Company registration number 09432835 (England and Wales)
Tritech Precision Products (Yeovil) Limited
Annual report and financial statements
For the year ended 31 March 2024
Tritech Precision Products (Yeovil) Limited
Company information
Directors
Mr F D Neterwala
Mr A F Neterwala
Mr S J Goodier
Secretary
Mr P White
Company number
09432835
Registered office
Bridge Road North
Wrexham Industrial Estate
Clwyd
Wales
LL13 9PS
Auditor
DJH Audit Limited
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Business address
Buckland Road
Pen Mill Trading Estate
Yeovil
Somerset
BA21 5EF
Tritech Precision Products (Yeovil) Limited
Contents
Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 10
Statement of comprehensive income
11
Statement of financial position
12
Statement of changes in equity
13
Notes to the financial statements
14 - 27
Tritech Precision Products (Yeovil) Limited
Strategic report
For the year ended 31 March 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

 

The Tritech Precision Products (Yeovil) business is a centre of excellence for providing investment casting products and services. Ultimate ownership of the group headed by Neterson Holdings Limited is with Chemical and Ferro Alloys Private Limited which is part of the Neterwala group of companies. The origins of the group in investment casting still dominate activities, but continuous later developments, which included new acquisitions, new applications and process improvements, have seen the business go from strength to strength.

Review of business

The financial year ended 31 March 2024 saw continued growth of all of the strategic markets to which the company operates within.

 

The company saw a significant increase in turnover to £8.7m (2023: £6.9m) in the year, a 26% increase on the prior year.

 

This growth is as a result of focused delivery on service and quality within existing contracts, the extension of capabilities and services, and the growing reputation of the Company to deliver on a range of complex new product development and the subsequent conversion to serial production.

 

The Company continues to develop new applications and opportunities for its core skills in the design, development, and delivery of complex cast products and assemblies. Furthermore, the company is focused on extending it’s offering by providing opportunities to new manufacturing locations in India through other Neterwala Group companies, bringing cost benefits associated with this.

 

Increased turnover along with improved manufacturing efficiencies resulted in an increased EBITDA of £1.5m (2023: £0.6m)

 

The Company and its Shareholders continue to invest in new technologies and equipment with the development of a dedicated Engineering Research and Development Centre at the UK Group headquarters based in Wrexham, North Wales. This development centre is focused on delivering alternate solutions to complicated problems whilst providing a best in class product at a best in class cost.

 

The company continues to enjoy a strong order book to further deliver Sales Growth and is active in several new opportunities with key customers in a range of markets including Aerospace and Defence, which ensure the growth continues throughout the coming years.

 

At the year end, the Company increased net assets to £4.6m (2023: £3.4m).

 

Events affecting the company since the balance sheet date

There have been a number of changes to the Leadership team (including the Board of Directors) post 31 March 2024. The Shareholders believe this restructure will bring renewed focus to the opportunities presented to the company and wider group to ensure these opportunities are taken and the Group continues to grow in terms of turnover and underlying profitability.

 

Tritech Precision Products (Yeovil) Limited
Strategic report (continued)
For the year ended 31 March 2024
- 2 -
Principal risks and uncertainties

The company has a constant challenge to meet customer expectation and demand in constantly expanding markets with added risks and uncertainties generated by world events including the cost of living increases, and the conflict in Eastern Europe and the Middle East.

 

Tritech Precision Products (Yeovil) continues to benefit by being part of many long-term and growing programs with our valued long-term customers. It is important that the business is ready to absorb the growth. The expansion plans which started in 2016 (addition of adjacent new site for the Wrexham foundry and plans for expansion of the Wrexham machining facility) puts the business in a good position to deal with any uplift in business. Also, the wider group can 'share' business around the 4 foundries within the group (including the ultimate parent company's operation in India) with customer approval.

