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REGISTERED NUMBER: NI041894 (Northern Ireland)















MCKENNA PRECISION ENGINEERING LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2024






MCKENNA PRECISION ENGINEERING LIMITED (REGISTERED NUMBER: NI041894)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024




Page

Company Information 1

Strategic Report 2

Report of the Director 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 16


MCKENNA PRECISION ENGINEERING LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 OCTOBER 2024







DIRECTOR: Mr C McKenna



REGISTERED OFFICE: 29 Garvallagh Road
Seskinore
OMAGH
Co. Tyrone
BT78 2QW



REGISTERED NUMBER: NI041894 (Northern Ireland)



AUDITORS: McAleer Jackson Ltd
Chartered Accountants & Statutory Auditors
Church House
24 Dublin Road
OMAGH
Co. Tyrone
BT78 1HE



BANKERS: Bank of Ireland
25 Campsie Road
OMAGH
Co. Tyrone
BT79 0AE



SOLICITORS: Thomas T Monatgue Solicitors
50-52 Main Street
IRVINESTOWN
Co. Fermanagh
BT94 1GL

MCKENNA PRECISION ENGINEERING LIMITED (REGISTERED NUMBER: NI041894)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024

The director presents his strategic report for the year ended 31 October 2024.

REVIEW OF BUSINESS
The results for the year and the financial position at the year end are as set out in the annexed financial statements.

The turnover reported in the financial statements of £9.9m represents a decrease in turnover to pre 2021 levels, primarily due to shifts in market demand.

At 31 October 2024, the company's net assets were in excess of £3.1m. The company continues to maintain strong operating cash flow and the directors are satisfied that it remains resilient in the current economic climate.

PRINCIPAL RISKS AND UNCERTAINTIES
The director has identified the following areas of risk and uncertainty:

Supply chain and logistics:
The director is satisfied that the arrangements the company has in place with key suppliers are adequate to mitigate the risk of interrupted supply.

Environmental risk:
The director recognises the potential environmental risks arising from the company's operations and invests resources to ensure the company maintains all necessary environmental standards and manages the risk effectively.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The company's activities expose it to a number of financial risks including commodity price risk, liquidity risk, credit risk and currency risk.

Commodity price risk:
The company uses materials which are exposed to commodity price risk. The director takes measures to protect against short term fluctuations in price, including measures to pass any fluctuations on to customers.

Credit risk:
The company's principal credit risk is in respect of customer credit arrangements which are managed through strict credit control arrangements and procedures.

Liquidity risk:
The company finances its working capital and investments with its own cash reserves and retains adequate balances to mitigate short and medium term liquidity risk.

Currency risk:
The company actively trades in both sterling and euro. Where possible euro cash inflows and outflows are matched. The director takes an active role in managing the currency exposure remains within acceptable levels.

The director reviews and agrees policies for managing each of the above risks.


MCKENNA PRECISION ENGINEERING LIMITED (REGISTERED NUMBER: NI041894)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024

KEY PERFORMANCE INDICATORS (KPIS)
Given the nature of the business, the company director monitors the success of the business on the basis of turnover levels and on operating profit margins.

Turnover has decreased by 42% back to pre 2021 levels and operating profit has decreased by 67% due to shifts in market demand.

ON BEHALF OF THE BOARD:





Mr C McKenna - Director


8 May 2025

MCKENNA PRECISION ENGINEERING LIMITED (REGISTERED NUMBER: NI041894)

REPORT OF THE DIRECTOR
FOR THE YEAR ENDED 31 OCTOBER 2024

The director presents his report with the financial statements of the company for the year ended 31 October 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of precision engineering.

DIVIDENDS
The total distribution of dividends for the year ended 31 October 2024 will be £ 3,000,000 .

FUTURE DEVELOPMENTS
The company continues to offer cutting edge machining and expert fabrication services to create precision engineered components tailor made to meet their clients' needs. With this approach the company plans to consolidate its market share in future years.

POST BALANCE SHEET EVENTS
There have been no significant events affecting the Company since the year end.

DIRECTOR
Mr C McKenna held office during the whole of the period from 1 November 2023 to the date of this report.

POLITICAL DONATIONS AND EXPENDITURE
The company made charitable donations amounting to £3,000 during the year. No donations for political purposes were made during the year.

DIRECTOR'S RESPONSIBILITIES STATEMENT
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

MCKENNA PRECISION ENGINEERING LIMITED (REGISTERED NUMBER: NI041894)

REPORT OF THE DIRECTOR
FOR THE YEAR ENDED 31 OCTOBER 2024


AUDITORS
The auditors, McAleer Jackson Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr C McKenna - Director


8 May 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MCKENNA PRECISION ENGINEERING LIMITED

Opinion
We have audited the financial statements of McKenna Precision Engineering Limited (the 'company') for the year ended 31 October 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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 October 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.

