Company registration number 01815080 (England and Wales)
GLENDALE ENGINEERING (MILFIELD) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
GLENDALE ENGINEERING (MILFIELD) LIMITED
COMPANY INFORMATION
Directors
Mr G S Wilson
Mr P McKenna
Mr R J Wilson
Secretary
Mr G A Wilson
Company number
01815080
Registered office
Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
United Kingdom
NE3 3LS
Auditor
Azets
Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
NE3 3LS
Business address
Unit B Industrial Estate
Berwick Road
Wooler
Northumberland
United Kingdom
NE71 6AH
Bankers
Lloyds Bank plc
Black Horse House
91 Sandyford Road
Newcastle Upon Tyne
Tyne And Wear
United Kingdom
NE1 8HQ
GLENDALE ENGINEERING (MILFIELD) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
GLENDALE ENGINEERING (MILFIELD) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -

The directors present the strategic report for the year ended 31 October 2024.

Review of the business

Glendale Engineering (Milfield) Limited has had another successful trading year with an increase in turnover of 2.67% However, cost pressures and a reassessment of the value of older stock has resulted in a reduction in operating profit. In spite of the issues noted above, the balance sheet has stabilised with only a small reduction in equity. At 31st October 2024 the total equity was £2,987,830.

Principal risks and uncertainties

The company's activities expose it to a number of financial risks including cash flow risk, credit risk and price risk.

 

Cash flow risk

The liquidity of the company is monitored by the directors, who ensure that the company has sufficient working capital.

 

Credit Risk

The company's credit risk is primarily attributable to its trade customers. The company has no significant concentration of credit risk, with exposure being spread over a large customer base. All risks are reduced by the company with the management of project interim payments and creditworthiness procedures.

 

Price Risk

The company is exposed to risk due to product price fluctuations. The directors manage this risk on an ongoing basis by continually monitoring prices to ensure that we remain competitive.

Development and performance

The company has a strong presence in the commercial sector for the design, fabrication and installation of steel structures. They will look to develop this in the current year.

 

The company also has a strong presence in the farming sector for the manufacture and installation of farm buildings and also the design and manufacture of farm equipment. This reputation has been built up over many years and the company will look to develop this area in the current year.

Key performance indicators

The directors consider the key performance indicators (KPI's) to be turnover, operating profit and net assets, which based on continuing operations are the most effective measure of the progress.

 

 

2024

2023

Turnover

£9,485,409

£9,238,260

Operating Profit

£124,403

£548,371

Net Assets

£2,987,830

 

£3,100,363

On behalf of the board

Mr P McKenna
Director
5 June 2025
GLENDALE ENGINEERING (MILFIELD) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 October 2024.

Principal activities

The principal activity of the company continued to be that of design and construction of steel structures for the retail and house sector together with the manufacture of agricultural implements, agricultural buildings and engineering.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £216,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr G A Wilson
(Resigned 14 March 2025)
Mr G S Wilson
Mr P McKenna
Mr R J Wilson
Post reporting date events

On 14th March 2025 all shares in the company were sold by the shareholders to Glendale Engineering Holdings Limited.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr P McKenna
Director
5 June 2025
GLENDALE ENGINEERING (MILFIELD) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -

The directors are responsible for preparing the annual 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:

 

 

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.

GLENDALE ENGINEERING (MILFIELD) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GLENDALE ENGINEERING (MILFIELD) LIMITED
- 4 -

Qualified opinion on financial statements

We have audited the financial statements of Glendale Engineering (Milfield) Limited (the 'company') for the year ended 31 October 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the effects of the matters described in the basis for qualified opinion paragraph, the financial statements:

Basis for qualified opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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.

 

Stock

We were not appointed as auditor of the company until after 31 October 2022 and thus did not observe the counting of physical inventories at the end of that year. In consequence, we were unable to carry out audit procedures necessary to obtain adequate assurance regarding the quantity of £896,232 and conditions of stocks appearing in the financial statements at 31 October 2022. There were no other satisfactory audit procedures we could adopt to obtain sufficient evidence regarding the existence and quantity of stocks. There was also insufficient documentation to support the valuation of several items of stock at 31 October 2022, where stocks are held at the lower of cost and net realisable value as we were unable to obtain sufficient evidence to support the original cost of stock items. Accordingly, we were not able to obtain sufficient appropriate audit evidence to provide a basis of opinion on stocks as at 31 October 2022 or whether there was any consequential effect on the cost of sales for the year ended 31 October 2023.

