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Registration number: 06193136

LRN Engineering Limited

Financial Statements

for the Year Ended 31 December 2023

Brebners
Chartered Accountants & Statutory Auditor
1 Suffolk Way
Sevenoaks
Kent
TN13 1YL

 

LRN Engineering Limited

Statement of Financial Position as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

5

32,065

38,038

Current assets

 

Stocks

6

10,489

16,992

Debtors

7

44,945

39,242

Cash at bank and in hand

 

11,303

15,425

 

66,737

71,659

Creditors: Amounts falling due within one year

8

(52,010)

(27,567)

Net current assets

 

14,727

44,092

Total assets less current liabilities

 

46,792

82,130

Creditors: Amounts falling due after more than one year

8

(4,259)

(8,704)

Provisions for liabilities

-

(3,545)

Net assets

 

42,533

69,881

Capital and reserves

 

Called up share capital

100

100

Retained earnings

42,433

69,781

Shareholders' funds

 

42,533

69,881

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Statement of Income and Retained Earnings has been taken.

Approved and authorised by the Board on 26 September 2024 and signed on its behalf by:
 

.........................................

Mr J B Spencer

Director

Company registration number: 06193136

 

LRN Engineering Limited

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

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
GPS Marine House
Upnor Road
Lower Upnor
Rochester
Kent
ME2 4UY

The principal activity of the company is that of the provision of engineering and machinery maintenance.

2

Audit Report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 26 September 2024 was , who signed for and on behalf of Brebners.

3

Accounting policies

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except any items disclosed in the accounting policies as being shown at fair value and are presented in sterling, which is the functional currency of the entity.

Short period of account

The comparatives relates to the 9 months ended 31 December 2022

Summary of significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Going concern

The company had net assets at 31 December 2023 of £42,533 including cash at bank of £11,303.

The company has traded profitably since 31 December 2023 and the company's maintenance services remain in demand.

On the basis of the above and after making enquiries the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

 

LRN Engineering Limited

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

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company's activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue based upon the contractual stage of completion, when the amount of revenue can then be reliably measured and invoiced.

Tax

The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

25% reducing balance

Motor vehicles

25% reducing balance

Furniture, fittings and equipment

25% reducing balance

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Stocks

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

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

LRN Engineering Limited

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

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Finance leases and hire purchase

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Statement of Financial Position as a finance lease obligation.

Lease payments are apportioned between finance costs in the Income Statement and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Assets held under hire purchase contracts are capitalised at the lesser of fair value or present value of minimum lease payments in the statement of financial position. The present value of the minimum lease payments is calculated using the interest rate implicit in the lease. A corresponding liability is recognised at the same value in the statement of financial position. The asset is then depreciated over its useful life.

The minimum lease payments are apportioned between the finance charge recognised in the income statement and the reduction of the outstanding liability using the effective interest method. The finance charge in each period is allocated so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Share capital

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

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

4

Staff numbers

The average number of persons employed by the company during the year, was 4 (2022 - 4).

 

LRN Engineering Limited

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

5

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Plant and machinery
£

Total
£

Cost or valuation

At 1 January 2023

4,403

34,757

49,851

89,011

Additions

-

-

1,567

1,567

At 31 December 2023

4,403

34,757

51,418

90,578

Depreciation

At 1 January 2023

3,711

17,105

30,157

50,973

Charge for the year

174

4,413

2,953

7,540

At 31 December 2023

3,885

21,518

33,110

58,513

Carrying amount

At 31 December 2023

518

13,239

18,308

32,065

At 31 December 2022

692

17,652

19,694

38,038

6

Stocks

2023
£

2022
£

Stock

10,489

16,992

7

Debtors

2023
£

2022
£

Trade debtors

 

29,632

39,242

Amounts owed by group undertakings

10

15,313

-

 

44,945

39,242

 

LRN Engineering Limited

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

8

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Loans and borrowings

9

4,444

4,245

Trade creditors

 

3,520

3,596

Amounts owed to group undertakings

10

25,077

936

Taxation and social security

 

11,344

16,047

Accruals and deferred income

 

7,199

2,500

Other creditors

 

426

243

 

52,010

27,567

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Loans and borrowings

9

4,259

8,704

9

Loans and borrowings

Current loans and borrowings

2023
£

2022
£

Hire purchase liabilities

4,444

4,245

Non-current loans and borrowings

2023
£

2022
£

Hire purchase liabilities

4,259

8,704

Obligations under hire purchase contracts are secured on the assets themselves.

10

Related party transactions

Exemption has been taken under FRS 102 paragraph 33.1A not to disclose transactions or amounts fully due with companies that are wholly owned within the group.

11

Parent undertaking

The company is a subsidiary of G.P.S Marine Holdings Limited. The smallest group preparing group accounts including the results of the company is headed by G.P.S Marine Holdings Limited. The registered office of G.P.S Marine Holdings Limited is GPS Marine House, Upnor Road, Lower Upnor, Rochester, Kent ME2 4UY.