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Company Registration number: 03103369

Sumac Precision Engineering Limited

Annual Report and Financial Statements

for the Year Ended 30 September 2024

 

Sumac Precision Engineering Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 10

Profit and Loss Account

11

Statement of Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Notes to the Financial Statements

15 to 29

 

Sumac Precision Engineering Limited

Company Information

Directors

J A Stevenson

J A Marsh

M A Robson

D Clothier

Company secretary

D Clothier

Registered office

26 Cambridge Road
Granby Industrial Estate
Weymouth
Dorset
DT4 9TJ

Auditors

Albert Goodman LLP
Goodwood House
Blackbrook Park Avenue
Taunton
Somerset
TA1 2PX

 

Sumac Precision Engineering Limited

Strategic Report for the Year Ended 30 September 2024

The directors present their strategic report for the year ended 30 September 2024.

Principal activity

The principal activity of the company is that of precision engineers.

Fair review of the business

The year under review was particularly encouraging in itself with many continued positives for the future. As always, ongoing challenges remain but supply chain issues due to the Russian invasion of Ukraine seem far more settled. The ongoing costs of conducting business in the UK, does however seriously affect our ability for competitiveness in not only global but also UK markets. Unfortunately fuel and energy prices have remained stubbornly high with no reduced costs on the horizon. Encouragingly, turnover increased with good gross profits maintained. The directors continue to strive to solidify business relationships with good growth seen from a number of these new market sectors. Global demand remained stubbornly slow in electronics and semi conductor sectors, but this was adequately offset by improved business outlooks in scientific, medical and defence, amongst others. The directors will continue to evaluate opportunities for investment and to strengthen their position in key market sectors. Although turnover has increased from the previous year by just over 14%, even with the unrelenting pressure on margins and increasing costs, a gross profit of almost 37% was achieved. Investment in capital equipment and personnel is ongoing to ensure local and global competitiveness is maintained and allow for good positioning for ongoing stability.


To ensure improved efficiencies and competitiveness, Sumac continues to invest in capital equipment, and the replacement of the laser cutting machine shows significant improvement to processes and capability. This has allowed Sumac to offer added competitiveness in new market sectors which offers positive opportunities for the future. Investment also continues in many other areas where there potential positives for ongoing contracts. Prior investments in plant, machinery and staff, particularly apprentices, are beginning to show their true value.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2024

2023

Turnover

£

9,638,990

8,452,563

Gross Profit

£

3,578,848

2,691,284

Profit before tax

£

1,123,716

337,974

Future developments

The company continues to develop long term supply agreements and is actively working to secure customers who can offer a stable platform for future business. High prices continue to impact the ability to enter new markets in some instances. Although focus and drive in these areas is proving fruitful, the business operating environment remains unstable due mainly to US global uncertainty. Business levels are disappointingly not continuing as with the previously seen growth, although there are some green shoots evident. The directors believe the company has continued to position itself strongly in the marketplace and has enhanced its business development strategy. The ongoing efforts to establish new customer relationships are proving invaluable and business levels are showing a definitive upturn. The directors believe the ongoing improvement to financial strength continues to allow the business flexibility, growth and stability, allowing there to be more discernment in the customer base.

Margins continue to be extremely challenged, although it is anticipated that with improved efficiencies as a result of improved knowledge of the new industry sectors and work types, then these will see improvements over time.

 

Sumac Precision Engineering Limited

Strategic Report for the Year Ended 30 September 2024

Principal risks and uncertainties

The principal risk to the business remains broadly similar to the previous year. Global insecurity and conflict including Russia/Ukraine, and Israel/Iran continue to have a negative impact and show no sign of stabilizing in the short term. The eventual impact of US political strategy is largely unknown. Principal risks facing the company are largely maintaining and reducing leadtimes as customers are seeing this as a key requirement for accessing markets. Skilled labour continues to be problematic.

Government strategy is stifling UK business with upward pressure on wages and employment costs, and the erosion of our ability to compete in Global markets as a result of these, are a concern.

