MONTAZ ENGINEERING SOLUTIONS LTD


Director	BAILEY, Jason David


Company Secretary	BAILEY, Jason David


Registered Address	Shippon Barn
	Norton Fitzwarren
	Taunton
	TA4 1AA


Registered Number	06897749 (England and Wales)

Notes to the Financial Statements
for the year ended 31 May 2025

1.	Accounting policies

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

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

	Basis of preparation
	The accounts have been prepared under the historical cost convention and in accordance with FRS 102, the financial reporting standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).

	Going concern
	The financial statements have been prepared on a going concern basis. In forming this view, the directors have prepared cash flow forecasts for a period of at least twelve months from the date of approval of these financial statements and considered reasonably possible downside scenarios, including [e.g. cost inflation, demand variability, covenant headroom]. Based on these forecasts and the company’s available resources and facilities, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future (being a period of at least twelve months from approval). Accordingly, the financial statements do not include any adjustments that would be necessary if the company were unable to continue as a going concern.

Going concern

The financial statements have been prepared on a going concern basis. In forming this view, the directors have prepared cash flow forecasts for a period of at least twelve months from the date of approval of these financial statements and considered reasonably possible downside scenarios, including [e.g. cost inflation, demand variability, covenant headroom]. Based on these forecasts and the company’s available resources and facilities, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future (being a period of at least twelve months from approval). Accordingly, the financial statements do not include any adjustments that would be necessary if the company were unable to continue as a going concern.

	Turnover policy
	Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services.

	Revenue from sale of goods
	Revenue from the sale of goods is recognised when the company has transferred to the buyer the significant risks and rewards of ownership of the goods, usually when goods are delivered and legal title has passed. Providing the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transition can be measured reliably.

Revenue from sale of goods

Revenue from the sale of goods is recognised when the company has transferred to the buyer the significant risks and rewards of ownership of the goods, usually when goods are delivered and legal title has passed. Providing the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transition can be measured reliably.

	Revenue from rendering of services
	Revenue from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

	Employee benefits
	Short-term employee benefits are measured at the undiscounted amount expected to be paid in exchange for the employee's services to the company. Where employees have accrued short-term benefits which the entity has not paid by the balance sheet date, an accrual is recognised within creditors: amounts falling due within one year together with an associated expense in profit or loss. The liabilities are classified as current obligations in the statement of financial position because they are expected to be settled wholly within twelve months after the end of the period.

Employee benefits

Short-term employee benefits are measured at the undiscounted amount expected to be paid in exchange for the employee's services to the company. Where employees have accrued short-term benefits which the entity has not paid by the balance sheet date, an accrual is recognised within creditors: amounts falling due within one year together with an associated expense in profit or loss. The liabilities are classified as current obligations in the statement of financial position because they are expected to be settled wholly within twelve months after the end of the period.

	Current taxation
	Current tax is recognised in profit or loss, except for taxes related to revaluations of land and buildings which are recognised in other comprehensive income. Current tax represents the amount of tax payable (receivable) in respect of taxable profit (loss) for the current, or past, reporting periods. Current tax is measured at the amount expected to be paid (recovered) using the tax rates and laws which have been enacted, or substantively enacted, by the balance sheet date. Where payments to HM Revenue and Customs exceed liabilities owed, an asset is recognised to the extent of the amount of tax recoverable.

Current taxation

Current tax is recognised in profit or loss, except for taxes related to revaluations of land and buildings which are recognised in other comprehensive income.

Current tax represents the amount of tax payable (receivable) in respect of taxable profit (loss) for the current, or past, reporting periods. Current tax is measured at the amount expected to be paid (recovered) using the tax rates and laws which have been enacted, or substantively enacted, by the balance sheet date. Where payments to HM Revenue and Customs exceed liabilities owed, an asset is recognised to the extent of the amount of tax recoverable.

