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REGISTERED NUMBER: 02075421 (England and Wales)


















PRV ENGINEERING LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023






PRV ENGINEERING LIMITED (REGISTERED NUMBER: 02075421)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023










Page

Company Information 1

Strategic Report 2 to 3

Report of the Directors 4 to 5

Report of the Independent Auditors 6 to 8

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13 to 24


PRV ENGINEERING LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: A Bennetts
C Day
S K Jones
M A Olerenshaw
L A Williams
M Chapman



REGISTERED OFFICE: Pegasus House
Polo Grounds
New Inn
Pontypool
Gwent
NP4 0TW



REGISTERED NUMBER: 02075421 (England and Wales)



AUDITORS: MHA
Statutory Auditor
Swansea, United Kingdom



AUDITORS OFFICE: MHA House
Charter Court
Swansea Enterprise Park
Swansea
SA7 9FS

PRV ENGINEERING LIMITED (REGISTERED NUMBER: 02075421)

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
The company's trading results for the financial year are shown in the financial statements.

FY23 continued to be a success for the company owing to our stable customer base, the provision of excellent customer service, on time delivery and high quality products.

The company enjoys a number of competitive advantages due to its experience and expertise in multiple disciplines such as General and CNC Machining, 5 Axis Machining, Hydro-Abrasive Waterjet Cutting, Deep Hole Drilling, Welding and Fabrication, Spray Painting, Powder Coating and Shot Blasting. We also have large format milling machines which enable us to machine on a 2.5 x 2m bed which puts us in a very strong position with our competitors.

Our business strategy is to continue to develop our relationships with both existing and new customers and provide a comprehensive one stop service, investing in new machinery and employing extra staff when required.

KEY PERFORMANCE INDICATORS
The directors were pleased with the performance of the business during FY23.

The key performance indicators are summarised below.

2023 2022
£'000 £'000
Turnover 5,831 4,982
Gross Profit 2,801 2,639
Operating Profit 1,420 1,185


PRV ENGINEERING LIMITED (REGISTERED NUMBER: 02075421)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The key business risks are as follows:

Price Risk
The Purchasing Director continually monitors movement in material prices on a regular basis but does not consider it to be beneficial to undertake any formal hedging arrangements.

Credit Risk
The company has implemented policies that require appropriate credit checks to be made on both existing and potential customers before sales are made. The amount of exposure to any individual counter party is continually monitored in line with credit control procedures. Contracts are in place with the main blue chip customers of the business.

Competition
Whilst the market remains competitive the company has a successful track record for achieving growth whilst maintaining a strong market position.

Liquidity and Interest Rate Risk
The cash position of the company remains strong. The company mitigates against any fluctuations in market conditions by fixing the rate of interest charged on any debt instruments issued.

ON BEHALF OF THE BOARD:




S K Jones - Director


26 September 2024

PRV ENGINEERING LIMITED (REGISTERED NUMBER: 02075421)

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.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the manufacture and engineering of metal based components.

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2023 will be £ 129,821 .

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

A Bennetts
C Day
S K Jones
M A Olerenshaw
L A Williams

Other changes in directors holding office are as follows:

G P Flook - resigned 13 March 2023
M Chapman - appointed 13 March 2023

CHARITABLE DONATIONS AND EXPENDITURE
The company made charitable donations of £2,785 during the year.

GOING CONCERN
The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future.

The directors have reviewed the balance sheet, the likely future cash flows of the business and has considered the facilities that are in place at the date of signing the report. The directors anticipate that trading will remain competitive in the forthcoming financial year.

At the date of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for foreseeable future.

DISCLOSURE IN THE STRATEGIC REPORT
Included in the company's strategic report is a review of the business and a description of the principal risks and uncertainties facing the company.


PRV ENGINEERING LIMITED (REGISTERED NUMBER: 02075421)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, MHA, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Following a rebranding exercise on 15 May 2023 the trading name of the company's independent auditor changed from MHA Macintyre Hudson to MHA.

ON BEHALF OF THE BOARD:





S K Jones - Director


26 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PRV ENGINEERING LIMITED


Opinion
We have audited the financial statements of PRV Engineering 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 and 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 profit 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
PRV ENGINEERING 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 five, 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:

- Enquiry of management and those charged with governance around actual, potential or suspected litigation, claims, non-compliance with applicable laws and regulations and fraud.
- Review of legal and professional fees for evidence of legal work undertaken or fines/penalties incurred.
- Reviewing of financial statements disclosures and testing to supporting documentation to assess compliance with laws and regulations.
- Performing audit work over the risk of management override, including testing of journal entries and other adjustments for appropriateness.
- Evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
- Discussions amongst the engagement team in relation to how and where fraud might occur in the financial statements and any potential indicators of 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
PRV ENGINEERING 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.




