Company registration number: 00661746
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
Preci-Spark Limited is a leading European contract manufacturer for the high-end technology industries delivering manufacturing solutions to the global marketplace. Established in 1960 the company employs over 475 people across 6 manufacturing facilities in the United Kingdom.
As a process based manufacturing specialist, Preci-Spark Limited delivers an array of components, complex fabrications and assemblies to the Aerospace and Industrial markets. The company has an extensive portfolio of in-house processing capabilities allowing greater production control, accelerated lead times and reduced costs.
Being customer focussed in all activities, Preci-Spark Limited embraces the requirements defined in AS9100 Revision D. The company is committed to maintaining a Quality Management System of the highest possible standard.
The company's NADCAP approved processes include vacuum brazing, heat treatment, electro-discharge machining, laser machining, welding and non-destructive testing.
As a process based manufacturing specialist, Preci-Spark Limited delivers an array of components, complex fabrications and assemblies to the Aerospace and Industrial markets. The company has an extensive portfolio of in-house processing capabilities allowing greater production control, accelerated lead times and reduced costs.
Being customer focussed in all activities, Preci-Spark Limited embraces the requirements defined in AS9100 Revision D. The company is committed to maintaining a Quality Management System of the highest possible standard.
The company's NADCAP approved processes include vacuum brazing, heat treatment, electro-discharge machining, laser machining, welding and non-destructive testing.
Overall, the combined company revenue has continued increasing by 10% in the current year compared to an increase of 19% in the prior year. The increase in revenue was as a direct result of the ending of the restrictions linked to the COVID-19 pandemic and the severe impact on the aerospace sector. This year has seen continued resurgence in the core market. The company had a positive start to the current year and the order book for the coming financial year remains strong.
Despite the increase in revenues, the company continues to be impacted by ongoing supply chain disruption as the global economy continues to contend with the challenges faced from the war in Ukraine. There continues to be severe shortages in the UK labour market, especially skilled engineers which limits the rate that the company can continue to expand. Due to the market pressures, the company headcount has remained at similar levels to the previous year and seeks further expansion in the coming year.
Despite these challenges, the directors have developed new markets and continued to invest in plant and machinery as they strive for greater efficiencies.
Despite the increase in revenues, the company continues to be impacted by ongoing supply chain disruption as the global economy continues to contend with the challenges faced from the war in Ukraine. There continues to be severe shortages in the UK labour market, especially skilled engineers which limits the rate that the company can continue to expand. Due to the market pressures, the company headcount has remained at similar levels to the previous year and seeks further expansion in the coming year.
Despite these challenges, the directors have developed new markets and continued to invest in plant and machinery as they strive for greater efficiencies.
The company faces a number of risks and uncertainties following the UK decision to "Brexit", the aftermath of the
COVID-19 pandemic and the ongoing war in Ukraine. The World's largest producing economies are still not yet at full
speed with production and the supply chain disruption is expected to continue in the coming year. The consequences of
Brexit has undoubtedly created some friction for international trade, but the most evident point is the severe shortage
in the labour market. A significant number of European migrant employees returned to their home countries during the
pandemic and have not returned. Labour shortages and the current skills gap in the engineering sector present some of
the biggest challenges that the business will face in the coming years.
The directors are reviewing strategies to mitigate these risks which include trade tariffs, foreign exchange risks and
export customer uncertainties, supply chain disruption together with liquidity and retention and recruitment of key
personnel.
Despite these uncertainties, the company is well positioned, financially robust and has a broad global customer base
that means its services will continue to be in demand in the future.
In addition, the directors consider price inflation as a key risk in the coming year as a result of ongoing central bank
policies designed to curb inflation. High interest rates and access to capital is likely to lead to liquidity issues in the
wider economy, particularly among customers and suppliers who will be facing their own challenges. Supply chain
disruption is also not expected to ease in the short to medium term, however the directors have implemented
strategies to ensure that stock shortages are eliminated as far as possible.
COVID-19 pandemic and the ongoing war in Ukraine. The World's largest producing economies are still not yet at full
speed with production and the supply chain disruption is expected to continue in the coming year. The consequences of
Brexit has undoubtedly created some friction for international trade, but the most evident point is the severe shortage
in the labour market. A significant number of European migrant employees returned to their home countries during the
pandemic and have not returned. Labour shortages and the current skills gap in the engineering sector present some of
the biggest challenges that the business will face in the coming years.
