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REGISTERED NUMBER: 03904224 (England and Wales)










STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

PRECONOMY LIMITED

PRECONOMY LIMITED (REGISTERED NUMBER: 03904224)






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




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Statement of Income and Retained Earnings 6

Statement of Financial Position 7

Statement of Cash Flows 8

Notes to the Statement of Cash Flows 9

Notes to the Financial Statements 10


PRECONOMY LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2024







DIRECTORS: N Giles
R M Molloy
R Hammacott





REGISTERED OFFICE: Unit 1B Long Stoop Way
Forest Town
Mansfield
Nottinghamshire
NG19 0FQ





REGISTERED NUMBER: 03904224 (England and Wales)





AUDITORS: Ashtree Audit Ltd
Statutory Auditors
H5 Ash Tree Court
Nottingham Business Park
Nottingham
Nottinghamshire
NG8 6PY

PRECONOMY LIMITED (REGISTERED NUMBER: 03904224)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors present their strategic report for the year ended 31 December 2024.

REVIEW OF BUSINESS
The company has achieved a turnover for the year of £13,047,138 (2023: £14,268,091) which is a year-on-year decrease of 10.0%.

This resulted in a profit before tax of £1,096,972 (2023: £1,699,051).

The decrease in turnover is mainly attributable to lower than expected sales to the plastic injection moulding market and the import tooling activities of the company.

The outlook for the future remains positive and trading activities are expected to increase slightly over the next year, with a focus on maintaining the current level of performance and profitability.

The company's financial position is strong with retained earnings now at £5,817,894 and cash reserves of £693,520.

The company has continued to invest in personnel and CRM systems to deliver excellent customer service.

PRINCIPAL RISKS AND UNCERTAINTIES
Risk is present in all parts of the business, but the directors review risk on a regular basis through our existing governance structure. The directors ultimately control these risks but believe the following are the major risks and uncertainties currently faced by the company:

Recruitment and retention
Attracting and retaining good staff is critical to delivering on growth and profitability. The company mitigates this risk by offering attractive remuneration and reward packages to employees that achieve success and contribute to the company's performance and profitability

Revenue risk
As economic recovery continues in our sector and markets, the company is well placed due to the focused approach already taken to increase efficiencies across the business, whilst investing in and developing opportunities to diversify into new products and markets.

Competitor risk
There is always competitor risk, but the overall competitive advantage of the business is that of highly experienced and trained staff with extensive customer relations and a proven sales model.

Financial risk
The company is exposed to a variety of financial risks and undertakes regular reviews to identify such risks and wherever possible introduce necessary steps and processes to mitigate and minimise such risks.

Liquidity risk
This arises from management of working capital and servicing finance charges on debt instruments. The current healthy cash balance mitigates this risk.

KEY FINANCIAL INDICATORS
Key financial indicators include:
2024 2023

Sales £13,047,138 £14,268,091
Gross Profit % 24.5% 26.7%
Net Profit % 8.4% 11.9%
Cash reserves £693,520 £287,931
Shareholders' funds £6,505,385 £5,921,116


ON BEHALF OF THE BOARD:





R M Molloy - Director


10 June 2025

PRECONOMY LIMITED (REGISTERED NUMBER: 03904224)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

DIVIDENDS
An interim dividend of 0.81p per share was paid on 10 April 2024. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2024 will be £280,000.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

N Giles
R M Molloy
R Hammacott

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
Details of financial instruments and risk management policies can be found in the Strategic Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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;
-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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are 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 each director 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.

ON BEHALF OF THE BOARD:





R M Molloy - Director


10 June 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PRECONOMY LIMITED (REGISTERED NUMBER: 03904224)

Opinion
We have audited the financial statements of Preconomy Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 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.

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 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.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, 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.

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 Directors 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 Directors 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 Directors.

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 directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PRECONOMY LIMITED (REGISTERED NUMBER: 03904224)


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Following a detailed risk assessment at the planning stage, which was updated for any further risks of fraud and error identified during the fieldwork, the following areas of risk were identified:

- Revenue recognition.
- Work in progress valuation and associated provisions
- Management override of controls.

In response to the specific risk areas identified, our procedures included the following:

- In addressing revenue recognition we performed detailed and substantive testing of sales transactions on a sample basis throughout the year.
- In addressing the valuation of work in progress and associated provisions we performed detailed testing and cut off work on a sample basis of the work in progress valuation and associated provisions.
- In addressing management override of controls, we performed detailed testing of controls on a sample basis throughout the year.

