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Registered number: 01380206










PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2024

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 
 
COMPANY INFORMATION


Directors
R G Penny 
T J Penny 
A J Holmes 
D J Ball (appointed 17 April 2024)




Company secretary
A J Holmes



Registered number
01380206



Registered office
Station Road
Clowne

Chesterfield

Derbyshire

S43 4AB




Independent auditors
Shorts
Chartered Accountants & Statutory Auditor

2 Ashgate Road

Chesterfield

Derbyshire

S40 4AA




Bankers
Barclays Bank plc





 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 

CONTENTS



Page
Group Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Consolidated Statement of Comprehensive Income
 
9
Consolidated Balance Sheet
 
10
Company Balance Sheet
 
11
Consolidated Statement of Changes in Equity
 
12
Company Statement of Changes in Equity
 
13
Consolidated Statement of Cash Flows
 
14 - 15
Consolidated Analysis of Net Debt
 
16
Notes to the Financial Statements
 
17 - 34


 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024

Introduction
 
The Directors present their report and financial statements for the year ended 30th June 2024.

Business review
 
The Board remains cautious and maintains a strong financial position with investment focussed on efficiency, quality and sustainability. 
On the 1st of May 2024, Penny Engineering Limited carried out a hive up of the assets and liabilities of its subsidiary Sidetracker Engineering Limited. These were transferred at their book value and Sidetracker has now become a strategic department within the main company. The Board will continue to grow this recognised brand with the re-organisation leading to efficiencies and substantial cost savings.
Towards the end of the year the Group undertook a change of name to Penny Engineering Limited from Penny Hydraulics Limited.  This was to better reflect the wide range of engineering disciplines now being undertaken compared to its hydraulic focus of earlier years. It was thought that some new customers had been disinclined to come to Penny Hydraulics Limited with more general engineering requirements when these were exactly the type of customer that the Group could help.  This was purely a name change and there was no other change to the management or ownership of the business.
Over the year a new insulated roof and walls has been fitted to three factory bays along with solar panels and four EV chargers.  The investment will save on future repairs, heating costs and electricity bills whilst supporting the ongoing move to electric vehicles. The Group currently has nine EV’s. Investment in IT, staff training, R & D and marketing continued at the historic high levels that have been established.  
Turnover during the past financial year was at an excellent level considering the economic uncertainty. Total sales for the year amounted to £10,171,318 with export sales at record levels.  Building new links with overseas customers and strengthening old links is a key priority.

Going concern
 
The Board’s cautious approach and high levels of re-investment in the past has kept the Group at the forefront of technology with respected products, efficient systems and low overheads. The Group has no borrowing requirement. Most components are UK or EU sourced with little reliance on the Far East. The diverse customer base allows marketing resource to be redirected should any one sector suffer a down-turn.   

Page 1

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 

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

Key performance indicators
 
The directors use a number KPls in measuring the performance of the business, as follows: -
• Trends in turnover year on year
• Profit before tax as a percentage of turnover
• Return on capital employed
• Trends in cashflow
• Debtor Days and Creditor Days
• Trends in output by product
• Health and safety statistics
• Net promoter score and Trust pilot reviews
• Monitoring of energy consumption
Other key performance indicators 
The Group is committed to conducting its business in an ethically responsible manner and this commitment has been recognised in that the operating and management systems have been certified as meeting the standards required by ISO 45001 (Occupational Health and Safety Management), ISO 14001 (Environmental Management) as well as ISO 9001 (Quality Management). The topic of corporate, social and environmental governance continues to be greatly important to the business and during the last financial year the board and senior leadership team’s focus is to ensure sustainability, support our local community and protection of the environment.

Financial risk management objectives
 
The Group's operations expose it to a variety of financial risks that include the effects of  credit risk and exchange rate risk. The company monitors and acts in each of these areas as follows:
Credit Risk
The Group has implemented policies that require appropriate credit checks on potential customers before sales are made, in addition, credit checks are made on those customers who are deemed to be a significant credit risk to the Group. The Group also monitors all court judgements made against its customers and makes appropriate adjustments in the light of this information.
Exchange Rate Risk
The Group monitors its exposures in the foreign currencies in which it regularly transacts in order to protect against excessive fluctuations.


