Techtest Limited 01363570 false 2024-02-01 2025-01-31 2025-01-31 The principal activity of the company is that of the manufacture of test and search and rescue equipment. Digita Accounts Production Advanced 6.30.9574.0 true true true true 01363570 2024-02-01 2025-01-31 01363570 2025-01-31 01363570 bus:OrdinaryShareClass1 bus:CumulativeShares 2025-01-31 01363570 bus:Consolidated 2025-01-31 01363570 2 2025-01-31 01363570 core:AcceleratedTaxDepreciationDeferredTax 2025-01-31 01363570 core:RetirementBenefitObligationsDeferredTax 2025-01-31 01363570 core:CapitalRedemptionReserve 2025-01-31 01363570 core:RetainedEarningsAccumulatedLosses 2025-01-31 01363570 core:ShareCapital 2025-01-31 01363570 core:CurrentFinancialInstruments 2025-01-31 01363570 core:CurrentFinancialInstruments core:WithinOneYear 2025-01-31 01363570 core:ConstructionInProgressAssetsUnderConstruction 2025-01-31 01363570 core:FurnitureFittingsToolsEquipment 2025-01-31 01363570 core:LandBuildings 2025-01-31 01363570 core:OtherPropertyPlantEquipment 2025-01-31 01363570 bus:FRS102 2024-02-01 2025-01-31 01363570 bus:Audited 2024-02-01 2025-01-31 01363570 bus:FullAccounts 2024-02-01 2025-01-31 01363570 bus:RegisteredOffice 2024-02-01 2025-01-31 01363570 bus:CompanySecretaryDirector1 2024-02-01 2025-01-31 01363570 bus:Director1 2024-02-01 2025-01-31 01363570 bus:Director3 2024-02-01 2025-01-31 01363570 bus:HighestPaidDirector 2024-02-01 2025-01-31 01363570 bus:OrdinaryShareClass1 bus:CumulativeShares 2024-02-01 2025-01-31 01363570 bus:Consolidated 2024-02-01 2025-01-31 01363570 bus:PrivateLimitedCompanyLtd 2024-02-01 2025-01-31 01363570 bus:Agent1 2024-02-01 2025-01-31 01363570 1 2024-02-01 2025-01-31 01363570 core:CapitalRedemptionReserve 2024-02-01 2025-01-31 01363570 core:RetainedEarningsAccumulatedLosses 2024-02-01 2025-01-31 01363570 core:ShareCapital 2024-02-01 2025-01-31 01363570 core:ConstructionInProgressAssetsUnderConstruction 2024-02-01 2025-01-31 01363570 core:FurnitureFittings 2024-02-01 2025-01-31 01363570 core:FurnitureFittingsToolsEquipment 2024-02-01 2025-01-31 01363570 core:LandBuildings 2024-02-01 2025-01-31 01363570 core:OtherPropertyPlantEquipment 2024-02-01 2025-01-31 01363570 core:PlantMachinery 2024-02-01 2025-01-31 01363570 core:UKTax 2024-02-01 2025-01-31 01363570 countries:EnglandWales 2024-02-01 2025-01-31 01363570 2024-01-31 01363570 core:CapitalRedemptionReserve 2024-01-31 01363570 core:RetainedEarningsAccumulatedLosses 2024-01-31 01363570 core:ShareCapital 2024-01-31 01363570 core:ConstructionInProgressAssetsUnderConstruction 2024-01-31 01363570 core:FurnitureFittingsToolsEquipment 2024-01-31 01363570 core:LandBuildings 2024-01-31 01363570 core:OtherPropertyPlantEquipment 2024-01-31 01363570 2023-02-01 2024-01-31 01363570 2024-01-31 01363570 bus:OrdinaryShareClass1 bus:CumulativeShares 2024-01-31 01363570 2 2024-01-31 01363570 core:AcceleratedTaxDepreciationDeferredTax 2024-01-31 01363570 core:RetirementBenefitObligationsDeferredTax 2024-01-31 01363570 core:CapitalRedemptionReserve 2024-01-31 01363570 core:RetainedEarningsAccumulatedLosses 2024-01-31 01363570 core:ShareCapital 2024-01-31 01363570 core:CurrentFinancialInstruments 2024-01-31 01363570 core:CurrentFinancialInstruments core:WithinOneYear 2024-01-31 01363570 core:ConstructionInProgressAssetsUnderConstruction 2024-01-31 01363570 core:FurnitureFittingsToolsEquipment 2024-01-31 01363570 core:LandBuildings 2024-01-31 01363570 core:OtherPropertyPlantEquipment 2024-01-31 01363570 bus:HighestPaidDirector 2023-02-01 2024-01-31 01363570 1 2023-02-01 2024-01-31 01363570 core:CapitalRedemptionReserve 2023-02-01 2024-01-31 01363570 core:RetainedEarningsAccumulatedLosses 2023-02-01 2024-01-31 01363570 core:ShareCapital 2023-02-01 2024-01-31 01363570 core:UKTax 2023-02-01 2024-01-31 01363570 2023-01-31 01363570 core:CapitalRedemptionReserve 2023-01-31 01363570 core:RetainedEarningsAccumulatedLosses 2023-01-31 01363570 core:ShareCapital 2023-01-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 01363570 (England and Wales)

