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Registered number: 02669259









CAMBRIDGE PRECISION LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
CAMBRIDGE PRECISION LIMITED
 
 
COMPANY INFORMATION


DIRECTORS
Mr R H Hobbs 
Mr N M K Rata 
Mr M HH Hobbs 




COMPANY SECRETARY
Mr N M K Rata



REGISTERED NUMBER
02669259



REGISTERED OFFICE
Alington Road
Eynesbury

St Neots

Cambridgeshire

PE19 6YH




INDEPENDENT AUDITORS
PEM Audit Limited
Registered Auditors

Salisbury House

Station Road

Cambridge

CB1 2LA




BANKERS
Barclays
41 High Street

St Neots

Cambridgeshire

PE19 2RD





 
CAMBRIDGE PRECISION LIMITED
 

CONTENTS



Pages
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Statement of Comprehensive Income
 
9
Balance Sheet
 
10
Statement of Changes in Equity
 
11
Statement of Cash Flows
 
12 - 13
Notes to the Financial Statements
 
14 - 29


 
CAMBRIDGE PRECISION LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

INTRODUCTION
 
The directors present their Strategic Report and the financial statements for the year ended 31 December 2024.
PRINCIPAL ACTIVITY
The principal activity of the Company during the year remained the supply of precision engineered parts to critical technology sectors including med-tech, scientific instrumentation, aerospace, robotics and laboratory equipment.

BUSINESS REVIEW
 
2024 proved to be a challenging year for the Company, primarily due to a significant downturn in turnover and profitability. This was largely driven by a reduction in demand from our core customer base, many of whom experienced a 20% decline in their own turnover and responded by reducing stock levels and short-term purchasing.
Despite these headwinds, the Company maintained its gross profit margin at 28%, demonstrating operational resilience. However, EBITDA fell to £419k (2023: £1,187k), and the Company recorded a post-tax loss of £29k (2023: profit of £481k). Cash reserves also declined to £156k (2023: £658k), reflecting the impact of reduced trading activity and continued investment in operations.
Looking ahead, 2025 has started positively, with sustained increased demand from existing customers and the onboarding of a new client base. This has led to a significant uplift in turnover and profitability, positioning the Company for a strong recovery and future growth.

PRINCIPAL RISKS AND UNCERTAINTIES
 
The directors continue to monitor key risks and uncertainties. The principal risks and uncertainties monitored by the directors are:
Customer Retention and Satisfaction: Ensuring long-term partnerships through regular engagement and performance alignment.
Workforce Development: Attracting and retaining skilled personnel to support growth and innovation.
Operational Alignment: Maintaining strategic focus through regular management reviews and data-driven decision-making.

FINANCIAL KEY PERFORMANCE INDICATORS
 
The directors monitor a range of key performance indicators (KPIs) on a regular basis to manage the underlying trading businesses and enable operational management to react to new growth opportunities as well as respond to changes in the trading environment. The main KPIs monitored by the directors are:
• Turnover: £9,320k (2023 - £11,330k)
• Gross Profit Margin: 28% (2023 - 28%)
• EBITDA: £419k (2023 - £1,187k)
• Cash: £156k (2023 - £658k)

Page 1

 
CAMBRIDGE PRECISION LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

OTHER KEY PERFORMANCE INDICATORS
 
There are no other KPIs used by management.


This report was approved by the board and signed on its behalf.



Mr N M K Rata
Director

Date: 17 September 2025

Page 2

 
CAMBRIDGE PRECISION LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

The Directors present their report and the financial statements for the year ended 31 December 2024.

DIRECTORS' RESPONSIBILITIES STATEMENT

The Directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

RESULTS AND DIVIDENDS

The loss for the year, after taxation, amounted to £29,342 (2023 - profit £481,057).

No dividends have been paid or declared subsequent to the year end.

DIRECTORS

The Directors who served during the year were:

Mr R H Hobbs 
Mr N M K Rata 
Mr M HH Hobbs 

FUTURE DEVELOPMENTS

Following a difficult trading year in 2024, the outlook for 2025 is significantly more positive. The Company has seen a marked increase in demand from existing customers and has successfully introduced a new client base. This has resulted in a strong start to the year, with turnover and profitability showing substantial improvement. The directors remain confident in the Company’s strategic direction and growth prospects.

