Neil Brown Engineering Developments Limited

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

1. General Information

Neil Brown Engineering Developments Limited is a private company, limited by shares, incorporated in England & Wales, registered number 06515551 . 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 company is the parent of a small group and as such is not required by the Companies Act 2006 to prepare group accounts. These financial statements therefore present information about the company as an individual undertaking and not about its group.

The following principal accounting policies have been applied:

2.2. Turnover

Turnover represents the amounts receivable for hire costs of tangible fixed assets, exclusive of VAT.

Revenue is recognised when the company has a right to the income.

2.3. Tangible Fixed Assets and Depreciation

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 as necessary for it to be capable or operating in the manner intended by management.

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

Depreciation is provided on the following basis:

Plant & Machinery	20% straight line
Motor Vehicles	25% straight line
Fixtures & Fittings	20% straight line
Computer Equipment	33.33% 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 the statement of comprehensive income.

2.4. 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.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset carrying amount and the present value of estimated cash flows discounted at the assets original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the reporting date.

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Neil Brown Engineering Developments Limited

Notes to the Abridged Financial Statements (continued)

For The Year Ended 31 December 2024

2.5. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other year and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and asset reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.

2.6. Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.7.

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.

3. Average Number of Employees

Average number of employees, including directors, during the year was 1 (2023: 1)

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Neil Brown Engineering Developments Limited

Notes to the Abridged Financial Statements (continued)

For The Year Ended 31 December 2024

4. Tangible Assets

	Total
	£
Cost
As at 1 January 2024	585,662
Additions	19,913
Disposals	(21,125 )

As at 31 December 2024	584,450

Depreciation
As at 1 January 2024	469,398
Provided during the period	34,739
Disposals	(21,125 )

As at 31 December 2024	483,012

Net Book Value
As at 31 December 2024	101,438

As at 1 January 2024	116,264

5. Investments

	Total
	£
Cost
As at 1 January 2024	3,016,000

As at 31 December 2024	3,016,000

Provision
As at 1 January 2024	766,000
Reversal of past impairments	(150,000 )

As at 31 December 2024	616,000

Net Book Value
As at 31 December 2024	2,400,000

As at 1 January 2024	2,250,000

Other investments as detailed above includes investments in subsidiary undertakings of £2,250,000 (2023: £2,250,000).

Neil Brown Engineering Developments Limited owns 100% of the ordinary share capital of its subsidiary, Neil Brown Engineering Limited.

The principal activity of the subsidiary is the sale and servicing of competition motor racing engines as well as the provision of engine leasing facilities.

For the year ended 31 December 2024 the aggregate of the share capital and reserves for the subsidiary undertaking was £1,035,505 (2023: £1,028,555) and the profit for the year ended on that date was £206,950 (2023: £418,765).

6. Share Capital

	2024	2023
Allotted, called up and fully paid	£	£
75 Ordinary A shares of £ 1.000 each	75	75
75 Ordinary B shares of £ 1.000 each	75	75

	150	150

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Neil Brown Engineering Developments Limited

Notes to the Abridged Financial Statements (continued)

For The Year Ended 31 December 2024

7. Contingent Liabilities

The company has entered into a cross guarantee with its subsidiary, Neil Brown Engineering Limited in respect of all monies and liabilities owed to the director, F Brown. The respective amounts owed at the end of each financial year end were as shown:

There were no other contigent liabilities.

8. Reserves

Profit and loss account

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

9. Controlling Party

No one individual controls more than 50% of the shares of the company and therefore there is no individual controlling party.

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		2024		2023
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	4		101,438		116,264
Investments	5		2,400,000		2,250,000

			2,501,438		2,366,264
CURRENT ASSETS
Debtors		200,000		200,000
Cash at bank and in hand		599,001		528,116

		799,001		728,116
Creditors: Amounts Falling Due Within One Year		(7,124 )		(126,961 )

NET CURRENT ASSETS (LIABILITIES)			791,877		601,155

TOTAL ASSETS LESS CURRENT LIABILITIES			3,293,315		2,967,419

NET ASSETS			3,293,315		2,967,419

CAPITAL AND RESERVES
Called up share capital	6		150		150
Capital redemption reserve			40		40
Profit and Loss Account			3,293,125		2,967,229

SHAREHOLDERS' FUNDS			3,293,315		2,967,419