Company registration number 04198346 (England and Wales)
PHOENIX CNC ENGINEERING LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
PHOENIX CNC ENGINEERING LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
PHOENIX CNC ENGINEERING LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
828,888
918,918
Current assets
Stocks
2,165,267
2,352,178
Debtors
5
11,943,199
10,077,222
Cash at bank and in hand
237,892
785,658
14,346,358
13,215,058
Creditors: amounts falling due within one year
6
(5,257,520)
(3,599,516)
Net current assets
9,088,838
9,615,542
Total assets less current liabilities
9,917,726
10,534,460
Creditors: amounts falling due after more than one year
7
(633,966)
(464,590)
Provisions for liabilities
(27,161)
(22,968)
Net assets
9,256,599
10,046,902
Capital and reserves
Called up share capital
9
16,000
16,000
Capital redemption reserve
44,000
44,000
Profit and loss reserves
9,196,599
9,986,902
Total equity
9,256,599
10,046,902

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 20 November 2024 and are signed on its behalf by:
Mr W R J Rawkins
Director
Company Registration No. 04198346
PHOENIX CNC ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
1
Accounting policies
Company information

Phoenix CNC Engineering Limited is a private company limited by shares incorporated in England and Wales. The registered office is c/o A2e Industries Limited, No. 1 Marsden Street, Manchester, United Kingdom, M2 1HW.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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

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

The financial statements of the company are consolidated in the financial statements of Aero Services Global Group Limited. These consolidated financial statements are available from its registered office,C/O A2e Industries Limited, No.1 Marsden Street, Manchester, England, M2 1 HW .

1.2
Going concern

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

1.3
Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover comprises revenue recognised by the Company in respect of goods supplied during the period, exclusive of Value Added Tax and trade discounts.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

PHOENIX CNC ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 3 -
1.4
Tangible fixed assets

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

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

Leasehold land and buildings
Over the life of the lease
Plant and equipment
10 years straight line
Fixtures and fittings
2  to 5 years straight line
Motor vehicles
4 years straight line

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

1.5
Impairment of fixed assets

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

1.6
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 reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

1.8
Financial instruments

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

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

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

PHOENIX CNC ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

Derecognition of financial liabilities

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

1.9
Taxation

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

Current tax

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

PHOENIX CNC ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 5 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

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

1.10
Employee benefits

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

 

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

 

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

1.11
Retirement benefits

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

1.12
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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

1.13
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

PHOENIX CNC ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 6 -
1.14
Foreign exchange

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

1.15

Exceptional items

Exceptional items are unusual or non-recurring in nature and are recognised as incurred.

1.16

Comparative figures

During the period the directors reviewed the classification of expenditure. The classification of prior year comparative figures have not been adjusted and thus do not provide an exact comparative.

2
Judgements and key sources of estimation uncertainty

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

 

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

Stock provision

The company makes an estimate of the recoverable value of stocks. When assessing impairment of stocks, management considers factors including the current aging of the stocks held and the budgeted sales volumes in the next 12 months of certain products.

 

WIP valuation

WIP is calculated using a rate to absorb the amount of labour used.

 

Management experience of their product lines are essential to determine the amount labour absorbed and thus the value of the WIP. Management's experience of their product lines is essential to determine the amount of labour absorbed and thus the value of WIP.

3
Employees

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

2024
2023
Number
Number
Total
42
41
PHOENIX CNC ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
4
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
415,842
4,140,905
4,100
62,666
4,623,513
Additions
-
0
40,175
-
0
52,699
92,874
At 31 March 2024
415,842
4,181,080
4,100
115,365
4,716,387
Depreciation and impairment
At 1 April 2023
184,490
3,472,254
2,050
45,801
3,704,595
Depreciation charged in the year
25,895
144,731
2,050
10,228
182,904
At 31 March 2024
210,385
3,616,985
4,100
56,029
3,887,499
Carrying amount
At 31 March 2024
205,457
564,095
-
0
59,336
828,888
At 31 March 2023
231,352
668,651
2,050
16,865
918,918
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,554,528
2,122,641
Amounts owed by group undertakings
10,059,461
7,470,038
Other debtors
329,210
484,543
11,943,199
10,077,222
6
Creditors: amounts falling due within one year
2024
2023
£
£
Obligations under finance leases
8
182,960
240,190
Invoice financing
1,344,478
1,778,524
Trade creditors
1,057,767
1,355,110
Amounts owed to group undertakings
2,269,992
137,674
Taxation and social security
273,277
49,618
Accruals and deferred income
129,046
38,400
5,257,520
3,599,516

Obligations under finance leases are secured over the assets to which they relate to.

