REGISTERED NUMBER: 03300301 (England and Wales)

Specialist Engineering Services Limited

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31st July 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

D Hyland

E Shrimpton

REGISTERED OFFICE:

SES House

Unit 3, Balby Court

Balby Carr Bank

Doncaster

DN4 8DE

REGISTERED NUMBER:

03300301 (England and Wales)

AUDITORS:

Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire HU2 8BA

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

PRINCIPAL ACTIVITY

The principal activities of the company in the year under review were those of a contractor to the rail industry.

REVIEW OF BUSINESS

The directors have reviewed the company's performance for the year and consider the results to be in line with expectations and with the forecasted Business Plan for the year. Whilst Turnover and Gross Profit have increased, Operating Profit has decreased when compared to the previous year. The is mainly due to increased depreciation costs as the new plant and equipment in which the company has invested comes into operation. As such EBITDA % remains approximately the same over the periods at circa 14%. The company's Rail Business Units continue to perform well under their current Framework Agreements. The company has also increased its profitable turnover in its Special Projects Business Unit and has a couple of projects that will continue well into the current financial period.

PRINCIPAL RISKS AND UNCERTAINTIES

The company recognises the risks associated in relation to the current economic climate and whist it continues to operate its principal activities in the transport sector it is not without client budgetary pressures and cost increases in the supply of internal and external resources.

The company recognises that at the level at which it is placed in the rail industry there is inherent uncertainty in terms of turnover levels as it operates through framework contracts with no guaranteed volumes.

The company considers that it needs to maintain its strategy of trying to enhance its resources to maintain and improve its reputation in the marketplace to enable it to differentiate itself from the competition to ensure it secures suitable and sustainable turnover. As such the directors believe the company is well placed to continue to meet its future challenges and opportunities.

DEVELOPMENT AND PERFORMANCE

The strategy is to continue to develop the company to meet its own expectations. The performance expectations are to secure and execute profitable turnover in all its operating sectors to continue to add shareholder value. The company continues with its programme of recertification of its plant assets to enable it to meet the demand in this Railway Control Period (CP7).

The company is aware of its social responsibilities and has set objectives and targets to reduce the company's carbon footprint and to demonstrate its commitment to Sustainability and Continual Improvement to enhance the knowledge, skills and training of staff.

The company recognises its staff as a key resource and looks to develop them through supervision, training, education and communication to improve performance, both for the individuals and the Company as a whole.

KEY PERFORMANCE INDICATORS

The company continues to monitor its risk profile and its KPIs to both mitigate risks and identify new opportunities as they arise. As well as the financial KPIs that the company monitors in terms of its development and financial performance the company also monitors other KPIs to ensure it is performing to the satisfaction of the directors. These are incorporated into the company's externally audited Integrated Management System which includes Safety, Quality and Environmental Objectives and Targets (ISO 9001, ISO 14001 and ISO 45001). The company, and its customers, takes Health and Safety very seriously and maintaining its good accident statistics remains a key target for the company. Maintenance of its reputation in its marketplace is also very important to the directors and the company monitors feedback to gauge customer satisfaction levels.

ON BEHALF OF THE BOARD:

D Hyland - Director

28th November 2025

The directors present their report with the financial statements of the company for the year ended 31st July 2025.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st August 2024 to the date of this report.

D Hyland

E Shrimpton

Other changes in directors holding office are as follows:

S Wrennall ceased to be a director after 31st July 2025 but prior to the date of this report.

EMPLOYEES

It is our policy that people with disabilities have full and fair consideration for all vacancies. We are committed to interviewing those people with disabilities who fulfil the minimum criteria and endeavour to retain employees in the workforce if they become disabled during employment, we will retrain and adjust their environment where possible.

Employees are kept well informed of the performance and objective of the company through personal briefings, regular meetings, email and the company website.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 then apply them consistently;

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

-	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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Smailes Goldie, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

D Hyland - Director

28th November 2025

Opinion

We have audited the financial statements of Specialist Engineering Services Limited (the 'company') for the year ended 31st July 2025 which comprise the Income Statement, 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 31st July 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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 the audit:

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

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

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 identified material misstatements in the Strategic Report or the Report of the Directors.

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; or

-	the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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.

