Tritech Precision Products (Yeovil) Ltd - Limited company accounts 18.2

REGISTERED NUMBER: 09432835 (England and Wales)

Report of the Directors and

Financial Statements

for the Year Ended 31 March 2018

for

Tritech Precision Products (Yeovil)

Limited

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

4

Income Statement

6

Other Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Notes to the Financial Statements

10

DIRECTORS:

F D Neterwala

A F Neterwala

S S Docherty

I J Walker

M Parry

S Goodfellow

A R White

S J Goodier

REGISTERED OFFICE:

Bridge Road North

Wrexham Industrial Estate

Clwyd

LL13 9PS

REGISTERED NUMBER:

09432835 (England and Wales)

AUDITORS:

Mitten Clarke Audit Limited

Statutory Auditors

The Glades

Festival Way

Stoke on Trent

Staffordshire

ST1 5SQ

The directors present their report with the financial statements of the company for the year ended 31 March 2018.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the manufacture of aluminium

castings.

DIVIDENDS

An interim dividend of £0.0145 per share was paid on 30 June 2017. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 March 2018 will be £ 40,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2017 to the date of this

report.

F D Neterwala

A F Neterwala

S S Docherty

I J Walker

M Parry

S Goodfellow

A R White

S J Goodier

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors and the financial statements in

accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the

directors have elected to prepare the financial statements in accordance with United Kingdom Generally

Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law

the directors must not approve the financial statements unless they are satisfied that they give a true and fair

view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing

these financial statements, the directors are required to:

-	select suitable accounting policies 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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the

Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that

he ought to have taken as a director in order to make himself aware of any relevant audit information and to

establish that the company's auditors are aware of that information.

AUDITORS

Mitten Clarke Audit Limited, has indicated its willingness to continue in office and will be proposed for

re-appointment in accordance with section 485 Companies Act 2006.

ON BEHALF OF THE BOARD:

M Parry - Director

12 September 2018

Opinion

We have audited the financial statements of Tritech Precision Products (Yeovil) Limited (the 'company') for the

year ended 31 March 2018 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet,

Statement of Changes in Equity and Notes to the Financial Statements, 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).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2018 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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 UK, including the FRC'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.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to

report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the

Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of

assurance conclusion thereon.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. 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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to

report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are

responsible for the preparation of the financial statements and for being satisfied that they give a true and fair

view, and for such internal control as the directors determine necessary to enable the preparation of financial

statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to

continue as a going concern, disclosing, as applicable, matters related to going concern and using the going

concern basis of accounting unless the directors either intend to liquidate the company or to cease operations,

or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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 a Report of the Auditors 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.

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 Report

of the Auditors.

Use of our 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 a Report of the Auditors 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.

Adam Clarke (Senior Statutory Auditor)

for and on behalf of Mitten Clarke Audit Limited

Statutory Auditors

The Glades

Festival Way

Stoke on Trent

Staffordshire

ST1 5SQ

12 September 2018

TURNOVER

6,220,644

5,206,326

Cost of sales

4,822,981

4,045,120

GROSS PROFIT

1,397,663

1,161,206

Administrative expenses

1,346,731

1,027,343

50,932

133,863

Other operating income

5,908

19,901

OPERATING PROFIT

4

56,840

153,764

Interest payable and similar expenses

5

41,417

18,660

PROFIT BEFORE TAXATION

15,423

135,104

Tax on profit

6

(21,625

)

15,298

PROFIT FOR THE FINANCIAL YEAR

37,048

119,806

PROFIT FOR THE YEAR

37,048

119,806

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

37,048

119,806

FIXED ASSETS

Intangible assets

8

751,516

797,309

Tangible assets

9

978,602

814,664

1,730,118

1,611,973

CURRENT ASSETS

Stocks

10

1,874,685

1,823,676

Debtors

11

2,052,165

1,584,687

Cash at bank

-

74,612

3,926,850

3,482,975

CREDITORS

Amounts falling due within one year

12

2,382,854

1,960,684

NET CURRENT ASSETS

1,543,996

1,522,291

TOTAL ASSETS LESS CURRENT LIABILITIES

3,274,114

3,134,264

CREDITORS

Amounts falling due after more than one year

13

(218,986

)

(51,494

)

PROVISIONS FOR LIABILITIES

17

(93,278

)

(117,968

)

NET ASSETS

2,961,850

2,964,802

CAPITAL AND RESERVES

Called up share capital

18

2,750,000

2,750,000

Retained earnings

19

211,850

214,802

SHAREHOLDERS' FUNDS

2,961,850

2,964,802

The financial statements were approved by the Board of Directors on 12 September 2018 and were signed on its behalf by:

I J Walker - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2016

2,750,000

94,996

2,844,996

Changes in equity

Total comprehensive income

-

119,806

119,806

Balance at 31 March 2017

2,750,000

214,802

2,964,802

Changes in equity

Dividends

-

(40,000

)

(40,000

)

Total comprehensive income

-

37,048

37,048

Balance at 31 March 2018

2,750,000

211,850

2,961,850

1.	STATUTORY INFORMATION

Tritech Precision Products (Yeovil) Limited is a private company, limited by shares , registered in England

and Wales. The company's registered number and registered office address can be found on the Company

Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on the assumption that the company is able to carry on

business as a going concern, which the directors consider appropriate having regard to the company's

current and expected performance.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial

statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic

of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of Section 33 Related Party Disclosures paragraph 33.7.

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 that 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 affects only that

period, or in the period of the revision and future periods if the revision affects both current and future

periods.

