VWG Mechanical Limited

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—6

1. General Information

The company is a private company limited by shares incorporated and domiciled in the United Kingdom. It trades from its registered office address at Oak House, Ash Terrace, Bingley, West Yorkshire, BD16 1HB.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared in compliance with the provisions of FRS 102, Section 1A Small Entities - The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006.

The financial statements are prepared under the historical cost basis.

The financial statements are prepared in sterling, which is the functional currency of the entity.

2.2. Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

• the amount of revenue can be measured reliably;

• it is probable that the Company will receive the consideration due under the contract;

• the stage of completion of the contract at the end of the reporting period can be measured reliably; and

• the costs incurred and the costs to complete the contract can be measured reliably

2.3. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Leasehold	10% straight line
Plant & Machinery	16.67% straight line

2.4. Leasing and Hire Purchase Contracts

Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the income statement so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to income statement as incurred.

2.5. Stocks and Work in Progress

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 stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

2.6. Financial Instruments

A financial asset or a financial liability is recognised only when the company 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.

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VWG Mechanical Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 May 2025

2.7. Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period.

Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, 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.

2.8. Pensions

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided

2.9. Impairment

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. 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 are largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cashgenerating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

2.10. 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 in finance costs in profit or loss in the period is arises.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 26 (2024: 20)

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VWG Mechanical Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 May 2025

4. Tangible Assets

	Land & Property
	Leasehold	Plant & Machinery	Total
	£	£	£
Cost
As at 1 June 2024	152,947	491,278	644,225
Additions	2,088	153,306	155,394
Disposals	-	(57,155 )	(57,155 )

As at 31 May 2025	155,035	587,429	742,464

Depreciation
As at 1 June 2024	26,493	135,569	162,062
Provided during the period	15,395	88,397	103,792
Disposals	-	(34,810 )	(34,810 )

As at 31 May 2025	41,888	189,156	231,044

Net Book Value
As at 31 May 2025	113,147	398,273	511,420

As at 1 June 2024	126,454	355,709	482,163

5. Debtors

	2025	2024
	£	£
Due within one year
Trade debtors	1,213,145	1,125,499
Amounts recoverable on contracts	253,000	300,000
Amounts owed by participating interests	261,089	264,907
Other debtors	11,750	18,971

	1,738,984	1,709,377

6. Creditors: Amounts Falling Due Within One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	74,807	88,190
Trade creditors	1,022,978	1,057,669
Bank loans and overdrafts	58,889	135,556
Amounts owed to participating interests	83,143	70,225
Other creditors	261,307	60,627
Taxation and social security	434,940	392,467

	1,936,064	1,804,734

Included in creditors: amounts falling due within one year, are net obligations under hire purchase contracts of £74,807 (2024 - £88,190) which are secured against the assets to which they relate.

Included in creditors: amounts falling due within one year, are bank loans of £58,889 (2024 - £135,556) which Mr C D Dooling has provided personal guarantees for.

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VWG Mechanical Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 May 2025

7. Creditors: Amounts Falling Due After More Than One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	158,482	136,929
Bank loans	12,500	71,389
Other loans	100,000	155,000

	270,982	363,318

Included in creditors: amounts falling due after more than one year, are net obligations under hire purchase contracts of £158,482 (2024 - £136,929) which are secured against the assets to which they relate.

Included in creditors: amounts falling due after more than one year, are bank loans of £12,500 (2024 - £71,389) which Mr C D Dooling has provided personal guarantees for.

8. Other Commitments

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

	2025	2024
	£	£
Not later than one year	29,668	4,413
Later than one year and not later than five years	46,365	-

	76,033	4,413

9. Pension Commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held seperately 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 £62,849 (2024 - £54,761).

Contributions totalling £6,192 (2024 - £4,899) were payable to the fund at the year end, and are included in creditors: amounts falling due within one year.

10. Related Party Transactions

Included in creditors: amounts falling due within one year, is a directors loan account balance of £6 (2024 - £73) owing to Mr C D Dooling.

The loan is interest free and repayable on demand.

Included in debtors: amounts falling due within one year, is an amount of £261,089 (2024 - £264,907) due from VWG Asset Management Limited, a company with common directors.

The loan is interest free and repayable on demand.

Included in creditors: amounts falling due within one year, is an amount of £83,143 (2024 - £70,225) due to Dooling Property Partnership, in which C D J Dooling is a partner.

The loan is interest free and repayable on demand.

11. Ultimate Controlling Party

The company is under the control of Mr C D Dooling, who is interested in 82% of the company's issued share capital.

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		2025		2024
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	4		511,420		482,163

			511,420		482,163
CURRENT ASSETS
Stocks		35,000		35,000
Debtors	5	1,738,984		1,709,377
Cash at bank and in hand		932,246		753,980

		2,706,230		2,498,357
Creditors: Amounts Falling Due Within One Year	6	(1,936,064 )		(1,804,734 )

NET CURRENT ASSETS (LIABILITIES)			770,166		693,623

TOTAL ASSETS LESS CURRENT LIABILITIES			1,281,586		1,175,786

Creditors: Amounts Falling Due After More Than One Year	7		(270,982 )		(363,318 )

PROVISIONS FOR LIABILITIES
Deferred Taxation			(110,000 )		(103,000 )

NET ASSETS			900,604		709,468

CAPITAL AND RESERVES
Called up share capital			100		100
Profit and Loss Account			900,504		709,368

SHAREHOLDERS' FUNDS			900,604		709,468