REGISTERED NUMBER: 00439915 (England and Wales)

DON VALLEY ENGINEERING COMPANY LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 JULY 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

L A Ashurst

R E Baker

S F Doleman

A J Priestley

I D Trotter

REGISTERED OFFICE:

Sandall Stones Road

Kirk Sandall

Doncaster

South Yorkshire

DN3 1QR

REGISTERED NUMBER:

00439915 (England and Wales)

INDEPENDENT AUDITORS:

Xeinadin Audit Limited

Statutory Auditor, Chartered Accountants

Sidings House, Sidings Court

Lakeside

Doncaster

South Yorkshire

DN4 5NU

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

Principal Activity

The principal activity of the company is that of mechanical engineering, particularly that of the handling & processing of bulk materials and malting process plant. Within these sectors the company provides design consultancy, supply and manufacture of equipment, spares provision, installation, repair and maintenance and asset management.

REVIEW OF BUSINESS

In the financial year covered by these accounts, the directors can report another very successful year despite the uncertain economic conditions both in our sectors and in the wider economy. We have also recognised the impact of trade tariffs being applied by many countries to respond to American tariffs implemented by President Trump.

We are still encountering customers delaying major projects. The first labour budget increased employment costs and the ongoing risk of further significant additional tax changes all create an unsettling business environment. Many companies have concerns relating to the upcoming November 2025 budget, the ongoing Ukraine/Russia war and flat growth in most of the world's developed economies. Key investment decisions are being delayed and some projects cancelled completely.

Despite these difficult times, the directors see opportunities and expect to weather the present uncertainties to deliver another profitable year of operation, although probably not at the levels represented by these accounts.

KEY PERFORMANCE INDICATORS

The directors consider the following relevant to the company:

2025

2024

Gross Profit %

19.5%

11.9%

Overheads / Turnover %

10.7%

9.6%

Stock / Cost of Sales %

6.0%

4.6%

Operating Profit / Turnover %

8.7%

2.3%

Staff Costs / Turnover %

10.9%

8.9%

Liquidity Ratio

1.26:1

1.19:1

The directors consider the KPIs reflect the company's performance for the year.

ON BEHALF OF THE BOARD:

L A Ashurst - Director

16 December 2025

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

DIVIDENDS

No dividends have been proposed for the year ended 31 July 2025.

DIRECTORS

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

L A Ashurst

R E Baker

S F Doleman

A J Priestley

I D Trotter

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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

L A Ashurst - Director

16 December 2025

Opinion

We have audited the financial statements of Don Valley Engineering Company Limited (the 'company') for the year ended 31 July 2025 which comprise the Income Statement, Other Comprehensive Income, 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 31 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.

Responsibilities of directors

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

Based on our understanding of the Company, we identified that the principal risks of non-compliance with laws and regulations related to corporation tax legislation and we considered the extent to which non-compliance might have a material effect on the financial statements.

As part of this assessment we considered both quantitative and qualitative factors. We also considered those laws and regulations that have a direct impact of the preparation of the financial statements, such as the Companies Act 2006 and FRS 102.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements which included the risk of management override of controls. We determined that the principal risks were related to posting inappropriate journal entries, omitting, advancing or delaying recognition of events and transactions that have occurred during or after the reporting period, and potential management bias in the determination of accounting estimates or judgements to manipulate results.

Audit procedures performed by the engagement team include:

-

Enquiring of and obtaining written representation from management in relation to known or suspected instances of non-compliance with laws and regulations and fraud;

-

Enquiring of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;

-

Evaluation of management's controls designed to prevent and detect irregularities;

-

Review of board meeting minutes and meetings of those charged with governance;

-

Identifying and, where relevant, testing journal entries posted by senior management or with unusual combinations;

-

Assessing and evaluating the business rationale of significant transactions outside the normal course of business;

-

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

-

Incorporating elements of unpredictability into the nature, timing and/or extent of audit procedures performed.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion.

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.

Mr Kelvin Fitton BA FCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

Statutory Auditor, Chartered Accountants

Sidings House, Sidings Court

Lakeside

Doncaster

South Yorkshire

DN4 5NU

18 December 2025

TURNOVER

19,177,942

17,607,980

Cost of sales

15,447,208

15,504,625

GROSS PROFIT

3,730,734

2,103,355

Administrative expenses

2,057,067

1,696,247

OPERATING PROFIT

4

1,673,667

407,108

Interest receivable and similar income

638

235

1,674,305

407,343

Interest payable and similar expenses

5

7,793

13,231

PROFIT BEFORE TAXATION

1,666,512

394,112

Tax on profit

6

378,727

98,347

PROFIT FOR THE FINANCIAL YEAR

1,287,785

295,765

PROFIT FOR THE YEAR

1,287,785

295,765

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,287,785

295,765

FIXED ASSETS

Intangible assets

8

-

-

Tangible assets

9

130,944

111,268

130,944

111,268

CURRENT ASSETS

Stocks

10

934,711

713,952

Debtors

11

9,259,209

4,878,375

Cash at bank and in hand

3,614,087

4,475,697

13,808,007

10,068,024

CREDITORS

Amounts falling due within one year

12

10,947,095

8,425,740

NET CURRENT ASSETS

2,860,912

1,642,284

TOTAL ASSETS LESS CURRENT LIABILITIES

2,991,856

1,753,552

CREDITORS

Amounts falling due after more than one year

13

-

(48,550

)

