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 2018

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

to

6

DIRECTORS:

L C John

K Wakley

Mrs N Martin

S C John

SECRETARY:

K Wakley

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

630,322

466,032

CURRENT ASSETS

Stocks

415,551

416,149

Debtors

6

994,863

1,025,313

Cash at bank and in hand

561,629

284,354

1,972,043

1,725,816

CREDITORS

Amounts falling due within one year

7

785,973

907,311

NET CURRENT ASSETS

1,186,070

818,505

TOTAL ASSETS LESS CURRENT LIABILITIES

1,816,392

1,284,537

PROVISIONS FOR LIABILITIES

78,868

53,045

NET ASSETS

1,737,524

1,231,492

CAPITAL AND RESERVES

Called up share capital

500

500

Non distributable reserve

207,708

207,708

Retained earnings

1,529,316

1,023,284

SHAREHOLDERS' FUNDS

1,737,524

1,231,492

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

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 on 30 January 2019 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 the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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 (£).

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

-

2% on cost

Plant and machinery

-

21% on reducing balance

Fixtures and fittings

-

25% on cost

Motor vehicles

-

20% on reducing balance

Government grants

Government grants are recognised as assets at such time that there is reasonable assurance that the

company will comply with the conditions attached to the grant and that the grant will be received.

Grants are measured at the fair value of the asset receivable.

Grants are recognised as income once any performance related conditions are met.

Where grants are received in advance of the revenue recognition criteria being met, they are

recognised as a liability.

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.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 20 (2017 - 12 ) .

5.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

Totals

£

£

£

£

COST

At 1 May 2017

154,000

2,704,682

-

2,858,682

Additions

19,782

203,968

5,800

229,550

At 30 April 2018

173,782

2,908,650

5,800

3,088,232

DEPRECIATION

At 1 May 2017

-

2,392,650

-

2,392,650

Charge for year

15,400

48,410

1,450

65,260

At 30 April 2018

15,400

2,441,060

1,450

2,457,910

NET BOOK VALUE

At 30 April 2018

158,382

467,590

4,350

630,322

At 30 April 2017

154,000

312,032

-

466,032

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

277,855

308,785

Amounts owed by group undertakings

694,915

694,915

Tax

480

-

Prepayments and accrued income

21,613

21,613

994,863

1,025,313

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade creditors

445,521

505,718

Corporation tax payable

50,555

49,301

Social security and other taxes

150,895

77,308

VAT

37,575

104,472

Other creditors

20,539

-

Directors' current accounts

33,399

59,664

Accruals and deferred income

47,489

110,848

785,973

907,311

8.	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

9.	OTHER FINANCIAL COMMITMENTS

The company has financial commitments in respect of non cancellable operating lease payments

totalling £507,000 (2017 - £585,000). The operating lease is in relation to land and buildings.

10.	RELATED PARTY DISCLOSURES

At the balance sheet date a total amount of £33,399 (2017 - £59,664) was owed to the company

directors. The balances are unsecured, interest free, and repayable on demand.

During the year the directors received remuneration totalling £189,333 (2017 - £12,667).

In addition, consultancy fees of £48,000 (2017 - £48,000) and rent for the company's premises of

£78,000 (2017 - £78,000) were payable to a director during the year.

The parent company is Llanelec Holdings Limited, it is not required to prepare consolidated financial

statements.

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.