Page 3

 
CAMBRIDGE PRECISION LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

POST BALANCE SHEET EVENTS

There have been no significant events affecting the Company since the year end.

AUDITORS

Peters Elworthy and Moore transferred their audit registration and therefore part of their business to a newly incorporated company, PEM Audit Limited. Accordingly, Peters Elworthy and Moore ceased to hold office as the Company's auditor and PEM Audit Limited were appointed auditor in September 2025.
The auditors, PEM Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





Mr N M K Rata
Director

Date: 17 September 2025

Page 4

 
CAMBRIDGE PRECISION LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CAMBRIDGE PRECISION LIMITED
 

OPINION


We have audited the financial statements of Cambridge Precision Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 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 United Kingdom, including the Financial Reporting Council'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 Directors' 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 financial statements are 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.


Page 5

 
CAMBRIDGE PRECISION LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CAMBRIDGE PRECISION LIMITED (CONTINUED)


OTHER INFORMATION


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Directors are responsible for the other information contained within the Annual ReportOur 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.


OPINION 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 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.


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 set out on page 3, 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.


Page 6

 
CAMBRIDGE PRECISION LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CAMBRIDGE PRECISION LIMITED (CONTINUED)


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 an Auditors' 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:

We identified the laws and regulations applicable to the Company through discussions with management, and from our commercial knowledge and experience of the manufacturing sector;
 
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements, including FRS 102, the Companies Act 2006 and taxation legislation, or the operations of the Company including data protection, employment, health and safety and relevant ISO accreditations; 
we obtained an understanding of the Company’s policies and procedures on compliance with laws and regulations, including documentation of any instances of non-compliance;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and
identified laws and regulations were communicated within the audit engagement 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. 
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements. 
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of fraud through management bias and override of controls. In addressing the risk of fraud through management bias and override of controls we:
 
tested the appropriateness of journal entries and other adjustments;
designed procedures to identify unexpected and unusual journal entries and performed testing to confirm the validity of such postings;
assessed whether the accounting judgements made in the financial statements were indicative of potential bias; and
evaluated the business rationale of any significant transactions that were unusual or outside the normal course of business.

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; and
enquiring of management as to actual and potential litigation and claims.
Page 7

 
CAMBRIDGE PRECISION LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CAMBRIDGE PRECISION LIMITED (CONTINUED)


AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED)
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 Auditors' 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 2006Our 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 Auditors' 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.





Michael Hewett (Senior Statutory Auditor)
for and on behalf of
PEM Audit Limited
Registered Auditors
Salisbury House
Station Road
Cambridge
CB1 2LA

 
Date: 
17 September 2025
Page 8

 
CAMBRIDGE PRECISION LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Notes
£
£

  

Turnover
 3 
9,319,519
11,330,247

Cost of sales
  
(6,712,525)
(8,171,529)

GROSS PROFIT
  
2,606,994
3,158,718

Administrative expenses
  
(2,583,850)
(2,461,484)

OPERATING PROFIT
  
23,144
697,234

Interest receivable and similar income
 7 
4,285
1,152

Interest payable and similar expenses
 8 
(46,721)
(60,237)

(LOSS)/PROFIT BEFORE TAX
  
(19,292)
638,149

Tax on (loss)/profit
 9 
(10,050)
(157,092)

(LOSS)/PROFIT FOR THE FINANCIAL YEAR
  
(29,342)
481,057

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023: £NIL).

The notes on pages 14 to 29 form part of these financial statements.

