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Registered number: 14189489









TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2024

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 
 
COMPANY INFORMATION


Directors
Mr C Campbell 
Mr P R Emmerson 
Mr A C A Reek 
W1S Directors Limited 
Mr K A Mooney (appointed 21 October 2024)
Mr L M Bevington (appointed 21 October 2024)




Company secretary
Cossey Cosec Services Limited



Registered number
14189489



Registered office
4th Floor
24 Old Bond Street

Mayfair

London

W1S 4AW




Independent auditors
PKF Smith Cooper Audit Limited
Statutory Auditors

Cornerblock

2 Cornwall Street

Birmingham

West Midlands

B3 2DX





 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 

CONTENTS



Page
Group strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Consolidated statement of comprehensive income
9
Consolidated balance sheet
10
Company balance sheet
11
Consolidated statement of changes in equity
12
Company statement of changes in equity
13
Consolidated statement of cash flows
14 - 15
Consolidated analysis of net debt
16
Notes to the financial statements
17 - 35


 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024

Introduction
 
The directors present their Strategic report and the consolidated financial statements for Trac Holdings Limited (formerly Rcap Eleven Limited) and its subsidiaries (together the "Group") for the year ended 30 April 2024.

Business review
 
The Group manufactures and supplies complex components into global blue chip customers, predominantly in the aero engine and power generation markets. The Group continues to focus on new engine development programmes in order to secure the long-term future. The Group is also focussed on a collaborative approach with its major customers in order to develop continuity of development and manufacture through improved efficiencies and investment in machining capabilities. 
The results of the Group for the year, as set out on pages 9 and 10, show a profit before tax of £2.83m. of this amount, £1.76m relates to a release of negative goodwill. The performance of the trading subsidiary, Trac Precision Solutions Limited, significantly improved reporting an operating profit £1.91m for the year, which was compared to the £1.46m operating loss reported in the prior period. 
In summary, the Group has made significant commercial and operational improvements that have delivered solid profitability. Those improvements, as well as investments in new equipment, have also built a strong base for the Group to continue to develop. The new package of work secured in the year is now beginning to come through as sales and overall, the business is expecting to grow both revenue and profitability going forward.
The overall net asset position of the Group has improved in line with profitability. As at 30 April 2024, net assets were £5.77m, compared to £2.93m in the prior period. Net assets excluding negative goodwill amounted to £10.40m as at 30 April 2024 (£9.31m as at 30 April 2023 ).

Principal risks and uncertainties
 
The process of risk acceptance and risk management is addressed through a framework of policies, procedures and internal controls. All policies are subject to Board approval and on going review by management, risk management and internal audit. Compliance with regulation, legal and ethical standards is a high priority for the Group and the compliance team and the Group finance department take on an important oversight role in this regard.
The Group uses various financial instruments including cash, invoice discounting facilities, trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Group's operations. However, their existence exposes the Group to a number of financial risks which are described in more detail below.
Currency risk
The Group is exposed to foreign exchange risk due to transactions completed in US Dollar and Euro. These are included in forecast transactions and are post assessment, hedging is considered where the risks facing the Group are outside acceptable limits.  Whilst the aim is to achieve an economic hedge, the Group does not adopt an accounting policy of hedge accounting for these financial statements. Foreign exchange differences on retranslation of these assets and liabilities are taken to the Consolidated Statement of Comprehensive Income.
Liquidity risk
The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs. The objective is to ensure a mix of funding methods offering flexibility and cost effectiveness to match the needs of the Group. Longer term borrowing is achieved by utilising finance leases and invoice discounting. The maturity of borrowings is set out in notes 18 and 19 to the financial statements.
 
Page 1

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024

Interest rate risk
During the reporting period the Group finances its operations through a mixture of finance leases, invoice discounting facilities and other loans. Whilst the loan and finance leases have a fixed interest rate, the invoice discounting facility is subject to variable interest rate.
Credit risk
The principal credit risk arises from its trade debtors. To manage credit risk, the directors set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the finance department on a regular basis in conjunction with debt ageing and collection history.

Research and development expenditure

Research and development expenditure is written off in the Consolidated Statement of Comprehensive Income in the year which it is incurred.

