REGISTERED NUMBER: 03778022 (England and Wales)

Financial Statements

for the Year Ended 28 February 2025

for

Harry Needle Railroad Company Ltd

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Mrs A E Cox

C S Goldie

SECRETARY:

Brodies Secretarial Services

REGISTERED OFFICE:

Reedham House

31 King Street West

Manchester

M3 2PJ

BUSINESS ADDRESS:

Rail Maintenance Depot

Babbage Way (off Sandy Lane)

Worksop

S80 1UJ

REGISTERED NUMBER:

03778022 (England and Wales)

AUDITORS:

Gillespie & Anderson

Statutory Auditors

Chartered Accountants

147 Bath Street

Glasgow

G2 4SN

FIXED ASSETS

Intangible assets

4

-

-

Tangible assets

5

10,329,549

10,517,828

10,329,549

10,517,828

CURRENT ASSETS

Stocks

135,822

330,627

Debtors

6

1,311,934

2,967,090

Cash at bank

534,200

2,875,833

1,981,956

6,173,550

CREDITORS

Amounts falling due within one year

7

1,587,402

2,881,955

NET CURRENT ASSETS

394,554

3,291,595

TOTAL ASSETS LESS CURRENT LIABILITIES

10,724,103

13,809,423

CREDITORS

Amounts falling due after more than one year

8

(210,067

)

(2,457,269

)

PROVISIONS FOR LIABILITIES

11

(1,691,170

)

(816,359

)

NET ASSETS

8,822,866

10,535,795

CAPITAL AND RESERVES

Called up share capital

12

100

100

Retained earnings

8,822,766

10,535,695

SHAREHOLDERS' FUNDS

8,822,866

10,535,795

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 22 October 2025 and were signed on its behalf by:

C S Goldie - Director

1.	STATUTORY INFORMATION

Harry Needle Railroad Company Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The financial statements are prepared in Pound Sterling (£), which is considered to be the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

These financial statements present information about the Company as an individual undertaking.

2.	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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

The financial statements are prepared on the going concern basis of accounting as, in the opinion of the directors, there are no matters of material uncertainty which cast doubt on the company's ability to continue.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Revenue is recognised in the income statement on a straight line basis over the period of the hire.

Revenue arising from services provided is recognised in the income statement when the service is performed.

Revenue arising from storage income is recognised in the income statement in the period in which it is receivable.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2007, is being amortised evenly over its estimated useful life of five years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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 or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property - 2% on cost

Improvement to property - 2% on cost

Locomotives on hire - 20% on reducing balance

Plant and machinery - 20% on reducing balance

Fixtures and fittings - 20% on reducing balance

Motor vehicles - 25% on reducing balance

Computer equipment - 25% on reducing balance

Tangible fixed assets are initially recorded at cost less accumulated depreciation and accumulated impairment losses.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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.

Grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the profit and loss account over the expected useful lives of the assets concerned. Other grants are credited to the profit and loss account as the related expenditure is incurred.

Operating leases

Rentals paid under operating leases are charged to the statement of comprehensive income on a straight line basis over the period of the lease.

Provisions for liabilities

A provision is initially recognised when there is an obligation at the balance sheet date as the result of a past event, it is probable that there will be the transfer of funds in settlement and the amount of the obligation can be estimated reliably. The provision is subsequently measured by placing a charge against the provision only for expenditure for which the provision was originally recognised.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 27 (2024 - 27 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 March 2024

and 28 February 2025

10,000

AMORTISATION

At 1 March 2024

and 28 February 2025

10,000

NET BOOK VALUE

At 28 February 2025

-

At 29 February 2024

-

5.	TANGIBLE FIXED ASSETS

Improvement

Freehold

to

Locomotives

Plant and

property

property

on hire

machinery

£

£

£

£

COST

At 1 March 2024

2,541,323

6,483,875

3,740,090

991,692

Additions

-

139,465

767,891

3,450

Disposals

-

-

(835,428

)

-

Reclassification/transfer

-

-

-

(20,880

)

At 28 February 2025

2,541,323

6,623,340

3,672,553

974,262

DEPRECIATION

At 1 March 2024

255,429

405,104

2,176,039

572,467

Charge for year

50,827

131,963

422,936

83,960

Eliminated on disposal

-

-

(515,443

)

-

Reclassification/transfer

-

-

-

(8,407

)

At 28 February 2025

306,256

537,067

2,083,532

648,020

NET BOOK VALUE

At 28 February 2025

2,235,067

6,086,273

1,589,021

326,242

At 29 February 2024

2,285,894

6,078,771

1,564,051

419,225

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST

At 1 March 2024

71,520

338,562

12,651

14,179,713

Additions

-

-

-

910,806

Disposals

-

(149,331

)

-

(984,759

)

Reclassification/transfer

-

20,880

-

-

At 28 February 2025

71,520

210,111

12,651

14,105,760

DEPRECIATION

At 1 March 2024

51,325

194,990

6,531

3,661,885

Charge for year

4,039

35,383

1,530

730,638

Eliminated on disposal

-

(100,869

)

-

(616,312

)

Reclassification/transfer

-

8,407

-

-

At 28 February 2025

55,364

137,911

8,061

3,776,211

NET BOOK VALUE

At 28 February 2025

16,156

72,200

4,590

10,329,549

At 29 February 2024

20,195

143,572

6,120

10,517,828

Included in cost of land and buildings is freehold land of £ 1,430,832 (2024 - £ 1,430,831 ) which is not depreciated.

