Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31true2023-01-01falsetruefalse110112No description of principal activitytruefalse 00976052 2023-01-01 2023-12-31 00976052 2022-01-01 2022-12-31 00976052 2023-12-31 00976052 2022-12-31 00976052 1 2023-01-01 2023-12-31 00976052 1 2022-01-01 2022-12-31 00976052 4 2023-01-01 2023-12-31 00976052 4 2022-01-01 2022-12-31 00976052 d:Director1 2023-01-01 2023-12-31 00976052 d:Director2 2023-01-01 2023-12-31 00976052 d:Director3 2023-01-01 2023-12-31 00976052 d:Director4 2023-01-01 2023-12-31 00976052 d:Director4 2023-12-31 00976052 d:RegisteredOffice 2023-01-01 2023-12-31 00976052 e:PlantMachinery 2023-01-01 2023-12-31 00976052 e:PlantMachinery 2023-12-31 00976052 e:PlantMachinery 2022-12-31 00976052 e:PlantMachinery e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 00976052 e:MotorVehicles 2023-01-01 2023-12-31 00976052 e:MotorVehicles 2023-12-31 00976052 e:MotorVehicles 2022-12-31 00976052 e:MotorVehicles e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 00976052 e:FurnitureFittings 2023-01-01 2023-12-31 00976052 e:FurnitureFittings 2023-12-31 00976052 e:FurnitureFittings 2022-12-31 00976052 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 00976052 e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 00976052 e:CurrentFinancialInstruments 2023-12-31 00976052 e:CurrentFinancialInstruments 2022-12-31 00976052 e:CurrentFinancialInstruments 1 2023-12-31 00976052 e:CurrentFinancialInstruments 1 2022-12-31 00976052 e:Non-currentFinancialInstruments 2023-12-31 00976052 e:Non-currentFinancialInstruments 2022-12-31 00976052 e:CurrentFinancialInstruments e:WithinOneYear 2023-12-31 00976052 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 00976052 e:Non-currentFinancialInstruments e:AfterOneYear 2023-12-31 00976052 e:Non-currentFinancialInstruments e:AfterOneYear 2022-12-31 00976052 e:Non-currentFinancialInstruments e:BetweenOneTwoYears 2023-12-31 00976052 e:Non-currentFinancialInstruments e:BetweenOneTwoYears 2022-12-31 00976052 f:UnitedKingdom 2023-01-01 2023-12-31 00976052 f:UnitedKingdom 2022-01-01 2022-12-31 00976052 f:RestEuropeOutsideUK 2023-01-01 2023-12-31 00976052 f:RestEuropeOutsideUK 2022-01-01 2022-12-31 00976052 f:RestWorldOutsideUK 2023-01-01 2023-12-31 00976052 f:RestWorldOutsideUK 2022-01-01 2022-12-31 00976052 e:ShareCapital 2023-12-31 00976052 e:ShareCapital 2022-12-31 00976052 e:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 00976052 e:RetainedEarningsAccumulatedLosses 2023-12-31 00976052 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 00976052 e:RetainedEarningsAccumulatedLosses 2022-12-31 00976052 e:RetainedEarningsAccumulatedLosses 2022-01-01 00976052 e:AcceleratedTaxDepreciationDeferredTax 2023-12-31 00976052 e:AcceleratedTaxDepreciationDeferredTax 2022-12-31 00976052 e:TaxLossesCarry-forwardsDeferredTax 2023-12-31 00976052 e:TaxLossesCarry-forwardsDeferredTax 2022-12-31 00976052 e:RetirementBenefitObligationsDeferredTax 2023-12-31 00976052 e:RetirementBenefitObligationsDeferredTax 2022-12-31 00976052 d:OrdinaryShareClass1 2023-01-01 2023-12-31 00976052 d:OrdinaryShareClass1 2023-12-31 00976052 d:OrdinaryShareClass1 2022-12-31 00976052 d:FRS102 2023-01-01 2023-12-31 00976052 d:Audited 2023-01-01 2023-12-31 00976052 d:FullAccounts 2023-01-01 2023-12-31 00976052 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 00976052 e:Subsidiary1 2023-01-01 2023-12-31 00976052 e:Subsidiary1 1 2023-01-01 2023-12-31 00976052 e:HirePurchaseContracts e:WithinOneYear 2023-12-31 00976052 e:HirePurchaseContracts e:WithinOneYear 2022-12-31 00976052 e:HirePurchaseContracts e:BetweenOneFiveYears 2023-12-31 00976052 e:HirePurchaseContracts e:BetweenOneFiveYears 2022-12-31 00976052 2 2023-01-01 2023-12-31 00976052 6 2023-01-01 2023-12-31 00976052 7 2023-01-01 2023-12-31 00976052 e:PlantMachinery e:LeasedAssetsHeldAsLessee 2023-12-31 00976052 e:PlantMachinery e:LeasedAssetsHeldAsLessee 2022-12-31 00976052 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2023-12-31 00976052 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2022-12-31 00976052 e:FurnitureFittings e:LeasedAssetsHeldAsLessee 2023-12-31 00976052 e:FurnitureFittings e:LeasedAssetsHeldAsLessee 2022-12-31 00976052 e:LeasedAssetsHeldAsLessee 2023-12-31 00976052 e:LeasedAssetsHeldAsLessee 2022-12-31 00976052 g:PoundSterling 2023-01-01 2023-12-31 iso4217:GBP xbrli:shares xbrli:pure
Registered number: 00976052









