Velden Engineering (U.K.) Limited Company accounts

COMPANY REGISTRATION NUMBER: 01556804

Velden Engineering (U.K.) Limited

Financial Statements

31 December 2024

Velden Engineering (U.K.) Limited

Financial Statements

Year ended 31 December 2024

Contents	Page

Officers and professional advisers	1

Strategic report	2

Directors' report	4

Independent auditor's report to the members	6

Statement of comprehensive income	13

Statement of financial position	14

Statement of changes in equity	15

Statement of cash flows	16

Notes to the financial statements	17

Velden Engineering (U.K.) Limited

Officers and Professional Advisers

The board of directors	Mr A Kitchen
	Mrs J Kitchen
	Miss A N Kitchen

Company secretary	Mrs A M Gordon

Registered office	Columbia Mill
	Bedford Street
	Bolton
	Lancashire
	England
	BL1 4BA

Auditor	Hill Eckersley & Co
	Chartered accountants & statutory auditor
	No 1 Pavilion Square
	Cricketers Way
	Westhoughton
	Bolton
	BL5 3AJ

Bankers	National Westminster
	PO Box 666
	Waterloo Street
	Bolton
	Lancashire
	BL1 8FH

Velden Engineering (U.K.) Limited

Strategic Report

Year ended 31 December 2024

The directors present their strategic report for the year ended 31 December 2024. Business review and principal activities The principal activity of the company continued to be the provision of sub-contract engineering services. Review of business and future outlook The directors are disappointed with the overall results for 2024, however acknowledge the ongoing challenges with change of UK government, increasing employment and running costs along with worldwide factors such as the war in Ukraine, US election which impacted marketplace confidence and also affected the supply and price of materials. Difficult trading conditions are expected to continue, however, there are solid long-term relationships with the customer base, and the directors expect the company to use its best endeavours to achieve positive results with existing customers whilst seeking out new markets and customers to continue to drive the company forward and back to long term trend growth. The company provides a wide range of services to customers and to many provides a comprehensive one stop service. The intention is to continue to invest in new technologies to maintain a competitive advantage in the marketplace. Principal risks and uncertainties Further material supply chain and energy inflation issues caused by the war in Ukraine are impacting on our ability to respond and deliver to customer requirements. Financial risk management Exposure to a variety of financial risk include liquidity risk, exchange rate risk, and interest rate risk. The directors actively manage these risks by monitoring levels of risk and related cost. No derivatives are used. Key performance indicators Internally, the senior management team uses a variety of KPI's to assess and monitor development, performance and trends within the business. These are reported to the directors and acted upon on a regular basis. The principal key performance indicators used by the directors to review performance are as follows: Turnover: £7,597,537 (2023: £9,833,975) Gross Profit %: 30.4% (2023: 26.8%) Operating Profit:£190,425 (2023: 737,600) Balance Sheet value: £3,787,246 (2023: £3,941,031)

This report was approved by the board of directors on 29 September 2025 and signed on behalf of the board by:

Mr A Kitchen	Mrs A M Gordon
Director	Company Secretary

Registered office:

Columbia Mill

Bedford Street

Bolton

Lancashire

England

BL1 4BA

Velden Engineering (U.K.) Limited

Directors' Report

Year ended 31 December 2024

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

Directors

The directors who served the company during the year were as follows:

Mr A Kitchen
Mrs J Kitchen
Miss A N Kitchen	(Appointed 5 June 2024)

Dividends

Particulars of recommended dividends are detailed in note 13 to the financial statements.

Financial instruments

The company's financial instruments comprise sterling bank accounts and loans together with various balances such as accounts receivable and accounts payable that arise directly from its operations.

The company may offer credit terms to its customers which allow payment of the debt after delivery of goods and services. The company is at risk to the extent that a customer may not be able to pay on the specified due date. This risk is mitigated by strong on-going customer relationships.

The company borrows from its bankers using either overdrafts or term loans whose tenure depends on the nature of the asset and management's view of the future direction of interest rates.

The company manages its liquidity risk, to ensure sufficient it meets its financial obligations as and when they fall due. The company expects to meet its financial obligations through operating cash flows.

