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Registered number:
FOR THE PERIOD ENDED 31 MARCH 2025
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BROOMCO (4266) LIMITED
COMPANY INFORMATION
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BROOMCO (4266) LIMITED
CONTENTS
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BROOMCO (4266) LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 MARCH 2025
The directors present their Strategic report for Broomco (4266) Limited (the "Company") for the period ended 31 March 2025.
The Company reports a profit for the period of £8.0m (Year Ended 30 April 2024: £nil) following the receipt of £8m of dividends from its subsidiary undertaking. The shareholders’ funds for the Company is £10.4m (30 April 2024: £10.4m).
On 18 December 2024 the Company's group was acquired by PTC Industries Limited from Rcapital. This opportunity provided the opportunity to invest, develop and grow the group from a solid financial footing that has seen the group return to EBITDA profitability over the past couple of accounting periods. As a result of the acquisition, permission was granted to shorten the accounting period to 11 months covering the period 1 May 2024 to 31 March 2025, which aligns the reporting dates of the group to that of its owners.
The Company is a non-trading holding company and does not carry out a trade. As such, the Company is not exposed to significant external risks or uncertainties, other than matters relating to its subsidiary undertakings which might affect the carrying value of the Company's investments.
The Company is a non-trading holding company and does not carry out a trade and is not monitored by reference to a range of financial key performance indicators.
This report was approved by the board and signed on its behalf.
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BROOMCO (4266) LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 MARCH 2025
The directors present their report and the financial statements for the period ended 31 March 2025.
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 judgements and accounting estimates that are reasonable and prudent;
∙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 period, after taxation, amounted to £8,000,000 (2024 - £NIL).
Interim dividends of £8,000,000 were declared during the period. The directors do not recommend the payment of a final dividend.
The directors who served during the period were:
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BROOMCO (4266) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2025
The Company's Articles of Association provide, subject to the provisions of UK legislation, an indemnity for directors and officers of the Company in respect of liabilities they may incur in the discharge of their duties or in the exercise of their powers, including any liabilities relating to the defence of any proceedings brought against them which relate to anything done or omitted, or alleged to have done or omitted, by them as officers or employees of the Company. Appropriate directors' and officers' liability insurance cover is in place in respect of all the Company's directors.
Details of post balance sheet events affecting the Company are disclosed in note 16.
The auditors, PKF Smith Cooper Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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BROOMCO (4266) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROOMCO (4266) LIMITED
We have audited the financial statements of Broomco (4266) Limited (the 'Company') for the period ended 31 March 2025, which comprise the Statement of comprehensive income, the Balance sheet, 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.
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BROOMCO (4266) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROOMCO (4266) LIMITED (CONTINUED)
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.
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 period 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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BROOMCO (4266) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROOMCO (4266) 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.
Based on our understanding of the Company and industry, key laws and regulations that we identified included:
∙Companies Act 2006; and
∙Tax legislation.
We identified that the principal risk of fraud or non-compliance with laws and regulations related to:
∙Management bias in respect of accounting estimates and judgements made;
∙Management override of controls; and
∙Posting of unusual journals or transactions.
We focused on those areas that could give rise to a material misstatement in the Company's financial statements.
Our procedures included, but were not limited to:
∙Enquiry of management and those charged with governance around actual and potential litigation and claims, including instances of non-compliance with laws and regulations and fraud;
∙Reviewing minutes of meetings of those charged with governance where available;
∙Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and fraud;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations and;
∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
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-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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BROOMCO (4266) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROOMCO (4266) LIMITED (CONTINUED)
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.
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
Statutory Auditors
Cornerblock
2 Cornwall Street
B3 2DX
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BROOMCO (4266) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 MARCH 2025
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BROOMCO (4266) LIMITED
REGISTERED NUMBER: 08664988
BALANCE SHEET
AS AT 31 MARCH 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 11 to 19 form part of these financial statements.
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BROOMCO (4266) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2025
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BROOMCO (4266) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2025
Broomco (4266) Limited is a private company, limited by shares, registered in England and Wales, United Kingdom. The Company's registration number and registered office address can be found on the Company Information page. The principal activity of the Company is disclosed in the Directors Report.
The financial statements cover an 11 month period from 1 May 2024 to 31 March 2025. The previous financial period covered a 12 month accounting period from 1 May 2023 to 30 April 2024. The reporting period has been shortened in order to harmonise the reporting period with that of the ultimate parent undertaking, PTC Industries Limited. As a result, the reported figures for the current and comparative year are therefore not entirely comparable.
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 judgement in applying the Company's accounting policies (see note 3).
The presentation currency of these financial statements is Sterling. All amounts in the financial statements have been rounded to the nearest £1,000.
The following principal accounting policies have been applied:
The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons.
