REGISTERED NUMBER: 00828340 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE PERIOD

1 NOVEMBER 2023 TO 31 DECEMBER 2024

FOR

CURROCK ENGINEERING COMPANY LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

Directors:

K W Hunter

M C Beaumont

P H C Bols

D D Sterne

J F Murray

Secretary:

B R Burt

Registered office:

Unit 9, Tattersall Way

Widford Industrial Estate

Chelmsford

Essex

CM1 3UB

Registered number:

00828340 (England and Wales)

Auditors:

Baverstocks Limited

Statutory Auditor

Chartered Certified Accountants

Dickens House

Guithavon Street

Witham

Essex

CM8 1BJ

The directors present their strategic report for the period 1 November 2023 to 31 December 2024.

Review of business

The principal activities of the company continued during the year as precision engineers.

The key financial and other performance indicators during the year were as follows:

2024

2023

Change

Turnover

8,159,171

5,777,433

+41.22%

Gross profit/(loss)

-932,382

-4,500,917

+79.28%

Profit/(Loss) after tax

-4,378,349

-7,288,802

+39.93%

Equity shareholders' funds

-3,497,787

880,562

-497.22%

Stock and work in progress

4,447,306

4,009,423

+10.92%

Gross profit percentage

-11.43%

-77.91%

+85.33%

Current ratio

52%

84%

-38.10%

Average number of employees

80

81

-1.23%

From late 2023 through 2024 the company continued to experience liquidity problems and was supported financially by MBDA UK Ltd who acquired the company on 5 September 2024. Following the acquisition and the appointment of a new board, the company embarked on a turnaround plan focussed on returning the company to future profitability. As a key long term customer, MBDA UK has committed to maintaining its support of the company for the long term.

Turnover in the period shows a significant improvement over the previous year as material supply issues were eased by the financial support provided by MBDA UK. The level of losses has been significantly reduced, although the company still made a post-tax loss of £4,378,349 in the period.

Finance charges for the period were significantly higher than 2023 reflecting the pre-acquisition cost of the financial support provided by MBDA UK Ltd.

Principal risks and uncertainties

The company's key market is defence and with a capital investment programme and the recent announcements regarding increased defence spending by NATO governments, the directors believe the company will be well placed to meet any future increased demand from customers.

With an order book of £30.2 million at 31 December 2024 this represents a significant asset for the company. However, one of the key challenges facing the company is to recover the recent history of poor customer delivery performance in terms of both time and quality. Since the change in ownership the company has progressively improved levels of customer satisfaction and further actions being taken to address this challenge include launching a recruitment campaign to build upon the reducing levels of employee attrition, and significant investment in new highly accurate CNC machining and measuring equipment as part of the wider capital investment programme.

Future developments

With the support of MBDA UK, the company has embarked on a major investment programme that will radically improve the operating capabilities of the company. Together with the implementation of a new ERP system, the board is investing for the future.

On behalf of the board:

By order of the board:

B R Burt - Secretary

29 September 2025

The directors present their report with the financial statements of the company for the period 1 November 2023 to 31 December 2024.

Dividends

No dividends will be distributed for the period ended 31 December 2024.

Directors

The directors who have held office during the period from 1 November 2023 to the date of this report are as follows:

A Murray - resigned 5 September 2024

Mrs J Murray - resigned 5 September 2024

K W Hunter - appointed 5 September 2024

Ms A G Randhawa - appointed 5 September 2024 - resigned 31 October 2024

M C Beaumont - appointed 5 September 2024

P H C Bols - appointed 5 September 2024

D D Sterne - appointed 2 October 2024

J F Murray - appointed 1 November 2024

Statement of directors' responsibilities

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement as to disclosure of information to auditors

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Auditors

The auditors, Baverstocks Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:

By order of the board:

B R Burt - Secretary

29 September 2025

Opinion

We have audited the financial statements of Currock Engineering Company Limited (the 'company') for the period ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

Material uncertainty related 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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 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 the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page three, 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 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.

Auditors' 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 a Report of the Auditors 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:

Our approach to assessing the risks of material misstatement due to fraud and noncompliance with laws and regulations was as follows:-

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are those that relate to compliance with the Companies Act 2006, Financial Reporting Standard 102, relevant tax legislation and The British Standards Institution (BSI).

We assessed the risks of material misstatements in respect of fraud and determined that the principal risks were related to posting of journal entries to manipulate the results for the financial year. We made enquiries of management during the audit to determine any instances of fraud, while also discussing the areas of risk in relation to audit as part of our audit team meeting.

Based upon the results of our risk assessment we designed our audit procedures to identify noncompliance with such laws and regulations identified above and also material misstatements in respect of fraud as follows:-

-

We obtained an understanding of the legal and regulatory framework in relation to the entity and how it complies with this framework. This included discussions with management, reviews of legal and professional fees and a review of the results of audits conducted by BSI.

