Company Registration No. 00794972 (England and Wales)
INSTRO PRECISION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
INSTRO PRECISION LIMITED
COMPANY INFORMATION
Directors
Mr N Yarden
Mr M C S Fausset
Mr J F Knight
(Appointed 31 July 2021)
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
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 20
INSTRO PRECISION LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
- 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
As a result of the company’s performance in 2019, the Directors have undertaken a thorough review of the business and took some major steps that contributed to the overall improvement in the financial indicators in 2020. Overall, despite COVID-19 the company met the budget objectives as set by the directors, i.e. turnover, operating profit and cash-flow. The main actions taken by the directors were:
-
Personnel changes in the senior management team
-
Cost reduction in the company overhead
-
Reorganized sales and business development functions with a new strategic direction
-
Improved governance, implementing key performance indicators and management routines
-
Invested in staff well-being, engagement and motivation
-
Improved alignment with the wider corporate and group
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 and refreshing the product line.
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 such as: on time delivery, quality performance etc. are associated with the company’s ability to maintain its existing customer base and attract new customer
s
and are being monitored on monthly basis.
The company completed 2020 with a strong backlog that will support 2021 turnover figures, and with the other actions described above, the directors are confident that the company will keep up this positive momentum and continue to grow in 2021.
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.
Mr N Yarden
Director
29 September 2021
INSTRO PRECISION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2020.
Directors
The Directors who served during the year were:
Mr N Yarden
Mr M C S Fausset
Ms J L Brook
(Resigned 24 April 2020)
Mr M E W Chuter
(Appointed 24 April 2020 and resigned 31 July 2021)
Mr J F Knight
(Appointed 31 July 2021)
Results and dividends
The
profit
for the year, after taxation, amounted to £
30,498
(201
9
loss
- £
1,820,121
).
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.
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.
Other matters
On 11 March 2020, the World Health Organisation officially declared COVID-19, the disease caused by novel coronavirus, a pandemic. Management is closely monitoring the evolution of this pandemic, including how it may affect the company, the economy and the general population. We have an appropriate response plan in place, and we will continue to monitor and assess the ongoing development and respond accordingly.
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.
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.
INSTRO PRECISION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 3 -
On behalf of the board
Mr N Yarden
Director
29 September 2021
INSTRO PRECISION LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2020
- 4 -
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.
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 2020 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including 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 2020 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
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
Based on our understanding of the industry, we identified that the principal risks of non-compliance related to health and safety and environmental regulations. We considered the extent to which non-compliance might have a material affect on the financial statements. We also considered those laws and regulations that have a direct impact on preparation of the financial statements, such as the Companies Act 2006. We examined management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of overriding of controls) and determined that the principal risks were relating to management bias in accounting estimates, in particular those relating to stock and warranty provisioning. We also discussed with management the possibility of non-compliance with health and safety and environmental regulations and reviewed the management controls in place to detect such irregularities. Audit procedures included challenging assumptions made by management in their significant accounting estimates. There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions described in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one due to error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
INSTRO PRECISION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INSTRO PRECISION LIMITED
- 7 -
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
