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REGISTERED NUMBER: 00217422 (England and Wales)





















STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2024

FOR

POWER TORQUE ENGINEERING LIMITED

POWER TORQUE ENGINEERING LIMITED (REGISTERED NUMBER: 00217422)






CONTENTS OF THE FINANCIAL STATEMENTS
for the year ended 30 April 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 13


POWER TORQUE ENGINEERING LIMITED

COMPANY INFORMATION
for the year ended 30 April 2024







DIRECTORS: P Varney
A. Varney
J. Townley
N. Haycock
H Varney
Dr M Varney





REGISTERED OFFICE: 27 Herald Way
Binley Industrial Estate
Coventry
West Midlands
CV3 2RQ





REGISTERED NUMBER: 00217422 (England and Wales)





AUDITORS: Dafferns LLP
Chartered Accountants
Statutory Auditor
One Eastwood
Harry Weston Road
Binley Business Park
Coventry
CV3 2UB

POWER TORQUE ENGINEERING LIMITED (REGISTERED NUMBER: 00217422)

STRATEGIC REPORT
for the year ended 30 April 2024

The directors present their strategic report for the year ended 30 April 2024.

We are presenting a balanced and comprehensive review of the performance of our business during the year and its position at the year end. The review is consistent with the size and nature of our business taking into account the risks and uncertainties that we face.

REVIEW OF BUSINESS
The year to April 2024 has seen the business in a period of stability following the impacts of the global pandemic and supply chain challenges in recent years. However, the trading results were seriously impaired by the exceptional costs of settling a claim relating to asbestos damages in the 1970s.

PRINCIPAL RISKS AND UNCERTAINTIES
Whilst it is less widespread, there are still some ongoing concerns over the availability and extended lead times on some products due to the current global supply problems. We continue to monitor and take actions to mitigate supply issues where possible.

Availability of certain models of engine due to the phase out of petrol and diesel engines by the major automotive manufacturers has now started to take effect. The company has invested in 'All Time Buy' stocks of certain engines which are known to have an on-going demand, whilst alternative options are developed.

KEY PERFORMANCE INDICATORS
Turnover has reduced by 8% compared to the previous year, whilst the company gross profit margin has remained broadly consistent at 23% (2022: 23%). This sustained margin is principally due to stability of the product sales mix and general customer consistency.

BALANCE SHEET AND FUNDING
The company's balance sheet remains strong with a healthy working capital position.

FUTURE DEVELOPMENTS
The company has, over the last 12 months, established relationships with new suppliers of both conventionally fuelled powertrain and alternatively fuelled drivetrain such as EV in an effort to become 'fuel agnostic' and able to supply the needs of all clients both current and potential. Further expansion of the product portfolio is being investigated with both powertrain and components suppliers.

OUTLOOK
The UK market has slowed which coupled with changes in supply policies and product range from our key suppliers will lead to a challenging year ahead. However, the new financial year has started steadily and on budget with a prediction for the second half of the financial year to show signs of some improvement.

The directors continue to monitor the performance of suppliers, competitors and the ongoing environment closely to ensure the company is well placed to maintain current customer relationships and to capitalise on any new opportunities. Consequently, it is the directors' view that the outlook for the business looks positive.

ON BEHALF OF THE BOARD:





N. Haycock - Director


7 October 2024

POWER TORQUE ENGINEERING LIMITED (REGISTERED NUMBER: 00217422)

REPORT OF THE DIRECTORS
for the year ended 30 April 2024

The directors present their report with the financial statements of the company for the year ended 30 April 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the distribution and modification of engines as well as the supplying of parts for original equipment.

DIVIDENDS
The total distribution of dividends for the year ended 30 April 2024 will be £ 75,000 .

FUTURE DEVELOPMENTS
Future developments have been detailed in the strategic report in accordance with s414C(11) CA 2006.

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

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

P Varney
A. Varney
J. Townley
N. Haycock
H Varney
Dr M Varney

Other changes in directors holding office are as follows:

D. Varney ceased to be a director after 30 April 2024 but prior to the date of this report.

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

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

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

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

POWER TORQUE ENGINEERING LIMITED (REGISTERED NUMBER: 00217422)

REPORT OF THE DIRECTORS
for the year ended 30 April 2024


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.

ON BEHALF OF THE BOARD:





N. Haycock - Director


7 October 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
POWER TORQUE ENGINEERING LIMITED

Opinion
We have audited the financial statements of Power Torque Engineering Limited (the 'company') for the year ended 30 April 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
_
In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 30 April 2024 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
POWER TORQUE 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 three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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

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

- Enquiry of management, those charged with governance around actual and potential litigation and claims;
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
- Performing audit work over the risk of management override of controls, 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.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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
POWER TORQUE 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.




