Registration number:
Geometric Manufacturing Ltd
for the Year Ended 28 February 2025
Geometric Manufacturing Ltd
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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Statement of Changes in Equity |
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Notes to the Unaudited Financial Statements |
Geometric Manufacturing Ltd
Company Information
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Directors |
PA Wenham GJ Darby J Wenham H Bian CJ Grant ZC Burke Y Zhuang |
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Company secretary |
J Wenham |
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Registered office |
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Accountants |
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Geometric Manufacturing Ltd
Directors' Report for the Year Ended 28 February 2025
The directors present their report and the financial statements for the year ended 28 February 2025.
Strategic Report
Introduction and Strategy
This report details the strategic performance and position of Geometric Manufacturing Ltd for
the year ended 28 February 2025. The 2025 financial year was a pivotal period of planned investment and strategic diversification. The company's core strategy was to expand its manufacturing capabilities by launching a new 'Fabrication and finishing' division to secure supply of the critical processes to its core activities. This addition also creates a significant new revenue stream and increases market share.
Review of Financial Performance
The company's performance reflects this strategy of investing for growth.
● Turnover: Revenue grew by 25.5% to £6.78 million (2024: £5.40 million). Thisheadline growth was the direct result of launching the 'Fabrication and finishing' division.
● Profitability: Gross Profit rose to £2.68 million (2024: £2.19 million). The gross profit margin saw a minor compression to 39.56% (2024: 40.48%), which is attributable to the start-up costs and different margin profile of the new division.
● Operating Costs: As part of the expansion, administrative expenses increased significantly to £2.21 million (2024: £1.66 million). This was primarily driven by a 71% increase in the average number of employees, from 49 to 84, to staff the new operations. Directors' remuneration also increased to £403,412 (2024: £284,269).
● Net Profit: This phase of investment resulted in a temporary reduction in Operating Profit to £478,004 (2024: £533,921). Higher finance costs of £181,040 (2024: £129,116), taken on to fund asset purchases, led to a Profit Before Tax of £297,812 (2024: £404,805). The company benefited from a tax credit in the period, resulting in a strong Profit for the Year (Net Profit) of £359,639, a significant increase from£134,976 in 2024.
Review of Financial Position
The company's balance sheet was strengthened by this year's strategic actions.
● Fixed Assets: The company invested heavily in its future. Additions to tangible assets (plant and machinery) totalled £705,278. Intangible assets also grew by £93,004. This increased the total fixed asset base to £2.77 million (2024: £2.34 million).
● Working Capital: The launch of the new division required a larger investment in working capital. Stock levels more than doubled to £557,002 (2024: £264,748) to support the new activities. Despite this, the company's overall net current liability position improved, reducing from £(380,088) in 2024 to £(198,730) in 2025.
● Financing and Net Assets: The expansion was financed through a combination of retained profits and new borrowings. Non-current loans and hire purchase contracts increased to £744,170 (2024: £513,266). The company's successful profit generation and strategic management grew total equity (net assets) by 37.2% to £1,327,015.
Geometric Manufacturing Ltd
Directors' Report for the Year Ended 28 February 2025
Future Outlook
The substantial investments in 2025 have successfully secured downstream processes in supply of products to critical customers and established a new revenue stream.
The Company is continuing to develop existing customer relationships and expand the customer base by investing in targeted accreditations and certifications, to enhance inhouse capabilities.
By capitalising on its strong presence in the Defence and Security sector, the Company will deliver double digit growth year on year.
The Board's focus for the 2026 financial year will be on consolidating the new operations, driving efficiencies, and managing costs to improve operating margins. The directors are confident that Geometric Manufacturing Ltd is well-positioned to leverage its expanded capabilities and deliver increased profitability
Directors of the company
The directors who held office during the year were as follows:
Principal activity
The principal activity of the company is manufacturing.
Principle risks and uncertainties
The directors have identified the following principal risks:
1. Operational Integration Risk: The rapid 71% growth in employee numbers and the launch of a new manufacturing division create challenges in training, quality control, and integrating new systems and processes.
2. Liquidity and Debt Risk: The company's expansion was financed by increasing secured borrowings and it operates with net current liabilities. Efficient management of cash flow to service this debt and fund working capital is a primary focus.
3. Market Reliance: The company's growth is now significantly dependent on the continued performance of its major market in Defence and Security. Any unexpected downturn in this specific sector could impact future revenue forecasts.
4. Inventory Management: Work in progress and raw material stock levels increased significantly as a result in increased revenues across the larger business, and as an indicator of the strong order book at year end. There is a risk that high levels of inventory could tie up cash.
Geometric Manufacturing Ltd
Directors' Report for the Year Ended 28 February 2025
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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Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Geometric Manufacturing Ltd
for the Year Ended 28 February 2025
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Geometric Manufacturing Ltd for the year ended 28 February 2025 as set out on pages 6 to 18 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 Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/regulation.
This report is made solely to the Board of Directors of Geometric Manufacturing Ltd, 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 Geometric Manufacturing Ltd and state those matters that we have agreed to state to the Board of Directors of Geometric Manufacturing Ltd, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Geometric Manufacturing Ltd and its Board of Directors as a body for our work or for this report.