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

COST

At 1 March 2024

and 28 February 2025

86,328

DEPRECIATION

At 1 March 2024

26,493

Charge for year

14,959

At 28 February 2025

41,452

NET BOOK VALUE

At 28 February 2025

44,876

At 29 February 2024

59,835

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

1,178,869

2,764,911

Amounts owed by group undertakings

21,000

-

Other debtors

112,065

202,179

1,311,934

2,967,090

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Bank loans and overdrafts

-

829,150

Hire purchase contracts (see note 9)

8,081

29,006

Trade creditors

422,629

1,386,699

Amounts owed to group undertakings

930,000

-

Taxation and social security

125,589

568,025

Other creditors

101,103

69,075

1,587,402

2,881,955

Included within creditors there is an unsecured loan from the company's parent undertaking which has an outstanding balance of £930,000 as at 28 February 2025 (2024: £nil). The loan carries interest at a rate of 5.85% per annum and is repayable on 30 June 2025. The loan is considered to be on arm’s length terms.

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2025

2024

£

£

Bank loans

-

2,234,321

Hire purchase contracts (see note 9)

-

8,081

Other creditors

210,067

214,867

210,067

2,457,269

9.	LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2025

2024

£

£

Gross obligations repayable:

Within one year

8,943

32,070

Between one and five years

-

8,943

8,943

41,013

Finance charges repayable:

Within one year

862

3,064

Between one and five years

-

862

862

3,926

Net obligations repayable:

Within one year

8,081

29,006

Between one and five years

-

8,081

8,081

37,087

10.	SECURED DEBTS

The following secured debts are included within creditors:

2025

2024

£

£

Hire purchase contracts

8,081

37,087

Finance leases are secured over the assets to which the finance relates.

11.	PROVISIONS FOR LIABILITIES

2025

2024

£

£

Deferred tax

483,670

816,359

Other provisions

1,207,500

-

1,691,170

816,359

Deferred

Other

tax

provisions

£

£

Balance at 1 March 2024

816,359

-

Provided during year

-

1,207,500

Credit to Income Statement during year

(332,689

)

-

Balance at 28 February 2025

483,670

1,207,500

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2025

2024

value:

£

£

100

Ordinary

1

100

100

13.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was qualified on the following basis:

Basis for qualified opinion

Harry Needle Railroad Company Ltd's stock is carried at £135,822 on the balance sheet as at 28 February 2025. We were unable to obtain sufficient audit evidence about the carrying amount of stock at the balance sheet date. This was due to stocktake attendance being deemed impractical due to the absence of adequate and reliable stock records which could be tested appropriately at a physical stock count at or near the period-end. We were unable to satisfy ourselves by alternative means concerning the existence and valuation of stock held at 28 February 2025. Consequently we were unable to determine whether any adjustments to these amounts were necessary.

We have 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.

Other matter - Comparative Financial Statements unaudited

In the previous accounting period the directors of the company took advantage of audit exemption under s.477 of the Companies Act 2006. Therefore the prior period financial statements were not subject to audit.

Alastair Stewart BA (Hons) CA (Senior Statutory Auditor)

for and on behalf of Gillespie & Anderson

14.	PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £19,500 (2024 - £18,457). As at 28 February 2025 there were outstanding pension contributions amounting to£5,597 (2024 - £5,385) included in accrued charges.

15.	RELATED PARTY DISCLOSURES

Included within other debtors is a balance of £9,080 (2024 - creditor of £16,632) due from a former director.

The individual resigned as a director on 20 December 2024. The balance is interest-free, unsecured and repayable on demand.

In the prior year, the amount was presented within other creditors as a director’s current account balance.

16.	ULTIMATE CONTROLLING PARTY

The immediate parent company is Swietelsky AG, a company incorporated in Austria. Group accounts are prepared and these are available on request from 4020 Linz, Edlbacherstrasse 10, Austria, or from the group's website www.swietelsky.com.

HPB Holding GmbH (incorporated in Austria) is regarded by the directors as being the company's ultimate parent company. C Brustmann is regarded by the directors as being the ultimate controlling party.