Company Registration No. 01252000 (England and Wales)
GLOSROSE ENGINEERING LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2024
Star House
Star Hill
Rochester
Kent
ME1 1UX
GLOSROSE ENGINEERING LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 9
Statement of comprehensive income
10
Statement of financial position
11 - 12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 29
GLOSROSE ENGINEERING LIMITED
COMPANY INFORMATION
- 1 -
Directors
J A Butcher
R C Butcher
Secretary
N Clarke
Company number
01252000
Registered office
Old Mill Farm
Old Mill Road
Hollingbourne
Maidstone
Kent
ME17 1XD
Auditor
TC Group
Star House
Star Hill
Rochester
Kent
ME1 1UX
GLOSROSE ENGINEERING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

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

Introduction

During the financial year under review the Company continued to operate within its chosen marketplace, providing Mechanical Handling Equipment and Construction Equipment to its customers. The supply of Mechanical Handling and Construction Equipment includes the sale, rental and contract hire. The Company continued to provide equipment for short term hire use and operated a Service Department to facilitate customer breakdowns, routine services and maintenance of equipment.

Fair review of the business

The Strategy is mainly unchanged in that the Company continues to focus on increasing sales in all sectors of the Company by increasing chargeable hours and rates and growing the sales team. The Company has launched a new website and social media platform to help increase the sales, service and parts enquiries to assist the strategy of increasing sales. The Company is continuing to strictly review costs within each sector and ensuring we are exploring efficiencies. The financial focus is alongside the focus to continue to provide an excellent service to customers and to ensure repeated business from customers.

The turnover for 2024 increased to £14.00 m from £12.2m from the previous year. Equipment stock for the year has been reviewed to ensure stock held is of good quality and those that have not met high standards have been traded, which has resulted in a lower gross profit margin and EBITDA. This is a one off exercise and we expect the EBITDA and gross profit margins to be in line or above with the 2023 figures. There is a continue d focus for 2025 to review costs and improve the gross margins.

The reserves position still remains strong at £2.0 56 m and will be continued to be monitored.

Principal risks and uncertainties

The principal risk facing the sales sector will be the increase in manufacturer's price of equipment, which is impacting customers decision-making due to customers wanting to look at cost savings. Albeit, this is also a strength as customers on contract rental agreements are enjoying keeping their monthly rates low when they renew the equipment they currently have, instead of purchasing a new machine and experiencing higher purchasing costs. We have identified some of our customer purchasing processes with regards to authorisation of agreements is a more lengthy process for them internally, however we are working with the customers individually and assisting where we can.

There is high competition within the market although the reputation of the Company stands firm amongst its customer base and suppliers. The Company has reduced its risk through diversification, operating across industry sectors, placing no great reliance on a single customer or sector, and dealing with multiple equipment manufacturers.

The nature of the business trade dealing with high value items can create risk amongst cash flow but this has been minimised with the financial management controls in place. The variation in financing options available gives ability for the Company to continue its investment and growth.

GLOSROSE ENGINEERING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Key performance indicators

The Company has various KPIs in place for the different revenue streams it enjoys.

Sales performance against targets with the main focus on gross margin per equipment deal. The sales team meet weekly to discuss placed orders, timeframes and forecasts. The number of new customers and new equipment purchases are being monitored, with an aim to bring new customers into the Company.

The short term hire fleet is assessed based on the fleet utilisation and the number of machines available for hire. A monthly meeting is held with the short term hire team to discuss revenue, utilisation, enquiries and opportunities.

The service department is now analysed per job type to highlight the job types that are performing and generating good profit margins, and those that need analysing for improvement. Chargeable hours are now reported to encourage an increase as well as the number of engineers to help see a chargeable rate per engineer. The Service team meet regularly to discuss specific KPIs to monitor response to customers.

All departments now have a target gross profit to cover as a percentage of overheads. This is to ensure that all sectors of the Company are contributing to covering.

Cash management has been critical during the year and rightly remains a focus going forwards.

On behalf of the board

J A Butcher
Director
1 September 2025
GLOSROSE ENGINEERING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

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

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

J A Butcher
R C Butcher
Mr A J Butcher
(Resigned 9 April 2025)
Auditor

The auditor, TC Group, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

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:

- 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 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.

GLOSROSE ENGINEERING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
On behalf of the board
J A Butcher
Director
1 September 2025
GLOSROSE ENGINEERING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GLOSROSE ENGINEERING LIMITED
- 6 -
Opinion

We have audited the financial statements of Glosrose Engineering Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, 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 the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 December 2024 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 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.

