Company No: 02807198 (England and Wales)

Contents

• Company Information
• Accountants' Report
• Balance Sheet
• Notes to the Financial Statements

Directors	D A G Callaghan
	D M MacBain

Registered office	11 Stirling Park
	Laker Road
	Rochester
	Kent
	ME1 3QR
	United Kingdom

Company number

02807198 (England and Wales)

Accountant	Kreston Reeves LLP
	2nd Floor, Maritime Place
	Quayside
	Chatham Maritime
	Chatham
	Kent
	ME4 4QZ

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Hydraflex Metal Hose & Bellows Limited for the financial year ended 31 December 2024 which comprise the Balance Sheet and the related notes 1 to 14 from the Company’s accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at www.icaew.com/regulation.

It is your duty to ensure that Hydraflex Metal Hose & Bellows Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Hydraflex Metal Hose & Bellows Limited. You consider that Hydraflex Metal Hose & Bellows Limited is exempt from the statutory audit requirement for the financial year.

We have not been instructed to carry out an audit or a review of the financial statements of Hydraflex Metal Hose & Bellows Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

This report is made solely to the Board of Directors of Hydraflex Metal Hose & Bellows Ltd, as a body, in accordance with the terms of our engagement letter dated 09 April 2025. Our work has been undertaken solely to prepare for your approval the financial statements of Hydraflex Metal Hose & Bellows Ltd and state those matters that we have agreed to state to the Board of Directors of Hydraflex Metal Hose & Bellows Ltd, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Hydraflex Metal Hose & Bellows Ltd and its Board of Directors as a body for our work or for this report.

Kreston Reeves LLP
Chartered Accountants

2nd Floor, Maritime Place
Quayside
Chatham Maritime
Chatham
Kent
ME4 4QZ

25 September 2025

	Note	2024		2023
		£		£
Fixed assets
Intangible assets	3	1,608		2,608
Tangible assets	4	233,315		205,544
Investments	5	2,701,736		0
		2,936,659		208,152
Current assets
Stocks		1,330,286		1,507,850
Debtors	6	1,396,581		1,045,316
Cash at bank and in hand	7	1,150,874		1,029,538
		3,877,741		3,582,704
Creditors: amounts falling due within one year	8	( 1,944,332)		( 789,333)
Net current assets		1,933,409		2,793,371
Total assets less current liabilities		4,870,068		3,001,523
Creditors: amounts falling due after more than one year	9	( 145,000)		0
Provision for liabilities	10, 11	( 57,883)		( 50,912)
Net assets		4,667,185		2,950,611
Capital and reserves
Called-up share capital	12	100		100
Profit and loss account		4,667,085		2,950,511
Total shareholders' funds		4,667,185		2,950,611

For the financial year ending 31 December 2024 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The members have not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Statement of Income and Retained Earnings has not been delivered.

The financial statements of Hydraflex Metal Hose & Bellows Limited (registered number: 02807198) were approved and authorised for issue by the Board of Directors on 25 September 2025. They were signed on its behalf by:

D M MacBain Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Hydraflex Metal Hose & Bellows Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is 11 Stirling Park, Laker Road, Rochester, Kent, ME1 3QR, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Group accounts exemption

Group accounts exemption s399
The Company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the Company as an individual entity and not about its group.

Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Balance Sheet date are reported at the rates of exchange prevailing at that date.

Exchange differences are recognised in the Statement of Income and Retained Earnings in the period in which they arise except for exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.

Interest income

Interest income is recognised when it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.

Employee benefits

Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Statement of Income and Retained Earnings in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Balance Sheet.

Finance costs

Finance costs are charged to the Statement of Income and Retained Earnings over the term of the debt using the effective interest method so the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Intangible assets

Intangible assets are stated at cost or valuation, net of amortisation and any provision for impairment. Amortisation is provided on all intangible assets at rates to write off the cost or valuation of each asset over its expected useful life as follows:

Goodwill

10 years straight line

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of income and retained earnings over its useful economic life.

