Company Registration No. 04927024 (England and Wales)
T & R PRECISION ENGINEERING LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2024
31 December 2024
PAGES FOR FILING WITH REGISTRAR
PM+M Solutions for Business LLP
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
T & R PRECISION ENGINEERING LIMITED
COMPANY INFORMATION
Director
Mr T A Maddison
Company number
04927024
Registered office
Peel Mill
Station Road
Foulridge
Colne
Lancashire
BB8 7LE
Accountants
PM+M Solutions for Business LLP
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
T & R PRECISION ENGINEERING LIMITED
CONTENTS
Page
Director's report
1 - 2
Balance sheet
3 - 4
Notes to the financial statements
5 - 10
T & R PRECISION ENGINEERING LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The director presents his annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the company continued to be that of precision engineers to the aircraft industry.

Results and dividends

2024 was a remarkable year for the company in many ways, with very little warning the flip/flopping Airbus A320 schedule increased from the 2nd of January 2024, with little chance of pulling material forward from day one of our return to work, we were already put into an arrears situation which we then managed through the course of 2024.

As predicted in the 2023 Management Review, Airbus slowed the trajectory of its A320neo-family ramp-up by around a year, in response to supply-chain concerns, pushing the 75-per-month production target back to 2027.

The airframer had intended to take A320neo-family monthly output to 65 aircraft by early 2024, but this has been revised to the end of 2025.

The average build rate in 2024 was 55 aircraft per-month with Airbus planning a 36% rate increase over the next 3 years, whether the supply chain achieves this remains to be seen, less we forget the monthly build rate was 60+ at the end of 2019.

The significance of the Airbus 320neo build rates, relates to the engine type fitted to the aircraft the GE/Safran partnership supplies the LEAP A (Airbus) on this aircraft which accounts for a 70% market share the other 30% is currently supplied by the Pratt & Whitney GTF (Geared Turbo Fan). Although with the GTF experiencing continuing reliability issues, LEAP A could move to 85% the engine of choice on the outstanding 8,200 narrowbodies currently on order.

This translates directly to our largest customer David Hart Aerospace Pipes (DHAP) parent company Leggett & Platt Aerospace; we supply various machined castings and Inconel components for their welded assemblies for the LEAP A engine.

DHAP’s 2024 sales where £3.9+ Million 53.6% of our total turnover this was a considerable increase (73.5%) from their 2023 numbers £2.2+ Million.

Sales turnover increased by 28.8% in 2024 from £5.7+ Million in 2023 to 7.3+ Million in 2024 with a forecast of £6.2+ Million in 2025.

2024 became the company’s best trading year since the pandemic, eclipsing 2023 (£5.7+ Million) turnover figure, however what is significant about the 2024 numbers is that it was achieved with less than half the staff compared to 2019, £5.4+ Million with a headcount of 75. Sales per employee have increased threefold since 2019 from £72k per head to £212k per head at the end of 2024.

The 2024 Capital investments in T&R’s machining capabilities saw the installation of a Mazak Integrex i350HS machine (£514,000) along with Hydrafeed Robotic arm (£150,000) in response to the volume uplift for 2024 the machine came in February 2024 with the automation following in the September to give us the benefit of a 3rd shift and lights out weekend working.

To add to our 5-axis capacity we received a further Mazak Variaxis i700 machining center (£415,000) with 18 pallet MPP (multi pallet pool) system (£212,750) fully automated machining cell, February 2024.

Other investments saw a new roof fitted to North Works (Moores Profiles £153k) followed by a 300KWP Solar system (Low Carbon £276k) in a bid to reduce our Carbon footprint and mitigate the ever-increasing energy costs.

2024 ended with the same flip/flopping Airbus A320 schedule this time Airbus announced they would not receive enough LEAP A engines from GE/Safran which would obviously affect the build rate, we saw around £400K of arrears removed in the last couple of months.

The Sales forecast for 2025 is circ £6.2 Million with a large first quarter drop for DHAP of £300K, roughly £100K per month with the next two quarter remaining flat, followed by a ramp up in the fourth quarter.

 

T & R PRECISION ENGINEERING LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr T A Maddison
Statement of director's responsibilities

The director is responsible for preparing the annual report 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:

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 them 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.