We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. Furthermore, there are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

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.




Paul Emmerson BSc ACA (Senior Statutory Auditor)
for and on behalf of Ashtree Audit Ltd
Statutory Auditors
H5 Ash Tree Court
Nottingham Business Park
Nottingham
Nottinghamshire
NG8 6PY

10 June 2025

PRECONOMY LIMITED (REGISTERED NUMBER: 03904224)

STATEMENT OF INCOME AND
RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024

31/12/24 31/12/23
Notes £    £   

TURNOVER 3 13,047,138 14,268,091

Cost of sales 9,850,586 10,462,240
GROSS PROFIT 3,196,552 3,805,851

Administrative expenses 2,026,451 2,061,478
OPERATING PROFIT 5 1,170,101 1,744,373

Interest receivable and similar income 9,673 28,995
1,179,774 1,773,368

Interest payable and similar expenses 6 82,802 74,317
PROFIT BEFORE TAXATION 1,096,972 1,699,051

Tax on profit 7 232,703 213,782
PROFIT FOR THE FINANCIAL YEAR 864,269 1,485,269

Retained earnings at beginning of year 5,233,625 4,028,356

Dividends 8 (280,000 ) (280,000 )

RETAINED EARNINGS AT END OF YEAR 5,817,894 5,233,625

PRECONOMY LIMITED (REGISTERED NUMBER: 03904224)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2024

31/12/24 31/12/23
Notes £    £    £   
FIXED ASSETS
Tangible assets 9 1,802,269 1,337,952

CURRENT ASSETS
Stocks 10 1,408,985 1,525,234
Debtors 11 5,847,935 5,367,826
Cash at bank and in hand 693,520 287,931
7,950,440 7,180,991
CREDITORS
Amounts falling due within one year 12 2,764,493 2,263,943
NET CURRENT ASSETS 5,185,947 4,917,048
TOTAL ASSETS LESS CURRENT
LIABILITIES

6,988,216

6,255,000

CREDITORS
Amounts falling due after more than one year 13 (123,884 ) (125,561 )

PROVISIONS FOR LIABILITIES 16 (358,947 ) (208,323 )
NET ASSETS 6,505,385 5,921,116

CAPITAL AND RESERVES
Called up share capital 17 343,746 343,746
Capital redemption reserve 343,745 343,745
Retained earnings 5,817,894 5,233,625
SHAREHOLDERS' FUNDS 6,505,385 5,921,116

The financial statements were approved by the Board of Directors and authorised for issue on 10 June 2025 and were signed on its behalf by:





R M Molloy - Director


PRECONOMY LIMITED (REGISTERED NUMBER: 03904224)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024

31/12/24 31/12/23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,478,639 858,327
Interest element of hire purchase payments paid (14,124 ) (10,524 )
Finance costs paid (68,678 ) (63,793 )
Tax paid (5,657 ) (57 )
Net cash from operating activities 1,390,180 783,953

Cash flows from investing activities
Purchase of tangible fixed assets (662,407 ) (394,453 )
Sale of tangible fixed assets 3,500 5,000
Interest received 9,673 28,995
Net cash from investing activities (649,234 ) (360,458 )

Cash flows from financing activities
New finance lease advances in year 139,320 105,978
Repayments to invoice finance (16,374 ) (203,345 )
Capital repayments in year (157,097 ) (127,988 )
Amount withdrawn by directors (301,206 ) (428,577 )
Net cash from financing activities (335,357 ) (653,932 )

Increase/(decrease) in cash and cash equivalents 405,589 (230,437 )
Cash and cash equivalents at beginning of year 2 287,931 518,368

Cash and cash equivalents at end of year 2 693,520 287,931

PRECONOMY LIMITED (REGISTERED NUMBER: 03904224)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024

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

31/12/24 31/12/23
£    £   
Profit before taxation 1,096,972 1,699,051
Depreciation charges 191,255 199,549
Loss on disposal of fixed assets 3,335 4,502
Finance costs 82,802 74,317
Finance income (9,673 ) (28,995 )
1,364,691 1,948,424
Decrease in stocks 116,249 500,136
Increase in trade and other debtors (458,903 ) (56,007 )
Increase/(decrease) in trade and other creditors 456,602 (1,534,226 )
Cash generated from operations 1,478,639 858,327

