Company registration number 02439668 (England and Wales)
HOWELLS RAILWAY PRODUCTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
HOWELLS RAILWAY PRODUCTS LIMITED
COMPANY INFORMATION
Directors
J B Dudley
D P Howells
R L Howells
D J Roberts
Secretary
J B Dudley
Company number
02439668
Registered office
Longley Lane
Sharston Industrial Estate
Wythenshawe
Manchester
M22 4SS
Auditor
Alexander & Co LLP
Centurion House
129 Deansgate
Manchester
M3 3WR
HOWELLS RAILWAY PRODUCTS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 18
HOWELLS RAILWAY PRODUCTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 1 -

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

Review of the business

The company’s performance during the financial year has proved difficult, given the market conditions for the rail sector in general. A lower turnover has been achieved by comparison with the previous year of £3.6 m (2024: £4.3m).

The rail industry in general remains a difficult sector to serve. The start of control period 7 in April 2024 was not implemented in the manner expected so the slow down in spend from private contractors working for Network R ail has continued.

We continue to actively pursue opportunities outside of the UK rail market to ensure a more balance d and sustainable portfolio of work and clients.

The continued good management of finance and credit within our customer base remains a priority.

Key supporting financial data is set out in the attached statements.

Principal risks and uncertainties

The Board of Directors has primary responsibility for identifying the principal risks that the company faces and for developing appropriate policies to manage those risks.

Price risk, credit risk, liquidity risk and cash flow risk

The business’ principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance the business’ operations.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding for business operations and the use of money market facilities where funds are available.

Trade debtors are managed in respect of credit and cashflow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

On behalf of the board

D P Howells
Director
17 September 2025
HOWELLS RAILWAY PRODUCTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 2 -

The directors present their annual report and financial statements for the year ended 31 March 2025.

Principal activities

The principal activity of the company continued to be that of manufacturing of railway equipment.

Results and dividends

The results for the year are set out on page 7.

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 B Dudley
D P Howells
R L Howells
D J Roberts
Auditor

Alexander & Co LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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; and

- 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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

HOWELLS RAILWAY PRODUCTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 3 -
On behalf of the board
D P Howells
Director
17 September 2025
HOWELLS RAILWAY PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HOWELLS RAILWAY PRODUCTS LIMITED
- 4 -
Opinion

We have audited the financial statements of Howells Railway Products Limited (the 'company') for the year ended 31 March 2025 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 March 2025 and of its loss 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.

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.

HOWELLS RAILWAY PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HOWELLS RAILWAY PRODUCTS LIMITED (CONTINUED)
- 5 -
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.

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

Capability of the audit in detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the company, we identified that the principal risks of non-compliance with laws and regulations related to breaches of the legal and regulatory framework that the company operates in. We considered the extent to which non-compliance might have a material effect on the financial statements. The key laws and regulations we considered in this context included UK Companies Act 2006, employment law, health and safety and tax legislation.

We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to the posting of inappropriate journal entries to manipulate financial results and potential management bias in accounting estimates.

HOWELLS RAILWAY PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HOWELLS RAILWAY PRODUCTS LIMITED (CONTINUED)
- 6 -

As a result of the above, our audit procedures performed included:

- Discussions with management and those charged with governance in relation to known or suspected instances of non-compliance with laws and regulation and fraud.

- Agreeing financial statements disclosures to underlying supporting documentation and assessing compliance with relevant laws and regulations.

- Testing the appropriateness of journal entries and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

- Assessing whether the judgements made in making accounting estimates are indicative of a potential bias.

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

There are inherent limitations in the audit procedures described above. The test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, mean that there is an unavoidable risk that even some material misstatements in respect of irregularities may remain undiscovered even though the audit is properly planned and performed in accordance with ISAs (UK).

We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Our examination should therefore not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance that might exist. The responsibility for safeguarding the assets of the company and for the prevention and detection of fraud, error and non-compliance with law or regulations rests with the D irectors of Howells Railway Products Limited.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

Emma Ball (Senior Statutory Auditor)
For and on behalf of Alexander & Co LLP, Statutory Auditor
Chartered Accountants
Centurion House
129 Deansgate
Manchester
M3 3WR
17 September 2025
HOWELLS RAILWAY PRODUCTS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2025
- 7 -
2025
2024
as restated
Notes
£
£
Turnover
4
3,552,643
4,342,778
Cost of sales
(2,642,311)
(2,785,228)
Gross profit
910,332
1,557,550
Administrative expenses
(1,677,281)
(1,667,674)
Operating loss
5
(766,949)
(110,124)
Interest receivable and similar income
7
4,710
1,698
Interest payable and similar expenses
8
(2,107)
(381)
Loss before taxation
(764,346)
(108,807)
Tax on loss
9
-
0
(10,479)
Loss for the financial year
(764,346)
(119,286)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