Future developments

The market for air travel and efficient power generation continues to grow and as the Group continues to align itself with the major providers of engine development. With that said, the opportunities within the aviation and power-generation sectors continue to promote the growth within the Group.

Key performance indicators

Management have made significant progress throughout the year in relation to key elements of our strategy. Management monitors the progress of the Group by reference to several key performance indicators including the following:

2024
2023
      £000
      £000
Turnover

24,757

10,261

Profit for the year

2,830

2,930

Net assets (excluding negative goodwill)

10,396

9,308


Management believe that they have adequate metrics in place to drive the business.


This report was approved by the board and signed on its behalf.



Mr K A Mooney
Director

Date: 22 October 2024

Page 2

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024

The directors present their report and the financial statements for the year ended 30 April 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the Company is that of a holding company.

Results and dividends

The profit for the year, after taxation, amounted to £2,830,000 (2023 - £2,930,000).

No dividends were paid during the year and no dividend is recommended by the directors.

Directors

The directors who served during the year were:

Mr C Campbell 
Mr P R Emmerson 
Mr A C A Reek 
W1S Directors Limited              Mr K A Mooney (appointed 21 October 2024)           Mr L M Bevington (appointed 21 October 2024) 

Page 3

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024

Going concern

The Directors have reviewed the current performance of the business as well as future expectations. The Group  has prepared cash flow forecasts to ensure that sufficient finance will be available to meet obligations as they fall due, in line with the Group's business plan, for a period of not less than twelve months from the date of signature of these financial statements.

Matters covered in the Group strategic report

The directors have chosen to set out in the Strategic report information required to be stated in the Directors report including a review of the business and principal risks and uncertainties.
An indication of the likely future developments in the business and details of research and development activities undertaken during the financial year have been included in the Strategic report.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

Details of post balance sheet events affecting the Group are disclosed in note 30.

Auditors

The auditorsPKF Smith Cooper Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





Mr K A Mooney
Director

Date: 22 October 2024

Page 4

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 

Opinion


We have audited the financial statements of Trac Holdings Limited (formerly Rcap Eleven Limited) (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 April 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 Group's and of the parent Company's affairs as at 30 April 2024 and of the Group's 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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the 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 directors with respect to going concern are described in the relevant sections of this report.


Page 5

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED) (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion 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 Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' 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:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company 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 Directors' responsibilities statement set out on page 3, 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 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 directors are responsible for assessing the Group's and 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 directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.

Page 6

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED) (CONTINUED)



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 an Auditors' 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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Based on our understanding of the Group and industry, key laws and regulations that we identified included:

Companies Act;
Tax legislation; and
Health and safety and employment legislation.

We identified that the principal risk of fraud or non-compliance with laws and regulations related to:

Management bias in respect of accounting estimates and judgements made;
Management override of controls; and
Posting of unusual journals or transactions.

We focused on those areas that could give rise to a material misstatement in the Group's financial statements.

Our procedures included, but were not limited to:

Enquiry of management and those charged with governance around actual and potential litigation and claims, including instances of non-compliance with laws and regulations and fraud;
Reviewing minutes of meetings of those charged with governance, where available;
Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and fraud;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and
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, in particular the valuation of stock and the release of negative goodwill.

It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.







Page 7

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED) (CONTINUED)


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 Auditors' report.


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 2006Our 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 Auditors' 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.





Stephen Newman (Senior statutory auditor)
  
for and on behalf of
PKF Smith Cooper Audit Limited
 
Statutory Auditors
  
Cornerblock
2 Cornwall Street
Birmingham
West Midlands
B3 2DX

22 October 2024
Page 8

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024

Year ended
30 April
Period ended
30 April
2024
2023
Note
£000
£000

  

Turnover
 4 
24,757
10,261

Cost of sales
  
(20,660)
(9,592)

Gross profit
  
4,097
669

Administrative expenses
  
(679)
2,483

Operating profit
 5 
3,418
3,152

Interest payable and similar expenses
 9 
(588)
(222)

Profit before taxation
  
2,830
2,930

Tax on profit
 10 
-
-

Profit for the financial year/period
  
2,830
2,930

Profit for the year/period attributable to:
  

Owners of the parent Company
  
2,830
2,930

  
2,830
2,930

There was no other comprehensive income for 2024 (2023: £NIL).