It is your duty to ensure that Geometric Manufacturing Ltd has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Geometric Manufacturing Ltd. You consider that Geometric Manufacturing Ltd is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the accounts of Geometric Manufacturing Ltd. 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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Evesham
Worcestershire
WR11 4XP
Geometric Manufacturing Ltd
Profit and Loss Account for the Year Ended 28 February 2025
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Note |
2025 |
(As restated) |
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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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Other operating income |
- |
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Operating profit |
478,004 |
533,921 |
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Other interest receivable and similar income |
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- |
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Interest payable and similar expenses |
( |
( |
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(180,192) |
(129,116) |
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Profit before tax |
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Tax on profit |
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( |
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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.
Geometric Manufacturing Ltd
(Registration number: 04515690)
Balance Sheet as at 28 February 2025
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Note |
2025 |
(As restated) |
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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 liabilities |
( |
( |
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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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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
2 |
2 |
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Retained earnings |
1,327,013 |
967,374 |
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Shareholders' funds |
1,327,015 |
967,376 |
For the financial year ending 28 February 2025 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 provisions applicable to companies subject to the small companies regime and FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’.
Approved and authorised by the
Geometric Manufacturing Ltd
(Registration number: 04515690)
Balance Sheet as at 28 February 2025
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Geometric Manufacturing Ltd
Statement of Changes in Equity for the Year Ended 28 February 2025
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Share capital |
Retained earnings |
Total |
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At 1 March 2024 |
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Profit for the year |
- |
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At 28 February 2025 |
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Share capital |
Retained earnings |
Total |
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At 1 March 2023 |
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Profit for the year |
- |
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At 29 February 2024 |
2 |
967,374 |
967,376 |
Geometric Manufacturing Ltd
Notes to the Unaudited Financial Statements for the Year Ended 28 February 2025
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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 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.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Geometric Manufacturing Ltd
Notes to the Unaudited Financial Statements for the Year Ended 28 February 2025
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when 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.
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 |
10% to 20% straight line |
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Motor vehicles |
25% straight line |
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Office equipment |
33.3% straight line |
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Fixtures and fittings |
20% straight line |
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.
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
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Asset class |
Amortisation method and rate |
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Goodwill |
straight line over 10 years |
Geometric Manufacturing Ltd
Notes to the Unaudited Financial Statements for the Year Ended 28 February 2025
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.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
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.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Geometric Manufacturing Ltd
Notes to the Unaudited Financial Statements for the Year Ended 28 February 2025
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.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
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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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2025 |
2024 |
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Depreciation expense |
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Amortisation expense |
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Intangible assets |
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Goodwill |
Total |
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Cost or valuation |
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At 1 March 2024 |
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Additions acquired separately |
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At 28 February 2025 |
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Amortisation |
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At 1 March 2024 |
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Amortisation charge |
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At 28 February 2025 |
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Carrying amount |
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At 28 February 2025 |
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At 29 February 2024 |
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Geometric Manufacturing Ltd
Notes to the Unaudited Financial Statements for the Year Ended 28 February 2025
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Tangible assets |
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Fixtures and fittings |
Plant and machinery |
Office equipment |
Motor vehicles |
Total |
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Cost or valuation |
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At 1 March 2024 |
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Additions |
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At 28 February 2025 |
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Depreciation |
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At 1 March 2024 |
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Charge for the year |
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At 28 February 2025 |
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Carrying amount |
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At 28 February 2025 |
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At 29 February 2024 |
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Revaluation
The fair value of the company's plant and machinery was revalued on
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £Nil (2024 - £Nil).
Geometric Manufacturing Ltd
Notes to the Unaudited Financial Statements for the Year Ended 28 February 2025
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Investments |
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2025 |
2024 |
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Investments in subsidiaries |
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Subsidiaries |
£ |
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Cost or valuation |
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At 1 March 2024 |
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Provision |
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Carrying amount |
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At 28 February 2025 |
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At 29 February 2024 |
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Stocks |
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2025 |
2024 |
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Other inventories |
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Debtors |
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Current |
2025 |
2024 |
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Trade debtors |
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Prepayments |
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Other debtors |
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- |
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Geometric Manufacturing Ltd
Notes to the Unaudited Financial Statements for the Year Ended 28 February 2025
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Creditors |
Creditors: amounts falling due within one year
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Note |
2025 |
2024 |
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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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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
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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 include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £1,382,800 (2024 - £960,857).
Creditors: amounts falling due after more than one year
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Note |
2025 |
2024 |
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Due after one year |
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Loans and borrowings |
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2025 |
2024 |
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Due after more than five years |
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After more than five years by instalments |
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- |
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- |
- |
Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £744,169 (2024 - £513,266).
Creditors include bank loans repayable by instalments of £ 2,934.00 (2024 - £ 0.00) due after more than five years.
Geometric Manufacturing Ltd
Notes to the Unaudited Financial Statements for the Year Ended 28 February 2025
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Loans and borrowings |
Non-current loans and borrowings
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2025 |
2024 |
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Hire purchase contracts |
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Other borrowings |
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Current loans and borrowings
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2025 |
2024 |
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Hire purchase contracts |
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Other borrowings |
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Related party transactions |
Summary of transactions with other related parties
Income and receivables from related parties
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2025 |
Other related parties |
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Sale of goods |
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Amounts receivable from related party |
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2024 |
Other related parties |
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Sale of goods |
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Expenditure with and payables to related parties
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2025 |
Other related parties |
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Purchase of goods |
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2024 |
Other related parties |
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Purchase of goods |
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Amounts payable to related party |
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Geometric Manufacturing Ltd
Notes to the Unaudited Financial Statements for the Year Ended 28 February 2025
Geometric Manufacturing Ltd
Direct labour expense in the prior year has been reclassified from Administrative Expenses to Cost of Sales to remain comparable with the current year.