29 September 2021
Chartered Accountants
Statutory Auditor
34 High Street
Aldridge
Walsall
West Midlands
WS9 8LZ
INSTRO PRECISION LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2020
- 8 -
2020
2019
Notes
£
£
Turnover
3
7,614,066
5,275,976
Cost of sales
(4,598,087)
(4,353,812)
Gross profit
3,015,979
922,164
Administrative expenses
(3,019,115)
(3,654,515)
Other operating income
61,503
380
Profit on disposal of freehold property
4
385,800
Operating profit/(loss)
5
58,367
(2,346,171)
Interest receivable and similar income
8
1,214
15,492
Interest payable and similar expenses
9
(2,836)
Profit/(loss) before taxation
56,745
(2,330,679)
Tax on profit/(loss)
10
(26,247)
510,558
Profit/(loss) for the financial year
30,498
(1,820,121)
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 2020
31 December 2020
- 9 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
11
3,126,137
3,154,404
Current assets
Stocks
12
1,331,483
1,438,763
Debtors
13
3,748,718
2,234,855
Cash at bank and in hand
319,989
3,651,310
5,400,190
7,324,928
Creditors: amounts falling due within one year
14
(3,283,682)
(5,441,237)
Net current assets
2,116,508
1,883,691
Total assets less current liabilities
5,242,645
5,038,095
Provisions for liabilities
Provisions
15
410,416
239,641
Deferred tax liability
16
97,277
94,000
(507,693)
(333,641)
Net assets
4,734,952
4,704,454
Capital and reserves
Called up share capital
18
141,060
141,060
Share premium account
527,380
527,380
Other reserves
848
848
Profit and loss reserves
4,065,664
4,035,166
Total equity
4,734,952
4,704,454
The financial statements were approved by the board of directors and authorised for issue on 29 September 2021 and are signed on its behalf by:
Mr N Yarden
Director
Company Registration No. 00794972
INSTRO PRECISION LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2020
- 10 -
Share capital
Share premium account
Revaluation reserve
Other reserves
Profit and loss reserves
Total
£
£
£
£
£
£
Balance at 1 January 2019
141,060
527,380
104,074
848
5,751,213
6,524,575
Year ended 31 December 2019:
Loss and total comprehensive income for the year
-
-
-
-
(1,820,121)
(1,820,121)
Other movements
-
(104,074)
-
104,074
-
Balance at 31 December 2019
141,060
527,380
848
4,035,166
4,704,454
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
-
-
-
30,498
30,498
Balance at 31 December 2020
141,060
527,380
848
4,065,664
4,734,952
INSTRO PRECISION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
- 11 -
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.
true
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 2020
1
Accounting policies
(Continued)
- 12 -
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.
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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
INSTRO PRECISION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 13 -
1.8
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.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
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.
1.11
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.12
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 £.
1.13
Research and development expenditure is written off in the year in which it is incurred.
INSTRO PRECISION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 14 -
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.
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:
2020
2019
£
£
Turnover analysed by class of business
United Kingdom
1,259,430
1,230,699
Overseas
6,354,636
4,045,277
7,614,066
5,275,976
2020
2019
£
£
Other significant revenue
Interest income
1,214
15,492
Grants received
61,503
4
Exceptional item
2020
2019
£
£
Expenditure
Profit on disposal of freehold property
-
(385,800)
INSTRO PRECISION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 15 -
5
Operating profit/(loss)
2020
2019
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(42,928)
20,643
Research and development costs
93,434
59,583
Government grants
(61,503)
Fees payable to the company's auditor for the audit of the company's financial statements
15,000
20,450
Depreciation of owned tangible fixed assets
260,687
260,310
Profit on disposal of tangible fixed assets
(826)
(1,822)
Operating lease charges
386,500
378,548
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Office and management
16
43
Production and sales
54
52
70
95
Their aggregate remuneration comprised:
2020
2019
£
£
Wages and salaries
2,539,259
3,074,923
Social security costs
251,750
340,895
Pension costs
92,128
123,112
2,883,137
3,537,342
7
Directors' remuneration
2020
2019
£
£
Remuneration for qualifying services
44,094
257,745
Company pension contributions to defined contribution schemes
3,818
21,150
47,912
278,895
INSTRO PRECISION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
7
Directors' remuneration
(Continued)
- 16 -
Certain 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.
