Company Registration No. 00794972 (England and Wales)
INSTRO PRECISION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
INSTRO PRECISION LIMITED
COMPANY INFORMATION
Directors
Mr N Yarden
Mr E Aharonson
Mr Z Hadad
Mr T Cross
Mr M C S Fausset
Ms J L Brook
(Appointed 23 January 2018)
Company number
00794972
Registered office
Sentinel House
Artillery Way
Discovery Park
Sandwich
Kent
CT13 9FL
Auditor
Edwards
34 High Street
Aldridge
Walsall
West Midlands
WS9 8LZ
Bankers
Lloyds Bank plc
2nd Floor, Gail House
5 Lower Stone Street
Maidstone
Kent
ME15 6NB
INSTRO PRECISION LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 6
Statement of income and retained earnings
7
Statement of financial position
8
Notes to the financial statements
9 - 18
INSTRO PRECISION LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2018
- 1 -
Principal activities
The company is principally engaged in precision engineering and the development and marketing of support equipment for electro optical instruments.
Business review
The result for the year is below the Directors expectations and they acknowledge that the reduced turnover presents challenges for
the business. The reduction in turnover between 2017 and 2018 related to one particular project which came to an end during 2017. A larger follow-on project, with the same customer, is currently undergoing proving trials and is expected to go to contract within the year. However, in the interim period efforts are underway to realize additional turnover from other identified opportunities.
Turnover for the year on the company’s core business remained at a reasonable level compared to 2017, highlighting the strength in the core business. This is the focus of efforts to regain turnover in the short term.
The company continues to have good relationships with its customers and suppliers and enjoys a good reputation for the quality and technical performance of its products. The Directors are concentrating efforts on the further development of the existing customer base as well as forming new customer relationships.
Costs in administration have decreased mainly due to cost control brought into the business in order to keep profitable with the reduced turnover.
The Company is continuing to invest in its future grown by investing in a new purpose built facility, this is a substantial investment and although has suffered contractor delays, the agreement was signed in June 2017 and the business relocated in Q1 of 2019. This will take Instro to the next stage of its development for revenue and profit potential.
The Directors use a number of key performance indicators to monitor and benchmark the performance of the company
and
regard the following as key financial indicators of performance
:
-
Gross profit
-
Operating profit
-
Trade
d
ebtors
Other key non-financial performance indicators are associated with the company’s ability to maintain its existing customer base and attract new customer
s
as well as developing new products to market.
INSTRO PRECISION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
- 2 -
Principal risks and uncertainties
The Directors have previously reviewed the principal risks and uncertainties facing the company, determined which pose the greatest threat, and put in place measures intended to address the threat. Such measures include entering into forward foreign exchange contracts to protect against negative movements in exchange rates and mitigate cash flow risk. However, it is not practicable to eliminate all financial risk, so the Directors have also reassessed the likely effect of those remaining financial risks. At this period end they consider that none are likely to have a material effect upon the company's position, profit for the period, cash flows or liquidity.
Ms J L Brook
Director
17 September 2019
INSTRO PRECISION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2018
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2018.
Directors
The Directors who served during the year were:
Mr I S J Mitchell
(Resigned 10 August 2018)
Mr N Yarden
Mr E Aharonson
Mr Z Hadad
Mr T Cross
Mr M C S Fausset
Ms J L Brook
(Appointed 23 January 2018)
Results and dividends
The profit for the year, after taxation, amounted to £
137,696
(201
7
- £
845,752
).
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors indemnities
The company has granted an indemnity to one or more of its directors against liability in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006. Such qualifying third party indemnity provision remains in force as at the date of approving the directors report.
Market value of land and buildings
Although there have been no formal valuations carried out in the year for the company's land and buildings, the Directors believe the market value to be in excess of book value.
Events after the reporting date
Subsequent to the year end, the company as part of the relocation to a new long term leasehold premises, sold it's freehold land and buildings for £750,000.