 

The business has good long-term visibility of customer orders (up to 18 months) and good intelligence of the various programs of work we are engaged upon. This enables early warning of capacity and manning level requirements and gives pre warning of any potential reductions to the order book so that corrective actions can be taken. The directors are confident that even with current market conditions and the impact of world events, that the current orderbook will support the revised sales expectations into March 2025 and beyond. New contracts continue to be secured which will lead to additional sales in future years.

Further development of the India casting supply chain will continue in the coming years and is planned to create capacity for the UK site to work on higher complexity product manufacturing.

 

Employment cost increases were made in 2023/24 in line with the increased headcount to support the Turnover growth and compliant with all UK Government guidelines. Following the post Covid-19 restructure, the Directors have continued to focus on the manning levels required to support the recovery and subsequent growth, with manning levels increasing because of this.

 

The main risks associated with the company's financial assets and liabilities are set out below:

 

Interest rate risks

The company finances its operations through a mixture of retained profits and external borrowings. The external borrowings are at fixed rates above the Bank of England base rate.

 

Foreign currency risk

The company's transactions are predominantly in Sterling, US Dollar and Euros. The company seeks to mitigate the effect of its structural currency exposure by purchasing in the same functional currency as it sells. The company does not hedge any currency exposure.

 

Cashflow risk

The company aims to mitigate cashflow risk by managing cash generated by its operations. Authorisation limits are in place for all types of expenditure.

 

Credit risk

The company's objective is to reduce the risk of financial loss due to a customer's failure to honour its

obligations. All customers are subject to credit control procedures and each customer has an appropriate credit limit set. Where credit risk is perceived, payment must be made by letter of credit or payment in advance of sale/distribution.

 

Liquidity risk

Daily cashflows are forecast and monitored to ensure that the company remains within its available funding facilities. Revised trading and cashflow forecasts have been communicated to the bank and the directors consider the available and proposed facilities to be adequate.

 

Tritech Precision Products (Yeovil) Limited
Strategic report (continued)
For the year ended 31 March 2024
- 3 -
Future developments

The long-term strategic vision for the company and wider group remains the creation of long-term value for our shareholders. The Medium to long term aim of the Directors is to provide value from sales growth, profitability, cash generation and strong return on capital employed. These shared views drive decision making and behaviour in the company with the financial objectives aligned to this end and focused on five key objectives:

 

- Increasing revenue;

- Improving operating margins;

- Maximising return on capital employed;

- Maximising free cash flow:

- Focus on 'Right First Time' manufacturing.

Key performance indicators

The record of financial performance metrics is set out below:

 

2024         2023         2022          2021         2020

Sales Turnover          £8.8m         £6.9m         £5.8m         £5.3m         £6.3m

Gross Profit          £2.9m        £1.8m         £1.6m         £1.1m         £1.6m

EBITDA          £1.5m        £0.6m         £0.5m      (£0.1m)     £0.4m

EBITDA % of Sales      17.6%      8.7%          8.6%         (1.6%)          6.5%

(Loss)/profit before tax £1.4m        £0.4m         £0.3m      (£0.3m)     £0.1m

 

In the year ended 31 March 2024, company revenue increased by £1.8m, primarily driven by improvements in the Civil Aviation and the Defence markets. These markets continue to deliver further growth post year end and the forecast for 2024/25 onwards continues to be positive.

 

Profit before taxation for continuing operations was £1.4m compared to £0.4m in the prior year.

Non-financial key performance indicators

The company also uses non key performance indicators to manage its operations. The company monitors

employee numbers to track the number of staff required in the manufacturing process and the number of

administration staff required to support it.

Staff numbers are as follows:

 

2024         2023

Production              59         57

Selling and distribution          2         2

Office and management      11         11

Total                  72          70

 

Cash Flow

Working capital has been tightly controlled during the year. Trade Debtors increased in line with increased Turnover, as did Trade Creditors. Inventory also slightly increased in the second half of the year as Customer demand increased due to improvements in Company Sales Markets. Very low capital investment was made in the year with existing manufacturing capacity in place from prior year investment.