Martin Gibbs FCCA (Senior Statutory Auditor)
for and on behalf of Dafferns LLP
Chartered Accountants
Statutory Auditor
One Eastwood
Harry Weston Road
Binley Business Park
Coventry
CV3 2UB

7 October 2024

POWER TORQUE ENGINEERING LIMITED (REGISTERED NUMBER: 00217422)

STATEMENT OF COMPREHENSIVE
INCOME
for the year ended 30 April 2024

2024 2023
Notes £    £    £    £   

TURNOVER 3 10,576,214 11,523,757

Cost of sales 8,173,474 8,869,073
GROSS PROFIT 2,402,740 2,654,684

Distribution costs 158,988 176,067
Administrative expenses 2,149,529 2,052,774
2,308,517 2,228,841
94,223 425,843

Other operating income 1,475 12,434
OPERATING PROFIT 5 95,698 438,277

Exceptional costs 6 95,384 -
314 438,277

Interest receivable and similar income 56,016 17,596
PROFIT BEFORE TAXATION 56,330 455,873

Tax on profit 7 20,404 60,490
PROFIT FOR THE FINANCIAL YEAR 35,926 395,383

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

35,926

395,383

POWER TORQUE ENGINEERING LIMITED (REGISTERED NUMBER: 00217422)

BALANCE SHEET
30 April 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 684,252 679,968

CURRENT ASSETS
Stocks 10 2,719,693 2,333,068
Debtors 11 1,609,086 2,825,376
Cash at bank and in hand 3,332,435 2,814,224
7,661,214 7,972,668
CREDITORS
Amounts falling due within one year 12 1,343,686 1,614,782
NET CURRENT ASSETS 6,317,528 6,357,886
TOTAL ASSETS LESS CURRENT
LIABILITIES

7,001,780

7,037,854

PROVISIONS FOR LIABILITIES 14 65,000 62,000
NET ASSETS 6,936,780 6,975,854

CAPITAL AND RESERVES
Called up share capital 15 83,333 83,333
Capital redemption reserve 16 16,667 16,667
Retained earnings 16 6,836,780 6,875,854
SHAREHOLDERS' FUNDS 6,936,780 6,975,854

The financial statements were approved by the Board of Directors and authorised for issue on 7 October 2024 and were signed on its behalf by:





N. Haycock - Director


POWER TORQUE ENGINEERING LIMITED (REGISTERED NUMBER: 00217422)

STATEMENT OF CHANGES IN EQUITY
for the year ended 30 April 2024

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 May 2022 83,333 6,517,971 16,667 6,617,971

Changes in equity
Dividends - (37,500 ) - (37,500 )
Total comprehensive income - 395,383 - 395,383
Balance at 30 April 2023 83,333 6,875,854 16,667 6,975,854

Changes in equity
Dividends - (75,000 ) - (75,000 )
Total comprehensive income - 35,926 - 35,926
Balance at 30 April 2024 83,333 6,836,780 16,667 6,936,780

POWER TORQUE ENGINEERING LIMITED (REGISTERED NUMBER: 00217422)

CASH FLOW STATEMENT
for the year ended 30 April 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 642,002 (649,997 )
Tax paid (41,108 ) (28,842 )
Net cash from operating activities 600,894 (678,839 )

Cash flows from investing activities
Purchase of tangible fixed assets (134,837 ) (206,836 )
Sale of tangible fixed assets 71,399 47,385
Interest received 55,755 17,317
Net cash from investing activities (7,683 ) (142,134 )

Cash flows from financing activities
Equity dividends paid (75,000 ) (37,500 )
Net cash from financing activities (75,000 ) (37,500 )

Increase/(decrease) in cash and cash equivalents 518,211 (858,473 )
Cash and cash equivalents at beginning
of year

2

2,814,224

3,672,697

Cash and cash equivalents at end of year 2 3,332,435 2,814,224

POWER TORQUE ENGINEERING LIMITED (REGISTERED NUMBER: 00217422)

NOTES TO THE CASH FLOW STATEMENT
for the year ended 30 April 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024 2023
£    £   
Profit before taxation 56,330 455,873
Depreciation charges 104,188 129,300
Profit on disposal of fixed assets (45,034 ) (38,520 )
Finance income (56,016 ) (17,596 )
59,468 529,057
Increase in stocks (386,625 ) (460,270 )
Decrease/(increase) in trade and other debtors 1,216,290 (1,042,981 )
(Decrease)/increase in trade and other creditors (247,131 ) 324,197
Cash generated from operations 642,002 (649,997 )

2. CASH AND CASH EQUIVALENTS

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

Year ended 30 April 2024
30.4.24 1.5.23
£    £   
Cash and cash equivalents 3,332,435 2,814,224
Year ended 30 April 2023
30.4.23 1.5.22
£    £   
Cash and cash equivalents 2,814,224 3,672,697


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.5.23 Cash flow At 30.4.24
£    £    £   
Net cash
Cash at bank and in hand 2,814,224 518,211 3,332,435
2,814,224 518,211 3,332,435
Total 2,814,224 518,211 3,332,435

POWER TORQUE ENGINEERING LIMITED (REGISTERED NUMBER: 00217422)

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 April 2024

1. STATUTORY INFORMATION

Power Torque 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 and functional currency of the company is the Pound Sterling (£).