The notes on pages 17 to 35 form part of these financial statements.

Page 9

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
REGISTERED NUMBER: 14189489

CONSOLIDATED BALANCE SHEET
AS AT 30 APRIL 2024

2024
2023
Note
£000
£000

Fixed assets
  

Negative goodwill
 12 
(4,623)
(6,378)

Tangible assets
 13 
4,219
4,510

  
(404)
(1,868)

Current assets
  

Stocks
 15 
7,222
6,871

Debtors: amounts falling due within one year
 16 
4,168
3,434

Cash at bank and in hand
 17 
753
1,160

  
12,143
11,465

Creditors: amounts falling due within one year
 18 
(5,684)
(5,720)

Net current assets
  
 
 
6,459
 
 
5,745

Total assets less current liabilities
  
6,055
3,877

Creditors: amounts falling due after more than one year
 19 
(281)
(947)

  

Net assets
  
5,774
2,930


Capital and reserves
  

Called up share capital 
 23 
-
-

Share premium account
 24 
14
-

Profit and loss account
 24 
5,760
2,930

  
5,774
2,930


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Mr K A Mooney
Director

Date: 22 October 2024

The notes on pages 17 to 35 form part of these financial statements.

Page 10

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
REGISTERED NUMBER: 14189489

COMPANY BALANCE SHEET
AS AT 30 APRIL 2024

2024
2023
Note
£000
£000

Fixed assets
  

Investments
 14 
1,210
1,210

  
1,210
1,210

Current assets
  

Debtors: amounts falling due within one year
 16 
5,000
40

Cash at bank and in hand
 17 
25
81

  
5,025
121

Creditors: amounts falling due within one year
 18 
(6,522)
(582)

Net current liabilities
  
 
 
(1,497)
 
 
(461)

Total assets less current liabilities
  
(287)
749

  

Creditors: amounts falling due after more than one year
 19 
-
(850)

  

Net liabilities
  
(287)
(101)


Capital and reserves
  

Called up share capital 
 23 
-
-

Share premium account
 24 
14
-

Profit and loss account brought forward
  
(101)
-

Profit/(loss) for the period
  
(200)
(101)

Profit and loss account carried forward
 24 
(301)
(101)

  
(287)
(101)


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


Mr K A Mooney
Director

Date: 22 October 2024

The notes on pages 17 to 35 form part of these financial statements.

Page 11

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024


Called up share capital
Share premium account
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£000
£000
£000
£000
£000


At 22 June 2022
-
-
-
-
-



Profit for the period
-
-
2,930
2,930
2,930

Shares issued during the period
-
-
-
-
-



At 1 May 2023
-
-
2,930
2,930
2,930



Profit for the year
-
-
2,830
2,830
2,830

Shares issued during the year
-
14
-
14
14


At 30 April 2024
-
14
5,760
5,774
5,774


The notes on pages 17 to 35 form part of these financial statements.

Page 12

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024


Called up share capital
Share premium account
Profit and loss account
Total equity

£000
£000
£000
£000


At 22 June 2022
-
-
-
-



Loss for the period
-
-
(101)
(101)

Shares issued during the period
-
-
-
-



At 1 May 2023
-
-
(101)
(101)



Loss for the year
-
-
(200)
(200)

Shares issued during the year
-
14
-
14


At 30 April 2024
-
14
(301)
(287)


The notes on pages 17 to 35 form part of these financial statements.