The directors are reviewing strategies to mitigate these risks which include trade tariffs, foreign exchange risks and
export customer uncertainties, supply chain disruption together with liquidity and retention and recruitment of key
personnel.
Despite these uncertainties, the company is well positioned, financially robust and has a broad global customer base
that means its services will continue to be in demand in the future.
In addition, the directors consider price inflation as a key risk in the coming year as a result of ongoing central bank
policies designed to curb inflation. High interest rates and access to capital is likely to lead to liquidity issues in the
wider economy, particularly among customers and suppliers who will be facing their own challenges. Supply chain
disruption is also not expected to ease in the short to medium term, however the directors have implemented
strategies to ensure that stock shortages are eliminated as far as possible.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company is committed to a continuous dialogue with stakeholders as it believes that this is essential to ensure a greater understanding of and confidence amongst it stakeholders in the medium and longer term strategy of the company and in the Board's ability to oversee its implementation. It is the responsibility of the Board as a whole to ensure that a satisfactory dialogue takes place.
Section 172 of the Companies Act 2006 requires Directors to take into consideration the interests of stakeholders in their decision making. The Board is committed to understanding and engaging with all key stakeholder groups of the Company in order to maximise value and promote long-term Company success in line with our strategic objectives. The Board recognises its duties under Section 172 and continuously has regard to how the Company's activities and decisions will impact employees, those with which it has a business relationship, the community and environment and its reputation for high standards of business conduct. In weighing all of the relevant factors, the Board, acting in good faith and fairly between members, makes decisions and takes actions that it considers will best lead to the long-term success of the Company.
During the year, the Board assessed its current activities between the Board and its stakeholders, which demonstrated that the Board actively engages with its stakeholders and takes their various objectives into consideration when making decisions. Specifically, actions the Board has taken to engage with its
stakeholders in 2024 include: -
- Arranged meetings with certain stakeholders to provide them with updates on the Company's activities and other general corporate updates;
- Evaluated the relationships with the Company's various collaborators through management and
identified ways to strengthen relationships and arrangements with key collaborations; and
- Monitored company culture and engaged with employees on efforts to continuously improve company culture and morale.
The Board believes that appropriate steps and considerations have been taken during the year so that each Director has an understanding of the various key stakeholders of the Company. The Board recognises its responsibility to contemplate all such stakeholder needs and concerns as part of its discussions, decision-making and in the course of taking actions, and will continue to make stakeholder engagement a top priority in the coming years.
The company's website at www.preci-spark.co.uk is the primary source of information on the company. The website includes an overview of the activities of the company and other relevant information.
Section 172 of the Companies Act 2006 requires Directors to take into consideration the interests of stakeholders in their decision making. The Board is committed to understanding and engaging with all key stakeholder groups of the Company in order to maximise value and promote long-term Company success in line with our strategic objectives. The Board recognises its duties under Section 172 and continuously has regard to how the Company's activities and decisions will impact employees, those with which it has a business relationship, the community and environment and its reputation for high standards of business conduct. In weighing all of the relevant factors, the Board, acting in good faith and fairly between members, makes decisions and takes actions that it considers will best lead to the long-term success of the Company.
During the year, the Board assessed its current activities between the Board and its stakeholders, which demonstrated that the Board actively engages with its stakeholders and takes their various objectives into consideration when making decisions. Specifically, actions the Board has taken to engage with its
stakeholders in 2024 include: -
- Arranged meetings with certain stakeholders to provide them with updates on the Company's activities and other general corporate updates;
- Evaluated the relationships with the Company's various collaborators through management and
identified ways to strengthen relationships and arrangements with key collaborations; and
- Monitored company culture and engaged with employees on efforts to continuously improve company culture and morale.
The Board believes that appropriate steps and considerations have been taken during the year so that each Director has an understanding of the various key stakeholders of the Company. The Board recognises its responsibility to contemplate all such stakeholder needs and concerns as part of its discussions, decision-making and in the course of taking actions, and will continue to make stakeholder engagement a top priority in the coming years.
The company's website at www.preci-spark.co.uk is the primary source of information on the company. The website includes an overview of the activities of the company and other relevant information.
