Company registration number 04979804 (England and Wales)
ARLINGTON FLEET SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
ARLINGTON FLEET SERVICES LIMITED
COMPANY INFORMATION
Directors
Mr Barry Stephens
Mrs Jeanne Stephens
Mr John Campbell
Secretary
Mrs Jeanne Stephens
Company number
04979804
Registered office
Railway Works
Campbell Road
Hampshire
Eastleigh
SO50 5AD
Auditor
Sumer Audit
53 Kent Road
Southsea
Hampshire
United Kingdom
PO5 3HU
Business address
Railway Works
Campbell Road
Hampshire
Eastleigh
SO50 5AD
Bankers
Handelsbanken Bank
Oceana House
39-49 Commercial Road
Southampton
SO15 1GA
ARLINGTON FLEET SERVICES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 24
ARLINGTON FLEET SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 1 -

The directors present the strategic report for the year ended 31 March 2025.

Review of the business

The financial results for the year are presented on page 9, with the company’s financial position at 31 March 2025 detailed on page 10.

Turnover for the year has increased to £18,246,999 (2023/24 – £13,060,992), while profit before tax was also higher £2,803,352 (2023/24 – £832,180).

The 2023/24 financial year was a transitional period for the company. During this time, early signs of improved financial health and operational profitability began to emerge. The prior year was characterised by the induction of new programmes of work, including the disruptive implementation of new facilities and the inevitable inefficiencies associated with initial stages. These investments and efforts laid a solid foundation for the success experienced in 2024/25.

In the 2024/25 financial year, core programmes reached full operational capacity. Activities such as passenger-grade paint refinishing, luxury train refurbishment and high-volume wheel turning, contributed to a strong performance.

The positive cash flows generated during this period have significantly strengthened the company’s balance sheet. A continued reduction in liabilities and an increase in cash reserves have enhanced the business’s agility, which will enable it to pursue growth opportunities more effectively going forward.

Principal risks and uncertainties

Macroeconomic and recessionary pressures may pose a risk to service demand. To mitigate this, the company is expanding its service portfolio and prioritising long-term partnerships that enhance resilience against economic volatility.

The introduction of new trains could present a medium-term operational challenge, as older trains, requiring frequent maintenance, are retired. Though there will be a temporary uplift in commissioning and decommissioning activity, a gap may emerge before the new fleets generate steady maintenance demand.

Competitive dynamics remain stable, or are tightening, due to high barriers to entry. Nonetheless, there is always the possibility that strong demand could attract new market entrants. The company maintains vigilant oversight of its competitive positioning, strategic advantages, and emerging threats.

Development and performance

Throughout the year, the workforce has expanded in both size and capability to support increasing operational demands. Strategic partnerships have been developed to optimise the use of space and facilities within the Rail Works, which continues to deliver operational and financial benefits.

The evolution of the business in recent years has significantly enhanced its reputation within the industry. This strengthened profile is supporting the growth of key service lines, such as paint and refinish, while also attracting new customers across other core offerings, including wagon maintenance and wheel turning.

Future developments

The outlook for Arlington is very positive. The Rail Works is a unique and valuable asset with highly sought after facilities. The company continues to invest in enhancing its utility and capacity.

This year’s successes have identified key areas of strength, which management intends to build upon to support sustainable growth in the years ahead.

ARLINGTON FLEET SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 2 -

On behalf of the board

Mr Barry Stephens
Director
2 October 2025
ARLINGTON FLEET SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2025.

Principal activities

The principal activity of the company continued to be that of the repair and maintenance of railway rolling stock.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr Barry Stephens
Mrs Jeanne Stephens
Mr John Campbell
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Research and development

Research and development activities involved the repurposing of railway rolling stock and associated activities. No R&D claim has been made for the 24/25 year.

Auditor

The auditor, Sumer Audit, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

ARLINGTON FLEET SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 4 -
Financial risk management objectives and policies

The company operates management policies designed to minimise its exposure to financial risk:

Credit risk

The company operates a number of policies and procedures designed to mitigate credit risk. In particular, before entering into a transaction with a customer a detailed credit review is undertaken to determine whether or not, in the opinion of the directors, the customer has the ability to meet its debts as they fall due.

Liquidity and cash flow risk

The company operates a range of policies to ensure there is sufficient liquidity and cash to meet its liabilities. Regular cash flow forecasts are prepared to ensure the company is able to pay its debts as they fall due.

