The director presents his annual report and financial statements for the year ended 31 December 2024.
The principal activity of the company continued to be that of precision engineers to the aircraft industry.
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.
The director who held office during the year and up to the date of signature of the financial statements was as follows:
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
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 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.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
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.
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 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.
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.
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.
The average monthly number of persons (including directors) employed by the company during the year was:
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:
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.
At the year end the company had operating lease commitments of £50,309 (2023 - £94,765).