SHEARLINE PRECISION ENGINEERING LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023






































Whitings LLP
Chartered Accountants
Greenwood House
Greenwood Court
Skyliner Way
Bury St Edmunds
Suffolk
IP32 7GY

 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
COMPANY INFORMATION


Directors
D H Littlechild 
J S Littlechild 
D Wilson 
J Pinkhart (appointed 26 June 2024)




Registered number
00976052



Registered office
Precision House
Cambridgeshire Business Park

Angel Drove

Ely

Cambridgeshire

CB7 4EX




Independent auditors
Whitings LLP
Chartered Accountants & Statutory Auditors

Greenwood House

Greenwood Court

Skyliner Way

Bury St Edmunds

Suffolk

IP32 7GY





 
SHEARLINE PRECISION ENGINEERING LIMITED
 

CONTENTS



Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Statement of income and retained earnings
9
Statement of financial position
10
Notes to the financial statements
11 - 30


 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their strategic report for the year ended 31 December 2023. The aim is to present a balanced and comprehensive review of the development and performance of the business during the period and its position at the year end. The review is consistent with the size of the business and is written in the context of the risks and uncertainties we face.

Business review
 
The principal activity of the company during the year continued to be the manufacturing of metal based products to customer specifications, selling predominantly in the UK.
Revenue continued to improve in the year, but more of our customers are moving away from holding stock to a Just in Time policy. This is impacting our revenue during the transition process, as customers are consuming the stock they hold before placing further orders with us. Gross profit has unfortunately seen a reduction due to fluctuating material prices and our own increased energy charges.
We have continued to invest in accordance with the planned capital investment programme in order to maintain and exceed customer service levels. 
At the time of reporting the company have experienced a light order book for 2024, but a much improved order book for 2025 and the directors are confident for the future prospects of the company as it continues to build on the strong net asset position reported at the balance sheet date.
We have assessed that the company is able to continue to meet its debts as they fall due and therefore have prepared the accounts under the going concern basis. Further detail regarding our assessment can be found in note 2.4.

Principal risks and uncertainties
 
The key business risks and uncertainties affecting the company are those relating to price competition from competitors within the industry and liquidity.
To minimise exposure, processes within our business are regularly challenged to remain competitive, without eroding margins.
The company actively maintains a mix of long term and short term debt finance that ensures there are sufficient funds available for both daily operations and continued investment.
Regular cash flow forecasts are produced in order to monitor the Group’s cash flow requirements and the liquidity of the business.  

