LOGIC MANUFACTURING LIMITED


Directors	Mr S J Beniams
	Mr B R Cordiner
	Mr J D Purdy


Company Secretary	Mr B R Cordiner


Registered Address	Foundry Industrial Estate
	Bridge End
	Hexham
	NE46 4JL


Registered Number	02020767 (England and Wales)

Notes to the Financial Statements
for the year ended 31 August 2025

1.	Accounting policies

	Statutory information
	The company is a private company limited by shares and registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

	Statement of compliance
	The financial statements have been prepared in compliance with FRS 102 Section 1A as it applies to the financial statements for the period and there were no material departures from the reporting standard.

	Basis of preparation
	The financial statements have been prepared under the historical cost convention on a going concern basis unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

	Functional and presentation currency
	The financial statements are presented in sterling and this is the functional currency of the company.

	Turnover policy
	Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and/or the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

Turnover policy

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and/or the rendering of services.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. 

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

	Employee benefits
	The company operates defined contribution plans 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 obligation. Contributions to defined contribution plans are expensed in the period in which they are paid. The assets of the plan are held separately from the company in independently administered funds.

Employee benefits

The company operates defined contribution plans 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 obligation. 

Contributions to defined contribution plans are expensed in the period in which they are paid. The assets of the plan are held separately from the company in independently administered funds.

	Foreign currency translation
	Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to the Income Statement.

Foreign currency translation

Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to the Income Statement.

	Current taxation
	Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

	Deferred tax
	Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference. Current and deferred tax assets and liabilities are not discounted.

Deferred tax

Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. 

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference. Current and deferred tax assets and liabilities are not discounted.

	Intangible assets
	Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

	Tangible fixed assets and depreciation
	Tangible fixed assets are stated at cost or valuation less depreciation. 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 disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Income. Depreciation is provided on all tangible fixed assets as follows:

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost or valuation less depreciation. 

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 disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Income.

Depreciation is provided on all tangible fixed assets as follows:


		Straight line (years)
	Plant and machinery	4
	Fixtures and fittings	4
	Vehicles	4

	Finance leases and hire purchase contracts
	Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, and hire purchase contracts are capitalised in the Statement of Financial Position. They are depreciated over the shorter of their useful lives or the term of the lease. All other lease arrangements are classified as an operating lease. Payments made under operating leases are charged to the Income Statement on a straight line basis over the lease term.

Finance leases and hire purchase contracts

Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, and hire purchase contracts are capitalised in the Statement of Financial Position. They are depreciated over the shorter of their useful lives or the term of the lease. All other lease arrangements are classified as an operating lease. 

Payments made under operating leases are charged to the Income Statement on a straight line basis over the lease term.

	Stocks and work in progress
	Stocks are stated at the lower of cost and net realisable value (less any associated costs to enable such sales to complete). Cost is based on last cost of materials and direct labour costs. At each date of Statement of Financial Position, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete the sale. The impairment loss is recognised immediately in the Income Statement.

Stocks and work in progress

Stocks are stated at the lower of cost and net realisable value (less any associated costs to enable such sales to complete). Cost is based on last cost of materials and direct labour costs.

 At each date of Statement of Financial Position, stocks are assessed for impairment.  If stock is impaired, the carrying amount is reduced to its selling price less costs to complete the sale.  The impairment loss is recognised immediately in the Income Statement.

	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 ordinary shares.

2.	Average number of employees


		2025		2024
	Average number of employees during the year	29		29

3.	Intangible assets

	Other	Total
	£	£
Cost or valuation
At 01 September 24	7,500	7,500
At 31 August 25	7,500	7,500
Amortisation and impairment
At 01 September 24	7,500	7,500
At 31 August 25	7,500	7,500
Net book value
At 31 August 25	-	-
At 31 August 24	-	-

4.	Tangible fixed assets

	Land & buildings	Plant & machinery	Vehicles	Fixtures & fittings	Total
	£	£	£	£	£
Cost or valuation
At 01 September 24	142,566	340,021	275,186	89,174	846,947
Additions	-	-	131,813	2,879	134,692
Disposals	-	-	(64,039)	-	(64,039)
At 31 August 25	142,566	340,021	342,960	92,053	917,600
Depreciation and impairment
At 01 September 24	142,566	303,892	133,913	72,852	653,223
Charge for year	-	17,964	76,389	4,200	98,553
On disposals	-	-	(70,834)	-	(70,834)
At 31 August 25	142,566	321,856	139,468	77,052	680,942
Net book value
At 31 August 25	-	18,165	203,492	15,001	236,658
At 31 August 24	-	36,129	141,273	16,322	193,724

5.	Debtors: amounts due within one year

	2025	2024
	£	£
Trade debtors / trade receivables	341,762	308,809
Prepayments and accrued income	51,194	51,371
Total	392,956	360,180


	Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

6.	Creditors: amounts due within one year

	2025	2024
	£	£
Trade creditors / trade payables	322,399	323,808
Taxation and social security	139,310	198,210
Finance lease and HP contracts	28,146	7,887
Accrued liabilities and deferred income	80,946	154,643
Total	570,801	684,548


	Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

7.	Creditors: amounts due after one year

	2025	2024
	£	£
Other creditors	35,606	6,572
Total	35,606	6,572


	Finance lease and Hire Purchase contracts amounting to £35,606 (2024 - £6,572) are included within other creditors.

8.	Provisions for liabilities
	Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of financial position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of financial position.

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of financial position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Statement of
financial position.

	2025	2024
	£	£
Net deferred tax liability (asset)	59,500	49,000
Total	59,500	49,000

9.	Other commitments
	At 31 August 2025 the company had future minimum lease payments under non-cancellable operating leases of £24,336 (2024: £24,336).

10.	Events after reporting date
	After the reporting date, the company acquired the assets and trade of Logic MH Limited. This event did not relate to conditions existing at the balance sheet date and, therefore, no adjustments have been made to the financial statements. However, this is considered material and has been disclosed to ensure users are aware of its potential impact.

	Notes	2025		2024
		£	£	£	£
Fixed assets
Tangible assets	4		236,658		193,724
			236,658		193,724
Current assets
Stocks		1,272,323		1,258,278
Debtors	5	392,956		360,180
Cash at bank and on hand		541,127		604,618
		2,206,406		2,223,076
Creditors amounts falling due within one year	6	(570,801)		(684,548)
Net current assets (liabilities)			1,635,605		1,538,528
Total assets less current liabilities			1,872,263		1,732,252
Creditors amounts falling due after one year	7		(35,606)		(6,572)
Provisions for liabilities	8		(59,500)		(49,000)
Net assets			1,777,157		1,676,680
Capital and reserves
Called up share capital			5,000		5,000
Profit and loss account			1,772,157		1,671,680
Shareholders' funds			1,777,157		1,676,680