 

Tritech Precision Products (Yeovil) Limited
Strategic report (continued)
For the year ended 31 March 2024
- 4 -

On behalf of the board

Mr S J Goodier
Director
21 October 2024
Tritech Precision Products (Yeovil) Limited
Directors' report
For the year ended 31 March 2024
- 5 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company continued to be that of the manufacture of aluminium castings.

Results and dividends

The results for the year are set out on page 11.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr I J Walker
(Resigned 31 May 2023)
Mr M Langford
(Resigned 20 October 2023)
Mr F D Neterwala
Mr A F Neterwala
Mr S E Goodfellow
(Resigned 6 June 2024)
Mr A R White
(Resigned 31 December 2023)
Mr S J Goodier
Mr C J Morris
(Appointed 2 October 2023 and resigned 21 May 2024)
Research and development

The company undertook research and development activities. The activities seek to achieve an advance in science or technology through the resolution of scientific or technical uncertainty.

 

Activities include, shelling process improvement, business management application process improvement, Exhaust duct cast development, casting process improvement and other development projects.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report 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:

 

 

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.

Tritech Precision Products (Yeovil) Limited
Directors' report (continued)
For the year ended 31 March 2024
- 6 -
Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr S J Goodier
Director
21 October 2024
TRITECH PRECISION PRODUCTS (YEOVIL) LIMITED
Tritech Precision Products (Yeovil) Limited
Independent auditor's report
TO THE MEMBERS OF TRITECH PRECISION PRODUCTS (YEOVIL) LIMITED
- 7 -
Opinion

We have audited the financial statements of Tritech Precision Products (Yeovil) Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including 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:

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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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.

TRITECH PRECISION PRODUCTS (YEOVIL) LIMITED
Tritech Precision Products (Yeovil) Limited
Independent auditor's report (continued)
TO THE MEMBERS OF TRITECH PRECISION PRODUCTS (YEOVIL) LIMITED
- 8 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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.

Auditor's 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 auditor's 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 financial statements.

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

TRITECH PRECISION PRODUCTS (YEOVIL) LIMITED
Tritech Precision Products (Yeovil) Limited
Independent auditor's report (continued)
TO THE MEMBERS OF TRITECH PRECISION PRODUCTS (YEOVIL) LIMITED
- 9 -
The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

TRITECH PRECISION PRODUCTS (YEOVIL) LIMITED
Tritech Precision Products (Yeovil) Limited
Independent auditor's report (continued)
TO THE MEMBERS OF TRITECH PRECISION PRODUCTS (YEOVIL) LIMITED
- 10 -

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 an auditor's 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.

Nicola Johnson
Senior Statutory Auditor
For and on behalf of DJH Audit Limited
21 October 2024
Accountants
Statutory Auditor
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Tritech Precision Products (Yeovil) Limited
Statement of comprehensive income
For the year ended 31 March 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
8,764,965
6,937,860
Cost of sales
(5,898,054)
(5,151,315)
Gross profit
2,866,911
1,786,545
Distribution costs
(108,600)
(105,494)
Administrative expenses
(1,384,691)
(1,246,860)
Operating profit
4
1,373,620
434,191
Interest payable and similar expenses
6
(3,131)
(13,296)
Profit before taxation
1,370,489
420,895
Tax on profit
7
(176,038)
10,768
Profit for the financial year
1,194,451
431,663

The income statement has been prepared on the basis that all operations are continuing operations.