Approved by the Board on 23 June 2025 and signed on its behalf by:


M A Robson
Director

   
 

Sumac Precision Engineering Limited

Directors' Report for the Year Ended 30 September 2024

The directors present their report and the financial statements for the year ended 30 September 2024.

Directors of the company

The directors who held office during the year were as follows:

J A Stevenson

J A Marsh

M A Robson

D Clothier - Company secretary and director

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

The auditors Albert Goodman LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Financial instruments

Objectives and policies

The company’s principal financial instruments comprise bank balances, trade debtors, trade creditors, lease purchase finance agreements, directors’ loans and bank loans. The main purpose of these instruments is to maintain funds to finance the company’s operations.

Price risk, credit risk, liquidity risk and cash flow risk

In respect of bank balances, the liquidity risk is managed through treasury management in respect of cash balances with the use of a deposit account and fixed term deposits as necessary. The risk associated with the bank loan is managed through fixed interest rates with the structured loan finance being used to fund capital purchases.

Trade debtors are managed by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet the amounts due.

Lease purchase finance agreement liquidity risk is managed in the same way as trade creditors above.

In respect of directors’ loans, the directors are aware of the company’s cash working capital requirements and receive a set monthly repayment. Any repayment over and above this amount would be by agreement when finance was available without compromising the company’s working capital requirement.

Future Developments

The future developments of the business are included within the strategic report.

 

Sumac Precision Engineering Limited

Directors' Report for the Year Ended 30 September 2024

Approved by the Board on 23 June 2025 and signed on its behalf by:


M A Robson
Director

   
 

Sumac Precision Engineering Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 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.

 

Sumac Precision Engineering Limited

Independent Auditor's Report to the Members of Sumac Precision Engineering Limited

Opinion

We have audited the financial statements of Sumac Precision Engineering Limited (the 'company') for the year ended 30 September 2024, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, and 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 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.

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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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.

 

Sumac Precision Engineering Limited

Independent Auditor's Report to the Members of Sumac Precision Engineering Limited

Other information

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. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

In the light of our 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 and the Directors' Report.

Matters on which we are required to report by exception

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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 6, 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.

 

Sumac Precision Engineering Limited

Independent Auditor's Report to the Members of Sumac Precision Engineering Limited

Auditor 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:

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, and health and safety legislation;

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;

tested journal entries to identify unusual transactions;

assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

investigated the rationale behind significant or unusual transactions.

 

Sumac Precision Engineering Limited

Independent Auditor's Report to the Members of Sumac Precision Engineering Limited

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation;

reading the minutes of meetings of those charged with governance;

enquiring of management as to actual and potential litigation and claims; and

reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company’s legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 auditor's report.

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 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.





Joseph Doggrell FCA BSc (Hons) (Senior Statutory Auditor)
For and on behalf of Albert Goodman LLP, Statutory Auditor

Goodwood House
Blackbrook Park Avenue
Taunton
Somerset
TA1 2PX

23 June 2025

 

Sumac Precision Engineering Limited

Profit and Loss Account
for the Year Ended 30 September 2024

Note

2024
 £

2023
 £

Turnover

3

9,638,990

8,452,563

Cost of sales

 

(6,060,142)

(5,761,279)

Gross profit

 

3,578,848

2,691,284

Administrative expenses

 

(2,439,455)

(2,315,624)

Other operating income

4

-

4,500

Operating profit

5

1,139,393

380,160

Other interest receivable and similar income

6

21,826

7,941

Interest payable and similar charges

7

(37,503)

(50,127)

Profit before tax

 

1,123,716

337,974

Taxation

11

(112,993)

209,055

Profit for the financial year

 

1,010,723

547,029

The above results were derived from continuing operations.