Page 13

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024

2024
2023
£000
£000

Cash flows from operating activities

Profit for the financial period
2,830
2,930

Adjustments for:

Release of negative goodwill
(1,755)
(3,835)

Depreciation of tangible fixed assets
776
387

Profit on disposal of tangible assets
(4)
-

Interest payable
588
222

Increase in stocks
(351)
(1,492)

Increase in debtors
(733)
(433)

Decrease in creditors
(315)
(221)

Net cash generated from operating activities

1,036
(2,442)


Cash flows from investing activities

Purchase of tangible fixed assets
(245)
(65)

Sale of tangible fixed assets
4
-

Purchase of subsidiary undertakings
-
1,430

Net cash from investing activities

(241)
1,365
Page 14

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024


2024
2023

£000
£000



Cash flows from financing activities

Issue of ordinary shares
14
-

(Repayments) / advances on invoice financing facilities
(710)
1,611

Other new loans
-
1,000

Interest paid
(488)
(172)

Repayment of hire purchase liabilities
(18)
(2)

Loan arrangement fees paid
-
(200)

Net cash used in financing activities
(1,202)
2,237

Net (decrease)/increase in cash and cash equivalents
(407)
1,160

Cash and cash equivalents at beginning of year
1,160
-

Cash and cash equivalents at the end of year
753
1,160


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
753
1,160

753
1,160


The notes on pages 17 to 35 form part of these financial statements.

Page 15

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 APRIL 2024






At 1 May 2023
Cash flows
New finance leases
Other non-cash changes
At 30 April 2024
£000

£000

£000

£000

£000

Cash at bank and in hand

1,160

(407)

-

-

753

Debt due after 1 year

(1,000)

-

-

1,000

-

Debt due within 1 year

(1,611)

710

-

(1,000)

(1,901)

Finance leases

(115)

18

(240)

-

(337)


(1,566)
321
(240)
-
(1,485)

The notes on pages 17 to 35 form part of these financial statements.

Debt due within 1 year includes the Group's invoice financing facilities totalling £901,000 (2023: £1,611,000) which are included in other creditors as detailed in note 18.

Page 16

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

1.


General information

Trac Holdings Limited (formerly Rcap Eleven Limited) is a private company, limited by shares, registered in England, United Kingdom. The Company's registration number and registered office address can be found on the Company Information page. The principal activity of the Company is disclosed in the Directors report.
The Group's principal place of business is 9A Marshfield Bank Business Park, Middlewich Road, Crewe, Cheshire, CW2 8UY.
These financial statements cover a 12 month period from 1 May 2023 to 30 April 2024 which is the first full year of reporting for the Group. The Company was incorporated on 22 June 2022 and on 27 October 2022 it acquired 100% of the share capital of Broomco (4266) Limited and its subsidiary undertakings. The prior year financial statements covered a 6 month period from the date of acquisition up to 30 April 2023 to align the group reporting period to that of its subsidiary undertakings and, as a result, the current and comparative year are not entirely comparable.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The presentation currency of these financial statements is Sterling. All amounts in the financial statements have been rounded to the nearest £1,000.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases. 

Page 17

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.3

Going concern

These financial statements have been prepared on a going concern basis. The current economic conditions present risks for all businesses. In response to such conditions, the directors have carefully considered these risks, including the assessment of uncertainty on future trading projection for a period of at least 12 months from the date of signing the financial statements, and the extent to which they might affect the preparation of the financial statements on a going concern basis.
The directors have confirmed that they believe that the Group will be operating on a going concern basis. Demand from existing customers remains strong and coupled with the new product introduction the directors envisage the Group's position will enable to continue to grow and invest in machining capabilities, after taking into consideration possible downsides, which include increased energy costs, inflationary increases and increases to interest rates.
The consolidated balance sheet is reflecting a net current asset position.
Based on this assessment, the directors consider that the Group maintains an appropriate level of liquidity sufficient to meet the demands of the business. Consequently, the directors are confident that the Group will have sufficient funds to continue to meet it's liabilities as they fall due for at least 12 months from the date of approval of the financial statements and, therefore, have prepared the financial statements on a going concern basis.

 
2.4

Foreign currency translation

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date.
Revenues and costs expressed in foreign currencies are translated into Sterling rates of exchange ruling on the date on which the transactions occur, except for transactions to be settled at a contracted rate. Differences arising on the translation of such items are dealt with in the Consolidated Statement of Comprehensive Income.

  
2.5

Finance leases

Minimum lease payments are apportioned between the finance charge and reduction of the outstanding liability using the rate implicit in the lease. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.

