REGISTERED NUMBER: 00260311 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

FOR

DAKIN-FLATHERS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

16

DIRECTORS:

O Garside

L J Barker

P S Greenley

S Dykes

C D Jukes

SECRETARY:

S Dykes

REGISTERED OFFICE:

Boothroyds Way

Green Lane Industrial Estate

Featherstone

Pontefract

West Yorkshire

WF7 6RA

REGISTERED NUMBER:

00260311 (England and Wales)

SENIOR STATUTORY AUDITOR:

Adam Brosnan

AUDITORS:

Brosnans

Chartered Accountants

and Statutory Auditors

Birkby House

Bailiff Bridge

Brighouse

West Yorkshire

HD6 4JJ

The directors present their strategic report for the year ended 31 March 2025.

REVIEW OF BUSINESS

The company performed well during the year despite a challenging market backdrop.

Despite this, the company continued to be profitable and cash generative and so the company maintained its significant ongoing capital investment plan, investing in new assets and infrastructure to support future growth.

The key performance indicators used by the company were:

2025 (2024)

Turnover £11,008,035 (£11,361,799)

The outlook for the company remains positive

PRINCIPAL RISKS AND UNCERTAINTIES

Financial risk management objectives and policies.

The company operates in the UK market and overseas. The company seeks to mitigate exposure to all forms of risk, both internal and external.

Customers and suppliers

The company is not wholly dependent on any one supplier or customer.

Foreign exchange

The company endeavours to mitigate the risk of foreign exchange fluctuation by, whenever possible, balancing its buying and selling in foreign currencies. Any excess requirement is covered by use of forward contracts and if necessary spot purchasing on the currency exchange.

Laws and regulations

The company complies with all relevant regulations to operate within the law.

The company takes its health, safety and environmental responsibilities very seriously.

Employees

The company is an Equal Opportunities Employer. In employment related decisions, the company complies with anti-discrimination requirements concerning matters of race, colour, national origin, marital status, sexual orientation, religious belief, age and physical or mental disability. Disabled people are given full and equal consideration for employment and their development is assisted and encouraged.

ON BEHALF OF THE BOARD:

S Dykes - Director

1 September 2025

In order to continue to strengthen the long term development of the company, the directors took the decision to maintain the high level of spending on research and development. Further significant steps were made towards major process and product development.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of bandsaw and bandknife manufacturers.

DIVIDENDS

Were paid as per disclosed in the Statement of Changes in Equity.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2024 to the date of this report.

O Garside

L J Barker

P S Greenley

S Dykes

C D Jukes

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Brosnans, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S Dykes - Director

1 September 2025

Opinion

We have audited the financial statements of Dakin-Flathers Limited (the 'company') for the year ended 31 March 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2025 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.

Basis for 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 Auditors' 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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 identified material misstatements in the Strategic Report or the Report of the Directors.

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 Statement of Directors' Responsibilities set out on page three, 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 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.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Audit response to risks identified

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance;

- results of our enquiries of management about their own identification and assessment of the risks of irregularities;

- any matters we identified having obtained and reviewed the group's documentation of their policies and procedures relating to:

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We obtained an understanding of the legal and regulatory frameworks that the group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

Our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

- enquiring of management concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- obtaining an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of provisions and

- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Adam Brosnan (Senior Statutory Auditor)

for and on behalf of Brosnans

Chartered Accountants

and Statutory Auditors

Birkby House

Bailiff Bridge

Brighouse

West Yorkshire

HD6 4JJ

1 September 2025

TURNOVER

11,008,035

11,361,799

Cost of sales

(5,464,926

)

(6,127,483

)

GROSS PROFIT

5,543,109

5,234,316

Administrative expenses

(3,279,523

)

(3,140,370

)

2,263,586

2,093,946

Other operating income

-

3,825

OPERATING PROFIT

4

2,263,586

2,097,771

Income from shares in group undertakings

7,000

-

Interest receivable and similar income

42,436

53,249

2,313,022

2,151,020

Interest payable and similar expenses

5

(449,506

)

(82,450

)

PROFIT BEFORE TAXATION

1,863,516

2,068,570

Tax on profit

6

(286,681

)

(392,686

)

PROFIT FOR THE FINANCIAL YEAR

1,576,835

1,675,884

PROFIT FOR THE YEAR

1,576,835

1,675,884

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,576,835

1,675,884

FIXED ASSETS

Tangible assets

8

1,488,073

1,520,512

Investments

9

54,114

-

1,542,187

1,520,512

CURRENT ASSETS

Stocks

10

3,472,433

4,554,928

Debtors

11

2,191,691

2,245,228

Cash at bank and in hand

909,096

727,429

6,573,220

7,527,585

CREDITORS

Amounts falling due within one year

12

(1,106,879

)

(8,541,225

)

NET CURRENT ASSETS/(LIABILITIES)

5,466,341

(1,013,640

)

TOTAL ASSETS LESS CURRENT LIABILITIES

7,008,528

506,872

CREDITORS

Amounts falling due after more than one year

13

(6,214,907

)