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 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.

GLOSROSE ENGINEERING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF GLOSROSE ENGINEERING LIMITED
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

- the information given in the strategic report and the directors' r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report 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 identifie d material misstatements in the strategic report or the directors' r eport.

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:

- 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 directors' r esponsibilities s tatement, 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.

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

GLOSROSE ENGINEERING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF GLOSROSE ENGINEERING LIMITED
- 8 -

Our approach was as follows:

- We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;

- We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;

- We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;

- We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;

- We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the FRC’s website at: https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-the-fi/description-of-the-auditor%E2%80%99s-responsibilities-for. This description forms part of our auditor’s report.

GLOSROSE ENGINEERING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF GLOSROSE ENGINEERING LIMITED
- 9 -
Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Sally Meah FCCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
11 September 2025
Star House
Star Hill
Rochester
Kent
ME1 1UX
GLOSROSE ENGINEERING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
14,002,168
12,229,417
Cost of sales
(12,153,732)
(10,346,148)
Gross profit
1,848,436
1,883,269
Administrative expenses
(1,311,812)
(1,166,951)
EBITDA
536,624
716,318
Depreciation
(218,749)
(228,913)
Operating profit
317,875
487,405
Interest payable and similar expenses
7
(255,358)
(252,370)
Profit before taxation
62,517
235,035
Tax on profit
8
(8,607)
(40,642)
Profit for the financial year
53,910
194,393

The income statement has been prepared on the basis that all operations are continuing operations.

The notes on pages 15 to 29 form part of these financial statements.

GLOSROSE ENGINEERING LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
2,341,087
2,376,950
Current assets
Stocks
10
686,731
791,756
Debtors
11
6,062,865
4,100,565
Cash at bank and in hand
179
849
6,749,775
4,893,170
Creditors: amounts falling due within one year
12
(5,541,736)
(3,552,227)
Net current assets
1,208,039
1,340,943
Total assets less current liabilities
3,549,126
3,717,893
Creditors: amounts falling due after more than one year
13
(1,197,068)
(1,428,352)
Provisions for liabilities
Deferred tax liability
15
296,377
287,770
(296,377)
(287,770)
Net assets
2,055,681
2,001,771
Capital and reserves
Called up share capital
17
10,000
10,000
Profit and loss reserves
2,045,681
1,991,771
Total equity
2,055,681
2,001,771

The notes on pages 15 to 29 form part of these financial statements.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

GLOSROSE ENGINEERING LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 DECEMBER 2024
31 December 2024
- 12 -
The financial statements were approved by the board of directors and authorised for issue on 1 September 2025 and are signed on its behalf by:
J A Butcher
Director
Company registration number 01252000 (England and Wales)
GLOSROSE ENGINEERING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
10,000
1,797,378
1,807,378
Year ended 31 December 2023:
Profit and total comprehensive income
-
194,393
194,393
Balance at 31 December 2023
10,000
1,991,771
2,001,771
Year ended 31 December 2024:
Profit and total comprehensive income
-
53,910
53,910
Balance at 31 December 2024
10,000
2,045,681
2,055,681

The notes on pages 15 to 29 form part of these financial statements.

GLOSROSE ENGINEERING LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
472,031
847,729
Interest paid
(255,358)
(252,370)
Income taxes refunded/(paid)
1
(3,328)
Net cash inflow from operating activities
216,674
592,031
Investing activities
Purchase of tangible fixed assets
(210,359)
(192,839)
Proceeds from disposal of tangible fixed assets
246,137
365,414
Repayment of loans
(52,531)
(118,828)
Net cash (used in)/generated from investing activities
(16,753)
53,747
Financing activities
Proceeds from borrowings
269,150
-
0
Repayment of borrowings
-
0
(51,573)
Payment of finance leases obligations
(489,055)
(510,916)
Net cash used in financing activities
(219,905)
(562,489)
Net (decrease)/increase in cash and cash equivalents
(19,984)
83,289
Cash and cash equivalents at beginning of year
(503,954)
(587,243)
Cash and cash equivalents at end of year
(523,938)
(503,954)
Relating to:
Cash at bank and in hand
179
849
Bank overdrafts included in creditors payable within one year
(524,117)
(504,803)

The notes on pages 15 to 29 form part of these financial statements.