Page 9

 
CAMBRIDGE PRECISION LIMITED
REGISTERED NUMBER: 02669259

BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Notes
£
£

FIXED ASSETS
  

Tangible assets
 11 
1,648,152
1,968,869

  
1,648,152
1,968,869

CURRENT ASSETS
  

Stocks
 13 
1,795,492
1,614,809

Debtors
 14 
2,435,975
2,604,681

Cash at bank and in hand
 15 
156,151
658,341

  
4,387,618
4,877,831

Creditors: amounts falling due within one year
 16 
(1,622,490)
(1,573,700)

NET CURRENT ASSETS
  
 
 
2,765,128
 
 
3,304,131

TOTAL ASSETS LESS CURRENT LIABILITIES
  
4,413,280
5,273,000

Creditors: amounts falling due after more than one year
 17 
(465,236)
(834,792)

PROVISIONS FOR LIABILITIES
  

Deferred tax
 20 
(348,578)
(409,400)

NET ASSETS
  
3,599,466
4,028,808


CAPITAL AND RESERVES
  

Called up share capital 
 21 
100
100

Profit and loss account
 22 
3,599,366
4,028,708

SHAREHOLDERS' FUNDS
  
3,599,466
4,028,808


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Mr N M K Rata
Director

Date: 17 September 2025

The notes on pages 14 to 29 form part of these financial statements.

Page 10

 
CAMBRIDGE PRECISION LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Profit and loss account
Total
equity

£
£
£


At 1 January 2023
100
3,947,651
3,947,751


COMPREHENSIVE INCOME FOR THE YEAR

Profit for the year
-
481,057
481,057
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
-
481,057
481,057


CONTRIBUTIONS BY AND DISTRIBUTIONS TO OWNERS

Dividends declared
-
(400,000)
(400,000)


TOTAL TRANSACTIONS WITH OWNERS
-
(400,000)
(400,000)



At 1 January 2024
100
4,028,708
4,028,808


COMPREHENSIVE INCOME FOR THE YEAR

Loss for the year
-
(29,342)
(29,342)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
-
(29,342)
(29,342)


CONTRIBUTIONS BY AND DISTRIBUTIONS TO OWNERS

Dividends declared
-
(400,000)
(400,000)


TOTAL TRANSACTIONS WITH OWNERS
-
(400,000)
(400,000)


AT 31 DECEMBER 2024
100
3,599,366
3,599,466


The notes on pages 14 to 29 form part of these financial statements.

Page 11

 
CAMBRIDGE PRECISION LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
£
£

CASH FLOWS FROM OPERATING ACTIVITIES

Profit for the year
(29,342)
481,057

ADJUSTMENTS FOR:

Depreciation of tangible assets
396,004
489,996

Interest paid
46,721
60,237

Interest received
(4,285)
(1,152)

Taxation charge
10,050
157,092

(Increase)/decrease in stocks
(180,683)
482,351

Decrease in debtors
168,706
9,225

Increase/(decrease) in creditors
6,966
(173,080)

Corporation tax (paid)/received
(178,461)
5,744

NET CASH GENERATED FROM OPERATING ACTIVITIES

235,676
1,511,470


CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of tangible fixed assets
(27,336)
(53,976)

Sale of tangible fixed assets
5,199
-

Interest received
4,285
1,152

HP interest paid
(37,324)
(38,569)

NET CASH FROM INVESTING ACTIVITIES

(55,176)
(91,393)
Page 12

 
CAMBRIDGE PRECISION LIMITED
 

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024


2024
2023

£
£



CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of loans
(50,000)
(50,000)

Repayment of finance leases
(368,725)
(429,060)

Dividends paid
(400,000)
(400,000)

Interest paid
(9,397)
(21,668)

NET CASH USED IN FINANCING ACTIVITIES
(828,122)
(900,728)

(DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS
(647,622)
519,349

Cash and cash equivalents at beginning of year
658,341
138,992

CASH AND CASH EQUIVALENTS AT THE END OF YEAR
10,719
658,341


CASH AND CASH EQUIVALENTS AT THE END OF YEAR COMPRISE:

Cash at bank and in hand
156,151
658,341

Bank overdrafts
(145,432)
-

10,719
658,341


The notes on pages 14 to 29 form part of these financial statements.

Page 13

 
CAMBRIDGE PRECISION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


GENERAL INFORMATION

Cambridge Precision Limited (the "Company") is a private company limited by shares and incorporated in England & Wales. Its registered office is Alington Road, Eynesbury, St Neots, Cambridgeshire, PE19 6YH.

2.ACCOUNTING POLICIES

 
2.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies.