Auditors' 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 a Report of the Auditors 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, tax legislation, data protection, anti-bribery, employment, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

-

performed analytical procedures to identify any unusual or unexpected relationships;

-

tested journal entries to identify unusual transactions;

-

assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

-

investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

-

agreeing financial statement disclosures to underlying supporting documentation;

-

reading the minutes of meetings of those charged with governance;

-

enquiring of management as to actual and potential litigation and claims; and

-

reviewing correspondence with relevant regulators and the company's legal advisors.

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our 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 a Report of the Auditors 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.

Peter Dearing BSc FCCA (Senior Statutory Auditor)

for and on behalf of Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire HU2 8BA

28th November 2025

TURNOVER

10,882,283

10,077,213

Cost of sales

6,618,803

6,317,257

GROSS PROFIT

4,263,480

3,759,956

Administrative expenses

3,363,337

2,765,343

900,143

994,613

Other operating income

22,904

30,000

OPERATING PROFIT

923,047

1,024,613

Interest payable and similar expenses

137,134

86,109

PROFIT BEFORE TAXATION

785,913

938,504

Tax on profit

4

208,955

201,066

PROFIT FOR THE FINANCIAL YEAR

576,958

737,438

FIXED ASSETS

Tangible assets

5

2,579,404

1,859,543

CURRENT ASSETS

Stocks

35,159

35,159

Debtors

6

1,282,226

1,425,720

Cash at bank and in hand

1,791,827

1,756,996

3,109,212

3,217,875

CREDITORS

Amounts falling due within one year

7

1,876,245

1,884,880

NET CURRENT ASSETS

1,232,967

1,332,995

TOTAL ASSETS LESS CURRENT LIABILITIES

3,812,371

3,192,538

CREDITORS

Amounts falling due after more than one year

8

(1,316,686

)

(942,836

)

PROVISIONS FOR LIABILITIES

(662,757

)

(453,802

)

NET ASSETS

1,832,928

1,795,900

CAPITAL AND RESERVES

Called up share capital

11

15,400

15,400

Retained earnings

12

1,817,528

1,780,500

SHAREHOLDERS' FUNDS

1,832,928

1,795,900

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

The financial statements were approved by the Board of Directors and authorised for issue on 28th November 2025 and were signed on its behalf by:

D Hyland - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st August 2023

15,400

1,474,062

1,489,462

Changes in equity

Dividends

-

(431,000

)

(431,000

)

Total comprehensive income

-

737,438

737,438

Balance at 31st July 2024

15,400

1,780,500

1,795,900

Changes in equity

Dividends

-

(539,930

)

(539,930

)

Total comprehensive income

-

576,958

576,958

Balance at 31st July 2025

15,400

1,817,528

1,832,928

1.	STATUTORY INFORMATION

Specialist Engineering Services Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Plant and machinery

- 12.5% - 50% on cost

Office equipment

- 25% on cost

Motor vehicles

- 25% - 50% on cost

Stocks and work in progress

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

Stock is stated at the lower of cost and net realisable value.

In the case of raw materials and consumable stores, cost means purchase price including transport and handling costs, less trade discounts, calculated on a first in first out basis.

Net realisable value means estimated selling price less all further costs to completion al costs to be incurred in marketing, selling and distribution.

Work in progress included in debtors is stated at net realisable value. Cumulative turnover (i.e the total turnover recorded in respect of the contract in profit and loss accounts of all accounting periods since inception of the contract) is compared with total payments on account. If turnover exceeds payments an "amount recoverable on contracts" is established and separately disclosed within debtors. If payments on account are greater than turnover to date, the excess is classified within creditors.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Current tax and deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets acquired under finance leases are capitalised and depreciated over the shorter of the lease term and the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligations, net of future finance charges, are included in creditors.

Where goods are sold using finance leases, the entity recognises turnover from the sale of goods and the rights to receive future lease payments as a debtor. Minimum lease payments are apportioned between finance income and the reduction of the lease debtor with finance income allocated so as to produce a constant periodic rate of interest on the net investment in the finance lease.

Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Dilapidations

Provisions for dilapidations to leased properties are made in anticipation of future costs in line with lease obligations.

