Rayden Engineering Limited Filleted accounts for Companies House (small and micro)

COMPANY REGISTRATION NUMBER: 03190046

Rayden Engineering Limited

Filleted Unaudited Financial Statements

31 March 2025

Rayden Engineering Limited

Statement of Financial Position

31 March 2025

	2025		2024
Note	£	£	£

Fixed assets

Tangible assets	5	1,270,738	1,642,753
Investments	6	713,200	643,433
		------------	------------
		1,983,938	2,286,186

Current assets

Stocks		49,319	60,845
Debtors	7	6,399,122	4,739,370
Cash at bank and in hand		1,747,051	953,110
		------------	------------
		8,195,492	5,753,325

Creditors: amounts falling due within one year	8	9,550,657		7,507,578
		------------		------------
Net current liabilities			1,355,165	1,754,253
			------------	------------
Total assets less current liabilities			628,773	531,933

Creditors: amounts falling due after more than one year	9	259,615	361,296
		---------	---------
Net assets		369,158	170,637
		---------	---------

Capital and reserves

Called up share capital	1,000	1,000
Profit and loss account	368,158	169,637
	---------	---------
Shareholders funds	369,158	170,637
	---------	---------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.

For the year ending 31 March 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

Rayden Engineering Limited

Statement of Financial Position (continued)

31 March 2025

These financial statements were approved by the board of directors and authorised for issue on 17 December 2025 , and are signed on behalf of the board by:

Mr R Hayden

Director

Company registration number: 03190046

Rayden Engineering Limited

Notes to the Financial Statements

Year ended 31 March 2025

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Wentworth House, Wentworth Street, Ilkeston, Derbyshire, DE7 5TF.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity.

Construction contracts

Where the outcome of construction contracts can be reliably estimated, contract revenue and contract costs are recognised by reference to the stage of completion of the contract activity as at the year end.

Where the outcome of construction contracts cannot be estimated reliably, revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable, and contract costs are recognised as an expense in the period in which they are incurred.

When it is probable that total contract costs will exceed total contract revenue, the expected loss is expensed immediately, with a corresponding provision for an onerous contract being recognised.

Where the collectability of an amount already recognised as contract revenue is no longer probable, the uncollectible amount is expensed rather than recognised as an adjustment to the amount of contract revenue.

The percentage of completion method is used to determine the amounts to be recognised in the period. The stage of completion is measured by reference to the contract costs incurred up to the end of the reporting period as a percentage of total estimated costs for each contract. Costs incurred for work performed to date do not include costs relating to future activity, such as for materials or prepayments.

Judgements 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 The judgements (apart from those involving estimations) that directors have made in the process of applying the accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: Revenue and margin recognition The company's revenue recognition and construction contracts accounting policy is set out above and are central to how it values the work it has carried out in each financial year. These policies require forecasts to be made of the outcomes of long-term construction services which require assessments and judgements to be made on changes in the scope of work, contract programmes, and changes in costs. There are a small number of longterm and complex projects where the company has incorporated judgements over contractual entitlements. The range of potential outcomes as a result of uncertain future events could result in a materially positive or negative swing to profitability and cash flow.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Plant and machinery	-	2.50% reducing balance
Fixtures and fittings	-	15% reducing balance
Motor vehicles	-	10-15% reducing balance

Investments

Other investments relate to Life Policies which include Unit Linked Endowment Contracts. Monthly premiums are capitalised and changes in the value of the investments recognised in profit or loss.

Investments in joint ventures

Investments in jointly controlled entities accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in jointly controlled entities accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the joint venture arising before or after the date of acquisition.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 33 (2024: 34 ).

5. Tangible assets

	Plant and machinery	Fixtures and fittings	Motor vehicles	Total
	£	£	£	£
Cost
At 1 April 2024	1,301,605	264,968	865,519	2,432,092
Additions	27,997	9,878	–	37,875
Disposals	( 415,005)	–	( 62,917)	( 477,922)
	------------	---------	---------	------------
At 31 March 2025	914,597	274,846	802,602	1,992,045
	------------	---------	---------	------------
Depreciation
At 1 April 2024	259,613	180,226	349,500	789,339
Charge for the year	23,432	13,409	63,121	99,962
Disposals	( 116,617)	–	( 51,377)	( 167,994)
	------------	---------	---------	------------
At 31 March 2025	166,428	193,635	361,244	721,307
	------------	---------	---------	------------
Carrying amount
At 31 March 2025	748,169	81,211	441,358	1,270,738
	------------	---------	---------	------------
At 31 March 2024	1,041,992	84,742	516,019	1,642,753
	------------	---------	---------	------------