-

We discussed with the management the entity's policies and procedures including systems and controls. Compliance with these was tested via discussion and walkthrough testing of controls.

-

We enquired of management of their policies and procedures in relation to fraud and their knowledge of any actual, suspected, or alleged fraud.

-

We ensured compliance with Pay as You Earn and Value Added Tax laws via reviewing returns and correspondence.

-

We reviewed the recent results of audits with BSI to ensure ongoing compliance.

-

We considered the risk of fraud through management override, and, in response, we incorporated testing of manual journal entries into our audit approach. This included the testing of journal entries throughout the year as well as year end journals.

-

We agreed the financial statement disclosures to underlying supporting documentation.

-

We enquired of management if there were any potential litigation or claims.

Whilst considering how our audit work addressed the detection of irregularities, we also consider the likelihood of detection based on our approach. Irregularities from fraud are inherently more difficult to detect than those arising from error.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Steven Collins (Senior Statutory Auditor)

for and on behalf of Baverstocks Limited

Statutory Auditor

Chartered Certified Accountants

Dickens House

Guithavon Street

Witham

Essex

CM8 1BJ

29 September 2025

Turnover

3

8,159,171

5,777,433

Cost of sales

9,091,553

10,278,350

Gross loss

(932,382

)

(4,500,917

)

Distribution costs

80,643

75,462

Administrative expenses

2,816,441

2,985,510

2,897,084

3,060,972

Operating loss

5

(3,829,466

)

(7,561,889

)

Interest receivable and similar income

86

22

(3,829,380

)

(7,561,867

)

Interest payable and similar expenses

7

548,969

379,557

Loss before taxation

(4,378,349

)

(7,941,424

)

Tax on loss

8

-

(652,622

)

Loss for the financial period

(4,378,349

)

(7,288,802

)

Loss for the period

(4,378,349

)

(7,288,802

)

Other comprehensive income

-

-

Total comprehensive income for the period

(4,378,349

)

(7,288,802

)

Fixed assets

Tangible assets

10

3,574,190

4,049,037

Current assets

Stocks

11

4,447,306

4,009,423

Debtors

12

1,701,972

1,420,613

Cash at bank

502,370

6,858

6,651,648

5,436,894

Creditors

Amounts falling due within one year

13

12,766,746

6,504,767

Net current liabilities

(6,115,098

)

(1,067,873

)

Total assets less current liabilities

(2,540,908

)

2,981,164

Creditors

Amounts falling due after more than one year

14

956,879

2,100,602

Net (liabilities)/assets

(3,497,787

)

880,562

Capital and reserves

Called up share capital

18

300,200

300,200

Retained earnings

19

(3,797,987

)

580,362

Shareholders' funds

(3,497,787

)

880,562

The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2025 and were signed on its behalf by:

K W Hunter - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 November 2022

300,200

7,924,465

8,224,665

Changes in equity

Dividends

-

(55,301

)

(55,301

)

Total comprehensive income

-

(7,288,802

)

(7,288,802

)

Balance at 31 October 2023

300,200

580,362

880,562

Changes in equity

Total comprehensive income

-

(4,378,349

)

(4,378,349

)

Balance at 31 December 2024

300,200

(3,797,987

)

(3,497,787

)

Cash flows from operating activities

Cash generated from operations

1

4,572,889

(395,692

)

Interest paid

(323,370

)

(156,002

)

Interest element of hire purchase payments paid

(225,599

)

(223,555

)

Taxation refund

-

743,721

Net cash from operating activities

4,023,920

(31,528

)

Cash flows from investing activities

Purchase of tangible fixed assets

(38,120

)

(20,466

)

Sale of tangible fixed assets

45,177

-

Interest received

86

22

Net cash from investing activities

7,143

(20,444

)

Cash flows from financing activities

New loans in year

-

679,683

Loan repayments in year

(768,554

)

(352,167

)

Invoice discounting advance

(1,543,324

)

(144,643

)

Trade finance facility

(871,404

)

195,701

Capital repayments in year

(583,774

)

(250,042

)

Amount introduced by directors

231,505

-

Amount withdrawn by directors

-

(96,838

)

Equity dividends paid

-

(55,301

)

Net cash from financing activities

(3,535,551

)

(23,607

)

Increase/(decrease) in cash and cash equivalents

495,512

(75,579

)

Cash and cash equivalents at beginning of period

2

6,858

82,437

Cash and cash equivalents at end of period

2

502,370

6,858

1.	Reconciliation of loss before taxation to cash generated from operations

Period

1.11.23

to

Year Ended

31.12.24

31.10.23

£

£

Loss before taxation

(4,378,349

)

(7,941,424

)