 
2.6

Turnover

Turnover is recognised when the risks and rewards of ownership have been transferred, which is usually on despatch or collection of goods by customers, and represents the amounts invoiced, excluding value added tax, in respect of the sale of goods and services to customers.

 
2.7

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to the Consolidated statement of comprehensive income on a straight-line basis over the lease term.

Page 18

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.8

Research and development

Expenditure on research and development is written off in the Consolidated statement of comprehensive income in the year in which it is incurred.

 
2.9

Finance costs

Finance costs are charged to the Consolidated statement of comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.10

Pensions

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. Contributions payable to the Group's pension scheme are charged to the Consolidated statement of comprehensive income in the period to which they relate.

 
2.11

Taxation

Current taxation
Tax on profit or loss for the year comprises current and deferred tax. Tax is recognised in the Consolidated statement of comprehensive income except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustments tax payable in respect of previous years.
Payment is made for any tax losses surrendered by companies within the group.

Deferred taxation
Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. Deferred tax is not recognised on permanent differences arising because certain types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or smaller than the corresponding income or expenses.
Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the balance sheet date.
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.

Page 19

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.12

Intangible assets

Goodwill
Goodwill represents the difference between amounts paid on the cost of business combinations and the acquirer's interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Negative goodwill arises where the purchase price of the business combination is below the fair value of the Group's share of it's identifiable assets and liabilities of the acquiree on acquisition. Subsequent to initial recognition, negative goodwill is recognised in the Consolidated statement of comprehensive income over the period in which the non-monetary assets acquired are recovered.
Negative goodwill on the non-monetary assets acquired is amortised through the Consolidated Statement of Comprehensive Income on the following basis:
 
Tangible fixed assets - as recovered, based on the depreciation or disposal of the relevant assets of the acquired subsidiaries.
Stock - as recovered based on the sale or disposal of stock of the acquired subsidiaries.

 
2.13

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes the original purchase price of the asset and the cost attributable to bringing the asset to its working condition for its intended use.

Depreciation is charged on a straight line basis at rates calculated to write down assets to estimated residual value over their expected useful life as follows:

Leasehold improvements
-
10%
Plant and machinery
-
4% - 20%
Fixtures and fittings
-
10% - 33%
Assets under construction
-
Not depreciated
Computer software
-
33%
Computer hardware
-
33%

The Group assesses at each reporting date whether tangible fixed assets are impaired. 
Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since the last annual reporting date in the pattern by which the Group expects to consume an asset's future economic benefits.

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.15

Stocks and work in progress

Stocks and work in progress are stated at the lower of cost and net realisable value. Cost is calculated using the first-in, first-out method. Work in progress and finished goods consist of material and direct labour costs, together with an appropriate proportion of production overheads.

Page 20

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.16

Debtors

Trade and other debtors are recognised initially at transaction price less attributable transaction costs.

 
2.17

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

 
2.18

Creditors

Trade and other creditors are recognised initially at transaction price plus attributable transaction costs.

 
2.19

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

  
2.20

Impairment

Financial assets (including trade and other debtors)
A financial asset not carried at fair value through the Consolidated statement of comprehensive income is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset can be estimated reliably.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset's original effective interest rate.
 
Page 21

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

For financial instruments measured at cost less impairment an impairment is calculated as the difference between its carrying amount and the best estimate of the amount that the Company would receive for the asset if it were to be sold at the reporting date. Interest on the impaired asset continues to be recognised through the unwinding of the discount. Impairment losses are recognised in the Consolidated Statement of Comprehensive Income. When subsequent events cause the amount of impairment loss to decrease, the decrease in impairment loss is reversed through the Consolidated Statement of Comprehensive Income.
Non-financial assets
The carrying amounts of the Group's non-financial assets, other than stocks, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated.
The recoverable amount of an asset is the greater of its value in use and its fair value less costs to sell. 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
An impairment loss is recognised if the carrying amount of an asset exceeds its estimated recoverable amount. Impairment losses are recognised in the Consolidated Statement of Comprehensive Income. An impairment loss is reversed if and only if the reasons for the impairment have ceased to apply.
Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The Directors are continually evaluating estimates and judgements based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results.
The Directors consider that the following are critical account judgements in applying the Group's accounting policies.
Carrying value of stocks
One key source of estimation uncertainty at the balance sheet date relates to the carrying value of stock and work in progress. Management continually assesses the recoverability of its assets in light of customer demand.