Basis for opinion
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 Auditors' 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MCKENNA PRECISION ENGINEERING LIMITED


Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

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 Report of the Director.

We have nothing to report in respect of the following matters where 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 director's remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of director
As explained more fully in the Director's Responsibilities Statement set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MCKENNA PRECISION ENGINEERING LIMITED


Auditors' 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 a Report of the Auditors 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.

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.

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:

We obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, pensions and tax legislation, together with provisions of other laws and regulations that do not have a direct effect on the financial statements, but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

We tailored our response to those identified risks to include enquiring of management and external legal advisors concerning actual and potential litigation and claims, performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud, and reviewing correspondence with HMRC and other regulatory bodies.

In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias, and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business. We apply professional scepticism throughout the audit to consider deliberate omission or concealment of significant transactions, or incomplete/inaccurate disclosures in the financial statements.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
- the nature of the industry and sector, control environment and business performance including the company's remuneration policies, and performance targets;
- results of our enquiries of management and other key persons about the company's own policies for the identification and assessment of the risks of irregularities, including those that may occur either as a result of fraud or error, and matters we identified from our review of the company's policies, procedures and internal controls; and
- the matters discussed among the audit engagement team regarding potential indicators of fraud and where it might occur in the financial statements;
- design of audit procedures responsive to those risks that incorporate unpredictability around the nature, timing and extent of our testing.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MCKENNA PRECISION ENGINEERING LIMITED


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.




ARNOLD JACKSON (Senior Statutory Auditor)
for and on behalf of McAleer Jackson Ltd
Chartered Accountants & Statutory Auditors
Church House
24 Dublin Road
OMAGH
Co. Tyrone
BT78 1HE

8 May 2025

MCKENNA PRECISION ENGINEERING LIMITED (REGISTERED NUMBER: NI041894)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024

2024 2023
Notes £    £   

TURNOVER 9,909,292 17,229,345

Cost of sales 4,664,866 8,319,402
GROSS PROFIT 5,244,426 8,909,943

Administrative expenses 3,650,433 4,129,323
OPERATING PROFIT 4 1,593,993 4,780,620

Interest receivable and similar income 52,443 21,336
1,646,436 4,801,956
Gain/loss on revaluation of assets 5,607 (5,334 )
PROFIT BEFORE TAXATION 1,652,043 4,796,622

Tax on profit 5 413,311 1,015,975
PROFIT FOR THE FINANCIAL
YEAR

1,238,732

3,780,647

MCKENNA PRECISION ENGINEERING LIMITED (REGISTERED NUMBER: NI041894)

BALANCE SHEET
31 OCTOBER 2024

2024 2023
Notes £    £    £   
FIXED ASSETS
Tangible assets 7 570,804 601,032
Investments 8 - 425,911
570,804 1,026,943

CURRENT ASSETS
Stocks 9 962,333 1,342,697
Debtors 10 1,763,148 3,568,703
Cash at bank 1,018,339 1,390,883
3,743,820 6,302,283
CREDITORS
Amounts falling due within one year 11 992,717 2,225,911
NET CURRENT ASSETS 2,751,103 4,076,372
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,321,907

5,103,315

PROVISIONS FOR LIABILITIES 13 179,711 199,851
NET ASSETS 3,142,196 4,903,464

CAPITAL AND RESERVES
Called up share capital 14 2 2
Capital redemption reserve 15 2 2
Retained earnings 15 3,142,192 4,903,460
SHAREHOLDERS' FUNDS 3,142,196 4,903,464

The financial statements were approved by the director and authorised for issue on 8 May 2025 and were signed by:





Mr C McKenna - Director


MCKENNA PRECISION ENGINEERING LIMITED (REGISTERED NUMBER: NI041894)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 November 2022 2 6,622,813 2 6,622,817

Changes in equity
Dividends - (5,500,000 ) - (5,500,000 )
Total comprehensive income - 3,780,647 - 3,780,647
Balance at 31 October 2023 2 4,903,460 2 4,903,464

Changes in equity
Dividends - (3,000,000 ) - (3,000,000 )
Total comprehensive income - 1,238,732 - 1,238,732
Balance at 31 October 2024 2 3,142,192 2 3,142,196

MCKENNA PRECISION ENGINEERING LIMITED (REGISTERED NUMBER: NI041894)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 3,456,607 4,408,538
Tax paid (1,167,173 ) (594,741 )
Net cash from operating activities 2,289,434 3,813,797

