Kaby Engineers Limited

	Page
Company Information	1
Strategic Report	2
Director's Report	3—4
Independent Auditor's Report	5—6
Consolidated Profit and Loss Account	7
Consolidated Statement of Comprehensive Income	8
Consolidated Balance Sheet	9
Company Balance Sheet	10
Consolidated Statement of Changes in Equity	11
Company Statement of Changes in Equity	12
Consolidated Statement of Cash Flows	13
Notes to the Consolidated Statement of Cash Flows	14
Notes to the Financial Statements	15—24

Page 1

Page 2

Strategic Report

For The Year Ended 31 March 2025

Strategic Report

The director presents his strategic report for the year ended 31 March 2025.

Review of the Business

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties we face.

We consider that our key financial performance indicators are those that communicate the financial performance and strength of the group as a whole, these being turnover, gross margin and return on investment.

The accounts show a decrease in turnover for the year of 22%, with gross profit decreasing from £4,871,015 to £4,400,793. The group made an operating profit of £442,019 for the year, compared to £424,367 in 2024.

The group declared a net profit after tax and other comprehensive income of £246,008 in the period, compared to £145,472 in 2024.

Principal Risks and Uncertainties

The group’s results for the year reflect the continued challenging environment for the global economy. Despite a reduction in turnover, the group, with the support of its customers, suppliers and staff, has been able to return to profitability through effective cost control and operational efficiency. During the year, the group experienced the effects of high inflation and substantial increases in energy costs.

The coming year will continue to be challenging for both the group and the wider global economy; however, with a strong order book, valued staff support and continued focus on cost control, the directors remain cautiously optimistic of an improvement in results.

With these risks and uncertainties in mind, we acknowledge that any plans for future development may be affected by circumstances which are both unforeseen and beyond our control.

On behalf of the board

Mr S T Williams

Director

22 December 2025

Page 2

Page 3

Kaby Engineers Limited

Company No. 01211144

Director's Report For The Year Ended 31 March 2025

Director's Report

The director presents his report and the financial statements for the year ended 31 March 2025.

Principal Activity

The group's principal activity continues to be that of light engineering.

Dividends

The value of dividends paid amounted to £NIL .

The director recommended a final dividend of £NIL .

Directors

The director who held office during the year were as follows:

Mr S T Williams

Employee Engagement Statement

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect

employees' interests.

Information of matters of concern to employces is given through information bulletins and reports which seek to achieve a common

awareness on the part of all employees of the financial and economic factors affecting the group's performance.

Disabled Persons

The company's policy is to recruit disabled workers for those vacancies that they are able to fill. All necessary assistance with initial training

courses is given. Once employed, a career plan is developed so as to ensure suitable opportunities for each disabled person. Arrangements are

made, wherever possible, for retraining employees who become disabled, to enable them to perform work identified as appropriate to their

aptitudes and abilities.

Statement of Director's Responsibilities

The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', and applicable law). Under company law the director 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 the financial statements the director is required to:

select suitable accounting policies and then apply them consistently;
make judgments and accounting estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards, comprising FRS102, have been followed subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company and group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. He is 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.

The director is responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement of Disclosure of Information to Auditors

In the case of each director in office at the date the Director's Report is approved:

so far as the director is aware, there is no relevant audit information of which the company and group's auditors are unaware; and
they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company and group's auditors are aware of that information.

Page 3

Page 4

Kaby Engineers Limited

Director's Report (continued)

For The Year Ended 31 March 2025

Independent Auditors

The auditors, SFB Group Limited, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.