Price risk

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required to be contained in the directors' report. It has done so in respect of the company's exposure to price risk and disclosure of its principal activity.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr Barry Stephens
Director
2 October 2025
ARLINGTON FLEET SERVICES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2025
- 5 -

The directors are responsible for preparing the annual 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 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;

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

- 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.

ARLINGTON FLEET SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ARLINGTON FLEET SERVICES LIMITED
- 6 -
Opinion

We have audited the financial statements of Arlington Fleet Services Limited (the 'company') for the year ended 31 March 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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 March 2025 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 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.

Going concer n

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 contained within the annual report. 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. 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 course of 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 our audit:

- the information given in the strategic report and the directors' r eport 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.

ARLINGTON FLEET SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARLINGTON FLEET SERVICES LIMITED
- 7 -
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 identifie d material misstatements in the strategic report or the directors' r eport.

We have nothing to report in respect of the following matters in relation to which 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 directors' r esponsibilities s tatement, 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

ARLINGTON FLEET SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ARLINGTON FLEET SERVICES LIMITED
- 8 -

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

- Obtaining an understanding of the legal and regulatory framework that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements and operations;

- Obtaining an understanding of the company’s policies and procedures on fraud risks, including knowledge of any actual, suspected or alleged fraud; and

- Discussing among the engagement team how and where fraud might occur in the financial statements and any potential indicators of fraud through our knowledge and understanding of the company and our sector-specific experience.

As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud. We are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, we identified the following areas as those most likely to have an impact on the financial statements: employment law, and compliance with the UK Companies Act.

In addition to the above, our procedures to respond to risks identified included the following:

- Making enquiries of management, about any known or suspected instances of non-compliance with laws and regulations and fraud;

- Reading correspondence with regulators;

- Challenging assumptions and judgements made by management in their significant accounting estimates; and

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.

Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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.

Peter Reading FCCA (Senior Statutory Auditor)
For and on behalf of Sumer Audit
2 October 2025
Chartered Accountants
Statutory Auditor
Southsea
Sumer Audit is the trading name of Sumer Auditco Limited
ARLINGTON FLEET SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
- 9 -
2025
2024
Notes
£
£
Turnover
3
18,246,999
13,030,992
Cost of sales
(10,403,872)
(7,526,226)
Gross profit
7,843,127
5,504,766
Administrative expenses
(4,960,586)
(4,634,286)
Other operating income
-
0
19,592
Operating profit
4
2,882,541
890,072
Interest receivable and similar income
8
9,699
3,477
Interest payable and similar expenses
9
(88,888)
(61,369)
Profit before taxation
2,803,352
832,180
Tax on profit
10
(838,095)
(228,740)
Profit for the financial period
1,965,257
603,440

The profit and loss account has been prepared on the basis that all operations are continuing operations.

ARLINGTON FLEET SERVICES LIMITED
BALANCE SHEET
AS AT 31 MARCH 2025
31 March 2025
- 10 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
11
2,250,891
2,469,991
Current assets
Stocks
12
991,847
1,061,254
Debtors
13
4,837,213
3,858,043
Cash at bank and in hand
2,163,929
991,687
7,992,989
5,910,984
Creditors: amounts falling due within one year
14
(5,925,290)
(6,192,375)
Net current assets/(liabilities)
2,067,699
(281,391)
Total assets less current liabilities
4,318,590
2,188,600
Creditors: amounts falling due after more than one year
15
(145,511)
(285,232)
Provisions for liabilities
Provisions
17
291,218
79,000
Deferred tax liability
18
311,622
219,386
(602,840)
(298,386)
Net assets
3,570,239
1,604,982
Capital and reserves
Called up share capital
21
100
100
Profit and loss reserves
3,570,139
1,604,882
Total equity
3,570,239
1,604,982

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 2 October 2025 and are signed on its behalf by:
Mr Barry Stephens
Director
Company registration number 04979804 (England and Wales)
ARLINGTON FLEET SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2023
100
1,001,442
1,001,542
Year ended 31 March 2024:
Profit and total comprehensive income
-
603,440
603,440
Balance at 31 March 2024
100
1,604,882
1,604,982
Year ended 31 March 2025:
Profit and total comprehensive income
-
1,965,257
1,965,257
Balance at 31 March 2025
100
3,570,139
3,570,239
ARLINGTON FLEET SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
- 12 -
1
Accounting policies
Company information

Arlington Fleet Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is Railway Works, Campbell Road, Hampshire, Eastleigh, SO50 5AD.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. T he company has therefore taken advantage of e xemptions from the following disclosure requirements:

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

The financial statements of the company are consolidated in the financial statements of Arlington Fleet Group Limited. These consolidated financial statements are available from its registered office, Railway Works, Campbell Road, Eastleigh, Hampshire, SO50 5AD.