 

Sumac Precision Engineering Limited

Statement of Comprehensive Income
for the Year Ended 30 September 2024

2024
£

2023
£

Profit for the year

1,010,723

547,029

Total comprehensive income for the year

1,010,723

547,029

 

Sumac Precision Engineering Limited

(Registration number: 03103369)
Balance Sheet as at 30 September 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

12

2

2

Tangible assets

13

1,537,452

1,499,740

 

1,537,454

1,499,742

Current assets

 

Stocks

14

1,750,735

2,026,111

Debtors

15

1,491,092

1,953,788

Cash at bank and in hand

 

2,761,410

1,427,265

 

6,003,237

5,407,164

Creditors: Amounts falling due within one year

17

(2,082,705)

(2,110,663)

Net current assets

 

3,920,532

3,296,501

Total assets less current liabilities

 

5,457,986

4,796,243

Creditors: Amounts falling due after more than one year

17

(501,620)

(574,849)

Provisions for liabilities

18

(335,930)

(311,681)

Net assets

 

4,620,436

3,909,713

Capital and reserves

 

Called up share capital

10,516

10,516

Share premium reserve

198,731

198,731

Capital redemption reserve

100

100

Retained earnings

4,411,089

3,700,366

Shareholders' funds

 

4,620,436

3,909,713

Approved and authorised by the Board on 23 June 2025 and signed on its behalf by:
 


M A Robson
Director


D Clothier
Company secretary and director

 
 

Sumac Precision Engineering Limited

Statement of Changes in Equity
for the Year Ended 30 September 2024

Share capital
£

Share premium
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 October 2023

10,516

198,731

100

3,700,366

3,909,713

Profit for the year

-

-

-

1,010,723

1,010,723

Dividends

-

-

-

(300,000)

(300,000)

At 30 September 2024

10,516

198,731

100

4,411,089

4,620,436

Share capital
£

Share premium
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 October 2022

10,516

198,731

100

3,953,337

4,162,684

Profit for the year

-

-

-

547,029

547,029

Dividends

-

-

-

(800,000)

(800,000)

At 30 September 2023

10,516

198,731

100

3,700,366

3,909,713

 

Sumac Precision Engineering Limited

Notes to the Financial Statements
for the Year Ended 30 September 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
26 Cambridge Road
Granby Industrial Estate
Weymouth
Dorset
DT4 9TJ

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

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.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

These financial statements are presented in Sterling (£).

Summary of disclosure exemptions

The company has taken advantage of the exemption from preparing a statement of cash flows, net debt reconciliation and from all other requirements of Section 11, Basic Financial Instruments and Section 12, Other Financial Instruments Issues, as the company is a member of a group that prepares publicly available consolidated financial statements.

The company has taken advantage of the exemption in FRS102 1.12(c) from disclosing transactions with the other members of the group.

Name of parent of group

These financial statements are consolidated in the financial statements of Sumac Manufacturing (Holdings) Limited.

The financial statements of Sumac Manufacturing (Holdings) Limited may be obtained from Companies House.

Going concern

The financial statements have been prepared on a going concern basis.

 

Sumac Precision Engineering Limited

Notes to the Financial Statements
for the Year Ended 30 September 2024

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 liabiliities are as follows:

Net Realisable Value of Stock
Raw Materials
In determining the net realisable value of raw materials, the company considers age, length of ownership, current market trends and advancements and general industry performance. Each year the company reviews the above to establish if there is any change in the expected net realisable value of stock items. At 30 September 2024 the net realisable value of raw materials was £215,229 (2023: £237,404).

Work in Progress
In determining the net realisable value of raw materials, the company considers age, length of ownership, current market trends and advancements, general industry performance and correspondence with the customer. Each year the company reviews the above to establish if there is any change in the expected net realisable value. At 30 September 2024 the net realisable value of work in progress was £1,108,461 (2023: 1,379,922)

Finished goods
In determining the net realisable value of finished goods, the company considers age, length of ownership, current market trends and advancements and general industry performance. Each year the company reviews the above to establish if there is any change in the expected net realisable value of stock items. At 30 September 2024 the net realisable value of finished goods was £427,045 (2023: £417,851).

