Neil Brown Engineering Limited

	Page
Abridged Balance Sheet	1—2
Notes to the Abridged Financial Statements	3—6

1. General Information

Neil Brown Engineering Limited is a private company, limited by shares, incorporated in England & Wales, registered number 01420041 . The registered office is Benner Road, Wardentree Lane Industrial Estate, Spalding, Lincolnshire, PE11 3TZ.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention and in accordance with FRS 102 Section 1A Small Entities - The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006.

The director feels there are no areas where significant judgements or estimates have been made which could materially effect the financial statements. It also requires management to exercise judgement in applying the accounting policies.

The following principal accounting policies have been applied.

2.2. Turnover

The turnover shown in the profit and loss account represents amounts invoiced during the year for sale and lease of engines, exclusive of Value Added Tax. Sales of engines are recognised at the point of delivery of the engine. For assets leased on operating leases, the rate is reviewed annually. Each engine is rented for the duration of the national championship season only and the income is recognised in the statement of comprehensive income in the period in which it relates.

2.3. Intangible Fixed Assets and Amortisation - Goodwill

Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the separable net assets. It is amortised to the profit and loss account over its estimated economic life of 10 years.

2.4. Research and Development

Development costs are capitalised within intangible assets where they can be identified with a specific product or project anticipated to produce future benefits, and are amortised on the straight line basis over the anticipated life of the benefits arising from the completed product or project.

Deferred research and development costs are reviewed annually, and where future benefits are deemed to have ceased or be in doubt, the balance of any related research and development is written off to the statement of comprehensive income.

2.5. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Leasehold	10% straight line
Plant & Machinery	20% straight line
Motor Vehicles	25% straight line
Fixtures & Fittings	25% 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 the statement of comprehensive income.

2.6. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

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Neil Brown Engineering Limited

Notes to the Abridged Financial Statements (continued)

For The Year Ended 31 December 2024

2.7. Financial Instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment or a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

2.8. Foreign Currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange gains and losses are recognies in the statement of comprehensive income.

2.9. Taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the statement of comprehensive income, 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 reporting date in the coutnies 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 statement of financial position date, except that:

The recognitiion 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 is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

2.10. Pensions

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 contributiuons are recognised as an expense in the statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the statement of financial position. The assets of the plan are held separately from the company in independently administered funds.

2.11.

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.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with 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 know amounts of cash with insignifcant risk of change in value.

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.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividens are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable.

...CONTINUED

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Neil Brown Engineering Limited

Notes to the Abridged Financial Statements (continued)

For The Year Ended 31 December 2024

2.11. - continued

Operating leases: the company as lessee

Rentals paid under operating leases are charged to the statement of comprehensive income on a straight line basis over the lease term.

3. Average Number of Employees

Average number of employees, including directors, during the year was 16 (2023: 15)

4. Intangible Assets

	Total
	£
Cost
As at 1 January 2024	60,758

As at 31 December 2024	60,758

Amortisation
As at 1 January 2024	36,456
Provided during the period	6,076

As at 31 December 2024	42,532

Net Book Value
As at 31 December 2024	18,226

As at 1 January 2024	24,302

5. Tangible Assets

	Total
	£
Cost
As at 1 January 2024	267,412
Additions	35,226

As at 31 December 2024	302,638

Depreciation
As at 1 January 2024	200,259
Provided during the period	26,516

As at 31 December 2024	226,775

Net Book Value
As at 31 December 2024	75,863

As at 1 January 2024	67,153

6. Deferred Taxation

The provision for deferred tax is made up as follows:

	2024	2023
	£	£
Other timing differences	13,270	-

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Neil Brown Engineering Limited

Notes to the Abridged Financial Statements (continued)

For The Year Ended 31 December 2024

7. Share Capital

	2024	2023
	£	£
Allotted, Called up and fully paid	10,000	10,000

8. Contingent Liabilities

The company has a cross-guarantee with its parent company in respect of all monies and liabilities owed to the director, Miss F Brown. The respective amounts owed at the end of each financial year end were as shown.

There were no other contingent liabilities.

9. Capital Commitments

The company had no capital commitments as at 31 December 2024 and 31 December 2023.

10. Other Commitments

The total of future minimum lease payments under non-cancellable operating leases are as following:

	2024	2023
	£	£
Not later than one year	63,469	134,164
Later than one year and not later than five years	-	15,833

	63,469	149,997

11. Pension Commitments

The company operates a defined contribution 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 £12,506 (2023: £12,506).

12. Reserves

Share premium

This reserve records the amount above the nominal value received for shares issued.

Capital redemption reserve

This reserve contains amounts used to repurchase own company shares from distributable reserves.

Profit and loss account

This reserve includes all current prior period retained profit and losses.

13. Parent Undertaking and Controlling Party

The ultimate parent undertaking is Neil Brown Engineering Developemtns Limited, a company incorporated in England and Wales. No one individual controls more than 50% of the shares of Neil Brown Engineering Limited and therefore there is no individual controlling party.

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		2024		2023
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	4		18,226		24,302
Tangible Assets	5		75,863		67,153

			94,089		91,455
CURRENT ASSETS
Stocks		720,239		637,713
Debtors		295,316		542,786
Cash at bank and in hand		393,846		324,612

		1,409,401		1,505,111
Creditors: Amounts Falling Due Within One Year		(505,412 )		(553,201 )

NET CURRENT ASSETS (LIABILITIES)			903,989		951,910

TOTAL ASSETS LESS CURRENT LIABILITIES			998,078		1,043,365

Creditors: Amounts Falling Due After More Than One Year			(4,415 )		(14,810 )

PROVISIONS FOR LIABILITIES
Deferred Taxation	6		(13,270 )		-

NET ASSETS			980,393		1,028,555

CAPITAL AND RESERVES
Called up share capital	7		10,000		10,000
Share premium account			638,151		638,151
Capital redemption reserve			10,833		10,833
Profit and Loss Account			321,409		369,571

SHAREHOLDERS' FUNDS			980,393		1,028,555