ACCOUNTS - Final Accounts preparation

An analysis of turnover by class of business is as follows:

Registered number: 06522464

T & G ENGINEERING HOLDINGS LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

TWP ACCOUNTING LLP

Chartered Accountants & Statutory Auditors

The Old Rectory

Church Street

Weybridge

Surrey

KT13 8DE


T & G ENGINEERING HOLDINGS LIMITED

COMPANY INFORMATION

Directors	A J Smyth
	T C Smyth


Company secretary	M G Simpson


Registered number	06522464


Registered office	Unit 14 Camphill Industrial Estate
	Camphill Road
	West Byfleet
	Surrey
	KT14 6EW


Independent auditor	TWP Accounting LLP
	Chartered Accountants & Statutory Auditors
	The Old Rectory
	Church Street
	Weybridge
	Surrey
	KT13 8DE


T & G ENGINEERING HOLDINGS LIMITED

CONTENTS

	Page
Group Strategic Report	1
Directors' Report	2 - 3
Independent Auditor's Report	4 - 7
Consolidated Statement of Comprehensive Income	8
Consolidated Balance Sheet	9
Company Balance Sheet	10 - 11
Consolidated Statement of Changes in Equity	12
Company Statement of Changes in Equity	13
Consolidated Statement of Cash Flows	14 - 15
Consolidated Analysis of Net Debt	16
Notes to the Financial Statements	17 - 35


T & G ENGINEERING HOLDINGS LIMITED

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 MAY 2025

Introduction

The strategy of the Group, led by the directors, is to increase profits by expansion of the Group’s customers and product base.

Principal activities and business review

The principal activity of the Group during the period was subcontract precision engineering services. Turnover for the year ended 31 May 2025, was £6,321,885 compared with £6,973,315 for the year ended 31 May 2024.

Reflecting the nature of the business, turnover has decreased by 9% from the prior year. The turnover and profit on ordinary activities before tax achieved for the period being £222,318 for the year, compared with £629,768 for the previous year.

The Group has more than adequate financial resources to take advantage of any business opportunities that arise. The balance sheet discloses a strong financial position as at 31 May 2025 with cash reserves of £4,926,107. Net assets have decreased to £9,744,213 in May 2025 from £9,772,564 in May 2024.

Principal risks and uncertainties

The main risk to the Group is the potential for an economic downturn resulting in a reduction in the acquisition of precision components in the UK and around the world. The sources of such risk is political uncertainty. Additional risks include currency fluctuations which could lead to our foreign customers facing volatile pricing through fluctuating currencies. While it is extremely difficult to mitigate against political uncertainty, we have actively engaged in the pursuit of new markets for our products, in different market sectors and in different geographical territories, to mitigate the market uncertainties. This has been done through continual high quality and working in niche markets.

Another large factor on manufacturing is ageing workforces and lack of skill entering the industry.

T&G gains 80-90% of its work by recommendation and word of mouth. We simply do the work most other companies choose not to or simply cannot do.

Financial key performance indicators

Gross profit percentage
The change in gross profit percentage due to an increase in the costs of labour, raw materials and mix / downturn of work during the current year.

Future developments

New product development is a focus for the Group and financial and human resource continues to be applied thereto. The new products are being developed to address substantial market opportunities in the UK, as an alternative to imports, and indeed in international markets as well. The various products will extend the Group’s capabilities as well as leveraging existing capabilities to access new markets.

This report was approved by the board on 10 December 2025 and signed on its behalf.

A J Smyth

Director

Page 1


T & G ENGINEERING HOLDINGS LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 MAY 2025

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

Principal activity

The principal activity of the group is subcontract machining precision, producing high mechanical parts for machines made bespoke and to order for a wide range of clients and industries.

Results and dividends

The profit for the year, after taxation, amounted to £173,649 (2024 as restated - £609,295).

During the year the company paid dividends of £202,000 (2024 - £151,000).

Directors

The directors who served during the year were:

A J Smyth

T C Smyth

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.

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

∙select suitable accounting policies for the Group's financial statements and then apply them consistently;

∙make judgments 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 Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.

Page 2


T & G ENGINEERING HOLDINGS LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2025

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditor

The auditor, TWP Accounting LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 10 December 2025 and signed on its behalf.

A J Smyth

Director

Page 3


T & G ENGINEERING HOLDINGS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF T & G ENGINEERING HOLDINGS LIMITED

Opinion

We have audited the financial statements of T & G ENGINEERING HOLDINGS LIMITED (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 May 2025, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Analysis of Net Debt, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, 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 Group's and of the Parent Company's affairs as at 31 May 2025 and of the Group's 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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the Parent 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.