This report was approved by the board on 6 November 2024 and signed on its behalf.



R G Penny
Director

Page 2

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024

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

Directors

The directors who served during the year were:

R G Penny 
T J Penny 
A J Holmes 
D J Ball (appointed 17 April 2024)

Results and dividends

The profit for the year, after taxation, amounted to £490,347 (2023 - £926,316).

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

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


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

make judgements and accounting estimates that are reasonable and prudent;

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

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

Qualifying third party indemnity provisions

The directors have been granted a qualifying third party indemnity provision under Section 234 of the Companies Act 2006. This indemnity does not provide cover in the event of a director acting fraudulently or dishonestly.

Page 3

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

Disclosure of information to auditors

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

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

Post balance sheet events

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

Auditors

The auditorsShortswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 6 November 2024 and signed on its behalf.
 





R G Penny
Director

Page 4

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 

Opinion


We have audited the financial statements of Penny Engineering Limited (formally Penny Hydraulics Limited) (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 June 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 30 June 2024 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 5

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED) (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


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


Page 6

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED) (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


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


Auditors' responsibilities for the audit of the financial statements
 

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


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

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:
 
the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
through discussions with the directors and other management and from our commercial knowledge and experience of the clients business, we identified the laws and regulations applicable to the Company; and
focusing on the specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, we assessed the extent of compliance with those laws and regulations identified above through making enquiries of management and inspecting relevant correspondence.

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

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulation.

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

performed analytical procedures to identify any unusual or unexpected relationships;
reviewed journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were
Page 7

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED) (CONTINUED)


indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

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

agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing and correspondence with HMRC, relevant regulators and the Company’s legal advisors.

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 for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.




Howard Freeman (Senior Statutory Auditor)
  
for and on behalf of
Shorts
 
Chartered Accountants
Statutory Auditor
  
2 Ashgate Road
Chesterfield
Derbyshire
S40 4AA

6 November 2024
Page 8

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
Note
£
£

  

Turnover
 4 
10,171,318
9,259,405

Cost of sales
  
(5,423,580)
(5,122,217)

Gross profit
  
4,747,738
4,137,188

Administrative expenses
  
(4,208,805)
(3,321,967)

Other operating income
 5 
87,679
94,193

Operating profit
 6 
626,612
909,414

Income from fixed assets investments
  
-
2,601

Amounts written off investments
  
-
7,988

Interest receivable and similar income
  
61,060
28,773

Interest payable and similar expenses
  
(7)
-

Profit before taxation
  
687,665
948,776

Tax on profit
 10 
(197,318)
(22,460)

Profit for the financial year
  
490,347
926,316

  

Profit for the year attributable to:
  

Owners of the parent Company
  
490,347
926,316

The notes on pages 17 to 34 form part of these financial statements.

Page 9

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
REGISTERED NUMBER: 01380206

CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 11 
264,696
305,743

Tangible assets
 12 
3,420,239
3,267,254

  
3,684,935
3,572,997

Current assets
  

Stocks
 14 
2,303,629
2,291,021

Debtors: amounts falling due within one year
 15 
1,242,399
1,570,820

Cash at bank and in hand
 16 
2,649,460
2,181,093

  
6,195,488
6,042,934

Creditors: amounts falling due within one year
 17 
(1,948,506)
(1,892,660)

Net current assets
  
 
 
4,246,982
 
 
4,150,274

Total assets less current liabilities
  
7,931,917
7,723,271

Provisions for liabilities
  

Deferred taxation
 18 
(299,523)
(186,683)

Net assets
  
7,632,394
7,536,588


Capital and reserves
  

Called up share capital 
 19 
1,494
1,494

Share premium account
 20 
9,994
9,994

Capital redemption reserve
 20 
512
512

Profit and loss account
 20 
7,620,394
7,524,588

Equity attributable to owners of the parent Company
  
7,632,394
7,536,588


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 6 November 2024.




R G Penny
A J Holmes
Director
Director

The notes on pages 17 to 34 form part of these financial statements.