1.2
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have considered relevant information, including the company’s principal risks and uncertainties, the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. Based on these assessments and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.true

1.3
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.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

ARLINGTON FLEET SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 13 -

Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recover ed.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Short leasehold land and buildings
10% straight line
Plant and equipment
15% reducing balance
Fixtures and fittings
15% reducing balance
Motor vehicles
25% reducing balance

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.

1.5
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.6
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 current liabilities.

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

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.

ARLINGTON FLEET SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, and loans from fellow group companies, 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 paymen ts 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. A m ounts 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

ARLINGTON FLEET SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 15 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

1.10
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i s measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

Provisions for the expected cost of warranty obligations under local sale of goods legislation are recognised at the date of sale, at the directors' best estimate of the expenditure required to settle the company's obligation.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease s asset are consumed.

ARLINGTON FLEET SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 16 -
1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Depreciation, residual values and useful economic lives

Depreciation, residual values and useful economic lives of all fixed assets are reviewed by the directors.

Amounts recoverable on contracts

Income is accrued in respect of amounts recoverable on contracts by reference to the stage of completion.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2025
2024
£
£
Turnover analysed by class of business
Repair and maintenance of railway rolling stock
13,430,767
8,233,957
Rent and storage
4,816,232
4,797,035
18,246,999
13,030,992
2025
2024
£
£
Other revenue
Interest income
9,699
3,477
ARLINGTON FLEET SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 17 -
4
Operating profit
2025
2024
Operating profit for the year is stated after charging:
£
£
Exchange losses
12,821
3,603
Depreciation of owned tangible fixed assets
270,865
251,733
Depreciation of tangible fixed assets held under finance leases
180,737
210,719
(Profit)/loss on disposal of tangible fixed assets
-
18,592
Operating lease charges
2,250,242
2,527,429

5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
15,000
15,000
For other services
All other non-audit services
3,000
3,000
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2025
2024
Number
Number
Office and administration
18
19
Workshop and direct labour
96
87
Total
114
106

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
3,574,842
3,111,195
Social security costs
356,265
304,715
Pension costs
88,227
257,579
4,019,334
3,673,489
ARLINGTON FLEET SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 18 -
7
Directors' remuneration
2025
2024
£
£
Company pension contributions to defined contribution schemes
-
180,000
8
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
9,699
3,477
9
Interest payable and similar expenses
2025
2024
£
£
Interest on bank overdrafts and loans
8,610
10,765
Interest on finance leases and hire purchase contracts
7,609
45,888
Other interest
72,669
4,716
88,888
61,369
10
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
745,859
6,603
Deferred tax
Origination and reversal of timing differences
92,236
222,137
Total tax charge
838,095
228,740
ARLINGTON FLEET SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
10
Taxation
(Continued)
- 19 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
Profit before taxation
2,803,352
832,180
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
700,838
208,045
Tax effect of expenses that are not deductible in determining taxable profit
16,717
319
Tax effect of utilisation of tax losses not previously recognised
-
0
(14,035)
Depreciation on assets not qualifying for tax allowances
-
0
36,496
Deferred tax adjustments in respect of prior years
120,540
(2,085)
Taxation charge for the year
838,095
228,740
11
Tangible fixed assets
Short leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2024
1,530,373
5,047,248
76,195
71,250
6,725,066
Additions
93,739
69,203
18,316
51,244
232,502
At 31 March 2025
1,624,112
5,116,451
94,511
122,494
6,957,568
Depreciation and impairment
At 1 April 2024
1,014,263
3,135,884
41,097
63,831
4,255,075
Depreciation charged in the year
150,569
289,470
5,323
6,240
451,602
At 31 March 2025
1,164,832
3,425,354
46,420
70,071
4,706,677
Carrying amount
At 31 March 2025
459,280
1,691,097
48,091
52,423
2,250,891
At 31 March 2024
516,110
1,911,364
35,098
7,419
2,469,991

