Company Registration No. 05300889 (England and Wales)
LTI METALTECH LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
LTI METALTECH LIMITED
COMPANY INFORMATION
Directors
M Kaiser
E Rayner
A Clark
Company number
05300889
Registered office
163 Brook Drive
Milton Park
Abingdon
Oxfordshire
OX14 4SD
Auditor
Shaw Gibbs (Audit) Limited
264 Banbury Road
Oxford
OX2 7DY
LTI METALTECH LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 25
LTI METALTECH LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the annual Strategic report and audited financial statements for the year ended 31 December 2024.
Review of the business and future developments
The principal activity of the company continued to be the fabrication and high-integrity, coded welding of safety critical pressure vessels, structures and storage containers. LTi Metaltech Ltd is a leading independent manufacturer of cryogenic and pressure vessels as used in highly regulated environments. The principal customer remains Siemens Healthineers, but the company has continued to secure one-off orders in targeted sectors such as renewable energies and aerospace with the aim of unlocking longer-term volume opportunities.
Our vision and strategies for the future remain focused on the expansion of our technical capabilities to enable development and manufacture of an increasingly diverse and complex range of products for new markets and an expanding customer base. Good progress has been made in harnessing inter-company collaboration opportunities with our subsidiary company Vessco Engineering Ltd. The latter has now been rebranded as LTi Vessco, further reinforcing its successful integration in the group.
Financial performance in 2024 was steady, turnover of £28.6 million (2023: £31.0m) generating an Operating profit of £0.6 million (2023: £0.9m). The company continues to carefully monitor commodity prices and currency exchange rates, and adopts appropriate hedging strategies to mitigate against significant fluctuations in both.
LTi Metaltech is very aware of its environmental responsibilities, and continues to take tangible measures to reduce its carbon footprint. A project to install solar panels on the roof of the principal factory on Milton Park has taken longer than anticipated to complete, but it is hoped installation will now commence in summer 2025.
Principal risks, uncertainties and risk management
The outlook for manufacturing SMEs remains full of uncertainty; rising inflation, logistics complexities, lengthening material lead times, and a stark shortage of skilled labour in particular. The company will continue to actively manage these risks through the adoption of appropriate strategies and ambitious investment in technology to improve productivity.
The company continues to carefully monitor commodity prices and currency exchange rates, and adopts appropriate hedging strategies to mitigate against significant fluctuations in both. The directors do not consider cash flow, liquidity nor price risks to be material to the company.
Development and performance
Innovative deployment of our manufacturing technologies has enabled continued involvement in collaborative development of new products with key customers.
We have maintained accreditations for quality, environment and health and safety, and we are proud to deliver high quality products on time, whilst maintaining a safe place to work and safeguarding our environment.
Financial key performance indicators
The company considers that its key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, primarily turnover and gross margin.
In the year to 31 December 2024, turnover decreased to £28.6 million, compared to £31.0 million for the prior year. Gross profit decreased proportionately to £4.8 million from £5.3 million in 2023.
LTI METALTECH LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
E Rayner
Director
16 May 2025
LTI METALTECH LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
M Kaiser
E Rayner
A Clark
Results and dividends
The results for the year are set out on page 8.
An interim dividend was not paid during the year (2023: £nil). The directors do not recommend payment of a final dividend.
Auditor
The auditor, Shaw Gibbs (Audit) Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable laws 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's Strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the Directors' report. It has done so in respect of future developments and financial risk management.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
LTI METALTECH LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Going concern
The company derives the vast majority of its turnover from one customer. Both companies remain dependent upon one another in the short to medium term and the directors are therefore confident that the companies will continue to trade with each other, at similar levels of activity, for the foreseeable future. This is demonstrated by a contractual supply agreement entered into by the parties involved. It is expected that the current agreement will be renewed in the summer of 2025.
At 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.
On behalf of the board
E Rayner
Director
16 May 2025
LTI METALTECH LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LTI METALTECH LIMITED
- 5 -
Opinion
We have audited the financial statements of LTI Metaltech Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The 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 company's affairs as at 31 December 2024 and of its 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.
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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the 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 strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
LTI METALTECH LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LTI METALTECH LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or
the 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.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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 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 company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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 auditor's 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 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
LTI METALTECH LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LTI METALTECH LIMITED
- 7 -
At the planning stage of the audit we gain an understanding of the laws and regulations which apply to the company and how the management seek to comply with those laws and regulations. This helps us to plan appropriate risk assessments.