Page 4


T & G ENGINEERING HOLDINGS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF T & G ENGINEERING HOLDINGS LIMITED (CONTINUED)

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.

Opinion 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 Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

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

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 by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or

∙the Parent Company 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' Responsibilities Statement set out on page 2, 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 Group's and the Parent 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 Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.

Page 5


T & G ENGINEERING HOLDINGS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF T & G ENGINEERING HOLDINGS LIMITED (CONTINUED)

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 Group financial statements.

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:

∙Obtain an understanding of the policies and procedures management has in place to detect and prevent fraud and non-compliance with laws and regulations.

∙Enquire of management any cases of actual or suspected fraud and non-compliance with laws and regulations.

∙Enquire of management and those charged with gobernance around actual and potential litigation and claims.

∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

∙Assess the key risk areas within the financial statements which are susceptible to fraud or error and design our audit approach thereon.

∙Perform substantive tests on a sample of transactions throughout the financial statements to ensure that no material errors have been identified.

∙Perform cut off tests on a sample of transactions to ensure income has been accounted for in the correct period.

∙Review of after year end information to ensure expenditure have been accounted for in the correct period.

∙Perform analytical review procedures to identify any irregularities and investigation thereon.

∙Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

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 Auditor's Report.

Page 6


T & G ENGINEERING HOLDINGS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF T & G ENGINEERING HOLDINGS LIMITED (CONTINUED)

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 an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Philip Munk FCA FCCA (Senior Statutory Auditor)

for and on behalf of

TWP Accounting LLP

Chartered Accountants & Statutory Auditors

The Old Rectory

Church Street

Weybridge

Surrey

KT13 8DE

10 December 2025

Page 7


T & G ENGINEERING HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MAY 2025

	2025	As restated 2024
Note	£	£


Turnover	4	6,321,885	6,973,315
Cost of sales		(4,166,242)	(3,664,480)
Gross profit		2,155,643	3,308,835
Administrative expenses		(2,005,377)	(2,725,745)
Other operating income		1,449	-
Operating profit	5	151,715	583,090
Interest receivable and similar income	9	72,166	49,938
Interest payable and similar expenses	10	(1,563)	(3,260)
Profit before taxation		222,318	629,768
Tax on profit	11	(48,669)	(20,473)
Profit for the financial year		173,649	609,295

There were no recognised gains and losses for 2025 or 2024 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2025 (2024:£NIL).

The notes on pages 17 to 35 form part of these financial statements.

Page 8


T & G ENGINEERING HOLDINGS LIMITED REGISTERED NUMBER:06522464

CONSOLIDATED BALANCE SHEET

AS AT 31 MAY 2025

		2025		As restated 2024
Note		£		£

Fixed assets
Intangible assets	13		35,250		39,750
Tangible assets	14		1,934,093		1,937,562
Investment property	16		2,045,586		2,031,456
			4,014,929		4,008,768
Current assets
Stocks	17	914,505		908,706
Debtors: amounts falling due within one year	18	1,553,214		1,510,527
Cash at bank and in hand	19	4,926,107		4,942,026
		7,393,826		7,361,259
Creditors: amounts falling due within one year	20	(1,175,284)		(1,101,680)
Net current assets			6,218,542		6,259,579
Total assets less current liabilities			10,233,471		10,268,347
Creditors: amounts falling due after more than one year	21		(50,977)		(53,874)
Provisions for liabilities
Deferred taxation	22	(438,281)		(441,909)
			(438,281)		(441,909)
Net assets			9,744,213		9,772,564

Capital and reserves
Called up share capital	23	1	1
Profit and loss account	24	9,744,212	9,772,563
		9,744,213	9,772,564

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 10 December 2025.

A J Smyth

Director

The notes on pages 17 to 35 form part of these financial statements.