Going concern
No material uncertainties that cast significant doubt about the ability of the company to continue as a going concern have been identified by the Directors. On the basis of their assessment of the company's financial position, the Directors have a reasonable expectation that the company will be able to continue in operational existence for the foreseeable future. Accordingly, the Directors continue to adopt the going concern basis in the preparation of these financial statements.
Research and development
The company's activities in research and development are principally concerned with the development of new products and improvement of existing products.
Auditor
In accordance with the company's articles, a resolution proposing that Edwards be reappointed as auditor of the company will be put at a General Meeting.
INSTRO PRECISION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
- 4 -
Statement of directors' responsibilities
The Directors are responsible for preparing the Strategic Report, the Directors' report 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 judgments and estimates that are reasonable and prudent,
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
-
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 of disclosure to auditor
Each of the persons who are Directors at the time when this Directors report is approved have confirmed that so far as they are aware, there is no relevant audit information of which the company's auditor is unaware and that they have taken all steps that ought to have been taken as a Director in order to be aware of any information needed by the company's auditor in connection with preparing its report and to establish that the company's auditor is aware of that information.
On behalf of the board
Ms J L Brook
Director
17 September 2019
INSTRO PRECISION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INSTRO PRECISION LIMITED
- 5 -
Opinion
We have audited the financial statements of Instro Precision Limited (the 'company') for the year ended 31 December 2018 which comprise the statement of income and retained earnings, the statement of financial position 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 FRS 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 December 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.
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
Auditor's
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
.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
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 we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors' r
eport for the financial year 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.
INSTRO PRECISION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INSTRO PRECISION LIMITED
- 6 -
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 identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
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 directors'
r
esponsibilities
s
tatement, 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 is 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.
Auditor's 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 an auditor’s 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.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s 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 auditor's 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.
Paul Tonks BSc (Econ) FCA (Senior Statutory Auditor)
for and on behalf of Edwards
19 September 2019
Chartered Accountants
Statutory Auditor
34 High Street
Aldridge
Walsall
West Midlands
WS9 8LZ
INSTRO PRECISION LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2018
- 7 -
2018
2017
Notes
£
£
Turnover
3
10,373,480
15,432,494
Cost of sales
(6,992,820)
(10,193,976)
Gross profit
3,380,660
5,238,518
Administrative expenses
(3,354,392)
(4,440,243)
Other operating income
73,164
294,176
Operating profit
4
99,432
1,092,451
Interest receivable and similar income
7
32,427
11,795
Fair value gains and losses on foreign exchange contracts
-
(109,262)
Profit before taxation
131,859
994,984
Tax on profit
8
5,837
(149,232)
Profit for the financial year
137,696
845,752
Retained earnings brought forward as previously reported
5,613,517
4,767,765
Retained earnings carried forward
5,751,213
5,613,517
All amounts relate to continuing operations.
There was no other comprehensive income in the period other than the profit for the current period, and as such no separate statement of other comprehensive income has been prepared.
INSTRO PRECISION LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2018
31 December 2018
- 8 -
2018
2017
Notes
£
£
£
£
Fixed assets
Tangible assets
9
1,805,694
1,247,837
Current assets
Stocks
10
1,588,176
1,570,777
Debtors
11
2,567,480
4,771,744
Cash at bank and in hand
3,509,136
4,226,939
7,664,792
10,569,460
Creditors: amounts falling due within one year
12
(2,769,270)
(5,282,542)
Net current assets
4,895,522
5,286,918
Total assets less current liabilities
6,701,216
6,534,755
Provisions for liabilities
13
(176,641)
(147,876)
Net assets
6,524,575
6,386,879
Capital and reserves
Called up share capital
16
141,060
141,060
Share premium account
527,380
527,380
Revaluation reserve
104,074
104,074
Other reserves
848
848
Profit and loss reserves
5,751,213
5,613,517
Total equity
6,524,575
6,386,879
The financial statements were approved by the board of directors and authorised for issue on 17 September 2019 and are signed on its behalf by:
Mr T Cross
Ms J L Brook
Director
Director
Company Registration No. 00794972
INSTRO PRECISION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
- 9 -
1
Accounting policies
Company information
Instro Precision Limited is a limited company domiciled and incorporated in England. The registered office is Sentinel House, Artillery Way, Discovery Park, Sandwich, Kent, CT13 9FL.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares
;
-
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash
f
low and related notes and disclosures
;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
-
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of
Elbit Systems Ltd
. These consolidated financial statements are available from
its website; www.elbitsystems.com.