HOWELLS RAILWAY PRODUCTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
- 8 -
2025
2024
£
£
Loss for the year
(764,346)
(119,286)
Other comprehensive income
-
-
Total comprehensive income for the year
(764,346)
(119,286)
HOWELLS RAILWAY PRODUCTS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2025
31 March 2025
- 9 -
2025
2024
as restated
Notes
£
£
£
£
Current assets
Stocks
10
1,150,067
1,269,146
Debtors
11
4,518,161
4,370,580
Cash at bank and in hand
415,225
1,118,449
6,083,453
6,758,175
Creditors: amounts falling due within one year
12
(322,187)
(232,563)
Net current assets
5,761,266
6,525,612
Capital and reserves
Called up share capital
14
2
2
Profit and loss reserves
5,761,264
6,525,610
Total equity
5,761,266
6,525,612

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

The financial statements were approved by the board of directors and authorised for issue on 17 September 2025 and are signed on its behalf by:
D P Howells
Director
Company registration number 02439668 (England and Wales)
HOWELLS RAILWAY PRODUCTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 March 2024:
Balance at 1 April 2023
2
6,443,361
6,443,363
Effect of change in accounting policy
-
201,535
201,535
As restated
2
6,644,896
6,644,898
Year ended 31 March 2024:
Loss and total comprehensive income
-
(142,584)
(142,584)
Effect of change in accounting policy
23,298
23,298
Total comprehensive income
-
(119,286)
(119,286)
Balance at 31 March 2024
2
6,525,610
6,525,612
Year ended 31 March 2025:
Loss and total comprehensive income
-
(764,346)
(764,346)
Balance at 31 March 2025
2
5,761,264
5,761,266
HOWELLS RAILWAY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
- 11 -
1
Accounting policies
Company information

Howells Railway Products Limited is a private company limited by shares incorporated in England and Wales. The registered office is Longley Lane, Sharston Industrial Estate, Wythenshawe, Manchester, M22 4SS.

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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. T he company has therefore taken advantage of e xemptions from the following disclosure requirements:

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of The Howells Group PLC. These consolidated financial statements are available to access on Companies House.

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 to the extent that it is probable that the e conomic 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

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

HOWELLS RAILWAY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 12 -
1.4
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, machine costs, tooling costs and assembly costs 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.

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.

1.5
Cash and cash equivalents

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

1.6
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 balance sheet 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 cost. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

HOWELLS RAILWAY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 13 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

Other financial liabilities

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.7
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

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 profit and loss account 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.

HOWELLS RAILWAY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 14 -
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 profit and loss account, 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
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10
Retirement benefits

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

2
Change in accounting policy

The method for stock valuation has been adjusted in the current reporting period to include machine costs, assembly costs and tooling costs. The full cost of the goods is therefore recognised as stock on hand in the balance sheet, which the directors consider is a more accurate representation of bringing the stock into use. The prior year figures have been adjusted following this change in accounting policy.

Th e effect of this change in valuation policy was to increase stock on the balance sheet at 31 March 2025 by £201,738. The change in policy was also applied to prior years and the stock at 31 March 2024 increased by £224,833 and at 31 March 2023 by £201,535 to that previously reported.

Cumulative closing profit and loss reserves at 31 March 2025 increased by £201,738 as a result of the change in accounting policy. Loss before tax in the year ended 31 March 2025 increased by £23,095 compared with the loss that would have been reported had the accounting policy change not been applied. The prior year results were restated to reflect an increase in brought forward profit and loss reserves from 31 March 2023 of £201,535 and a reduction in the loss in the year ended 31 March 2024 £23,298 to that previously reported.

HOWELLS RAILWAY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 15 -
3
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.

In preparing these financial statements, the directors have had to make the following judgements:

- Stock valuation of finished goods is based upon last purchase price and associated costs of making the goods. These costs include labour, machine costs, tooling costs and assembly costs. The directors use their extensive knowledge of the business and stock lines to estimate the costs incorporated. Additional costs incorporated into finished goods value total £201,535 (2024: £224,833).