The company is continuing to undertake research and development to improve and develop new products and manufacturing processes. This will facilitate the company entering into new markets, further expand the customer base and ensure margins are maintained through production efficiencies.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors anticipate that the business environment will continue to be challenging given the impact of inflation, labour shortages, supply chain disruption and the ongoing war in Ukraine. The business sectors that were directly affected by the pandemic, which include aerospace, are recovering strongly, with no further impact expected beyond 2025. The directors anticipate that the bounce back in aerospace business will be buffered by the rising costs of materials, energy, and operations. The aerospace sector continue to invest in "greener" technology which will hope to reduce reliance on fossil fuels and at the same time maintain the affordability of air travel.
With the company having a strong balance sheet and positive cash reserves, the directors consider the business robust enough to withstand this current economic turbulence. In addition, the directors feel that the existing risk mitigation strategies, which have been developed as a result of the COVID-19 pandemic, will be adequate in dealing with any new risks that may arise.
Despite these challenges, the environment is expected to remain competitive and the directors believe that the company is in a good position to continue to operate through their ongoing investment in innovative production and manufacturing techniques achieved by employment of the most cutting edge technology and a highly skilled and dedicated workforce.
The directors remain committed to an ongoing programme of capital expenditure and continued focus on quality assurance and on time delivery to ensure that they provide first class products to customers in conjunction with exploring new markets, including the medical and robotic technology sectors.
With the company having a strong balance sheet and positive cash reserves, the directors consider the business robust enough to withstand this current economic turbulence. In addition, the directors feel that the existing risk mitigation strategies, which have been developed as a result of the COVID-19 pandemic, will be adequate in dealing with any new risks that may arise.
Despite these challenges, the environment is expected to remain competitive and the directors believe that the company is in a good position to continue to operate through their ongoing investment in innovative production and manufacturing techniques achieved by employment of the most cutting edge technology and a highly skilled and dedicated workforce.
The directors remain committed to an ongoing programme of capital expenditure and continued focus on quality assurance and on time delivery to ensure that they provide first class products to customers in conjunction with exploring new markets, including the medical and robotic technology sectors.
This report was approved by the board on 26 September 2025 and signed on its behalf.
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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.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
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 judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙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 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.
The profit for the year, after taxation, amounted to £69,285 (2023 - £841,239).
The directors who served during the year were:
Future developments of the company are detailed in the strategic report of these financial statements.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The company's operations expose it to a variety of financial risks that include the changes in debt market prices, credit risk, liquidity risk, interest rate risk and foreign exchange rate risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring the levels of debt finance and the related costs. The company does not use derivative financial instruments to manage interest rate costs and as such, no hedge accounting is applied.
Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the company's finance department. The department has a policy and procedures manual that sets out specific guidelines to manage interest rate risk, credit risk and circumstances where it would be appropriate to use financial instruments to manage these.
Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the company's finance department. The department has a policy and procedures manual that sets out specific guidelines to manage interest rate risk, credit risk and circumstances where it would be appropriate to use financial instruments to manage these.
Applications for employment by disabled persons are always fully considered, bearing in mind the respective aptitudes and abilities of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment with the company continues and the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of a disabled person should, as far as possible, be identical to that of a person who does not suffer from a disability.
Consultation with employees or their representatives has continued at all levels, with the aim of ensuring that their views are taken into account when decisions are made that are likely to affect their interests and that all employees are aware of the financial performance of the company as a whole. Communication with all employees continues through the works committee and published minutes.
The above summaries the director's ongoing engagement in employee interests and they have considered this in making their principal decisions in the year.
Consultation with employees or their representatives has continued at all levels, with the aim of ensuring that their views are taken into account when decisions are made that are likely to affect their interests and that all employees are aware of the financial performance of the company as a whole. Communication with all employees continues through the works committee and published minutes.
The above summaries the director's ongoing engagement in employee interests and they have considered this in making their principal decisions in the year.
Throughout the year, the directors have had due regard to the need to foster appropriate business relationships with the companies suppliers and customers, along with other parties involved in the operation of the business.
The above summaries the director's ongoing engagement in such relationships and they have considered this in making their principal decisions in the year.
The above summaries the director's ongoing engagement in such relationships and they have considered this in making their principal decisions in the year.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Preci-Spark Ltd.’s greenhouse gas emissions, reportable under SECR in 2024 were 2,371 tonnes CO2e, this is 4% lower than in 2023.
These include the emissions associated with electricity and natural gas consumption, gas oil, and business travel in company and private vehicles by employees. Preci Spark's intensity of 53.9 tCO2e per £m revenue is 14% lower than 2023’s 62.5 tCO2e per £m.