Research and development

Research expenditure is written off as incurred. Development expenditure is also written off, except where the directors are satisfied as to the technical, commercial and financial viability of individual projects. In such cases, the identifiable expenditure is capitalised as an intangible asset and amortised over the period during which the Company is expected to benefit. This period is between three and five years. Provision is made for any impairment.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Leasehold improvements	10 years straight line
Plant and machinery	15 % reducing balance
Vehicles	25 % reducing balance
Fixtures and fittings	15 % reducing balance
Office equipment	15 % reducing balance

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Fixed asset investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value through profit or loss if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents

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

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial assets are derecognised when and only when the contractual rights to the cash flows from the financial asset expire or are settled, or the Company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or the Company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

2. Employees

	2024		2023
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	29		28

3. Intangible assets

	Goodwill		Total
	£		£
Cost
At 01 January 2024	53,000		53,000
At 31 December 2024	53,000		53,000
Accumulated amortisation
At 01 January 2024	50,392		50,392
Charge for the financial year	1,000		1,000
At 31 December 2024	51,392		51,392
Net book value
At 31 December 2024	1,608		1,608
At 31 December 2023	2,608		2,608

4. Tangible assets

	Leasehold improve- ments		Plant and machinery		Vehicles		Fixtures and fittings		Office equipment		Total
	£		£		£		£		£		£
Cost
At 01 January 2024	37,781		189,764		97,716		104,816		4,839		434,916
Additions	0		0		62,519		0		0		62,519
At 31 December 2024	37,781		189,764		160,235		104,816		4,839		497,435
Accumulated depreciation
At 01 January 2024	19,884		89,334		56,725		59,542		3,887		229,372
Charge for the financial year	2,478		15,065		10,268		6,791		146		34,748
At 31 December 2024	22,362		104,399		66,993		66,333		4,033		264,120
Net book value
At 31 December 2024	15,419		85,365		93,242		38,483		806		233,315
At 31 December 2023	17,897		100,430		40,991		45,274		952		205,544

5. Fixed asset investments

Investments in subsidiaries

	2024
	£
Cost
At 01 January 2024	0
Additions	2,701,736
At 31 December 2024	2,701,736
Carrying value at 31 December 2024	2,701,736
Carrying value at 31 December 2023	0

6. Debtors

	2024		2023
	£		£
Trade debtors	1,018,937		870,811
Amounts owed by Group undertakings	307,873		0
Prepayments	18,820		20,388
Other debtors	50,951		154,117
	1,396,581		1,045,316

7. Cash and cash equivalents

	2024		2023
	£		£
Cash at bank and in hand	1,150,874		1,029,538

8. Creditors: amounts falling due within one year

	2024		2023
	£		£
Trade creditors	348,174		287,761
Amounts owed to Group undertakings	0		375
Amounts owed to directors	295,789		126,190
Accruals	144,694		54,092
Corporation tax	156,720		41,607
Other taxation and social security	122,486		129,392
Other creditors	876,469		149,916
	1,944,332		789,333

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

	2024		2023
	£		£
Other creditors	145,000		0

There are no amounts included above in respect of which any security has been given by the small entity.

10. Provision for liabilities

	2024		2023
	£		£
Deferred tax	57,883		50,912

	Deferred taxation		Total
	£		£
At 01 January 2024	50,912		50,912
Charged to the Statement of Income and Retained Earnings	6,971		6,971
At 31 December 2024	57,883		57,883

Deferred tax

	2024		2023
	£		£
Accelerated capital allowances	57,883		50,912
Provision for deferred tax	57,883		50,912

11. Deferred tax

	2024		2023
	£		£
At the beginning of financial year	( 50,912)		( 50,775)
Charged to the Statement of Income and Retained Earnings	( 6,971)		( 137)
At the end of financial year	( 57,883)		( 50,912)

The deferred taxation balance is made up as follows:

	2024		2023
	£		£
Accelerated capital allowances	( 57,883)		( 50,912)

12. Called-up share capital

	2024		2023
	£		£
Allotted, called-up and fully-paid
100 Ordinary shares of £ 1.00 each	100		100

13. Financial commitments

Commitments

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

	2024		2023
	£		£
within one year	13,500		18,000
between one and five years	0		13,500
	13,500		31,500

Pensions

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £10,617 (2023: £10,526). The amount owed to the fund at the balance sheet date was £2,509 (2023: £3,169)

14. Related party transactions

At the year end, the company had outstanding trading balances with entities under common control, comprising a receivable of £43,868 from Hydraflex Plumbing & Cooling Hoses Limited and a payable of £500,000 to Hydraflex Management Services Limited.

During the year the company paid dividends to those who are both directors and shareholders of the company totalling £169,600 (2023: £262,400).