	Deferred tax
	Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

Deferred tax

Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

	Tangible fixed assets and depreciation
	All fixed assets are initially recorded at cost. Property, plant and equipment is used in the company's principal activity for the production and supply of goods or for administrative purposes and is stated in the balance sheet under the historic cost model. This model requires the assets to be stated at cost less amounts in respect of depreciation and less any accumulated impairment losses. Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value (which is the expected amount that would currently be obtained from disposal of an asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life), over the useful economic life of the respective asset as follows:

Tangible fixed assets and depreciation

All fixed assets are initially recorded at cost. Property, plant and equipment is used in the company's principal activity for the production and supply of goods or for administrative purposes and is stated in the balance sheet under the historic cost model. This model requires the assets to be stated at cost less amounts in respect of depreciation and less any accumulated impairment losses. Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value (which is the expected amount that would currently be obtained from disposal of an asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life), over the useful economic life of the respective asset as follows:


		Reducing balance (%)
	Plant and machinery	25
	Fixtures and fittings	25
	Vehicles	25
	Office Equipment	25

	Stocks and work in progress
	Stock is valued at the lower of cost and estimated selling price less costs to complete and sell. The cost methodology employed by the entity is the first-in first-out method. Estimated selling price less costs to complete and sell are derived from the selling price which the goods would fetch in an open market transaction with established customers less the costs expected to be incurred to enable the sale to complete. Provision is made for slow-moving and obsolete items of stock. Such provisions are recognised in profit or loss. Work in progress is valued using the percentage of completion method and values are calculated using the lower of cost and estimated selling price less costs to complete and sell. When stocks are sold, the carrying amount of those stocks is recognised as an expense within cost of sales. This takes place in the same period that the associated revenue is recognised.

Stocks and work in progress

Stock is valued at the lower of cost and estimated selling price less costs to complete and sell. The cost methodology employed by the entity is the first-in first-out method. Estimated selling price less costs to complete and sell are derived from the selling price which the goods would fetch in an open market transaction with established customers less the costs expected to be incurred to enable the sale to complete. Provision is made for slow-moving and obsolete items of stock. Such provisions are recognised in profit or loss.

Work in progress is valued using the percentage of completion method and values are calculated using the lower of cost and estimated selling price less costs to complete and sell. When stocks are sold, the carrying amount of those stocks is recognised as an expense within cost of sales. This takes place in the same period that the associated revenue is recognised.

	Related parties
	For the purposes of these financial statements, a related party could be a person or an entity. Careful consideration is given to the definition of a related party to ensure that all related party relationships, transactions and balances are identified.

2.	Average number of employees
	The average monthly number of persons (including directors) employed by the company during the year was 4 (prior year: 7).


		2025		2024
	Average number of employees during the year	4		7

3.	Deferred tax
	Increases in the UK Corporation tax rate from 19% to 25% (19% effective from 1 April 2017, and 25% effective from 1 April 2023) have been substantively enacted. This will impact the company's future tax charge accordingly. The value of the deferred tax assets at the balance sheet date has been calculated using the marginal effective rate of 23.4% when the asset is expected to be realised.

4.	Tangible fixed assets

		Total
		£
	Cost or valuation
	At 01 June 24	276,139
	Additions	92,208
	Disposals	(3,750)
	At 31 May 25	364,597
	Depreciation and impairment
	At 01 June 24	158,329
	Charge for year	52,548
	On disposals	(3,459)
	At 31 May 25	207,418
	Net book value
	At 31 May 25	157,179
	At 31 May 24	117,810


	Assets held under finance leases: The net book value of assets held under finance leases within Vehicle Class is £44,211; the depreciation charge for the year on these assets was £14,737.

5.	Events after reporting date
	On 2nd August 2025, the company vacated its premises at Unit 2 Fideoak Mill, Bishops Hull, Taunton, Somerset TA4 1AF and reduced its operations to a sole director/trades person. This event occurred after the reporting date and does not adjust the amounts recognised as at 31st May 2025. The directors estimate one-off exit costs of approximately £2000 (including lease termination/dilapidations £2000. The directors also expect reduced operating capacity in the next financial year. The final financial effect cannot be estimated reliably, the company will update this estimate in the next reporting period. In June 2025, the Company returned a tangible fixed asset purchased 28th May 2025 for £80,000 + VAT to Dan Duddridge Services Limited. The return was agreed after the reporting date. No adjustment has been made to the carrying amount at 31st May 2025. Had the event been recognised at the reporting date, property, plant and equipment would have decreased by £80,000 and cash/bank increased by £96,000 & other creditors in respect of VAT would have increased by £16,000, with no impact on net assets.

Events after reporting date

On 2nd August 2025, the company vacated its premises at Unit 2 Fideoak Mill, Bishops Hull, Taunton, Somerset TA4 1AF and reduced its operations to a sole director/trades person. This event occurred after the reporting date and does not adjust the amounts recognised as at 31st May 2025. The directors estimate one-off exit costs of approximately £2000 (including lease termination/dilapidations £2000. The directors also expect reduced operating capacity in the next financial year. The final financial effect cannot be estimated reliably, the company will update this estimate in the next reporting period.