Page 9


T & G ENGINEERING HOLDINGS LIMITED REGISTERED NUMBER:06522464

COMPANY BALANCE SHEET

AS AT 31 MAY 2025

		2025		As restated 2024
Note		£		£

Fixed assets
Intangible assets	13		35,250		39,750
Tangible assets	14		1,700,548		1,662,032
Investments	15		915,962		915,962
Investment property			2,045,586		2,031,456
			4,697,346		4,649,200
Current assets
Debtors: amounts falling due within one year	18	617,680		488,693
Cash at bank and in hand	19	4,220,728		4,295,347
		4,838,408		4,784,040
Creditors: amounts falling due within one year	20	(531,638)		(603,377)
Net current assets			4,306,770		4,180,663
Total assets less current liabilities			9,004,116		8,829,863

Creditors: amounts falling due after more than one year	21		(32,500)		(32,500)
Provisions for liabilities
Deferred taxation	22	(415,695)		(414,604)
			(415,695)		(414,604)
Net assets			8,555,921		8,382,759

Capital and reserves
Called up share capital	23		1		1
Profit and loss account brought forward		8,382,758		7,946,154
Profit for the year		375,162		587,604
Other changes in the profit and loss account		(202,000)		(151,000)
Profit and loss account carried forward			8,555,920		8,382,758
			8,555,921		8,382,759

Page 10


T & G ENGINEERING HOLDINGS LIMITED REGISTERED NUMBER:06522464

COMPANY BALANCE SHEET (CONTINUED)

AS AT 31 MAY 2025

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 10 December 2025.

A J Smyth

Director

The notes on pages 17 to 35 form part of these financial statements.

Page 11


T & G ENGINEERING HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MAY 2025

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 June 2023	1	9,314,268	9,314,269

Profit for the year as restated	-	609,295	609,295
Dividends: Equity capital	-	(151,000)	(151,000)

At 1 June 2024 as restated	1	9,772,563	9,772,564

Profit for the year	-	173,649	173,649
Dividends: Equity capital	-	(202,000)	(202,000)
At 31 May 2025	1	9,744,212	9,744,213

The notes on pages 17 to 35 form part of these financial statements.

Page 12


T & G ENGINEERING HOLDINGS LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MAY 2025

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 June 2023	1	7,946,154	7,946,155

Profit for the year as restated	-	587,604	587,604
Dividends: Equity capital	-	(151,000)	(151,000)

At 1 June 2024 as restated	1	8,382,758	8,382,759

Profit for the year	-	375,162	375,162
Dividends: Equity capital	-	(202,000)	(202,000)
At 31 May 2025	1	8,555,920	8,555,921

The notes on pages 17 to 35 form part of these financial statements.

Page 13


T & G ENGINEERING HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MAY 2025

			2025	As restated 2024
			£	£

Cash flows from operating activities
Profit for the financial year	173,649	609,295
Adjustments for:
Amortisation of intangible assets	4,500	9,430
Depreciation of tangible assets	503,082	564,254
Loss on disposal of tangible assets	(1,761)	(65,604)
Interest paid	1,563	3,260
Interest received	(72,166)	(49,938)
Taxation charge	48,669	20,473
(Increase) in stocks	(5,799)	(120,408)
(Increase)/decrease in debtors	(152,084)	238,871
Increase in creditors	176,867	92,013
Corporation tax payable	(48,669)	(207,862)
Net cash generated from operating activities	627,851	1,093,784

Cash flows from investing activities
Purchase of tangible fixed assets	(509,671)	(189,116)
Proceeds from sale of tangible fixed assets	11,428	69,571
Purchase of investment properties	(14,130)	(75,150)
Interest received	72,166	49,938
HP interest paid	-	(623)
Net cash from investing activities	(440,207)	(145,380)

Page 14


T & G ENGINEERING HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

FOR THE YEAR ENDED 31 MAY 2025

		2025	2024
		£	£


Cash flows from financing activities
Dividends paid	(202,000)	(151,000)
Interest paid	(1,563)	(2,637)
Net cash used in financing activities	(203,563)	(153,637)
Net (decrease)/increase in cash and cash equivalents	(15,919)	794,767
Cash and cash equivalents at beginning of year	4,942,026	4,147,259
Cash and cash equivalents at the end of year	4,926,107	4,942,026

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	4,926,107	4,942,026
	4,926,107	4,942,026

The notes on pages 17 to 35 form part of these financial statements.

Page 15


T & G ENGINEERING HOLDINGS LIMITED

CONSOLIDATED ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 MAY 2025


At 1 June 2024	Cash flows	At 31 May 2025
£	£	£

Cash at bank and in hand	4,942,026	(15,919)	4,926,107
	4,942,026	(15,919)	4,926,107

The notes on pages 17 to 35 form part of these financial statements.

Page 16


T & G ENGINEERING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

1.	General information

The Company is a private company limited by shares and incorporated in England and Wales. The address of its registered office and principal place of business is given in the company information page of these financial statements.