 
Page 22

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

3.Judgements in applying accounting policies (continued)

Negative goodwill
The Directors have assessed the period over which the negative goodwill which has arisen on business combinations during the year should be released. A review of the non-monetary assets which were acquired as part of the business combination, which were tangible fixed assets and stocks, was performed and the Directors have made an appropriate assessment as to the value of non-monetary assets which have been recovered up to the balance sheet date and have calculated the amount of negative goodwill which should be released up to the year end. The Directors continue to assess the period over which the non-monetary assets will be recovered and will make appropriate judgements in future periods.


4.


Turnover

The whole of the turnover is attributable to the principal activity of the Group.

Analysis of turnover by country of destination:

Year ended
30 April
Period ended
30 April
2024
2023
£000
£000

United Kingdom
7,938
2,968

Rest of the world
16,819
7,293

24,757
10,261



5.


Operating profit

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

Year ended
30 April
Period ended
30 April
2024
2023
£000
£000

Operating lease expense
356
156

Depreciation
776
387

Profit on disposal of fixed assets
(4)
(1)

Foreign exchange losses
62
218

Restructuring costs
183
209

Release of negative goodwill arising on acquisition
(1,755)
(3,835)

Page 23

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

6.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


Year ended
30 April
Period ended
30 April
2024
2023
£000
£000

Fees payable to the Group's auditors for the audit of the Group's financial statements
6
5

Fees payable to the Group's auditors for the audit of the Group's subsidiary undertakings
56
54


7.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Year ended 30 April 2024
Period ended 30 April
2023
£000
£000


Wages and salaries
7,001
3,406

Social security costs
759
362

Cost of defined contribution scheme
806
384

8,566
4,152


The average monthly number of employees, including the directors, during the year was as follows:


      Year ended
       30 April
     Period ended
        30 April
        2024
        2023
            No.
            No.







Management and administration
77
78



Production
86
91

163
169

The Company has no employees other than the directors, whose remuneration is disclosed in note 8.

Page 24

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

8.


Directors' remuneration



During the year, the Group incurred directors fees totalling £60,000 (2023: £30,000).


9.


Interest payable and similar expenses

Year ended
30 April
Period ended
30 April
2024
2023
£000
£000


Bank overdraft interest
83
20

Other loan interest
200
101

Invoice discounting
305
101

588
222


10.


Taxation


Year ended
30 April
Period ended
30 April
2024
2023
£000
£000

Current tax


Current tax on profits for the year
-
-

-
-


Total current tax
-
-

Deferred tax


Origination and reversal of timing differences
-
-

Total deferred tax
-
-


Tax on profit
-
-
Page 25

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
 
10.Taxation (continued)


Factors affecting tax charge for the year/period

The tax assessed for the year/period is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

Year ended
30 April
Period ended
30 April
2024
2023
£000
£000


Profit on ordinary activities before tax
2,830
2,930


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
708
557

Effects of:


Non-taxable release of negative goodwill
(438)
(729)

Expenses not deductible for tax purposes
20
3

Capital allowances for the year/period in (excess of) / lower than depreciation
(441)
40

Short-term timing differences
8
7

Movement in tax losses carried forward
143
161

Differences in tax rates
-
(39)

Total tax charge for the year/period
-
-


Factors that may affect future tax charges

The Group has estimated tax losses carried forward of £100,467,000 (2023: £99,885,000) which are expected to offset against future trading profits of the Group.
There is an estimated unrecognised deferred tax asset of £27,106,000 (2023: £27,399,000) which will be recognised when the directors foresee future taxable profits.


11.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The loss after tax of the parent Company for the year/period was £200,000 (2023 - loss £101,000).

Page 26

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

12.