Disclosure of information in the strategic report

The company has chosen in accordance with s414C(11) Companies Act 2006, to set out its company's strategic report information required by schedule 7 of the Large and Medium sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors report. It has done so in respect of future developments. a statement that it has done so and in respect of which information it has done so.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' 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 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 judgments 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. The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors on 29 September 2025 and signed on behalf of the board by:

Mr A Kitchen	Mrs A M Gordon
Director	Company Secretary

Registered office:

Columbia Mill

Bedford Street

Bolton

Lancashire

England

BL1 4BA

Velden Engineering (U.K.) Limited

Independent Auditor's Report to the Members of Velden Engineering (U.K.) Limited

Year ended 31 December 2024

Opinion

We have audited the financial statements of Velden Engineering (U.K.) Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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; - 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. 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. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the audit:

- the information given in the strategic report and the directors' report 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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: -the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; -we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge. -we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation; -we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and -identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: -making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and -considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: -performed analytical procedures to identify any unusual or unexpected relationships; -tested journal entries to identify unusual transactions; -assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and -investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: -agreeing financial statement disclosures to underlying supporting documentation; -reading the minutes of meetings of those charged with governance; -inquiring of management as to actual and potential litigation and claims; and -reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company’s legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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. 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: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: -the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; -we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sub contract engineering sector; -we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including employment, environmental and health and safety legislation; -we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and -identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: -making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and -considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: -performed analytical procedures to identify any unusual or unexpected relationships; -tested journal entries to identify unusual transactions; -assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and -investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: -agreeing financial statement disclosures to underlying supporting documentation; -reading the minutes of meetings of those charged with governance; -inquiring of management as to actual and potential litigation and claims; and -reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company’s legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to inquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.

Anna Heyes FCA

(Senior Statutory Auditor)

For and on behalf of

Hill Eckersley & Co

Chartered accountants & statutory auditor

No 1 Pavilion Square

Cricketers Way

Westhoughton

Bolton

BL5 3AJ

29 September 2025

Velden Engineering (U.K.) Limited

Statement of Comprehensive Income

Year ended 31 December 2024

		2024	2023
Note		£	£
Turnover	4	7,597,537	9,833,975

Cost of sales	5,285,031	7,194,505
	------------	------------
Gross profit	2,312,506	2,639,470

Distribution costs		47,668	81,078
Administrative expenses		2,178,364	1,821,732
Other operating income	5	103,951	1,000
		------------	------------
Operating profit	6	190,425	737,660

Other interest receivable and similar income	10	2,798	2,876
Interest payable and similar expenses	11	78,788	87,539
		------------	------------
Profit before taxation		114,435	652,997

Tax on profit	12	92,803	341,140
		---------	---------
Profit for the financial year and total comprehensive income		21,632	311,857
		---------	---------

All the activities of the company are from continuing operations.

Velden Engineering (U.K.) Limited

Statement of Financial Position

31 December 2024

	2024	2023
Note	£	£

Fixed assets

Tangible assets	14	4,907,604	4,103,857

Current assets

Stocks	15	879,878	933,943
Debtors	16	1,405,035	1,086,619
Cash at bank and in hand		15,307	578,732
		------------	------------
		2,300,220	2,599,294

Creditors: amounts falling due within one year	17	1,383,654	1,506,650
		------------	------------
Net current assets		916,566	1,092,644
		------------	------------
Total assets less current liabilities		5,824,170	5,196,501

Creditors: amounts falling due after more than one year	18	1,012,702	481,682

Provisions	20	1,024,222	773,785
		------------	------------
Net assets		3,787,246	3,941,034
		------------	------------

Capital and reserves

Called up share capital	23	66,661	66,661
Share premium account	24	75,913	75,913
Revaluation reserve	24	–	7,060
Profit and loss account	24	3,644,672	3,791,400
		------------	------------
Shareholders funds		3,787,246	3,941,034
		------------	------------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

These financial statements were approved by the board of directors and authorised for issue on 29 September 2025 , and are signed on behalf of the board by:

Mr A Kitchen
Director

Company registration number: 01556804

Velden Engineering (U.K.) Limited

Statement of Changes in Equity

Year ended 31 December 2024

			Called up share capital	Share premium account	Revaluation reserve	Profit and loss account	Total
			£	£	£	£	£
At 1 January 2023			66,661	75,913	8,222	3,599,361	3,750,157