(25,786

)

PROVISIONS FOR LIABILITIES

15

(351,000

)

(355,000

)

NET ASSETS

442,621

126,086

CAPITAL AND RESERVES

Called up share capital

16

736

736

Other reserves

17

1,318

1,318

Retained earnings

17

440,567

124,032

SHAREHOLDERS' FUNDS

442,621

126,086

The financial statements were approved by the Board of Directors and authorised for issue on 1 September 2025 and were signed on its behalf by:

S Dykes - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 April 2023

736

4,537,889

1,318

4,539,943

Changes in equity

Dividends

-

(6,089,741

)

-

(6,089,741

)

Total comprehensive income

-

1,675,884

-

1,675,884

Balance at 31 March 2024

736

124,032

1,318

126,086

Changes in equity

Dividends

-

(1,260,300

)

-

(1,260,300

)

Total comprehensive income

-

1,576,835

-

1,576,835

Balance at 31 March 2025

736

440,567

1,318

442,621

Cash flows from operating activities

Cash generated from operations

1

3,692,460

4,262,779

Interest paid

(437,314

)

(70,702

)

Interest element of hire purchase payments paid

(12,192

)

(11,748

)

Tax paid

(339,686

)

(281,408

)

Net cash from operating activities

2,903,268

3,898,921

Cash flows from investing activities

Purchase of tangible fixed assets

(169,347

)

(53,808

)

Purchase of fixed asset investments

(54,114

)

-

Interest received

42,436

53,249

Dividends received

7,000

-

Net cash from investing activities

(174,025

)

(559

)

Cash flows from financing activities

Loan repayments in year

(1,340,806

)

2,317,868

Loan from group

-

359,900

Capital repayments in year

53,530

(103,144

)

Amount repaid by directors

-

43,864

Equity dividends paid

(1,260,300

)

(6,089,741

)

Net cash from financing activities

(2,547,576

)

(3,471,253

)

Increase in cash and cash equivalents

181,667

427,109

Cash and cash equivalents at beginning of year

2

727,429

300,320

Cash and cash equivalents at end of year

2

909,096

727,429

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit before taxation

1,863,516

2,068,570

Depreciation charges

201,786

228,404

Finance costs

449,506

82,450

Finance income

(49,436

)

(53,249

)

2,465,372

2,326,175

Decrease in stocks

1,082,495

1,579,528

Decrease in trade and other debtors

53,537

665,270

Increase/(decrease) in trade and other creditors

91,056

(308,194

)

Cash generated from operations

3,692,460

4,262,779

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

909,096

727,429

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

727,429

300,320

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank and in hand

727,429

181,667

909,096

727,429

181,667

909,096

Debt

Finance leases

(128,930

)

(53,530

)

(182,460

)

(128,930

)

(53,530

)

(182,460

)

Total

598,499

128,137

726,636

1.	STATUTORY INFORMATION

Dakin-Flathers Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

2.	ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

These financial statements have been prepared in accordance with 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 is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

TANGIBLE FIXED ASSETS

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

10% on reducing balance

Motor vehicles

-

25% on reducing balance

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

INVESTMENTS IN SUBSIDIARIES

Investments in subsidiary undertakings are recognised at cost.

STOCKS

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

FINANCIAL INSTRUMENTS

Derivative financial instruments are initially recorded at cost and thereafter at fair value with

changes recognised in profit or loss.

TAXATION

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

DEFERRED TAX

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.

RESEARCH AND DEVELOPMENT

Expenditure on research and development is written off in the year in which it is incurred.

FOREIGN CURRENCIES

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and Salaries

2,418,427

2,192,431

Social Security

235,946

200,266

Employees and Employers Pension

367,345

295,174

2,687,871

2,687,871

Average number of employees during the year;

2025

2024

Directors

5

5

Production

39

36

Administration

19

17

63

60

4.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Depreciation - owned assets

201,786

228,404

Auditors' remuneration

9,500

9,000

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Loan interest

437,163

70,698

Other interest

151

4

Hire purchase

12,192

11,748

449,506

82,450

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

290,681

320,686

Deferred tax

(4,000

)

72,000

Tax on profit

286,681

392,686

RECONCILIATION OF TOTAL TAX CHARGE INCLUDED IN PROFIT AND LOSS

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

1,863,516

2,068,570

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

465,879

517,143

Effects of:

Expenses not deductible for tax purposes

34

30

Income not taxable for tax purposes

(1,750

)

-

Depreciation in excess of capital allowances

3,597

38,146

Patent Box allowance

(43,752

)

(37,469

)

Research and development enhanced deduction

(126,376

)

(183,697

)

Deferred Taxation (credit)/charge

(4,000

)

72,000

Group relief

(6,951

)

(13,467

)

Total tax charge

286,681

392,686

7.

DIVIDENDS

2025

2024

£

£

Ordinary shares of £1 each

Final

-

589,741

Interim

1,260,300

5,500,000

1,260,300

6,089,741