Brian Garland BA ACA (Senior Statutory Auditor)
for and on behalf of MHA
Statutory Auditor
Swansea, United Kingdom

30 September 2024


MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership
in England and Wales (registered number OC312313).

PRV ENGINEERING LIMITED (REGISTERED NUMBER: 02075421)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 3 5,830,722 4,982,003

Cost of sales 3,029,881 2,342,986
GROSS PROFIT 2,800,841 2,639,017

Administrative expenses 1,403,461 1,479,292
1,397,380 1,159,725

Other operating income 22,422 25,915
OPERATING PROFIT 5 1,419,802 1,185,640

Interest receivable and similar income 27,559 7,209
1,447,361 1,192,849

Interest payable and similar expenses 6 14,801 40,729
PROFIT BEFORE TAXATION 1,432,560 1,152,120

Tax on profit 7 409,534 211,071
PROFIT FOR THE FINANCIAL YEAR 1,023,026 941,049

PRV ENGINEERING LIMITED (REGISTERED NUMBER: 02075421)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 1,023,026 941,049


OTHER COMPREHENSIVE INCOME
Transfer from revaluation reserve - (5,124 )
Transfer to retained earnings - 5,124
Income tax relating to components of
other comprehensive income

-

-
OTHER COMPREHENSIVE INCOME FOR
THE YEAR, NET OF INCOME TAX

-

-
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

1,023,026

941,049

PRV ENGINEERING LIMITED (REGISTERED NUMBER: 02075421)

BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 - -
Tangible assets 10 1,862,834 2,063,119
1,862,834 2,063,119

CURRENT ASSETS
Stocks 11 1,951,645 1,612,970
Debtors 12 2,592,046 2,911,855
Cash at bank and in hand 2,788,038 1,795,265
7,331,729 6,320,090
CREDITORS
Amounts falling due within one year 13 1,187,836 1,148,633
NET CURRENT ASSETS 6,143,893 5,171,457
TOTAL ASSETS LESS CURRENT
LIABILITIES

8,006,727

7,234,576

CREDITORS
Amounts falling due after more than one
year

14

(392,662

)

(550,950

)

PROVISIONS FOR LIABILITIES 18 (165,741 ) (128,507 )
NET ASSETS 7,448,324 6,555,119

CAPITAL AND RESERVES
Called up share capital 19 2 2
Revaluation reserve 20 254,762 254,762
Retained earnings 20 7,193,560 6,300,355
SHAREHOLDERS' FUNDS 7,448,324 6,555,119

The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2024 and were signed on its behalf by:





S K Jones - Director


PRV ENGINEERING LIMITED (REGISTERED NUMBER: 02075421)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023

Called up
share Retained Revaluation Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 January 2022 2 5,670,474 259,886 5,930,362

Changes in equity
Profit for the year - 941,049 - 941,049
Other comprehensive income - 5,124 (5,124 ) -
Total comprehensive income - 946,173 (5,124 ) 941,049
Dividends - (316,292 ) - (316,292 )
Balance at 31 December 2022 2 6,300,355 254,762 6,555,119

Changes in equity
Profit for the year - 1,023,026 - 1,023,026
Total comprehensive income - 1,023,026 - 1,023,026
Dividends - (129,821 ) - (129,821 )
Balance at 31 December 2023 2 7,193,560 254,762 7,448,324

PRV ENGINEERING LIMITED (REGISTERED NUMBER: 02075421)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023


1. STATUTORY INFORMATION

PRV Engineering Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


Monetary amounts in these financial statements are rounded to the nearest £.

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. modified to include the revaluation of leasehold properties and certain financial instruments at fair value.

The principal accounting policies applied in the preparation of these financial statements are set out below.

Going concern
The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future.

The directors have reviewed the balance sheet, the likely future cash flows of the business and has considered the facilities that are in place at the date of signing the report. The directors anticipate that trading will remain competitive in the forthcoming financial year.

At the date of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for foreseeable future.

Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company's accounting policies, the directors are 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.

There are no key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements.