Page 1

 
SHEARLINE PRECISION ENGINEERING LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Financial key performance indicators
 
There are a number of performance indicators that are used to monitor the business on a regular basis. The key indicators for the purpose of the strategic report are detailed below.

2023
2022
        £
        £
Turnover

8,525,128

7,749,412
 
Gross profit

2,236,910

2,369,790
 
Pre tax profit/(loss)

(168,311)

235,370
 


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



D H Littlechild
Director

Date: 5 November 2024

Page 2

 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 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 of the profit or loss of the Company for that period.

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


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation, amounted to £126,522 (2022 - profit £245,598).

The directors have not recommended payment of a dividend. 

Directors

The directors who served during the year were:

D H Littlechild 
J S Littlechild 
D Wilson 

Future developments

As well as continuing to invest in the company infrastructure and our people, investment will also be made in raising the company profile. 

Page 3

 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

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'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's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsWhitings LLPwill 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.
 





D H Littlechild
Director

Date: 5 November 2024

Page 4

 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SHEARLINE PRECISION ENGINEERING LIMITED
 

Opinion


We have audited the financial statements of Shearline Precision Engineering Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of income and retained earnings, the Statement of financial position 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 Company's affairs as at 31 December 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 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

 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SHEARLINE PRECISION ENGINEERING 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 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 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 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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the 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 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.


Page 6

 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SHEARLINE PRECISION ENGINEERING 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 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:
 
Enquiry of management about any known or suspected instances of non-compliance with laws and regulations, accidents in the workplace, and fraud;
Enquiry of management around actual and potential litigation and claims;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Challenging assumptions and judgements made by management in their significant accounting estimates, such as stock valuation and useful economic lives of tangible assets; and 
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the course of normal business. 


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.


Page 7

 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SHEARLINE PRECISION ENGINEERING LIMITED (CONTINUED)


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.





Jaimie King ACA (Senior statutory auditor)
  
for and on behalf of
Whitings LLP
 
Chartered Accountants
Statutory Auditors
  
Greenwood House
Greenwood Court
Skyliner Way
Bury St Edmunds
Suffolk
IP32 7GY

5 November 2024
Page 8

 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
8,525,128
7,749,412

Cost of sales
  
(6,288,218)
(5,379,622)

Gross profit
  
2,236,910
2,369,790

Administrative expenses
  
(2,304,221)
(2,084,522)

Other operating income
 5 
12,323
8,868

Operating (loss)/profit
 6 
(54,988)
294,136

Interest receivable and similar income
 10 
102
128

Interest payable and similar expenses
 11 
(113,425)
(58,894)

(Loss)/profit before tax
  
(168,311)
235,370

Tax on (loss)/profit
 12 
41,789
10,228

(Loss)/profit after tax
  
(126,522)
245,598

  

  

Retained earnings at the beginning of the year
  
2,624,432
2,378,834

(Loss)/profit for the year
  
(126,522)
245,598

Retained earnings at the end of the year
  
2,497,910
2,624,432

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of income and retained earnings.

There was no other comprehensive income for 2023 (2022 - £Nil).

The notes on pages 11 to 30 form part of these financial statements.