During the audit we focus on relevant risk areas and review the compliance with the laws and regulations by making relevant enquiries and undertaking corroboration, for example by reviewing Board Minutes and other documentation.
We assess the risk of material misstatement in the financial statements including as a result of fraud and undertook procedures including:
Reviewing the controls set in place by management;
Making enquiries of management as to whether they consider fraud or other irregularity may have taken place, or where such opportunity might exist;
Challenging management assumptions with regard to accounting estimates, such as dilapidations;
Identifying and testing journal entries, particularly those which appear to be unusual by size or nature; and
Reviewing the health and safety measures in place and obtaining the reports of the health and safety inspections to ensure adherence.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 2006. Our 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 auditor's 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.
Stephen Howard Neal (Senior Statutory Auditor)
For and on behalf of Shaw Gibbs (Audit) Limited
16 May 2025
Chartered Certified Accountants
Statutory Auditor
264 Banbury Road
Oxford
OX2 7DY
LTI METALTECH LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
28,589,781
30,972,723
Cost of sales
(23,742,320)
(25,675,923)
Gross profit
4,847,461
5,296,800
Administrative expenses
(4,217,514)
(4,371,797)
Operating profit
4
629,947
925,003
Interest receivable and similar income
7
152,282
140,407
Interest payable and similar expenses
8
(10,770)
(4,101)
Intercompany loan write off
(2,000,000)
Profit/(loss) before taxation
771,459
(938,691)
Tax on profit/(loss)
9
60,441
(222,280)
Profit/(loss) for the financial year
831,900
(1,160,971)
Total comprehensive income/(expense) for the year
831,900
(1,160,971)
The statement of total comprehensive income has been prepared on the basis that all operations are continuing operations.
There are no recognised gains or losses other than those passing through the statement of total comprehensive income.
The notes on pages 12 to 25 form an integral part of these financial statements.
LTI METALTECH LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
741,977
1,045,039
Investments
11
1,829,248
1,880,998
2,571,225
2,926,037
Current assets
Stocks
13
2,335,004
2,467,865
Debtors falling due after more than one year
14
2,641,025
2,294,397
Debtors falling due within one year
14
10,700,067
11,146,214
Cash at bank and in hand
397,866
540,741
16,073,962
16,449,217
Creditors: amounts falling due within one year
15
(4,784,713)
(6,233,081)
Net current assets
11,289,249
10,216,136
Total assets less current liabilities
13,860,474
13,142,173
Provisions for liabilities
Provisions
16
748,735
807,104
Deferred tax liability
17
103,145
158,375
(851,880)
(965,479)
Net assets
13,008,594
12,176,694
Capital and reserves
Called up share capital
19
25,000
25,000
Profit and loss reserves
12,983,594
12,151,694
Total equity
13,008,594
12,176,694
The notes on pages 12 to 25 form an integral part of these financial statements.
The financial statements were approved by the board of directors and authorised for issue on 16 May 2025 and are signed on its behalf by:
E Rayner
Director
Company registration number 05300889 (England and Wales)
LTI METALTECH LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
25,000
13,312,665
13,337,665
Year ended 31 December 2023:
Loss and total comprehensive expense
-
(1,160,971)
(1,160,971)
Balance at 31 December 2023
25,000
12,151,694
12,176,694
Year ended 31 December 2024:
Profit and total comprehensive income
-
831,900
831,900
Balance at 31 December 2024
25,000
12,983,594
13,008,594
The notes on pages 12 to 25 form an integral part of these financial statements.
LTI METALTECH LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
91,805
60,490
Interest paid
(1,226)
(4,101)
Income tax refunds
50,087
-
Income taxes paid
(175,000)
(120,495)
Net cash outflow from operating activities
(34,334)
(64,106)
Investing activities
Purchase of tangible fixed assets
(144,194)
(153,870)
Interest received
35,653
31,150
Net cash used in investing activities
(108,541)
(122,720)
Net decrease in cash and cash equivalents
(142,875)
(186,826)
Cash and cash equivalents at beginning of year
540,741
727,567
Cash and cash equivalents at end of year
397,866
540,741
The notes on pages 12 to 25 form an integral part of these financial statements.