Depreciation charges

486,544

475,994

(Profit)/loss on disposal of fixed assets

(18,754

)

979,249

Finance costs

548,969

379,557

Finance income

(86

)

(22

)

(3,361,676

)

(6,106,646

)

(Increase)/decrease in stocks

(437,883

)

3,141,192

(Increase)/decrease in trade and other debtors

(512,864

)

1,743,454

Increase in trade and other creditors

8,885,312

826,308

Cash generated from operations

4,572,889

(395,692

)

2.	Cash and cash equivalents

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Period ended 31 December 2024

31.12.24

1.11.23

£

£

Cash and cash equivalents

502,370

6,858

Year ended 31 October 2023

31.10.23

1.11.22

£

£

Cash and cash equivalents

6,858

82,437

3.	Analysis of changes in net debt

At 1.11.23

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

6,858

495,512

502,370

6,858

495,512

502,370

Debt

Finance leases

(2,229,666

)

583,774

(1,645,892

)

Debts falling due within 1 year

(2,874,126

)

2,772,890

(101,236

)

Debts falling due after 1 year

(452,596

)

410,392

(42,204

)

(5,556,388

)

3,767,056

(1,789,332

)

Total

(5,549,530

)

4,262,568

(1,286,962

)

1.	Statutory information

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

2.	Accounting policies

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Critical accounting judgements and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

There are no estimates and assumptions that have a significant risk of causing material adjustment in the financial statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Short Leasehold

-

10% on cost

Plant and Machinery

-

25% on reducing balance and 10% on reducing balance

Fixtures and Fittings

-

25% on reducing balance

Motor Vehicles

-

25% on reducing balance

Office Equipment

-

33% on cost

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Invoice discounting

For the period up to 17 September 2024 trade receivables were subject to an invoice discounting facility whereby an advance was received based upon and secured upon trade debtors.

Where the Company has retained significant risks and rewards relating to the discounted debts, separate presentation is adopted whereby the gross debts and a corresponding liability in respect of the advance received is shown separately on the balance sheet within creditors. The interest element of the invoice discounter's charge is recognised as it accrues and included in the profit and loss account within finance costs.

This agreement was terminated on 17 September 2024.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Going concern

The company's liquidity issues continued through 2024, with financial support being provided by MBDA, This situation culminated in MBDA exercising the option to acquire the share capital of the company on 5 September 2024.

Since the acquisition, MBDA has continued to provide funds to meet the day to day working capital requirements of the business and has recently provided significant capital funding to support the investment in 12 new machines required to meet increased demand.

With significant new orders received in 2025 the company has a strong order book valued at £30m with established customers serving the defence sector. This provides clear visibility of future revenue streams over the next 2 to 3 years.

Recognising the financial and operational challenges faced by the company over the recent years, and following the change of ownership, the management of the company has embarked on a wide-ranging turnaround plan to address these challenges and to strengthen the company's financial position.

MBDA as the shareholder confirms that all subsidiaries conduct their affairs in such a manner that they are at all times in a position to meet their committments, and have confirmed there is no intention of withdrawing such financial resources in the next 12 months.

With a strong order book, progressively improving sales performance in 2025 and with the financial backing from MBDA as the new owners, the directors believe that it is appropriate to prepare the financial statements on a going concern basis.

3.

Turnover

The turnover and loss before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

Period

1.11.23

to

Year Ended

31.12.24

31.10.23

£

£

Sale of goods

8,159,171

5,777,433

8,159,171

5,777,433

4.	Employees and directors

Period

1.11.23

to

Year Ended

31.12.24

31.10.23

£

£

Wages and salaries

4,571,360

3,597,760

Social security costs

25,624

30,723

Other pension costs

105,743

129,387

4,702,727

3,757,870

The average number of employees during the period was as follows:

Period

1.11.23

to

Year Ended

31.12.24

31.10.23

Cost of Sales

75

76

Administration and Management

5

5

80

81

Period

1.11.23

to

Year Ended

31.12.24

31.10.23

£

£

Directors' remuneration

289,782

242,131

Directors' pension contributions to money purchase schemes

3,448

27,708

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

1

Information regarding the highest paid director is as follows:

Period

1.11.23

to

Year Ended

31.12.24

31.10.23

£

£

Emoluments etc

206,866

132,172

5.	Operating loss

The operating loss is stated after charging/(crediting):

Period

1.11.23

to

Year Ended

31.12.24

31.10.23

£

£

Depreciation - owned assets

203,245

206,186

Depreciation - assets on hire purchase contracts

283,299

269,808

(Profit)/loss on disposal of fixed assets

(18,754

)

979,249

6.	Auditors' remuneration

Period

1.11.23

to

Year Ended

31.12.24

31.10.23

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

15,000

16,000