Dividends
10
-
(47,400)
(47,400)
Balance at 31 December 2023
100
1,237,394
1,237,494
PRECISION NI HOLDINGS LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
1,815,164
497,234
Interest paid
(50,112)
(28,284)
Income taxes paid
(126,253)
(99,842)
Net cash inflow from operating activities
1,638,799
369,108
Investing activities
Purchase of tangible fixed assets
(260,461)
(120,497)
Proceeds from disposal of tangible fixed assets
3,163
20,248
Interest received
6,759
9
Net cash used in investing activities
(250,539)
(100,240)
Financing activities
Repayment of preference shares
(300,000)
-
Repayment of bank loans
(263,484)
(232,723)
Payment of finance leases obligations
(7,113)
(33,990)
Dividends paid to equity shareholders
(47,400)
(9,600)
Net cash used in financing activities
(617,997)
(276,313)
Net increase/(decrease) in cash and cash equivalents
770,263
(7,445)
Cash and cash equivalents at beginning of year
169,275
176,720
Cash and cash equivalents at end of year
939,538
169,275
PRECISION NI HOLDINGS LTD
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
450,811
32,936
Financing activities
Repayment of preference shares
(300,000)
-
Dividends paid to equity shareholders
(47,400)
(9,600)
Net cash used in financing activities
(347,400)
(9,600)
Net increase in cash and cash equivalents
103,411
23,336
Cash and cash equivalents at beginning of year
23,336
-
0
Cash and cash equivalents at end of year
126,747
23,336
PRECISION NI HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

Precision NI Holdings Ltd (“the company”) is a private limited company domiciled and incorporated in Northern Ireland. The registered office is 28 McLean Road, Eglinton, Derry, BT47 3XX .

 

The group consists of Precision NI Holdings Ltd and all of its subsidiaries.

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.

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
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Precision NI Holdings Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

PRECISION NI HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
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
Straight line over 50 years
Plant and machinery
20% straight line
Fixtures and fittings
25% straight line
Motor vehicles
25% straight line
PRECISION NI HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -

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 recognised in the profit and loss account.

1.8
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the 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 an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

PRECISION NI HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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 profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
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.

1.13
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

PRECISION NI HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 group after deducting all of its liabilities.

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.

PRECISION NI HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group 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 group.

1.15
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 group’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 if, and only if, there is 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.

PRECISION NI HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.16
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.

1.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.18
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.19
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.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Provision of services
12,105,682
10,353,820
PRECISION NI HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 21 -
2023
2022
£
£
Turnover analysed by geographical market
UK and Ireland
12,105,682
10,353,820
2023
2022
£
£
Other revenue
Interest income
6,759
9
Grants received
9,670
31,987
88,000
85,667
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
2,957
(4,406)
Government grants
(9,670)
(31,987)
Depreciation of owned tangible fixed assets
110,888
92,354
Depreciation of tangible fixed assets held under finance leases
34,447
52,046
Profit on disposal of tangible fixed assets
(1,318)
(4,911)
Amortisation of intangible assets
102,511
102,511
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
1,000
1,000
Audit of the financial statements of the company's subsidiaries
16,800
16,800
17,800
17,800
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Average employees
220
215
-
0
-
0
PRECISION NI HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 22 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
6,373,677
5,766,183
-
0
-
0
Pension costs
99,539
85,980
-
0
-
0
6,473,216
5,852,163
-
0
-
0
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
6,759
9
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
6,759
9
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
44,747
24,046
Other finance costs:
Interest on finance leases and hire purchase contracts
5,365
4,238
Total finance costs
50,112
28,284
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
114,495
131,991
Adjustments in respect of prior periods
-
0
(5,713)
Total current tax
114,495
126,278
Deferred tax
Origination and reversal of timing differences
80,600
-
0
Total tax charge
195,095
126,278
PRECISION NI HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 23 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
592,419
666,590
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
139,337
126,652
Effect of change in corporation tax rate
13,400
-
Permanent capital allowances in excess of depreciation
(900)
(1,237)
Depreciation on assets not qualifying for tax allowances
426
-
Research and development tax credit
(17,240)
(12,901)
Under/(over) provided in prior years
-
0
(5,713)
Deferred tax adjustments in respect of prior years
36,000
-
0
Amortisation of goodwill
24,072
19,477
Taxation charge
195,095
126,278
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
47,400
9,600
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
1,025,110
Amortisation and impairment
At 1 January 2023
102,511
Amortisation charged for the year
102,511
At 31 December 2023
205,022
Carrying amount
At 31 December 2023
820,088
At 31 December 2022
922,599
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
PRECISION NI HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
12
Tangible fixed assets
Group
Freehold land and buildings
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
577,833
206,726
6,009
214,025
1,004,593
Additions
-
0
93,572
4,037
162,852
260,461
Disposals
-
0
(932)
-
0
(1,167)
(2,099)
At 31 December 2023
577,833
299,366
10,046
375,710
1,262,955
Depreciation and impairment
At 1 January 2023
2,983
62,036
3,890
75,491
144,400
Depreciation charged in the year
1,812
65,146
3,721
74,655
145,334
Eliminated in respect of disposals
-
0
(143)
-
0
(111)
(254)
At 31 December 2023
4,795
127,039
7,611
150,035
289,480
Carrying amount
At 31 December 2023
573,038
172,327
2,435
225,675
973,475
At 31 December 2022
574,850
144,690
2,119
138,534
860,193
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
13
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 January 2023 and 31 December 2023
200,000
-