LTI METALTECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information
LTI Metaltech Limited (the "company") is a private company limited by shares and incorporated in England and Wales. The registered office is 163 Brook Drive, Milton Park, Abingdon, Oxfordshire, OX14 4SD.
The company's principal activities and nature of operations are included within the Strategic report.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS102") and the requirements of the Companies Act 2006, including the provisions of the Large and Medium sized Companies and Group (Accounts and
Reports) Regulations 2008.
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 £1.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
In accordance with FRS102 paragraph 33.1A, the exemption has been taken from disclosing transactions and balances with group companies on the basis that every subsidiary that is party to such transactions is wholly owned by Isaak Holding GmbH or LTi Metaltech Limited.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
LTI Metaltech Limited is a wholly owned subsidiary of Isaak Holding GmbH and the results of LTI Metaltech Limited are included in the consolidated financial statements of Isaak Holding GmbH which are available from Rudolf-Diesel- Str.7, 97944, Boxberg/Baden, Germany.
1.2
Going concern
The company derives the vast majority of its turnover from one customer. Both companies remain dependent upon one another in the short to medium term and the directors are therefore confident that the companies will continue to trade with each other, at similar levels of activity, for the foreseeable future. This is demonstrated by a contractual supply agreement entered into by the parties involved. It is expected that the current agreement will be renewed in the summer of 2025.true
At 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.
LTI METALTECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.3
Turnover
The turnover shown in the profit and loss account represents amounts invoiced during the year, exclusive of Value Added Tax. Invoices to the primary customer are raised weekly to recognise the goods appropriated by the customer.
Other income
Interest income is recognised using the effective interest rate method.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
3 to 7 years straight line
Plant and machinery
3 to 7 years straight line
Fixtures, fittings & equipment
3 to 5 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 recognised in the statement of total comprehensive income.
1.5
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its fixed asset investments and tangible fixed 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.7
Stocks
Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell after making due allowance for obsolete and slow moving items. Work in progress is valued on the basis of direct costs plus attributable overheads based on the level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation.
LTI METALTECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.8
Cash and cash equivalents
Cash and cash equivalents include cash in hand and deposits held at call with banks.
1.9
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either 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.
Basic financial assets
Basic financial assets, which include trade and other debtors, amounts owed from group undertakings, 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.
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 trade and other creditors, and amounts owed to group undertakings, 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.
LTI METALTECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
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.
Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the company's accounts. Deferred tax is provided in full on material timing differences which result in an obligation to pay more (or less) tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws.
1.12
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.13
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.
1.14
Retirement benefits
The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account. Differences between contributions payable during the year and contributions actually paid are held within accruals or other creditors.
LTI METALTECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.15
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.
1.16
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.
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.
The directors consider there to be no critical judgements that are material to the company.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:
Stock valuation and obsolescence
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete stock and slow moving items. Work in progress is valued on the basis of direct costs plus attributable overheads, based on the level of activity. Provision is made for any foreseeable losses, where appropriate. No element of profit is included in the valuation. At the reporting date, the directors have included a provision of £13,686 (2023: £354,498).
The calculation of the above provisions requires judgements to be made, which include a number of variables, such as, the forecast customer demand, the economic environment, the ageing of stock and the discontinuation of certain product lines by the company's key customer. These variables are monitored by the directors and a provision is in place to mitigate the relevant risks.
Standard cost is also considered a significant estimate. The directors monitor and review the cost annually and update accordingly.
Useful economic lives of tangible fixed assets
The useful economic lives of non-current assets have been derived from the judgement of the directors, using their best estimate of the write-down period. At the reporting date, the company holds tangible fixed assets with a net book value of £741,977 (2023: £1,045,039).
LTI METALTECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 17 -
Dilapidations provision
The dilapidations provision with respect to the premises rented by the company is based on a professional dilapidations assessment that was carried out in 2024 by a firm of Chartered Surveyors. The adequacy of the dilapidations provision and the necessity for an additional professional assessment is monitored by the directors on an annual basis. Adjustments are made as and when necessary to ensure the adequacy of the relevant provision. At the reporting date, the directors have included a provision of £748,735 (2023: £807,104) in respect to dilapidations.