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
Mr T A Maddison
Director
19 May 2025
T & R PRECISION ENGINEERING LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 3 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
4,711,952
4,193,267
Current assets
Stocks
163,617
291,674
Debtors
6
3,764,898
3,100,188
Investments
7
2,308
-
0
Cash at bank and in hand
346,193
199,324
4,277,016
3,591,186
Creditors: amounts falling due within one year
8
(3,137,162)
(3,089,673)
Net current assets
1,139,854
501,513
Total assets less current liabilities
5,851,806
4,694,780
Creditors: amounts falling due after more than one year
9
(1,498,214)
(1,358,362)
Provisions for liabilities
10
(634,131)
(402,201)
Deferred income
(212,715)
(225,524)
Net assets
3,506,746
2,708,693
Capital and reserves
Called up share capital
1,800
1,800
Revaluation reserve
571,333
579,695
Profit and loss reserves
2,933,613
2,127,198
Total equity
3,506,746
2,708,693
T & R PRECISION ENGINEERING LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2024
31 December 2024
- 4 -

For the financial year ended 31 December 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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

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

The financial statements were approved and signed by the director and authorised for issue on 19 May 2025
Mr T A Maddison
Director
Company registration number 04927024 (England and Wales)
T & R PRECISION ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
1
Accounting policies
Company information

T & R Precision Engineering Limited is a private company limited by shares incorporated in England and Wales. The registered office is Peel Mill, Station Road, Foulridge, Colne, Lancashire, BB8 7LE.

1.1
Accounting convention

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

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

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

1.2
Turnover

Turnover represents consideration receivable in respect of sales of goods, excluding value added tax. Where the outcome of a transaction can be estimated reliably for contract work in progress revenue associated with the transaction is recognised by reference to the stage of completion at the year end.

1.3
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:

Freehold land and buildings
2% on cost
Improvements to property
2% on cost
Plant and equipment
15% on cost
Fixtures and fittings
15% on cost
Computers
20% on cost
Motor vehicles
25% on cost

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

1.4
Stocks

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

1.5
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.

T & R PRECISION ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 6 -
Deferred tax

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

 

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

1.6
Retirement benefits

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

1.7
Leases

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

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.8
Government grants

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

 

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

1.9
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.

T & R PRECISION ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
2
Judgements and key sources of estimation uncertainty
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.

Amounts recoverable on contracts

The company makes certain estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions.

 

The principal estimates and judgements that could have a significant effect upon the company's financial results relate to the stage of completion and valuation of amounts recoverable on contracts.

3
Employees

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

2024
2023
Number
Number
Total
36
37
T & R PRECISION ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
4
Tangible fixed assets
Freehold land and buildings
Improvements to property
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost or valuation
At 1 January 2024
2,100,000
31,475
6,763,977
181,411
23,578
590,007
9,690,448
Additions
230,000
-
0
807,298
-
0
-
0
178,597
1,215,895
At 31 December 2024
2,330,000
31,475
7,571,275
181,411
23,578
768,604
10,906,343
Depreciation and impairment
At 1 January 2024
42,000
2,152
5,121,809
107,344
13,360
210,588
5,497,253
Depreciation charged in the year
44,930
630
479,229
18,573
4,736
149,040
697,138
At 31 December 2024
86,930
2,782
5,601,038
125,917
18,096
359,628
6,194,391
Carrying amount
At 31 December 2024
2,243,070
28,693
1,970,237
55,494
5,482
408,976
4,711,952
At 31 December 2023
2,058,000
29,322
1,642,240
74,067
10,219
379,419
4,193,267

Land and buildings were revalued on the basis of market value at 31 December 2024 by the director.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

2024
2023
£
£
Cost
1,808,824
1,578,824
Accumulated depreciation
(306,498)
(270,322)
Carrying value
1,502,326
1,308,502
T & R PRECISION ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
5
Financial instruments
2024
2023
£
£
Carrying amount of financial assets include:
Instruments measured at fair value through profit or loss
2,308
-
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,613,348
1,540,136
Other debtors
2,151,550
1,560,052
3,764,898
3,100,188
7
Current asset investments
2024
2023
£
£
Other investments
2,308
-
0
8
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
216,034
109,099
Trade creditors
842,111
725,787
Taxation and social security
178,351
145,014
Other creditors
1,900,666
2,109,773
3,137,162
3,089,673
9
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
37,500
481,006
Other creditors
1,460,714
877,356
1,498,214
1,358,362
Creditors which fall due after five years are as follows:
2024
2023
£
£
Payable by instalments
-
120,174
T & R PRECISION ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
10
Provisions for liabilities
2024
2023
£
£
Deferred tax liabilities
634,131
402,201

 

11
Secured debts

The following secured debts are included within creditors:

 

Bank loans £253,534 (2023 - £452,606)

Hire purchase contracts £1,902,832 (2023 - £1,383,580)

Other creditors £1,365,198 (2023- £1,266,057)

 

The bank loan is secured by fixed and floating charges over the assets of the company.

 

Hire purchase contracts and other creditors are secured by fixed and floating charges over the assets of the company.

12
Operating lease commitments

At the year end the company had operating lease commitments of £50,309 (2023 - £94,765).

14
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
T A Maddison Loan
-
650,470
52,981
(25,554)
677,897
650,470
52,981
(25,554)
677,897
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