REGISTERED NUMBER: 14084479 (England and Wales)

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2024

FOR

SHIELD MANUFACTURING TECHNOLOGIES

LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

J Cooper

C R F Shield

C J Elworthy

M A Hobday

REGISTERED OFFICE:

First Floor

One Colton Square

Leicester

Leicestershire

LE1 1QH

REGISTERED NUMBER:

14084479 (England and Wales)

AUDITORS:

Magma Audit LLP (part of the Dains Group)

Chartered Accountants

Statutory Auditor

Unit 2, Charnwood Edge Business Park

Syston Road

Leicestershire

LE7 4UZ

FIXED ASSETS

Intangible assets

4

775,000

875,000

Tangible assets

5

1,989,738

1,227,610

2,764,738

2,102,610

CURRENT ASSETS

Stocks

1,886,334

716,318

Debtors

6

1,064,085

371,167

Cash at bank

1,501

20,886

2,951,920

1,108,371

CREDITORS

Amounts falling due within one year

7

(5,211,032

)

(1,096,997

)

NET CURRENT (LIABILITIES)/ASSETS

(2,259,112

)

11,374

TOTAL ASSETS LESS CURRENT LIABILITIES

505,626

2,113,984

CREDITORS

Amounts falling due after more than one year

8

(110,500

)

-

NET ASSETS

395,126

2,113,984

CAPITAL AND RESERVES

Called up share capital

4,975,595

4,975,595

Retained earnings

(4,580,469

)

(2,861,611

)

395,126

2,113,984

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 Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 29 October 2025 and were signed on its behalf by:

C R F Shield - Director

1.	STATUTORY INFORMATION

Shield Manufacturing Technologies Limited is a private limited company, limited by shares, registered in England and Wales. Its registered office address is First Floor, One Colton Square, Leicester, Leicestershire, LE1 1QH and the registered number is 14084479.

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.

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

Going concern

The financial statements have been prepared on a going concern basis as Shield Engineering (Syston) Limited, a related party controlled by C R F Shield, has confirmed to the directors that they will provide support, if required to enable the Company to continue in operation for the foreseeable future, being not less than twelve months from the date of approval of these financial statements. Shield Manufacturing Technologies Limited will draw on funds available as required. Accordingly, the directors have determined that it is appropriate to prepare these financial statements on a going concern basis.

Turnover

Turnover represents amounts receivable for goods and services net of VAT and trade discounts and is recognised when goods are despatched.

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.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2022, is being amortised evenly over its estimated useful life of ten years.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

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

Plant and machinery

- 15% straight line

Computer equipment

- 25% straight line

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Taxation

The tax expense for the year comprises current and deferred tax.

Tax is recognised in profit or loss except that a change attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:

- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Operating leases

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Debtors

Basic financial assets, including trade and other debtors, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents

Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors

Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, 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 payments discounted at a market rate of interest. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 15 (2023 - 20 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 November 2023

and 31 October 2024

1,000,000

AMORTISATION

At 1 November 2023

125,000

Charge for year

100,000

At 31 October 2024

225,000

NET BOOK VALUE

At 31 October 2024

775,000

At 31 October 2023

875,000

5.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Computer

machinery

fittings

equipment

Totals

£

£

£

£

COST

At 1 November 2023

1,423,029

-

1,999

1,425,028

Additions

1,289,645

34,651

3,164

1,327,460

Disposals

(250,473

)

-

-

(250,473

)

At 31 October 2024

2,462,201

34,651

5,163

2,502,015

DEPRECIATION

At 1 November 2023

197,043

-

375

197,418

Charge for year

358,688

2,353

1,527

362,568

Eliminated on disposal

(47,709

)

-

-

(47,709

)

At 31 October 2024

508,022

2,353

1,902

512,277

NET BOOK VALUE

At 31 October 2024

1,954,179

32,298

3,261

1,989,738

At 31 October 2023

1,225,986

-

1,624

1,227,610

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

1,976

14,902

Amounts owed by group undertakings

721,723

161,208

Other debtors

71,464

57,200

VAT

259,151

132,523

Prepayments and accrued income

9,771

5,334

1,064,085

371,167

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Hire purchase contracts

102,000

252,021

Trade creditors

236,990

322,836

Amounts owed to group undertakings

4,823,766

475,937

Social security and other taxes

18,558

22,195

Accruals and deferred income

29,718

24,008

5,211,032

1,096,997

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024

2023

£

£

Hire purchase contracts

110,500

-

9.	SECURED DEBTS

The following secured debts are included within creditors:

2024

2023

£

£

Hire purchase contracts

212,500

252,021

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

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

Basis for disclaimer of opinion

We were appointed as auditors of the company on 26 March 2024. In the current and prior financial year, there has been a lack of sufficient documentation and management of the companies stock. We were therefore unable to obtain sufficient appropriate audit evidence and explanations to support balances concerning the inventory quantities held, cut-off, and valuation throughout the period to 31 October 2024 and in the prior period, which are included in the Balance sheet at £1,886,334 and £716,318 respectively.

As a result of the above, we were unable to determine whether any adjustments might have been found necessary in respect of the Profit and Loss account, Balance Sheet and Notes to the Financial Statements.

Our audit opinion on the financial statements for the year ended 31 October 2024 is disclaimed because of the possible effect of this matter on the current year figures and the corresponding figures. Therefore, the financial statements may be materially misstated.

Luke Turner FCA FCCA (Senior Statutory Auditor)

for and on behalf of Magma Audit LLP (part of the Dains Group)

11.	RELATED PARTY DISCLOSURES

Income from related parties

During the year the company made sales of £242,764 (2023 - £423,032) to entities under the control of Mr C R F Shield.

Purchases from related parties

During the year the company purchased goods of £116,927 (2023 - £75,307) to entities under the control of Mr C R F Shield.

Amounts owed by related parties

At the year end the company was owed £721,723 (2023 - £161,209) by entities under the control of Mr C R F Shield.

Amounts owed to related parties

At the year end the company owed £4,823,766 (2023 - £100,148) to entities under the control of Mr C R F Shield.