REGISTERED NUMBER: SC240018 (Scotland)

WELDING ENGINEERS (MIDLANDS) LIMITED

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

J Cassells

R A Holmes

G C Nicol

P F B Wilson

SECRETARY:

P F B Wilson

REGISTERED OFFICE:

3 Cardowan Park

Uddingston

Glasgow

G71 5PF

REGISTERED NUMBER:

SC240018 (Scotland)

AUDITORS:

Gerber Landa & Gee

Statutory Auditor

Chartered Accountants

Pavilion 1

Finnieston Business Park

Minerva Way

Glasgow

G3 8AU

FIXED ASSETS

Tangible assets

4

167,275

191,101

CURRENT ASSETS

Stocks

6,918

6,918

Debtors

5

513,952

540,104

Cash at bank and in hand

496,461

488,196

1,017,331

1,035,218

CREDITORS

Amounts falling due within one year

6

343,731

414,420

NET CURRENT ASSETS

673,600

620,798

TOTAL ASSETS LESS CURRENT LIABILITIES

840,875

811,899

CREDITORS

Amounts falling due after more than one year

7

(11,002

)

(38,999

)

PROVISIONS FOR LIABILITIES

10

(33,688

)

(32,757

)

NET ASSETS

796,185

740,143

CAPITAL AND RESERVES

Called up share capital

11

80

80

Capital redemption reserve

20

20

Retained earnings

796,085

740,043

SHAREHOLDERS' FUNDS

796,185

740,143

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 27 August 2025 and were signed on its behalf by:

P F B Wilson - Director

G C Nicol - Director

1.	STATUTORY INFORMATION

Welding Engineers (Midlands) Limited is a private company, limited by shares , registered in Scotland. 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 (£).

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates

Preparation of the financial statements requires the directors to make significant judgements and estimates regarding the carrying amounts 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 relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

The directors consider that the items in the financial statements where these judgements and estimates have been made include:

- Tangible fixed assets - depreciation has been based on estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives and residual values are reviewed annually by the directors, and they assessed that no changes were required. The stated depreciation policies applied in prior years remains appropriate.

- At the balance sheet date, the directors consider whether there are any indicators that the trade debtor balances relating to goods supplied and services rendered will not be recoverable, to ensure an adequate provision is made for any potentially irrecoverable amounts. Based on their knowledge of the customers concerned, the directors consider that no provision is required against the balances.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover includes revenue earned from the rendering of services, which is recognised by reference to the stage of completion of the assignment. This is measured by comparing the costs incurred for work performed to date to the total estimated contract cost. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

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.

Short leasehold

-

Over the unexpired term of the lease

Plant and machinery

-

25% on cost

Fixtures, fittings & equipment

-

33% on cost and 15% on reducing balance

Motor vehicles

-

25% on cost and 25% on reducing balance

Fixed assets are included in the financial statements at cost less accumulated depreciation and impairment losses.

At each reporting date non-financial assets not carried at fair value, like plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount which is the higher in use and fair value less cost to sell, is estimated and compared with the carrying amount. If the recoverable amount is lower, but not in excess of the amount that would have been determined had no impairment carrying amount of the asset is reduced to its recoverable amount an impairment loss is recognised immediately in the income statement.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in previous years. A reversal of an impairment loss is recognised immediately in the income statement.

Stocks

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

In respect of work in progress and finished goods, cost includes a relevant proportion of overheads according to the stage of completion.

Financial instruments

The company only enters into basic financial instruments that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, and loans to/from related parties.

Debt instruments like loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest rate method. Debt instruments that are payable or receivable within one year, typically trade debtors and trade creditors, are measured initially and subsequently, at the undiscounted amount of cash or other consideration to be paid or received.

Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for evidence of impairment and if found, an impairment loss is recognised in the income statement.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, where applicable, are shown within borrowings in current liabilities.

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.

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.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

Provisions

Provisions are recognised when the company has a legal or constructive obligation at the reporting date as a result of a past event, if it is probable that the company will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

Going concern

At 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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 20 (2023 - 20 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures,

Short

Plant and

fittings

Motor

leasehold

machinery

& equipment

vehicles

Totals

£

£

£

£

£

COST

At 1 January 2024

28,767

41,412

38,200

249,747

358,126

Additions

-

7,824

3,065

66,854

77,743

Disposals

-

-

-

(55,841

)

(55,841

)

At 31 December 2024

28,767

49,236

41,265

260,760

380,028

DEPRECIATION

At 1 January 2024

7,595

39,268

26,433

93,729

167,025

Charge for year

6,352

1,795

3,723

57,548

69,418

Eliminated on disposal

-

-

-

(23,690

)

(23,690

)

At 31 December 2024

13,947

41,063

30,156

127,587

212,753

NET BOOK VALUE

At 31 December 2024

14,820

8,173

11,109

133,173

167,275

At 31 December 2023

21,172

2,144

11,767

156,018

191,101

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

Motor

vehicles

£

COST

At 1 January 2024

165,868

Additions

30,950

Transfer to ownership

(58,024

)

At 31 December 2024

138,794

DEPRECIATION

At 1 January 2024

31,534

Charge for year

27,332

Transfer to ownership

(22,702

)

At 31 December 2024

36,164

NET BOOK VALUE

At 31 December 2024

102,630

At 31 December 2023

134,334

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

457,301

500,824

Other debtors

99

78

VAT

4,784

8,506

Prepayments and accrued income

51,768

30,696

513,952

540,104

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Hire purchase contracts (see note 8)

52,882

55,090

Trade creditors

214,305

288,976

Corporation tax

26,632

22,194

Social security and other taxes

19,366

24,789

Other creditors

12,265

10,255

Accrued charges

18,281

13,116

343,731

414,420

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024

2023

£

£

Hire purchase contracts (see note 8)

11,002

38,999

8.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2024

2023

£

£

Net obligations repayable:

Within one year

52,882

55,090

Between one and five years

11,002

38,999

63,884

94,089

Non-cancellable operating

leases

2024

2023

£

£

Within one year

72,000

39,845

Between one and five years

222,000

91,346

294,000

131,191

9.	SECURED DEBTS

The following secured debts are included within creditors:

2024

2023

£

£

Hire purchase contracts

63,884

94,089

Hire purchase contracts are secured on the assets to which they relate.

The Bank of Scotland holds a bond and floating charge over all the Company's assets together with a cross corporate guarantee between the Welding Engineers Group of Companies.

10.	PROVISIONS FOR LIABILITIES

2024

2023

£

£

Deferred tax

33,688

32,757

Deferred

tax

£

Balance at 1 January 2024

32,757

Charge to Income Statement during year

931

Balance at 31 December 2024

33,688

The provision for deferred tax consists of the tax effect of timing differences in respect of the excess of taxation allowances over depreciation on fixed assets.

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2024

2023

value:

£

£

80

Ordinary Shares

£1

80

80

12.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Darren Smith (Senior Statutory Auditor)

for and on behalf of Gerber Landa & Gee

13.	PARENT COMPANY

The company's parent company is Welding Engineers (Holdings) Limited, a company incorporated in Scotland, having its registered office at 3 Cardowan Park, Uddingston, Glasgow, G71 5PF. Copies of the accounts of this company are available from the Registrar of Companies, Edinburgh.