Page 10

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
REGISTERED NUMBER: 01380206

COMPANY BALANCE SHEET
AS AT 30 JUNE 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
3,420,238
3,097,178

Investments
 13 
108
1,455,557

  
3,420,346
4,552,735

Current assets
  

Stocks
 14 
2,303,629
2,197,596

Debtors: amounts falling due within one year
 15 
1,271,966
1,472,307

Cash at bank and in hand
 16 
2,619,784
1,993,799

  
6,195,379
5,663,702

Creditors: amounts falling due within one year
 17 
(1,948,506)
(2,483,976)

Net current assets
  
 
 
4,246,873
 
 
3,179,726

Total assets less current liabilities
  
7,667,219
7,732,461

  

Provisions for liabilities
  

Deferred taxation
 18 
(299,523)
(205,223)

Net assets
  
7,367,696
7,527,238


Capital and reserves
  

Called up share capital 
 19 
1,494
1,494

Share premium account
 20 
9,994
9,994

Capital redemption reserve
 20 
512
512

Profit and loss account carried forward
  
7,355,696
7,515,238

  
7,367,696
7,527,238


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 6 November 2024.

R G Penny
A J Holmes
Director
Director

The notes on pages 17 to 34 form part of these financial statements.

Page 11

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 

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


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

£
£
£
£
£


At 1 July 2022
1,500
9,994
506
6,979,659
6,991,659


Comprehensive income for the year

Profit for the year
-
-
-
926,316
926,316


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(353,387)
(353,387)

Purchase of own shares
-
-
6
(28,000)
(27,994)

Shares cancelled during the year
(6)
-
-
-
(6)



At 1 July 2023
1,494
9,994
512
7,524,588
7,536,588



Profit for the year
-
-
-
490,347
490,347

Dividends: Equity capital
-
-
-
(394,541)
(394,541)


At 30 June 2024
1,494
9,994
512
7,620,394
7,632,394


The notes on pages 17 to 34 form part of these financial statements.

Page 12

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 

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


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

£
£
£
£
£


At 1 July 2022
1,500
9,994
506
6,961,103
6,973,103


Comprehensive income for the year

Profit for the year
-
-
-
935,522
935,522


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(353,387)
(353,387)

Purchase of own shares
-
-
6
(28,000)
(27,994)

Shares cancelled during the year
(6)
-
-
-
(6)



At 1 July 2023
1,494
9,994
512
7,515,238
7,527,238


Comprehensive income for the year

Profit for the year
-
-
-
234,999
234,999


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(394,541)
(394,541)


At 30 June 2024
1,494
9,994
512
7,355,696
7,367,696


The notes on pages 17 to 34 form part of these financial statements.

Page 13

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 

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

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
490,347
926,316

Adjustments for:

Amortisation of intangible assets
41,047
41,046

Depreciation of tangible assets
310,967
288,849

Loss on disposal of tangible assets
(16,379)
(634,346)

Interest paid
7
-

Interest and dividends received
(61,060)
(31,374)

Taxation charge
197,318
22,460

(Increase) in stocks
(12,608)
(375,947)

Decrease/(increase) in debtors
328,421
(167,620)

(Decrease) in creditors
(28,632)
(224,812)

Net fair value losses/(gains) recognised in P&L
-
(7,420)

Corporation tax received/(paid)
-
(64,478)

Net cash generated from operating activities

1,249,428
(227,326)


Cash flows from investing activities

Purchase of intangible fixed assets
-
(13,043)

Purchase of tangible fixed assets
(464,454)
(941,046)

Sale of tangible fixed assets
16,881
876,903

Sale of short-term listed investments
-
191,581

Interest received
61,060
28,773

Dividends received
-
2,601

Net cash from investing activities

(386,513)
145,769
Page 14

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 

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


2024
2023

£
£



Cash flows from financing activities

Dividends paid
(394,541)
(353,387)

Interest paid
(7)
-

Purchase of own shares
-
(28,000)

Net cash used in financing activities
(394,548)
(381,387)

Net increase/(decrease) in cash and cash equivalents
468,367
(462,944)

Cash and cash equivalents at beginning of year
2,181,093
2,644,037

Cash and cash equivalents at the end of year
2,649,460
2,181,093


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,649,460
2,181,093


The notes on pages 17 to 34 form part of these financial statements.

Page 15

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 

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




At 1 July 2023
Cash flows
At 30 June 2024
£

£

£

Cash at bank and in hand

2,181,093

468,367

2,649,460


2,181,093
468,367
2,649,460

The notes on pages 17 to 34 form part of these financial statements.