Techtest Limited

Annual Report and Financial Statements

for the Year Ended 31 January 2025

 

Techtest Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 7

Profit and Loss Account

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11 to 21

 

Techtest Limited

Company Information

Directors

Mr R E L Smith

Miss S F Smith

Mrs L M M Sharp-Smith

Company secretary

Miss S F Smith

Registered office

Street Court
Kingsland
Leominster
Herefordshire
HR6 9QA

Principal place of business

Unit 416
Tarsmill Court
Rotherwas Industrial Estate
Hereford
HR2 6JZ

Auditors

Hazlewoods LLP Staverton Court
Staverton
Cheltenham
GL51 0UX

 

Techtest Limited

Strategic Report for the Year Ended 31 January 2025

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

Principal activity

The principal activity of the company is that of the manufacture of test and search and rescue equipment.

Fair review of the business

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties we face.

We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover and gross margin.

In 2025 the company saw an increase in turnover of 7% (2024: increase 22%). Gross profit percentage has slightly increased to 61% in 2025 compared to 60% in 2024.

At 31 January 2025 the company had net assets of £23,539,321 (2024: £14,562,079).

Research and development

The company continues to invest in the important area of research and development for the defence and civil aviation markets’ product needs.

Future developments

The order book remained strong at 31 January 2025. The directors are confident that 2025-26 will show a consistent performance, and will continue to monitor closely.

Principal risks and uncertainties

The company's financial instruments comprise of cash at bank and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise adequate finance for the company's operations.

The main risk arising from the company's financial instruments is exchange rate risk. Foreign currency risk arises from the sale of goods to customers outside the UK. These sales are priced in Sterling but invoiced in Euros and US dollars.

Approved by the Board on 29 October 2025 and signed on its behalf by:


Mrs L M M Sharp-Smith
Director

 

Techtest Limited

Directors' Report for the Year Ended 31 January 2025

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

Results and dividends
The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £nil (2024 - £25,000,000). The directors do not recommend payment of a further dividend.

Directors of the company

The directors who held office during the year were as follows:

Mr R E L Smith

Miss S F Smith - Company secretary and director

Mrs L M M Sharp-Smith

Going concern

The directors' have considered the future trading position of the company, and based on actual results since the year end, are confident that a going concern principle can be applied in the financial statements.

Information included in the 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 financial risks and uncertainties.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved by the Board on 29 October 2025 and signed on its behalf by:


Mrs L M M Sharp-Smith
Director

 

Techtest Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

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.

 

Techtest Limited

Independent Auditor's Report to the Members of Techtest Limited

Opinion

We have audited the financial statements of Techtest Limited (the 'company') for the year ended 31 January 2025, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of 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 January 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 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.

Conclusions relating to going concern

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 original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

 

Techtest Limited

Independent Auditor's Report to the Members of Techtest Limited

We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page 4, 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 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:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We considered the nature of the company's industry and its control environment and reviewed the company's documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

 

In common with all audits conducted in accordance with ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we assessed whether the judgements made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

 

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

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;

enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and

reading minutes of meetings of those charged with governance.

 

Techtest Limited

Independent Auditor's Report to the Members of Techtest Limited

 

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one as resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusions. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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

Use of this 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.