Profit for the year						311,857	311,857
Other comprehensive income for the year:
	Reclassification from revaluation reserve to profit and loss account		–	–	( 1,162)	1,162	–
			--------	--------	-------	------------	------------
Total comprehensive income for the year			–	–	( 1,162)	313,019	311,857

Dividends paid and payable		13	–	–	–	( 120,980)	( 120,980)
			--------	--------	-------	------------	------------
Total investments by and distributions to owners			–	–	–	( 120,980)	( 120,980)

At 31 December 2023			66,661	75,913	7,060	3,791,400	3,941,034

Profit for the year						21,632	21,632
Other comprehensive income for the year:
	Reclassification from revaluation reserve to profit and loss account		–	–	( 7,060)	7,060	–
			--------	--------	-------	------------	------------
Total comprehensive income for the year			–	–	( 7,060)	28,692	21,632

Dividends paid and payable		13	–	–	–	( 175,420)	( 175,420)
			----	----	----	---------	---------
Total investments by and distributions to owners			–	–	–	( 175,420)	( 175,420)

			--------	--------	----	------------	------------
At 31 December 2024			66,661	75,913	–	3,644,672	3,787,246
			--------	--------	----	------------	------------

Velden Engineering (U.K.) Limited

Statement of Cash Flows

Year ended 31 December 2024

	2024	2023
	£	£

Cash flows from operating activities

Profit for the financial year	21,632	311,857

Adjustments for:
Depreciation of tangible assets	530,017	457,252
Other interest receivable and similar income	( 2,798)	( 2,876)
Interest payable and similar expenses	78,788	87,539
Loss on disposal of tangible assets	140,791	–
Tax on profit	92,803	341,140
Accrued expenses	4,226	11,209

Changes in:
Stocks	54,065	195,714
Trade and other debtors	( 318,416)	194,154
Trade and other creditors	( 227,693)	( 368,789)
	---------	------------
Cash generated from operations	373,415	1,227,200

Interest paid	( 78,788)	( 87,539)
Interest received	2,798	2,876
	---------	------------
Net cash from operating activities	297,425	1,142,537
	---------	------------

Cash flows from investing activities

Purchase of tangible assets	( 296,704)	( 191,283)
Proceeds from sale of tangible assets	59,149	–
	---------	------------
Net cash used in investing activities	( 237,555)	( 191,283)
	---------	------------

Cash flows from financing activities

Proceeds from borrowings	141,665	489,879
Payments of finance lease liabilities	( 589,540)	( 519,541)
Dividends paid	( 175,420)	( 120,980)
	---------	------------
Net cash used in financing activities	( 623,295)	( 150,642)
	---------	------------

Net (decrease)/increase in cash and cash equivalents	( 563,425)	800,612
Cash and cash equivalents at beginning of year	578,732	(221,880)
	---------	---------
Cash and cash equivalents at end of year	15,307	578,732
	---------	---------

Velden Engineering (U.K.) Limited

Notes to the Financial Statements

Year ended 31 December 2024

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Columbia Mill, Bedford Street, Bolton, Lancashire, BL1 4BA, England.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Plant and equipment The company's business is capital intensive and the annual depreciation of plant and equipment forms a significant component of total costs charged to the income statement. Management reviews the residual values and useful lives of plant and equipment at each balance sheet date in accordance with the accounting policy. The estimation of the residual values and useful lives involves significant judgement.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. 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 is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Leasehold property improvements	-	2% straight line
Plant & machinery	-	10% reducing balance
Motor vehicles	-	25% reducing balance
Office equipment	-	25% reducing balance

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

4. Turnover

Turnover arises from:

	2024	2023
	£	£
Sale of goods	7,597,537	9,833,975
	------------	------------

The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:

	2024	2023
	£	£
United Kingdom	6,057,083	6,915,544
Overseas	1,540,454	2,918,431
	------------	------------
	7,597,537	9,833,975
	------------	------------

5. Other operating income

	2024	2023
	£	£
Other operating income	103,951	1,000
	---------	-------

6. Operating profit

Operating profit or loss is stated after charging:

	2024	2023
	£	£
Depreciation of tangible assets	530,017	457,252
Loss on disposal of tangible assets	140,791	–
Operating lease rentals	7,031	5,128
	---------	---------

