Company registration number 01364071 (England and Wales)
IVOR SEARLE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2025
IVOR SEARLE LIMITED
COMPANY INFORMATION
Directors
Mrs J M Searle
Mr D Eszenyi
Mrs K I Hemmingfield
Secretary
Mrs K I Hemmingfield
Company number
01364071
Registered office
2 Regal Lane
Soham
Ely
CB7 5BA
Auditor
Ensors
First Floor
Victory House, Vision Park
Chivers Way, Histon
Cambridge
CB24 9ZR
Bankers
Handelsbanken
Cambridge Business Park
Cowley Road
Cambridge
CB4 0WZ
Solicitors
Taylor Vinters Solicitors
4 Station Square
Cambridge
CB1 2GE
IVOR SEARLE LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
9
Statement of changes in equity
8
Statement of cash flows
10
Notes to the financial statements
11 - 23
IVOR SEARLE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2025
- 1 -

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

Fair review of the Business

The D irectors are very satisfied with the financial performance of the C ompany for the year. As noted within the Key Performance Indicators below, turnover and gross profit have both increased as compared with the previous financial year. The gross profit percentage has increased from 33.7% to 35.7%. This improvement has been driven by increased activity on the shop floor as demand continues to increase.

Net assets of the company have increased by £2.1m to £6.1m from £4.0m; net current assets have increased by £1.9m; and cash balances have increased by £2m as a result of the strong financial performance in the current year.

Principal risks and uncertainties

The business is exposed to a number of risks and uncertainties. The directors believe that the principal risks are:

- Deterioration of the credit worthiness of customers;

- Loss, or significant disruption in the trading ability, of a major customer;

- Loss of key personnel.

Policies are in place to monitor and manage each of these risks, including credit insurance.

In the longer term government policies in relation to the internal combustion engine will also need to be considered.

Development and performance

The Directors consider that the financial position of the company remains strong. The company continues to maintain a strong balance sheet, as noted above.

The strong sales have continued from the last financial year. Increasing production has been a key focus to help keep up with demand, increase stock levels and reduce lead times. Recruitment has been critical to achieve this along with maintaining high levels of efficiency and quality. The directors are pleased with the performance moving forward.

Key performance indicators

The key performance indicators for the year together with comparatives are:

Turnover £21.1m (2024: £19.7m)

Gross profit £7.5m (20 24: £6.6m)

Gross profit percentage 35.69% (20 24: 33.73%)

The directors are satisfied with the results this year.

On behalf of the board

Mrs K I Hemmingfield
Director
28 November 2025
IVOR SEARLE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2025
- 2 -

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

Principal activities

The principal activity of the company continued to be that of precision engineering, providing remanufacturing of engines, cylinder heads, gearboxes and turbos.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £585,200. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mrs J M Searle
Mr D Eszenyi
Mrs K I Hemmingfield
Financial instruments
Liquidity risk

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Foreign currency risk

The company’s principal foreign currency exposures arise from trading with overseas companies. Company policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling.

Credit risk

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Auditor

On 1 September 2025 our auditors, Ensors Accountants LLP, merged with Azets Audit Services Limited. Accordingly Ensors Accountants LLP formally resigned as the company’s auditors with the directors duly appointing Azets Audit Services Limited, trading as Ensors to fill the vacancy arising. The auditor, Azets Audit Services Limited, trading as Ensors will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible 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.

IVOR SEARLE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 3 -

In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent; 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.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mrs K I Hemmingfield
Director
28 November 2025
IVOR SEARLE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF IVOR SEARLE LIMITED
- 4 -
Opinion

We have audited the financial statements of Ivor Searle Limited (the 'company') for the year ended 31 May 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 May 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's 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 financial statements are 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in the strategic report and the directors' r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

IVOR SEARLE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF IVOR SEARLE LIMITED (CONTINUED)
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the directors' r eport.

We have nothing to report in respect of the following matters in relation to which 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 directors' r esponsibilities s tatement, 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's 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.