Page 9

 
SHEARLINE PRECISION ENGINEERING LIMITED
REGISTERED NUMBER: 00976052

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 13 
2,562,556
2,594,296

Investments
 14 
550,235
550,235

  
3,112,791
3,144,531

Current assets
  

Stocks
 15 
1,336,237
1,818,150

Debtors: amounts falling due within one year
 16 
1,717,443
1,728,600

Cash at bank and in hand
 17 
37,368
37,053

  
3,091,048
3,583,803

Creditors: amounts falling due within one year
 18 
(2,600,421)
(2,764,599)

Net current assets
  
 
 
490,627
 
 
819,204

Total assets less current liabilities
  
3,603,418
3,963,735

Creditors: amounts falling due after more than one year
 19 
(899,932)
(1,091,938)

Provisions for liabilities
  

Deferred tax
 22 
(203,576)
(245,365)

  
 
 
(203,576)
 
 
(245,365)

Net assets
  
2,499,910
2,626,432


Capital and reserves
  

Called up share capital 
 23 
2,000
2,000

Profit and loss account
  
2,497,910
2,624,432

  
2,499,910
2,626,432


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




D H Littlechild
D Wilson
Director
Director


Date: 5 November 2024

The notes on pages 11 to 30 form part of these financial statements.

Page 10

 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Shearline Precision Engineering Limited is a private limited company incorporated in England. Its registered office is Precision House, Cambridgeshire Business Park, Ely, Cambridgeshire CB7 4EX.
The principal activity of the company during the period was the manufacturing and machining of metal products.

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 management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d).

This information is included in the consolidated financial statements of Shearline Holdings Limited as at 31 December 2023 and these financial statements may be obtained from Companies House.

 
2.3

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

Page 11

 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Going concern

The Company’s parent has a bank loan due for repayment within 12 months of the approval of these financial statements of which the Company is party to a cross-guarantee, further details of which can be found in the consolidated group accounts of Shearline Holdings Limited filed at Companies House. The Company does not have the ability to settle amounts that could arise under a cross guarantee should they fall due and the cross guarantee be enforced.
The Company has reported a loss before tax of £168,311 (2022 – profit before tax £235,370). This, along with the cross guarantee in respect of the parent company bank loan, has created uncertainty about the Company’s ability to continue to meet its debts as they fall due.
The directors have prepared cash flow forecasts which have provided the directors with sufficient comfort that the financial statements should be prepared on the going concern basis. These forecasts are highly sensitive to the level of sales forecast, and are reliant on the continued support of the Company’s banker,  financial support of a director, and the parent company being able to repay its debts as they fall due. A director has also provided a letter of support to indicate his intention to support the company if required. As a result the directors are satisfied that the company remains a going concern and will be able to pay its debts as they fall due for a period of at least 12 months from the date of signing these financial statements.

 
2.5

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of income and retained earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of income and retained earnings within 'other operating income'.

Page 12

 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.6

Revenue

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

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.7

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.8

Leased assets: the Company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

  
2.9

Research and development

Expenditure on research and development is written off against profit in the year in which it is incurred.

Page 13

 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.10

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of income and retained earnings in the same period as the related expenditure.

 
2.11

Interest income

Interest income is recognised in the Statement of income and retained earnings using the effective interest method.

 
2.12

Finance costs

Finance costs are charged to the Statement of income and retained earnings 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.

 
2.13

Borrowing costs

All borrowing costs are recognised in the Statement of income and retained earnings in the year in which they are incurred.

 
2.14

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

Page 14

 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.15

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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 income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.16

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Plant and machinery
-
5 or 15 years straight line
Motor vehicles
-
5 years straight line
Fixtures and fittings
-
3, 5 or 7 years straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 15

 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.17

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.18

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a standard cost basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of income and retained earnings.

 
2.19

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.20

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. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.21

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.22

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the reporting date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the reporting date.

 
2.23

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

Page 16

 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.24

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Page 17

 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.24
Financial instruments (continued)

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.25

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 18

 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
Stock valuation:-
The company manufactures items to order and as a result it is necessary to consider the recoverability of the cost of the stock and the associated provisioning required. When calculating stock provision, management considers evidence of impairment, such as the ageing of stock and the expectation of eventual use or sale.
Useful economic lives of tangible assets:-
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancements, future investments, economic utilisation and the physcial condition of the asset. 


4.