Tritech Precision Products (Yeovil) Limited
Statement of financial position
As at 31 March 2024
31 March 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
8
491,759
535,052
Tangible assets
9
542,433
648,146
1,034,192
1,183,198
Current assets
Stocks
10
3,892,676
3,491,587
Debtors
11
3,704,970
2,979,735
Cash at bank and in hand
82,270
11,695
7,679,916
6,483,017
Creditors: amounts falling due within one year
12
(4,032,350)
(4,170,795)
Net current assets
3,647,566
2,312,222
Total assets less current liabilities
4,681,758
3,495,420
Provisions for liabilities
Deferred tax liability
14
49,229
57,342
(49,229)
(57,342)
Net assets
4,632,529
3,438,078
Capital and reserves
Called up share capital
16
2,750,000
2,750,000
Profit and loss reserves
17
1,882,529
688,078
Total equity
4,632,529
3,438,078

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 21 October 2024 and are signed on its behalf by:
Mr S J Goodier
Director
Company registration number 09432835 (England and Wales)
Tritech Precision Products (Yeovil) Limited
Statement of changes in equity
For the year ended 31 March 2024
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2022
2,750,000
256,415
3,006,415
Year ended 31 March 2023:
Profit and total comprehensive income
-
431,663
431,663
Balance at 31 March 2023
2,750,000
688,078
3,438,078
Year ended 31 March 2024:
Profit and total comprehensive income
-
1,194,451
1,194,451
Balance at 31 March 2024
2,750,000
1,882,529
4,632,529
Tritech Precision Products (Yeovil) Limited
Notes to the financial statements
For the year ended 31 March 2024
- 14 -
1
Accounting policies
Company information

Tritech Precision Products (Yeovil) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Bridge Road North, Wrexham Industrial Estate, Clwyd, Wales, LL13 9PS. The principal place of business is Buckland Road, Pen Mill Trading Estate, Yeovil, Somerset, BA21 5EF.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

This information is included in the consolidated financial statements of Neterson Holdings Limited as at 31 March 2022 and these financial statements may be obtained from Bridge Road North, Wrexham Industrial Estate, Wrexham, Clwyd, LL13 9PS.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, after discounts and rebates excluding value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Tritech Precision Products (Yeovil) Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 15 -

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:

 

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5
Intangible fixed assets - goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2015, is being amortised evenly over its estimated useful life of twenty years.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Improvement to property
10% - 20% on cost straight line
Plant and machinery
5% - 50% on cost straight line
Fixtures and fittings
10% - 33.33% on cost straight line
Computer equipment
10% - 33.33% on cost straight line
Motor vehicles
25% on cost straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Tritech Precision Products (Yeovil) Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 16 -
1.8
Stocks

Stocks include items purchased and exclude items sold, subject to reservation of title.

 

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete, slow moving or defective items. The cost of stock includes all expenditure in bringing stocks to their present location and condition, as follows:

 

 

                               

 

Net realisable value is based on estimated selling price less further costs expected to be incurred to completion and disposal.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, amounts drawn down on an invoice finance facility and bank overdrafts. Amounts drawn down on invoice finance facility and bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Tritech Precision Products (Yeovil) Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 17 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Tritech Precision Products (Yeovil) Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 18 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.16

Related party exemption

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

Tritech Precision Products (Yeovil) Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
- 19 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

In the directors' opinion there are no critical judgements, apart from those involving estimations (dealt with separately below), that they have been made aware in apply company's accounting policies and that have had a significant effect on the amounts recognised in the financial statements.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The estimated cost of individual stock items from their selling price

The company has adopted the retail method for valuing work in progress and manufactured finished goods. This requires the directors to estimate the profit margin percentage used to reduce selling price to the estimated cost. This estimated profit margin percentage is based the current year and is calculated as gross profit less an estimated portion of production overheads attributed to direct costs, as a percentage of turnover.

Stock provisions necessary for slow moving stock

Management have estimated the provision required for stocks that have been manufactured, but currently have no orders allocated against them.  A provision is made against finished goods that are not part of a kit, have no orders against them and have not moved in the last 12 months.