Page 16

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

1.


General information

Penny Engineering Limited is a private company limited by shares, incorporated in England and Wales (registered number: 01380206). Its registered office is Station Road, Clowne, Chesterfield, Derbyshire, S43 4AB. The principal activity of the Group continued to be that of design, manufacture, installation and service of bespoke lifting equipment. Products include vehicle mounted cranes, goods lifts, winch systems for chandeliers, multi-directional fork-lift trucks and equipment for the nuclear decommissioning industry.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

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

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

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

 
2.3

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.

Page 17

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group 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 Group has transferred the significant risks and rewards of ownership to the buyer;
the Group 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 Group 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.

 
2.5

Operating leases: the Group as lessee

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

 
2.6

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.7

Current and deferred taxation

Tax is recognised in the Statement of Comprehensive Income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet 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 Balance Sheet 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.

Page 18

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.8

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.9

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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as follows:

The depreciation rates used are:

Freehold property
-
4%
straight line
Plant and machinery
-
15%
straight line
Motor vehicles
-
25%
straight line
Office equipment
-
25%
straight line
Computer equipment
-
25%
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 19

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.10

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

 
2.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

 
2.12

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 first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet 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 profit or loss.

 
2.13

Financial instruments

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

Page 20

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

No significant judgements have had to be made by management in preparing these financial statements.
The Group 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 the greatest level of uncertainty are addressed below:
(i) Stock provisioning
When calculating the stock provision, management considers the nature and condition of the inventory, as well as applying assumptions around anticipated saleability of stock. The carrying value of stock after making such a provision was £2,303,629 (2023: £2,291,021).
(ii) Impairment of debtors 
The Group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. The amount of trade and other debtors after making such provision was £1,242,399 (2023: £1,570,820).
(iii) Warranty provision
Based upon previous experience and the particular profile of the sales at the time, the Group has made an estimate in respect of a warranty provision of £92,682 (2023: £86,428). 


4.


Turnover

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


2024
2023
£
£

Sales
10,171,318
9,259,405


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
9,154,319
8,469,618

Rest of Europe
903,374
513,618

Rest of the world
113,625
276,169

10,171,318
9,259,405


Page 21

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

5.


Other operating income

2024
2023
£
£

Other operating income
31,383
55,380

Net rents receivable
56,296
38,813

87,679
94,193



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
310,967
288,849

Defined contribution pension costs
252,306
237,911

Operating lease rentals
31,105
14,109

Profit on disposal of fixed assets
(16,379)
(634,346)


7.


Auditors' remuneration

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


2024
2023
£
£

Fees payable to the Group's auditors for the audit of the consolidated and parent company's financial statements
23,020
20,925


Fees payable to the Group's auditor and its associates in respect of:

2024
2023
£
£



Taxation compliance services
3,010
4,800

Other services relating to taxation
45,638
3,815

Corporate finance services
6,000
-

54,648
8,615

Page 22

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

8.


Employees

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


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


Wages and salaries
3,143,926
2,995,937
2,947,827
2,748,536

Social security costs
296,996
289,054
291,900
273,325

Cost of defined contribution scheme
252,307
237,911
218,494
189,358

3,693,229
3,522,902
3,458,221
3,211,219


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



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Production
50
64
50
62



Management & administration
45
35
35
33



Selling & distribution
5
5
5
5

100
104
90
100


9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
219,698
221,977

Group contributions to defined contribution pension schemes
45,650
37,500

265,348
259,477


During the year retirement benefits were accruing to 1 director (2023 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £82,551 (2023 - £85,576).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £45,650 (2023 - £37,500).

Page 23

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
84,478
-


Deferred tax


Origination and reversal of timing differences
112,840
22,460

Total deferred tax
112,840
22,460


Taxation on profit on ordinary activities
197,318
22,460

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 20.5%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
687,665
948,776


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 20.5%)
171,916
194,458

Effects of:


Non-tax deductible amortisation of goodwill and impairment
8,631
7,078

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
11,931
(115,257)

Capital allowances for year in excess of depreciation
8,730
-

Other timing differences leading to an increase (decrease) in taxation
-
414

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
(26,736)
(68,280)

Remeasurement of deferred tax for changes in tax rates
-
4,047

Adjustments in respect of prior periods (deferred tax)
22,846
-

Total tax charge for the year
197,318
22,460


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 24

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

11.