On behalf of the board

Mr S T Williams

Director

22 December 2025

Page 4

Page 5

Independent Auditor's Report

to the Members of

Kaby Engineers Limited

Independent Auditor's Report

Opinion

We have audited the financial statements of Kaby Engineers Limited (the "parent company") and its subsidiaries (the "group") for the year ended 31 March 2025 which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes of Equity, Company Statement of Changes of Equity, Consolidated Cash Flow Statement 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

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 March 2025 and of the group's profit/(loss) 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 and parent 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 director's 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 and parent company's ability to continue as a going concern for a period of at least 12 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 other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The director is 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. 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and Director's 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 parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Director's 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 or returns; or
certain disclosures of director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Page 5

Page 6

Independent Auditor's Report (continued)

to the Members of

Kaby Engineers Limited

Responsibilities of Directors

As explained more fully in the Director's Responsibilities Statement set out on page 3—4, the director is 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 director 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 director is responsible for assessing the group and 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.

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 financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify

or recognise non-compliance with applicable laws;

- Enquiry of management around actual and potential litigation and claims;

- Enquiry of management to identify any instances of non-compliance with laws and regulations;

- We reviewed correspondence with legal and regulatory bodies where applicable;

- We agreed the financial statements disclosures to underlying supporting documentation

- We reviewed the detail of certain nominal accounts for indications of management override;

- We gained an understanding of the design and implementation of the processes and controls in place within the group which are designed to

prevent, detect or correct fraud or error within the financial statements

- We challenged the accounting treatment applied in respect of revenue recognised during the year, in particular in relation to manual

adjustments made to revenue, cut off between accounting periods;

- We identified and tested journal entries which we considered to be unusual and maybe indicative of bias on the part of management or

those charged with governance, investigating the rationale behind significant or unusual transactions.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material

misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or

regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of

instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves

intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 that 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.

Paul Carvell BFP FCA (Senior Statutory Auditor)

for and on behalf of SFB Group Limited , Statutory Auditor

22 December 2025

SFB Group Limited

Manor Court Chambers

Townsend Drive

Nuneaton

Warwickshire

CV11 6RU

Page 6

Page 7

Kaby Engineers Limited

Consolidated Profit and Loss Account

For The Year Ended 31 March 2025

Consolidated Profit and Loss Account

		2025	2024
	Notes	£	£
TURNOVER	3	13,765,325	17,656,014
Cost of sales		(9,364,532 )	(12,784,999 )

GROSS PROFIT		4,400,793	4,871,015

Distribution costs		(172,463 )	(197,863 )
Administrative expenses		(3,786,311 )	(4,248,785 )

OPERATING PROFIT	4	442,019	424,367
Profit on disposal of fixed assets		850	13,500
Other interest receivable and similar income	9	5,487	248
Interest payable and similar charges	10	(302,040 )	(392,643 )

PROFIT FOR THE FINANCIAL YEAR ATTRIBUTABLE TO THE OWNERS OF THE PARENT		146,316	45,472

The notes on pages 14 to 24 form part of these financial statements.

Page 7

Page 8

Kaby Engineers Limited

Consolidated Statement of Comprehensive Income

For The Year Ended 31 March 2025

Consolidated Statement of Comprehensive Income

	2025	2024
	£	£
PROFIT FOR THE FINANCIAL YEAR	146,316	45,472
OTHER COMPREHENSIVE INCOME:
Gain on revaluation of property, plant and equipment	99,692	100,000

TOTAL COMPREHENSIVE INCOME FOR THE YEAR ATTRIBUTABLE TO THE OWNERS OF THE PARENT	246,008	145,472

Page 8

Page 9

Kaby Engineers Limited

Consolidated Balance Sheet

As At 31 March 2025

Consolidated Balance Sheet

		2025		2024
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	12		-		94,612
Tangible Assets	13		4,755,753		4,797,757

			4,755,753		4,892,369
CURRENT ASSETS
Stocks	15	1,298,061		1,927,916
Debtors	16	1,625,566		2,492,896
Cash at bank and in hand		732,061		106,493

		3,655,688		4,527,305
Creditors: Amounts Falling Due Within One Year	17	(2,386,969 )		(3,950,612 )

NET CURRENT ASSETS (LIABILITIES)			1,268,719		576,693

TOTAL ASSETS LESS CURRENT LIABILITIES			6,024,472		5,469,062

Creditors: Amounts Falling Due After More Than One Year	18		(3,092,405 )		(2,783,003 )

NET ASSETS			2,932,067		2,686,059

CAPITAL AND RESERVES
Called up share capital	21		100,000		100,000
Fair value reserve			1,772,774		1,711,216
Profit and Loss Account			1,059,293		874,843

SHAREHOLDERS' FUNDS			2,932,067		2,686,059

On behalf of the board

Mr S T Williams

Director

22 December 2025

The notes on pages 14 to 24 form part of these financial statements.