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

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.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

- obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company are complying with the legal and regulatory framework;

- inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;

- discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

IVOR SEARLE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF IVOR SEARLE LIMITED (CONTINUED)
- 6 -

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Jayson Lawson (Senior Statutory Auditor)
For and on behalf of Ensors, Statutory Auditor
Chartered Accountants
First Floor
Victory House, Vision Park
Chivers Way, Histon
Cambridge
CB24 9ZR
28 November 2025
IVOR SEARLE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2025
- 7 -
2025
2024
Notes
£
£
Turnover
3
21,067,400
19,708,131
Cost of sales
(13,547,965)
(13,059,922)
Gross profit
7,519,435
6,648,209
Distribution costs
(2,132,311)
(2,052,885)
Administrative expenses
(1,764,510)
(1,742,945)
Other operating income
4,693
4,693
Operating profit
4
3,627,307
2,857,072
Interest receivable and similar income
8
9,553
9,289
Interest payable and similar expenses
9
(100,000)
(100,000)
Profit before taxation
3,536,860
2,766,361
Tax on profit
10
(886,482)
(702,851)
Profit for the financial year
2,650,378
2,063,510

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

IVOR SEARLE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2025
- 8 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 June 2023
17,500
4,387
32,500
2,063,208
2,117,595
Year ended 31 May 2024:
Profit and total comprehensive income
-
-
-
2,063,510
2,063,510
Dividends
11
-
-
-
(151,400)
(151,400)
Balance at 31 May 2024
17,500
4,387
32,500
3,975,318
4,029,705
Year ended 31 May 2025:
Profit and total comprehensive income
-
-
-
2,650,378
2,650,378
Dividends
11
-
-
-
(585,200)
(585,200)
Balance at 31 May 2025
17,500
4,387
32,500
6,040,496
6,094,883
IVOR SEARLE LIMITED
BALANCE SHEET
AS AT
31 MAY 2025
31 May 2025
- 9 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,258,637
1,319,786
Current assets
Stocks
13
3,429,734
3,033,875
Debtors
14
3,992,649
4,133,762
Cash at bank and in hand
2,935,656
942,683
10,358,039
8,110,320
Creditors: amounts falling due within one year
15
(4,137,108)
(3,922,478)
Net current assets
6,220,931
4,187,842
Total assets less current liabilities
7,479,568
5,507,628
Creditors: amounts falling due after more than one year
16
(36,919)
(41,613)
Provisions for liabilities
Provisions
17
1,105,344
1,184,879
Deferred tax liability
18
242,422
251,431
(1,347,766)
(1,436,310)
Net assets
6,094,883
4,029,705
Capital and reserves
Called up share capital
21
17,500
17,500
Share premium account
4,387
4,387
Capital redemption reserve
32,500
32,500
Profit and loss reserves
6,040,496
3,975,318
Total equity
6,094,883
4,029,705

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 28 November 2025 and are signed on its behalf by:
Mrs K I Hemmingfield
Director
Company registration number 01364071 (England and Wales)
IVOR SEARLE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2025
- 10 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
3,727,147
1,780,529
Interest paid
(100,000)
(100,000)
Income taxes paid
(900,000)
(703,139)
Net cash inflow from operating activities
2,727,147
977,390
Investing activities
Purchase of tangible fixed assets
(160,027)
(156,003)
Proceeds from disposal of tangible fixed assets
1,500
167
Interest received
9,553
9,289
Net cash used in investing activities
(148,974)
(146,547)
Financing activities
Dividends paid
(585,200)
(151,400)
Net cash used in financing activities
(585,200)
(151,400)
Net increase in cash and cash equivalents
1,992,973
679,443
Cash and cash equivalents at beginning of year
942,683
263,240
Cash and cash equivalents at end of year
2,935,656
942,683
IVOR SEARLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2025
- 11 -
1
Accounting policies
Company information

Ivor Searle Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2 Regal Lane, Soham, Ely, CB7 5BA, and the registered number is 01364071.

1.1
Basis of preparation

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 a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

A true t the time of approving the financial statements, t he directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company has considered it’s forecasts and working capital requirements for a period of 12 months from the date of signing of these financial statements. Thus t he directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is the total amount receivable by the company on despatch for all goods supplied, apart from fleet sales where turnover is recognised once customer approval is received on delivery, excluding VAT and trade discounts.

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Other income

Capital-based grants are recognised in profit and loss on a systematic basis over the useful economic life of the asset.

1.4
Tangible fixed assets

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:

Long term leasehold property
Over the lease term or 15 year straight line
Plant and machinery
5 - 15 years straight line
Office equipment
20% straight line
Motor vehicles
20% reducing balance

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.

IVOR SEARLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
1
Accounting policies
(Continued)
- 12 -
1.5
Impairment of fixed assets

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.

1.6
Stocks

Stock is valued at the lower of cost and net realisable value on the basis of direct cost plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of short-term work in progress.

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.

1.7
Cash and cash equivalents

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.

1.8
Financial instruments

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.

IVOR SEARLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
1
Accounting policies
(Continued)
- 13 -
Basic financial assets

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

Other financial assets 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.

