Llanelec Precision Engineering Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 02134577

LLANELEC PRECISION ENGINEERING COMPANY

LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2021

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

to

8

DIRECTORS:

L C John

K Wakley

Mrs N Martin

S C John

REGISTERED OFFICE:

Jenkins Road

Neath Abbey Industrial Estate

Skewen

Neath

SA10 7GA

REGISTERED NUMBER:

02134577

SENIOR STATUTORY AUDITOR:

Brian Garland

AUDITORS:

Gerald Thomas

Chartered Accountants and Statutory Auditor

3 New Mill Court

Swansea Enterprise Park

Swansea

SA7 9FG

FIXED ASSETS

Tangible assets

5

1,293,864

776,056

CURRENT ASSETS

Stocks

394,123

479,930

Debtors

6

3,782,092

3,192,558

Cash at bank and in hand

1,781,313

1,349,544

5,957,528

5,022,032

CREDITORS

Amounts falling due within one year

7

2,022,947

1,697,935

NET CURRENT ASSETS

3,934,581

3,324,097

TOTAL ASSETS LESS CURRENT LIABILITIES

5,228,445

4,100,153

PROVISIONS FOR LIABILITIES

213,806

139,396

NET ASSETS

5,014,639

3,960,757

CAPITAL AND RESERVES

Called up share capital

500

500

Non distributable reserve

207,708

207,708

Retained earnings

4,806,431

3,752,549

SHAREHOLDERS' FUNDS

5,014,639

3,960,757

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 20 April 2022 and were signed on its behalf by:

K Wakley - Director

1.	COMPANY INFORMATION

Llanelec Precision Engineering Company Limited is a limited company, limited by shares, and incorporated in England and Wales. The registered office is:

Jenkins Road

Neath Abbey Industrial Estate

Skewen

Neath

SA10 7GA

The company's principal activity is mechanical engineering.

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost basis. The financial statements are presented in Sterling (£).

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors which are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision only effects that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The following are the critical judgements that the directors have made in the process of applying the company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Impairment of tangible fixed assets

Tangible fixed assets are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the income statement.

Provisions and contingencies

Provisions are recognised when the company has a present obligation as a result of a past event and a reliable estimate can be made of a probable adverse outcome. Otherwise, material contingent liabilities are disclosed unless a transfer of economic benefits is considered remote. Contingent assets are only disclosed if an inflow of economic benefits is probable.

Turnover

Turnover represents amounts derived from the provision of goods and services which fall within the company's ordinary activities after deduction of trade discounts and value added tax.

The turnover, which arises in the United Kingdom, is attributable to the company's principal activity.

Revenue recognition

Revenue is recognised on despatch of goods from the company's premises.

Tangible fixed assets

Tangible fixed assets are stated at cost, net of depreciation and any provision for impairment.

Depreciation is provided at the following annual rates in order to write down fixed assets over their useful economic lives:

Improvements to property

-

10% on cost

Plant and machinery

-

10% on cost

Fixtures and fittings

-

25% on cost

Motor vehicles

-

25% on cost

Stocks

Stocks and work-in-progress are stated at the lower of cost and net realisable value. Cost includes materials, direct labour and production overheads appropriate to the relevant stage of production. Net realisable value is based on estimated selling price less all further costs to completion and all relevant marketing, selling and distribution costs.

Financial instruments

The company only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred taxation

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Operating leases

Rental costs under operating leases are charged to the income and expenditure account in equal annual amounts over the period of the lease.

Going concern

In preparing the financial statements, the directors have considered the current financial position of the company and its likely future cash flows.

The company has reported a profit for the year, and has both net current assets and net assets at the balance sheet date.

The directors have considered the potential impact of the Coronavirus pandemic and Brexit on future trading, and recognise that the situation is still evolving. The potential impacts are uncertain, however at present the directors do not have any significant concerns. The directors have taken steps to mitigate any likely risks to the business and are confident that the company will continue to trade profitably for the foreseeable future.

Accordingly, the directors continue to prepare the financial statements on a going concern basis.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 22 (2020 - 25 ) .

5.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1 May 2020

242,873

3,088,048

15,514

Additions

-

552,509

74,976

At 30 April 2021

242,873

3,640,557

90,490

DEPRECIATION

At 1 May 2020

53,931

2,550,560

6,671

Charge for year

24,287

84,576

4,219

At 30 April 2021

78,218

2,635,136

10,890

NET BOOK VALUE

At 30 April 2021

164,655

1,005,421

79,600

At 30 April 2020

188,942

537,488

8,843

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 May 2020

33,375

14,000

3,393,810

Additions

-

13,447

640,932

At 30 April 2021

33,375

27,447

4,034,742

DEPRECIATION

At 1 May 2020

6,592

-

2,617,754

Charge for year

8,344

1,698

123,124

At 30 April 2021

14,936

1,698

2,740,878

NET BOOK VALUE

At 30 April 2021

18,439

25,749

1,293,864

At 30 April 2020

26,783

14,000

776,056

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

1,228,439

824,861

Amounts owed by group undertakings

2,344,915

2,344,915

Amounts recoverable on contract

185,956

-

Prepayments and accrued income

22,782

22,782

3,782,092

3,192,558

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Hire purchase contracts (see note 8)

53,394

35,871

Trade creditors

741,531

645,817

Corporation tax payable

108,026

336,259

Social security and other taxes

178,509

168,026

VAT

575,988

375,767

Other creditors

37,493

10,679

Directors' current accounts

80,451

48,664

Accruals and deferred income

247,555

76,852

2,022,947

1,697,935

8.	LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2021

2020

£

£

Net obligations repayable:

Within one year

53,394

35,871

9.	SECURED DEBTS

The following secured debts are included within creditors:

2021

2020

£

£

Hire purchase contracts

53,394

35,871

Hire purchase liabilities are secured against the assets to which they relate.

10.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Brian Garland (Senior Statutory Auditor)

For and on behalf of Gerald Thomas

11.	CAPITAL COMMITMENTS

2021

2020

£

£

Contracted but not provided for in the

financial statements

1,800,000

150,000

The capital commitment relates to the purchase of a new premises and the purchase of machinery.

12.	OTHER FINANCIAL COMMITMENTS

The company has financial commitments in respect of non cancellable operating lease payments totalling £273,000 (2020 - £351,000). The operating lease is in relation to land and buildings.

13.	RELATED PARTY DISCLOSURES

At the balance sheet date a total amount of £80,451 (2020 - £48,664) was owed to the company directors. The balances are unsecured, interest free, and repayable on demand.

Consultancy fees totalling £48,000 (2020 - £48,000) and rent for the company's premises of £90,000 (2020 - £78,000) were payable to directors during the year.

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with members within the group where subsidiaries are wholly owned.