Stage of completion of work in progress

Management estimate the stage of completion for products in work in progress, based on their expertise and knowledge of the production process. Different stages of production are documented and a percentage stage of completion applied depending on the part of the process that the product is currently in. Uncertainties in the stage of completion of work in progress relate to the actual amount of work completed on a product at the year end, compared to the estimated percentage stage of completion applied.

The economic useful life of tangible fixed assets

Management review the useful economic lives of depreciable assets at each reporting date as to allocate the cost of assets, less their residual value, over their estimated useful lives. Uncertainties in these estimates relate to the actual life of the tangible fixed assets.

Tritech Precision Products (Yeovil) Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
- 20 -
3
Turnover

The turnover and profit (2023: loss) are attributable to one principal activity of the company.

 

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
7,193,053
5,229,153
Europe
247,876
941,929
Rest of world
1,324,036
766,778
8,764,965
6,937,860
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
6,451
12,084
Fees payable to the company's auditor for the audit of the company's financial statements
39,450
19,150
Depreciation of owned tangible fixed assets
122,820
125,117
Profit on disposal of tangible fixed assets
(250)
-
Amortisation of intangible assets
43,293
43,290
Operating lease charges
85,170
80,303
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Office and management
11
11
Selling and distribution
2
2
Manufacturing
59
57
Total
72
70
Tritech Precision Products (Yeovil) Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
5
Employees
(Continued)
- 21 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,156,235
1,947,714
Social security costs
210,568
172,981
Pension costs
89,631
82,785
2,456,434
2,203,480
6
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
3,131
2,168
Interest on finance leases and hire purchase contracts
-
2,441
Other interest
-
0
8,687
3,131
13,296
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
184,151
-
0
Deferred tax
Origination and reversal of timing differences
(8,113)
(10,768)
Total tax charge/(credit)
176,038
(10,768)
Tritech Precision Products (Yeovil) Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
7
Taxation
(Continued)
- 22 -

The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
1,370,489
420,895
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
342,622
79,970
Tax effect of expenses that are not deductible in determining taxable profit
10,823
8,249
Effect of change in corporation tax rate
-
0
(2,576)
Group relief
(178,511)
(91,986)
Depreciation on assets not qualifying for tax allowances
1,081
-
0
Deferred tax adjustments in respect of prior years
35
-
0
Enhanced capital allowances
-
0
(438)
Deferred tax not recognised current year
(12)
(3,987)
Taxation charge/(credit) for the year
176,038
(10,768)
8
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2023 and 31 March 2024
865,855
Amortisation and impairment
At 1 April 2023
330,803
Amortisation charged for the year
43,293
At 31 March 2024
374,096
Carrying amount
At 31 March 2024
491,759
At 31 March 2023
535,052
Tritech Precision Products (Yeovil) Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
- 23 -
9
Tangible fixed assets
Improvement to property
Plant and machinery
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2023
50,201
1,897,471
20,810
55,048
23,970
2,047,500
Additions
-
0
4,702
-
0
12,405
-
0
17,107
Disposals
-
0
-
0
-
0
-
0
(20,222)
(20,222)
At 31 March 2024
50,201
1,902,173
20,810
67,453
3,748
2,044,385
Depreciation and impairment
At 1 April 2023
29,369
1,277,930
16,279
51,806
23,970
1,399,354
Depreciation charged in the year
4,324
113,129
1,125
4,242
-
0
122,820
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(20,222)
(20,222)
At 31 March 2024
33,693
1,391,059
17,404
56,048
3,748
1,501,952
Carrying amount
At 31 March 2024
16,508
511,114
3,406
11,405
-
0
542,433
At 31 March 2023
20,832
619,541
4,531
3,242
-
0
648,146
10
Stocks
2024
2023
£
£
Raw materials and consumables
454,535
352,703
Work in progress
2,721,291
2,100,573
Finished goods and goods for resale
716,850
1,038,311
3,892,676
3,491,587

Inventories are stated after provisions for impairment of £596,080 (2023 - £415,610).