Impairment of financial assets

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.

Derecognition of financial assets

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.

Classification of financial liabilities

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

Basic financial liabilities, including creditors are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts 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.

IVOR SEARLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities

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 s ubsequently 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 th r ough 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.

Derecognition of financial liabilities

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

1.9
Equity instruments

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.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

IVOR SEARLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
1
Accounting policies
(Continued)
- 15 -
1.11
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 i s 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.

1.12
Employee benefits

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.

1.13
Retirement benefits

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

1.14
Leases
As lessee

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 lease s asset are consumed.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.16

Provisions for liabilities

Warranty provisions

Certain products carry guarantees and terms of satisfactory performance for varying periods subsequent to their purchase by customers. Provision is made for the estimated costs of honouring unexpected warranties.

Deposit provisions

Certain products carry formal terms that on fulfilment of a condition an element of the sale value will be refunded. Provision is made for the estimated costs of honouring such refunds where the sale but not the condition is complete prior to the year end.

IVOR SEARLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 16 -
2
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 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.

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:

Provisions

Included within provisions are the Surcharge (Deposits) Provision and the Warranty Claim Provision.

Surcharge (Deposits) Provision

The Surcharge (Deposits) Provision is made for deposits received for old engines returned by customers, with the deposit then refunded to the customer in exchange. Management estimate the current year provision based upon prior year actual returns.

Warranty Claim Provision

The company provides warranties on products sold and the provision represents the future expected costs to be incurred in fulfilling these warranties on products sold before the year end with unexpired warranty. The provision is based upon a number of factors including the number of products sold and the historical cost of providing such warranties.

Due to the nature of the above two provisions the amount of cost incurred may differ from the provision made at the year end.

The amount of provision at the year end is set out in note 17 to the financial statements.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2025
2024
£
£
Turnover analysed by class of business
Remanufacturing of engines, cylinder heads, gearboxes and turbos
21,067,400
19,708,131
2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
17,335,871
16,465,863
Export sales (Europe)
3,731,529
3,242,268
21,067,400
19,708,131
IVOR SEARLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
3
Turnover and other revenue
(Continued)
- 17 -
2025
2024
£
£
Other revenue
Interest income
9,553
9,289
4
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
16,698
37,580
Depreciation of tangible fixed assets
219,830
199,432
(Profit)/loss on disposal of tangible fixed assets
(154)
200
Operating lease charges
210,000
240,351
5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
22,260
21,000
6
Employees

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

2025
2024
Number
Number
Production
130
128
Office administration
6
6
Directors
3
3
Total
139
137

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
4,798,681
4,496,583
Social security costs
467,472
404,158
Pension costs
212,890
368,501
5,479,043
5,269,242
IVOR SEARLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 18 -
7
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
176,305
168,703
Company pension contributions to defined contribution schemes
98,846
209,987
275,151
378,690

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2024 - 3).

8
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
9,553
9,289
2025
2024
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
9,553
9,289
9
Interest payable and similar expenses
2025
2024
£
£
Other finance costs:
Other interest
100,000
100,000
10
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
901,327
703,069
Adjustments in respect of prior periods
(5,836)
-
0
Total current tax
895,491
703,069
Deferred tax
Origination and reversal of timing differences
(9,009)
(218)
Total tax charge
886,482
702,851
IVOR SEARLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
10
Taxation
(Continued)
- 19 -

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:

2025
2024
£
£
Profit before taxation
3,536,860
2,766,361
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
884,215
691,590
Tax effect of expenses that are not deductible in determining taxable profit
143
2,036
Permanent capital allowances in excess of depreciation
9,659
9,269
Under/(over) provided in prior years
(5,836)
(44)
Deferred tax adjustments in respect of prior years
(1,699)
-
0
Taxation charge for the year
886,482
702,851
11
Dividends
2025
2024
£
£
Final paid
585,200
151,400
12
Tangible fixed assets
Long term leasehold property
Plant and machinery
Office equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 June 2024
1,470,612
1,587,346
150,123
47,695
3,255,776
Additions
-
0
119,628
31,857
8,542
160,027
Disposals
-
0
(2,250)
-
0
(8,450)
(10,700)
At 31 May 2025
1,470,612
1,704,724
181,980
47,787
3,405,103
Depreciation and impairment
At 1 June 2024
1,083,310
727,138
89,237
36,305
1,935,990
Depreciation charged in the year
74,067
122,398
20,538
2,827
219,830
Eliminated in respect of disposals
-
0
(1,050)
-
0
(8,304)
(9,354)
At 31 May 2025
1,157,377
848,486
109,775
30,828
2,146,466
Carrying amount
At 31 May 2025
313,235
856,238
72,205
16,959
1,258,637
At 31 May 2024
387,302
860,208
60,886
11,390
1,319,786
IVOR SEARLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 20 -
13
Stocks
2025
2024
£
£
Raw materials and consumables
2,539,643
2,252,738
Work in progress
187,763
116,820
Finished goods and goods for resale
702,328
664,317
3,429,734
3,033,875
14
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
3,785,364
3,950,425
Corporation tax recoverable
5,770
-
0
Prepayments and accrued income
201,515
183,337
3,992,649
4,133,762