Page 9

Page 10

Kaby Engineers Limited

Company Balance Sheet

As At 31 March 2025

Company Balance Sheet

		2025		2024
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	12		-		94,612
Tangible Assets	13		4,744,427		4,784,431
Investments	14		250,752		250,752

			4,995,179		5,129,795
CURRENT ASSETS
Stocks	15	1,298,061		1,927,916
Debtors	16	1,901,575		2,832,795
Cash at bank and in hand		732,061		106,493

		3,931,697		4,867,204
Creditors: Amounts Falling Due Within One Year	17	(2,386,070 )		(3,949,712 )

NET CURRENT ASSETS (LIABILITIES)			1,545,627		917,492

TOTAL ASSETS LESS CURRENT LIABILITIES			6,540,806		6,047,287

Creditors: Amounts Falling Due After More Than One Year	18		(3,092,405 )		(2,783,003 )

NET ASSETS			3,448,401		3,264,284

CAPITAL AND RESERVES
Called up share capital	21		100,000		100,000
Fair value reserve			1,772,774		1,711,216
Profit and Loss Account			1,575,627		1,453,068

SHAREHOLDERS' FUNDS			3,448,401		3,264,284

In accordance with section 408(3) of the Companies Act 2006, the company has not presented its own profit and loss account and the related notes. The company's profit/(loss) for the year was £ 84,426 (2024: £(14,905 ) (loss)/profit).

On behalf of the board

Mr S T Williams

Director

22 December 2025

The notes on pages 14 to 24 form part of these financial statements.

Page 10

Page 11

Kaby Engineers Limited

Consolidated Statement of Changes in Equity

For The Year Ended 31 March 2025

Consolidated Statement of Changes in Equity

	Share Capital	Fair value reserve	Profit and Loss Account	Total
	£	£	£	£
As at 1 April 2023	100,000	1,611,216	829,371	2,540,587
Profit for the year and total comprehensive income	-	-	45,472	45,472

Movements in fair value reserve	-	100,000	-	100,000

As at 31 March 2024 and 1 April 2024	100,000	1,711,216	874,843	2,686,059


Profit for the year and total comprehensive income	-	-	146,316	146,316

Movements in fair value reserve	-	99,692	-	99,692
Transfer to/from Fair value reserve	-	-	38,134	38,134
Transfer to/from Profit & Loss Account	-	(38,134 )	-	(38,134)

As at 31 March 2025	100,000	1,772,774	1,059,293	2,932,067

Page 11

Page 12

Kaby Engineers Limited

Company Statement of Changes in Equity

For The Year Ended 31 March 2025

Company Statement of Changes in Equity

	Share Capital	Fair value reserve	Profit and Loss Account	Total
	£	£	£	£
As at 1 April 2023	100,000	1,611,216	1,467,973	3,179,189
Loss for the year and total comprehensive income	-	-	(14,905 )	(14,905)

Movements in fair value reserve	-	100,000	-	100,000

As at 31 March 2024 and 1 April 2024	100,000	1,711,216	1,453,068	3,264,284


Profit for the year and total comprehensive income	-	-	84,426	84,426

Movements in fair value reserve	-	99,692	-	99,692
Transfer to/from Fair value reserve	-	-	38,133	38,133
Transfer to/from Profit & Loss Account	-	(38,134 )	-	(38,134)

As at 31 March 2025	100,000	1,772,774	1,575,627	3,448,401

Page 12

Page 13

Kaby Engineers Limited

Consolidated Statement of Cash Flows

For The Year Ended 31 March 2025

Consolidated Statement of Cash Flows

		2025	2024
	Notes	£	£
Cash flows from operating activities
Net cash generated from operations	1	533,563	544,875
Interest paid		(297,073 )	(392,643 )
Interest element of hire purchase paid		(4,967)	-

