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Registration number: 01559267

Motortronics UK Limited

Filleted Financial Statements

for the Year Ended 31 July 2024

 

Motortronics UK Limited

Contents

Statement of Financial Position

1

Notes to the Financial Statements

2 to 10

 

Motortronics UK Limited

(Registration number: 01559267)
Statement of Financial Position as at 31 July 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

4

54,350

67,077

Tangible assets

5

177,105

233,402

 

231,455

300,479

Current assets

 

Stocks

6

1,889,644

1,554,033

Debtors

7

1,297,690

1,826,567

Cash at bank and in hand

 

25,190

227,518

 

3,212,524

3,608,118

Creditors: Amounts falling due within one year

8

(1,394,650)

(1,646,614)

Net current assets

 

1,817,874

1,961,504

Total assets less current liabilities

 

2,049,329

2,261,983

Creditors: Amounts falling due after more than one year

8

(175,000)

(325,000)

Net assets

 

1,874,329

1,936,983

Capital and reserves

 

Called up share capital

68,750

68,750

Share premium reserve

132,613

132,613

Capital redemption reserve

150,000

150,000

Profit and loss account

1,522,966

1,585,620

Shareholders' funds

 

1,874,329

1,936,983

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Statement of Comprehensive Income.

Approved and authorised by the Board on 17 October 2024 and signed on its behalf by:
 


K F King
Director

 

Motortronics UK Limited

Notes to the Financial Statements for the Year Ended 31 July 2024

1

General information

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

The address of its registered office is:
Bristow House
Gillard Way
Lee Mill Industrial Estate
Ivybridge
Devon
PL21 9GG

Principal activity

The principal activity of the company is the development and manufacture of control devices for industrial electric motors incorporating energy saving features.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in sterling which is the functional currency of the entity.

Going concern

The financial statements have been prepared on a going concern basis.

 

Motortronics UK Limited

Notes to the Financial Statements for the Year Ended 31 July 2024 (continued)

2

Accounting policies (continued)

Audit report

The Independent Auditor's Report was unqualified. . The name of the Senior Statutory Auditor who signed the audit report on 23 October 2024 was Shona Godefroy FCCA, who signed for and on behalf of Westcotts (SW) LLP.

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

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome.

Revenue recognition

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

The company recognises revenue when: The amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.

Tax

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Tangible assets

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

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

Depreciation

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

Asset class

Depreciation method and rate

Leasehold property

over the lease term

Plant and machinery

20-33% straight line

Fixtures and fittings

20-33% straight line

Motor vehicles

25% straight line

 

Motortronics UK Limited

Notes to the Financial Statements for the Year Ended 31 July 2024 (continued)

2

Accounting policies (continued)

Equipment

20-33% straight line

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. 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 capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively.

Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Intangible assets

Separately acquired trademarks and licences are shown at historical cost.

Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.

Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Patents

10% straight line

Product approvals

20% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. In the statement of financial position, bank overdrafts are shown within borrowing or current liabilities.

 

Motortronics UK Limited

Notes to the Financial Statements for the Year Ended 31 July 2024 (continued)

2

Accounting policies (continued)

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Costs include all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.

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

Borrowings

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

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

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

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Financial instruments

Recognition and measurement
A financial asset or a financial liability is recognised only when the company becomes party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 

Motortronics UK Limited

Notes to the Financial Statements for the Year Ended 31 July 2024 (continued)

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 32 (2023 - 32).

4

Intangible assets

Other intangible assets
£

Total
£

Cost or valuation

At 1 August 2023

224,229

224,229

Additions internally developed

10,225

10,225

At 31 July 2024

234,454

234,454

Amortisation

At 1 August 2023

157,201

157,201

Amortisation charge

22,903

22,903

At 31 July 2024

180,104

180,104

Carrying amount

At 31 July 2024

54,350

54,350

At 31 July 2023

67,077

67,077

 

Motortronics UK Limited

Notes to the Financial Statements for the Year Ended 31 July 2024 (continued)

