REGISTERED NUMBER: 06291131 (England and Wales)

Report of the Directors and

Financial Statements for the Year Ended 31 December 2024

for

Precision Components Limited

Page

Company Information

1

Report of the Directors

2

Statement of Directors' Responsibilities

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

8

Statement of Financial Position

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11

DIRECTORS:

C S Carr

L J Neary

REGISTERED OFFICE:

Holroyd Harbour Lane North

Milnrow

Rochdale

Lancashire

OL16 3LQ

REGISTERED NUMBER:

06291131 (England and Wales)

AUDITORS:

Shinewing Wilson Accountancy Limited

Chartered Certified Accountants

and Statutory Auditors

9 St Clare Street

London

EC3N 1LQ

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

DIRECTORS

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

C S Carr

L J Neary

DIRECTORS' INDEMNITIES

The Company has made qualifying third party indemnity provisions for the benefit of its directors, which were made during the year and remain in force at the date of this report. In accordance with its Articles, the Company has granted a qualifying third party indemnity, to the extent permitted by law, to each Director. The Company also maintains Directors' and Officers' liability insurance.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Shinewing Wilson Accountancy Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

L J Neary - Director

4 September 2025

The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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.

Opinion

We have audited the financial statements of Precision Components Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Statement of Financial Position, 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 101 'Reduced Disclosure Framework' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its loss for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material Uncertainty Relating to Going Concern

We draw attention to Note 2 in the financial statements, which indicates that the company incurred a loss of £83k for the year ended 2024 and, as of that date, the company was in a net current liabilities position of £3.88m and net liabilities of £2.59m. As stated in Note 2, these events or conditions, along with other matters as set forth in Note 2, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Report of the Directors and the Statement of Directors' Responsibilities, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit; or

-	the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements.

During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:

- Those laws and regulations considered to have a direct effect on the financial statements include FRS101 financial reporting standards, Company Law, Tax and Pensions legislation.

- It is considered that the laws and regulations for which non-compliance may be fundamental to the operating aspects of the business include ISO9001 and health and safety.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Nijendra Dhungana FCCA (Senior Statutory Auditor)

for and on behalf of Shinewing Wilson Accountancy Limited

Chartered Certified Accountants

and Statutory Auditors

9 St Clare Street

London

EC3N 1LQ

4 September 2025

TURNOVER

4

4,364,066

3,949,263

Cost of sales

2,593,110

2,588,765

GROSS PROFIT

1,770,956

1,360,498

Administrative expenses

1,857,243

2,140,212

(86,287

)

(779,714

)

Other operating income

73,387

56,663

OPERATING LOSS

(12,900

)

(723,051

)

Interest payable and similar expenses

7

9,151

21,441

LOSS BEFORE TAXATION

8

(22,051

)

(744,492

)

Tax on loss

9

61,122

-

LOSS FOR THE FINANCIAL YEAR

(83,173

)

(744,492

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(83,173

)

(744,492

)

FIXED ASSETS

Tangible assets

10

1,720,458

2,031,465

CURRENT ASSETS

Stocks

11

603,938

612,143

Debtors

12

2,303,009

3,152,476

Cash at bank

4,417,384

2,924,132

7,324,331

6,688,751

CREDITORS

Amounts falling due within one year

13

11,206,290

10,794,477

NET CURRENT LIABILITIES

(3,881,959

)

(4,105,726

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(2,161,501

)

(2,074,261

)

CREDITORS

Amounts falling due after more than one year

14

(208,616

)

(274,619

)

PROVISIONS FOR LIABILITIES

17

(218,804

)

(156,868

)

NET LIABILITIES

(2,588,921

)

(2,505,748

)

CAPITAL AND RESERVES

Called up share capital

18

1

1

Retained earnings

(2,588,922

)

(2,505,749

)

SHAREHOLDERS' FUNDS

(2,588,921

)

(2,505,748

)

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

The financial statements were approved by the Board of Directors and authorised for issue on 4 September 2025 and were signed on its behalf by:

L J Neary - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

1

(1,761,257

)

(1,761,256

)

Changes in equity

Total comprehensive income

-

(744,492

)

(744,492

)

Balance at 31 December 2023

1

(2,505,749

)

(2,505,748

)

Changes in equity

Total comprehensive income

-

(83,173

)