Turnover recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts. Turnover is recognised on despatch of goods.

Government grants

Government grants are recognised under the accruals model resulting in income being recognised on a systematic basis over the period in which the related costs are incurred for which the grant is compensating. The income from the scheme is recognised as other income in the profit and loss and timing differences presented as other debtors or deferred income within the balance sheet.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Exchange differences are taken into account in arriving at operating profit. Exchange differences are recognised in the profit and loss in the period in which they arise.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

 

Sumac Precision Engineering Limited

Notes to the Financial Statements
for the Year Ended 30 September 2024

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred income tax is recognised on timing differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated at cost, less accumulated depreciation and accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

25% reducing balance

Furniture, fittings and equipment

20% - 33% reducing balance

Motor vehicles

25% reducing balance

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

Over 20 years straight line

 

Sumac Precision Engineering Limited

Notes to the Financial Statements
for the Year Ended 30 September 2024

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade and other debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method less provision for impairment.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Other creditors, are measured individually at fair value net of transaction costs and subsequently at amortised cost using the effective interest method.

 

Sumac Precision Engineering Limited

Notes to the Financial Statements
for the Year Ended 30 September 2024

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Assets held under hire purchase agreements are capitalised as tangible fixed assets with the future obligation being recognised as a liability. Finance costs are recognised in the Profit and Loss Account calculated at a constant periodic rate of interest over the term of the liability.

Reserves

Called up share capital represents the nominal value of shares that have been issued.

Share premium account includes any premiums received on the issue of share capital. Transaction costs associated with the issuing of shares are deducted from the share premium.

Profit and loss account includes all current and prior period profits and losses.

Capital redemption reserve records the nominal value of shares repurchased by the company.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Defined contribution pension obligation

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations.

The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

 

Sumac Precision Engineering Limited

Notes to the Financial Statements
for the Year Ended 30 September 2024

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Share based payments

The company operates an equity-settled, share-based compensation plan, under which the entity receives services from employees as consideration for equity instruments (options) of the entity. The fair value of the employee services received is measured by reference to the estimated fair value at the grant date of equity instruments granted and is recognised as an expense over the vesting period. The estimated fair value of the option granted is calculated using the Black Scholes option pricing model. The total amount expensed is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied.

The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.

3

Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods

9,638,990

8,452,563

The analysis of the company's Turnover for the year by market is as follows:

2024
£

2023
£

UK

9,216,678

7,829,599

Europe

398,800

486,104

Rest of world

23,512

136,860

9,638,990

8,452,563

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2024
£

2023
£

Miscellaneous other operating income

-

4,500

 

Sumac Precision Engineering Limited

Notes to the Financial Statements
for the Year Ended 30 September 2024

5

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

441,566

460,300

Foreign exchange losses

1,881

903

Operating lease expense - plant and machinery

37,007

26,112

Loss/(profit) on disposal of property, plant and equipment

19,396

(24,471)

6

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

21,826

7,941

7

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

1,014

7,588

Interest on obligations under finance leases and hire purchase contracts

32,341

34,545

Interest expense on other finance liabilities

4,148

7,994

37,503

50,127

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

3,592,358

3,449,221

Social security costs

344,253

322,537

Pension costs, defined contribution scheme

79,141

77,038

Other employee expense

16,451

7,792

4,032,203

3,856,588

 

Sumac Precision Engineering Limited

Notes to the Financial Statements
for the Year Ended 30 September 2024

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Production

88

88

Administration and support

20

18

Other departments

4

4

112

110

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

209,981

233,821

Contributions paid to money purchase schemes

4,302

4,302

214,283

238,123

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

3

3

In respect of the highest paid director:

2024
£

2023
£

Remuneration

64,034

89,735

Company contributions to money purchase pension schemes

1,687

1,687

10

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

22,000

21,200


 

 