5

Tangible assets

Short leasehold land and buildings
£

Fixtures and fittings
£

Plant and machinery
£

Office equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 August 2023

556,204

42,663

399,508

117,886

1,395

1,117,656

Additions

3,481

4,463

7,742

7,601

-

23,287

Disposals

-

-

(959)

-

(999)

(1,958)

At 31 July 2024

559,685

47,126

406,291

125,487

396

1,138,985

Depreciation

At 1 August 2023

387,113

35,278

351,206

109,512

1,145

884,254

Charge for the year

42,925

3,693

26,218

6,125

250

79,211

Eliminated on disposal

-

-

(586)

-

(999)

(1,585)

At 31 July 2024

430,038

38,971

376,838

115,637

396

961,880

Carrying amount

At 31 July 2024

129,647

8,155

29,453

9,850

-

177,105

At 31 July 2023

169,091

7,385

48,302

8,374

250

233,402

Included within the net book value of land and buildings above is £129,647 (2023 - £169,091) in respect of short leasehold land and buildings.
 

6

Stocks

2024
£

2023
£

Stock

1,889,644

1,554,033

 

Motortronics UK Limited

Notes to the Financial Statements for the Year Ended 31 July 2024 (continued)

7

Debtors

Note

2024
£

2023
£

Trade debtors

 

983,417

1,528,013

Amounts owed by group undertakings

12

182,411

130,066

Other debtors

 

41,822

48,869

Prepayments

 

90,040

119,619

 

1,297,690

1,826,567

8

Creditors

Creditors: amounts falling due within one year

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

10

820,102

837,080

Trade creditors

 

376,581

668,071

Amounts owed to group undertakings

12

141,270

82,410

Accruals and deferred income

 

13,473

12,153

Other creditors

 

43,224

46,900

 

1,394,650

1,646,614

The bank overdraft is secured by a fixed and floating charge over the assets of the company. The shareholders have provided the bank with a guarantee on behalf of the company, limited to £200,000.

Included within other creditors is income received from a government grant as part of the company's move to the new premises at Gillard Way. The government grant was intended to help fund job creation and retention.

Creditors: amounts falling due after more than one year

Note

2024
£

2023
£

Due after one year

 

Loans and borrowings

10

175,000

325,000

 

Motortronics UK Limited

Notes to the Financial Statements for the Year Ended 31 July 2024 (continued)

9

Reserves

The share premium account represents the accumulation of funds received in excess of par value for shares issued.

The capital redemption reserve represents the accumulation of funds used to redeem capital instruments previously issued by the company. This reserve is not distributable.

The profit and loss account records retained earnings and accumulated losses.

10

Loans and borrowings

Non-current loans and borrowings

2024
£

2023
£

Bank borrowings

175,000

325,000

Current loans and borrowings

2024
£

2023
£

Bank borrowings

150,000

150,000

Bank overdrafts

670,102

687,080

820,102

837,080

11

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

74,000

74,000

Later than one year and not later than five years

224,750

243,750

Later than five years

64,167

119,167

362,917

436,917

The amount of non-cancellable operating lease payments recognised as an expense during the year was £Nil (2023 - £Nil).

 

Motortronics UK Limited

Notes to the Financial Statements for the Year Ended 31 July 2024 (continued)

12

Related party transactions

Net transaction value

2024
£

2023
£

2022
£

Phasetronics Inc

(31,651)

222,529

106,691

Motortronics International Korea

69,636

223,550

5,914

37,985

446,079

112,605

Balance owed by/(owed to)

2024
£

2023
£

2022
£

Phasetronics Inc

34,751

47,733

97,188

Motortronics International Korea

6,389

(77)

(21,081)

Fairford Electronics Holdings Limited

1,410

1,250

-

42,550

48,906

76,107

During the period there were arms length transactions of sales amounting to £486,796 (2023: £307,454) and purchases amounting to £448,812 (2023: £306,432) between Motortronics UK Ltd and the shareholder companies (Phasetronics Inc/Motortronics US and Motortronics International Korea).

13

Parent undertaking

The company is jointly owned by Fairford Electronics Holdings Ltd and Motortronics International Korea, companies which are respectively under the ultimate control of Mr James Mitchell, Mrs Joyce Mitchell and Mr Brian Hong.