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2024
31/12/24 1/1/24
£    £   
Cash and cash equivalents 693,520 287,931
Year ended 31 December 2023
31/12/23 1/1/23
£    £   
Cash and cash equivalents 287,931 518,368


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/24 Cash flow At 31/12/24
£    £    £   
Net cash
Cash at bank and in hand 287,931 405,589 693,520
287,931 405,589 693,520
Debt
Finance leases (269,639 ) 17,777 (251,862 )
(269,639 ) 17,777 (251,862 )
Total 18,292 423,366 441,658

PRECONOMY LIMITED (REGISTERED NUMBER: 03904224)

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

1. STATUTORY INFORMATION

Preconomy Limited is a private company, limited by shares , registered in England and Wales. 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.

Turnover
Turnover is recognised to the extent that the company obtains the right to consideration in exchange for its performance, which is considered to be when goods are despatched to the customer or by reference to the stage of completion agreed with customers. Turnover is measured at the fair value of the consideration receivable, excluding discounts, rebates, VAT and other sales taxes or duty, provided that the consideration can be measured reliably.

Tangible fixed assets
Depreciation on tangible fixed assets is provided at rates calculated to write off the cost, less estimated residual value, of each asset on a reducing balance basis over its expected useful life as follows:

Plant, machinery, fixtures and fittings- 50%, 25%, 20% and 10% on a reducing balance basis

The company's policy for self-constructed assets is to capitalise all direct costs, including materials, labour, and transportation, along with variable overheads incurred in the construction of the asset. Internal profits arising from the self-construction are eliminated.The asset's carrying amount is calculated using the reducing balance method over a useful life of 10 years. The depreciation expense is recognised in the income statement annually.

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

Work in progress
Work in progress is valued on the basis of cost of direct materials (including any progress payments on account) and labour plus attributable overheads based on a normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position 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.

PRECONOMY LIMITED (REGISTERED NUMBER: 03904224)

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

2. ACCOUNTING POLICIES - continued

Hire purchase agreements
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs
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 in the period to which they relate.

Financial assets
Basic financial assets, including trade and other receivables, cash and bank balances and investments are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party, or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities
Basic financial liabilities, including trade and other payables and loans from connected companies, 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

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

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

3. TURNOVER

The turnover and profit before taxation are attributable to the principal activities of the company.

An analysis of turnover by class of business is given below:

31/12/24 31/12/23
£    £   
Tool making 7,543,833 8,473,177
Plastic Injection Moulding 5,503,305 5,794,914
13,047,138 14,268,091

PRECONOMY LIMITED (REGISTERED NUMBER: 03904224)

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

3. TURNOVER - continued

An analysis of turnover by geographical market is given below:

31/12/24 31/12/23
£    £   
United Kingdom 10,583,495 10,688,892
Europe 2,353,130 3,206,533
Rest of the World 110,513 372,666
13,047,138 14,268,091

4. EMPLOYEES AND DIRECTORS
31/12/24 31/12/23
£    £   
Wages and salaries 2,527,390 2,328,380
Social security costs 256,775 233,125
Other pension costs 87,351 76,918
2,871,516 2,638,423

The average number of employees during the year was as follows:
31/12/24 31/12/23

Production 46 43
Sales and administration 2 2
Management 14 13
62 58

31/12/24 31/12/23
£    £   
Directors' remuneration 253,100 212,150
Directors' pension contributions to money purchase schemes 4,584 3,966

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

Information regarding the highest paid director is as follows:
31/12/24 31/12/23
£    £   
Emoluments etc 122,100 113,000
Pension contributions to money purchase schemes 4,084 -

5. OPERATING PROFIT

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

31/12/24 31/12/23
£    £   
Other operating leases 282,648 282,453
Depreciation - owned assets 95,975 121,939
Depreciation - assets on hire purchase contracts 95,280 77,610
Loss on disposal of fixed assets 3,335 4,502
Auditors' remuneration 13,530 12,500
Foreign exchange differences 12,207 (10,133 )

PRECONOMY LIMITED (REGISTERED NUMBER: 03904224)

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

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31/12/24 31/12/23
£    £   
Hire purchase 14,124 10,524
Factoring charges 68,678 63,793
82,802 74,317

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31/12/24 31/12/23
£    £   
Current tax:
UK corporation tax 81,931 5,509
Tax - Adjustment to prior year 148 (50 )
Total current tax 82,079 5,459

Deferred tax 150,624 208,323
Tax on profit 232,703 213,782

UK corporation tax has been charged at 25% (2023 - 19%).