Cash flows from investing activities
Purchase of tangible fixed assets (188,837 ) (468,231 )
Sale of tangible fixed assets 39,760 7,999
Sale of fixed asset investments 431,518 1,192,850
Interest received 52,443 21,336
Net cash from investing activities 334,884 753,954

Cash flows from financing activities
Equity dividends paid (3,000,000 ) (5,500,000 )
Net cash from financing activities (3,000,000 ) (5,500,000 )

Decrease in cash and cash equivalents (375,682 ) (932,249 )
Cash and cash equivalents at
beginning of year

2

1,387,615

2,319,864

Cash and cash equivalents at end of
year

2

1,011,933

1,387,615

MCKENNA PRECISION ENGINEERING LIMITED (REGISTERED NUMBER: NI041894)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

2024 2023
£    £   
Profit before taxation 1,652,043 4,796,622
Depreciation charges 190,266 200,342
(Profit)/loss on disposal of fixed assets (10,961 ) 1,563
(Gain)/loss on revaluation of fixed assets (5,607 ) 5,334
Finance income (52,443 ) (21,336 )
1,773,298 4,982,525
Decrease in stocks 380,364 146,208
Decrease/(increase) in trade and other debtors 1,805,555 (431,133 )
Decrease in trade and other creditors (502,610 ) (289,062 )
Cash generated from operations 3,456,607 4,408,538

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 October 2024
31.10.24 1.11.23
£    £   
Cash and cash equivalents 1,018,339 1,390,883
Bank overdrafts (6,406 ) (3,268 )
1,011,933 1,387,615
Year ended 31 October 2023
31.10.23 1.11.22
£    £   
Cash and cash equivalents 1,390,883 2,322,876
Bank overdrafts (3,268 ) (3,012 )
1,387,615 2,319,864


MCKENNA PRECISION ENGINEERING LIMITED (REGISTERED NUMBER: NI041894)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024

3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.11.23 Cash flow At 31.10.24
£    £    £   
Net cash
Cash at bank 1,390,883 (372,544 ) 1,018,339
Bank overdrafts (3,268 ) (3,138 ) (6,406 )
1,387,615 (375,682 ) 1,011,933
Total 1,387,615 (375,682 ) 1,011,933

MCKENNA PRECISION ENGINEERING LIMITED (REGISTERED NUMBER: NI041894)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

1. STATUTORY INFORMATION

McKenna Precision Engineering Limited is a private company, limited by shares , registered in Northern Ireland. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The financial statements are prepared in sterling which is the functional currency of the company.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Tangible fixed assets are stated at cost or valuation, net of depreciation and any provisions for impairment.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant & machinery - 25% on reducing balance

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


MCKENNA PRECISION ENGINEERING LIMITED (REGISTERED NUMBER: NI041894)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2024

2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

MCKENNA PRECISION ENGINEERING LIMITED (REGISTERED NUMBER: NI041894)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2024

2. ACCOUNTING POLICIES - continued

Provisions
Provisions (i.e liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.

Impairment
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit and loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Going concern
At the time of approving the financial statements, the director had reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

Financial instruments
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.


MCKENNA PRECISION ENGINEERING LIMITED (REGISTERED NUMBER: NI041894)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2024

2. ACCOUNTING POLICIES - continued
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.

Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable.

Investments
Investments are measured at fair value. Changes in fair value are recognised in profit or loss.

Debtors and creditors receivable/payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transactional price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

3. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 1,123,261 1,287,877
Other pension costs 146,966 148,030
1,270,227 1,435,907

The average number of employees during the year was as follows:
2024 2023

Management 5 3
Administration 3 7
Production 28 34
36 44

20242023


£


£
Director's remuneration12,57012,570
Director's pension60,00060,000
72,57072,570


MCKENNA PRECISION ENGINEERING LIMITED (REGISTERED NUMBER: NI041894)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2024

4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
£    £   
Other operating leases 236,775 254,732
Depreciation - owned assets 190,266 200,342
(Profit)/loss on disposal of fixed assets (10,961 ) 1,563
Auditors' remuneration 8,300 7,700

5. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 433,451 951,361

Deferred tax (20,140 ) 64,614
Tax on profit 413,311 1,015,975

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 1,652,043 4,796,622
Profit multiplied by the standard rate of corporation tax in the UK
of 25% (2023 - 22.518%)

413,011

1,080,103

Effects of:
Expenses not deductible for tax purposes 300 270
Deferred tax at future rate - 6,416
Enhanced capital allowances - (2,371 )
allowances
Other adjustments - (9 )
Life assurance company tax credit - (43,956 )
Research and development refund - (24,478 )
Total tax charge 413,311 1,015,975