7. Auditor's remuneration

	2024	2023
	£	£
Fees payable for the audit of the financial statements	8,400	8,000
	-------	-------

8. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2024	2023
	No.	No.
Production staff	55	55
Administrative staff	12	11
	----	----
	67	66
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2024	2023
	£	£
Wages and salaries	2,269,082	2,188,601
Social security costs	232,890	223,370
Other pension costs	65,343	63,283
	------------	------------
	2,567,315	2,475,254
	------------	------------

9. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2024	2023
	£	£
Remuneration	11,956	5,215
	--------	-------

10. Other interest receivable and similar income

	2024	2023
	£	£
Interest on cash and cash equivalents	2,798	2,876
	-------	-------

11. Interest payable and similar expenses

	2024	2023
	£	£
Interest on obligations under finance leases and hire purchase contracts	68,594	73,321
Other interest payable and similar charges	10,194	14,218
	--------	--------
	78,788	87,539
	--------	--------

12. Tax on profit

Major components of tax expense

	2024	2023
	£	£

Current tax:

UK current tax expense	–	157,634
Adjustments in respect of prior periods	( 157,634)	–
	---------	---------
Total current tax	( 157,634)	157,634
	---------	---------

Deferred tax:

Origination and reversal of timing differences	250,437	( 5,743)
Impact of change in tax rate	–	189,249
	---------	---------
Total deferred tax	250,437	183,506
	---------	---------
Tax on profit	92,803	341,140
	---------	---------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 25 %).

	2024	2023
	£	£
Profit on ordinary activities before taxation	114,435	652,997
	---------	---------
Profit on ordinary activities by rate of tax	28,609	163,249
Effect of expenses not deductible for tax purposes	588	485
Effect of capital allowances and depreciation	988	916
Effect of different UK tax rates on some earnings	–	(9,915)
Utilisation of tax losses	( 157,634)	–
Unused tax losses	220,252	–
Change in deferred tax rate	–	186,405
	---------	---------
Tax on profit	92,803	341,140
	---------	---------

Factors that may affect future tax expense

The company has tax losses carried forward of £220,252 (2023: £nil).

13. Dividends

Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):

	2024	2023
	£	£
Equity dividends on Ordinary shares	–	2,000
Equity dividends on 'A' ordinary shares	71,385	56,890
Equity dividends on 'B' ordinary shares	39,180	2,000
Equity dividends on 'C' Ordinary shares	3,265	2,000
Equity dividends on 'D' Ordinary shares	3,265	2,000
Equity dividends on 'E' Ordinary shares	58,325	56,090
	---------	---------
	175,420	120,980
	---------	---------

14. Tangible assets

	Leasehold property improvements	Plant and machinery	Motor vehicles	Equipment	Total
	£	£	£	£	£
Cost
At 1 January 2024	196,845	9,731,956	176,627	617,431	10,722,859
Additions	750	1,437,065	34,995	60,894	1,533,704
Disposals	–	( 565,776)	( 37,858)	–	( 603,634)
	---------	-------------	---------	---------	-------------
At 31 December 2024	197,595	10,603,245	173,764	678,325	11,652,929
	---------	-------------	---------	---------	-------------
Depreciation
At 1 January 2024	12,405	5,954,031	119,424	533,142	6,619,002
Charge for the year	3,952	477,538	17,739	30,788	530,017
Disposals	–	( 373,772)	( 29,922)	–	( 403,694)
	---------	-------------	---------	---------	-------------
At 31 December 2024	16,357	6,057,797	107,241	563,930	6,745,325
	---------	-------------	---------	---------	-------------
Carrying amount
At 31 December 2024	181,238	4,545,448	66,523	114,395	4,907,604
	---------	-------------	---------	---------	-------------
At 31 December 2023	184,440	3,777,925	57,203	84,289	4,103,857
	---------	-------------	---------	---------	-------------

Tangible assets held at valuation

In respect of tangible assets held at valuation, the aggregate cost, depreciation and comparable carrying amount that would have been recognised if the assets had been carried under the historical cost model are as follows:

	Plant and machinery
	£
At 31 December 2024
Aggregate cost	10,905,267
Aggregate depreciation	(6,171,855)
	-------------
Carrying value	4,733,412
	-------------