PROVISIONS FOR LIABILITIES

16

(14,400

)

(15,331

)

NET ASSETS

2,977,456

1,689,671

CAPITAL AND RESERVES

Called up share capital

17

180,500

180,500

Retained earnings

18

2,796,956

1,509,171

SHAREHOLDERS' FUNDS

2,977,456

1,689,671

The financial statements were approved by the Board of Directors and authorised for issue on 16 December 2025 and were signed on its behalf by:

A J Priestley - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 August 2023

180,500

2,363,406

2,543,906

Changes in equity

Dividends

-

(1,150,000

)

(1,150,000

)

Total comprehensive income

-

295,765

295,765

Balance at 31 July 2024

180,500

1,509,171

1,689,671

Changes in equity

Total comprehensive income

-

1,287,785

1,287,785

Balance at 31 July 2025

180,500

2,796,956

2,977,456

1.	STATUTORY INFORMATION

Don Valley Engineering Company 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill

Intangible assets are initially measured at cost then at cost less accumulated amortisation and any accumulated impairment losses.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

20% on cost, 10% on cost and Straight line over 3 years

Motor vehicles

-

Straight line over 3 years

Stocks

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

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

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.

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

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,825,289

1,364,741

Social security costs

178,643

145,089

Other pension costs

82,076

65,652

2,086,008

1,575,482

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

2025

2024

Production staff

12

11

Administration staff

32

27

44

38

2025

2024

£

£

Directors' remuneration

-

-

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2025

2024

£

£

Hire of plant and machinery

28,844

33,550

Other operating leases

20

140

Depreciation - owned assets

60,602

66,883

Profit on disposal of fixed assets

(50

)

(73

)

Auditors' remuneration

12,900

15,128

Foreign exchange differences

(7,811

)

(644

)

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank loan interest

7,549

13,231

Other interest

244

-

7,793

13,231

6.

TAXATION

Analysis of the tax charge

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

2025

2024

£

£

Current tax:

UK corporation tax

395,411

104,309

Underprovision in earlier year

(15,753

)

-

Total current tax

379,658

104,309

Deferred tax

(931

)

(5,962

)

Tax on profit

378,727

98,347

Reconciliation of total tax charge included in profit and loss

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

2025

2024

£

£

Profit before tax

1,666,512

394,112

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

416,628

98,528

Effects of:

Depreciation in excess of capital allowances

-

5,781

Deferred tax expense from unrecognised tax loss or credit

-

(5,962

)

Tax decrease from group relief

(37,901

)

-

Total tax charge

378,727

98,347

7.

DIVIDENDS

2025

2024

£

£

Ordinary shares of 0.05 each

Final

-

1,150,000

8.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 August 2024

and 31 July 2025

72,510

AMORTISATION

At 1 August 2024

and 31 July 2025

72,510

NET BOOK VALUE

At 31 July 2025

-

At 31 July 2024

-

9.	TANGIBLE FIXED ASSETS

Plant and

Motor

machinery

vehicles

Totals

£

£

£

COST

At 1 August 2024

708,235

129,584

837,819

Additions

45,738

34,540

80,278

Disposals

(32,783

)

-

(32,783

)

At 31 July 2025

721,190

164,124

885,314

DEPRECIATION

At 1 August 2024

616,507

110,044

726,551

Charge for year

46,333

14,269

60,602

Eliminated on disposal

(32,783

)

-

(32,783

)

At 31 July 2025

630,057

124,313

754,370

NET BOOK VALUE

At 31 July 2025

91,133

39,811

130,944

At 31 July 2024

91,728

19,540

111,268

10.

STOCKS

2025

2024

£

£

Stocks

680,295

593,050

Raw materials

10,003

10,003

Work-in-progress

244,413

110,899

934,711

713,952

11.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

1,403,088

4,796,567

Amounts owed by group undertakings

7,556,541

-

VAT

260,761

-

Prepayments

38,819

81,808

9,259,209

4,878,375

12.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Bank loans and overdrafts (see note 14)

48,057

66,471

Trade creditors

1,868,784

1,696,419

Amounts owed to group undertakings

3,280,034

1,324,820

Tax

343,136

104,308

Social security and other taxes

58,542

47,250

VAT

-

977,457

Other creditors

22,255

41,551

Payments on account

4,144,640

2,703,333

Accruals and deferred income

1,181,647

1,464,131

10,947,095

8,425,740

13.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2025

2024

£

£

Bank loans (see note 14)

-

48,550

14.

LOANS

An analysis of the maturity of loans is given below:

2025

2024

£

£

Amounts falling due within one year or on demand:

Bank loans

48,057

66,471

Amounts falling due between one and two years:

Bank loans - 1-2 years

-

48,550

15.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2025

2024

£

£

Within one year

1,913

1,913

Between one and five years

319

2,232

2,232

4,145

16.	PROVISIONS FOR LIABILITIES

2025

2024

£

£

Deferred tax

14,400

15,331