REGISTERED NUMBER: 03800136 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016

FOR

AARON MANUFACTURING LIMITED

Page

Balance sheet

1

Notes to the financial statements

3

Fixed assets

Tangible assets

4

253,886

338,409

Current assets

Stocks

41,000

20,500

Debtors

5

130,134

182,606

Cash at bank and in hand

192,430

139,252

363,564

342,358

Creditors

Amounts falling due within one year

6

262,601

263,401

Net current assets

100,963

78,957

Total assets less current liabilities

354,849

417,366

Creditors

Amounts falling due after more than one year

7

(67,126

)

(117,716

)

Provisions for liabilities

9

(36,248

)

(49,123

)

Net assets

251,475

250,527

Capital and reserves

Called up share capital

10

100

100

Retained earnings

251,375

250,427

Shareholders' funds

251,475

250,527

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2016.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2016 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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 Statement of comprehensive income has not been delivered.

The financial statements were approved by the Board of Directors on 24 April 2017 and were signed on its behalf by:

Mr L Coulling - Director

Mr A Coulling - Director

1.	Statutory information

Aaron Manufacturing Limited is a private company, limited by shares, registered in England and Wales. The company's

registered number is 03800136. The Registered Office and business address is Unit K/L, 25-27 Willis Way, Fleets Industrial

Estate, Poole, BH15 3TD.

2.	Accounting policies

Basis of preparing the financial statements

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. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover represents work undertaken in respect of precision engineering services, excluding value added tax.

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

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Stocks

Stock and Work In Progress are valued at the lower of cost and net realisable value.

Taxation

Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or

past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that

have been enacted or substantively enacted by the balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of

current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing

differences are differences between taxable profits and total comprehensive income as stated in the financial statements

that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are

recognised in the financial statements. 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.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet

date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible

fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

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.

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.

Employer- financed retirement benefit scheme (efrbs)

The Company has established trusts for the benefit of employees and persons connected with them. Monies held in these

trusts are held by independent trustees and managed at their discretion. The trustees are empowered to provide both

retirement and other employee benefits.

Where the company retains future economic benefit from, and has de facto control of the assets and liabilities of the trust,

they are accounted for as assets and liabilities of the company until the earlier of the date that an allocation of trust funds

to employees in respect of past services is declared and the date that assets of the trust vest in identified individuals.

Where monies held in trust are determined by the company on the basis of employee's past services to the business and

the company can obtain no future economic benefit from those monies, such monies, whether in trust or accrued for by

the company are charged to the profit and loss account in the period to which they relate.

Where monies held in a trust are determined by the company on the basis of employees' past services to the business and

are payable after completion of the employment, such monies are charged to the profit and loss account in the period

during which services are rendered by employees.

Financial instruments

Basic financial instruments are initially recognised at transaction price and accounted for according to the substance of the

contractual arrangement, as either financial assets, liabilities or equity instruments. An equity instrument is any contract

that evidences a residual interest in the assets of the company, after deducting all liabilities.

At each balance sheet date, financial instruments are measured at amortised cost using the effective interest method. Any

losses arising from impairment are recognised in the profit and loss account in the period to which they relate.

3.	Employees and directors

The average number of employees during the year was 16 (2015 - 22 ) .

4.	Tangible fixed assets

Fixtures

Plant and

and

Motor

machinery

fittings

vehicles

Totals

£

£

£

£

Cost

At 1 January 2016

1,415,025

59,557

82,644

1,557,226

Additions

4,521

850

-

5,371

Disposals

-

(1,590

)

(12,875

)

(14,465

)

At 31 December 2016

1,419,546

58,817

69,769

1,548,132

Depreciation

At 1 January 2016

1,148,268

38,741

31,808

1,218,817

Charge for year

67,820

5,118

11,690

84,628

Eliminated on disposal

-

(398

)

(8,801

)

(9,199

)

At 31 December 2016

1,216,088

43,461

34,697

1,294,246

Net book value

At 31 December 2016

203,458

15,356

35,072

253,886

At 31 December 2015

266,757

20,816

50,836

338,409

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

£

Cost

At 1 January 2016

and 31 December 2016

263,000

Depreciation

At 1 January 2016

86,000

Charge for year

44,250

At 31 December 2016

130,250

Net book value

At 31 December 2016

132,750

At 31 December 2015

177,000

5.

Debtors: amounts falling due within one year

2016

2015

£

£

Trade debtors

122,092

136,553

Tax

-

36,601

Prepayments and accrued income

8,042

9,452

130,134

182,606

6.

Creditors: amounts falling due within one year

2016

2015

£

£

Hire purchase contracts

50,590

55,903

Trade creditors

7,566

24,279

Tax

35,761

-

Social security and other taxes

10,643

13,764

VAT

31,424

35,573

Other creditors

-

318

Directors' current accounts

122,757

129,974

Accruals and deferred income

3,860

3,590

262,601

263,401

7.

Creditors: amounts falling due after more than one year

2016

2015

£

£

Hire purchase contracts

67,126

117,716

8.	Secured debts

The following secured debts are included within creditors:

2016

2015

£

£

Hire purchase contracts

117,716

229,522

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

9.	Provisions for liabilities

2016

2015

£

£

Deferred tax

Accelerated capital allowances

36,248

49,123

Deferred

tax

£

Balance at 1 January 2016

49,123

Credit to Statement of comprehensive income during year

(12,875

)

Balance at 31 December 2016

36,248

10.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2016

2015

value:

£

£

100

Ordinary

£1

100

100

11.	Contingent liabilities

The Company has appointed assets to Employer financed retirement benefit schemes (efrbs).

Consistent with other companies that have used efrbs as part of tax effective remuneration planning, HM Revenue &

Customs has opened an enquiry.

Protective determinations have been received totalling £423,306 in tax and National Insurance.

This amount has been demanded under retrospective powers given to HM Revenue & Customs on 17 July 2014 and is an

advance payment of the protective determination, prior to the matter being concluded.

The company is required to pay this amount to HMRC whilst the enquiry into the disputed tax and national insurance is

ongoing, however the company is firmly of the view that this additional tax and national insurance is not due and will

continue to argue their case and believe that the payment required to be made under the new legislation will be returned in

full to the company once the enquiry has been satisfactorily brought to a conclusion.

12.	Ultimate controlling party

The company is under the control of its directors who are also shareholders. No one shareholder is deemed to have control

by virtue of their shareholding.