The director presents the strategic report for the year ended 30 September 2024.

Turnover for the year has decreased to £13.598 million in 2024

Continued pressure of cost fluctuations as a direct result of Covid and economic pressures are still creating challenges in the industry.  Despite this, we maintain a broad operating base of Clients which provides a robust business base ranging through many sectors.  We have been successful in the award of CP7 rail framework for 10 years and whilst this gives an excellent secure future for the rail business, it has been exceptionally slow to start and anticipated spend is reduced.  This is something that it is envisaged will gain momentum over the next FY.

The main risks and uncertainties facing the business are:

Market and economic conditions: The company is exposed to fluctuations in construction and infrastructure spending, slow start to new major rail frameworks and uncertainty of expenditure by Network Rail.

Supply chain risk: Global supply chain pressures continue to impact lead times and component costs.

Regulatory environment: The business is subject to health and safety, environmental, and product compliance regulations.

Management actively monitors these risks through robust planning, supplier diversification, staff training initiatives, and compliance programmes.

Future Developments

The directors are focusing on completion of the current projects and managing cost fluctuations within the supply chain so that the current residential projects can be completed and marketed for disposal. Future opportunities are in planning submission or PreApp stages at present that will provide opportunity for the next FY.

The directors intend to continue the company’s strategy of targeting growth in rail frameworks and seek to consolidate frameworks within the South of the UK instead of nationally. Further investment in digital engineering solutions and AI is planned for 2025 to improve operational efficiency.

In accordance with section 414CZA of the Companies Act 2006, the directors have had regard to the matters set out in section 172(1) when performing their duties. The directors consider the long-term consequences of decisions, the interests of employees, relationships with customers and suppliers, and the impact on the community and environment.

The company’s focus on sustainable engineering and investment in staff training are key aspects of delivering long-term success for stakeholders.

Approved by the board.

The director presents his annual report and financial statements for the year ended 30 September 2024.

The principal activity of the company during the year continued to be the provision of engineering and construction in the rail sectors and also new clients for design and build opportunities. There have been no significant changes in the nature of the company’s business during the year.

The results for the year are set out on page 5.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

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

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is 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. He is 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.

We have not audited the 2024 financial statements of Nationwide Engineering Ltd

No opinion provided.

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

NATIONWIDE ENGINEERING LTD is a private company limited by shares incorporated in England and Wales. The registered office is Unit 19 The Bluestone Centre Sun Rise Way, Amesbury, Salisbury, Wiltshire, England, SP4 7YR.

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

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

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

All revenue is derived from construction contracts.

Contract revenue is measured at fair value of the consideration received or receivable and includes the initial amount of revenue agreed in the contract, plus variations, claims and incentive payments to the extent that is probable that they will result in revenue and they are capable of being measured reliably. Revenue is stated net of discounts, VAT and other sales related taxes.

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

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

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.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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

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

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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

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

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

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

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

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

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

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

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

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

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

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

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

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

Work in progress

Work in progress represents the value of project costs incurred but not yet invoiced to customers at the balance sheet date. The company accounts for its long-term contract revenue and costs using the percentage-of-completion method in accordance with FRS 102, Section 23.

Under this method, the cumulative amount of contract revenue recognised is based on the proportion of contract costs incurred for work performed to date compared to the total estimated contract costs. The difference between the cumulative revenue recognised and the cumulative progress billings to date is shown as an asset (amounts recoverable on contracts) or a liability (payments on account) on the balance sheet.

Work in progress is stated at the lower of cost and net realisable value. Cost includes direct materials, direct labour, and an appropriate proportion of production overheads. Any foreseeable losses on a contract are recognised immediately

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

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

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

Their aggregate remuneration comprised:

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

The company has obtained informal loans from individuals known to the business. These loans carry interest rates ranging between 5% and 15% per annum, with repayments made by monthly instalments in accordance with agreed terms. The loans are unsecured and do not contain any restrictive covenants. There were no defaults in the repayment of principal or interest during the year.

The company has also obtained external loans carrying an interest rate of 10% per annum. These loans are secured by a charge over the assets of the company. The loans were originally due for repayment in 2020; however, the amounts remain outstanding and continue to accrue interest in accordance with the loan terms. The company continues to service the interest obligations as they fall due.

The company has entered into hire purchase agreements for the acquisition of motor vehicles used in its operations. The agreements have repayment terms ranging from 36 to 60 months, with repayments made by monthly instalments over the respective terms. The obligations under these agreements are secured on the related assets. Ownership of the vehicles transfers to the company upon payment of the final instalments.

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

The deferred tax liability set out above is expected to reverse within [12 months] and relates to accelerated capital allowances that are expected to mature within the same period.

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

During the year the company entered into the following transactions with related parties:

The ultimate controlling party is Nationwide Engineering Group Limited who owns 100% of the share capital.