Material provision
The company enters into supplier contracts to purchase materials over certain periods of time in order to fulfil the demand from its principal customer. From time to time the principal customer may discontinue certain product lines and as a result, the company may be in a position where it is contracted to purchase additional materials with respect to discontinued product lines. The directors monitor continuously the demand from its principal customer and they also enter into proactive negotiations to ensure that the discontinuance of certain product lines is managed proactively and does not result in the company being committed to purchase excess stock that cannot be used in other product lines. Despite that and the fact that there is an understanding that the principal supplier will meet such commitments in case of sudden product discontinuations, from time to time a materials provision may be necessary. The provision is estimated by the directors to be the cost of the stock that the company is committed to purchase with respect to discontinued product lines and cannot be used in the manufacturing of others and will not be met by its principal supplier.
Contingent consideration
The cost of investment regarding the acquisition of Vessco Engineering Limited includes £150,000 with respect to the contingent consideration that will become due if Vessco Engineering Limited achieve profits agreed in the share purchase agreement in the 36 months following the acquisition date. On 16 June 2024, 36 months following the acquisition, the directors of LTi were of the opinion that the relevant performance objectives had been met and therefore the contingent consideration became payable. A corresponding amount of £56,447 has been recognised within other creditors (2023: £150,000) in relation to this consideration.
In their assessment, the directors have taken into consideration the post acquisition performance of Vessco Engineering Limited as well as the forecasted figures for the contingent consideration period which incorporate all available information to the date of their assessment.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Income from manufacturing fabricated metal products
28,589,781
30,972,723
2024
2023
£
£
Other significant revenue
Interest income
152,282
140,407
LTI METALTECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Turnover and other revenue
(Continued)
- 18 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
28,589,567
30,606,249
Rest of the world
214
366,474
28,589,781
30,972,723
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
35,479
12,931
Fees payable to the company's auditor for the audit of the company's financial statements
30,500
24,000
Depreciation of owned tangible fixed assets
447,256
481,839
Operating lease charges
603,982
570,194
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Number of direct production staff
70
70
Number of administrative staff
21
21
Number of indirect productive staff
24
25
Total
115
116
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
5,310,848
5,355,773
Social security costs
523,007
533,348
Pension costs
266,701
255,199
6,100,556
6,144,320
LTI METALTECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
634,908
718,979
Company pension contributions to defined contribution schemes
45,571
42,258
680,479
761,237
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023: 2).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
309,021
374,740
Company pension contributions to defined contribution schemes
3,300
13,648
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
35,653
30,883
Interest receivable from group companies
116,629
109,257
Other interest income
267
Total income
152,282
140,407
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
1,226
4,101
Other interest
9,544
10,770
4,101
LTI METALTECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
109,595
302,800
Adjustments in respect of prior periods
(114,806)
(24,895)
Total current tax
(5,211)
277,905
Deferred tax
Origination and reversal of timing differences
(55,230)
(55,625)
Total tax (credit)/charge
(60,441)
222,280
The actual (credit)/charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit/(loss) before taxation
771,459
(938,691)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
192,865
(220,592)
Tax effect of expenses that are not deductible in determining taxable profit
2,164
483,447
Adjustments in respect of prior years
(114,806)
(24,895)
Effect of change in corporation tax rate
(19,811)
Group relief
(144,697)
Deferred tax movement
(53,214)
(51,160)
Depreciation in excess of capital allowances
57,247
55,291
Taxation (credit)/charge for the year
(60,441)
222,280
LTI METALTECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
10
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 1 January 2024
238,607
5,495,118
1,048,653
6,782,378
Additions
129,967
14,227
144,194
At 31 December 2024
238,607
5,625,085
1,062,880
6,926,572
Depreciation and impairment
At 1 January 2024
203,362
4,625,325
908,652
5,737,339
Depreciation charged in the year
27,790
313,754
105,712
447,256
At 31 December 2024
231,152
4,939,079
1,014,364
6,184,595
Carrying amount
At 31 December 2024
7,455
686,006
48,516
741,977
At 31 December 2023
35,245
869,793
140,001
1,045,039
Depreciation of plant and machinery is included within cost of sales in the Statement of comprehensive income. The remainder of depreciation is included within administrative expenses.