1.2
Going concern
No material uncertainties that cast significant doubt about the ability of the company to continue as a going concern have been identified by Directors. On the basis of their assessment of the company's financial position, the Directors have a reasonable expectation that the company will be able to continue in operational existence for the foreseeable future. Accordingly, the Directors continue to adopt the going concern basis in the preparation of these financial statements.
1.3
Turnover
Turnover is the total amount, excluding value added tax, receivable by the company in the ordinary course of business for goods supplied and services provided as a principal. Turnover is recognised when goods are dispatched to the customer.
Development contract revenue and associated costs are recognised as revenue and expenses respectively by reference to the stage of completion of the contract activity at the balance sheet date and the anticipated profit at the end of the contract.
INSTRO PRECISION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 10 -
1.4
Tangible fixed assets
Tangible fixed assets are stated at cost of valuation less depreciation. Depreciation is not charged on freehold land. Depreciation on other tangible fixed assets is provided at rates calculated to write off the cost of valuation of those assets, less their estimated residual value, over their expected useful lives on the following bases.
Freehold land and buildings
2-20% per annum on cost or valuation
Leasehold property
10-33% per annum on cost
Plant and equipment
15-33% per annum on cost or book value
Motor vehicles
25-33% per annum on cost
Included within leasehold property are preliminary costs in relation assets yet to be brought into use and are therefore not depreciated.
The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.
1.5
Stocks
Stock and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stock. The cost of stock is determined on a first-in, first-out basis. Net realisable value is based on estimated selling price, less any further costs to realisation.
The cost of work in progress consists of direct materials, labour and an appropriate proportion of fixed and variable overheads. Net realisable value is based on forecast use or estimated selling price, less any further costs of realisation.
1.6
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.7
Deferred tax
Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation, where those transactions will result in an obligation to pay more, or a right to pay less or to receive more tax. There are exceptions as set out below.
A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse, based upon laws enacted or substantively enacted at the balance sheet date.
Deferred tax assets and liabilities are not discounted.
1.8
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
INSTRO PRECISION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 11 -
1.9
Leases
Leases are classified as finance leases when they transfer substantially all the risks and rewards of ownership of the leased assets to the company. Other leases that do not transfer substantially all the risks and rewards of ownership of the leased assets to the company are classified as operating leases.
Rentals under operating leases are charged to the profit and loss account on a straight line basis over the lease term.
1.10
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into Sterling at rates of exchange ruling at the balance sheet date. Gain and losses arising on translation are included in the income statement.
Transactions in foreign currencies are translated into Sterling at the rate ruling on the date of transaction.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
1.11
Research and development expenditure is written off in the year in which it is incurred.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 and that are reviewed on an ongoing basis. Actual results may differ from these estimates.
The estimates and assumption which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are detailed below.
Warranty provision
At the year end, the company identifies any specific contracts where there are known or potential warranty issues. An analysis is prepared outlining the issues, what action needs to be taken, and an assessment of the costs likely to be incurred.
Stock provision
Stock is valued after it has been assessed taking into consideration its age, potential obsolescence and usage against present and future orders.