Sumac Precision Engineering Limited

Notes to the Financial Statements
for the Year Ended 30 September 2024

11

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

163,449

63,415

UK corporation tax adjustment to prior periods

(74,705)

(319,437)

88,744

(256,022)

Deferred taxation

Arising from origination and reversal of timing differences

24,249

11,108

Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods

-

35,859

Total deferred taxation

24,249

46,967

Tax expense/(receipt) in the income statement

112,993

(209,055)

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of 25% (2023 - 22%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

1,123,716

337,974

Corporation tax at standard rate

280,929

74,354

Tax (decrease)/increase from effect of capital allowances and depreciation

(24,816)

32,600

Tax increase/(decrease) from other short-term timing differences

1,049

(5,400)

Effect of expense not deductible in determining taxable profit (tax loss)

674

26

Effect of tax losses

-

(38,165)

Deferred tax expense from unrecognised temporary difference from a prior period

24,249

46,967

Tax decrease from effect of adjustment in research and development tax credit

(169,092)

(319,437)

Total tax charge/(credit)

112,993

(209,055)

 

Sumac Precision Engineering Limited

Notes to the Financial Statements
for the Year Ended 30 September 2024

12

Intangible assets

Goodwill
 £

Other intangible assets
 £

Total
£

Cost or valuation

At 1 October 2023

250,001

-

250,001

Additions acquired separately

-

1

1

At 30 September 2024

250,001

1

250,002

Amortisation

At 1 October 2023

250,000

-

250,000

At 30 September 2024

250,000

-

250,000

Carrying amount

At 30 September 2024

1

1

2

At 30 September 2023

1

1

2

13

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Plant and machinery
 £

Total
£

Cost or valuation

At 1 October 2023

502,350

175,923

5,030,915

5,709,188

Additions

64,875

68,225

387,905

521,005

Disposals

(16,768)

(56,095)

(346,111)

(418,974)

At 30 September 2024

550,457

188,053

5,072,709

5,811,219

Depreciation

At 1 October 2023

434,204

96,751

3,678,493

4,209,448

Charge for the year

25,510

24,249

391,805

441,564

Eliminated on disposal

(16,748)

(46,694)

(313,803)

(377,245)

At 30 September 2024

442,966

74,306

3,756,495

4,273,767

Carrying amount

At 30 September 2024

107,491

113,747

1,316,214

1,537,452

At 30 September 2023

68,146

79,172

1,352,422

1,499,740

 

Sumac Precision Engineering Limited

Notes to the Financial Statements
for the Year Ended 30 September 2024

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

2024
£

2023
£

Plant and machinery

691,338

664,725

   

14

Stocks

2024
£

2023
£

Raw materials and consumables

215,229

244,158

Work in progress

1,108,461

1,373,187

Finished goods and goods for resale

427,045

408,766

1,750,735

2,026,111

15

Debtors

Current

2024
£

2023
£

Trade debtors

1,391,921

1,632,828

Other debtors

-

3,965

Prepayments

99,171

83,784

Accrued income

-

233,211

 

1,491,092

1,953,788

16

Cash and cash equivalents

2024
£

2023
£

Cash on hand

-

4,781

Cash at bank

2,754,118

1,415,282

Short-term deposits

7,292

7,202

2,761,410

1,427,265

 

Sumac Precision Engineering Limited

Notes to the Financial Statements
for the Year Ended 30 September 2024

17

Creditors

Note

2024
 £

2023
 £

Due within one year

 

Loans and borrowings

19

315,293

304,424

Trade creditors

 

289,619

464,643

Amounts owed to group undertakings

 

500,000

500,000

Social security and other taxes

 

434,325

341,048

Outstanding defined contribution pension costs

 

17,219

18,666

Other creditors

 

104,235

216,934

Accrued expenses

 

258,565

201,533

Corporation tax

11

163,449

63,415

 

2,082,705

2,110,663

Due after one year

 