 

The total carrying amount of stock of £3,892,676 (2023 - £3,491,587) is pledged as security for the invoice financing facility and group company cross guarantee.

Tritech Precision Products (Yeovil) Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
- 24 -
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,107,698
1,370,237
Corporation tax recoverable
-
0
32,887
Amounts owed by group undertakings
1,481,958
1,481,958
Other debtors
12,624
8,859
Prepayments and accrued income
102,690
85,794
3,704,970
2,979,735

Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

12
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
13
1,414,676
1,168,553
Trade creditors
1,140,765
805,111
Amounts owed to group undertakings
846,828
1,811,895
Corporation tax
184,151
-
0
Other taxation and social security
178,706
206,412
Other creditors
89,866
12,500
Accruals and deferred income
177,358
166,324
4,032,350
4,170,795

Included within bank loans and overdrafts is an invoice finance facility of £1,414,676 (2023 - £1,168,553), which is secured by a legal mortgage and fixed and floating charges over all assets of the company and a group company cross-guarantee.

 

Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

13
Loans and overdrafts
2024
2023
£
£
Bank overdrafts
1,414,676
1,168,553
Payable within one year
1,414,676
1,168,553

The bank overdraft is an invoice finance facility, secured by a legal mortgage and fixed and floating charge over all assets of the company and a group company cross-guarantee.

Tritech Precision Products (Yeovil) Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
- 25 -
14
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
51,200
58,800
Retirement benefit obligations
(1,971)
(1,458)
49,229
57,342
2024
Movements in the year:
£
Liability at 1 April 2023
57,342
Credit to profit or loss
(8,113)
Liability at 31 March 2024
49,229

Accelerated capital allowances relate to timing differences on capital allowances. The amount expected to reverse in 2025 is £16,000.

Other timing difference relate to deferred tax on amounts owed to pension schemes. These assets are expected to reverse within 12 months.

15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
89,631
82,785

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

Contributions totalling £14,809 (2023 - £12,449) were payable to the fund at the balance sheet date.

16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2,750,000
2,750,000
2,750,000
2,750,000
Tritech Precision Products (Yeovil) Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
16
Share capital
(Continued)
- 26 -

Ordinary shares are non-redeemable and rank equally for voting purposes, dividend declarations and any capital distribution on winding up.

17
Profit and loss reserves

Retained earnings represents the accumulated profits less accumulated losses and distributions up to the reporting date. This is a distributable reserve.

18
Financial commitments, guarantees and contingent liabilities

The company has charges over its assets, in the form of an all assets debenture, as security for the borrowings of fellow group undertakings. At 31 March 2024 these borrowings amounted to £16,581,126 (2023 - £16,651,028). As at the date of approval of these financial statements the directors do not anticipate that the charges will be called upon.

19
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
85,138
86,977
Between two and five years
40,000
125,138
125,138
212,115
20
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Purchases
Purchases
2024
2023
£
£
Entities under common control
65,977
34,551
Management fees
2024
2023
£
£
Entities under common control
60,000
70,000
2024
2023
Amounts due to related parties
£
£
Tritech Precision Products (Yeovil) Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
20
Related party transactions
(Continued)
- 27 -
Entities under common control
52,926
55,067

The amounts owing to entities under common control are interest free with no fixed repayment terms.

21
Ultimate controlling party

The ultimate controlling party is F.D.Neterwala due to his controlling interest in the company's ultimate holding company, Chemical & Ferro Alloys Private Limited.

Ultimate parent company

The immediate parent company and parent company of the smallest group where group accounts are drawn up is Neterson Holdings Limited which is incorporated in the UK. Copies of the group accounts of Neterson Holdings Limited are available from Bridge Road North, Wrexham Industrial Estate, Wrexham, Clwyd, LL13 9PS.