Felicity Sang (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Staverton Court
Staverton
Cheltenham
GL51 0UX

31 October 2025

 

Techtest Limited

Profit and Loss Account for the Year Ended 31 January 2025

Note

2025
£

2024
£

Turnover

33,384,367

31,282,774

Cost of sales

 

(13,033,083)

(12,462,563)

Gross profit

 

20,351,284

18,820,211

Administrative expenses

 

(9,146,504)

(9,912,149)

Other operating income

4

16,000

9,000

Operating profit

5

11,220,780

8,917,062

Interest receivable and similar income

6

5,723

1,928

Interest payable and similar expenses

(16,579)

-

   

(10,856)

1,928

Profit before tax

 

11,209,924

8,918,990

Tax on profit

10

(2,232,682)

(1,593,942)

Profit for the financial year

 

8,977,242

7,325,048

The above results were derived from continuing operations.

The company has no other comprehensive income for the year.

 

Techtest Limited

(Registration number: 01363570)
Balance Sheet as at 31 January 2025

Note

2025
£

2024
£

Fixed assets

 

Tangible assets

11

13,332,440

10,352,857

Current assets

 

Stocks

12

6,380,369

6,940,345

Debtors

13

13,437,858

9,137,778

Cash at bank and in hand

 

1,381,370

1,225,546

 

21,199,597

17,303,669

Creditors: Amounts falling due within one year

14

(9,413,890)

(11,697,883)

Net current assets

 

11,785,707

5,605,786

Total assets less current liabilities

 

25,118,147

15,958,643

Provisions for liabilities

(1,578,826)

(1,396,564)

Net assets

 

23,539,321

14,562,079

Capital and reserves

 

Called up share capital

880

880

Capital redemption reserve

17

120

120

Profit and loss account

17

23,538,321

14,561,079

Total equity

 

23,539,321

14,562,079

Approved and authorised by the Board on 29 October 2025 and signed on its behalf by:
 


Mrs L M M Sharp-Smith
Director

 

Techtest Limited

Statement of Changes in Equity for the Year Ended 31 January 2025

Share capital
£

Capital redemption reserve
£

Profit and loss account
£

Total
£

At 1 February 2023

880

120

32,236,031

32,237,031

Profit for the year

-

-

7,325,048

7,325,048

Dividends

-

-

(25,000,000)

(25,000,000)

At 31 January 2024

880

120

14,561,079

14,562,079

Share capital
£

Capital redemption reserve
£

Profit and loss account
£

Total
£

At 1 February 2024

880

120

14,561,079

14,562,079

Profit for the year

-

-

8,977,242

8,977,242

At 31 January 2025

880

120

23,538,321

23,539,321

 

Techtest Limited

Notes to the Financial Statements for the Year Ended 31 January 2025

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Street Court
Kingsland
Leominster
Herefordshire
HR6 9QA

The principal place of business is:
Unit 416
Tarsmill Court
Rotherwas Industrial Estate
Hereford
HR2 6JZ

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Summary of disclosure exemptions

The company has taken advantage of the following disclosure exemptions available to qualifying entities in preparing its separate financial statements, as permitted by FRS 102:

- the requirements of Section 7 'Statement of Cash Flows';
- the requirements of Section 3 'Financial Statement Presentation' paragraph 3.17(d);
- the requirements of certain paragraphs within Sections 11 and 12 relating to Financial Instruments';
- the requirements of Section 26 'Share-based Payment';
- the requirements of Section 33 'Related Party Disclosures' paragraph 33.7

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.

Name of parent of group

These financial statements are consolidated in the financial statements of H. R. Smith Group Limited.

The financial statements of H. R. Smith Group Limited may be obtained from the company's registered office Street Court, Kingsland, Leominster, Herefordshire, HR6 9QA.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

 

Techtest Limited

Notes to the Financial Statements for the Year Ended 31 January 2025

 

2

Accounting policies (continued)

Critical accounting 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 amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Stock provision
The company manufactures and sells search and rescue equipment and is subject to changing consumer demands and market trends. As a result, it is necessary to consider the recoverability of the cost of inventory and the associated provisioning required. When calculating the inventory provision, management considers the age, nature and condition of the inventory, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials. The appropriateness of this stock provision is regularly assessed in light of subsequent performance.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue 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.

Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

 

Techtest Limited

Notes to the Financial Statements for the Year Ended 31 January 2025

 

2

Accounting policies (continued)

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

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.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold land and buildings

2% on cost

Plant and equipment

15% on cost

Fixtures and fittings

15% on cost

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

Finished goods cost is defined as discounted average selling price, which takes account of a margin reduction.

