Registration number:
NLB Engineering Limited
for the Year Ended 31 December 2024
NLB Engineering Limited
Contents
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Company Information |
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Directors' Report |
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Accountants' Report |
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Profit and Loss Account |
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Balance Sheet |
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Notes to the Unaudited Financial Statements |
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Detailed Profit and Loss Account |
NLB Engineering Limited
Company Information
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Directors |
J F S Heffernan M G Fordham D May I R Broadhurst C J Sims |
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Company secretary |
J F S Heffernan |
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Registered office |
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Accountants |
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NLB Engineering 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 of the company
The directors who held office during the year were as follows:
Principal activity
The principal activity of the company is the research and development, patenting, manufacture and sales of innovative, high-quality valves for the water supply, plumbing, gas, and other industries.
Review of the business
The 2024 company year has been one of steady progress in three key areas:
· National Grid Project - Following trials by the National Grid, the company has undertaken a key project to create a swarfless cut version of the EasyFit Isolator for electrical insulating gas. The new swarfless cut development has provided the company with an important new valve and patent, and also significant income for 2024. Further income is due from the project in 2025.
· International Trading - The company has continued to receive orders from its US distributor for the EasyFit Isolator with whom it has built a good relationship. This has included a request to develop an EasyFit Isolator to meet the increasing demand for an isolation valve for the plastic pipe market in the US. This will add a further variant and patent for the company and will be of value for the UK market. An order from New Zealand was also received and fulfilled.
· Profitability - As a result of the above, the company is pleased to report a profit for the year of £61,778 before tax (up from £43,649 for 2023). This was mainly due to steady UK sales, new US orders, and the National Grid project.
The directors are pleased to report a profit of £61,778 before tax for 2024 (£48,649 for 2023). This has primarily arisen from steady UK sales and new sales from markets and new products
NLB Engineering Limited
Directors' Report for the Year Ended 31 December 2024
Going concern
The company has reported a profit for the year of £61,778 before tax for 2024 (against £48,649 for 2023) and has accumulated losses of £1,247,422 at the balance sheet date. The latter figure primarily reflects the investment the company made in R&D on product development in the previous years and which the Company will utilise to offset tax on profits for future years. The directors expect that the Company will continue to operate on a profitable basis going forward given the range of its products, its UK and international markets, and the clients it has attained.
The sales income from the products it has developed, along with existing borrowings and shareholder support, have enabled the company to continue to trade and develop product for its current and new markets. On this basis, the Directors are satisfied that the company will continue to be a going concern for at least the twelve months from the date of approval of these financial accounts which have therefore been prepared on this basis.
Small companies provision statement
This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
Approved and authorised by the
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Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
NLB Engineering Limited
for the Year Ended 31 December 2024
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of NLB Engineering Limited for the year ended 31 December 2024 as set out on pages 5 to 15 from the company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Management Accountants (CIMA) , we are subject to its ethical and other professional requirements. These are based on the principals approved by IFAC.
This report is made solely to the Board of Directors of NLB Engineering Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of NLB Engineering Limited and state those matters that we have agreed to state to you in this report in accordance with the rules laid down by CIMA. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than NLB Engineering Limited and its Board of Directors as a body for our work or for this report.
We have not been instructed to carry out an audit or a review of the accounts of NLB Engineering Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.
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Green Street
Great Canfield
Dunmow
Essex
CM6 1LE
NLB Engineering Limited
Profit and Loss Account for the Year Ended 31 December 2024
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Note |
2024 |
2023 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Operating profit |
81,832 |
58,076 |
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Interest payable and similar expenses |
( |
( |
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Profit before tax |
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Profit for the financial year |
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The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
NLB Engineering Limited
(Registration number: 04360141)
Balance Sheet as at 31 December 2024
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Note |
2024 |
2023 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Investments |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
254 |
254 |
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Share premium reserve |
1,404,481 |
1,404,481 |
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Retained earnings |
(1,247,422) |
(1,309,200) |
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Shareholders' funds |
157,313 |
95,535 |
For the financial year ending 31 December 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
Approved and authorised by the
NLB Engineering Limited
(Registration number: 04360141)
Balance Sheet as at 31 December 2024
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NLB Engineering Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Foreign currency transactions and balances
NLB Engineering Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Plant and Machinery |
20% on Reducing Balance |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Intangible assets
Patents and Amortisation
Costs of patents pending are capitalised where the Directors are confident the patent will be granted and the product will generate profit. Costs of patents pending are not amortised. When a patent is granted, a useful economic life is estimated and amortisation charged accordingly on a straight line basis. The patents currently held by the company are being amortised on the basis of a useful economic life of 20 years.