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.

GLENDALE ENGINEERING (MILFIELD) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GLENDALE ENGINEERING (MILFIELD) LIMITED
- 5 -

Other information

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:

Matters on which we are required to report by exception

In respect solely of the limitation on our work relating to stock, described above:

 

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

GLENDALE ENGINEERING (MILFIELD) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GLENDALE ENGINEERING (MILFIELD) LIMITED
- 6 -
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 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

We identified the following applicable laws and regulations as those most likely to have a material impact on the financial statements: health and safety, employment law (including the Working Time Directive), and compliance with the UK Companies Act.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. The primary responsibility for the prevention and detection of fraud rests with both those charged with governance and management.

GLENDALE ENGINEERING (MILFIELD) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GLENDALE ENGINEERING (MILFIELD) LIMITED
- 7 -

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in 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.

Graham Fitzgerald BA FCA DChA
Senior Statutory Auditor
For and on behalf of Azets
5 June 2025
2025-06-05
Chartered Accountants
Statutory Auditor
Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
NE3 3LS
GLENDALE ENGINEERING (MILFIELD) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
9,485,409
9,238,260
Cost of sales
(7,443,568)
(6,765,023)
Gross profit
2,041,841
2,473,237
Administrative expenses
(1,921,788)
(1,924,866)
Other operating income
4,350
-
0
Operating profit
4
124,403
548,371
Interest receivable and similar income
7
25,450
6,365
Interest payable and similar expenses
8
(11,722)
(19,559)
Profit before taxation
138,131
535,177
Tax on profit
9
(34,664)
(114,104)
Profit for the financial year
103,467
421,073

The profit and loss account has been prepared on the basis that all operations are continuing operations.

GLENDALE ENGINEERING (MILFIELD) LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2024
31 October 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,327,474
1,420,285
Current assets
Stocks
13
656,441
967,326
Debtors
14
2,055,745
1,998,139
Cash at bank and in hand
863,755
906,119
3,575,941
3,871,584
Creditors: amounts falling due within one year
15
(1,504,613)
(1,669,818)
Net current assets
2,071,328
2,201,766
Total assets less current liabilities
3,398,802
3,622,051
Creditors: amounts falling due after more than one year
16
(83,166)
(170,939)
Provisions for liabilities
Deferred tax liability
18
327,806
350,749
(327,806)
(350,749)
Net assets
2,987,830
3,100,363
Capital and reserves
Called up share capital
20
1,714
1,714
Profit and loss reserves
2,986,116
3,098,649
Total equity
2,987,830
3,100,363
The financial statements were approved by the board of directors and authorised for issue on 5 June 2025 and are signed on its behalf by:
Mr P McKenna
Director
Company Registration No. 01815080
GLENDALE ENGINEERING (MILFIELD) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 November 2022
1,714
2,933,576
2,935,290
Year ended 31 October 2023:
Profit and total comprehensive income for the year
-
421,073
421,073
Dividends
10
-
(256,000)
(256,000)
Balance at 31 October 2023
1,714
3,098,649
3,100,363
Year ended 31 October 2024:
Profit and total comprehensive income for the year
-
103,467
103,467
Dividends
10
-
(216,000)
(216,000)
Balance at 31 October 2024
1,714
2,986,116
2,987,830
GLENDALE ENGINEERING (MILFIELD) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
669,533
1,127,874
Interest paid
(11,722)
(19,559)
Income taxes paid
(136,930)
(79,982)
Net cash inflow from operating activities
520,881
1,028,333
Investing activities
Purchase of tangible fixed assets
(112,105)
(161,182)
Proceeds on disposal of tangible fixed assets
17,000
69,262
Loan repayments/(advances)
(264,162)
(183,237)
Interest received
25,450
6,365
Net cash used in investing activities
(333,817)
(268,792)
Financing activities
Repayment of bank loans
-
0
(225,000)
Payment of hire purchase obligations
(229,428)
(140,479)
Net cash used in financing activities
(229,428)
(365,479)
Net (decrease)/increase in cash and cash equivalents
(42,364)
394,062
Cash and cash equivalents at beginning of year
906,119
512,057
Cash and cash equivalents at end of year
863,755
906,119
GLENDALE ENGINEERING (MILFIELD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
1
Accounting policies
Company information

Glendale Engineering (Milfield) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Bulman House, Regent Centre, Gosforth, Newcastle upon Tyne, United Kingdom, NE3 3LS.