Raw materials cost is defined as the last purchase price.

Finished goods and raw materials are subject to stock provisions as noted in the critical accounting policy.

Work in progress is valued by reference to the stage of completion of a part at the balance sheet date, and is based on a discounted average selling price, which takes account of a margin reduction.

Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and 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.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

 

Techtest Limited

Notes to the Financial Statements for the Year Ended 31 January 2025

 

2

Accounting policies (continued)

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 is 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.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

 

Techtest Limited

Notes to the Financial Statements for the Year Ended 31 January 2025

 

2

Accounting policies (continued)

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

3

Turnover

The turnover and profit before tax are attributable to the one principal activity of the company. A geographical analysis of turnover has not been provided due to the commercial sensitivity of the information.

 

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2025
£

2024
£

Other operating income

16,000

9,000

Other operating income primarily comprises rental income receivable in the year.

 

5

Operating profit

Arrived at after charging/(crediting)

2025
£

2024
£

Depreciation expense

798,268

694,073

Foreign exchange (gains)/losses

(56,955)

42,069

Research and development expenditure

2,709,493

2,456,766

 

6

Other interest receivable and similar income

2025
£

2024
£

Other interest receivable

5,723

-

Interest income on bank deposits

-

1,928

5,723

1,928

 

Techtest Limited

Notes to the Financial Statements for the Year Ended 31 January 2025

 

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2025
£

2024
£

Wages and salaries

11,003,631

11,450,220

Social security costs

1,207,518

1,306,889

Pension costs

149,927

138,300

12,361,076

12,895,409

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2025
No.

2024
No.

Production

123

119

Quality assurance

10

10

Engineering

46

44

Sales

34

33

Directors

3

3

216

209

 

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2025
£

2024
£

Remuneration

3,258,594

4,157,950

In respect of the highest paid director:

2025
£

2024
£

Remuneration

1,363,636

1,417,955

 

9

Auditors' remuneration

2025
£

2024
£

Audit of the financial statements

14,250

18,000


 

 

Techtest Limited

Notes to the Financial Statements for the Year Ended 31 January 2025

 

10

Taxation

Tax charged/(credited) in the profit and loss account

2025
£

2024
£

Current taxation

UK corporation tax

1,728,523

775,000

UK corporation tax adjustment to prior periods

7,486

(35,000)

Group relief payable

314,411

634,447

2,050,420

1,374,447

Deferred taxation

Arising from origination and reversal of timing differences

182,262

219,495

Tax expense in the profit and loss account

2,232,682

1,593,942

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2024 - the same as the standard rate of corporation tax in the UK) of 25% (2024 - 24%).

The differences are reconciled below:

2025
£

2024
£

Profit before tax

11,209,924

8,918,990

Corporation tax at standard rate

2,802,481

2,140,558

Tax increase from effect of capital allowances and depreciation

19,983

-

Effect of revenues exempt from taxation

(1,431)

-

Effect of expense not deductible in determining taxable profit (tax loss)

7,492

18,684

Group relief

-

19,000

Tax decrease from effect of adjustment in research and development tax credit

(582,541)

(550,316)

Increase/(Decrease) in tax charge in respect of previous periods

7,486

(35,000)

Other adjustments, including effect of change in tax rate

(20,788)

1,016

Total tax charge

2,232,682

1,593,942

Deferred tax

Deferred tax assets and liabilities

2025

Liability
£

Accelerated capital allowances

1,583,087

Other short term timing differences

(4,261)

1,578,826

2024

Liability
£

Accelerated capital allowances

1,414,035

Other short term timing differences

(17,471)

1,396,564

 

Techtest Limited

Notes to the Financial Statements for the Year Ended 31 January 2025

 

11

Tangible assets

Freehold land and buildings
£

Assets under construction
 £

Plant and equipment
£

Fixtures and fittings
 £

Total
£

Cost or valuation

At 1 February 2024

8,265,406

378,271

5,065,765

804,480

14,513,922

Additions

755,950

2,000,700

521,438

500,169

3,778,257

Reclassification

369,233

(369,233)

-

-

-

Disposals

-

-

(16,314)

(927)

(17,241)

At 31 January 2025

9,390,589

2,009,738

5,570,889

1,303,722

18,274,938

Depreciation

At 1 February 2024

901,122

-

2,791,449

468,494

4,161,065

Charge for the year

160,130

-

530,985

107,153

798,268

Eliminated on disposal

-

-

(16,314)

(521)

(16,835)

At 31 January 2025

1,061,252

-

3,306,120

575,126

4,942,498

Carrying amount

At 31 January 2025

8,329,337

2,009,738

2,264,769

728,596

13,332,440

At 31 January 2024

7,364,284

378,271

2,274,316

335,986

10,352,857

Included within the cost of freehold land and buildings is freehold land of £679,736 (2024: £286,105) which is not depreciated.
 

