REGISTERED NUMBER: 04634133 (England and Wales)

Financial Statements

for the Year Ended 31 March 2025

for

Real Engineering (Yorkshire) Limited

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

DIRECTORS:

W J Middleton

K B Young

REGISTERED OFFICE:

Unit 4 Aireside Business Park

Royd Ings Avenue

Keighley

West Yorkshire

BD21 4BZ

REGISTERED NUMBER:

04634133 (England and Wales)

AUDITORS:

Stirk Lambert & Co

Chartered Accountants

Statutory Auditors

Russell Chambers

61a North Street

Keighley

West Yorkshire

BD21 3DS

FIXED ASSETS

Intangible assets

4

-

-

Tangible assets

5

66,239

73,995

66,239

73,995

CURRENT ASSETS

Stocks

227,447

192,641

Debtors

6

1,201,897

1,152,965

Cash at bank

603,266

238,131

2,032,610

1,583,737

CREDITORS

Amounts falling due within one year

7

(1,537,540

)

(955,261

)

NET CURRENT ASSETS

495,070

628,476

TOTAL ASSETS LESS CURRENT LIABILITIES

561,309

702,471

PROVISIONS FOR LIABILITIES

(16,000

)

(18,035

)

NET ASSETS

545,309

684,436

CAPITAL AND RESERVES

Called up share capital

200

200

Share premium

299,800

299,800

Retained earnings

245,309

384,436

SHAREHOLDERS' FUNDS

545,309

684,436

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 Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 28 July 2025 and were signed on its behalf by:

K B Young - Director

1.	STATUTORY INFORMATION

Real Engineering (Yorkshire) 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 financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

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.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Sale of goods:

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:

-

the Company has transferred the significant risks and rewards of ownership to the buyer;

-

the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

-

the amount of turnover can be measured reliably;

-

it is probable that the Company will receive the consideration due under the transaction; and

-

the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of Services:

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

-

the amount of turnover can be measured reliably;

-

it is probable that the Company will receive the consideration due under the contract;

-

the stage of completion of the contract at the end of the reporting period can be measured reliably; and

-

the costs incurred and the costs to complete the contract can be measured reliably.

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of Comprehensive Income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

The estimated useful lives range as follows:

Goodwill

10 years

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in a manner intended by management.

Depreciation is charged so as to allocated the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Improvements to property

10% on cost

Plant and machinery

15% on reducing balance

Motor vehicles

25% on reducing balance

Fixtures and fittings

15% on reducing balance

Computer equipment

25% on reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the profit or loss.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs and are measured subsequently at amortised cost using the effective interest rate method, less any impairment.

Long term contracts

Where the outcome of a long-term contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at each reporting date. Stage of completion is measured by reference to labour costs incurred as a proportion of the estimated total labour costs. Where the outcome of a long-term contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred that it is probable it will be recoverable.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially ar fair value, net of transaction costs and are measured subsequently at amortised cost using the effective interest method.

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Current and deferred taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position date, except that:

-

The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

-

Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair value of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Foreign currencies

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Finance costs

Finance costs are charged to the Income Statement over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount.

Operating leases: the company as a lessee

Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight line basis over the lease term.

Pension costs and other post-retirement benefits

The company operates a defined contribution plan for its employees. A defined contribution plan is a plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in the Income Statement when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

Dividends

Dividend distribution to the company's shareholders is recognised as a liability in the financial statements in the reporting period in which dividends are declared and paid.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 42 (2024 - 30 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 April 2024

and 31 March 2025

32,500

AMORTISATION

At 1 April 2024

and 31 March 2025

32,500

NET BOOK VALUE

At 31 March 2025

-

At 31 March 2024

-

5.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1 April 2024

109,030

198,272

14,972

Additions

-

1,625

1,382

At 31 March 2025

109,030

199,897

16,354

DEPRECIATION

At 1 April 2024

107,174

147,256

12,225

Charge for year

534

8,261

360

At 31 March 2025

107,708

155,517

12,585

NET BOOK VALUE

At 31 March 2025

1,322

44,380

3,769

At 31 March 2024

1,856

51,016

2,747

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 April 2024

16,933

28,759

367,966

Additions

-

315

3,322

At 31 March 2025

16,933

29,074

371,288

DEPRECIATION

At 1 April 2024

3,583

23,733

293,971

Charge for year

652

1,271

11,078

At 31 March 2025

4,235

25,004

305,049

NET BOOK VALUE

At 31 March 2025

12,698

4,070

66,239

At 31 March 2024

13,350

5,026

73,995

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.25

31.3.24

£

£

Trade debtors

506,465

309,983

Amounts owed by group undertakings

516,161

566,161

Prepayments

179,271

276,821

1,201,897

1,152,965

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.25

31.3.24

£

£

Trade creditors

262,383

310,752

Tax

44,000

27,447

Social security and other taxes

42,582

47,611

VAT

171,055

19,545

Other creditors

33,091

21,775

Accruals and deferred income

984,429

528,131

1,537,540

955,261

8.	LEASING AGREEMENTS

The total amount of financial commitments not included in the balance sheet is £498,680 (2024 - £485,092). This financial commitment is in respect of operating leases.

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

The Report of the Auditors was unqualified.

Catherine Hill FCA CTA (Senior Statutory Auditor)

for and on behalf of Stirk Lambert & Co

10.	RELATED PARTY DISCLOSURES

TVI Group Limited, the Company's ultimate parent, charged management fees to the Company of £96,000 (2024: £75,000). The balance due at the period end was £NIL (2023: £NIL).

As at March 2025 there is a loan balance due from Tvc3 Limited of £516,161 (2024 - £566,161). The loan is interest free and repayable on demand. The balance due at the period end was £566,161 (2023: £566,161).

The Company declared and paid dividends of £38,824 (2024: £22,500) to W J Middleton. The company declared and paid dividends of £220,000 (2024: £127,500) to Tvc3 Limited.

11.	ULTIMATE CONTROLLING PARTY

The ultimate parent undertaking is TVI Group Limited, a company incorporated in England and Wales, registration number 08957594, registered office 3rd Floor, Davidson House, Forbury Square, Reading, Berkshire, RG1 3EU.

The ultimate controlling party is B M Gordon.