(83,173

)

Balance at 31 December 2024

1

(2,588,922

)

(2,588,921

)

1.	STATUTORY INFORMATION

Precision Components Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparation

These financial statements have been prepared in accordance with Financial Reporting Standard 101 "Reduced Disclosure Framework" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 101 "Reduced Disclosure Framework":

•

the requirements of IFRS 7 Financial Instruments: Disclosures;

•

the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases;

the requirements of paragraph 58 of IFRS 16;

•

the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers;

•

the requirement in paragraph 38 of IAS 1 Presentation of Financial Statements to present comparative information in respect of:

-

paragraphs 53(a), (h) and (j) of IFRS 16; and

-

paragraph 73(e) of IAS 16 Property, Plant and Equipment;

•

the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134 to 136 of IAS 1;

•

the requirements of

-

paragraphs 1 to 44E, 44H(b)(ii) and 45 to 63 of IAS 7 Statement of Cash Flows; and

-

paragraphs 44F, 44G, 44H(a), 44H(b)(i), 44H(b)(iii) and 44H(c) of IAS 7;

•

the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors;

•

the requirements of paragraphs 88C and 88D of IAS 12 Income Taxes;

•

the requirements of paragraph 74(b) of IAS 16;

•

the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group;

Going concern

The company reported a loss of £83k for the year ended 2024 and was in a net current liabilities position of £3.88m and net liabilities of £2.59m. The company meets its working capital needs through cash reserves and bank facilities. The HSBC loan facility was renewed on 16 June 2025 for a further 12 months, supported by collateral provided by the ultimate parent, CQME.

Although the directors expect the facility to be renewed again based on past experience and the collateral arrangements, no formal support letter has been obtained and the company remains reliant on the renewal of these facilities. As the next renewal falls within 12 months of the approval of these financial statements, a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern.

Nevertheless, the directors believe it remains appropriate to prepare the financial statements on a going concern basis.

New standards, amendments, IFRIC interpretations and new relevant disclosure requirements

There are no amendments to accounting standards, or IFRIC interpretations that are effective for the year ended 31 December 2024 that have a material impact on the company’s financial statements.

Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable, and represents amounts receivable for goods supplied, stated net of discounts, returns and value added taxes. The company recognises revenue when performance obligations have been satisfied and for the company this is when the goods or services have transferred to the customer and the customer has control of these. The company bases its estimate of return on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.

Revenue for spares is recognised in the month that the service or the shipment is performed.

Tangible fixed assets

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended.

Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment.

Right-of-use assets

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term.

The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low value assets.

Depreciation

Depreciation is provided to write-off the cost, less estimated residual values, of all property, plant and equipment on a straight line basis over their expected useful economic lives. It is calculated at the following annual return rates.

- Plant and machinery - 3 to 10 years

- Fixtures and fittings - 3 to 7 years

- Right of use assets - over the lease period

- Assets Under Construction - not depreciated

Depreciation methods, useful lives and residual values are reviewed at each balance sheet date.

Financial instruments

Financial assets

The company's financial assets measured at amortised cost comprise trade and other debtors and cash and cash equivalents in the balance sheet. Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less, and - for the purpose of the statement of cash flows - bank overdrafts. Bank overdrafts are shown within 'Creditors: amounts falling due within one year' financial liabilities on the balance sheet.

Financial liabilities

Bank borrowings are initially recognised at fair value net of any transaction costs directly attributable to the issue of the instrument. Such interest bearing liabilities are subsequently measured at amortised cost using the effective interest rate method, which ensures that any interest expense over the period to repayment is at a constant rate on the balance of the liability carried in the balance sheet. Interest expense in this context includes initial transaction costs and premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Trade creditors and other short-term monetary liabilities, which are initially recognised at fair value and are subsequently carried at amortised cost using the effective interest method.

Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously.

Share capital

Financial instruments issued by the company are classified as equity only to the extent that they do not meet the definition of a financial liability or financial asset.

The company's ordinary shares are classified as equity instruments.

Interest expense

Interest expense is recognised using the effective interest rate method. In calculating interest expense, the effective interest rate is applied to the gross carrying amount of the asset, when the asset is not impaired or to the amortised cost of the liability for interest expense. For financial assets that have been impaired after initial recognition.