The following principal accounting policies have been applied:

 
2.2

GOING CONCERN

The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. In making this assessment the directors have considered the Company’s financial resources at the time of approving the financial statements, as well as budgets which have been prepared.
The Company continues to perform strongly in the post year end period, despite the ongoing turbulent socio-economic environment, which demonstrates the resilience of the business in uncertain times and the directors remain positive regarding future prospects.
Given the Company’s strong Balance Sheet, combined with the nature of its activities, the directors believe the Company is well placed to manage its business risks successfully in the current economic climate and remain comfortable with the going concern assessment.

 
2.3

FOREIGN CURRENCY TRANSLATION

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Page 14

 
CAMBRIDGE PRECISION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.ACCOUNTING POLICIES (CONTINUED)

 
2.4

TURNOVER

Turnover comprises revenue recognised by the Company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.
Revenue from goods and services supplied by the Company is recognised when the Company has performed its obligations and in exchange obtained the right to consideration.

 
2.5

INTEREST RECEIVABLE

Interest receivable is recognised in the Profit and Loss Account using the effective interest method.

 
2.6

INTEREST PAYABLE

Interest payable is charged to the Profit and Loss Account over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount.

 
2.7

PENSIONS

DEFINED CONTRIBUTION PENSION PLAN

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 payment obligations.

The contributions are recognised as an expense in profit or loss 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.

Page 15

 
CAMBRIDGE PRECISION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.ACCOUNTING POLICIES (CONTINUED)

 
2.8

CURRENT AND DEFERRED TAXATION

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.9

TANGIBLE FIXED ASSETS

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. 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 by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property
-
Over the term of the lease
Plant and machinery
-
10 / 15% straight line
Motor vehicles
-
20% straight line
Fixtures and fittings
-
15 / 33% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 16

 
CAMBRIDGE PRECISION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.ACCOUNTING POLICIES (CONTINUED)

 
2.10

VALUATION OF INVESTMENTS

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.11

STOCKS

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet 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.

 
2.12

DEBTORS

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.13

CASH AND CASH EQUIVALENTS

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.14

CREDITORS

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.15

PROVISIONS FOR LIABILITIES

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 17

 
CAMBRIDGE PRECISION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.ACCOUNTING POLICIES (CONTINUED)

 
2.16

FINANCIAL INSTRUMENTS

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Basic 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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

The company has taken advantage of the exemption, under FRS 102, of the requirements of Section 11 Financial Instruments paragraphs 11.41 and 11.48.

 
2.17

DIVIDENDS

Equity dividends are recognised when they become legally payable.

Page 18

 
CAMBRIDGE PRECISION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

3.


TURNOVER

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Sale of goods and services
9,229,648
11,227,883

Sale of scrap
89,871
92,874

Miscellaneous income
-
9,490

9,319,519
11,330,247


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
6,682,968
7,708,354

Rest of Europe
2,329,934
3,255,674

Rest of the world
306,617
366,219

9,319,519
11,330,247



4.


AUDITORS' REMUNERATION

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors in respect of:
Audit of the Company's financial statements
13,975
13,050

Preparation of the Copmany's financial statements
3,375
3,150

Tax compliance and other fees
2,350
5,260
Page 19

 
CAMBRIDGE PRECISION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

5.


EMPLOYEES

Staff costs, including Directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
3,171,425
3,239,641

Social security costs
339,796
341,616

Cost of defined contribution scheme
110,210
105,352

3,621,431
3,686,609


The average monthly number of employees, including directors, during the year was 89 (2023 - 92).


6.


DIRECTORS' REMUNERATION

2024
2023
£
£

Directors' emoluments
48,637
57,240

48,637
57,240



7.


INTEREST RECEIVABLE

2024
2023
£
£


Bank interest receivable
4,285
1,152

4,285
1,152


8.


INTEREST PAYABLE AND SIMILAR EXPENSES

2024
2023
£
£


Bank interest payable
9,397
21,668

Hire purchase interest payable
37,324
38,569

46,721
60,237

Page 20

 
CAMBRIDGE PRECISION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

9.


