REGISTERED NUMBER: SC039355 (Scotland)

Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31 December 2024

for

Castle Precision Engineering

(Glasgow) Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

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:

Y L Tiefenbrun

Miss R E Tiefenbrun

SECRETARY:

J Forrest

REGISTERED OFFICE:

241 Drakemire Drive

Castlemilk

Glasgow

G45 9SZ

REGISTERED NUMBER:

SC039355 (Scotland)

AUDITORS:

O'Haras Accountants Limited (Statutory Auditor)

Radleigh House

1 Golf Road

Clarkston

Glasgow

G76 7HU

The directors present their strategic report for the year ended 31 December 2024.

REVIEW OF BUSINESS

In the twelve months to 31 December 2024, the company experienced continued improved trading conditions driven by returning demand for its core aerospace activities.

With revenues of approx. £32.5m in FY2024, the company delivered significant top line growth on the previous full year report and the first nett profit position of the post Covid period.

The modest level of the nett profit still reflects the overall challenging return journey for the supply chain in this period and the impacts of inflationary pressures particularly with respect to energy, wages, sub-tier and consumable costs.

The company's core operating area in civil widebody saw engine flying hours recover to pre-pandemic levels for the first time since 2019, resulting in rising demands for manufactured components; servicing this area continues to be impacted by availability of critical forgings but notably less than the peak disruption in 2023.

Other business segments the company delivers to, including defence & medical also saw continued growth in this period.

Notable events in this period include: the successful introduction of multiple robotic systems across the business resulting in higher levels of productivity, receiving the companies second annual Rolls-Royce Global Supplier of the Year Award, a further apprentice intake taking the overall apprentice ratio to 11% of the workforce and the signing of a major contract renewal at the Farnborough International Airshow 2024 with our largest customer.

Notable concerns in this period, not yet mentioned include: the general skills shortage across engineering in the UK and the highly negative impacts to the UK business environment in relation to government changes to employer NI and Business Property Relief.

ON BEHALF OF THE BOARD:

Y L Tiefenbrun - Director

1 October 2025

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

DIVIDENDS

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

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

Mrs R Tiefenbrun

Y L Tiefenbrun

Miss R E Tiefenbrun

Other changes in directors holding office are as follows:

Mrs R Tiefenbrun ceased to be a director after 31 December 2024 but prior to the date of this report.

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, O'Haras Accountants Limited (Statutory Auditor), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Y L Tiefenbrun - Director

1 October 2025

Opinion

We have audited the financial statements of Castle Precision Engineering (Glasgow) Limited (the 'company') for the year 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 profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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.

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 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:

We made enquiries of management as to whether there were any known or suspected instances of non compliance with laws and regulations.

We gained an understanding of management's internal controls designed to prevent and detect irregularities in their day-to-day operations.

We considered how fraud might occur in this company and designed our tests accordingly.

As in all audits, we also addressed the risk of management override of internal controls, including reviewing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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.

John O'Hara CA (Senior Statutory Auditor)

for and on behalf of O'Haras Accountants Limited (Statutory Auditor)

Radleigh House

1 Golf Road

Clarkston

Glasgow

G76 7HU

1 October 2025

REVENUE

32,560,010

23,973,154

Cost of sales

24,844,765

18,228,523

GROSS PROFIT

7,715,245

5,744,631

Administrative expenses

7,142,562

6,496,770

572,683

(752,139

)

Other operating income

83,246

75,392

OPERATING PROFIT/(LOSS)

3

655,929

(676,747

)

Interest payable and similar expenses

4

121,551

43,169

PROFIT/(LOSS) BEFORE TAXATION

534,378

(719,916

)

Tax on profit/(loss)

5

-

-

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

534,378

(719,916

)

PROFIT/(LOSS) FOR THE YEAR

534,378

(719,916

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

534,378

(719,916

)

FIXED ASSETS

Property, plant and equipment

6

7,813,255

6,529,987

CURRENT ASSETS

Inventories

7

6,728,895

6,391,805

Debtors

8

2,249,513

1,857,403

Cash at bank and in hand

2,440,316

1,034,289

11,418,724

9,283,497

CREDITORS

Amounts falling due within one year

9

7,598,508

5,624,861

NET CURRENT ASSETS

3,820,216

3,658,636

TOTAL ASSETS LESS CURRENT LIABILITIES

11,633,471

10,188,623

CREDITORS

Amounts falling due after more than one year

10

1,532,700

622,230

NET ASSETS

10,100,771

9,566,393

CAPITAL AND RESERVES

Called up share capital

13

3,000

3,000

Retained earnings

14

10,097,771

9,563,393

SHAREHOLDERS' FUNDS

10,100,771

9,566,393

The financial statements were approved by the Board of Directors and authorised for issue on 1 October 2025 and were signed on its behalf by:

Y L Tiefenbrun - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

3,000

10,283,309

10,286,309

Changes in equity

Total comprehensive income

-

(719,916

)

(719,916

)

Balance at 31 December 2023

3,000

9,563,393

9,566,393

Changes in equity

Total comprehensive income

-

534,378

534,378

Balance at 31 December 2024

3,000

10,097,771

10,100,771

Cash flows from operating activities

Cash generated from operations

1

2,546,975

(2,786,504

)

Interest paid

(67,710

)

(10,668

)

Interest element of hire purchase payments paid

(53,841

)

(32,501

)

Net cash from operating activities

2,425,424

(2,829,673

)

Cash flows from investing activities

Purchase of tangible fixed assets

(2,150,254

)

(1,217,907

)