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.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, typically on dispatch of the goods.

Tangible fixed assets
Tangible fixed assets are recognised at cost and subsequently measured under the historical cost model being cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes any direct expenditure incurred to bring the asset to its current location and condition necessary for the asset to work as intended by management.

Repairs and maintenance costs are charged to the Statement of Comprehensive Income in the period in which they are incurred.

Depreciation is provided at the following annual rates in order to write off the cost of each asset over its estimated useful life.

Freehold property- 2% on cost
Plant & machinery- 10% on cost
Fixtures & fittings- 10% on cost
Motor vehicles- 20% on cost
Computer equipment- 25% on cost

Any gains and losses on the disposal of tangible fixed assets are recognised in the Statement of Comprehensive Income in the year that the disposal takes place.

POWER TORQUE ENGINEERING LIMITED (REGISTERED NUMBER: 00217422)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 30 April 2024

2. ACCOUNTING POLICIES - continued

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. The cost of raw materials includes all costs in bringing the product to its current location and condition, whilst the cost of finished goods includes an attributable proportion of fixed and variable overheads based on normal levels of activity as applicable. Stocks are maintained on a first in, first out basis.

As stocks are sold, the carrying amount of those stocks is recognised as an expense in the year in which the related revenue is recognised.

At each reporting date, stocks are assessed for impairment and due allowances are made for obsolete and slow-moving items to reduce the carrying amount of these goods to their estimated selling price less costs to complete and sell. The amount of any write-down is recognised as an expense in the year that the write-down occurs. The reversal of any previous write-down is recognised as a reduction in the amount of stock expensed in the year that the reversal occurs.

Financial instruments
Basic financial instruments in debtors and creditors with no stated interest rate, and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the Statement of Comprehensive Income in other administrative expenses.

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

Current or deferred taxation assets and liabilities are not discounted.

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

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

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

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

Research and development expenditure
Research and development expenditure is recognised as an expense in the Statement of Comprehensive Income when it is incurred.

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.

POWER TORQUE ENGINEERING LIMITED (REGISTERED NUMBER: 00217422)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 30 April 2024

2. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme for its employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The company has no further obligations once contributions have been paid.

Contributions to the defined contribution scheme are charged to the Statement of Comprehensive Income as incurred.

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:

2024 2023
£    £   
United Kingdom 8,853,645 9,769,921
Europe 946,885 646,662
Rest of the world 775,684 1,107,174
10,576,214 11,523,757

4. EMPLOYEES AND DIRECTORS

20242023
££
Wages and salaries1,295,6331,300,568
Social security costs115,698119,842
Other pension costs77,82472,975
1,489,1551,493,385
The average monthly number of employees during the year was as follows:

Directors & management1212
Warehouse & production1415
Sales & administration1112
3739

2024 2023
£    £   
Directors' remuneration 364,291 350,725
Directors' pension contributions to money purchase schemes 32,826 28,889

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

Money purchase schemes 2 2

POWER TORQUE ENGINEERING LIMITED (REGISTERED NUMBER: 00217422)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 30 April 2024

4. EMPLOYEES AND DIRECTORS - continued

Information regarding the highest paid director is as follows:
2024 2023
£    £   
Emoluments etc 114,678 107,070
Pension contributions to money purchase schemes 17,874 14,783

5. OPERATING PROFIT

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

2024 2023
£    £   
Depreciation - owned assets 104,188 129,300
Profit on disposal of fixed assets (45,034 ) (38,520 )
Auditors' remuneration 12,500 12,000
Operating lease rentals- plant and machinery 14,017 19,540

6. EXCEPTIONAL ITEMS
2024 2023
£    £   
Exceptional costs (95,384 ) -

The costs reflect the company's liability in the settlement of a claim brought by a former employee relating to asbestos damages in the 1970s when the business was known by its former name, Rugby Autocar Company Limited.