Investment property comprises 44 City Business Park, Dunmurry. A property valuation was carried out by market experts at the request of the directors on 20th October 2020. The directors have determined that the valuation provided at this date remains an accurate assessment of the investment property's fair value at the reporting date.

14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
5,220,234
5,220,234
PRECISION NI HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Fixed asset investments
(Continued)
- 25 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
5,220,234
Carrying amount
At 31 December 2023
5,220,234
At 31 December 2022
5,220,234
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Precision Industrial Services Limited
Site 28, Campsie Industrial Estate, McLean Road, Derry, Northern Ireland, BT47 3XX
Ordinary shares
100.00
-
Precision Processing Services Limited
60 Clooney Road. Derry. Northern Ireland, BT47 6TR
Ordinary shares
100.00
-
Precision Mechanical Contractors Ltd
Site 28, Campsie Industrial Estate, McLean Road, Derry, Northern Ireland, BT47 3XX
Ordinary and preference shares
-
100.00
Steam & Generation Services (NI) Ltd
Site 28, Campsie Industrial Estate, McLean Road, Derry, Northern Ireland, BT47 3XX
Ordinary shares
-
100.00
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Work in progress
72,974
91,356
-
-
Finished goods and goods for resale
95,825
123,514
-
0
-
0
168,799
214,870
-
-
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,505,261
2,086,623
-
0
-
0
Other debtors
1,465,810
1,838,313
-
0
86,400
Prepayments and accrued income
124,175
157,429
-
0
-
0
3,095,246
4,082,365
-
86,400
PRECISION NI HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
20
298,314
289,434
-
0
-
0
Obligations under finance leases
21
40,880
45,043
-
0
-
0
Other borrowings
20
300,000
300,000
300,000
300,000
Trade creditors
412,095
510,336
7
7
Amounts owed to group undertakings
-
0
-
0
1,382,480
1,044,067
Corporation tax payable
114,520
126,278
-
0
-
0
Other taxation and social security
366,723
511,939
-
-
Other creditors
308,819
284,787
-
0
-
0
Accruals and deferred income
791,555
672,455
27,000
1,000
2,632,906
2,740,272
1,709,487
1,345,074
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
168,558
440,922
-
0
-
0
Obligations under finance leases
21
35,846
38,796
-
0
-
0
Other borrowings
20
2,400,000
2,700,000
2,400,000
2,700,000
2,604,404
3,179,718
2,400,000
2,700,000
Amounts included above which fall due after five years are as follows:
Payable by instalments
1,200,000
1,500,000
1,200,000
1,500,000
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
466,872
730,356
-
0
-
0
Preference shares
2,700,000
3,000,000
2,700,000
3,000,000
3,166,872
3,730,356
2,700,000
3,000,000
Payable within one year
598,314
589,434
300,000
300,000
Payable after one year
2,568,558
3,140,922
2,400,000
2,700,000

The long-term loans are secured by fixed charges over the company's land and properties.