At 31 December 2023
Aggregate cost	9,468,202
Aggregate depreciation	(5,697,357)
	------------
Carrying value	3,770,845
	------------

Finance leases and hire purchase contracts

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

	Plant and machinery
	£
At 31 December 2024	2,506,266
	------------
At 31 December 2023	1,565,627
	------------

15. Stocks

	2024	2023
	£	£
Raw materials and consumables	302,914	130,323
Work in progress	319,457	571,809
Finished goods and goods for resale	257,507	231,811
	---------	---------
	879,878	933,943
	---------	---------

16. Debtors

	2024	2023
	£	£
Trade debtors	1,190,902	994,101
Prepayments and accrued income	56,281	92,441
Corporation tax repayable	157,634	–
Other debtors	218	77
	------------	------------
	1,405,035	1,086,619
	------------	------------

17. Creditors: amounts falling due within one year

	2024	2023
	£	£
Bank loans and overdrafts	161,892	9,568
Trade creditors	409,022	548,418
Accruals and deferred income	96,295	92,069
Corporation tax	–	157,634
Social security and other taxes	176,306	264,665
Obligations under finance leases and hire purchase contracts	396,655	290,874
Other loans	139,593	136,829
Other creditors	3,891	6,593
	------------	------------
	1,383,654	1,506,650
	------------	------------

Bank loans totalling £151,782 (2023: £nil) are secured by way of fixed charges of National Westminster Bank Plc, dated 17 June 2024 and 16 July 2013.

18. Creditors: amounts falling due after more than one year

	2024	2023
	£	£
Bank loans and overdrafts	8,947	19,606
Obligations under finance leases and hire purchase contracts	1,003,755	462,076
	------------	---------
	1,012,702	481,682
	------------	---------

19. Finance leases and hire purchase contracts

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	2024	2023
	£	£
Not later than 1 year	396,655	290,874
Later than 1 year and not later than 5 years	1,003,755	462,076
	------------	---------
	1,400,410	752,950
	------------	---------

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

20. Provisions

	Deferred tax (note 21)
	£
At 1 January 2024	773,785
Additions	250,437
	------------
At 31 December 2024	1,024,222
	------------

21. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2024	2023
	£	£
Included in provisions (note 20)	1,024,222	773,785
	------------	---------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2024	2023
	£	£
Accelerated capital allowances	1,024,222	773,785
	------------	---------

22. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 65,343 (2023: £ 63,283 ).

At the balance sheet date, unpaid contributions of £11,045 (2023: £12,071) were due to the fund. They are included in accruals.

23. Called up share capital

Issued, called up and fully paid

	2024		2023
	No.	£	No.	£
Ordinary shares of £ 1 each	26,664	26,664	26,664	26,664
'A' Ordinary shares of £ 1 each	16,667	16,667	16,667	16,667
'B' Ordinary shares of £ 1 each	13,331	13,331	13,331	13,331
'C' Ordinary shares of £ 1 each	3,333	3,333	3,333	3,333
'D' Ordinary shares of £ 1 each	3,333	3,333	3,333	3,333
'E' Ordinary shares of £1 each	3,333	3,333	3,333	3,333
	--------	--------	--------	--------
	66,661	66,661	66,661	66,661
	--------	--------	--------	--------

24. Reserves

Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs. Revaluation reserve - This reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income. Profit and loss account - This reserve records retained earnings and accumulated losses.

25. Analysis of changes in net debt

	At 1 Jan 2024	Cash flows	At 31 Dec 2024
	£	£	£
Cash at bank and in hand	578,732	(563,425)	15,307
Debt due within one year	(300,442)	(258,105)	(558,547)
Debt due after one year	(481,682)	(531,020)	(1,012,702)
	---------	------------	------------
	( 203,392)	( 1,352,550)	( 1,555,942)
	---------	------------	------------

26. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2024	2023
	£	£
Not later than 1 year	24,323	4,066
Later than 1 year and not later than 5 years	119,589	339
	---------	-------
	143,912	4,405
	---------	-------

27. Controlling party

The company was under the control of Mr A Kitchen throughout the current and previous period. Mr A Kitchen is the majority shareholder and Chairman.