 

The ultimate parent company and parent company of the largest group for which group accounts are drawn up is Chemical and Ferro Alloys Private Limited, a company incorporated in India. Copies of the group accounts of Chemical and Ferro Alloys Private Limited are available from Liberty Building, Sir Vithaldas Thackersey Marg, Mumbai, MH 400020 IN.

2024-03-312023-04-01falseCCH SoftwareCCH Accounts Production 2024.200Mr I J WalkerMr M LangfordMr F D NeterwalaMr A F NeterwalaMr S E GoodfellowMr A R WhiteMr S J GoodierMr C J MorrisMr P Whitefalsefalse094328352023-04-012024-03-3109432835bus:Director32023-04-012024-03-3109432835bus:Director42023-04-012024-03-3109432835bus:Director72023-04-012024-03-3109432835bus:CompanySecretary12023-04-012024-03-3109432835bus:Director12023-04-012024-03-3109432835bus:Director22023-04-012024-03-3109432835bus:Director52023-04-012024-03-3109432835bus:Director62023-04-012024-03-3109432835bus:Director82023-04-012024-03-3109432835bus:RegisteredOffice2023-04-012024-03-31094328352024-03-31094328352022-04-012023-03-3109432835core:RetainedEarningsAccumulatedLosses2022-04-012023-03-3109432835core:RetainedEarningsAccumulatedLosses2023-04-012024-03-3109432835core:Goodwill2024-03-3109432835core:Goodwill2023-03-31094328352023-03-3109432835core:LeaseholdImprovements2024-03-3109432835core:PlantMachinery2024-03-3109432835core:FurnitureFittings2024-03-3109432835core:ComputerEquipment2024-03-3109432835core:MotorVehicles2024-03-3109432835core:LeaseholdImprovements2023-03-3109432835core:PlantMachinery2023-03-3109432835core:FurnitureFittings2023-03-3109432835core:ComputerEquipment2023-03-3109432835core:MotorVehicles2023-03-3109432835core:CurrentFinancialInstrumentscore:WithinOneYear2024-03-3109432835core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3109432835core:CurrentFinancialInstruments2024-03-3109432835core:CurrentFinancialInstruments2023-03-3109432835core:ShareCapital2024-03-3109432835core:ShareCapital2023-03-3109432835core:RetainedEarningsAccumulatedLosses2024-03-3109432835core:RetainedEarningsAccumulatedLosses2023-03-3109432835core:ShareCapital2022-03-3109432835core:RetainedEarningsAccumulatedLosses2022-03-3109432835bus:Consolidated2023-04-012024-03-3109432835core:Goodwill2023-04-012024-03-3109432835core:LeaseholdImprovements2023-04-012024-03-3109432835core:PlantMachinery2023-04-012024-03-3109432835core:FurnitureFittings2023-04-012024-03-3109432835core:ComputerEquipment2023-04-012024-03-3109432835core:MotorVehicles2023-04-012024-03-310943283512023-04-012024-03-310943283512022-04-012023-03-3109432835core:UKTax2023-04-012024-03-3109432835core:UKTax2022-04-012023-03-310943283522023-04-012024-03-310943283522022-04-012023-03-310943283532023-04-012024-03-310943283532022-04-012023-03-3109432835core:Goodwill2023-03-3109432835core:LeaseholdImprovements2023-03-3109432835core:PlantMachinery2023-03-3109432835core:FurnitureFittings2023-03-3109432835core:ComputerEquipment2023-03-3109432835core:MotorVehicles2023-03-31094328352023-03-3109432835core:WithinOneYear2024-03-3109432835core:WithinOneYear2023-03-3109432835core:BetweenTwoFiveYears2024-03-3109432835core:BetweenTwoFiveYears2023-03-3109432835bus:PrivateLimitedCompanyLtd2023-04-012024-03-3109432835bus:FRS1022023-04-012024-03-3109432835bus:Audited2023-04-012024-03-3109432835bus:FullAccounts2023-04-012024-03-31xbrli:purexbrli:sharesiso4217:GBP