15
Creditors: amounts falling due within one year
2025
2024
£
£
Trade creditors
1,800,050
1,707,667
Corporation tax
344,536
343,275
Other taxation and social security
530,180
488,872
Other creditors
1,000,000
1,000,000
Accruals and deferred income
462,342
382,664
4,137,108
3,922,478

16
Creditors: amounts falling due after more than one year
2025
2024
Notes
£
£
Deferred income
19
36,919
41,613
17
Provisions for liabilities
2025
2024
£
£
Surcharge and warranty provision
1,105,344
1,184,879
IVOR SEARLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
17
Provisions for liabilities
(Continued)
- 21 -
Movements on provisions:
Surcharge and warranty provision
£
At 1 June 2024
1,184,879
Utilisation of provision
(79,535)
At 31 May 2025
1,105,344
18
Deferred taxation

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

Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances
249,329
253,256
Other short term timing differences
(6,907)
(1,825)
242,422
251,431
2025
Movements in the year:
£
Liability at 1 June 2024
251,431
Credit to profit or loss
(9,009)
Liability at 31 May 2025
242,422

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.

19
Deferred income
2025
2024
£
£
Other deferred income
36,919
41,613
IVOR SEARLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 22 -
20
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
212,890
368,501

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.

21
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary of 25p each
20,000
20,000
5,000
5,000
B Ordinary of 25p each
50,000
50,000
12,500
12,500
70,000
70,000
17,500
17,500

The A ordinary shares are non redeemable and hold (a) voting rights of 19 per share. (b) rights to participate in distributions for that class of share and (c) on a return of capital, holders of the A ordinary shares shall be entitled to 95% of such return.

The B ordinary shares are non redeemable and hold (a) voting rights of 1 per share. (b) rights to participate in distributions for that class of share and (c) on a return of capital, holders of the B ordinary shares shall be entitled to 5% of such return.

22
Operating lease commitments
As lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2025
2024
£
£
Within 1 year
230,577
234,348
Years 2-5
414,041
570,778
After 5 years
487,955
552,500
1,132,573
1,357,626
IVOR SEARLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 23 -
23
Related party transactions

During the year the company paid rent totalling £72,500 (2024 - £72,500) to Mrs J Searle for the use of the premises and adjacent land, and £32,500 (2024 - £32,500) to the Ivor Searle Pension Scheme for the use of additional premises.

At the year end, the company owed £500,000 (2024 - £500,000) to a director/shareholder in respect of their directors loan account. The maximum amount outstanding during the year was £500,000 (2024 - £500,000). The loan bears interest at 10% and is repayable on demand. The interest paid on this loan for the year is £50,000 (2024 - £50,000).

At the year end, the company owed £500,000 (2024 - £500,000) to a shareholder. The maximum amount outstanding during the year was £500,000 (2024 - £500,000). The loan bears interest at 10% and is repayable on demand. The interest paid on this loan for the year is £50,000 (2024 - £50,000).

24
Ultimate controlling party

The ultimate controlling party of the company is Katie Hemmingfield.

25
Cash generated from operations
2025
2024
£
£
Profit after taxation
2,650,378
2,063,510
Adjustments for:
Taxation charged
886,482
702,851
Finance costs
100,000
100,000
Investment income
(9,553)
(9,289)
(Gain)/loss on disposal of tangible fixed assets
(154)
200
Depreciation and impairment of tangible fixed assets
219,830
199,432
(Decrease)/increase in provisions
(79,535)
173,579
Movements in working capital:
Increase in stocks
(395,859)
(1,163,207)
Decrease/(increase) in debtors
146,883
(751,083)
Increase in creditors
213,369
469,230
Decrease in deferred income
(4,694)
(4,694)
Cash generated from operations
3,727,147
1,780,529
26
Analysis of changes in net funds
1 June 2024
Cash flows
31 May 2025
£
£
£
Cash at bank and in hand
942,683
1,992,973
2,935,656
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