Turnover

The whole of the turnover is attributable to manufacturing and machining of metal products.

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
7,895,327
7,185,188

Rest of Europe
82,857
49,425

Rest of the world
546,944
514,799

8,525,128
7,749,412


Page 19

 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Other operating income

2023
2022
£
£

Government grants receivable
-
1,655

Sundry income
12,323
7,213

12,323
8,868


Government grants receivable consists of Coronavirus Business Interruption Loan Scheme interest payment grants received.


6.


Operating (loss)/profit

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

2023
2022
£
£

Exchange differences
7,792
(35,846)

Operating lease rentals
276,856
280,516


7.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
16,500
16,200

Page 20

 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Employees

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


2023
2022
£
£

Wages and salaries
3,467,410
3,475,702

Social security costs
337,601
353,241

Cost of defined contribution scheme
159,669
116,032

3,964,680
3,944,975


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


        2023
        2022
            No.
            No.







Administration
5
5



Manufacturing
105
107

110
112


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
195,363
207,482

Company contributions to defined contribution pension schemes
12,697
7,097

208,060
214,579


During the year retirement benefits were accruing to 2 directors (2022 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £121,124 (2022 - £128,610).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £4,687 (2022 - £4,457).

Key management comprise the directors of the company.

Page 21

 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Interest receivable

2023
2022
£
£


Bank interest receivable
102
128


11.


Interest payable and similar expenses

2023
2022
£
£


Bank loan interest payable
7,731
7,584

Other loan interest payable
16,373
4,365

Finance leases and hire purchase contracts
39,332
29,265

Other interest payable
49,989
17,680

113,425
58,894


12.


Taxation


2023
2022
£
£



Deferred tax


Origination and reversal of timing differences
(41,789)
(3,140)

Adjustments in respect of previous periods
-
(7,088)

Total deferred tax
(41,789)
(10,228)


Taxation on loss on ordinary activities
(41,789)
(10,228)
Page 22

 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of  19% (2022 - 19%). The differences are explained below:

2023
2022
£
£


(Loss)/profit on ordinary activities before tax
(168,311)
235,370


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
(31,979)
44,720

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
210
26

Other timing differences
10
(47,133)

Adjustments to tax charge in respect of prior periods
-
(7,088)

Changes in provisions leading to an increase in the tax charge
(10,030)
(753)

Total tax charge for the year
(41,789)
(10,228)


Factors that may affect future tax charges

The main rate of UK corporation tax increased from 19% to a rate between 19% and 25% with effect from 1 April 2023. The deferred tax liability reflects these rates.
The company has trade related tax losses of £1,355,305 (2022 - £1,124,831) available for offset against future taxable profits. 

Page 23

 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Tangible fixed assets





Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 January 2023
8,153,284
171,175
475,336
8,799,795


Additions
48,606
-
341,524
390,130



At 31 December 2023

8,201,890
171,175
816,860
9,189,925



Depreciation


At 1 January 2023
5,791,263
87,212
327,025
6,205,500


Charge for the year
324,348
23,431
74,090
421,869



At 31 December 2023

6,115,611
110,643
401,115
6,627,369



Net book value



At 31 December 2023
2,086,279
60,532
415,745
2,562,556



At 31 December 2022
2,362,021
83,963
148,311
2,594,295

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


2023
2022
£
£



Plant and machinery
1,342,333
1,448,873

Motor vehicles
60,532
83,963

Fixtures and fittings
266,199
-

1,669,064
1,532,836

Page 24

 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
550,235



At 31 December 2023
550,235





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Hybrid Laser Tech Limited
Precision House, St Thomas Place, Ely, Cambridgeshire, CB7 4EX
Scribing and profiling ceramic components
Ordinary
100%


15.


Stocks

2023
2022
£
£

Raw materials and consumables
327,552
418,700

Work in progress
580,010
740,905

Finished goods and goods for resale
428,675
658,545

1,336,237
1,818,150


A net impairment reversal of £7,324 (2022 - £32,089) has been recognised in respect of slow-moving and obsolete stock.