The principal activity of the group is subcontract machining precision, producing high mechanical parts for machines made bespoke and to order for a wide range of clients and industries.

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

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

2.3

Turnover

Revenue from the manufacture and sale of precision engineering components is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Revenue is recognised at the point of delivery, as this is considered to be the point at which the risks and rewards of ownership transfer to the customer.

Page 17


T & G ENGINEERING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

2.Accounting policies (continued)

2.4

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

2.5

Tangible fixed assets

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property	-	over the term of the lease
Plant and machinery	-	straight line over seven years
Motor vehicles	-	straight line over four years
Fixtures and fittings	-	straight line over four years
Office equipment	-	straight line over four years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.6

Investment property

Investment property is carried at fair value determined annually and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

2.7

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 18


T & G ENGINEERING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

2.Accounting policies (continued)

2.8

Stocks

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

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

2.9

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.10

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

2.11

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.12

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.

Grants of a revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.

Page 19


T & G ENGINEERING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

2.Accounting policies (continued)

2.13

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

2.14

Operating leases: the Group as lessor

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight-line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.

2.15

Operating leases: the Group as lessee

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

2.16

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

2.17

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.18

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 20


T & G ENGINEERING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

2.Accounting policies (continued)

2.19

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

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

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

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

∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.20

Financial instruments

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

2.21

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 21


T & G ENGINEERING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Significant judgements and key sources of estimation uncertainty

The directors use judgement in determining the likely recoverable amount of the group's stocks and work in progress in order to ensure that stocks are valued at the lower of cost and net realisable value, and that any expected losses are recognised in full in the period they are incurred.

Due to the nature of the Group's business, it is possible to use quoted prices or a recent sales price in order to determine the expected realisable value. Therefore the key area of judgement is the likelihood of stock or WIP items being sold on to the end customer on a future date at the expected price.

Attributable to the principal activity	6,260,124	6,911,554
Rent received	61,761	61,761
	6,321,885	6,973,315

Analysis of turnover by country of destination:

					2025	2024
					£	£

United Kingdom	5,886,135	6,327,886
Rest of the world	435,750	645,429
	6,321,885	6,973,315

Exchange differences

(1,418)

555

Page 22


T & G ENGINEERING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

Fees payable to the Company's auditor in respect of:
The auditing of accounts of associates of the Company	30,500	29,050
All non-audit services not included above	16,000	15,250

7.	Employees
	Staff costs, including directors' remuneration, were as follows:

Group	Group	Company	Company
2025	2024	2025	2024
£	£	£	£


Wages and salaries	2,518,502	2,534,305	485,482	434,153
Social security costs	294,810	267,197	65,958	59,759
Cost of defined contribution scheme	51,576	51,573	5,838	4,211
	2,864,888	2,853,075	557,278	498,123

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

	Group	Group	Company	Company
	2025	2024	2025	2024
	No.	No.	No.	No.

Administrative staff	10	9	10	9
Direct labour	50	53	-	-

	60	62	10	9

8.	Directors' remuneration
		2025	2024
		£	£

Directors' emoluments	123,225	118,038
	123,225	118,038

The Group made no contributions to defined contribution pension schemes in respect of directors services during the current or previous year.

Page 23


T & G ENGINEERING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

9.	Interest receivable
		2025	2024
		£	£

	Other interest receivable	72,166	49,938
		72,166	49,938

10.	Interest payable and similar expenses
		2025	2024
		£	£

Other loan interest payable	1,563	2,637
Finance leases and hire purchase contracts	-	623
	1,563	3,260

Corporation tax
Current tax on profits for the year	41,125	194,145
Adjustments in respect of previous periods	11,172	(134,535)
	52,297	59,610

Total current tax	52,297	59,610

Deferred tax
Origination and reversal of timing differences	(3,628)	(39,137)
Total deferred tax	(3,628)	(39,137)


	Tax on profit	48,669	20,473

Page 24


T & G ENGINEERING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

11.Taxation (continued)

Profit on ordinary activities before tax

222,318

629,768

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)	55,580	157,442
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	1,211	(11,512)
Capital allowances for year in excess of depreciation	(11,022)	63,290
Utilisation of tax losses	-	(7,626)
Adjustments to tax charge in respect of prior periods	11,168	(134,535)
Short-term timing difference leading to an increase (decrease) in taxation	(3,628)	(39,137)
Other differences in relation to the different tax rates	(2,155)	(7,449)
Adjustments in relation to pension creditor movements	(2,485)	-
Total tax charge for the year	48,669	20,473