Net cash generated from operating activities		231,523	152,232

Cash flows from investing activities
Purchase of tangible assets		(220,243 )	(157,531 )
Proceeds from disposal of tangible assets		850	13,500
Interest received		5,487	248

Net cash used in investing activities		(213,906 )	(143,783 )

Cash flows from financing activities
Proceeds from new bank borrowings		2,590,000	-
Repayment of bank borrowings		(2,132,533 )	(354,250 )
Repayment of finance leases		(57,660 )	11,321
New hire purchase in the year		208,144	-

Net cash generated from/(used in) financing activities		607,951	(342,929 )



Increase/(decrease) in cash and cash equivalents		625,568	(334,480 )
Cash and cash equivalents at beginning of year	2	106,493	440,973

Cash and cash equivalents at end of year	2	732,061	106,493

Page 13

Page 14

Kaby Engineers Limited

Notes to the Consolidated Statement of Cash Flows

For The Year Ended 31 March 2025

Notes to the Consolidated Statement of Cash Flows

1. Reconciliation of profit for the financial year to cash generated from operations

	2025	2024
	£	£
Profit for the financial year	146,316	45,472
Adjustments for:
Interest expense	302,040	392,643
Interest income	(5,487 )	(248 )
Amortisation of intangible assets	94,612	94,596
Depreciation of tangible assets	361,937	322,284
Profit on disposal of tangible assets	(850)	(13,500)
Movements in working capital:
Decrease in stocks	629,855	129,527
Decrease in trade and other debtors	867,330	883,230
Decrease in trade and other creditors	(1,862,190 )	(1,309,129 )

Net cash generated from operations	533,563	544,875

2. Cash and cash equivalents

Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:

	2025	2024
	£	£
Cash at bank and in hand	732,061	106,493

3. Analysis of changes in net debt

	As at 1 April 2024	Cash flows	As at 31 March 2025
	£	£	£
Cash at bank and in hand	106,493	625,568	732,061
Finance leases	(40,533)	(150,482)	(191,015)
Debts falling due within one year	(354,250 )	224,442	(129,808 )
Debts falling due after more than one year	(1,762,813)	(681,909)	(2,444,722)

	(2,051,103)	17,619	(2,033,484)

Page 14

Page 15

Kaby Engineers Limited

Notes to the Financial Statements

For The Year Ended 31 March 2025

Notes to the Financial Statements

1. General Information

Kaby Engineers Limited is a private company, limited by shares, incorporated in England & Wales, registered number 01211144 . The registered office is 10 Sheene Road, Leicester, LE4 1BF.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.

2.2. Basis Of Consolidation

The consolidated profit and loss account and balance sheet include the financial statements of the company and its subsidiary undertakings made up to 31 March 2025. The results of subsidiaries sold or acquired are included in the profit and loss account up to, or from the date control passes. Intra-group sales and profits are eliminated fully on consolidation.

2.3. Going Concern Disclosure

The financial statements have been prepared on a going concern basis. In assessing the appropriateness of this basis, the Director have considered below both the challenges currently facing the business and the actions being taken to address them. While the operating environment remains difficult, the Director has taken steps to stabilise the Group and believe these provide a reasonable basis for preparing the financial statements on a going concern basis.

During the financial year ending 2026, the Group's trading performance has been significantly affected by the loss of a major customer that accounted for 72% of gross sales in FY2025 (67% in FY2024). This loss has placed pressure on revenue and cash flow. To support the business through this period, the Group obtained a £200,000 loan from Equifyve Limited and a £330,000 loan from its shareholders.

The Group is pursuing a strategy to diversify its revenue base, including the launch of a new part and stock item. While initial sales have been encouraging, the product is at an early stage of market development, and it will take time to assess whether it can generate sufficient and sustainable revenue to offset the loss of the former customer.