Page 25

 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Debtors

2023
2022
£
£


Trade debtors
1,319,306
1,477,274

Amounts owed by group undertakings
280,262
168,037

Other debtors
2,690
5,174

Prepayments and accrued income
115,185
78,115

1,717,443
1,728,600


Included within trade debtors are balances totalling £1,307,339 (2022 - £1,470,473) that are subject to factoring arrangements. The trade debtor balances have been transferred to the counterparty, though the transaction does not qualify for derecognition on the basis that the risks and rewards of ownership are retained by the company. The associated liability is recognised in creditors.
The amounts owed by group companies are interest free and have no fixed repayment terms.


17.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
37,368
37,053


Page 26

 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

18.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
68,000
68,000

Trade creditors
336,483
401,568

Amounts owed to group undertakings
632,835
603,681

Other taxation and social security
300,821
168,056

Obligations under finance lease and hire purchase contracts
357,429
298,504

Proceeds of factored debts
573,693
962,994

Other creditors
187,157
129,637

Accruals and deferred income
144,003
132,159

2,600,421
2,764,599


Proceeds of factored debts are secured against the trade debtors of the company that they relate to.
Obligations under hire purchase and finance leases are secured on the assets concerned.
Amounts owed to group companies are interest free and have no fixed repayment terms.
Bank borrowings are secured by a debenture and cross guarantee given by Hybrid Laser Tech Ltd. The borrowings have a term of 72 months, the first 12 months are interest only and this is paid by the Government. Over the remaining 60 months, the loan is repayable by monthly installments. Interest is charged at a fixed rate of 2.62% over base rate.


19.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
147,334
215,333

Net obligations under finance leases and hire purchase contracts
752,598
876,605

899,932
1,091,938


Page 27

 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Falling due within one year
68,000
68,000

Falling due between 1 - 5 years
147,334
215,333

215,334
283,333



21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
390,653
338,024

Between 1-5 years
935,125
999,136

1,325,778
1,337,160

Page 28

 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

22.


Deferred taxation




2023


£






At beginning of year
245,365


Charged to profit or loss
(41,789)



At end of year
203,576

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
548,863
536,460

Other short term timing differences
889
(2,512)

Tax losses carried forward
(346,176)
(288,583)

203,576
245,365

The net deferred tax expected to reverse next year is £78,692 relating to the reversal of timing differences on tangible fixed assets.


23.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



2,000 (2022 - 2,000) Ordinary shares of £1.00 each
2,000
2,000



24.


Reserves

Profit and loss account

Includes all current and prior period retained profits and losses.

Page 29

 
SHEARLINE PRECISION ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

25.


Contingent liabilities

There is a cross guarantee and debenture given by Shearline Precision Engineering Limited and Hybrid Laser Tech Limited in respect of bank borrowings. The balance at the period end is £Nil (2022 - £Nil). The debt is secured by a debenture over all assets of the company.
The company has provided a guarantee for Shearline Holdings Limited of £1.4m and a debenture in respect of bank borrowings.


26.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £159,668 (2022 - £116,033). Contributions totalling £27,619 (2022 - £22,477) were payable to the fund at the balance sheet date and are included in creditors.


27.


Transactions with directors

A director has provided a guarantee of £1,850,000 in respect of bank borrowings of the company.
The company owed £175,911 (2022 - £107,160) to a director at the balance sheet date. Interest has been charged at an average rate of 6%. During the year rent of £276,000 (2022 - £276,000) has been paid to a director by the company.


28.


Related party transactions

The company has taken advantage of exemptions from the disclosure of transactions with other group companies.


29.


Controlling party

The immediate parent undertaking is Shearline Holdings Limited a company registered in England and Wales. 
The ultimate controlling party is D H Littlechild.

 
Page 30