Critical judgements in applying the Group's accounting policies

In the directors' opinion there are no critical judgements, apart from those involving estimations (dealt

with separately below), that they have made in applying company's accounting policies and that have had

a significant effect on the amounts recognised in the financial statements.

Key sources of estimation uncertainty

The directors consider that the key estimates and assumptions used in preparing the financial statements

are as follows:

- The estimation of the cost of individual stock items from their selling price;

- The estimate of the provision necessary for slow moving stocks

- The economic useful life of tangible fixed assets.

Turnover

Turnover is stated net of VAT and trade discounts. Turnover from the sale of goods is recognised when the

goods are physically delivered to the customer.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2015, is being amortised evenly over its estimated useful life of twenty years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured

at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

3-5 years on a straight line basis

Motor vehicles

-

25% on cost

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due

allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling

costs in bringing stocks to their present location and condition.

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 tax

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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at

the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of

exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the

operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet.

Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held

under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the

shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital

element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of

the lease.

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.

Financial instruments

Financial assets and financial liabilities are recognised when the company becomes a party to the

contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual

arrangements entered into. An equity instrument is any contract that evidences a residual interest in the

assets of the company after deducting all of its liabilities.

(i) Financial assets and liabilities

All financial assets and liabilities are initially measured at transaction price (including transaction costs),

except for those financial assets classified as at fair value through profit or loss, which are initially

measured at fair value (which is normally the transaction price excluding transaction costs), unless the

arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction,

the financial asset or financial liability is measured at the present value of the future payments

discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when

there exists a legally enforceable right to set off the recognised amounts and the company intends either

to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Debt instruments which meet the conditions for basic financial instruments set out by the FRC in

'Amendments to FRS102: Basic Financial Instruments and Hedge Accounting' are subsequently measured at

amortised cost using the effective interest method.

Debt instruments that are classified as payable or receivable within one year on initial recognition and

which meet these conditions are measured at the undiscounted amount of the cash or other consideration

expected to be paid or received, net of impairment.

Financial assets are derecognised when and only when (a) the contractual rights to the cash flows from

the financial asset expire or are settled, (b) the company transfers to another party substantially all of

the risks and rewards of ownership of the financial asset, or (c) the company, despite having retained

some, but not all, significant risks and rewards of ownership, has transferred control of the asset to

another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged,

cancelled or expires.

(ii) Investments and Equity instruments

Investments in non-puttable ordinary shares or preference shares (where the shares are publicly traded or

their fair value can be reliably measured) are measured at fair value through the profit and loss account.

Where fair value cannot be measured reliably, investments are measured at cost less impairment.

In the company balance sheet, investment in subsidiaries are measured at cost less impairment.

Equity instruments issued by the company are recorded at the fair value of cash or other resources

received or receivable net of direct issue costs.

3.	EMPLOYEES AND DIRECTORS

2018

2017

£

£

Wages and salaries

2,322,912

1,936,107

Social security costs

187,707

153,429

Other pension costs

64,880

62,448

2,575,499

2,151,984

The average number of employees during the year was as follows:

2018

2017

Office and management

17

16

Manufacturing

62

59

79

75

2018

2017

£

£

Directors' remuneration

109,237

90,089

Directors' pension contributions to money purchase schemes

5,934

1,727

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2018

2017

£

£

Other operating leases

72,000

72,000

Depreciation - owned assets

206,470

200,191

Depreciation - assets on finance leases

16,891

9,049

Goodwill amortisation

45,793

43,293

Auditors' remuneration

8,000

5,159

Auditors' remuneration for non audit work

2,500

2,211

Foreign exchange differences

(5,908

)

-

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2018

2017

£

£

Bank loan interest

35,460

18,085

Interest on overdue tax

189

-

Hire purchase

5,768

575

41,417

18,660

6.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the profit for the year was as follows:

2018

2017

£

£

Current tax:

UK corporation tax

37,836

69,154

Over provision of prior year

tax

(33,924

)

(13,399

)

Total current tax

3,912

55,755

Deferred tax

(25,537

)

(40,457

)

Tax on profit

(21,625

)

15,298

Reconciliation of total tax (credit)/charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference

is explained below:

2018

2017

£

£

Profit before tax

15,423

135,104

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2017 - 20%)

2,930

27,021

Effects of:

Expenses not deductible for tax purposes

668

368

Adjustments to tax charge in respect of previous periods

(33,924

)

(13,398

)

Change in rate of taxation

-

(6,187

)

Amortisation of goodwill

8,701

8,659

Rounding

-

(1,165

)

Total tax (credit)/charge

(21,625

)

15,298

7.

DIVIDENDS

2018

2017

£

£

Ordinary shares of £1 each

Interim

40,000

-

8.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 April 2017

and 31 March 2018

865,855

AMORTISATION

At 1 April 2017

68,546

Amortisation for year

45,793

At 31 March 2018

114,339

NET BOOK VALUE

At 31 March 2018

751,516

At 31 March 2017

797,309

9.	TANGIBLE FIXED ASSETS

Plant and

Motor

machinery

vehicles

Totals

£

£

£

COST

At 1 April 2017

1,117,128

23,970

1,141,098

Additions

387,299

-

387,299

At 31 March 2018

1,504,427

23,970

1,528,397

DEPRECIATION

At 1 April 2017

314,444

11,990

326,434

Charge for year

218,867

4,494

223,361

At 31 March 2018

533,311

16,484

549,795

NET BOOK VALUE

At 31 March 2018

971,116

7,486

978,602

At 31 March 2017

802,684

11,980

814,664