Intangible assets

Group





Negative goodwill

£000



Cost


At 1 May 2023
(10,213)



At 30 April 2024

(10,213)



Amortisation


At 1 May 2023
(3,835)


Released during the year
(1,755)



At 30 April 2024

(5,590)



Net book value



At 30 April 2024
(4,623)



At 30 April 2023
(6,378)



Company
There are no intangible fixed assets held in the Parent Company

Page 27

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

13.


Tangible fixed assets

Group






Leasehold improve-ments
Plant and machinery
Computer hardware
Computer software
Assets under construction
Total

£000
£000
£000
£000
£000
£000



Cost


At 1 May 2023
34
4,687
2
-
174
4,897


Additions
-
-
-
-
485
485


Disposals
-
(31)
-
-
-
(31)


Transfers between classes
-
207
22
92
(321)
-



At 30 April 2024

34
4,863
24
92
338
5,351



Depreciation


At 1 May 2023
1
386
-
-
-
387


Charge for the year
7
749
4
16
-
776


Disposals
-
(31)
-
-
-
(31)



At 30 April 2024

8
1,104
4
16
-
1,132



Net book value



At 30 April 2024
26
3,759
20
76
338
4,219



At 30 April 2023
33
4,301
2
-
174
4,510

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£000
£000



Plant and machinery
144
-

Assets under construction
242
130

386
130

Page 28

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

14.


Fixed asset investments

Company





Investments in subsidiary companies

£000



Cost


At 1 May 2023
1,210



At 30 April 2024
1,210





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Principal activity

Class of shares

Holding

Broomco (4266) Limited
Holding company
Ordinary
100%
Trac Group Limited*
Holding company
Ordinary
100%
Trac Precision Solutions Limited*
Design and manufacture of turbine components
Ordinary
100%
Trac Aero Services Limited*
Dormant
Ordinary
100%

* Denotes held indirectly.
The registered office address of all subsidiary undertakings is 4th Floor, 24 Old Bond Street, London, England, W1S 4AW.
On 24 September 2024, the directors lodged an application with Companies House to strike off Trac Aero Services Limited. The carrying value of this investment is £400.


15.


Stocks

Group
Group
2024
2023
£000
£000

Raw materials and consumable tools
1,304
1,160

Work in progress
5,906
5,570

Finished goods
12
141

7,222
6,871


The carrying value of stocks are stated net of impairment losses totalling £1,213,000 (2023: £1,301,000).

Page 29

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

16.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000


Trade debtors
3,705
2,844
-
-

Amounts owed by group undertakings
-
-
5,000
-

Other debtors
118
353
-
40

Prepayments and accrued income
345
237
-
-

4,168
3,434
5,000
40



17.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Cash at bank and in hand
753
1,160
25
81


Page 30

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

18.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Other loans
950
-
950
-

Trade creditors
2,227
2,757
-
-

Amounts owed to group undertakings
-
-
5,530
490

Other taxation and social security
184
178
-
-

Obligations under finance lease and hire purchase contracts
56
18
-
-

Other creditors
901
1,611
-
-

Accruals and deferred income
1,366
1,156
42
92

5,684
5,720
6,522
582


Included in other creditors is £901,000 (2023: £1,611,000)  in respect of the Group's invoice financing facility. This facility is secured by a fixed and floating charge over the assets of the Group.
Other loans include the principal amount of £1,000,000 which is repayable on 27 October 2024, net of the remaining £50,000 of unamortised loan arrangement fee which has been capitalised and is being released over the term of the loan. Other loans are secured by fixed and floating charges over the assets of the Group.

Obligations under finance leases and hire purchase contracts are secured against the assets to which they relate.


19.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Other loans
-
850
-
850

Obligations under finance leases and hire purchase contracts
281
97
-
-

281
947
-
850


In the prior year, other loans include the principal amount of £1,000,000 which is repayable on 27 October 2024, net of the remaining £150,000 unamortised loan arrangement fee which has been capitalised and is being released over the term of the loan. Other loans are secured by fixed and floating charges over the assets of the Group.
Obligations under finance leases and hire purchase contracts are secured against the assets to which they relate.

Page 31

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

20.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Amounts falling due within one year

Other loans
950
-
950
-

Amounts falling due 1-2 years

Other loans
-
850
-
850



950
850
950
850



21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2024
2023
£000
£000

Within one year
56
18

Between 1-5 years
281
97

337
115

Page 32

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

22.