4
Turnover and other revenue
2025
2024
£
£
Turnover analysed by class of business
Sale of goods
3,552,643
4,342,778
2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
3,296,643
3,950,778
Europe
37,000
300,000
Rest of world
219,000
92,000
3,552,643
4,342,778
2025
2024
£
£
Other revenue
Interest income
4,710
1,698
5
Operating loss
2025
2024
Operating loss for the year is stated after charging:
£
£
Exchange losses
582
-
0
Fees payable to the company's auditor for the audit of the company's financial statements
11,250
10,750
HOWELLS RAILWAY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 16 -
6
Employees

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

2025
2024
Number
Number
Production
34
39
Administration and support
7
7
Management
4
4
Total
45
50

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
1,157,285
1,190,287
Social security costs
99,696
100,171
Pension costs
47,436
43,292
1,304,417
1,333,750
7
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
4,710
1,698
8
Interest payable and similar expenses
2025
2024
£
£
Other interest
2,107
381
9
Taxation
2025
2024
£
£
Current tax
Adjustments in respect of prior periods
-
0
10,479
HOWELLS RAILWAY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
9
Taxation
(Continued)
- 17 -

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
Loss before taxation
(764,346)
(108,807)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
(191,087)
(27,202)
Tax effect of expenses that are not deductible in determining taxable profit
1,208
3,043
Change in unrecognised deferred tax assets
189,879
24,159
Corporation tax prior year adjustment
-
0
10,479
Taxation charge for the year
-
10,479
10
Stocks
2025
2024
as restated
£
£
Finished goods and goods for resale
1,150,067
1,269,146
11
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
963,979
455,562
Amounts owed by group undertakings
3,542,715
3,878,321
Other debtors
-
0
23,289
Prepayments and accrued income
11,467
13,408
4,518,161
4,370,580
12
Creditors: amounts falling due within one year
2025
2024
£
£
Trade creditors
170,254
131,808
Taxation and social security
77,616
26,083
Other creditors
26,940
9,046
Accruals and deferred income
47,377
65,626
322,187
232,563
HOWELLS RAILWAY PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 18 -
13
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
47,436
43,292

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.

14
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
15
Ultimate parent company

The Howells Group Plc is regarded by the directors as being the company's ultimate parent company.

2025-03-31 2024-04-01 false false false CCH Software CCH Accounts Production 2025.200 D P Howells R L Howells D J Roberts Mr D J Roberts J B Dudley 02439668 2024-04-01 2025-03-31 02439668 bus:CompanySecretaryDirector1 2024-04-01 2025-03-31 02439668 bus:Director1 2024-04-01 2025-03-31 02439668 bus:Director2 2024-04-01 2025-03-31 02439668 bus:Director3 2024-04-01 2025-03-31 02439668 bus:CompanySecretary1 2024-04-01 2025-03-31 02439668 bus:Director4 2024-04-01 2025-03-31 02439668 bus:RegisteredOffice 2024-04-01 2025-03-31 02439668 2025-03-31 02439668 2023-04-01 2024-03-31 02439668 core:RetainedEarningsAccumulatedLosses 2024-04-01 2025-03-31 02439668 2024-03-31 02439668 core:CurrentFinancialInstruments core:WithinOneYear 2025-03-31 02439668 core:CurrentFinancialInstruments core:WithinOneYear 2024-03-31 02439668 core:CurrentFinancialInstruments 2025-03-31 02439668 core:CurrentFinancialInstruments 2024-03-31 02439668 core:ShareCapital 2025-03-31 02439668 core:ShareCapital 2024-03-31 02439668 core:RetainedEarningsAccumulatedLosses 2025-03-31 02439668 core:RetainedEarningsAccumulatedLosses 2024-03-31 02439668 core:RetainedEarningsAccumulatedLosses core:PriorPeriodIncreaseDecrease 2023-03-31 02439668 core:ShareCapital 2023-03-31 02439668 core:RetainedEarningsAccumulatedLosses 2023-03-31 02439668 core:ShareCapitalOrdinaryShareClass1 2025-03-31 02439668 core:ShareCapitalOrdinaryShareClass1 2024-03-31 02439668 1 2024-04-01 2025-03-31 02439668 1 2023-04-01 2024-03-31 02439668 core:UKTax 2024-04-01 2025-03-31 02439668 core:UKTax 2023-04-01 2024-03-31 02439668 bus:OrdinaryShareClass1 2024-04-01 2025-03-31 02439668 bus:OrdinaryShareClass1 2025-03-31 02439668 bus:OrdinaryShareClass1 2024-03-31 02439668 bus:PrivateLimitedCompanyLtd 2024-04-01 2025-03-31 02439668 bus:FRS102 2024-04-01 2025-03-31 02439668 bus:Audited 2024-04-01 2025-03-31 02439668 bus:FullAccounts 2024-04-01 2025-03-31 xbrli:pure xbrli:shares iso4217:GBP