 

Techtest Limited

Notes to the Financial Statements for the Year Ended 31 January 2025

 

12

Stocks

2025
£

2024
£

Raw materials and consumables

3,571,901

3,741,218

Work in progress

2,362,597

2,558,696

Finished goods and goods for resale

445,871

640,431

6,380,369

6,940,345

Stock provisions, as detailed in note 2, have been recognised of £4,840,081 (2024: £5,976,992).

 

13

Debtors

Note

2025
£

2024
£

Trade debtors

 

6,529,078

5,742,410

Amounts owed by group undertakings

20

4,903,703

2,023,948

Other debtors

 

85,175

921,901

Prepayments

 

54,130

24,208

VAT

10

1,865,772

425,311

 

13,437,858

9,137,778

Amounts owed by group undertakings are unsecured, interest free and have no fixed date of repayment and are repayable on demand.

 

14

Creditors

Note

2025
£

2024
£

Due within one year

 

Trade creditors

 

2,363,826

1,657,635

Amounts owed to group undertakings

20

1,098,729

868,403

Social security and other taxes

 

255,414

302,170

Other creditors

 

1,220,841

1,220,841

Accruals

 

3,826,903

6,873,834

Corporation tax liability

10

648,177

775,000

 

9,413,890

11,697,883

Amounts due to related undertakings, connected by common control and as included in other creditors, of £1,220,841 (2024 - £1,220,841), are unsecured, interest free and have no fixed date of repayment and are repayable on demand.

Amounts owed to group undertakings are unsecured, interest free and have no fixed date of repayment and are repayable on demand.

 

Techtest Limited

Notes to the Financial Statements for the Year Ended 31 January 2025

 

15

Share capital

Allotted, called up and fully paid shares

2025

2024

No.

£

No.

£

Ordinary of £0.001 each

880,000

880

880,000

880

       

Called-up share capital represents the nominal value of shares that have been issued.

Each share is entitled to one vote in any circumstances. Each share is entitled pari passu to dividend payments or other distributions. Each share is also entitled pari passu to participate in a distribution arising from the winding up of the company.

 

16

Capital redemption reserve

2025
£

2024
£

At the beginning and end of the year

120

120

The capital redemption includes amounts transferred following the purchase of own shares.

 

17

Profit and loss account

2025
£

2024
£

At the beginning of the year

14,561,079

32,236,031

Profit for the year

8,977,242

7,325,048

Dividends declared and paid in the year

-

(25,000,000)

At the end of the year

23,538,321

 

14,561,079

Retained earnings include all current and prior period retained profits and losses.

 

18

Dividends

2025
 £

2024
 £

Dividends paid

-

25,000,000

 

Techtest Limited

Notes to the Financial Statements for the Year Ended 31 January 2025

 

19

Financial commitments, guarantees and contingent liabilities

Capital commitments

The company had total guarantees, contingencies and commitments of £2,763,558 (2024 - £93,301).

Guarantees

All assets are pledged as security to the bank under a fixed and floating charge and by way of cross guarantee involving other group companies. The maximum extent of this guarantee at the balance sheet date is £Nil (2024 - £Nil).

 

20

Related party transactions

During the year the company entered into transactions with companies connected via common control. This related to income of £47,874 (2024 - £36,562).

Amounts outstanding at the reporting end date and held within trade debtors, other debtors and prepayments are £24,544 (2024 - £12,505).

Amounts outstanding at the reporting end date and held within trade creditors, other creditors and accruals are £1,221,386 (2024 - £1,223,100).

 

21

Ultimate controlling party

The ultimate parent company and ultimate controlling party is H. R. Smith Group Limited, a company incorporated and registered in England and Wales.

The largest group of which is Techtest Limited is a member and for which group accounts are prepared is headed by H.R. Smith Group Limited, a company registered in England and Wales, with its registered office of Street Court, Kingsland, Leominster, Herefordshire, HR6 9QA.