Company No:
Contents
The directors present their annual report and the unaudited financial statements of the Company for the financial year ended 31 March 2025.
PRINCIPAL ACTIVITIES
Directors' commentary
Overview
EPS’s core activity continued to be the manufacturing and servicing of wide bandsaw blades and tooling for the timber industry. Demand remained steady despite broader economic headwinds, with turnover increasing to £3.84m (2024: £3.33m), reflecting the resilience of our customer base and organic sales growth.
Financial Performance
Profit before taxation for the year was £342k (2024: £863k). The prior year’s result included exceptional income from the sale and leaseback of our Wiveliscombe site, generating a gain of approximately £612k.
Cash reserves strengthened to £535k (2024: £248k), supported by tighter working capital management and a focus on operational efficiency.
Net assets rose to £1.83m (2024: £1.75m).
The Company also completed a share capital reduction during the year, repurchasing 11,780 shares for £35,340.
Gerrymet Limited
On 31 December 2024, the trade, assets, and liabilities of Gerrymet Limited were transferred to EPS, its parent company. This marked the successful completion of a planned intra-group consolidation, simplifying group structure and enabling more effective resource deployment. Gerrymet Ltd ceased trading as an entity on this date and is now dormant. Its final accounts reflect a closing profit of £30k (2024: £21k).
Operational Highlights
Staffing increased to an average of 56 employees (2024: 45), largely due to the transfer of colleagues from Gerrymet Limited.
Ongoing capital investment of nearly £290k was directed at modernising core equipment—central to maintaining our long-term competitiveness.
Gross margin improved modestly to 53.4% (2024: 51.7%), reflecting operational efficiencies despite rising wage and energy costs.
Environmental and Social Commitment
EPS remains committed to responsible and sustainable manufacturing. In partnership with Voestalpine, from June 2024 our bandsaw blades are produced using Green Steel, reducing carbon emissions by over 80% compared to conventional material. EPS is proud to be one of only two companies globally supplying Green Steel to the timber industry.
Outlook
Whilst the broader economic outlook remains uncertain, the timber and tooling sectors continue to show resilience. EPS is well-positioned to support customers with a stable platform, streamlined operations, and a focused team. As we enter 2025/26, we are actively reviewing strategic investments to support controlled earnings growth and enhance long-term shareholder value.
We would like to extend my thanks to our investors, employees, customers, and suppliers for their continued support during these challenging times. We remain committed to supporting sustainable growth everywhere we operate.
DIRECTORS
The directors, who served during the financial year and to the date of this report except as noted, were as follows:
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Approved by the Board of Directors and signed on its behalf by:
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N E Palmer
Director |
| Note | 2025 | 2024 | ||
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| Fixed assets | ||||
| Intangible assets | 3 |
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| Tangible assets | 4 |
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| Investments | 5 |
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| 1,289,594 | 1,647,631 | |||
| Current assets | ||||
| Stocks | 6 |
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| Debtors | 7 |
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| Cash at bank and in hand |
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| 1,717,482 | 1,375,343 | |||
| Creditors: amounts falling due within one year | 8 | (
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| Net current assets | 980,418 | 636,106 | ||
| Total assets less current liabilities | 2,270,012 | 2,283,737 | ||
| Creditors: amounts falling due after more than one year | 9 | (
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| Net assets |
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| Capital and reserves | ||||
| Called-up share capital | 10 |
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| Share premium account |
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| Capital redemption reserve | 10 |
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| Undistributable reserve |
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| Profit and loss account |
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| Total shareholders' funds |
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Directors' responsibilities:
The financial statements of EPS Services & Tooling Limited (registered number:
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N E Palmer
Director |
The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.
EPS Services & Tooling Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Unit 2, Edwards Industrial Estate Sandys Moor, Wiveliscombe, Taunton, TA4 2TU, United Kingdom.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.
Exchange differences are recognised in the Profit and Loss Account in the period in which they arise except for exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Profit and Loss Account in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either other debtors or other creditors in the Balance Sheet.
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date that are expected to apply when the timing differences reverse. Deferred tax assets and liabilities are not discounted.
Deferred tax liabilities are presented within provisions for liabilities on the balance sheet.
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| Land and buildings | not depreciated |
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| Plant and machinery |
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| Vehicles |
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| Office equipment |
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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.
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Profit and Loss Account over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.
Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account as described below.
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.
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.
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.
Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Loans and borrowings
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in other income over the period in which the related costs are recognised, and timing differences are presented as other debtors or deferred income within the balance sheet. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
Share premium account includes any premiums received on the issue of share capital. Transaction costs associated with the issuing of shares are deducted from the share premium.
Revaluation reserve is the surplus or deficit arising on the revaluation of an asset of a company.
Capital redemption reserve records the nominal value of shares repurchased by the company.
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| Monthly average number of persons employed by the Company during the year, including directors |
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| Goodwill | Total | ||
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| Cost | |||
| At 01 April 2024 |
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| At 31 March 2025 |
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| Accumulated amortisation | |||
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| Charge for the financial year |
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| Net book value | |||
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| Land and buildings | Plant and machinery | Vehicles | Office equipment | Total | |||||
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| Additions |
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| Disposals |
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| Disposals |
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Investments in subsidiaries
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| At 31 March 2025 |
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| Provisions for impairment | |
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| Impairment |
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| At 31 March 2025 |
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| Carrying value at 31 March 2025 |
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| Carrying value at 31 March 2024 |
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The investment relates the to the company's 100% shareholding in Gerrymet Ltd.
As disclosed in note 12, the trade and assets of Gerrymet Ltd were hived up to EPS Services & Tooling Limited on 31 December 2024. The investment has been impaired following the hive up to reduce the carrying value to £300 being the nominal amount of the issued share capital held by EPS Services & Tooling Limited.
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| £ | £ | ||
| Stocks |
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| Work in progress |
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| £ | £ | ||
| Trade debtors |
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| Other debtors |
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| £ | £ | ||
| Bank loans |
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| Trade creditors |
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| Amounts owed to Group undertakings |
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| Taxation and social security |
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| Obligations under finance leases and hire purchase contracts (secured) |
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| Other creditors |
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| £ | £ | ||
| Bank loans |
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| Obligations under finance leases and hire purchase contracts (secured) |
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| Other creditors |
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| Called-up share capital | Capital redemption reserve | ||
| £ | £ | ||
| At 01 April 2024 |
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| Share buy back | (
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| At 31 March 2025 |
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| At 01 April 2023 |
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| At 31 March 2024 |
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During the year the company purchased 11,780 of its own Ordinary A shares. The shares were purchased for a consideration of £35,340.
Other financial commitments
The total amount of financial commitments not included in the balance sheet is £2,001,051. Of this, £172,167 (2024 - £145,187) is due within one year, £599,609 (2024 - £549,728) is due between 2-5 years, and £1,229,275 (2024 £1,370,548) - is due over 5 years.
Other related party transactions
On 31 December 2024, the trade, assets and liabilities of Gerrymet Limited were transferred to EPS Services and Tooling Limited. The assets acquired by EPS totalled £545,013 and the liabilities, £131,689. On this date EPS also received a dividend of £413,324 from Gerrymet Limited.