Stocks

Stocks are stated at the lower of cost and net realisable value. Cost is determined using the weighted average model. The cost of finished goods and work in progress comprises design costs, raw materials, direct labour, other direct costs and related production overheads (based on normal operating capacity). It excludes borrowing costs. Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses.

At each reporting date, stocks are assessed for impairment. If stock is 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.

Taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

The current tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the company operates and generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities.

Deferred tax is recognised in respect of all taxable temporary differences that have originated but not reversed at the statement of financial position date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax, with the following exceptions:

Provision is made for tax on gains arising from the revaluation (and similar fair value adjustments) of non-current assets, and gains on disposal of non-current assets that have been rolled over into replacement assets, only to the extent that, at the statement of financial position date, there is a binding agreement to dispose of the assets concerned. However, no provision is made where, on the basis of all available evidence at the statement of financial position date, it is more likely than not that the taxable gain will be rolled over into replacement assets and charged to tax only where the replacement assets are sold.

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the statement of financial position date.

Foreign currencies

Transactions entered into by the company in a currency other than the functional currency are recorded at the rates ruling when the transactions occur. Foreign currency monetary assets and liabilities are translated at the rates ruling at the reporting date. Exchange differences arising on the retranslation of unsettled monetary assets and liabilities are recognised immediately in profit or loss.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in profit or loss within ‘finance income or costs’. All other foreign exchange gains and losses are presented in profit or loss within ‘other operating income or expense’.

Employee benefit costs

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate.

Leases

The company accounts for a contract as a lease when it conveys the right to use an asset for a period of time in exchange for consideration. Leases are those contracts that satisfy the following criteria:

(a) There is an identified asset;

(b) The company obtains substantially all the economic benefits from use of the asset; and

(c) The company has the right to direct use of the asset.

All leases are accounted for by recognising a right-of-use asset and a lease liability except for Leases of low value assets and Leases with a duration of 12 months or less.

Lease Measurement

Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by reference to the rate inherent in the lease unless (as is typically the case) this is not readily determinable, in which case the company's incremental borrowing rate on commencement of the lease is used. Variable lease payments are only included in the measurement of the lease liability if they depend on an index or rate. In such cases, the initial measurement of the lease liability assumes the variable element will remain unchanged throughout the lease term. Other variable lease payments are expensed in the period to which they relate. Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made.

Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made.

Information about critical accounting judgements in the application of lease accounting is disclosed in note 3.

Warranty provisions

A provision is recognised in the balance sheet when the company has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects risks specific to the liability.

Provisions for warranty costs are based upon specific liabilities expected to arise and are accrued throughout the life of each relevant contract. Warranty costs incurred are then charged against the provision.

Exceptional items

Exceptional items are disclosed separately in the financial statements where it is necessary to do so to provide further understanding of the financial performance of the company. They are items that are material either because of their size or their nature, or that are nonrecurring are considered as exceptional items and are presented within the line items to which they best relate.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The company makes certain estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions. The company has not made any significant judgements when applying the accounting policies.

Lease

The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the company, the lessee's incremental borrowing rate is used, being the rate that the company would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.

To determine the incremental borrowing rate, the company uses recent third-party financing received as a starting point, adjusted to reflect changes in financing conditions since third party financing was received. The company used incremental borrowing rates of 2.6% to all the leases. Lease liability has been included in note 16.

5.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£

£

Wages and salaries

1,157,542

1,153,937

Social security costs

203,452

186,534

Other pension costs

91,914

88,668

1,452,908

1,429,139

The average number of employees during the year was as follows:

31.12.24

31.12.23

Production

22

24

Administration

14

16

36

40

31.12.24

31.12.23

£

£

Directors' remuneration

59,709

94,941

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

Money purchase schemes

2

2

6.	EXCEPTIONAL ITEMS

31.12.24

31.12.23

£

£

Exceptional items

289,645

25,731

During the year, the company received a waiver for amounts owed to group undertakings of £371,398 (2023: £83,737), as well as agreeing to waive amounts owed by group undertakings of £661,044 (2023: £58,006). this resulted in a loss of £289,645 (2023: £25,731).

