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Registration number: 04048314

Merlin Precision Engineering Limited

Unaudited Filleted Financial Statements

for the Period from 31 August 2022 to 29 August 2023

 

Merlin Precision Engineering Limited

Contents

Company Information

1

Accountants' Report

2

Balance Sheet

3 to 4

Notes to the Unaudited Financial Statements

5 to 12

 

Merlin Precision Engineering Limited

Company Information

Directors

Mrs L Murphy

Mr G Murphy

Mr G L Murphy

Mr N R Murphy

Company secretary

Mr G Murphy

Registered office

Eldon Street
Range Lane
Halifax
West Yorkshire
HX3 6DW

Accountants

Hargreaves Brown & Benson
Chartered Accountants
1 Bond Street
Colne
Lancashire
BB8 9DG

 

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Merlin Precision Engineering Limited
for the Period Ended 29 August 2023

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Merlin Precision Engineering Limited for the period ended 29 August 2023 as set out on pages 3 to 12 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/regulation.

This report is made solely to the Board of Directors of Merlin Precision Engineering Limited, as a body. Our work has been undertaken solely to prepare for your approval the accounts of Merlin Precision Engineering Limited and state those matters that we have agreed to state to the Board of Directors of Merlin Precision Engineering Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Merlin Precision Engineering Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Merlin Precision Engineering Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Merlin Precision Engineering Limited. You consider that Merlin Precision Engineering Limited is exempt from the statutory audit requirement for the period.

We have not been instructed to carry out an audit or a review of the accounts of Merlin Precision Engineering Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

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

Hargreaves Brown & Benson
Chartered Accountants
1 Bond Street
Colne
Lancashire
BB8 9DG

18 November 2024

 

Merlin Precision Engineering Limited

(Registration number: 04048314)
Balance Sheet as at 29 August 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

4

8,329

19,578

Tangible assets

5

227,964

222,140

 

236,293

241,718

Current assets

 

Stocks

6

4,428

3,126

Debtors

7

58,352

125,166

Cash at bank and in hand

 

64

717

 

62,844

129,009

Creditors: Amounts falling due within one year

8

(78,214)

(96,297)

Net current (liabilities)/assets

 

(15,370)

32,712

Total assets less current liabilities

 

220,923

274,430

Creditors: Amounts falling due after more than one year

8

(17,463)

(27,227)

Provisions for liabilities

(35,441)

(4,207)

Net assets

 

168,019

242,996

Capital and reserves

 

Called up share capital

100

100

Revaluation reserve

118,221

153,846

Retained earnings

49,698

89,050

Shareholders' funds

 

168,019

242,996

 

Merlin Precision Engineering Limited

(Registration number: 04048314)
Balance Sheet as at 29 August 2023

For the financial period ending 29 August 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the period in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

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

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

Approved and authorised by the Board on 18 November 2024 and signed on its behalf by:
 

.........................................
Mr G Murphy
Company secretary and director

 

Merlin Precision Engineering Limited

Notes to the Unaudited Financial Statements for the Period from 31 August 2022 to 29 August 2023

1

General information

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

The address of its registered office is:
Eldon Street
Range Lane
Halifax
West Yorkshire
HX3 6DW

These financial statements were authorised for issue by the Board on 18 November 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

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

Basis of preparation

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

Going concern

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

Revenue recognition

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

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

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

 

Merlin Precision Engineering Limited

Notes to the Unaudited Financial Statements for the Period from 31 August 2022 to 29 August 2023

Tax

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

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

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

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

Depreciation

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

Asset class

Depreciation method and rate

Land and buildings

2% straight line

Plant and machinery

15% reducing balance

Motor vehicles

25% reducing balance

Computer equipment

33% straight line

Amortisation

Amortisation is provided on intangible assets so as to write off the cost of the asset based on the estimated residual value, as follows:

Asset class

Amortisation method and rate

Research and development

33% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

Merlin Precision Engineering Limited

Notes to the Unaudited Financial Statements for the Period from 31 August 2022 to 29 August 2023

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

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

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

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

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

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

Leases

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

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

Merlin Precision Engineering Limited

Notes to the Unaudited Financial Statements for the Period from 31 August 2022 to 29 August 2023

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

3

Staff numbers

The average number of persons employed by the company (including directors) during the period was 5 (2022 - 5).

 

Merlin Precision Engineering Limited

Notes to the Unaudited Financial Statements for the Period from 31 August 2022 to 29 August 2023

4

Intangible assets

Development costs
 £

Total
£

Cost or valuation

At 31 August 2022

147,640

147,640

At 29 August 2023

147,640

147,640

Amortisation

At 31 August 2022

128,062

128,062

Amortisation charge

11,249

11,249

At 29 August 2023

139,311

139,311

Carrying amount

At 29 August 2023

8,329

8,329

At 30 August 2022

19,578

19,578

5

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 31 August 2022

200,000

41,802

12,064

253,866

Additions

3,500

6,000

-

9,500

Disposals

-

-

(4,990)

(4,990)

At 29 August 2023

203,500

47,802

7,074

258,376

Depreciation

At 31 August 2022

-

21,458

10,268

31,726

Charge for the period

-

3,138

420

3,558

Eliminated on disposal

-

-

(4,872)

(4,872)

At 29 August 2023

-

24,596

5,816

30,412

Carrying amount

At 29 August 2023

203,500

23,206

1,258

227,964

At 30 August 2022

200,000

20,344

1,796

222,140

 

Merlin Precision Engineering Limited

Notes to the Unaudited Financial Statements for the Period from 31 August 2022 to 29 August 2023

Revaluation

The fair value of the company's land and buildings was revalued on 31 March 2013. An independent valuer was not involved.
The property was revalued at market value.
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £52,454 (2022 - £52,454).

The fair value of the company's Plant and machinery was revalued on 31 August 2020. An independent valuer was not involved.
The plant and machinery was revalued at market value.
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £1,092 (2022 - £1,285).

6

Stocks

2023
£

2022
£

Other inventories

4,428

3,126

7

Debtors

2023
£

2022
£

Trade debtors

6,344

13,100

Prepayments

1,724

2,113

Other debtors

50,284

109,953

58,352

125,166

 

Merlin Precision Engineering Limited

Notes to the Unaudited Financial Statements for the Period from 31 August 2022 to 29 August 2023

8

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

9

31,263

21,701

Trade creditors

 

3,200

27,398

Taxation and social security

 

22,468

21,714

Accruals and deferred income

 

17,594

24,788

Other creditors

 

3,689

696

 

78,214

96,297

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

9

17,463

27,227

9

Loans and borrowings

Non-current loans and borrowings

2023
£

2022
£

Bank borrowings

17,463

27,227

Current loans and borrowings

2023
£

2022
£

Bank borrowings

10,648

10,649

Bank overdrafts

16,635

7,812

Other borrowings

3,980

3,240

31,263

21,701

The bank overdraft is secured on the company's assets.

 

Merlin Precision Engineering Limited

Notes to the Unaudited Financial Statements for the Period from 31 August 2022 to 29 August 2023

10

Related party transactions

Transactions with directors

2023

At 31 August 2022
£

Advances to director
£

Repayments by director
£

At 29 August 2023
£

The loan is repayable on demand

109,413

89,901

(150,491)

48,823

 

2022

At 31 August 2021
£

Advances to director
£

Repayments by director
£

At 30 August 2022
£

The loan is repayable on demand

96,506

112,797

(99,890)

109,413

 

Interest on the overdrawn loan account has been charged at the official rate.