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 amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. Contracts are assessed on an individual basis.The stage of completion is calculated by comparing costs incurred, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

 

In accordance with FRS 102, Section 23, the amount by which recorded turnover is in excess of payments on account is classified as 'gross amounts owed from contract customers' and separately disclosed within debtors. The balance of payments on account, in excess of amounts matched with turnover, and offset against long term contract balances, is classified 'payments received on account' and separately disclosed within creditors.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

GLENDALE ENGINEERING (MILFIELD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 13 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and machinery
20% per annum reducing balance
Fixtures, fittings & equipment
25% per annum reducing balance
Motor vehicles
25% per annum reducing balance
Other assets
5% per annum straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

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.

GLENDALE ENGINEERING (MILFIELD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

GLENDALE ENGINEERING (MILFIELD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 15 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

GLENDALE ENGINEERING (MILFIELD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 16 -
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. 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Revenue recongition on long term contracts

The company's revenue recognition policy for long term contracts is set out in accounting policies and is central to how the company values work performed in each financial period.Quantity surveyors provide the majority of estimates required, but this is overseen by the directors who have substantial experience in this field. The closing amounts recoverable on contracts at 31 October 2024 is £835,352 (2023: £438,472) with £0 payments on account (2023: £0).

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Sales of goods
1,123,183
1,342,315
Rendering of services
811,989
956,127
Contract revenue
7,550,237
6,939,818
9,485,409
9,238,260
2024
2023
£
£
Other revenue
Interest income
25,450
6,365
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
13,655
10,340
Depreciation of owned tangible fixed assets
197,111
209,324
Depreciation of tangible fixed assets held under finance leases
122,170
116,790
Profit on disposal of tangible fixed assets
(11,870)
(22,433)
GLENDALE ENGINEERING (MILFIELD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 17 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Cost of sales
37
39
Administration
14
14
Directors
4
4
Total
55
57

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,820,125
1,791,822
Social security costs
181,596
170,917
Pension costs
72,746
62,595
2,074,467
2,025,334
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
214,115
228,927
Company pension contributions to defined contribution schemes
39,548
29,566
253,663
258,493

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
83,052
87,115
Company pension contributions to defined contribution schemes
5,009
5,245
GLENDALE ENGINEERING (MILFIELD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 18 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
25,450
6,365
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
25,450
6,365
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
5,372
Other finance costs:
Interest on finance leases and hire purchase contracts
11,722
14,187
11,722
19,559
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
57,619
136,942
Adjustments in respect of prior periods
(11)
-
0
Total current tax
57,608
136,942
Deferred tax
Origination and reversal of timing differences
(22,944)
(22,838)
Total tax charge
34,664
114,104

The UK corporation tax rate increased to 25% from 1 April 2023.

GLENDALE ENGINEERING (MILFIELD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
9
Taxation
(Continued)
- 19 -

The actual 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:

2024
2023
£
£
Profit before taxation
138,131
535,177
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.52%)
34,533
120,510
Tax effect of expenses that are not deductible in determining taxable profit
515
838
Adjustments in respect of prior years
(11)
-
0
Effect of change in corporation tax rate
(277)
(2,268)
Permanent capital allowances in excess of depreciation
-
0
(4,790)
Other permanent differences
(96)
(186)
Taxation charge for the year
34,664
114,104
10
Dividends
2024
2023
£
£
Final paid
216,000
256,000
11
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Other assets
Total
£
£
£
£
£
Cost
At 1 November 2023
3,146,014
105,170
308,209
132,000
3,691,393
Additions
209,800
-
0
21,800
-
0
231,600
Disposals
(38,175)
-
0
-
0
-
0
(38,175)
At 31 October 2024
3,317,639
105,170
330,009
132,000
3,884,818
Depreciation and impairment
At 1 November 2023
2,053,158
78,432
113,668
25,850
2,271,108
Depreciation charged in the year
252,281
6,685
53,715
6,600
319,281
Eliminated in respect of disposals
(33,045)
-
0
-
0
-
0
(33,045)
At 31 October 2024
2,272,394
85,117
167,383
32,450
2,557,344
Carrying amount
At 31 October 2024
1,045,245
20,053
162,626
99,550
1,327,474
At 31 October 2023
1,092,856
26,738
194,541
106,150
1,420,285
GLENDALE ENGINEERING (MILFIELD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
11
Tangible fixed assets
(Continued)
- 20 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Plant and machinery
372,296
378,974
Motor vehicles
94,279
125,705
466,575
504,679
12
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
2,830,301
2,818,336
Carrying amount of financial liabilities
Measured at amortised cost
1,460,395
1,535,148
13
Stocks
2024
2023
£
£
Raw materials and consumables
656,441
967,326
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,012,694
1,336,162
Gross amounts owed by contract customers
835,352
438,472
Other debtors
118,500
137,583
Prepayments and accrued income
89,199
85,922
2,055,745
1,998,139
GLENDALE ENGINEERING (MILFIELD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 21 -
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
17
90,711
112,871
Payments received on account
-
0
85,285
Trade creditors
1,219,354
956,246
Corporation tax
57,619
136,942
Other taxation and social security
69,765
168,667
Other creditors
45,640
93,512
Accruals and deferred income
21,524
116,295
1,504,613
1,669,818
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
17
83,166
170,939
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
98,872
124,634
In two to five years
95,824
193,910
194,696
318,544
Less: future finance charges
(20,819)
(34,734)
173,877
283,810

