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Registration number: 02370671

Lincreal Precision Engineering Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 30 June 2024

 

Lincreal Precision Engineering Limited

Contents

Balance Sheet

1 to 2

Notes to the Financial Statements

3 to 10

 

Lincreal Precision Engineering Limited

(Registration number: 02370671)
Balance Sheet as at 30 June 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

4

605,762

704,280

Current assets

 

Stocks

5

124,250

241,750

Debtors

6

580,838

402,709

Cash at bank and in hand

 

19,219

16,324

 

724,307

660,783

Creditors: Amounts falling due within one year

7

(585,120)

(543,869)

Net current assets

 

139,187

116,914

Total assets less current liabilities

 

744,949

821,194

Creditors: Amounts falling due after more than one year

7

(375,691)

(530,209)

Provisions for liabilities

(139,803)

(138,807)

Net assets

 

229,455

152,178

Capital and reserves

 

Called up share capital

2

2

Capital redemption reserve

2

2

Retained earnings

229,451

152,174

Shareholders' funds

 

229,455

152,178

 

Lincreal Precision Engineering Limited

(Registration number: 02370671)
Balance Sheet as at 30 June 2024

For the financial year ending 30 June 2024 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 year 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 5 February 2025 and signed on its behalf by:
 

C J Hall
Director

   
     
 

Lincreal Precision Engineering Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

1

General information

The company is a private company limited by share capital, incorporated in United Kingdom.

The address of its registered office is:
Brympton Way
Lynx West Trading Estate
Yeovil
Somerset
BA20 2HP

2

Accounting policies

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.

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

Going concern

These financial statements are prepared on 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.

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.

 

Lincreal Precision Engineering Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

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.

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

Freehold land and buildings

2% straight line

Office equipment

25% reducing balance

Motor vehicles

25% reducing balance

Plant and machinery

15% reducing balance

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.

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 stocks 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.

 

Lincreal Precision Engineering Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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.

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.

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.

 

Lincreal Precision Engineering Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

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.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year was 20 (2023 - 9).

 

Lincreal Precision Engineering Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

4

Tangible assets

Freehold land and buildings
£

Plant and machinery
£

Office equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 July 2023

153,086

1,156,784

32,081

86,495

1,428,446

Additions

-

12,161

1,722

-

13,883

Disposals

-

(21,169)

(12,053)

-

(33,222)

At 30 June 2024

153,086

1,147,776

21,750

86,495

1,409,107

Depreciation

At 1 July 2023

82,839

601,256

18,936

21,135

724,166

Charge for the year

3,062

83,592

2,245

16,340

105,239

Eliminated on disposal

-

(18,929)

(7,131)

-

(26,060)

At 30 June 2024

85,901

665,919

14,050

37,475

803,345

Carrying amount

At 30 June 2024

67,185

481,857

7,700

49,020

605,762

At 30 June 2023

70,246

555,528

13,145

65,361

704,280

Included within the net book value of land and buildings above is £67,185 (2023 - £70,246) in respect of freehold land and buildings.
 

 

Lincreal Precision Engineering Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

5

Stocks

2024
£

2023
£

Other inventories

124,250

241,750

6

Debtors

Note

2024
£

2023
£

Trade debtors

 

463,352

347,669

Receivables from related parties

9

6,173

-

Prepayments

 

35,450

18,273

Other debtors

 

75,863

36,767

 

580,838

402,709

7

Creditors

Due within one year

Note

2024
£

2023
£

 

Loans and borrowings

8

158,569

151,863

Trade creditors

 

205,543

224,303

Amounts due to related parties

9

31,618

-

Social security and other taxes

 

132,352

44,193

Other creditors

 

2,028

105,963

Accruals

 

2,624

17,547

Corporation tax liability

52,386

-

 

585,120

543,869

Due after one year

 

Loans and borrowings

8

375,691

530,209

 

Lincreal Precision Engineering Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

8

Loans and borrowings

Non-current loans and borrowings

2024
£

2023
£

Bank borrowings

198,728

292,420

Hire purchase contracts

176,963

237,789

375,691

530,209

Current loans and borrowings

2024
£

2023
£

Bank borrowings

93,689

87,236

Hire purchase contracts

64,880

64,627

158,569

151,863

Bank borrowings

Within bank borrowings is a balance of £176,792 (2023 - £197,648) which is secured by fixed and floating charges over the propety and undertakings of the company.

Within bank borrowings is a balance of £115,625 (2023- £182,008) relating to an outstanding amount due from a Coronvirus Business Interruption Loan. The UK government have guaranteed 80% of the value of the loan, the remaining 20% is unsecured.
 

Other borrowings

The hire purchase contracts are secured on the underlying assets which are included within plant and machinery and motor vehicles. The net book value of the relevent assets at the balance sheet date is £530,877 (2023 - £620,889).
 

 

Lincreal Precision Engineering Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

9

Related party transactions


During the year a loan was maintained to the director. Interest was charged at 2.25% where applicable and the loan was repayable on demand.

Transactions with directors

2024

At 1 July 2023
£

Advances to director
£

Repayments by director
£

At 30 June 2024
£

28,264

72,189

(132,071)

(31,618)

 

2023

At 1 July 2022
£

Advances to director
£

Repayments by director
£

At 30 June 2023
£

17,823

45,441

(35,000)

28,264

 

Summary of transactions with parent

The company has taken advantage of the exemptions provided from disclosing transactions with its parent company on the grounds that it is a wholly owned subsidiary.

10

Parent and ultimate parent undertaking

The company's immediate parent is Lincreal Holdings Limited, incorporated in England and Wales.

  These financial statements are available upon request from 4 Brympton Way, Lynx Trading Estate, Yeovil, Somerset, BA20 2HP.