INSTRO PRECISION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
- 12 -
3
Turnover and other revenue
The whole of turnover is attributable to the company's principal business activity. A geographical analysis of turnover is as follows:
2018
2017
£
£
Turnover analysed by class of business
United Kingdom
1,672,267
7,232,193
Overseas
8,701,213
8,200,301
10,373,480
15,432,494
2018
2017
£
£
Other significant revenue
Interest income
32,427
11,795
Administration fees
73,164
294,176
4
Operating profit
2018
2017
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(33,759)
55,132
Research and development costs
96,588
54,463
Fees payable to the company's auditor for the audit of the company's financial statements
16,950
18,290
Fees payable to the company's auditor for non-audit services
3,500
3,500
Depreciation of owned tangible fixed assets
232,507
233,879
Loss/(profit) on disposal of tangible assets
2,776
(5,105)
Cost of stocks recognised as an expense
4,997,405
8,024,941
Operating lease charges
82,543
103,973
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2018
2017
Number
Number
Office and management
45
46
Production and sales
50
54
95
100
INSTRO PRECISION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
5
Employees
(Continued)
- 13 -
Their aggregate remuneration comprised:
2018
2017
£
£
Wages and salaries
3,185,805
3,553,399
Social security costs
379,315
371,840
Pension costs
123,112
124,645
3,688,232
4,049,884
6
Directors' remuneration
2018
2017
£
£
Remuneration for qualifying services
323,959
487,346
Company pension contributions to defined contribution schemes
31,485
45,962
355,444
533,308
Remuneration disclosed above include the following amounts paid to the highest paid director:
2018
2017
£
£
Remuneration for qualifying services
168,002
142,782
Four of the directors of the company are also directors of a number of companies within the group. These directors emoluments have been borne by other group companies. The directors do not believe that it is practicable to apportion between their services as directors of the company and their services as directors of the other group companies.
7
Interest receivable and similar income
2018
2017
£
£
Interest income
Interest on bank deposits
29,591
11,795
Interest receivable from group companies
2,836
-
Total income
32,427
11,795
INSTRO PRECISION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
- 14 -
8
Taxation
2018
2017
£
£
Current tax
UK corporation tax on profits for the current period
2,932
202,760
Adjustments in respect of prior periods
21,713
(35,672)
Total current tax
24,645
167,088
Deferred tax
Origination and reversal of timing differences
(47,245)
(17,856)
Previously unrecognised tax loss, tax credit or timing difference
16,763
-
Total deferred tax
(30,482)
(17,856)
Total tax (credit)/charge
(5,837)
149,232
The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2018
2017
£
£
Profit before taxation
131,859
994,984
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2017: 19.25%)
25,053
191,534
Tax effect of expenses that are not deductible in determining taxable profit
2,098
7,067
Tax effect of income not taxable in determining taxable profit
-
(982)
Adjustments in respect of prior years
21,713
(35,672)
Research and development tax credit
(30,894)
(10,000)
Depreciation in excess of capital allowances
6,675
15,141
Deferred tax
(30,482)
(17,856)
Taxation (credit)/charge for the year
(5,837)
149,232
Factors that may affect future tax charges
The Finance Act 2016, which was passed on 15 September 2016, provided that the main UK corporation tax rate was reduced to 19% from 1 April 2017 and will be reduced to 17% from 1 April 2020.
INSTRO PRECISION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
- 15 -
9
Tangible fixed assets
Freehold land and buildings
Leasehold property
Plant and equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 January 2018
639,435
462,437
3,368,834
25,090
4,495,796
Additions
-
715,243
77,897
-
793,140
Disposals
-
-
(66,112)
-
(66,112)
At 31 December 2018
639,435
1,177,680
3,380,619
25,090
5,222,824
Depreciation and impairment
At 1 January 2018
269,387
107,183
2,846,902
24,487
3,247,959
Depreciation charged in the year
5,013
23,428
203,463
603
232,507
Eliminated in respect of disposals
-
-
(63,336)
-
(63,336)
At 31 December 2018
274,400
130,611
2,987,029
25,090
3,417,130
Carrying amount
At 31 December 2018
365,035
1,047,069
393,590
-
1,805,694
At 31 December 2017
370,048
355,254
521,932
603
1,247,837
Included in "freehold land and buildings" is freehold land at a valuation of £245,000 (2017 - £245,000) and at a cost of £171,693 (2017 - £171,693) which is not depreciated.
Included within leasehold property is £Nil (2017 - £21,962) which relates to short term leasehold property. The remaining balance of £1,047,069 (2017 - £333,292) relates to costs of a long leasehold property which not in use as at 31 December 2018 and therefore has not been depreciated.
