REGISTERED NUMBER: 08454101 (England and Wales)

AARON RAIL LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

D Ferguson

N P Eastwood

D R Lane

REGISTERED OFFICE:

4a Bramall Moor Technology Park

Pepper Road

Hazel Grove

Stockport

Cheshire

SK7 5BW

REGISTERED NUMBER:

08454101 (England and Wales)

AUDITORS:

Rushtons

Chartered Accountants

Statutory Auditors

Shorrock House

1 Faraday Court

Fulwood

Preston

Lancashire

PR2 9NB

FIXED ASSETS

Tangible assets

4

1,390,988

1,491,186

Investments

5

-

-

1,390,988

1,491,186

CURRENT ASSETS

Debtors

6

1,515,572

1,754,494

Cash at bank and in hand

263,886

160,808

1,779,458

1,915,302

CREDITORS

Amounts falling due within one year

7

1,079,524

1,377,265

NET CURRENT ASSETS

699,934

538,037

TOTAL ASSETS LESS CURRENT LIABILITIES

2,090,922

2,029,223

CREDITORS

Amounts falling due after more than one year

8

(1,482,237

)

(1,285,194

)

PROVISIONS FOR LIABILITIES

(336,720

)

(356,367

)

NET ASSETS

271,965

387,662

CAPITAL AND RESERVES

Called up share capital

11

135

150

Retained earnings

271,830

387,512

SHAREHOLDERS' FUNDS

271,965

387,662

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 22 December 2025 and were signed on its behalf by:

N P Eastwood - Director

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in Sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

Preparation of consolidated financial statements

The financial statements contain information about Aaron Rail Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Aaron Engineering Group Limited, Unit 4a Pepper Road, Hazel Grove, Stockport, England, SK7 5BW.

Exemptions have been taken in these separate company financial statements in relation to related parties.

Turnover

Turnover represents amounts receivable for services provided in the normal course of business excluding trade discounts, rebates, value added tax and other sales taxes.

In respect of long term contracts and contracts for ongoing services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover is recognised by reference to stage of completion. Profit is recognised if the final outcome can be assessed with reasonable certainty, by including in the profit or loss account, turnover and related costs as contact activity progresses.

If a contract is forecast to make a loss the full loss is recognised immediately,

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

20% on cost

Motor vehicles

-

20% on reducing balance

Computer equipment

-

20% on cost

Tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses.

Financial instruments

Basic financial instruments include cash, trade receivables, trade payables, loans receivable and payable. These are initially recognized at transaction price and subsequently measured at amortized cost using the effective interest method, less provision for impairment where applicable.

Financial Assets

Financial assets, including trade and other receivables and cash at bank, are initially recognised at transaction price and subsequently measured at amortised cost using the effective interest method, less any provision for impairment.

Financial Liabilities

Financial liabilities, including trade payables, other creditors, and borrowings, are initially recognised at transaction price and subsequently measured at amortised cost using the effective interest method.

Loans and Borrowings

Loans and other borrowings, including both short-term and long-term debt, are measured at amortised cost using the effective interest method. Interest expense is recognised in profit or loss on an accruals basis.

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

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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.

Provisions for liabilities

Provisions for the expected costs of maintenance under guarantees are charged against profits when products have been invoiced. The effect of the time value of money is not considered material and therefore provisions are not discounted.

Where necessary specific provisions are provided for based on if the directors consider there to be a present obligation as a result of a past event and where a transfer of economic benefits is probable to settle the obligation. Provisions are measured at the best estimate of the amount required to settle the obligation at the reporting date.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 19 (2024 - 20 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

Motor

Computer

machinery

vehicles

equipment

Totals

£

£

£

£

COST

At 1 April 2024

7,696

1,969,334

80,562

2,057,592

Additions

16,255

273,006

21,419

310,680

Disposals

(4,580

)

(168,159

)

(17,122

)

(189,861

)

At 31 March 2025

19,371

2,074,181

84,859

2,178,411

DEPRECIATION

At 1 April 2024

6,427

530,495

29,484

566,406

Charge for year

2,408

318,728

14,236

335,372

Eliminated on disposal

(4,580

)

(92,653

)

(17,122

)

(114,355

)

At 31 March 2025

4,255

756,570

26,598

787,423

NET BOOK VALUE

At 31 March 2025

15,116

1,317,611

58,261

1,390,988

At 31 March 2024

1,269

1,438,839

51,078

1,491,186

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

Motor

vehicles

£

COST

At 1 April 2024

1,954,387

Additions

273,006

Disposals

(161,159

)