PRECISION NI HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
21
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
51,973
42,961
-
0
-
0
In two to five years
43,037
48,043
-
0
-
0
95,010
91,004
-
-
Less: future finance charges
(18,284)
(7,165)
-
0
-
0
76,726
83,839
-
0
-
0

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
80,600
-
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 January 2023
-
-
Charge to profit or loss
80,600
-
Liability at 31 December 2023
80,600
-
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
99,539
85,980

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

PRECISION NI HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
2023
2022
2023
2022
Preference share capital
Number
Number
£
£
Issued and fully paid
A cumulative convertible redeemable preference shares of £1 each
1,200,000
1,500,000
1,200,000
1,500,000
B cumulative convertible redeemable preference shares of £1 each
1,500,000
1,500,000
1,500,000
1,500,000
2,700,000
3,000,000
2,700,000
3,000,000
Preference shares classified as liabilities
2,700,000
3,000,000

The company has one class of ordinary shares which carry full rights regarding voting, payment of dividends and participation in distributions in the event of winding up the company.

 

Additionally, the company has in issue 1,500,000 A cumulative convertible redeemable preference shares with preferred voting rights, preferred right to dividends and preferred distribution rights. The company also has in issue 1,500,000 B cumulative convertible redeemable preference shares with voting rights and preferred dividend and preferred distribution rights, both subordinated to the A preferred shares.

25
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
529,212
(1,500)
1,284,796
1,298,500
Profit/(loss) for the year
397,324
540,312
(2)
(4,104)
Dividends
(47,400)
(9,600)
(47,400)
(9,600)
At the end of the year
879,136
529,212
1,237,394
1,284,796
26
Financial commitments, guarantees and contingent liabilities

There is a contingent liability to repay certain government grants under the terms of offer from Invest Northern Ireland if companies within the group fail to achieve and maintain specific conditions. In the opinion of the directors the terms of the letters of offer have been complied with and no loss is expected.

27
Events after the reporting date

There have been no significant events impacting the group or company since the reporting date.

PRECISION NI HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
28
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
397,324
540,312
Adjustments for:
Taxation charged
195,095
126,278
Finance costs
50,112
28,284
Investment income
(6,759)
(9)
Gain on disposal of tangible fixed assets
(1,318)
(4,911)
Amortisation and impairment of intangible assets
102,511
102,511
Depreciation and impairment of tangible fixed assets
145,334
144,400
Movements in working capital:
Decrease/(increase) in stocks
46,071
(66,840)
Decrease/(increase) in debtors
987,119
(334,634)
Decrease in creditors
(100,325)
(38,157)
Cash generated from operations
1,815,164
497,234
29
Cash generated from operations - company
2023
2022
£
£
Loss for the year after tax
(2)
4,104
Movements in working capital:
Decrease/(increase) in debtors
86,400
(900)
Increase in creditors
364,413
37,940
Cash generated from operations
450,811
32,936
30
Analysis of changes in net debt - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
169,275
770,263
939,538
Borrowings excluding overdrafts
(3,730,356)
563,484
(3,166,872)
Obligations under finance leases
(83,839)
7,113
(76,726)
(3,644,920)
1,340,860
(2,304,060)
PRECISION NI HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
31
Analysis of changes in net debt - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
23,336
103,411
126,747
Borrowings excluding overdrafts
(3,000,000)
300,000
(2,700,000)
(2,976,664)
403,411
(2,573,253)
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