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
NLB Engineering Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
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Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
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Profit before tax |
Arrived at after charging/(crediting)
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2024 |
2023 |
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Depreciation expense |
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Amortisation expense |
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NLB Engineering Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024
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Intangible assets |
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Trademarks, patents and licenses |
Other intangible assets |
Total |
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Cost or valuation |
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At 1 January 2024 |
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Additions internally developed |
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- |
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At 31 December 2024 |
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Amortisation |
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At 1 January 2024 |
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Amortisation charge |
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- |
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At 31 December 2024 |
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Carrying amount |
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At 31 December 2024 |
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- |
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At 31 December 2023 |
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- |
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The aggregate amount of research and development expenditure recognised as an expense during the period is £
NLB Engineering Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024
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Tangible assets |
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Furniture, fittings and equipment |
Total |
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Cost or valuation |
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At 1 January 2024 |
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Additions |
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Disposals |
( |
( |
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At 31 December 2024 |
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Depreciation |
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At 1 January 2024 |
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Charge for the year |
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Eliminated on disposal |
( |
( |
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At 31 December 2024 |
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Carrying amount |
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At 31 December 2024 |
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At 31 December 2023 |
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Investments |
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2024 |
2023 |
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Investments in associates |
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Associates |
£ |
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Cost |
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At 1 January 2024 |
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Provision |
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Carrying amount |
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At 31 December 2024 |
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At 31 December 2023 |
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Stocks |
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2024 |
2023 |
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Other inventories |
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NLB Engineering Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024
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Debtors |
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Current |
Note |
2024 |
2023 |
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Trade debtors |
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Amounts owed by related parties |
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Prepayments |
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Other debtors |
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NLB Engineering Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024
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Creditors |
Creditors: amounts falling due within one year
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Note |
2024 |
2023 |
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Due within one year |
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Loans and borrowings |
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Trade creditors |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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Creditors: amounts falling due after more than one year
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Note |
2024 |
2023 |
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Due after one year |
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Loans and borrowings |
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Other non-current financial liabilities |
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Loans and borrowings |
Non-current loans and borrowings
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2024 |
2023 |
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Bank borrowings |
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Other borrowings |
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Current loans and borrowings
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2024 |
2023 |
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Bank borrowings |
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Other borrowings |
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NLB Engineering Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024
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Related party transactions |
At the balance sheet date, the company owed Xpedent UK Limited £45,252 which is due after more than one year in accordance with extended credit terms negotiated with Xpedent UK Limited. At the balance sheet date, the company owed Xpediency UK Limited £22,460 of which £12,000 is due after one year and the rest is more than 1 year. Xpedent and Xpediency UK limited are connected to Ms C J Sims ( Shareholder).
Loan to NLB Enginreering Limited is £38,316
NLB Engineering Limited
Detailed Profit and Loss Account for the Year Ended 31 December 2024
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2024 |
2023 |
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Turnover |
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Sale of goods, UK |
310,373 |
465,285 |
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Sale of goods, rest of world |
181,355 |
267,745 |
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Other revenue |
44,506 |
41,152 |
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Interest received |
580 |
111 |
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Grants and subsidies |
228,000 |
4,475 |
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764,814 |
778,768 |
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Cost of sales |
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Opening stock |
157,503 |
196,653 |
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Purchases |
150,072 |
256,618 |
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Direct costs |
30,591 |
12,740 |
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Closing stock |
(161,558) |
(157,503) |
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Wages and salaries (excluding directors) |
126,026 |
96,191 |
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Staff pensions (Other) |
6,206 |
- |
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Repairs and maintenance |
154 |
- |
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308,994 |
404,699 |
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Employment costs |
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Wages and salaries (excluding directors) |
(52,441) |
(41,815) |
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Staff NIC (Employers) |
(26,402) |
(19,355) |
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Directors remuneration |
(139,087) |
(126,990) |
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Staff pensions (Other) |
- |
(3,769) |
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Directors pensions (Other) |
(9,331) |
(5,919) |
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Staff training |
- |
(1,095) |
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Staff welfare |
(7,385) |
(1,037) |
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(234,646) |
(199,980) |
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Establishment costs |
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Rent and rates |
(15,122) |
(15,030) |
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Light, heat and power |
(2,290) |
(4,193) |
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Insurance |
(7,846) |
(6,189) |
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Repairs and renewals |
(2,410) |
(5,559) |
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(27,668) |
(30,971) |
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General administrative expenses |
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Telephone and fax |
(3,681) |
(3,543) |
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Office expenses |
(808) |
- |
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Computer software and maintenance costs |
(9,548) |
(12,182) |
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Printing, postage and stationery |
(1,207) |
(803) |
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Trade subscriptions |
(2,760) |
(97) |
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Sundry expenses |
(774) |
(3,366) |
NLB Engineering Limited
Detailed Profit and Loss Account for the Year Ended 31 December 2024
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2024 |
2023 |
|
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Research and development |
(9,901) |
(5,923) |
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Travel and subsistence |
(6,365) |
(3,865) |
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Advertising |
(45,052) |
(18,885) |
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Customer entertaining (disallowable for tax) |
(182) |
- |
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Accountancy fees |
(2,713) |
(4,745) |
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Legal and professional fees |
(4,834) |
(10,386) |
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(87,825) |
(63,795) |
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Finance charges |
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Bank charges |
(2,698) |
(3,053) |
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Depreciation costs |
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Amortisation of patents |
(4,912) |
(4,913) |
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Depreciation of plant and machinery (owned) |
(15,340) |
(5,284) |
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Depreciation of office equipment (owned) |
(1,897) |
(1,173) |
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(22,149) |
(11,370) |
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Other expenses |
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(Profit)/loss on disposal of tangible fixed assets |
998 |
(6,824) |
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Operating profit |
81,832 |
58,076 |
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Interest payable and similar charges |
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Bank interest payable |
5,533 |
4,115 |
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Other interest payable |
12,693 |
2,009 |
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Foreign currency (gains)/losses |
1,828 |
3,303 |
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20,054 |
9,427 |
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Profit before tax |
61,778 |
48,649 |