12.	Dividends
		2025	2024
		£	£

	Dividends paid to owners	202,000	151,000
		202,000	151,000

Page 25


T & G ENGINEERING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

13.	Intangible assets
	Group

	Trademarks	Goodwill	Total
	£	£	£
Cost
At 1 June 2024	20,000	325,000	345,000
At 31 May 2025	20,000	325,000	345,000
Amortisation
At 1 June 2024	20,000	285,250	305,250
Charge for the year on owned assets	-	4,500	4,500
At 31 May 2025	20,000	289,750	309,750
Net book value
At 31 May 2025	-	35,250	35,250
At 31 May 2024	-	39,750	39,750

Page 26


T & G ENGINEERING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

13.Intangible assets (continued)

	Company

		Goodwill
		£
	Cost
	At 1 June 2024	45,000
	At 31 May 2025	45,000
	Amortisation
	At 1 June 2024	5,250
	Charge for the year	4,500
	At 31 May 2025	9,750
	Net book value
	At 31 May 2025	35,250
	At 31 May 2024	39,750

Page 27


T & G ENGINEERING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

14.	Tangible fixed assets
	Group

	Long-term leasehold property	Plant and machinery	Motor vehicles	Fixtures and fittings	Office equipment	Total
	£	£	£	£	£	£
Cost or valuation
At 1 June 2024	871,942	9,206,030	329,049	2,963	36,138	10,446,122
Additions	-	450,190	43,630	-	15,851	509,671
Disposals	-	(158,902)	(34,392)	(2,963)	(3,462)	(199,719)
At 31 May 2025	871,942	9,497,318	338,287	-	48,527	10,756,074
Depreciation
At 1 June 2024	603,503	7,599,331	283,249	2,963	19,514	8,508,560
Charge for the year on owned assets	35,816	432,264	9,630	-	6,833	484,543
Charge for the year on financed assets	-	-	18,930	-	-	18,930
Disposals	-	(158,902)	(24,725)	(2,963)	(3,462)	(190,052)
At 31 May 2025	639,319	7,872,693	287,084	-	22,885	8,821,981
Net book value
At 31 May 2025	232,623	1,624,625	51,203	-	25,642	1,934,093
At 31 May 2024	268,439	1,606,699	45,800	-	16,624	1,937,562

Page 28


T & G ENGINEERING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

14.Tangible fixed assets (continued)

	Company

	Plant and machinery	Motor vehicles	Office equipment	Total
	£	£	£	£
Cost or valuation
At 1 June 2024	4,477,304	329,049	32,676	4,839,029
Additions	450,190	43,630	15,851	509,671
Disposals	-	(34,392)	-	(34,392)
At 31 May 2025	4,927,494	338,287	48,527	5,314,308
Depreciation
At 1 June 2024	2,877,696	283,249	16,052	3,176,997
Charge for the year on owned assets	426,095	9,630	6,833	442,558
Charge for the year on financed assets	-	18,930	-	18,930
Disposals	-	(24,725)	-	(24,725)
At 31 May 2025	3,303,791	287,084	22,885	3,613,760
Net book value
At 31 May 2025	1,623,703	51,203	25,642	1,700,548
At 31 May 2024	1,599,608	45,800	16,624	1,662,032

Page 29


T & G ENGINEERING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

15.	Fixed asset investments

	Company

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 June 2024	915,962
	At 31 May 2025	915,962

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Class of shares	Holding

T. & G. Engineering Co. Limited	Ordinary	100%
Douglas Precision Engineering Co. Limited	Ordinary	100%
Williams & Co Precision Limited	Ordinary	100%

The registered address of each subsidiary entity is the same as that of the parent company, which is disclosed on the Company Information page.

All subsidiaries are included in these consolidated financial statement.

Cawkwell Precision Engineering Limited, a wholly owned subsidiary of T & G Engineering Holdings Limited, was formally dissolved on 27 August 2024. The financial results of this entity have been incorporated into these consolidated financial statements up to the date of dissolution.

Page 30


T & G ENGINEERING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

16.	Investment property
	Group

		Freehold investment property
		£
	Valuation
	At 1 June 2024	2,031,456
	Additions at cost	14,130
	At 31 May 2025	2,045,586

The property was purchased on 30 May 2017 at its open market value. Based on observation of local property market trends, it is the directors' belief that the fair value of the property has not materially changed since the purchase date. No independent valuation has been obtained for the property as at 31 May 2025.