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 17,404 70,620
Prior year - (35,130 )
Total current tax 17,404 35,490

Deferred tax:
Accelerated capital allowances 4,000 25,000
Other timing differences (1,000 ) -
Total deferred tax 3,000 25,000

Tax on profit 20,404 60,490

POWER TORQUE ENGINEERING LIMITED (REGISTERED NUMBER: 00217422)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 30 April 2024

7. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 56,330 455,873
Profit multiplied by the standard rate of corporation tax in the UK of
21.803% (2023 - 19.493%)

12,282

88,863

Effects of:
Expenses not deductible for tax purposes 8,157 1,154
Adjustments to tax charge in respect of previous periods - (35,130 )
Deferred tax rate and rounding differences (35 ) 5,603
Total tax charge 20,404 60,490

The main rate of Corporation Tax increased to 25% with effect from 01 April 2023.

8. DIVIDENDS
2024 2023
£    £   
Ordinary A shares of £1 each
Interim 30,000 15,000
Ordinary B shares of £1 each
Interim 45,000 22,500
75,000 37,500

POWER TORQUE ENGINEERING LIMITED (REGISTERED NUMBER: 00217422)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 30 April 2024

9. TANGIBLE FIXED ASSETS
Fixtures
Freehold Plant and and
property machinery fittings
£    £    £   
COST
At 1 May 2023 1,229,885 283,657 310,056
Additions - - -
Disposals - (264,077 ) (206,062 )
At 30 April 2024 1,229,885 19,580 103,994
DEPRECIATION
At 1 May 2023 817,704 273,401 248,063
Charge for year 24,120 4,775 10,398
Eliminated on disposal - (264,077 ) (206,063 )
At 30 April 2024 841,824 14,099 52,398
NET BOOK VALUE
At 30 April 2024 388,061 5,481 51,596
At 30 April 2023 412,181 10,256 61,993

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 May 2023 500,129 235,231 2,558,958
Additions 134,837 - 134,837
Disposals (147,399 ) (231,096 ) (848,634 )
At 30 April 2024 487,567 4,135 1,845,161
DEPRECIATION
At 1 May 2023 310,464 229,358 1,878,990
Charge for year 60,856 4,039 104,188
Eliminated on disposal (121,033 ) (231,096 ) (822,269 )
At 30 April 2024 250,287 2,301 1,160,909
NET BOOK VALUE
At 30 April 2024 237,280 1,834 684,252
At 30 April 2023 189,665 5,873 679,968

Included in cost of land and buildings is freehold land of £ 23,904 (2023 - £ 23,904 ) which is not depreciated.

POWER TORQUE ENGINEERING LIMITED (REGISTERED NUMBER: 00217422)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 30 April 2024

10. STOCKS
2024 2023
£    £   
Raw materials 2,264,469 1,615,109
Work-in-progress 204,995 433,092
Finished goods 250,229 284,867
2,719,693 2,333,068

A loss of £65,351 (2023: gain of £321) was recognised in cost of sales during the year due to an increase in the provision for slow-moving and obsolete stock.

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 1,557,083 1,967,727
Other debtors 6,477 6,782
Prepayments 45,526 850,867
1,609,086 2,825,376

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 1,032,766 1,024,114
Taxation 17,404 41,369
Social security and other taxes 76,530 160,715
Other creditors 19,433 16,601
Accruals 197,553 371,983
1,343,686 1,614,782

13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 5,840 14,017
Between one and five years - 5,840
5,840 19,857

14. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax
Other timing differences (5,000 ) (4,000 )
Accelerated capital allowances 70,000 66,000
65,000 62,000

POWER TORQUE ENGINEERING LIMITED (REGISTERED NUMBER: 00217422)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 30 April 2024

14. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 May 2023 62,000
Accelerated capital allowances 4,000
Other timing differences (1,000 )
Balance at 30 April 2024 65,000

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
33,333 Ordinary A £1 33,333 33,333
50,000 Ordinary B £1 50,000 50,000
83,333 83,333

16. RESERVES
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 May 2023 6,875,854 16,667 6,892,521
Profit for the year 35,926 35,926
Dividends (75,000 ) (75,000 )
At 30 April 2024 6,836,780 16,667 6,853,447

a) Retained earnings

Retained earnings represents cumulative profits and losses net of dividends and other adjustments.

b) Capital redemption reserve

The capital redemption reserve is a non-distributable reserve which represents previous purchases of the company's own shares.

17. PENSION COMMITMENTS

The company operates a defined contribution scheme for employees. The amount recognised as an expense in the period was £77,824 (2023: £72,975). At 30 April 2024 there were £19,433 of contributions that had not been paid over to the pension scheme (2023: £16,601).

18. POST BALANCE SHEET EVENTS

After the balance sheet date, the company repurchased 16,666 shares for a total consideration of £1,200,000.