Intangible assets

Group





Development expenditure
Goodwill
Total

£
£
£



Cost


At 1 July 2023
13,043
345,254
358,297



At 30 June 2024

13,043
345,254
358,297



Amortisation


At 1 July 2023
6,521
46,033
52,554


Charge for the year on owned assets
6,522
34,525
41,047



At 30 June 2024

13,043
80,558
93,601



Net book value



At 30 June 2024
-
264,696
264,696



At 30 June 2023
6,522
299,221
305,743



Page 25

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

12.


Tangible fixed assets

Group






Freehold property
Plant and machinery
Motor vehicles
Office equipment
Computer equipment
Total

£
£
£
£
£
£



Cost


At 1 July 2023
3,045,282
839,410
625,806
7,393
196,402
4,714,293


Additions
179,805
80,487
194,684
-
9,478
464,454


Disposals
-
(17,619)
(129,389)
-
-
(147,008)


Transfers between classes
-
(49,250)
(26,576)
-
12,659
(63,167)



At 30 June 2024

3,225,087
853,028
664,525
7,393
218,539
4,968,572



Depreciation


At 1 July 2023
392,703
514,436
363,933
7,389
168,578
1,447,039


Charge for the year on owned assets
96,568
85,559
115,824
-
13,016
310,967


Disposals
-
(17,619)
(128,887)
-
-
(146,506)


Transfers between classes
-
(34,156)
(29,011)
-
-
(63,167)



At 30 June 2024

489,271
548,220
321,859
7,389
181,594
1,548,333



Net book value



At 30 June 2024
2,735,816
304,808
342,666
4
36,945
3,420,239



At 30 June 2023
2,652,579
324,974
261,873
4
27,824
3,267,254

Page 26

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

           12.Tangible fixed assets (continued)


Company






Freehold property
Plant and machinery
Motor vehicles
Office equipment
Computer equipment
Total

£
£
£
£
£
£

Cost


At 1 July 2023
3,045,282
689,283
565,736
7,393
196,402
4,504,096


Additions
179,805
56,529
187,976
-
9,478
433,788


Transfers intra group
-
107,216
40,202
-
12,659
160,077


Disposals
-
-
(129,389)
-
-
(129,389)



At 30 June 2024

3,225,087
853,028
664,525
7,393
218,539
4,968,572



Depreciation


At 1 July 2023
392,703
493,389
344,859
7,389
168,578
1,406,918


Charge for the year on owned assets
96,568
54,831
105,888
-
13,016
270,303


Disposals
-
-
(128,887)
-
-
(128,887)



At 30 June 2024

489,271
548,220
321,860
7,389
181,594
1,548,334



Net book value



At 30 June 2024
2,735,816
304,808
342,665
4
36,945
3,420,238



At 30 June 2023
2,652,579
195,894
220,877
4
27,824
3,097,178








Page 27

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

13.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost


At 1 July 2023
2,230,557



At 30 June 2024

2,230,557



Impairment


At 1 July 2023
775,000


Charge for the period
1,455,449



At 30 June 2024

2,230,449



Net book value



At 30 June 2024
108



At 30 June 2023
1,455,557

Page 28

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

R & L Systems Limited
Station Road Industrial Estate, Station Road, Clowne, Derbyshire, United Kingdom, S43 4AB
Dormant
Ordinary
100%
Penny Lifting Limited
Station Road Industrial Estate, Station Road, Clowne, Derbyshire, United Kingdom, S43 4AB
Dormant
Ordinary
100%
Penny Nuclear Limited
Station Road Industrial Estate, Station Road, Clowne, Derbyshire, United Kingdom, S43 4AB
Dormant
Ordinary
100%
Raising & Lowering Systems Limited
Station Road Industrial Estate, Station Road, Clowne, Derbyshire, United Kingdom, S43 4AB
Dormant
Ordinary
100%
Penny Cranes Limited
Station Road Industrial Estate, Station Road, Clowne, Derbyshire, United Kingdom, S43 4AB
Dormant
Ordinary
100%
Penny Lifts Limited
Station Road Industrial Estate, Station Road, Clowne, Derbyshire, United Kingdom, S43 4AB
Dormant
Ordinary
100%
Penny Engineering Group Limited
Station Road Industrial Estate, Station Road, Clowne, Derbyshire, United Kingdom, S43 4AB
Dormant
Ordinary
100%
Sidetracker Engineering Limited
Station Road Industrial Estate, Station Road, Clowne, Derbyshire, United Kingdom, S43 4AB
Production and design of multi-directional fork lift trucks
Ordinary
100%
Penny Hydraulics Limited
Station Road Industrial Estate, Station Road, Clowne, Derbyshire, United Kingdom, S43 4AB
Dormant
Ordinary
100%