PRV ENGINEERING LIMITED (REGISTERED NUMBER: 02075421)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

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.

Revenue recognition
(1) Engineering Product Turnover

The revenue derived from the sale of manufactured engineering products is recognised on despatch of the goods to the customer.

(2) Fabrication Services Turnover

The revenue derived from fabrication services is recognised to reflect the stage of completion of work carried out.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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 value over their useful lives on the following bases:

Long Leasehold
Property

-

Straight line over 50 years
Plant and machinery - 10% Straight line
Motor vehicles- 25% Straight line
Office equipment - 15% Straight line

Government grants
Grants are credited to deferred income. Grants towards capital expenditure are released to the income statement over the useful life of the assets. Grants towards revenue expenditure are released to the income statement as the related expenditure is incurred.

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

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.

PRV ENGINEERING LIMITED (REGISTERED NUMBER: 02075421)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Financial instruments
The company 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 assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument.

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 company after deducting all of its liabilities.

Financial assets and liabilities are offset, with 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.

Financial assets and liabilities
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a finance transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments that are classified as payable or receivable within one year are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.

Basic financial assets
Basic financial assets, which include trade 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.

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 far value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are no 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.

PRV ENGINEERING LIMITED (REGISTERED NUMBER: 02075421)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Derecognition of financial assets
Financial assets are derecognised when and only when the contractual rights to the cash flows from the financial asset expire or are settled, the company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or the company, despite having retained some significant risks and rewards of ownership, has transferred control of the asset to another party and the other party has the practical ability to sell the asset in its entirety to an unrelated third party and is able to exercise that ability unilaterally and without needing to impose additional restrictions on the transfer.

Basic financial liabilities
Basic financial liabilities, including trade creditors, bank loans and loans from fellow group companies 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 costs, 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.

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 only when the obligation specified in the contract is discharged, cancelled or expires.

Cash at bank and in hand
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.

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
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.


PRV ENGINEERING LIMITED (REGISTERED NUMBER: 02075421)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued
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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.

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 the profit and loss accounts so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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. The assets of the scheme are held separately from those of the company in an independently administered fund

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.

Equity instruments
Equity instruments issued by the company 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 company.

PRV ENGINEERING LIMITED (REGISTERED NUMBER: 02075421)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 5,830,722 4,812,947
Europe - 169,056
5,830,722 4,982,003

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,646,118 1,566,536
Social security costs 157,886 154,570
Other pension costs 96,587 73,841
1,900,591 1,794,947

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

Employees (including directors) 54 44

2023 2022
£    £   
Directors' remuneration 249,275 302,796
Directors' pension contributions to money purchase schemes 65,510 46,875

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 61,000 65,000

5. OPERATING PROFIT

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

2023 2022
£    £   
Hire of plant and machinery 27,714 19,601
Other operating leases 27,983 27,905
Depreciation - owned assets 157,807 179,237
Depreciation - assets on hire purchase contracts 82,421 125,106
Auditors' remuneration 16,000 15,000
Foreign exchange differences (60 ) 2,059
Government grants (22,422 ) (22,422 )

PRV ENGINEERING LIMITED (REGISTERED NUMBER: 02075421)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 2,717 4,939
Invoice discounting interest (5,156 ) 13,938
Other interest 7,598 7,598
Hire purchase 9,642 14,254
14,801 40,729

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 372,300 269,616
Corporation tax - prior year - 1,606
Total current tax 372,300 271,222

Deferred tax 37,234 (60,151 )
Tax on profit 409,534 211,071

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 31 December 2023.

2022
Gross Tax Net
£    £    £   
Transfer from revaluation reserve (5,124 ) - (5,124 )
Transfer to retained earnings 5,124 - 5,124
- - -

8. DIVIDENDS

Ordinary dividends were paid amounting to £129,821 (2022: £316,292). The directors do not recommend payment of a further dividend.