	Company

		Freehold investment property
		£
	Valuation
	At 1 June 2024	2,031,456
	Additions at cost	14,130
	At 31 May 2025	2,045,586

17.	Stocks
		Group	Group
		2025	2024
		£	£

Raw materials and consumables	136,987	104,180
Work in progress (goods to be sold)	748,803	784,435
Finished goods and goods for resale	28,715	20,091
	914,505	908,706

Page 31


T & G ENGINEERING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

18.

Debtors

Group	Group	Company	Company
2025	2024	2025	2024
£	£	£	£


Trade debtors	1,123,843	1,081,654	4,288	1,027
Amounts owed by group undertakings	-	-	470,585	465,814
Other debtors	307,759	293,514	122,451	469
Prepayments and accrued income	121,612	135,359	20,356	21,383
	1,553,214	1,510,527	617,680	488,693

19.	Cash and cash equivalents
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Cash at bank and in hand	4,926,107	4,942,026	4,220,728	4,295,347
	4,926,107	4,942,026	4,220,728	4,295,347

20.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Trade creditors	664,440	452,674	252,214	64,623
Amounts owed to group undertakings	-	-	1,856	1,679
Other taxation and social security	219,965	231,785	56,491	194,243
Other creditors	208,166	164,259	179,032	135,083
Accruals and deferred income	82,713	252,962	42,045	207,749
	1,175,284	1,101,680	531,638	603,377

Page 32


T & G ENGINEERING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

21.	Creditors: Amounts falling due after more than one year
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Other creditors	32,500	32,500	32,500	32,500
Accruals and deferred income	18,477	21,374	-	-
	50,977	53,874	32,500	32,500

The Group have creditors due after 5 years amounting to £13,601 (2024: £15,155).

The Company have no creditors due after 5 years (2024: £nil).

22.	Deferred taxation
	Group

		2025
		£

	At beginning of year	(441,909)
	Charged to profit or loss	3,853
	Utilised in year	(225)
	At end of year	(438,281)

Company

		2025
		£

	At beginning of year	(414,604)
	Charged to profit or loss	(1,091)
	At end of year	(415,695)

Group	Group	Company	Company
2025	2024	2025	2024
£	£	£	£

	Accelerated capital allowances	(438,281)	(441,909)	(415,695)	(414,604)
		(438,281)	(441,909)	(415,695)	(414,604)

Page 33


T & G ENGINEERING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

23.	Share capital
		2025	2024
		£	£

Allotted, called up and fully paid

1 (2024 - 1) Ordinary share of £1.00	1	1

24.

Reserves

Profit and loss account

The profit and loss account represents cumulative profits and losses, net of dividends and other adjustments.

25.	Prior year adjustment

A prior year adjustment has been made to account for previously omitted depreciation on tangible fixed assets, plant and machinery. This adjustment reflects a depreciation charge that had not been recognised in earlier financial statements. As a result, the opening reserves as at 1 June 2024 have been reduced by £72,638. The adjustment has been reflected in the comparative figures for the year ended 31 May 2025 to ensure consistency and compliance with applicable accounting standards.

26.	Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. Contributions totalling £16,703 (2024: £14,549) were payable to the fund at the reporting date and are included in other creditors. The pension cost charge represents contributions payable by the Group to the fund and amounted to £51,576 (2024: £51,573).

27.	Commitments under operating leases
	At 31 May 2025 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
		Group	Group
		2025	2024
		£	£

Not later than 1 year	67,890	69,770
Later than 1 year and not later than 5 years	231,400	201,000
Later than 5 years	439,688	489,938
	738,978	760,708

Page 34


T & G ENGINEERING HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

28.

Related party transactions

The subsidiaries of the group are wholly owned subsidiaries and accordingly has taken the exemptions provided within paragraph 33.1A of FRS102 and therefore transactions with group companies have not been disclosed.

At the year end included within other creditors is an amount of £170,200 (2024: £119,842) payable to the director. The loan has interest charged of £1,563 at 3.75% per annum and is payable on demand.

29.	Subsidiary Companies Exemption

The following companies are exempt from the requirement to be audited by virtue of Section 479A of The Companies Act 2006.

Douglas Precision Engineering Co Limited (Registered Number 07849672)
Williams & Co Precision Limited (Registered Number 14740953)

30.	Controlling party

The company is controlled commonly by its directors.

Page 35