Page 29

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Subsidiary undertakings (continued)

The aggregate of the share capital and reserves as at 30 June 2024 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

R & L Systems Limited
1
-

Penny Lifting Limited
1
-

Penny Nuclear Limited
100
-

Raising & Lowering Systems Limited
1
-

Penny Cranes Limited
1
-

Penny Lifts Limited
1
-

Penny Engineering Group Limited
1
-

Sidetracker Engineering Limited
1
59,799

Penny Hydraulics Limited
1
-


14.


Stocks

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

Finished goods and goods for resale
2,303,629
2,291,021
2,303,629
2,197,596


Page 30

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

15.


Debtors

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


Trade debtors
1,006,584
1,381,491
1,006,584
1,293,353

Amounts owed by group undertakings
-
-
29,567
-

Other debtors
235,815
186,011
235,815
178,954

Prepayments and accrued income
-
3,318
-
-

1,242,399
1,570,820
1,271,966
1,472,307



16.


Cash and cash equivalents

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

Cash at bank and in hand
2,649,460
2,181,093
2,619,784
1,993,799



17.


Creditors: Amounts falling due within one year

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

Trade creditors
822,339
879,739
822,339
864,024

Amounts owed to group undertakings
-
-
-
681,625

Corporation tax
84,478
-
84,478
-

Other taxation and social security
261,307
223,175
261,307
223,175

Other creditors
133,445
133,206
133,445
133,204

Accruals and deferred income
646,937
656,540
646,937
581,948

1,948,506
1,892,660
1,948,506
2,483,976




Page 31

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

18.


Deferred taxation


Group



2024


£






At beginning of year
186,683


Charged to profit or loss
112,840



At end of year
299,523

Company


2024


£






At beginning of year
205,223


Charged to profit or loss
94,300



At end of year
299,523

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

Accelerated capital allowances
301,398
295,908
301,398
251,486

Movement in provisions
(1,875)
(2,500)
(1,875)
(2,500)

Tax losses carried forward
-
(106,725)
-
(43,763)

299,523
186,683
299,523
205,223

Page 32

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

19.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



249 (2023 - 249) Ordinary shares of £1.00 each
249
249
6 (2023 - 6) A Ordinary shares of £1.00 each
6
6
249 (2023 - 249) B Ordinary shares of £1.00 each
249
249
496 (2023 - 496) C Ordinary shares of £1.00 each
496
496
492 (2023 - 492) D Ordinary shares of £1.00 each
492
492
1 (2023 - 1) E Ordinary share of £1.00 each
1
1
1 (2023 - 1) F Ordinary share of £1.00 each
1
1

1,494

1,494



20.


Reserves

Share premium account

Share premium reserve represents the amount above the nominal value received for shares sold, less transaction costs.

Capital redemption reserve

The capital redemption reserve represents the amount of money the Group must retain within reserves when it buys back company shares and this is a non distributable reserve.

Profit and loss account

Profit and loss account represents all current and prior period retained profits and losses and is all considered to be distributable.


21.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £252,306 (2023: £237,912).

Page 33

 
PENNY ENGINEERING LIMITED (FORMALLY PENNY HYDRAULICS LIMITED)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

22.


Commitments under operating leases

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


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

Not later than 1 year
49,378
16,135
49,378
16,135

Later than 1 year and not later than 5 years
79,806
44,273
79,806
44,273

Later than 5 years
13,340
-
13,340
-

142,524
60,408
142,524
60,408

Page 34