GLOSROSE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
1
Accounting policies
Company information

Glosrose Engineering Limited is a private company limited by shares incorporated in England and Wales. The registered office is Old Mill Farm, Old Mill Road, Hollingbourne, Maidstone, Kent, ME17 1XD.

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 a mounts 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

A true t the time of approving the financial statements, t he directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus t he 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.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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 for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, 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 it is probable will be recover ed.

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.

GLOSROSE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -

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:

Leasehold land and buildings
15% reducing balance
Plant and equipment
15 years straight line
Fixtures and fittings
20% reducing balance
Motor vehicles
7 years straight line and 25% reducing balance
Office equipment
15% 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

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.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

GLOSROSE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -

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
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 statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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.

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, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 paymen ts 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. A m ounts 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.

GLOSROSE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.8
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 income statement, 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.

1.9
Retirement benefits

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

1.10
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 statement of financial position 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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

GLOSROSE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Impairment of tangible assets

Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

Stock of mechanical handling and construction equipment

Any Mechanical Handling Equipment purchased up to the end of the 1 st quarter of the year that remains in stock at the year-end is deemed to be a fixed asset with the exception of items that are specifically bought second hand. Construction Equipment is classified as stock.

GLOSROSE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 20 -
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.

Useful life of fixed assets

Tangible fixed assets are depreciated over their useful lives taking into account residual values where appropriate. For equipment, a residual value of 3 5% or 4 5% is used. The useful lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing the asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual values consider such things as future market conditions, the remaining life of the asset, size and usage of the equipment and projected disposal values.

Stock valuation

Stock is stated at the lower of cost and net realisable value. Cost is determined on a first-in, first-out (FIFO) basis and includes all costs of purchase, conversion, and other costs incurred in bringing the inventories to their present location and condition.

Judgement is required in assessing the net realisable value of stock, which involves estimating future selling prices and costs necessary to make the sale. In particular, management reviews stock for obsolete, slow-moving, or damaged items and makes appropriate provisions where necessary.

Changes in market conditions or customer demand could impact the net realisable value of inventory and result in adjustments to the carrying amount. At the balance sheet date, management considered the stock held and concluded that the provision for obsolete and slow-moving inventory was adequate.

GLOSROSE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
3
Turnover and other revenue

During the year £102,827 (20 23 - £146,941) of turnover arose in the EU (outside the UK) and £Nil (20 23 - £Nil) arose from the rest of the world.

4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
15,000
17,200
5
Employees

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

2024
2023
Number
Number
Directors
2
2
Service
23
21
Sales
4
2
Administration
4
4
Short term rental
1
1
Construction
-
1
Total
34
31

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,484,894
1,347,560
Social security costs
158,925
143,220
Pension costs
54,034
47,082
1,697,853
1,537,862
GLOSROSE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
274,019
250,330
Company pension contributions to defined contribution schemes
22,553
11,569
296,572
261,899

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
160,773
143,057
Company pension contributions to defined contribution schemes
6,952
6,952
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
123,976
124,432
Other finance costs:
Interest on finance leases and hire purchase contracts
131,356
127,845
Other interest
26
93
255,358
252,370
8
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
8,607
40,642
GLOSROSE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
8
Taxation
(Continued)
- 23 -

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
62,517
235,035
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2023: 19.00%)
11,878
44,657
Tax effect of expenses that are not deductible in determining taxable profit
7,133
5,189
Tax effect of utilisation of tax losses not previously recognised
(10,656)
(44,272)
Permanent capital allowances in excess of depreciation
(8,355)
(5,574)
Deferred tax timing differences
8,607
40,642
Taxation charge for the year
8,607
40,642

Factors that may affect future tax charges

The company has losses carried forward that may affect future tax charges.

GLOSROSE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
9
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Office equipment
Total
£
£
£
£
£
£
Cost
At 1 January 2024
425,243
2,804,291
52,678
687,946
196,279
4,166,437
Additions
-
0
432,921
220
58,574
4,213
495,928
Disposals
-
0
(436,299)
-
0
(20,009)
(7,357)
(463,665)
At 31 December 2024
425,243
2,800,913
52,898
726,511
193,135
4,198,700
Depreciation and impairment
At 1 January 2024
380,805
845,601
36,020
375,272
151,789
1,789,487
Depreciation charged in the year
6,535
94,280
3,350
97,004
17,580
218,749
Eliminated in respect of disposals
-
0
(124,459)
-
0
(20,009)
(6,155)
(150,623)
At 31 December 2024
387,340
815,422
39,370
452,267
163,214
1,857,613
Carrying amount
At 31 December 2024
37,903
1,985,491
13,528
274,244
29,921
2,341,087
At 31 December 2023
44,438
1,958,690
16,658
312,674
44,490
2,376,950