PRV ENGINEERING LIMITED (REGISTERED NUMBER: 02075421)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


9. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 January 2023
and 31 December 2023 128,070
AMORTISATION
At 1 January 2023
and 31 December 2023 128,070
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 -

10. TANGIBLE FIXED ASSETS
Long Plant and Motor Office
leasehold machinery vehicles equipment Totals
£    £    £    £    £   
COST
At 1 January 2023 1,007,700 3,825,665 205,123 148,434 5,186,922
Additions - 25,000 - 14,943 39,943
At 31 December 2023 1,007,700 3,850,665 205,123 163,377 5,226,865
DEPRECIATION
At 1 January 2023 80,347 2,757,659 159,130 126,667 3,123,803
Charge for year 18,474 189,702 24,268 7,784 240,228
At 31 December 2023 98,821 2,947,361 183,398 134,451 3,364,031
NET BOOK VALUE
At 31 December 2023 908,879 903,304 21,725 28,926 1,862,834
At 31 December 2022 927,353 1,068,006 45,993 21,767 2,063,119

Land and buildings with a carrying amount of £1,000,000 were revalued at 25 June 2019 by Hutchings and Thomas Chartered Surveyors for the Company's Bankers HSBC. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

If revalued assets were stated on an historical cost basis rather than at fair value, the total amounts included would have been as follows :



20232022
££
Cost 549,087549,087
Accumulated depreciation (193,053)(174,283)
Carrying value 356,034374,804

PRV ENGINEERING LIMITED (REGISTERED NUMBER: 02075421)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


10. TANGIBLE FIXED ASSETS - continued

The net book value of tangible fixed assets includes £ 523,737 (2022 - £ 717,507 ) in respect of assets held under hire purchase contracts.

11. STOCKS
2023 2022
£    £   
Raw materials 1,235,402 1,192,703
Work In Progress 716,243 420,267
1,951,645 1,612,970

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 688,195 1,109,499
Amounts owed by group undertakings 1,763,948 1,761,248
Other debtors 40,308 41,108
Directors' current accounts 99,595 -
2,592,046 2,911,855

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 15) 10,160 99,101
Hire purchase contracts (see note 16) 133,516 161,791
Trade creditors 274,220 355,479
Corporation tax 428,333 269,616
Social security and other taxes 50,303 43,084
VAT 182,030 112,089
Other creditors - 699
Directors' loan accounts 64,671 64,671
Accruals and deferred income 22,181 19,681
Deferred government grants 22,422 22,422
1,187,836 1,148,633

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans (see note 15) 14,941 25,195
Hire purchase contracts (see note 16) 100,312 225,924
Deferred government grants 277,409 299,831
392,662 550,950

PRV ENGINEERING LIMITED (REGISTERED NUMBER: 02075421)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


15. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 10,160 99,101

Amounts falling due between one and two years:
Bank loans - 1-2 years 14,941 25,195

16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 133,516 161,791
Between one and five years 100,312 225,924
233,828 387,715

Non-cancellable operating leases
2023 2022
£    £   
Within one year 21,055 23,990
Between one and five years 5,104 26,159
26,159 50,149

17. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 25,101 124,296
Hire purchase contracts 233,828 387,715
258,929 512,011

Bank loans are secured by fixed and floating charges over all the assets and undertakings of PRV Engineering Limited, a charge over contract monies, a debenture and a cross company guarantee from Transit Engineering Limited.

Obligations under hire purchase contracts are secured by the underlying assets.

PRV ENGINEERING LIMITED (REGISTERED NUMBER: 02075421)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


18. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 165,741 128,507

Deferred
tax
£   
Balance at 1 January 2023 128,507
Charge to Income Statement during year 37,234
Balance at 31 December 2023 165,741

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
2 Ordinary £1 2 2

20. RESERVES
Retained Revaluation
earnings reserve Totals
£    £    £   

At 1 January 2023 6,300,355 254,762 6,555,117
Profit for the year 1,023,026 1,023,026
Dividends (129,821 ) (129,821 )
At 31 December 2023 7,193,560 254,762 7,448,322

21. PENSION COMMITMENTS

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The pension cost charge £96,587 (2022 - £73,841) represents contributions payable by the company to the fund.

22. CONTINGENT LIABILITIES

The company guarantees the bank facility of Transit Engineering Limited (its holding company) by means of an unlimited cross guarantee.

23. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

At 31 December 2023, the company owed the director Mr S K Jones £64,671 (2022 - £64,671). Interest is charged on the loan at a rate of 11.75% per annum. The loan is repayable on demand.

PRV ENGINEERING LIMITED (REGISTERED NUMBER: 02075421)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


24. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

25. ULTIMATE CONTROLLING PARTY

Transit Engineering Limited is the parent company. The registered office address of Transit Engineering Limited is Pegasus House, Polo Grounds, New Inn, Pontypool, NP4 0TW.

The ultimate controlling party is S K Jones.