8
Interest receivable and similar income
2020
2019
£
£
Interest income
Interest on bank deposits
1,214
15,492
9
Interest payable and similar expenses
2020
2019
£
£
Other interest
2,836
10
Taxation
2020
2019
£
£
Current tax
UK corporation tax on profits for the current period
16,195
(622,468)
Adjustments in respect of prior periods
6,775
(15,067)
Total current tax
22,970
(637,535)
Deferred tax
Origination and reversal of timing differences
3,277
112,188
Previously unrecognised tax loss, tax credit or timing difference
14,789
Total deferred tax
3,277
126,977
Total tax charge/(credit)
26,247
(510,558)
INSTRO PRECISION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
10
Taxation
(Continued)
- 17 -
The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2020
2019
£
£
Profit/(loss) before taxation
56,745
(2,330,679)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2019: 19.00%)
10,782
(442,829)
Tax effect of expenses that are not deductible in determining taxable profit
58
1,243
Tax effect of income not taxable in determining taxable profit
(157)
(73,302)
Adjustments in respect of prior years
6,775
Depreciation in excess of capital allowances
4,749
4,330
Other timing differences
763
Deferred tax
3,277
Taxation charge/(credit) for the year
26,247
(510,558)
11
Tangible fixed assets
Leasehold property
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2020
2,968,358
3,401,904
25,090
6,395,352
Additions
223,651
8,769
232,420
Disposals
(467,368)
(467,368)
At 31 December 2020
3,192,009
2,943,305
25,090
6,160,404
Depreciation and impairment
At 1 January 2020
91,993
3,123,865
25,090
3,240,948
Depreciation charged in the year
125,175
135,512
260,687
Eliminated in respect of disposals
(467,368)
(467,368)
At 31 December 2020
217,168
2,792,009
25,090
3,034,267
Carrying amount
At 31 December 2020
2,974,841
151,296
3,126,137
At 31 December 2019
2,876,365
278,039
3,154,404
INSTRO PRECISION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 18 -
12
Stocks
2020
2019
£
£
Raw materials and consumables
1,151,125
824,074
Work in progress
180,358
458,261
Finished goods and goods for resale
156,428
1,331,483
1,438,763
13
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
1,553,156
1,019,230
Corporation tax recoverable
573,542
596,512
Amounts owed by group undertakings
1,298,269
311,619
Other debtors
106,967
110,403
Prepayments and accrued income
216,784
197,091
3,748,718
2,234,855
14
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
1,229,370
740,359
Amounts owed to group undertakings
1,235,913
3,818,899
Taxation and social security
64,000
76,952
Other creditors
347,852
411,127
Accruals and deferred income
406,547
393,900
3,283,682
5,441,237
15
Provisions for liabilities
2020
2019
£
£
Contract provisions
154,540
-
Warranty provisions
255,876
239,641
410,416
239,641
INSTRO PRECISION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
15
Provisions for liabilities
(Continued)
- 19 -
Movements on provisions:
Contract provisions
Warranty provisions
Total
£
£
£
At 1 January 2020
-
239,641
239,641
Additional provisions in the year
154,540
16,235
170,775
At 31 December 2020
154,540
255,876
410,416
Provisions consist of warranty and other contractual provisions. The company expects that most of the work required to deal with these will arise within twelve months of the balance sheet date.
16
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:
Liabilities
Liabilities
2020
2019
Balances:
£
£
Accelerated capital allowances
97,277
94,000
2020
Movements in the year:
£
Liability at 1 January 2020
94,000
Charge to profit or loss
3,277
Liability at 31 December 2020
97,277
17
Retirement benefit schemes
2020
2019
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
92,128
121,524
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 2020
- 20 -
18
Share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
141,060 Ordinary shares of £1 each
141,060
141,060
19
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:
2020
2019
£
£
Within one year
351,199
359,178
Between two and five years
1,058,332
1,045,556
In over five years
5,347,586
5,366,561
6,757,117
6,771,295
20
Capital commitments
2020
2019
£
£
Acquisition of tangible fixed assets
-
81,925
21
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.
22
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.
2020-12-31
2020-01-01
false
CCH Software
CCH Accounts Production 2021.200
No description of principal activity
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