At 31 March 2025

2,066,234

DEPRECIATION

At 1 April 2024

520,208

Charge for year

317,795

Eliminated on disposal

(85,653

)

At 31 March 2025

752,350

NET BOOK VALUE

At 31 March 2025

1,313,884

At 31 March 2024

1,434,179

5.	FIXED ASSET INVESTMENTS

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Aaron Pay Limited

Registered office: Unit 4a Pepper Road, Hazel Grove, Stockport, SK7 5BW

Nature of business: Accounting activities

%

Class of shares:

holding

Ordinary

100.00

2025

2024

£

£

Aggregate capital and reserves

19,527

19,172

Profit for the year

355

3,978

6.

DEBTORS

2025

2024

£

£

Amounts falling due within one year:

Trade debtors

767,889

1,010,327

Other debtors

203,976

169,818

971,865

1,180,145

Amounts falling due after more than one year:

Amounts owed by group undertakings

543,707

574,349

Aggregate amounts

1,515,572

1,754,494

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Bank loans and overdrafts

-

69,880

Hire purchase contracts (see note 9)

421,724

373,432

Trade creditors

365,450

667,683

Taxation and social security

164,827

185,507

Other creditors

127,523

80,763

1,079,524

1,377,265

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2025

2024

£

£

Bank loans

-

157,529

Hire purchase contracts (see note 9)

633,548

859,775

Amounts owed to group undertakings

848,689

267,890

1,482,237

1,285,194

9.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase

contracts

2025

2024

£

£

Net obligations repayable:

Within one year

421,724

373,432

Between one and five years

633,548

859,775

1,055,272

1,233,207

Non-cancellable

operating leases

2025

2024

£

£

Within one year

32,477

22,727

Between one and five years

47,539

83,515

In more than five years

-

3,250

80,016

109,492

10.	SECURED DEBTS

The following secured debts are included within creditors:

2025

2024

£

£

Hire purchase contracts

1,055,272

1,233,207

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2025

2024

value:

£

£

134

Ordinary

1

134

134

6

Ordinary A

1

-

6

9

Ordinary B

1

-

9

1

Ordinary C

1

-

1

1

Ordinary D

1

1

-

135

150

Dividends can be paid on one or more class of shares but not the others, and be declared at a different level of dividend on each class of share.

The shareholders undertake to exercise all voting rights and powers of control available to them in relation to the Company to procure that, save with the prior written consent of the Ordinary Shareholder, the Company will not take any of the reserved matters.

The Ordinary A, Ordinary B, Ordinary C and Ordinary D shares are growth shares. As the valuation of the company grows, the proportion of the realised proceeds, upon a share sale or distribution, payable to the holders of the shares increases.

12.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Adam Calvert FCA (Senior Statutory Auditor)

for and on behalf of Rushtons

13.	RELATED PARTY DISCLOSURES

Aaron Engineering Group Limited is the ultimate parent company of Aaron Access Limited, Aaron Rail Limited, Aaron HV Systems Limited & Aaron Pay Limited

As at 31 March 2025, the balanced owed by Aaron Engineering Group Limited to Aaron Rail Limited was £362,170 (2024: £277,998).

During the year, Aaron Engineering Group Limited surrendered trading losses of £264,398 (2024: £134,092) to the company under group relief.

During the year, purchases from Aaron Access Limited totalled £1,345,914 (2024: £1,641,065), and sales to Aaron Access Limited totalled £412,624 (2024: £453,268). As at 31 March 2025, the balance owed by Aaron Access Limited to Aaron Rail Limited was £181,537 (2024: £225,560 owed by Aaron Access Limited).

During the year, purchases from Aaron Pay Limited totalled £2,390,932 (2024: £2,394,015). As at 31 March 2025, the balance owed to Aaron Pay Limited by Aaron Rail Limited was £217,569 (2024: £267,890).

As at 31 March 2025, the balanced owed to Aaron HV Systems Limited by Aaron Rail Limited was £631,119 (2024: the balance owed by Aaron HV System was £70,790).

14.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party of Aaron Rail Limited are D Ferguson and N Eastwood by way of their shareholding in the parent company, Aaron Engineering Group Limited, a company registered in the United Kingdom.

The smallest and largest group in which the company's results are consolidated is that headed by Aaron Engineering Group Limited. Group consolidated financial statements are made available to the public and can be obtained from The Registrar of Companies, Companies House, Crown Way, Cardiff, CF14 3UZ.