Norton Precision Limited 03472628 false 2023-01-01 2023-12-31 2023-12-31 The principal activity of the company is that of light engineering. Digita Accounts Production Advanced 6.30.9574.0 true true 03472628 2023-01-01 2023-12-31 03472628 2023-12-31 03472628 core:RetainedEarningsAccumulatedLosses 2023-12-31 03472628 core:ShareCapital 2023-12-31 03472628 core:CurrentFinancialInstruments 2023-12-31 03472628 core:CurrentFinancialInstruments core:WithinOneYear 2023-12-31 03472628 core:Non-currentFinancialInstruments 2023-12-31 03472628 core:Non-currentFinancialInstruments core:AfterOneYear 2023-12-31 03472628 core:Goodwill 2023-12-31 03472628 core:FurnitureFittingsToolsEquipment 2023-12-31 03472628 core:MotorVehicles 2023-12-31 03472628 bus:SmallEntities 2023-01-01 2023-12-31 03472628 bus:AuditExemptWithAccountantsReport 2023-01-01 2023-12-31 03472628 bus:FullAccounts 2023-01-01 2023-12-31 03472628 bus:SmallCompaniesRegimeForAccounts 2023-01-01 2023-12-31 03472628 bus:RegisteredOffice 2023-01-01 2023-12-31 03472628 bus:Director1 2023-01-01 2023-12-31 03472628 bus:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 03472628 core:Goodwill 2023-01-01 2023-12-31 03472628 core:FurnitureFittingsToolsEquipment 2023-01-01 2023-12-31 03472628 core:MotorVehicles 2023-01-01 2023-12-31 03472628 core:PlantMachinery 2023-01-01 2023-12-31 03472628 countries:EnglandWales 2023-01-01 2023-12-31 03472628 2022-12-31 03472628 core:Goodwill 2022-12-31 03472628 core:FurnitureFittingsToolsEquipment 2022-12-31 03472628 core:MotorVehicles 2022-12-31 03472628 2022-01-01 2022-12-31 03472628 2022-12-31 03472628 core:RetainedEarningsAccumulatedLosses 2022-12-31 03472628 core:ShareCapital 2022-12-31 03472628 core:CurrentFinancialInstruments 2022-12-31 03472628 core:CurrentFinancialInstruments core:WithinOneYear 2022-12-31 03472628 core:Non-currentFinancialInstruments 2022-12-31 03472628 core:Non-currentFinancialInstruments core:AfterOneYear 2022-12-31 03472628 core:Goodwill 2022-12-31 03472628 core:FurnitureFittingsToolsEquipment 2022-12-31 03472628 core:MotorVehicles 2022-12-31 iso4217:GBP xbrli:pure

Registration number: 03472628

Prepared for the registrar

Norton Precision Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2023

 

Norton Precision Limited

(Registration number: 03472628)
Balance Sheet as at 31 December 2023

Note

2023
 £

2022
 £

Fixed assets

 

Intangible assets

4

-

-

Tangible assets

5

106,385

127,220

 

106,385

127,220

Current assets

 

Stocks

98,383

59,127

Debtors

6

89,185

72,095

Cash at bank and in hand

 

20,133

84,744

 

207,701

215,966

Creditors: Amounts falling due within one year

7

(269,269)

(168,843)

Net current (liabilities)/assets

 

(61,568)

47,123

Total assets less current liabilities

 

44,817

174,343

Creditors: Amounts falling due after more than one year

7

(113,806)

(135,451)

Net (liabilities)/assets

 

(68,989)

38,892

Capital and reserves

 

Called up share capital

130,100

130,100

Profit and loss account

(199,089)

(91,208)

Total equity

 

(68,989)

38,892

For the financial year ending 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

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

The director acknowledges his 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 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the director on 16 November 2024
 


M N Butler
Director

 

Norton Precision Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 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:
Botley Road
Horton Heath
Eastleigh
Hampshire
SO50 7DN

 

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 for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

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

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

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

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.

 

Norton Precision Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

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 rates prevailing on the initial transaction dates.

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

Tangible assets

Tangible assets are stated in 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

Motor vehicles

25% straight line

Plant and machinery

10-33% straight line

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.

Goodwill

Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

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

Asset class

Amortisation method and rate

Goodwill

Over 10 years

Trade debtors

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

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. 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 debtors.

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.

 

Norton Precision Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

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 all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

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.

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.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Norton Precision Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

Norton Precision Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

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.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

 

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 6 (2022 - 7).

 

4

Intangible assets

Goodwill
 £

Cost

At 1 January 2023

30,501

At 31 December 2023

30,501

Amortisation

At 1 January 2023

30,501

At 31 December 2023

30,501

Carrying amount

At 31 December 2023

-

At 31 December 2022

-

 

5

Tangible assets

Plant and machinery
 £

Motor vehicles
 £

Total
£

Cost

At 1 January 2023

439,993

9,675

449,668

Additions

843

-

843

At 31 December 2023

440,836

9,675

450,511

Depreciation

At 1 January 2023

312,773

9,675

322,448

Charge for the year

21,678

-

21,678

At 31 December 2023

334,451

9,675

344,126

Carrying amount

At 31 December 2023

106,385

-

106,385

At 31 December 2022

127,220

-

127,220

 

Norton Precision Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

 

6

Debtors

2023
£

2022
£

Trade debtors

78,396

64,337

Prepayments

10,789

7,758

89,185

72,095

 

7

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

8

47,697

50,794

Trade creditors

 

180,287

71,786

Social security and other taxes

 

12,232

16,391

Other creditors

 

24,810

21,154

Accrued expenses

 

4,140

8,718

Corporation tax liability

103

-

 

269,269

168,843

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

8

113,806

135,451

 

Norton Precision Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

 

8

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank borrowings

6,328

6,328

Bank overdrafts

20,414

-

Hire purchase liabilities

9,817

38,466

Director's loan account

11,138

6,000

47,697

50,794

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

34,806

41,134

Hire purchase liabilities

-

9,817

Director's loan account

79,000

84,500

113,806

135,451

Hire purchase liabilities are secured on the related asset being financed.

The £41,134 (2022: £47,462) bank borrowings (£6,328 due within one year (2022: £6,328) and £34,806 due after more than one year (2022: £41,134) represent a Bounce Back loan which is guaranteed by the UK Government.

 

9

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

At 31 December 2023, the total amount of financial commitments not included in the balance sheet is £66,000 (2022: £92,400).