ACCOUNTS - Final Accounts preparation

Commitments under operating leases

At 31 March 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

Company registration number: 00986944

	UNAUDITED FINANCIAL STATEMENTS
	FOR THE YEAR ENDED 31 MARCH 2025

	TENON ENGINEERING LIMITED


TENON ENGINEERING LIMITED

COMPANY INFORMATION

Directors	C M Norval
	A J Watt


Registered number	00986944


Registered office	Curtis Road Industrial Estate
	Curtis Road
	Dorking
	England
	RH4 1EJ


Accountants	Menzies LLP
	Chartered Accountants
	Ashcombe House
	5 The Crescent
	Leatherhead
	Surrey
	KT22 8DY


TENON ENGINEERING LIMITED

CONTENTS

	Page
Statement of Financial Position	1 - 2
Notes to the Financial Statements	3 - 9


TENON ENGINEERING LIMITED REGISTERED NUMBER:00986944

STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2025

		2025		2024
Note		£		£

Fixed assets
Intangible assets	4		55,588		62,569
Tangible assets	5		1,039,025		1,082,522
			1,094,613		1,145,091
Current assets
Stocks		929,180		861,077
Debtors: amounts falling due within one year	6	845,827		923,606
Cash at bank and in hand		65,456		145,553
		1,840,463		1,930,236
Creditors: amounts falling due within one year	7	(2,402,075)		(2,110,034)
Net current liabilities			(561,612)		(179,798)
Total assets less current liabilities			533,001		965,293
Creditors: amounts falling due after more than one year	8		(408,814)		(661,006)

Net assets			124,187		304,287

Page 1


TENON ENGINEERING LIMITED REGISTERED NUMBER:00986944

STATEMENT OF FINANCIAL POSITION (CONTINUED)

AS AT 31 MARCH 2025

	2025	2024
	£	£

Capital and reserves
Allotted, called up and fully paid share capital	83,000	83,000
Profit and loss account	41,187	221,287
	124,187	304,287

The Directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.

The Directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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

The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

C M Norval

Director

Date: 18 December 2025

The notes on pages 3 to 9 form part of these financial statements.

Page 2


TENON ENGINEERING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

1.	General information

Tenon Engineering Limited is a private company limited by shares and incorporated in England and Wales. The address of the registered office, which is also the principal place of business is disclosed on the company information page of these financial statements.

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 Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The following principal accounting policies have been applied:

2.2

Going concern

At the balance sheet date, the company had net current liabilities of £561,612 (2024: £179,798) and is therefore reliant upon the support of the directors and management of certain creditors.

Whilst some uncertainties still exist and these may cast doubt on the company’s ability to continue as a going concern, the directors believe that the actions they have taken should enable it to continue in operational existence for at least 12 months from the approval of these accounts.

2.3

Revenue

Revenue is derived from the manufacture and sale of precision engineering components and is recognised to the extent that it is probable that the economic benefits will flow to the Company 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.

2.4

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

2.5

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

2.6

Government grants

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

Page 3


TENON ENGINEERING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company 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 Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

2.8

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 reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position 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; and

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

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 reporting date.

2.9

Intangible fixed assets

Development expenditure
Product development costs and software development costs are being amortised evenly over their estimated
useful life of five years.
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.

2.10

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.

Page 4


TENON ENGINEERING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

2.10

Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Short-term leasehold property	-	over period of the lease
Plant and machinery	-	25% on cost and 20% reducing balance
Office equipment	-	20% reducing balance

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.

2.11

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.

At each reporting 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.

Employees

The average monthly number of employees, including directors, during the year was 43 (2024 - 43).

Page 5


TENON ENGINEERING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

4.	Intangible assets

		Development expenditure
		£
	Cost
	At 1 April 2024	90,493
	At 31 March 2025	90,493
	Amortisation
	At 1 April 2024	27,924
	Charge for the year	6,981
	At 31 March 2025	34,905
	Net book value
	At 31 March 2025	55,588
	At 31 March 2024	62,569

Page 6


TENON ENGINEERING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

5.	Tangible fixed assets

	Short-term leasehold property	Plant and machinery	Office equipment	Total
	£	£	£	£
Cost or valuation
At 1 April 2024	666,740	1,439,002	177,714	2,283,456
Additions	-	153,070	5,940	159,010
Disposals	-	(21,889)	-	(21,889)
At 31 March 2025	666,740	1,570,183	183,654	2,420,577
Depreciation
At 1 April 2024	266,512	813,323	121,099	1,200,934
Charge for the year	52,061	133,715	12,164	197,940
Disposals	-	(17,322)	-	(17,322)
At 31 March 2025	318,573	929,716	133,263	1,381,552
Net book value
At 31 March 2025	348,167	640,467	50,391	1,039,025
At 31 March 2024	400,228	625,679	56,615	1,082,522

Debtors

					2025	2024
					£	£


Trade debtors	298,635	389,199
Amounts owed by group undertakings	231,908	329,019
Other debtors	76,404	5,515
Prepayments and accrued income	205,940	166,933
Deferred taxation	32,940	32,940
	845,827	923,606

Page 7


TENON ENGINEERING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

7.	Creditors: Amounts falling due within one year
		2025	2024
		£	£

Bank overdrafts	-	150
Other loans	109,627	58,639
Trade creditors	638,190	523,326
Amounts owed to group undertakings	741,816	873,560
Other taxation and social security	68,479	43,911
Obligations under finance lease and hire purchase contracts	462,957	165,926
Other creditors	234,085	360,469
Accruals and deferred income	146,921	84,053
	2,402,075	2,110,034

Included within other creditors are secured debts relating to invoice financing of £224,063 (2024: £355,500). The balance is secured on the trade debtors of the company.
Included within other loans are loans totalling £13,635 (2024: £58,639) which the directors have provided personal guarantees on.
There are obligations under finance lease and hire purchase contracts, which are secured over the related fixed
asset.

8.	Creditors: Amounts falling due after more than one year
		2025	2024
		£	£

Other loans	392,143	248,827
Net obligations under finance leases and hire purchase contracts	16,671	412,179
	408,814	661,006

Included within other loans are loans totalling £92,375 (2024: £248,827) which the directors have provided personal guarantees on.
There are obligations under finance lease and hire purchase contracts, which are secured over the related fixed
asset.

Page 8


TENON ENGINEERING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Not later than 1 year	142,844	142,844
Later than 1 year and not later than 5 years	270,493	413,337
	413,337	556,181

Page 9