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.24

31.12.23

£

£

Bank interest

9,151

21,441

8.	LOSS BEFORE TAXATION

The loss before taxation is stated after charging/(crediting):

31.12.24

31.12.23

£

£

Cost of inventories recognised as expense

2,593,110

2,588,765

Depreciation - owned assets

296,781

278,730

Auditors' remuneration

18,000

18,000

Foreign exchange differences

(99,209

)

(83,999

)

9.

TAXATION

Analysis of tax expense

31.12.24

31.12.23

£

£

Deferred tax

61,122

-

Total tax expense in statement of comprehensive income

61,122

-

Factors affecting the tax expense

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.24

31.12.23

£

£

Loss before income tax

(22,051

)

(744,492

)

Loss multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 19%)

(5,513

)

(141,453

)

Effects of:

Non-deductible expenses

-

54,127

Capital allowances in excess of depreciation

(15,363

)

(20,068

)

Exceptional items-intercompany waiver

(130,392

)

-

Deferred tax liability provided

61,122

-

Deferred tax assets not provided

151,268

107,394

Tax expense

61,122

-

In the Spring Budget 2021, the UK Government announced that from 1 April 2023 the corporation tax rate would increase to 25% (rather than remaining at 19%, as previously enacted). This new law was substantively enacted on 24 May 2021.Businesses with profits of less than £50,000 will continue to be taxed at 19%.

Unused loss carry forwards for which no deferred tax assets have been recognised in the balance sheets:

31.12.24

31.12.23

£

£

Losses carried forward

2,958,618

2,353,552

10.	TANGIBLE FIXED ASSETS

Fixtures

Right-of-use

Plant and

and

assets

machinery

fittings

Totals

£

£

£

£

COST

At 1 January 2024

801,586

3,768,038

254,215

4,823,839

Disposals

-

(14,226

)

-

(14,226

)

Transfer to ownership

(165,000

)

165,000

-

-

At 31 December 2024

636,586

3,918,812

254,215

4,809,613

DEPRECIATION

At 1 January 2024

365,043

2,177,794

249,537

2,792,374

Charge for year

63,658

230,464

2,659

296,781

At 31 December 2024

428,701

2,408,258

252,196

3,089,155

NET BOOK VALUE

At 31 December 2024

207,885

1,510,554

2,019

1,720,458

At 31 December 2023

436,543

1,590,244

4,678

2,031,465

Included within plant and machinery are assets under construction of £287,420 as at 31 December 2024 (2023: £580,365).

Right-of-use assets

The net book value and depreciation charge for right-of-use assets by class of underlying asset is as follows:

31.12.24

31.12.23

£

£

Net book value:

Land and buildings

254,634

318,293

Plant and machinery

-

118,250

254,634

436,543

Depreciation charge:

Land and buildings

63,659

63,659

Plant and machinery

-

16,500

63,659

80,159

11.

STOCKS

31.12.24

31.12.23

£

£

Stocks

603,938

612,143

The current replacement cost of inventories does not materially exceed the historical costs stated above.

Inventories are stated after provisions for impairment of £62,314 (2023: £62,314).

12.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.24

31.12.23

£

£

Trade debtors

894,195

765,516

Amounts owed by group undertakings

1,255,129

2,270,969

Other debtors

153,685

115,991

2,303,009

3,152,476

Amounts owed by group undertakings are unsecured, carry no fixed interest charge and are repayable on demand. During the year, the company waived certain amounts owed by group undertaking, see note 6.

13.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.24

31.12.23

£

£

Other loans (see note 15)

9,933,097

8,987,855

Leases (see note 15)

66,004

67,116

Trade creditors

787,320

249,400

Amounts owed to group undertakings

155,638

967,556

Social security and other taxes

35,675

37,681

Other creditors

228,556

484,869

11,206,290

10,794,477

Amounts owe to group undertakings are unsecured, carry no fixed interest charge and are repayable on demand. During the year, the company agreed to waive certain amounts owed to group undertakings, see note 6.

The bank overdraft is secured under a debenture and multilateral guaranteed referred to in note 15 and 20.

14.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.24

31.12.23

£

£

Leases (see note 15)

208,616

274,619

15.

FINANCIAL LIABILITIES - BORROWINGS

31.12.24

31.12.23

£

£

Current:

Bank overdrafts

9,933,097

8,987,855

Leases (see note 16)

66,004

67,116

9,999,101

9,054,971

Non-current:

Leases (see note 16)

208,616

274,619