SYSTEM HYDRAULICS LIMITED


Director	GONZALEZ, Alberto


Company Secretary	GONZALEZ, Alberto


Registered Address	Unit 1 Crown Street
	Carlisle
	CA2 5AB


Registered Number	03136864 (England and Wales)

Notes to the Financial Statements
for the year ended 31 March 2025

1.	Accounting policies

	Statutory information
	The company is a private company limited by shares and registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

	Basis of preparation
	The financial statements have been prepared under the historical cost convention on a going concern basis unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

	Functional and presentation currency
	The financial statements are presented in sterling and this is the functional currency of the company.

	Turnover policy
	Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and/or the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

Turnover policy

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and/or the rendering of services.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer.

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

	Defined contribution pension plan
	The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further obligation. Contributions to defined contribution plans are expensed in the period to which they relate. Amounts not paid are shown in other creditors in the Statement of Financial Position. The assets of the plan are held separately from the company in independently administered funds.

Defined contribution pension plan

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

Contributions to defined contribution plans are expensed in the period to which they relate.  Amounts not paid are shown in other creditors in the Statement of Financial Position.  The assets of the plan are held separately from the company in independently administered funds.

	Foreign currency translation
	Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to the Income Statement

Foreign currency translation

Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to the Income Statement

	Current taxation
	Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

	Deferred tax
	Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

Deferred tax

Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. 

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

	Tangible fixed assets and depreciation
	Tangible fixed assets are stated at cost or valuation less depreciation. 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 disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement. Depreciation is provided on all tangible fixed assets as follows: Land and buildings - over life of lease.

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost or valuation less depreciation. 

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 disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement.

Depreciation is provided on all tangible fixed assets as follows:

Land and buildings - over life of lease.


	Reducing balance (%)	Straight line (years)
Land and buildings	-	10
Plant and machinery	-	15
Vehicles	25	-

	Finance leases and hire purchase contracts
	Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, and hire purchase contracts are capitalised in the Statement of Financial Position. They are depreciated over the shorter of their useful lives or the term of the lease. All other lease arrangements are classified as an operating lease. Payments made under operating leases are charged to the Income Statement on a straight line basis over the lease term.

Finance leases and hire purchase contracts

Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, and hire purchase contracts are capitalised in the Statement of Financial Position. They are depreciated over the shorter of their useful lives or the term of the lease. All other lease arrangements are classified as an operating lease.

Payments made under operating leases are charged to the Income Statement on a straight line basis over the lease term.

	Stocks and work in progress
	Stocks are valued at the lower of cost and estimated selling price (less any associated costs to enable such sales to complete). At each date of Statement of Financial Position, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to completed the sale. The impairment loss is recognised immediately in the Income Statement.

	Trade and other debtors
	Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

Trade and other debtors

Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

	Trade and other creditors
	Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

	Financial instruments
	The Company 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 ordinary shares.

	Government grants or assistance
	Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. Grants of a revenue nature are recognised in the Income Statement in the same period as the related expenditure.

Government grants or assistance

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.

Grants of a revenue nature are recognised in the Income Statement in the same period as the related expenditure.

2.	Average number of employees


		2025		2024
	Average number of employees during the year	18		16

3.	Tangible fixed assets

	Land & buildings	Plant & machinery	Vehicles	Total
	£	£	£	£
Cost or valuation
At 01 April 24	325,542	343,835	6,000	675,377
Additions	15,000	42,785	176,745	234,530
At 31 March 25	340,542	386,620	182,745	909,907
Depreciation and impairment
At 01 April 24	317,920	261,169	4,458	583,547
Charge for year	4,809	18,168	386	23,363
At 31 March 25	322,729	279,337	4,844	606,910
Net book value
At 31 March 25	17,813	107,283	177,901	302,997
At 31 March 24	7,622	82,666	1,542	91,830

4.	Debtors: amounts due within one year

	2025	2024
	£	£
Trade debtors / trade receivables	430,900	214,827
Other debtors	109,370	350,777
Prepayments and accrued income	325,831	225,002
Total	866,101	790,606

5.	Creditors: amounts due within one year

	2025	2024
	£	£
Trade creditors / trade payables	129,756	142,617
Bank borrowings and overdrafts	-	45,985
Taxation and social security	290,124	184,219
Payments received on account	13,195	53,880
Finance lease and HP contracts	16,766	6,303
Other creditors	96,349	121,405
Accrued liabilities and deferred income	987,296	336,162
Total	1,533,486	890,571


	Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. Other creditors include £86,888 (2024 - £114,224) owed to Close Brothers with whom invoices are factored. This creditor is secured on the trade debtors of the company. Bank borrowings and overdrafts are secured by fixed and floating charges over the assets of the company. Finance lease and HP contracts are secured against the assets to which they relate.

Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

Other creditors include £86,888 (2024 - £114,224) owed to Close Brothers with whom invoices are factored. This creditor is secured on the trade debtors of the company.

Bank borrowings and overdrafts are secured by fixed and floating charges over the assets of the company.

Finance lease and HP contracts are secured against the assets to which they relate.

6.	Creditors: amounts due after one year

	2025	2024
	£	£
Other creditors	154,234	-
Total	154,234	-


	Finance lease and HP contracts equal to £154,234 (2024 - £Nil) are included within other creditors and are secured against the assets to which they relate. Bank borrowings and overdrafts are secured by fixed and floating charges over the assets of the company.

7.	Provisions for liabilities
	The provision for deferred tax is made up of £31,800 in respect of accelerated capital allowances.

	2025	2024
	£	£
Net deferred tax liability (asset)	31,800	21,000
Total	31,800	21,000

8.	Pension commitments
	The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company in an independently administered fund. At the balance sheet date, unpaid contributions of £2,150 (2024 - £1,567) were due to the fund. They are included in other creditors.

9.	Other commitments
	At 31 March 2025 the company had future minimum lease payments under non-cancellable operating leases of £518,398 (2024 - £567,755).

10.	Directors advances, credits and guarantees
	On 1 April 2024 a Director owed the Company £275,884. During the period this director was advanced a further £99,450 and repaid £340,929. At 31 March 2025 this Director owed the Company £34,405. No interest was charged on this loan. The loan is repayable on demand.

	Notes	2025		2024
		£	£	£	£
Fixed assets
Tangible assets	3		302,997		91,830
			302,997		91,830
Current assets
Stocks		279,759		256,866
Debtors	4	866,101		790,606
Cash at bank and on hand		715,859		234,584
		1,861,719		1,282,056
Creditors amounts falling due within one year	5	(1,533,486)		(890,571)
Net current assets (liabilities)			328,233		391,485
Total assets less current liabilities			631,230		483,315
Creditors amounts falling due after one year	6		(154,234)		-
Provisions for liabilities	7		(31,800)		(21,000)
Net assets			445,196		462,315
Capital and reserves
Called up share capital			51,100		51,100
Other reserves			90,200		90,200
Profit and loss account			303,896		321,015
Shareholders' funds			445,196		462,315