 

Invoice financing facility is secured by a fixed and floating charge over the company's assets.

 

Amounts owed to group undertakings are repayable on demand and non-interest bearing.

PHOENIX CNC ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
7
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
8
633,966
464,590

Obligations under finance leases are secured over the assets to which they relate to.

8
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
182,960
240,190
In two to five years
633,966
464,590
816,926
704,780

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

9
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
16,000
16,000
16,000
16,000
10
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Helen Davies
Statutory Auditor:
Azets Audit Services
11
Financial commitments, guarantees and contingent liabilities

The company has provided an unlimited guarantee along with fellow group companies under common control regarding the investment made by Realta Investments Ireland DAC relating to Project Zephyr. This security given contains fixed and floating charges and a negative pledge. These charges were satisfied post-year end on 8 April 2024.

 

The company has in place a debenture with Close Brothers Limited, by way of fixed and floating charges over all the property or undertaking of the company and contains a negative pledge.

PHOENIX CNC ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
12
Operating lease commitments
Lessee

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

2024
2023
£
£
816,511
498,938
13
Related party transactions

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Other related parties
45,000
60,000
Other information

The company has taken advantage of the exemption permitted under Section 33 'Related Party Disclosures' paragraph 33.1A from disclosing transactions with the ultimate parent company, parent company and other 100% subsidiary companies.

14
Ultimate controlling party

The company's immediate parent company is ASG Investments 1 Limited.

 

Copies of the consolidated financial statements of Aero Services Global Group Limited, which is both the smallest and largest group for which consolidated financial statements are prepared, may be obtained from No. 1 Marsden Street, Manchester, England, M2 1HW.

 

The ultimate controlling party of Phoenix CNC Engineering Limited is Realta Investments Ireland DAC, which has the majority of the voting rights of Aero Services Global Group Limited.

2024-03-312023-04-01false21 November 2024CCH SoftwareCCH Accounts Production 2024.210No description of principal activityThis audit opinion is unqualifiedApadana Mangement LimitedMr W R J RawkinsMr G RichardsonMr J TolsonMr S WestonMr J MacKenziefalsefalse041983462023-04-012024-03-31041983462024-03-31041983462023-03-3104198346core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-03-3104198346core:PlantMachinery2024-03-3104198346core:FurnitureFittings2024-03-3104198346core:MotorVehicles2024-03-3104198346core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-03-3104198346core:PlantMachinery2023-03-3104198346core:FurnitureFittings2023-03-3104198346core:MotorVehicles2023-03-3104198346core:CurrentFinancialInstrumentscore:WithinOneYear2024-03-3104198346core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3104198346core:Non-currentFinancialInstrumentscore:AfterOneYear2024-03-3104198346core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3104198346core:CurrentFinancialInstruments2024-03-3104198346core:CurrentFinancialInstruments2023-03-3104198346core:ShareCapital2024-03-3104198346core:ShareCapital2023-03-3104198346core:CapitalRedemptionReserve2024-03-3104198346core:CapitalRedemptionReserve2023-03-3104198346core:RetainedEarningsAccumulatedLosses2024-03-3104198346core:RetainedEarningsAccumulatedLosses2023-03-3104198346bus:Director22023-04-012024-03-3104198346core:LandBuildingscore:LongLeaseholdAssets2023-04-012024-03-3104198346core:PlantMachinery2023-04-012024-03-3104198346core:FurnitureFittings2023-04-012024-03-3104198346core:MotorVehicles2023-04-012024-03-31041983462022-04-012023-03-3104198346core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-03-3104198346core:PlantMachinery2023-03-3104198346core:FurnitureFittings2023-03-3104198346core:MotorVehicles2023-03-31041983462023-03-3104198346core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-04-012024-03-3104198346core:WithinOneYear2024-03-3104198346core:WithinOneYear2023-03-3104198346core:Non-currentFinancialInstruments2024-03-3104198346core:Non-currentFinancialInstruments2023-03-3104198346core:BetweenTwoFiveYears2024-03-3104198346core:BetweenTwoFiveYears2023-03-3104198346bus:PrivateLimitedCompanyLtd2023-04-012024-03-3104198346bus:SmallCompaniesRegimeForAccounts2023-04-012024-03-3104198346bus:FRS1022023-04-012024-03-3104198346bus:Audited2023-04-012024-03-3104198346bus:Director12023-04-012024-03-3104198346bus:Director32023-04-012024-03-3104198346bus:Director42023-04-012024-03-3104198346bus:Director52023-04-012024-03-3104198346bus:Director62023-04-012024-03-3104198346bus:FullAccounts2023-04-012024-03-31xbrli:purexbrli:sharesiso4217:GBP