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2025
2024
£
£
Plant and equipment
1,039,340
1,194,077
ARLINGTON FLEET SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 20 -
12
Stocks
2025
2024
£
£
Raw materials and consumables
991,847
1,061,254
13
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
3,471,662
2,588,385
Accrued income - amounts recoverable on contracts
1,004,500
952,071
Other debtors
7,989
44,862
Prepayments
353,062
272,725
4,837,213
3,858,043
14
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Obligations under finance leases
102,202
489,637
Other borrowings
16
44,100
41,829
Trade creditors
556,104
721,294
Amounts owed to group undertakings
1,461,420
2,546,770
Corporation tax
745,821
6,603
Other taxation and social security
415,149
398,034
Deferred income
19
976,686
1,053,262
Other creditors
36,157
76,856
Accruals
1,587,651
858,090
5,925,290
6,192,375
15
Creditors: amounts falling due after more than one year
2025
2024
Notes
£
£
Obligations under finance leases
49,995
145,616
Other borrowings
16
95,516
139,616
145,511
285,232

O bligations under finance lease and hire purchase contracts are secured by fixed charges on the assets concerned.

ARLINGTON FLEET SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 21 -
16
Loans and overdrafts
2025
2024
£
£
Other loans
139,616
181,445
Payable within one year
44,100
41,829
Payable after one year
95,516
139,616

The other loan is repayable within 5 years and interest is chargeable at 8%. This loan is secured by directors

personal guarantees. NatWest Bank hold fixed and floating charges over the property and undertakings of the

company to secure potential borrowings.

17
Provisions for liabilities
2025
2024
£
£
Warranties provision
291,218
79,000
Movements on provisions:
£
At 1 April 2024
79,000
Additional provisions in the year
212,218
At 31 March 2025
291,218
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances
311,622
219,386
2025
Movements in the year:
£
Liability at 1 April 2024
219,386
Charge to profit or loss
92,236
Liability at 31 March 2025
311,622
ARLINGTON FLEET SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 22 -
19
Deferred income
2025
2024
£
£
Other deferred income
976,686
1,053,262
20
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
88,227
257,579

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

At the period end there was a creditor of £17,898 (2024 - £15,504) relating to pension commitments.

21
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100

The company has one class of ordinary shares which carry no rights to fixed assets. The shares rank equally with regard to voting rights, distribution of dividends and repayment of capital.

22
Contingent liability - dilapidations

The company occupies a leased property under a tenancy agreement that includes a dilapidations clause. Under this clause, the company may be required to restore the property to its original condition at the end of the lease term on 31 December 2035.

The directors have concluded it is not possible to reliably estimate the potential liability associated with the dilapidations clause due to the uncertainty of the extent of the required work and the associated costs. Therefore, no provision has been made in these financial statements. However, this potential obligation is considered a contingent liability.

ARLINGTON FLEET SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 23 -
23
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2025
2024
£
£
Within one year
1,771,818
1,837,213
Between two and five years
7,087,272
7,091,751
In over five years
10,187,954
11,894,377
19,047,044
20,823,341

At the reporting end date the total future minimum sublease payments expected to be received under non-cancellable subleases was £nil (2024 - £4,479).

Lessor

The operating leases represent sub leases to third parties. The leases are negotiated over terms of one to five years.

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

2025
2024
£
£
Within one year
-
0
4,479
ARLINGTON FLEET SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 24 -
24
Related party transactions

Mr John Campbell is sole director and owns 100% of the shares of Technical Construction Limited (TCL). At 31 March 2025 this company was owed £nil (2024 - £402). There were engineering consultancy charges of £12,240 from this company (2024 - £14,640).

During the year Barry Stephens, director, invoiced the company £3,012 (2024 - £nil) for the sale of tools at market value.

The hire purchase liabilities are also guaranteed by the parent company, Arlington Rail Services Limited and Arlington Fleet Workshops Limited.

25
Ultimate controlling party

The immediate parent undertaking is Arlington Fleet Group Limited which prepares group financial statements. The registered office of Arlington Fleet Group Limited is Railway Works, Campbell Road, Eastleigh, Hampshire, SO50 5AD.

Bjszj Limited was incorporated on the 5th December 2024 and became the ultimate parent company. The registered office of Bjszj Limited is Railway Works, Campbell Road, Eastleigh, Hampshire, SO50 5AD.

The ultimate controlling party is Mr Barry Stephens and Mrs Jeanne Stephens.

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