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 equipment
1,652,068
1,246,399
Motor vehicles
247,690
299,894
1,899,758
1,546,293
GLOSROSE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
10
Stocks
2024
2023
£
£
Raw materials and consumables
263,384
209,100
Work in progress
54,693
41,571
Finished goods and goods for resale
368,654
541,085
686,731
791,756
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,434,736
1,241,106
Corporation tax recoverable
68,750
51,021
Amounts owed by group undertakings
2,287,498
2,338,220
Other debtors
216,418
414,366
Prepayments and accrued income
55,463
55,852
6,062,865
4,100,565
12
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
14
524,117
504,803
Obligations under hire purchase
566,521
542,369
Other borrowings
14
455,150
182,354
Trade creditors
3,549,438
1,602,036
Corporation tax
57,834
40,104
Other taxation and social security
193,179
203,877
Deferred income
89,218
35,302
Other creditors
40,391
14,785
Accruals and deferred income
65,888
426,597
5,541,736
3,552,227
GLOSROSE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
13
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under hire purchase
1,002,453
1,230,091
Other borrowings
14
194,615
198,261
1,197,068
1,428,352
14
Loans and overdrafts
2024
2023
£
£
Bank overdrafts
524,117
504,803
Other loans
649,765
380,615
1,173,882
885,418
Payable within one year
979,267
687,157
Payable after one year
194,615
198,261

Amounts included within Bank loans and overdrafts are secured via a fixed and floating charge over the undertaking and all property and assets present and future of Glosrose Engineering Limited by Svenska Handelsbanken AB.

The bank loan is repayable quarterly over 5 years at an interest rate of 3.75% over LIBOR.

DF Capital Bank Limited holds a debenture dated 10 March 20 21 over all of the company's assets and undertaking.

The Funding Circle loan, dated 16 October 2022, is repayable over 6 years at a fixed interest rate of 17.90% per annum.

GLOSROSE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 27 -
15
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
413,225
417,152
Tax losses
(116,848)
(129,382)
296,377
287,770
2024
Movements in the year:
£
Liability at 1 January 2024
287,770
Charge to profit or loss
8,607
Liability at 31 December 2024
296,377

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
54,034
47,082

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.

17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10,000
10,000
10,000
10,000
GLOSROSE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
18
Operating lease commitments
Lessee

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:

Other

2024
2023
£
£
Within one year
53,205
68,211
Between two and five years
162,000
168,149
In over five years
155,250
195,750
370,455
432,110
19
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Loans to the directors
-
152,038
84,960
(32,429)
204,569
152,038
84,960
(32,429)
204,569
20
Ultimate controlling party

During the year under review, Glosrose Holdings Limited owned 100% of the issues share capital. It's registered office is Old Mill Farm, Mill road, Hollingbourne, Maidstone, Kent, ME17 IXD.

The ultimate controlling party, as at 31 December 2024, wa s Mr s J Butcher by the virtue of her shareholding in Glosrose Holdings Limited (Ultimate Parent Company). Mr J Butcher acquired all of the shares in Glosrose Holdings Limited in April 2025 and as such, is now the ultimate controlling party.

GLOSROSE ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
21
Analysis of changes in net debt
1 January 2024
Cash flows
New finance leases
31 December 2024
£
£
£
£
Cash at bank and in hand
849
(670)
-
179
Bank overdrafts
(504,803)
(19,314)
-
(524,117)
(503,954)
(19,984)
-
0
(523,938)
Borrowings excluding overdrafts
(380,615)
(269,150)
-
(649,765)
Obligations under finance leases
(1,772,460)
489,055
(285,569)
(1,568,974)
(2,657,029)
199,921
(285,569)
(2,742,677)
22
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
53,910
194,393
Adjustments for:
Taxation charged
8,607
40,642
Finance costs
255,358
252,370
Loss on disposal of tangible fixed assets
66,905
3,480
Depreciation and impairment of tangible fixed assets
218,749
228,914
Movements in working capital:
Decrease in stocks
105,025
86,087
(Increase)/decrease in debtors
(1,892,040)
306,804
Increase/(decrease) in creditors
1,601,601
(239,856)
Increase/(decrease) in deferred income
53,916
(25,105)
Cash generated from operations
472,031
847,729
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