Table 1 Greenhouse gas emissions by year (tonnes CO2e)
Table 1 Greenhouse gas emissions by year (tonnes CO2e)
Boundary, methodology and exclusions
An ‘operational control’ approach has been used to define the Greenhouse Gas emissions boundary.
This approach captures emissions associated with the operation of all buildings such as warehouses, offices and manufacturing sites, plus company-owned and leased transport. This report covers UK operations only, as required by SECR for Non-Quoted Large Companies.
This information was collected and reported in line with the methodology set out in the UK Government’s Environmental Reporting Guidelines, 2019.
The GHG Protocol Corporate Accounting and Reporting Standard (revised edition) and emission factors from the UK Government’s GHG Conversion Factors for Company Reporting 2024 have been used calculate the SECR disclosures.
The reporting period is January 2024 to December 2024, as per the financial accounts.
An ‘operational control’ approach has been used to define the Greenhouse Gas emissions boundary.
This approach captures emissions associated with the operation of all buildings such as warehouses, offices and manufacturing sites, plus company-owned and leased transport. This report covers UK operations only, as required by SECR for Non-Quoted Large Companies.
This information was collected and reported in line with the methodology set out in the UK Government’s Environmental Reporting Guidelines, 2019.
The GHG Protocol Corporate Accounting and Reporting Standard (revised edition) and emission factors from the UK Government’s GHG Conversion Factors for Company Reporting 2024 have been used calculate the SECR disclosures.
The reporting period is January 2024 to December 2024, as per the financial accounts.
Energy efficiency initiatives
In 2024 Preci-Spark carried out various activities to reduce energy and emissions. In January the Solar PV array at the Franks Road site was complete and this is expected to reduce imported electricity by 342 MWh. Additionally, the business has been progressing plans for a large Solar array at the Loughborough site. Plans are ongoing but the ambition is to have the array installed by November 2025.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
There have been no significant events affecting the Company since the year end.
The auditors, Menzies LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 26 September 2025 and signed on its behalf.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PRECI-SPARK LIMITED
We have audited the financial statements of Preci-Spark Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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.
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.
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 Report. 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. 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.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PRECI-SPARK LIMITED (CONTINUED)
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.
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.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PRECI-SPARK LIMITED (CONTINUED)
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:
• The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including UK Companies Act, employment law, health and safety, pensions legislation and tax legislation.
• We understood how the Company is complying with those legal and regulatory frameworks by making inquiries to management and those responsible for legal and compliance procedures. We assessed the extent of compliance with these legal and compliance procedures as part of our procedures on the related financial statement items.
• The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognize non-compliance with laws and regulations. The assessment did not identify any issues in this area.
• We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur. We identified the risk of override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed by the engagement team included:
• Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
• Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
• Challenging assumptions and judgments made by management in its significant accounting estimates; and
• Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
The assessment did not identify any issues in these areas.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-complance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PRECI-SPARK LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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.
for and on behalf of
Chartered Accountants
Statutory Auditor
Richmond House
Walkern Road
Herts
SG1 3QP
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STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 12
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 26 September 2025 .
The notes on pages 17 to 28 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
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ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Preci-Spark 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 (£).
The presentation currency of the financial statements is the Pound Sterling (£).
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
The following principal accounting policies have been applied:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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:
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.
Land and buildings were professionally valued in the year to 31st December 2013 by James Blenkin & Partners, Chartered Surveyors, at open market value. The company adopted the transition exemption under FRS 102 paragraph 35.10(d) and has elected to use previous revaluation as deemed cost.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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 Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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.
Expenditure on research and development is written off in the year in which it is incurred.
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.
Useful economic life of tangible assets:
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and physical condition of the assets.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.
Useful economic life of tangible assets:
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and physical condition of the assets.
Analysis of turnover by country of destination:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Revaluation reserve
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 £602,333 (2023 - £546,481). Contributions totalling £79,918 (2023 - £74,015) were payable to the fund at the reporting date and are included in creditors.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The companies immediate and ultimate parent undertaking is Preci-Spark Holdings Limited, a company registered in England and Wales whose registered office is at Engineering Factory, Chapel Street, Syston, Leicestershire, LE7 1HN. Preci-Spark Holdings Limited is the smallest and largest group which includes Preci-Spark Limited in its consolidated financial statements. These financial statments are available at the company registered office as noted above.
The group does not have an ultimate controlling party.
The group does not have an ultimate controlling party.
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