TAXATION


2024
2023
£
£

CORPORATION TAX


Adjustments in respect of previous periods
70,872
143,949


70,872
143,949


TOTAL CURRENT TAX
70,872
143,949

DEFERRED TAX


Origination and reversal of timing differences
(60,822)
13,143

TOTAL DEFERRED TAX
(60,822)
13,143


10,050
157,092

FACTORS AFFECTING TAX CHARGE FOR THE YEAR

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 23.52%). The differences are explained below:

2024
2023
£
£


(Loss)/profit on ordinary activities before tax
(19,292)
638,149


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%)
(4,823)
150,096

EFFECTS OF:


Expenses not deductible for tax purposes
4,027
6,688

Depreciation for year in excess of capital allowances
71,817
29,396

Other short term timing differences
(149)
219

Tax losses utilised
-
(42,450)

Deferred tax charge
(60,822)
13,143

TOTAL TAX CHARGE FOR THE YEAR
10,050
157,092


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

There were no factors that may affect future tax charges.

Page 21

 
CAMBRIDGE PRECISION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

10.


DIVIDENDS

2024
2023
£
£


Dividends paid
400,000
400,000

400,000
400,000


11.


TANGIBLE FIXED ASSETS





Long-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



COST


At 1 January 2024
282,675
5,243,202
127,548
186,703
5,840,128


Additions
-
80,486
-
-
80,486


Disposals
-
-
(5,199)
-
(5,199)



At 31 December 2024

282,675
5,323,688
122,349
186,703
5,915,415



DEPRECIATION


At 1 January 2024
114,112
3,496,872
81,492
178,783
3,871,259


Charge for the year on owned assets
32,090
72,732
-
5,404
110,226


Charge for the year on financed assets
-
269,473
16,305
-
285,778



At 31 December 2024

146,202
3,839,077
97,797
184,187
4,267,263



NET BOOK VALUE



At 31 December 2024
136,473
1,484,611
24,552
2,516
1,648,152



At 31 December 2023
168,563
1,746,330
46,056
7,920
1,968,869

Page 22

 
CAMBRIDGE PRECISION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

           11.TANGIBLE FIXED ASSETS (CONTINUED)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Plant and machinery
1,150,387
1,366,709

Motor vehicles
28,822
45,126

1,179,209
1,411,835


12.


FIXED ASSET INVESTMENTS





Unlisted investments

£



COST


At 1 January 2024
17,371



At 31 December 2024

17,371



IMPAIRMENT


At 1 January 2024
17,371



At 31 December 2024

17,371



NET BOOK VALUE



At 31 December 2024
-



At 31 December 2023
-

Page 23

 
CAMBRIDGE PRECISION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

13.


STOCKS

2024
2023
£
£

Raw materials and consumables
516,916
473,370

Work in progress (goods to be sold)
828,317
666,575

Finished goods and goods for resale
450,259
474,864

1,795,492
1,614,809



14.


DEBTORS

2024
2023
£
£

DUE AFTER MORE THAN ONE YEAR

Other debtors
38,127
38,127

38,127
38,127

DUE WITHIN ONE YEAR

Trade debtors
980,082
1,085,360

Other debtors
1,286,587
1,382,401

Prepayments and accrued income
131,179
98,793

2,435,975
2,604,681


Included within other debtors due within one year are loans to 2 directors (2023 - 2), amounting to £947,130 (2023 - £907,890). Amounts advanced during the year totalled £239,240 (2023 - £302,257). Amounts repaid during the year totalled £200,000. The loans have no fixed repayment date and no interest has been charged on the loan.


15.


CASH AND CASH EQUIVALENTS

2024
2023
£
£

Cash at bank and in hand
156,151
658,341

Less: bank overdrafts
(145,432)
-

10,719
658,341


Page 24

 
CAMBRIDGE PRECISION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

16.


CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024
2023
£
£

Bank overdrafts
145,432
-

Bank loans
50,000
50,000

Trade creditors
673,325
601,185

Corporation tax
70,872
178,461

Other taxation and social security
179,148
239,928

Obligations under finance lease and hire purchase contracts
354,267
350,286

Other creditors
74,405
81,457

Accruals and deferred income
75,041
72,383

1,622,490
1,573,700


Included within other creditors due within one year are loans from 1 director (2023 - 1), amounting to £7,120 (2023 - £34,060). The loans have no fixed repayment date and no interest has been charged on the loan.
Bank loans of £50,000 outstanding at 31 December 2024 (2023 - £50,000) represent the Company's first loan taken out under the terms of the Government's Coronavirus Business Interruption Loan Scheme (CBILS) and are unsecured. Interest is charged at 2.99%. The loan is repayable in equal monthly instalments of £4,167 until July 2026. 
Finance leases are secured against the assets concerned.