In June 2025, the Company returned a tangible fixed asset purchased 28th May 2025 for £80,000 + VAT to Dan Duddridge Services Limited. The return was agreed after the reporting date. No adjustment has been made to the carrying amount at 31st May 2025. Had the event been recognised at the reporting date, property, plant and equipment would have decreased by £80,000 and cash/bank increased by £96,000 & other creditors in respect of VAT would have increased by £16,000, with no impact on net assets.

6.	Related party transactions
	Relationship. Montaz Rentals Limited is a related party of the Company by virtue of common control by Mr & Mrs Bailey, who are principle owners of both companies. Intercompany balance. No advances or repayments were made during the year (2024: £0 advances/£0 repayments). The balance arose from advances made in a prior financial period. At 31st May 2025, £100,000 was owed by Montaz Rentals Limited to the Company (2024: £100,000 comparative). The receivable is unsecured, interest free, and is repayable on demand. It is included in debtors due after more than one year. Credit risk. A credit loss is not expected. Other terms. No guarantees were given or received in respect of the balance. Ultimate controlling party. The Company is controlled by Mr & Mrs Bailey by virtue of shareholding & directorship.

Related party transactions

Relationship. Montaz Rentals Limited is a related party of the Company by virtue of common control by Mr & Mrs Bailey, who are principle owners of both companies.

Intercompany balance. No advances or repayments were made during the year (2024: £0 advances/£0 repayments). The balance arose from advances made in a prior financial period.

At 31st May 2025, £100,000 was owed by Montaz Rentals Limited to the Company (2024: £100,000 comparative). The receivable is unsecured, interest free, and is repayable on demand. It is included in debtors due after more than one year.

Credit risk. A credit loss is not expected.

Other terms. No guarantees were given or received in respect of the balance. 

Ultimate controlling party. The Company is controlled by Mr & Mrs Bailey by virtue of shareholding & directorship.

7.	Description of reasons for any change in chosen formats of the financial statments
	Change of financial reporting framework In the current financial year the company has adopted FRS 102 (Section 1A). Previously, the financial statements were prepared in accordance with FRS 105. This change has been made because the company no longer qualifies for the micro-entities regime. The date of transition to FRS 102 1A is 1st June 2024. In accordance with FRS 102 Section 35 (Transition to FRS 102), the policies set out in these financial statements have been applied retrospectively and the comparative figures have been restated where required. Reconciliation of equity At comparative year-end 31st May 2024 Equity under FRS 105 £278,522 Recognition of deferred tax on timing differences £28,462 Other adjustments £2,854 Equity under FRS 102 Section 1A £252,914

Description of reasons for any change in chosen formats of the financial statments

Change of financial reporting framework

In the current financial year the company has adopted FRS 102 (Section 1A). Previously, the financial statements were prepared in accordance with FRS 105. This change has been made because the company no longer qualifies for the micro-entities regime.

The date of transition to FRS 102 1A is 1st June 2024. In accordance with FRS 102 Section 35 (Transition to FRS 102), the policies set out in these financial statements have been applied retrospectively and the comparative figures have been restated where required.

Reconciliation of equity		
		
	                                                                                       	At comparative year-end 31st May 2024
Equity under FRS 105	                                                                    	£278,522
Recognition of deferred tax on timing differences          	                                  £28,462	
Other adjustments                                                                                       £2,854
Equity under FRS 102 Section 1A                                                           £252,914

	Notes	2025		2024
		£	£	£	£
Fixed assets
Tangible assets	4		157,179		117,810
			157,179		117,810
Current assets
Stocks		9,318		8,530
Debtors		153,697		215,188
Cash at bank and on hand		122,354		147,868
		285,369		371,586
Creditors amounts falling due within one year		(96,171)		(103,943)
Net current assets (liabilities)			189,198		267,643
Total assets less current liabilities			346,377		385,453
Creditors amounts falling due after one year			(87,119)		(104,078)
Provisions for liabilities			(21,832)		(28,462)
Net assets			237,426		252,913
Capital and reserves
Called up share capital			4		4
Profit and loss account			237,422		252,909
Shareholders' funds			237,426		252,913