Financial instruments

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Financial assets

Financial assets measured at transaction price less impairment
3,705
2,844
5,000
-

Financial assets measured at fair value through profit and loss
753
1,160
25
81

4,458
4,004
5,025
81


Financial liabilities

Financial liabilities measured at transaction price
(4,415)
(5,333)
(6,480)
(1,340)


Financial assets measured at transaction price less impairment comprise of trade debtors and amounts due from group undertakings.


Financial assets that are measured at fair value through profit and loss incude cash at bank and in hand.


Financial liabilities measured at transaction price comprise trade creditors, amounts owed to group undertakings, obligations under finance lease and hire purchase contracts, other creditors and other loans.


23.


Share capital

2024
2023
£
£
Authorised, allotted, called up and fully paid



15,520 (2023 - 16,000) A Ordinary shares of £0.0001 each
1.55
1.60
480 (2023 - ) A1 Ordinary shares of £0.0001 each
0.05
-
1,778 (2023 - ) B Ordinary shares of £0.0001 each
0.18
-

1.78

1.60


Rights, preferences and restrictions
A and A1 Ordinary Shares
These classes of shares have the rights to vote, participate in a return of capital and to receive dividends.
B Ordinary Shares
This class of shares has the right to participate in a return of capital but do not have the right to vote or to receive dividends.

Page 33

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

23.Share capital (continued)

During the year the Company issued 1,778 B Ordinary shares with a nominal value per share of £0.0001  with an aggregate nominal value of £0.18. The consideration received was £14,242 with the difference between the nominal value and the amount paid being treated as share premium. The Company also subdivided 480 A Ordinary Shares with a nominal value of £0.0001 each into 480 A1 Ordinary Shares with a nominal value of £0.0001 each.


24.


Reserves

Share premium account

This reserve records all amounts paid for Ordinary shares in excess of their nominal value.

Profit and loss account

This reserve records all current and prior period retained profits and losses.


25.


Pension commitments

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £806,000 (2023: £384,000). Contributions totaling £71,000 (2023: £64,000) were payable to the fund at the balance sheet date and are included in accruals.


26.


Contingent liabilities

The Company has given a guarantee, supported by a debenture, in relation to the amounts owed by Trac Precision Solutions Limited on its invoice financing facilities. The amount guaranteed at 30 April 2024 amounted to £901,000 (2023: £1,611,000).


27.


Commitments under operating leases

At 30 April 2024 the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023
£000
£000

Not later than 1 year
393
455

Later than 1 year and not later than 5 years
1,068
1,797

1,461
2,252
Page 34

 
TRAC HOLDINGS LIMITED (FORMERLY RCAP ELEVEN LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

28.


Related party transactions

The Company has taken advantage of the exemption, as permitted by section 33.1A 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.
During the year, the Group incurred company secretarial services from a company under common control totalling £5,000 (2023: £2,000). At the balance sheet date, the Group owed £500 (2023: £500) to this company.
During the year, the Group incurred management fees from a company under common control totaling £242,000 (2023: £129,000). At the balance sheet date, the Company owed £24,000 (2023: £nil) to this company.
At the balance sheet date, the Group owed £1,000,000 (2023: £1,000,000) to a company under common control. This is a secured fixed term loan agreement which carries an interest rate of 10% per annum and is due for repayment on 27 October 2024. The loan is secured by fixed and floating charges over the assets of the Group. During the year, the interest payable by the Group in respect of these loans totalled £100,000 (2023: £50,000) and an arrangement fee of £nil (2023: £200,000) was paid.


29.


Key management personnel

During the period amounts paid to the Group's key management personnel in relation to their services totalled £204,000 (2023: £115,000). 


30.


Post balance sheet events

On 24 September 2024, the directors lodged an application with Companies House to strike off Trac Aero Services Limited, a subsidiary undertaking of the Group.


31.


Ultimate controlling party

The ultimate controlling party is RCapital Limited by virtue of its majority holding of the issued share capital of Trac Holdings Limited (formerly Rcap Eleven Limited).

Page 35