Company registration number 01213297 (England and Wales)
TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
COMPANY INFORMATION
Directors
Mr E M Byrne
Mr G P Lendrum
Mr M G Sheridan
Company number
01213297
Registered office
Unit 3 Harley Industrial Park
Paxton Hill
St Neots
PE19 6TA
Auditor
Ensors Accountants LLP
Victory House
Vision Park
Chivers Way, Histon
Cambridge
CB24 9ZR
TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 25
TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The directors present the strategic report for the year ended 30 September 2024.
Nature of the business
Titan’s business is focused on the design, development, manufacture and assembly of precision machined components and the development of electrically powered assisted steering systems and products primarily for the motorsport and automotive industries.
Fair review of the business
The year to September 2024 saw a 1.3% increase in turnover and a significant increase in profitability over the previous year as the company adjusted to the disruption to the world economy that had occurred in the previous year.
Our strategy of developing business in adjacent industries has been successful with the award of significant contracts for work in the medical sector.
Cash flows have remained positive and have allowed the directors to continue the program of investment in research and development, supported by government grants. This has continued at levels similar to the previous year. Following significant investment in capital equipment over recent years, the directors reduced investment in the current year.
Desciption of the principle risks and uncertainties
The world economic environment is expected to continue to be volatile and therefore to have a significant impact on our customers and our supply chain. We expect major projects will be delayed. To mitigate against this, we maintain continuous communication with our customers on their view of future trends.
We continue to widen our supply chain to ensure access to materials and services.
Through a program of continuous improvement and development we have built resilience and loyalty within our workforce. Enhancing their skills will ensure we can meet returning demand from fast growing lower volume manufacturers who need bespoke systems.
Continued high interest rates have imposed additional burdens, but in the past financial year they were well within our sensitivity levels.
Analysis using financial key performance indicators
The directors manage and monitor the business using key performance indicators. These are turnover, gross profit margins and pre-tax profit margins.
Following a modest increase in turnover, the directors are pleased to note an increase in gross profit percentage, and an increase in pre-tax profit. Net assets have also increased from £3,235,717 to £3,821,407 at the year end.
The Directors consider that there are no non-financial key performance indicators.
TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Mr G P Lendrum
Director
2 April 2025
TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the company continued to be that of design, development, manufacture and assembly of precision machined components and the development of electricity powered assisted steering systems and products primary for the motorsport and automotive industries.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr E M Byrne
Mr G P Lendrum
Mr M G Sheridan
Auditor
In accordance with the company's articles, a resolution proposing that Ensors Accountants LLP be reappointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr G P Lendrum
Director
2 April 2025
TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
The directors are responsible for preparing the annual report 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). 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.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
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.
TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
- 5 -
Opinion
We have audited the financial statements of Titan Motorsport & Automotive Engineering Ltd (the 'company') for the year ended 30 September 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
The directors are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company are complying with the legal and regulatory framework;
inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
- 7 -
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Jayson Lawson (Senior Statutory Auditor)
for and on behalf of Ensors Accountants LLP
3 April 2025
Chartered Accountants
Victory House
Statutory Auditor
Vision Park
Chivers Way, Histon
Cambridge
CB24 9ZR
TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
9,824,939
9,695,648
Cost of sales
(7,066,936)
(7,114,739)
Gross profit
2,758,003
2,580,909
Administrative expenses
(2,303,827)
(2,496,460)
Other operating income
320,970
244,431
Operating profit
4
775,146
328,880
Interest payable and similar expenses
7
(77,555)
(55,732)
Profit before taxation
697,591
273,148
Tax on profit
8
(112,509)
19,521
Profit for the financial year
585,082
292,669
The profit and loss account has been prepared on the basis that all operations are continuing operations.
TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
9
19,607
31,138
Tangible assets
10
1,315,403
1,570,224
1,335,010
1,601,362
Current assets
Stocks
12
1,083,247
1,175,747
Debtors
13
4,436,347
3,402,052
Cash at bank and in hand
138
59,628
5,519,732
4,637,427
Creditors: amounts falling due within one year
14
(2,679,237)
(2,441,630)
Net current assets
2,840,495
2,195,797
Total assets less current liabilities
4,175,505
3,797,159
Creditors: amounts falling due after more than one year
16
(115,230)
(279,272)
Provisions for liabilities
Deferred tax liability
18
239,476
282,170
(239,476)
(282,170)
Net assets
3,820,799
3,235,717
Capital and reserves
Called up share capital
21
1,114
1,114
Share premium account
65,049
65,049
Profit and loss reserves
3,754,636
3,169,554
Total equity
3,820,799
3,235,717
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 2 April 2025 and are signed on its behalf by:
Mr G P Lendrum
Director
Company registration number 01213297 (England and Wales)
TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 October 2022
1,114
65,049
2,876,885
2,943,048
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
292,669
292,669
Balance at 30 September 2023
1,114
65,049
3,169,554
3,235,717
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
585,082
585,082
Balance at 30 September 2024
1,114
65,049
3,754,636
3,820,799
TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
164,440
302,459
Interest paid
(77,555)
(55,732)
Income taxes (paid)/refunded
(60,633)
13,108
Net cash inflow from operating activities
26,252
259,835
Investing activities
Purchase of intangible assets
(21,348)
Purchase of tangible fixed assets
(19,331)
Proceeds from disposal of tangible fixed assets
433
Net cash generated from/(used in) investing activities
433
(40,679)
Financing activities
Repayment of bank loans
104,404
105,868
Payment of finance leases obligations
(223,991)
(284,636)
Net cash used in financing activities
(119,587)
(178,768)
Net (decrease)/increase in cash and cash equivalents
(92,902)
40,388
Cash and cash equivalents at beginning of year
59,628
19,240
Cash and cash equivalents at end of year
(33,274)
59,628
Relating to:
Cash at bank and in hand
138
59,628
Bank overdrafts included in creditors payable within one year
(33,412)
TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
1
Accounting policies
Company information
Titan Motorsport & Automotive Engineering Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit 3 Harley Industrial Park, Paxton Hill, St Neots, PE19 6TA.
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.
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, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
20% or 25% straight line (*)
* - Assets acquired for specific projects are amortised over the life of the related project
TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings
2% straight line
Plant and machinery
15% reducing balance (*)
Fixtures and fittings
15% and 25% reducing balance (*)
Motor vehicles
25% reducing balance
Computer equipment
25% reducing balance
Property improvements
10% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Land included within land and buildings, is not depreciated.
* - Assets acquired for specific projects are depreciated over the life of the related project.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.12
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.
TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 16 -
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.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.16
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.
1.17
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.
TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
9,182,195
9,360,841
Engineering services
642,744
334,807
9,824,939
9,695,648
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
9,012,193
9,029,139
Europe
347,141
620,702
Rest of the world
465,605
45,807
9,824,939
9,695,648
2024
2023
£
£
Other revenue
Grants received
255,267
189,623
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
1,840
831
Research and development costs
382,131
131,984
Government grants
(255,267)
(189,623)
Fees payable to the company's auditor for the audit of the company's financial statements
10,500
13,500
Depreciation of owned tangible fixed assets
102,934
111,171
Depreciation of tangible fixed assets held under finance leases
151,887
213,333
Profit on disposal of tangible fixed assets
(433)
-
Amortisation of intangible assets
11,531
19,590
TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
81
86
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,342,920
3,466,826
Social security costs
352,160
369,305
Pension costs
114,405
120,500
3,809,485
3,956,631
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
274,346
327,739
Company pension contributions to defined contribution schemes
8,250
9,708
282,596
337,447
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
117,932
140,463
Company pension contributions to defined contribution schemes
4,280
5,248
TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on invoice finance arrangements
56,269
21,967
Other finance costs:
Interest on finance leases and hire purchase contracts
21,286
33,765
77,555
55,732
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
155,203
Deferred tax
Origination and reversal of timing differences
(42,694)
(19,521)
Total tax charge/(credit)
112,509
(19,521)
The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
697,591
273,148
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
174,398
51,898
Tax effect of expenses that are not deductible in determining taxable profit
(10)
300
Group relief
26,058
28,516
SME R&D qualifying expenditure
(48,501)
(43,516)
Deferred tax movement
(42,694)
(19,522)
Fixed asset timing differences
(13,168)
(29,801)
R&D expenditure credits
16,426
(7,396)
Taxation charge/(credit) for the year
112,509
(19,521)
TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
9
Intangible fixed assets
Software
£
Cost
At 1 October 2023 and 30 September 2024
372,464
Amortisation and impairment
At 1 October 2023
341,326
Amortisation charged for the year
11,531
At 30 September 2024
352,857
Carrying amount
At 30 September 2024
19,607
At 30 September 2023
31,138
More information on impairment movements in the year is given in note .