Loans and borrowings

19

501,620

574,849

18

Provisions for liabilities

Deferred tax
£

Total
£

At 1 October 2023

311,681

311,681

Additional provisions

24,249

24,249

At 30 September 2024

335,930

335,930

Deferred tax

Deferred tax assets and liabilities:

2024

Asset
£

Liability
£

Capital allowances in excess of depreciation

-

335,568

Short term timing differences

-

362

-

335,930

2023

Asset
£

Liability
£

Capital allowances in excess of depreciation

-

316,348

Short term timing differences

-

(4,667)

-

311,681

 

Sumac Precision Engineering Limited

Notes to the Financial Statements
for the Year Ended 30 September 2024

19

Loans and borrowings

Current loans and borrowings

2024
£

2023
£

Bank borrowings

24,174

38,306

Hire purchase contracts

227,151

184,724

Other borrowings

63,968

81,394

315,293

304,424

Non-current loans and borrowings

2024
£

2023
£

Bank borrowings

37,335

62,915

Hire purchase contracts

464,285

511,934

501,620

574,849

Bank borrowings

Bank loan 1 is denominated in GBP with a nominal interest rate of 4.43%, and the final instalment is due on 19 December 2023. The carrying amount at year end is £Nil (2023 - £15,384).

This bank loan was fully repaid in the year.

Bank loan 2 is denominated in GBP with a nominal interest rate of 2.9%, and the final instalment is due on 2 February 2027. The carrying amount at year end is £61,509 (2023 - £85,837).

The loan is secured with first legal charges over property owned by the Group by way of omnibus guarantee and set-off agreement as well as an unlimited debenture from Sumac Precision Engineering Limited.

Finance lease liabilities

Hire purchase contracts with a carrying amount of £691,436 (2023 - £696,658) has a nominal interest rate of 3% - 6%, and the final instalment is due on 26 April 2029.

The liabilities are secured on the plant and machinery assets to which the obligations relate.

 

Sumac Precision Engineering Limited

Notes to the Financial Statements
for the Year Ended 30 September 2024

20

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

31,110

11,952

Later than one year and not later than five years

35,713

18,221

66,823

30,173

The amount of non-cancellable operating lease payments recognised as an expense during the year was £29,460 (2023 - £14,457).

21

Dividends

Interim dividends paid

2024
£

2023
£

Interim dividend paid in the year

300,000

800,000

 

 

22

Analysis of changes in net debt

At 1 October 2023
£

Financing cash flows
£

At 30 September 2024
£

Cash and cash equivalents

Cash

1,427,265

1,334,145

2,761,410

Borrowings

Long term borrowings

(62,915)

25,880

(37,035)

Short term borrowings

(38,306)

14,132

(24,174)

Lease liabilities

(696,658)

5,222

(691,436)

(797,879)

45,234

(752,645)

 

629,386

1,379,379

2,008,765

23

Related party transactions

Summary of transactions with parent

The company has taken advantage of the exemption in FRS 102 paragraph 33.1A from disclosing transactions and balances with it's parent company on the grounds it is a wholly owned subsidiary.
 

 

Sumac Precision Engineering Limited

Notes to the Financial Statements
for the Year Ended 30 September 2024

Summary of transactions with other related parties

Total rent of £84,000 (2023 - £84,000) was paid during the year to three shareholders who jointly own the premises from which the company trades.

The company maintains loan accounts with its shareholders which pays interest at a rate of 5%. At the year end, £161,447 (2023: £288,015) was due to the shareholders, and interest was payable to them of £3.244 (2023: £6,799).

 

24

Parent and ultimate parent undertaking

The company's immediate parent is Sumac Manufacturing (Holdings) Limited, incorporated in England and Wales.

 The most senior parent entity producing publicly available financial statements is Sumac Manufacturing (Holdings) Limited. These financial statements are available upon request from Companies House, Crown Way, Cardiff, CF14 3UZ

 

25

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £79,141 (2023 - £77,038).

Contributions totalling £17,219 (2023 - £18,666) were payable to the scheme at the end of the year and are included in creditors.