Sale of tangible fixed assets

45,444

-

Net cash from investing activities

(2,104,810

)

(1,217,907

)

Cash flows from financing activities

Capital movement in the year

885,413

(390,370

)

Amount introduced by directors

200,000

650,000

Net cash from financing activities

1,085,413

259,630

Increase/(decrease) in cash and cash equivalents

1,406,027

(3,787,950

)

Cash and cash equivalents at beginning of year

2

1,034,289

4,822,239

Cash and cash equivalents at end of year

2

2,440,316

1,034,289

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Profit/(loss) before taxation

534,378

(719,916

)

Depreciation charges

866,986

777,258

Profit on disposal of fixed assets

(45,444

)

-

Finance costs

121,551

43,169

1,477,471

100,511

Increase in inventories

(337,090

)

(1,720,629

)

Increase in trade and other debtors

(392,110

)

(861,874

)

Increase/(decrease) in trade and other creditors

1,798,704

(304,512

)

Cash generated from operations

2,546,975

(2,786,504

)

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:

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

2,440,316

1,034,289

Year ended 31 December 2023

31/12/23

1/1/23

£

£

Cash and cash equivalents

1,034,289

4,822,239

3.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1/1/24

Cash flow

At 31/12/24

£

£

£

Net cash

Cash at bank and in hand

1,034,289

1,406,027

2,440,316

1,034,289

1,406,027

2,440,316

Debt

Finance leases

(399,207

)

(885,413

)

(1,284,620

)

(399,207

)

(885,413

)

(1,284,620

)

Total

635,082

520,614

1,155,696

1.	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.

Going concern

The directors are satisfied that the Company will have access to sufficient funds to ensure that all liabilities will be met as they fall due over a period of at least 12 months from the approval date of these financial statements. Consequently, the directors consider it appropriate to prepare the financial statements on a going concern basis.

Revenue

Revenue is shown exclusive of VAT and is generated from the provision of engineering services. Revenue is recognised when goods are dispatched or made available for collection.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Freehold property

-

2% on cost

Improvements to property

-

2% on cost

Plant and machinery

-

10% on cost

Office and computer equipment

-

30% on reducing balance

Grants

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

Work in progress

Work in Progress is stated at the lower of cost and net realisable value. For partially shipped and invoiced orders costs are apportioned based on expected/ known gross profit percentages.

Taxation

Taxation for the year 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 year 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

Rentals paid under operating leases are charged to profit or loss 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.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Impairment of fixed assets

At each balance sheet date, the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Cash and cash equivalents

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

2.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

4,884,429

4,459,047

Social security costs

509,397

458,723

Other pension costs

501,365

244,918

5,895,191

5,162,688

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

2024

2023

Management & administration

62

57

Manufacturing

56

50

118

107

2024

2023

£

£

Directors' remuneration

195,061

423,806

Directors' pension contributions to money purchase schemes

238,769

20,623

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

Money purchase schemes

2

2

3.	OPERATING PROFIT/(LOSS)

The operating profit (2023 - operating loss) is stated after charging/(crediting):

2024

2023

£

£

Hire of plant and machinery

22,736

26,837

Depreciation - owned assets

866,986

777,258

Profit on disposal of fixed assets

(45,444

)

-

Auditors' remuneration

11,500

11,500

Auditors' remuneration for non audit work

20,585

21,500

Foreign exchange differences

(51,951

)

(35,415

)

4.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Loan interest

67,710

10,668

Hire purchase

30,907

15,061

Leasing

22,934

17,440

121,551

43,169

5.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose for the year ended 31 December 2024 nor for the year ended 31 December 2023.

6.	PROPERTY, PLANT AND EQUIPMENT

Office

Improvements

and

Freehold

to

Plant and

computer

property

property

machinery

equipment

Totals

£

£

£

£

£

COST

At 1 January 2024

2,694,464

1,230,339

23,461,260

3,221,422

30,607,485

Additions

-

-

2,114,100

36,154

2,150,254

Disposals

-

-

(367,000

)

-

(367,000

)

At 31 December 2024

2,694,464

1,230,339

25,208,360

3,257,576

32,390,739

DEPRECIATION

At 1 January 2024

1,122,980

103,418

19,743,345

3,107,755

24,077,498

Charge for year

52,716

24,624

749,254

40,392

866,986

Eliminated on disposal

-

-

(367,000

)

-

(367,000

)

At 31 December 2024

1,175,696

128,042

20,125,599

3,148,147

24,577,484

NET BOOK VALUE

At 31 December 2024

1,518,768

1,102,297

5,082,761

109,429

7,813,255

At 31 December 2023

1,571,484

1,126,921

3,717,915

113,667

6,529,987

Included in plant and machinery are assets costing £3,591,901 and depreciation of £2,158,762 which are subject to hire purchase agreements.

7.	INVENTORIES

2024

2023

£

£

Work-in-progress

6,728,895

6,391,805

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

1,928,173

1,355,387

Other debtors

119,839

106,772

Prepayments and accrued income

201,501

395,244

2,249,513

1,857,403

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Hire purchase contracts (see note 11)

430,048

274,255

Trade creditors

5,652,858

2,536,412

Social security and other taxes

127,241

133,677

VAT

191,566

366,477

Other creditors

141,706

1,505,418

Directors' current accounts

850,000

650,000

Accrued expenses

134,343

107,377

Deferred government grants

70,746

51,245

7,598,508

5,624,861

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024

2023

£

£

Hire purchase contracts (see note 11)

854,572

124,952

Deferred government grants

678,128

497,278

1,532,700

622,230