10
Tangible fixed assets
Land and buildings
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 October 2023
743,738
3,408,743
255,587
47,308
4,455,376
Disposals
(146,531)
(146,531)
At 30 September 2024
743,738
3,408,743
109,056
47,308
4,308,845
Depreciation and impairment
At 1 October 2023
309,312
2,341,843
220,324
13,673
2,885,152
Depreciation charged in the year
52,673
184,594
11,247
6,307
254,821
Eliminated in respect of disposals
(146,531)
(146,531)
At 30 September 2024
361,985
2,526,437
85,040
19,980
2,993,442
Carrying amount
At 30 September 2024
381,753
882,306
24,016
27,328
1,315,403
At 30 September 2023
434,426
1,066,900
35,263
33,635
1,570,224
TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
10
Tangible fixed assets
(Continued)
- 21 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Plant and machinery
648,050
792,116
Computer equipment
23,851
29,355
Property improvements
10,926
12,382
682,827
833,853
11
Subsidiaries
Details of the company's subsidiaries at 30 September 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Titan Automotive Limited
United Kingdom
Ordinary shares
100.00
Titan Race Products Limited
United Kingdom
Ordinary shares
100.00
Registered office addresses (all UK unless otherwise indicated):
Unit 5, Harley Industrial Park, Paxton Hill, St Neots. England, PE19 6TA
12
Stocks
2024
2023
£
£
Raw materials and consumables
139,900
135,363
Work in progress
360,113
427,952
Finished goods and goods for resale
583,234
612,432
1,083,247
1,175,747
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,455,065
1,038,046
Corporation tax recoverable
37,676
54,808
Amounts owed by group undertakings
2,744,339
2,194,895
Other debtors
110,174
28,973
Prepayments and accrued income
89,093
85,330
4,436,347
3,402,052
TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
15
402,337
245,886
Obligations under finance leases
17
140,348
218,932
Trade creditors
1,295,655
1,054,135
Corporation tax
92,576
15,138
Other taxation and social security
338,319
261,019
Deferred income
19
225,010
488,809
Other creditors
21,959
43,153
Accruals
163,033
114,558
2,679,237
2,441,630
15
Loans and overdrafts
2024
2023
£
£
Bank loans
368,925
264,521
Bank overdrafts
33,412
402,337
264,521
Payable within one year
402,337
245,886
Payable after one year
18,635
The long-term loans are secured by fixed charges over Unit 5 Harley Industrial Park, Paxton Hill, St Neots, PE19 6TA.
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
15
18,635
Obligations under finance leases
17
115,230
260,637
115,230
279,272
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
140,348
218,932
In two to five years
115,230
260,637
255,578
479,569
TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
17
Finance lease obligations
(Continued)
- 23 -
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. A sale and leaseback was entered into within the period. No gains or losses were made on the arrangement.
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
239,476
282,170
2024
Movements in the year:
£
Liability at 1 October 2023
282,170
Credit to profit or loss
(42,694)
Liability at 30 September 2024
239,476
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
19
Deferred income
2024
2023
£
£
Other deferred income
225,010
488,809
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
114,405
120,500
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 24 -
21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,114
1,114
1,114
1,114
The company has one class of ordinary shares which rank equally for voting purposes. Each share is entitled to one vote in any circumstance.
22
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
149,496
111,375
Between two and five years
594,000
In over five years
297,000
1,040,496
111,375
23
Directors' transactions
During the year the company received a short-term, interest-free loan of £11,846 from a director. The loan was repaid in full one month after the year-end.
24
Ultimate controlling party
The immediate parent company and ultimate controlling party by way of majority shareholding is Titan Engineering Group Limited, a company incorporated in England and Wales. Its registered office is Unit 5 Harley Industrial Park, Paxton Hill, St. Neots, England, PE19 6TA.
The consolidated financial statements can be obtained from Companies House.
TITAN MOTORSPORT & AUTOMOTIVE ENGINEERING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
25
Cash generated from operations
2024
2023
£
£
Profit after taxation
585,082
292,669
Adjustments for:
Taxation charged/(credited)
112,509
(19,521)
Finance costs
77,555
55,732
Gain on disposal of tangible fixed assets
(433)
-
Amortisation and impairment of intangible assets
11,531
19,590
Depreciation and impairment of tangible fixed assets
254,821
324,504
Movements in working capital:
Decrease/(increase) in stocks
92,500
(244,973)
(Increase)/decrease in debtors
(1,051,427)
148,618
Increase/(decrease) in creditors
346,101
(97,170)
Decrease in deferred income
(263,799)
(176,990)
Cash generated from operations
164,440
302,459
26
Analysis of changes in net debt
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
59,628
(59,490)
138
Bank overdrafts
(33,412)
(33,412)
59,628
(92,902)
(33,274)
Borrowings excluding overdrafts
(264,521)
(104,404)
(368,925)
Obligations under finance leases
(479,569)
223,991
(255,578)
(684,462)
26,685
(657,777)
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