3.	EMPLOYEES AND DIRECTORS

The average monthly number of employees during the year was as follows:

2025

2024

Administration

27

26

Labour

2

4

29

30

4.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

Under/(Over) provided in

previous year

-

(26,887

)

Deferred tax

208,955

227,953

Tax on profit

208,955

201,066

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

785,913

938,504

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

196,478

234,626

Effects of:

Expenses not deductible for tax purposes

12,477

3,027

Income not taxable for tax purposes

-

(9,700

)

Adjustments to tax charge in respect of previous periods

-

(26,887

)

Total tax charge

208,955

201,066

5.	TANGIBLE FIXED ASSETS

Plant and

Office

Motor

machinery

equipment

vehicles

Totals

£

£

£

£

COST

At 1st August 2024

3,385,170

337,182

658,203

4,380,555

Additions

1,168,094

11,581

166,908

1,346,583

Disposals

-

-

(82,571

)

(82,571

)

At 31st July 2025

4,553,264

348,763

742,540

5,644,567

DEPRECIATION

At 1st August 2024

1,847,050

326,257

347,705

2,521,012

Charge for year

447,376

6,708

143,885

597,969

Eliminated on disposal

-

-

(53,818

)

(53,818

)

At 31st July 2025

2,294,426

332,965

437,772

3,065,163

NET BOOK VALUE

At 31st July 2025

2,258,838

15,798

304,768

2,579,404

At 31st July 2024

1,538,120

10,925

310,498

1,859,543

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

Plant and

Motor

machinery

vehicles

Totals

£

£

£

COST

At 1st August 2024

1,082,454

358,688

1,441,142

Additions

1,011,840

139,637

1,151,477

Disposals

-

(82,571

)

(82,571

)

Transfer to ownership

(74,000

)

-

(74,000

)

At 31st July 2025

2,020,294

415,754

2,436,048

DEPRECIATION

At 1st August 2024

133,299

167,766

301,065

Charge for year

258,020

97,006

355,026

Eliminated on disposal

-

(53,924

)

(53,924

)

Transfer to ownership

(54,824

)

-

(54,824

)

At 31st July 2025

336,495

210,848

547,343

NET BOOK VALUE

At 31st July 2025

1,683,799

204,906

1,888,705

At 31st July 2024

949,155

190,922

1,140,077

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

733,248

969,172

Amounts recoverable on contracts

385,364

219,792

Other debtors

10,246

112,491

Prepayments and accrued income

153,368

124,265

1,282,226

1,425,720

Included within trade debtors are balances totalling £nil (2024 - £448,515) that are subject to factoring arrangements. The trade debtor balances do not qualify for derecognition on the basis that the risk/ reward is retained by the company. The associated liability recognised in creditors amounts to £nil (2024 - £nil).

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Bank loans and overdrafts (see note 9)

6,163

70,519

Hire purchase contracts (see note 10)

554,214

361,619

Trade creditors

255,819

445,856

Corporation tax

1,486

1,486

Social security and other taxes

280,693

353,422

Other creditors

138,920

183,499

Directors' current accounts

45,289

54,521

Accruals and deferred income

593,661

413,958

1,876,245

1,884,880

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2025

2024

£

£

Bank loans (see note 9)

-

6,163

Hire purchase contracts (see note 10)

1,316,686

936,673

1,316,686

942,836

9.

LOANS

An analysis of the maturity of loans is given below:

2025

2024

£

£

Amounts falling due within one year or on demand:

Bank loans

6,163

70,519

Amounts falling due between one and two years:

Bank loans - 1-2 years

-

6,163

10.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase

contracts

2025

2024

£

£

Gross obligations repayable:

Within one year

674,200

448,699

Between one and five years

1,452,105

1,042,318

2,126,305

1,491,017

Finance charges repayable:

Within one year

119,986

87,080

Between one and five years

135,419

105,645

255,405

192,725

Net obligations repayable:

Within one year

554,214

361,619

Between one and five years

1,316,686

936,673

1,870,900

1,298,292

Non-cancellable

operating leases

2025

2024

£

£

Within one year

79,756

111,006

Between one and five years

104,899

184,655

184,655

295,661

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2025

2024

value:

£

£

15,400

Ordinary

£1

15,400

15,400

12.

RESERVES

Retained

earnings

£

At 1st August 2024

1,780,500

Profit for the year

576,958

Dividends

(539,930

)

At 31st July 2025

1,817,528

13.	CAPITAL COMMITMENTS

2025

2024

£

£

Contracted but not provided for in the

financial statements

-

784,700

14.	RELATED PARTY DISCLOSURES

Included in debtors are amounts due from related parties of £10,246 (2024 £112,216).

Included in creditors are amounts due to directors of £45,289 (2024 £54,521).

15.	ULTIMATE CONTROLLING PARTY

The company was controlled throughout the period by Engineering Services Group Limited its ultimate parent company.

Engineering Services Group Limited is controlled by Mr W T Shinkins by virtue of his shareholding in that company.