The Company is an intermediate holding company and the directors have prepared business forecasts for its subsidiary undertaking, which includes the assessment of uncertainty on future trading projections for a period of at least 12 months from the date of signing the financial statements, and the extent to which they might affect the preparation of the financial statements for its parent undertaking on a going concern basis. The directors have confirmed that they believe that its subsidiary undertaking will be operating on a going concern basis. Demand from existing customers remains strong and coupled with new product introduction the Directors envisage its subsidiary will continue to grow and invest in machining capabilities, after taking into consideration possible downsides, which include increased energy costs, inflationary increases and increases to interest rates. In addition, the Directors have specifically considered the timing of settlement of the £3m owed by the Company to its parent undertaking, Trac Holdings Limited. This relates to dividends previously declared by the Company’s subsidiaries, Trac Precision Solutions Limited and Trac Group Limited. The Company’s ultimate controlling party has confirmed that it will not instruct Trac Holdings Limited to request repayment of this amount until Trac Precision Solutions Limited settles the amount of £3m it owes to Trac Group Limited, at which time Trac Group Limited will repay the amount of £3m it owes to the Company, enabling the Company to repay the £3m it owes to Trac Holdings Limited, which itself will then repay the £3m it owes to Trac Precision Solutions Limited. Accordingly, the settlement of this £3m liability is not expected to result in any net outflow of funds.
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BROOMCO (4266) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2025
2.Accounting policies (continued)
Accordingly, having taken account of any other reasonably possible downsides, the Directors have concluded that, the Company will have sufficient funds through its available cash balances to meet its liabilities as they fall due for that period. Consequently, the directors are confident that the Company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Trac Holdings Limited (formerly Rcap Eleven Limited) as at 31 March 2025 and these financial statements may be obtained from the registered office address of 9A Marshfield Bank Business Park, Middlewich Road, Crewe, Cheshire, CW2 8UY.
The financial statements contain information about Broomco (4266) Limited as an individual company and do not contain consolidated financial information as the parent of a group. The Company is exempt under section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by a full consolidation in the consolidated financial statements of Trac Holdings Limited (formerly Rcap Eleven Limited), a company incorporated in England and Wales, United Kingdom, with a registered office address of 9A Marshfield Business Park, Middlewich Road, Crewe, Cheshire, CW2 8UY.
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BROOMCO (4266) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2025
2.Accounting policies (continued)
Tax on profit or loss for the year comprises current tax. Tax is recognised in the Statement of Comprehensive Income except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustments tax payable in respect of previous years. Payment is made for any tax losses surrendered by companies within the group.
Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of 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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BROOMCO (4266) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2025
The key judgement made in the preparation of the financial statements for the period is in relation to the carrying value of the Company’s fixed asset investment. The directors have assessed the carrying value of fixed asset investment based on the underlying net asset value of the investment at the balance sheet date and consider that the carrying value reflects the expected recoverable amount. The Directors will continue to review the carrying value of the Company's fixed asset investment for any indicators of reversals of previous impairments in future accounting periods. The directors consider that there are no other critical accounting judgements in applying the Company's accounting policies.
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BROOMCO (4266) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2025
There were no factors that may affect future tax charges.
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BROOMCO (4266) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2025
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BROOMCO (4266) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2025
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BROOMCO (4266) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2025
Share premium account
Other reserves
Profit and loss account
The Company has given a guarantee, supported by a Debenture, in relation to the amounts owed by Trac Precision Solutions Limited on its invoice discounting facilities. The amount guaranteed at 31 March 2025 totalled £725,000 (30 April 2024: £901,000).
The Company has given a guarantee in relation to a secured term loan facility owed by Trac Precision Solutions Limited. The amount guaranteed at 31 March 2025 amounted to £8,000,000 (2024: £5,000,000).
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BROOMCO (4266) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2025
The immediate parent company is Trac Holdings Limited (formerly Rcap Eleven Limited), a company incorporated in England and Wales, United Kingdom, with a registered address of 9A Marshfield Bank Business Park, Middlewich Road, Crewe, Cheshire, CW2 8UY
The ultimate parent undertaking is PTC Industries Limited a company incorporated in India, with a registered office address of Nh-25A Sarai Sahjadi, Lucknow, Uttar Pradesh, India. The smallest group, in which the results of the Company are consolidated, is that headed by Trac Holdings Limited (formerly Rcap Eleven Limited), a company incorporated in England and Wales, United Kingdom. The financial statements of Trac Holdings Limited (formerly Rcap Eleven Limited) may be obtained from its registered office address, 9A Marshfield Business Park, Middlewich Road, Crewe, Cheshire, CW2 8UY.
The largest group of undertakings in which the results of the company are consolidated is that headed by PTC Industries Limited, a Company incorporated in India, with a registered office address of Nh-25A Sarai Sahjadi, Lucknow, Uttar Pradesh, India.
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