17.


CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024
2023
£
£

Bank loans
29,167
79,167

Net obligations under finance leases and hire purchase contracts
436,069
755,625

465,236
834,792


Bank loans of £29,167 outstanding at 31 December 2024 (2023 - £79,167) represent the Company's first loan taken out under the terms of the Government's Coronavirus Business Interruption Loan Scheme (CBILS) and are unsecured. Interest is charged at 2.99%. The loan is repayable in equal monthly instalments of £4,167 until July 2026. 
Finance leases are secured against the assets concerned.

Page 25

 
CAMBRIDGE PRECISION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

18.


LOANS


Analysis of the maturity of loans is given below:


2024
2023
£
£

AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans
50,000
50,000

AMOUNTS FALLING DUE 1-2 YEARS

Bank loans
29,167
50,000

AMOUNTS FALLING DUE 2-5 YEARS

Bank loans
-
29,167


79,167
129,167



19.


HIRE PURCHASE AND FINANCE LEASES


Minimum lease payments under hire purchase fall due as follows:

2024
2023
£
£


Within one year
354,267
350,286

Between 1-2 years
296,492
345,777

Between 2-5 years
139,577
409,848

790,336
1,105,911

Page 26

 
CAMBRIDGE PRECISION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

20.


DEFERRED TAXATION




2024
2023


£

£






At beginning of year
(409,400)
(396,257)


Charged to profit or loss
60,822
(13,143)



AT END OF YEAR
(348,578)
(409,400)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
348,578
409,400

348,578
409,400


21.


SHARE CAPITAL

2024
2023
£
£
ALLOTTED, CALLED UP AND FULLY PAID



100 (2023 - 100) Ordinary shares of £1.00 each
100
100



22.


RESERVES

Profit and loss account

This reserve includes all current and prior period retained profits and losses, less dividends paid.

Page 27

 
CAMBRIDGE PRECISION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
23.


ANALYSIS OF NET DEBT






At 1 January 2024
Cash flows
New finance leases
Other non-cash changes
At 31 December 2024
£

£

£

£

£

Cash at bank and in hand

658,341

(502,190)

-

-

156,151

Bank overdrafts

-

(145,432)

-

-

(145,432)

Debt due after 1 year

(79,167)

-

-

50,000

(29,167)

Debt due within 1 year

(84,620)

77,500

-

(50,000)

(57,120)

Finance leases

(1,105,911)

368,725

(53,150)

-

(790,336)



(611,357)
(201,397)
(53,150)
-
(865,904)


24.


PENSION COMMITMENTS

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £110,210 (2023 - £105,352). Contributions totalling £16,858 (2023 - £18,102) were payable to the fund at the balance sheet date and are included in other creditors.


25.


COMMITMENTS UNDER OPERATING LEASES

At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
274,219
281,694

Later than 1 year and not later than 5 years
870,084
949,083

Later than 5 years
214,000
387,000

1,358,303
1,617,777

Page 28

 
CAMBRIDGE PRECISION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

26.


RELATED PARTY TRANSACTIONS

The Directors consider themselves to be the Key Management Personnel of the Company. Key Management Personnel remuneration is therefore disclosed in note 6. 
Loans with Directors are disclosed in notes 14 and 16.
Included with trade debtors are balances with Cambridge Research & Development Ltd, a Company owned by one of the Directors. At 31 December 2024 the balance amounted to £NIL (2023: £150,078). A provision of £NIL (2023: £150,078) has been made against this balance. This balance has been fully written off in the current year.
Included with trade and other debtors are balances with Gallyon Gun and Rifle Makers Ltd, a Company owned by one of the Directors. At 31 December 2024 the balance amounted to £534,300 (2023: £469,128). A provision of £400,000 (2023: £200,000) has been made against this balance. 
There are no other related party transactions. 

 
Page 29