11
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
12
1,829,248
1,880,998
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024
1,880,998
Adjustment to investment value
(51,750)
At 31 December 2024
1,829,248
Carrying amount
At 31 December 2024
1,829,248
At 31 December 2023
1,880,998
LTI METALTECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
12
Subsidiaries
Details of the company's subsidiary at 31 December 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Vessco Engineering Limited
163 Brook Drive, Milton Park, Abingdon, Oxfordshire, OX14 4SD
Ordinary
100.00
13
Stocks
2024
2023
£
£
Raw materials and consumables
1,496,444
1,568,510
Work in progress
361,422
407,440
Finished goods and goods for resale
477,138
491,915
2,335,004
2,467,865
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
8,215,403
8,863,619
Amounts due from fellow group undertakings
578,118
1,459,902
Other debtors
1,186,295
353,823
Prepayments and accrued income
720,251
468,870
10,700,067
11,146,214
Amounts falling due after one year:
Amounts due from fellow group undertakings
2,641,025
2,294,397
Total debtors
13,341,092
13,440,611
Amounts due from fellow group undertakings are unsecured, do not bear interest and are repayable in full on 31 January 2026. Amounts due from subsidiary undertakings are also unsecured, do not bear interest and are repayable on demand.
LTI METALTECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
3,214,305
4,391,323
Amounts owed to group undertakings
425,772
335,022
Corporation tax
132,220
252,756
Other taxation and social security
680,673
781,252
Other creditors
105,910
227,082
Accruals and deferred income
225,833
245,646
4,784,713
6,233,081
16
Provisions for liabilities
2024
2023
Note
£
£
Provisions
748,735
807,104
Deferred tax liabilities
17
103,145
158,375
The balance of provisions relate to property dilapidations of £748,735 (2023: £807,104) based on the cost estimated by an independent surveyor.
17
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
101,129
158,375
Other timing differences
2,016
-
103,145
158,375
2024
Movements in the year:
£
Liability at 1 January 2024
158,375
Decelerated capital allowances
(57,246)
Other timing differences
2,016
Liability at 31 December 2024
103,145
LTI METALTECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
266,701
255,199
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
At the year end date amounts payable to the pension scheme totalled £51,022 (2023: £42,958).
19
Share capital
2024
2023
£
£
Ordinary share capital
Allotted, called up and fully paid
25,000 Ordinary A shares of £1 each
25,000
25,000
The company's ordinary A shares, which are non redeemable and carry no right to fixed income, each carry the right to one vote at general meetings of the company and rank equally for any dividends declared.
20
Cash generated from operations
2024
2023
£
£
Profit/(loss) for the year after tax
831,900
(1,160,971)
Adjustments for:
Taxation (credited)/charged
(60,441)
222,280
Finance costs
10,770
4,101
Investment income
(152,282)
(140,407)
Depreciation and impairment of tangible fixed assets
447,256
481,839
Decrease in provisions
(58,369)
(49,863)
Movements in working capital:
Decrease/(increase) in stocks
132,861
(338,036)
Decrease in debtors
216,192
1,518,671
Decrease in creditors
(1,276,082)
(477,124)
Cash generated from operations
91,805
60,490
21
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
540,741
(142,875)
397,866
LTI METALTECH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
583,960
571,122
Between two and five years
1,943,067
420,553
In over five years
316,723
2,843,750
991,675
23
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
607,351
-
During the year ended 31 December 2021, the company entered into a supplier agreement to purchase stainless steel starting in March 2022 and ending in FY24/25 for a total price of c£1.1m. The relevant stock will be delivered directly to the company’s premises.
During the year ended 31 December 2024, the company entered into a further supplier agreement to purchase stainless steel, approx 1,523 tonnes starting in October 2024 and expected to finish in September 2025 at a total cost of c£6.23m. The relevant stock was and will be delivered directly to the company’s premises.
During the year ended 31 December 2024, the company also entered into a supplier agreement to purchase aluminium, approx 350 tonnes starting in October 2024 and expected to finish in September 2025 at a total cost of c£1.44m. The relevant stock was and will be delivered directly to the company’s premises.
24
Related party transactions and controlling party
LTi Metaltech Limited is a wholly owned subsidiary of Isaak Holding GmbH, a company based in Rudolf - Diesel- Str.7, 97944, Boxberg/ Baden, Germany. Isaak Holding GmbH is the smallest and largest group to include the results of the company. The ultimate controlling parties are K Isaak and his family.
In accordance with FRS102 paragraph 33.1A, the exemption has been taken from disclosing transactions and balances with group companies on the basis that every subsidiary that is party to such transactions is wholly owned by Isaak Holding GmbH.
There were no other related party transactions and balances that require disclosure.
No guarantees have been given or received.
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