Finance lease payments represent rentals payable by the company for certain items of plant and machinery and commercial vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
327,806
350,749
GLENDALE ENGINEERING (MILFIELD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
18
Deferred taxation
(Continued)
- 22 -
2024
Movements in the year:
£
Liability at 1 November 2023
350,749
Credit to profit or loss
(22,943)
Liability at 31 October 2024
327,806

Deferred tax of £70,000 is expected to reverse in the next year and relates to accelerated capital allowances that are expected to mature within the same period.

19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
72,746
62,595

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
1,712
1,712
1,712
1,712
Ordinary E of £1 each
2
2
2
2
1,714
1,714
1,714
1,714

Both the Ordinary shares and E Ordinary shares hold voting and distribution rights. A material event for an E Ordinary shareholder, resulting in their inability to continue in their previous capacity for 12 months, will result in the E shares held by this shareholder ceasing to confer any voting rights and right to appoint a Director.

21
Operating lease commitments

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:

2024
2023
£
£
Within one year
69,087
78,556
Between two and five years
160,014
185,618
In over five years
109,475
142,129
338,576
406,303
GLENDALE ENGINEERING (MILFIELD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 23 -
22
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Sales
2024
2023
£
£
Other related parties
-
0
165,500
Leases
2024
2023
£
£
Other related parties
107,784
107,784

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Other related parties
176,667
136,667
Other information

The amount due from other related parties of £176,667 (2023: £136,667) is made up as follows. £116,667 (2023: £136.667) relates to a loan to a partnership. G.A. Wilson & G.S. Wilson who are shareholders in the company are also partners in this partnership. This is an interest free loan being repaid over 10 years. £60,000 (2023: 0) is due from Riverside Complex Ltd, a company of which Paul McKenna is a director.

 

Also, during the year, dividends of £10,200 were paid to The Richard Wilson Life Interest Trust, a trust of which G.A. Wilson & R.J. Wilson, directors of the company are also trustees.

23
Directors' transactions

Dividends totalling £205,800 (2023 - £256,000) were paid in the year in respect of shares held by the company's directors.

24
Post Balance Sheet Event

On 14th March 2025 all shares in the company were sold by the shareholders to Glendale Engineering Holdings Limited.

GLENDALE ENGINEERING (MILFIELD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 24 -
25
Analysis of changes in net funds
1 November 2023
Cash flows
New finance leases
31 October 2024
£
£
£
£
Cash at bank and in hand
906,119
(42,364)
-
863,755
Obligations under hire purchase
(283,810)
229,428
(119,495)
(173,877)
622,309
187,064
(119,495)
689,878
26
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
103,467
421,073
Adjustments for:
Taxation charged
34,664
114,104
Finance costs
11,722
19,559
Investment income
(25,450)
(6,365)
Gain on disposal of tangible fixed assets
(11,870)
(22,433)
Depreciation and impairment of tangible fixed assets
319,281
326,114
Movements in working capital:
Decrease/(increase) in stocks
310,885
(71,094)
(Increase)/decrease in debtors
(57,606)
837,016
Decrease in creditors
(15,560)
(490,100)
Cash generated from operations
669,533
1,127,874
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