The historical cost of freehold land and buildings included at valuation is £535,361 (2017 - £535,361).
The freehold land and buildings
were revalued at
22 April 1992
by
Messrs Cluttons
,
on the basis of open market value with existing use.
If the company's freehold property were to be sold at its carrying value it is estimated that no tax liability would arise, as indexation would eliminate any capital gain.
If revalued assets were stated on an historical cost basis rather than at fair value, the total amounts included would have been as follows:
2018
2017
£
£
Cost
535,361
535,361
Accumulated depreciation
(258,268)
(253,598)
Carrying value
277,093
281,763
INSTRO PRECISION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
- 16 -
10
Stocks
2018
2017
£
£
Raw materials and consumables
998,771
542,808
Work in progress
422,632
957,847
Finished goods and goods for resale
166,773
70,122
1,588,176
1,570,777
11
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
1,873,737
3,708,461
Corporation tax recoverable
14,893
-
Amounts owed by group undertakings
270,418
941,415
Other debtors
252,748
-
Prepayments and accrued income
122,707
119,373
2,534,503
4,769,249
Deferred tax asset (note 14)
32,977
2,495
2,567,480
4,771,744
12
Creditors: amounts falling due within one year
2018
2017
£
£
Trade creditors
1,359,886
458,280
Amounts owed to group undertakings
564,674
3,067,499
Corporation tax
-
110,730
Other taxation and social security
100,718
423,861
Other creditors
232,277
329,614
Accruals and deferred income
511,715
892,558
2,769,270
5,282,542
13
Provisions for liabilities
2018
2017
£
£
Other provisions
176,641
147,876
INSTRO PRECISION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
13
Provisions for liabilities
(Continued)
- 17 -
Movements on provisions:
Other provisions
£
At 1 January 2018
147,876
Additional provisions in the year
28,765
At 31 December 2018
176,641
Other provisions
"Other provisions" consists of warranty provisions and other contractual commitments. The company expects that most of the work required to deal with these will arise within twelve months of the balance sheet date.
14
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Assets
Assets
2018
2017
Balances:
£
£
Accelerated capital allowances
32,977
2,495
2018
Movements in the year:
£
Liability/(Asset) at 1 January 2018
(2,495)
Credit to profit or loss
(30,482)
Liability/(Asset) at 31 December 2018
(32,977)
15
Retirement benefit schemes
2018
2017
Defined contribution schemes
£
£
Charge to profit and loss in respect of defined contribution schemes
123,112
124,645
The company operates a
number of
defined contribution pension scheme
s
for all qualifying employees.
The assets of the schemes are held separately from those of the company in independently administered funds.
INSTRO PRECISION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
- 18 -
16
Share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
141,060 Ordinary shares of £1 each
141,060
141,060
17
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2018
2017
£
£
Within one year
96,110
86,543
Between two and five years
1,400,707
39,403
In over five years
5,711,561
-
7,208,378
125,946
18
Capital commitments
At the year end the company had commitments to purchase capital items totalling £1,689,242 (2017 - £Nil). This is due to the company relocating to a new premises.
19
Events after the reporting date
Subsequent to the year end, the company as part of the relocation to a new long term leasehold premises, sold it's freehold land and buildings for £750,000.
20
Related party transactions
The company has taken advantage of the exemption conferred within FRS102 section 33.1A not to disclose transactions between wholly owned members of the same group.
21
Ultimate parent undertaking and controlling party
The Directors are of the opinion that the company is ultimately controlled by Elbit Systems Limited, and that its ultimate parent company is Elbit Systems Limited, a company incorporated in Israel.
Elbit Systems Limited is the largest and smallest group for which group financial statements are prepared. The group financial statements of this group are available to the public and may be obtained from www.elbitsystems.com.
2018-12-31
2018-01-01
false
CCH Software
CCH Accounts Production 2019.200
No description of principal activity
Mr I S J Mitchell
Mr I S J Mitchell
Mr E Aharonson
Mr N Yarden
Mr E Aharonson
Mr Z Hadad
Ms J L Brook
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