MCKENNA PRECISION ENGINEERING LIMITED (REGISTERED NUMBER: NI041894)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2024

6. DIVIDENDS
2024 2023
£    £   
Ordinary shares of £1 each
Interim 3,000,000 5,500,000

7. TANGIBLE FIXED ASSETS
Plant &
machinery
£   
COST
At 1 November 2023 1,802,692
Additions 188,837
Disposals (79,205 )
At 31 October 2024 1,912,324
DEPRECIATION
At 1 November 2023 1,201,660
Charge for year 190,266
Eliminated on disposal (50,406 )
At 31 October 2024 1,341,520
NET BOOK VALUE
At 31 October 2024 570,804
At 31 October 2023 601,032

8. FIXED ASSET INVESTMENTS

2024 2023
£ £

Financial assets designated at fair value through profit or loss - 425,911
- 425,911

During the year, the company disposed of its fixed asset investments which were stated at fair value. Fair value is assessed by reference to quoted exit values provided by the relevant counterparty. A gain of £5,607 (2023 Loss - £5,334) was recognised.

9. STOCKS
2024 2023
£    £   
Stocks 962,333 1,342,697

MCKENNA PRECISION ENGINEERING LIMITED (REGISTERED NUMBER: NI041894)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2024

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 1,717,556 3,501,962
Other debtors 3,999 27,810
Prepayments 41,593 38,931
1,763,148 3,568,703

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 12) 6,406 3,268
Trade creditors 890,985 1,122,761
Corporation tax 39,617 773,339
Social security and other taxes 29,233 249,218
Other creditors 24,598 77,325
Director's current account 1,878 -
992,717 2,225,911

12. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 6,406 3,268

The bank facility relates to a credit card with capital being repaid in full monthly and as a result no interest charges arise.

13. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 129,711 149,851
Other provisions 50,000 50,000
179,711 199,851

MCKENNA PRECISION ENGINEERING LIMITED (REGISTERED NUMBER: NI041894)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2024

13. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 November 2023 149,851
Movement during year (20,140 )
Balance at 31 October 2024 129,711

14. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
2 Ordinary £1 2 2

15. RESERVES
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 November 2023 4,903,460 2 4,903,462
Profit for the year 1,238,732 1,238,732
Dividends (3,000,000 ) (3,000,000 )
At 31 October 2024 3,142,192 2 3,142,194

16. CONTINGENT LIABILITIES

The director confirms that the company has no contingent liabilities at the year end (2023 - £Nil).

17. CAPITAL COMMITMENTS

At 31 October 2024 the company had no capital commitments (2023 - £Nil).

MCKENNA PRECISION ENGINEERING LIMITED (REGISTERED NUMBER: NI041894)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2024

18. RELATED PARTY DISCLOSURES

At the year end, the company owed a member of key management personnel £1,878 (2023 - NIL) in respect of the balance on a director's current account.

The balance is repayable on demand and interest is not currently being charged.

The balance is presented within creditors: amounts falling due within one year.

The company has taken advantage of the exemptions contained in Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' Section 33 Related Party Disclosures paragraph 33.11 and has not disclosed details of transactions with its parent or fellow subsidiary entities on the grounds that it is a 100% wholly owned subsidiary at the year end and the group financial statements of KSB Group Holdings Ltd, within which McKenna Precision Engineering Limited is included are publicly available.

Entities over which the entity has control, joint control or significant influence

PPH Plant Leasing Limited

Mr Conor McKenna is the sole director and Mr Conor McKenna & Mrs Nora McKenna are sole shareholders of PPH Plant Leasing Limited.

The following trading transactions occurred with PPH Plant Leasing Limited during the year.

2024 2023
£ £
Purchases from PPH Plant Leasing Limited 1,395,800 1,429,392

Purchase of tangible fixed assets from PPH Plant Leasing
Limited

74,000


-

As at 31 October 2024, McKenna Precision Engineering Limited owed £NIL to the related party (2023 - NIL).

19. POST BALANCE SHEET EVENTS

There have been no significant events affecting the Company since the year end.

MCKENNA PRECISION ENGINEERING LIMITED (REGISTERED NUMBER: NI041894)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2024

20. ULTIMATE PARENT UNDERTAKING AND CONTROLLING PARTY

The immediate and ultimate parent company is KSB Group Holdings Ltd, a company incorporated in Northern Ireland, which owns 100% of the issued share capital of McKenna Precision Engineering Ltd.

The smallest and largest group of undertakings for which group financial statements are drawn up and for which the company is a member is KSB Group Holdings Ltd. Copies of group financial statements are available from Companies House.

The ultimate controlling parties are Conor McKenna and Nora McKenna by virtue of their controlling interest in KSB Group Holdings Ltd.