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

31/12/24 31/12/23
£    £   
Profit before tax 1,096,972 1,699,051
Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 -
19%)

274,243

322,820

Effects of:
Expenses not deductible for tax purposes 7,717 3,624
Depreciation in excess of capital allowances 68,141 207,668
Utilisation of tax losses (117,546 ) (320,280 )
Adjustments to tax charge in respect of previous periods 148 (50 )
Total tax charge 232,703 213,782

8. DIVIDENDS
31/12/24 31/12/23
£    £   
Ordinary shares shares of £0.01 each
Interim 280,000 280,000

PRECONOMY LIMITED (REGISTERED NUMBER: 03904224)

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

9. TANGIBLE FIXED ASSETS
Plant,
machinery,
fixtures
& fittings
£   
COST
At 1 January 2024 4,134,820
Additions 662,407
Disposals (169,701 )
At 31 December 2024 4,627,526
DEPRECIATION
At 1 January 2024 2,796,868
Charge for year 191,255
Eliminated on disposal (162,866 )
At 31 December 2024 2,825,257
NET BOOK VALUE
At 31 December 2024 1,802,269
At 31 December 2023 1,337,952

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant,
machinery,
fixtures
& fittings
£   
COST
At 1 January 2024 882,404
Additions 207,941
At 31 December 2024 1,090,345
DEPRECIATION
At 1 January 2024 283,033
Charge for year 95,280
At 31 December 2024 378,313
NET BOOK VALUE
At 31 December 2024 712,032
At 31 December 2023 599,371

10. STOCKS
31/12/24 31/12/23
£    £   
Raw materials 377,324 297,247
Work-in-progress 964,059 1,167,044
Finished goods 67,602 60,943
1,408,985 1,525,234

PRECONOMY LIMITED (REGISTERED NUMBER: 03904224)

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

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/12/24 31/12/23
£    £   
Trade debtors 5,038,707 4,274,893
Other debtors 295,878 308,496
Directors' current accounts 148,310 127,104
Prepayments and accrued income 365,040 657,333
5,847,935 5,367,826

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/12/24 31/12/23
£    £   
Hire purchase contracts (see note 14) 127,978 144,078
Trade creditors 1,855,181 1,568,287
Tax 81,931 5,509
Social security and other taxes 294,061 235,189
Other creditors 38,578 25,161
Amount owed to invoice finance 18,774 35,148
Accruals and deferred income 347,990 250,571
2,764,493 2,263,943

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
31/12/24 31/12/23
£    £   
Hire purchase contracts (see note 14) 123,884 125,561

14. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
31/12/24 31/12/23
£    £   
Net obligations repayable:
Within one year 127,978 144,078
Between one and five years 123,884 125,561
251,862 269,639

Non-cancellable operating leases
31/12/24 31/12/23
£    £   
Within one year 179,472 193,013
Between one and five years 81,493 260,965
260,965 453,978

PRECONOMY LIMITED (REGISTERED NUMBER: 03904224)

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

15. SECURED DEBTS

The following secured debts are included within creditors:

31/12/24 31/12/23
£    £   
Hire purchase contracts 251,862 269,639
Amount owed to invoice finance 18,774 35,148
270,636 304,787

The hire purchase contracts are secured on the plant and equipment to which they relate. The amount owed to the invoice finance company is secured on trade debtors.

16. PROVISIONS FOR LIABILITIES
31/12/24 31/12/23
£    £   
Deferred tax 358,947 208,323

Deferred
tax
£   
Balance at 1 January 2024 208,323
Provided during year 150,624
Balance at 31 December 2024 358,947

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31/12/24 31/12/23
value: £    £   
34,374,606 Ordinary shares £0.01 343,746 343,746

18. PENSION COMMITMENTS

The company operates a defined contribution pension scheme the assets of which are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company and amounted to £87,351 (2023: £76,918). At the year end accrued pension charges amounted to one month's contributions totalling £26,723 (2023: £25,161).

19. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

At the balance sheet date, N Giles owed £148,310 to the company (2023: £127,103 was owed to the company). An amount of £301,206 was advanced during the year and £280,000 was repaid. Interest has been charged at 2.25% resulting in a charge of £1,923 for the year.The loan is repayable on demand.

20. ULTIMATE CONTROLLING PARTY

The controlling party is N Giles.

The ultimate controlling party is N Giles.