Finance leases and hire purchase contracts

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

	Plant and machinery	Motor vehicles	Total
	£	£	£
At 31 March 2025	132,790	312,277	445,067
	---------	---------	---------
At 31 March 2024	136,194	363,557	499,751
	---------	---------	---------

6. Investments

	Other investments other than loans
	£
Cost
At 1 April 2024	643,433
Additions	24,000
Revaluations	45,767
	---------
At 31 March 2025	713,200
	---------
Impairment
At 1 April 2024 and 31 March 2025	–
	---------

Carrying amount
At 31 March 2025	713,200
	---------
At 31 March 2024	643,433
	---------

Investments held at valuation

Other investments relate to Life Policies which include Unit Linked Endowment Contracts. Annual valuations are determined by reports received from the relevant insurance company.

In respect of investments held at valuation, the aggregate cost, depreciation and comparable carrying amount that would have been recognised if the assets had been carried under the historical cost model are as follows:

	Other investments other than loans
	£
At 31 March 2025
Aggregate cost	550,000
Aggregate depreciation	–
	---------
Carrying value	550,000
	---------

At 31 March 2024
Aggregate cost	526,000
Aggregate depreciation	–
	---------
Carrying value	526,000
	---------

7. Debtors

	2025	2024
	£	£
Trade debtors	5,466,905	3,907,135
Other debtors	932,217	832,235
	------------	------------
	6,399,122	4,739,370
	------------	------------

The debtors above include the following amounts falling due after more than one year:

	2025	2024
	£	£
Other debtors	152,099	–
	---------	----

8. Creditors: amounts falling due within one year

	2025	2024
	£	£
Trade creditors	2,224,037	1,878,133
Social security and other taxes	540,245	45,403
Amounts owed to Green Horizons Limited	877,958	836,153
Share of deficit attributed to GMC Rayden Joint Venture	5,700,037	4,477,063
Other creditors	208,380	270,826
	------------	------------
	9,550,657	7,507,578
	------------	------------

Amounts owed on finance lease or hire purchase contracts amount to £97,324 (2024 - £127,660) and are secured on the assets they relate to. Amounts owed are included within other creditors.

9. Creditors: amounts falling due after more than one year

	2025	2024
	£	£
Other creditors	259,615	361,296
	---------	---------

Amounts owed on finance lease or hire purchase contracts amount to £90,341 (2024 - £188,730) and are secured on the assets they relate to. Amounts owed are included within other creditors.

10. Directors' advances, credits and guarantees

As at the period end the company owed the directors a total amount of £177,375 (2024 - £180,667), the loans are interest free and Mr R Hayden will not seek repayment of the amount owed to him less than 12 months from the financial year end.

11. Related party transactions

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

	Transaction value		Balance owed by/(owed to)
	2025	2024	2025	2024
	£	£	£	£
Associated companies	148,365	156,593	1,731,823	1,583,458
Employment Retention Trust	12,904	39,923	669,057	656,153
	---------	---------	------------	------------

Associated Companies include companies which Mr R Hayden and Mr B Hayden are either directors or shareholders. Transactions include amounts advanced or liabilities settled on behalf of the companies. The recoverability of the amounts is doubtful and accordingly a provision for the full amount has been made. The company received loans in prior years totalling £524,706 from Green Horizons Limited a company registered in the Isle of Man and owned by Rayden Engineering Limited Employee Retention Trust. The original rate of interest is disputed as it was set at a punitive rate. The directors intention is to wind up the trust and as part of this process, a commercial rate of interest has been tentatively agreed. After accounting for interest at 5% per annum the amount owed and included within other creditors amounts to £877,958 (2024 - £836,153) An investigation launched by HMRC in respect of the past use of Employment Benefit Trusts was finalised by way of a settlement agreement. Under the terms of the Rayden Engineering Limited Employee Retention Trust it is obligated to settle any PAYE and National Insurance liability arising as a consequence of past company contributions to the trust. An amount of £669,057 is recognised as a debtor recoverable from the trust. The amount is reflected separately within other debtors and is net of payments made by Rayden Engineering Limited Employee Retention Trust as part settlement.