The Group also plans to complete a sale and leaseback of its property, with anticipated gross proceeds of approximately £3.8 million. The Director expects that the proceeds from this transaction, after repayment of the associated bank loan and related costs, would provide additional liquidity to support the Group’s ongoing operations. As the transaction has not yet completed and remains subject to contractual agreement and completion, the timing and certainty of the proceeds have been considered when assessing the appropriateness of the going concern basis.

The Parent Company breached a financial covenant attached to its bank facility in September 2025. The directors are confident that the breach will be remedied as part of the company’s wider debt restructuring arrangements.

In addition, included within other debtors is £472,158 due from three companies connected to a former director. The Director believes these balances to be recoverable and confirm that active discussions are ongoing with the relevant parties regarding repayment of the outstanding amounts.

2.4. Significant judgements and estimations

The group makes estimates and assumptions concerning the future. Management are also required to exercise judgement in the process of applying the group accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors,including expectations of future events that are believed to be reasonable under the circumstances.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:

Depreciation and residual values

The director has reviewed the asset lives and associated residual values of all fixed asset classes, and in particular, the useful economic lives and residual values of fixture & fittings and plant & machinery, and have concluded that asset lives and residual values are appropriate.

The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and project disposal values.

Finished Goods

Stock includes attributable labour and overheads and are based on management's estimate of the absorption of fixed and variable costs in the manufacturing process excluding selling and marketing costs.

Leases

The director determines whether leases entered into by the company either as a lessor or a lessee are operating lease or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis based on an evaluation of the terms and conditions of the arrangements, and accordingly whether the lease requires an asset and liability to be recognised in the statement of financial position.

Page 15

Page 16

Kaby Engineers Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

2.5. Turnover

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

Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods.

2.6. Research and Development

Intangible fixed assets represent capitalised research and development costs. No amortisation is to be applied in the year of acquisition. The balance as at 31 March 2025 will be amortised over one year.

2.7. Tangible Fixed Assets and Depreciation

Tangible fixed assets include investment properties professionally valued by Chartered Surveyors on an existing use open market value basis. Tangible fixed assets other than freehold land are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows:

Freehold	2% per annum of cost or valuation
Leasehold	Straight line over 7 years
Plant & Machinery	10%-50% per annum of cost & 15% reducing balance
Motor Vehicles	20% per annum of cost & 25% reducing balance
Tool Holders	20% reducing balance
Office Equipment	20% reducing balance

2.8. Investments

Fixed asset investments are stated at cost less provision for diminution in value.

2.9. Leasing and Hire Purchase Contracts

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 or the lease term, whichever is the shorter.

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

Rentals paid / received under operating leases are charged / credited to the profit and loss account on a straight line basis over the period of the lease.

2.10. Stocks and Work in Progress

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 includes all direct expenditure and an appropriate proportion of fixed and variable overheads on a first in, first out basis.

2.11. Foreign Currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Page 16

Page 17

Kaby Engineers Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

2.12. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

2.13. Pensions

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

3. Turnover

Analysis of turnover by geographical market is as follows:

	2025	2024
	£	£
United Kingdom	10,476,059	13,031,651
Europe	2,672,138	3,779,625
North America	-	611,901
Rest of the world	617,128	232,837

	13,765,325	17,656,014

4. Operating Profit

The operating profit is stated after charging:

	2025	2024
	£	£
Bad debts	275,510	-
Operating lease rentals	143,500	143,500
Depreciation of tangible fixed assets - owned	349,949	295,121
Depreciation of tangible fixed assets - finance leases and hire purchase contracts	11,988	27,163
Amortisation of intangible fixed assets	94,612	94,596

5. Auditor's Remuneration

Remuneration received by the group's auditors and their associates during the year was as follows:

	2025	2024
	£	£
Audit Services
Audit of the company's financial statements	20,010	13,535

Page 17

Page 18

Kaby Engineers Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

6. Staff Costs

Staff costs, including directors' remuneration, were as follows:

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Wages and salaries	3,477,682	4,402,762	3,477,682	4,402,762
Social security costs	302,677	366,827	302,677	366,827
Other pension costs	71,081	79,570	71,081	79,570

	3,851,440	4,849,159	3,851,440	4,849,159

7. Average Number of Employees

Average number of employees, including directors, during the year was as follows:

	Group		Company
	2025	2024	2025	2024
Staff	20	23	20	23
Production	95	126	95	126

	115	149	115	149

8. Director's remuneration

	2025	2024
	£	£
Emoluments	80,672	148,523
Company contributions to money purchase pension schemes	-	1,187

	80,672	149,710

9. Interest Receivable and Similar Income

	2025	2024
	£	£
Other interest receivable	5,487	248

10. Interest Payable and Similar Charges

	2025	2024
	£	£
Bank loans and overdrafts	297,073	386,234
Finance charges payable under finance leases and hire purchase contracts	4,967	6,409

	302,040	392,643

Page 18

Page 19

Kaby Engineers Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

11. Tax on Profit

	Tax Rate		2025	2024
The tax (credit)/charge on the profit for the year was as follows:
	2025	2024	£	£
Current tax
UK Corporation Tax	25.0%	25.0%	-	-


The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
			2025	2024
			£	£
Profit before tax			146,316	45,472

Tax on profit at 25% (UK standard rate)			36,579	11,368
Goodwill/depreciation not allowed for tax			113,926	100,845
Expenses not deductible for tax purposes			64,821	5,642
Tax losses utilised			(111,602 )	(44,732 )
Capital allowances			(103,724 )	(73,123 )

Total tax charge for the period			-	-

The amount of unused tax losses is £7,957,625 (2024 £8,404,035). There is no expiry date on timing differences and unused tax losses.

12. Intangible Assets

Group

	Development Costs
	£
Cost
As at 1 April 2024	473,000

As at 31 March 2025	473,000

Amortisation
As at 1 April 2024	378,388
Provided during the period	94,612

As at 31 March 2025	473,000

Net Book Value
As at 31 March 2025	-

As at 1 April 2024	94,612

Page 19

Page 20

Kaby Engineers Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

Company

	Development Costs
	£
Cost
As at 1 April 2024	473,000

As at 31 March 2025	473,000

Amortisation
As at 1 April 2024	378,388
Provided during the period	94,612

As at 31 March 2025	473,000

Net Book Value
As at 31 March 2025	-

As at 1 April 2024	94,612

13. Tangible Assets

Group

	Land & Property
	Freehold	Plant & Machinery	Motor Vehicles	Tool Holders	Total
	£	£	£	£	£
Cost or Valuation
As at 1 April 2024	3,700,000	14,224,959	126,421	-	18,051,380
Additions	-	207,241	13,000	99,692	319,933

As at 31 March 2025	3,700,000	14,432,200	139,421	99,692	18,371,313

Depreciation
As at 1 April 2024	-	13,183,901	69,722	-	13,253,623
Provided during the period	42,415	279,310	20,274	19,938	361,937

As at 31 March 2025	42,415	13,463,211	89,996	19,938	13,615,560

Net Book Value
As at 31 March 2025	3,657,585	968,989	49,425	79,754	4,755,753

As at 1 April 2024	3,700,000	1,041,058	56,699	-	4,797,757

Freehold land and buildings was revalued on 2 July 2024 by Avison Young (UK) Limited in accordance with the RICS Valuation Global

Standards effective from 31 January 2022 and the Red Book UK National Supplement effective from 1 May 2024.This was

incorporated into the 2024 accounts. If freehold land and buildings had not been revalued it would have been included at a cost of

£2,157,363.

Tool Holders was revalued 31st March 2025 by the directors. This was incorporated into the 2025 accounts. If Tool Holders had not been revalued it would have been included at a cost of NIL.

Included above are assets held under finance leases or hire purchase contracts with a net book value as follows:

	2025	2024
	£	£
Motor Vehicles	21,960	33,949

Page 20

Page 21

Kaby Engineers Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

Company

	Land & Property
	Freehold	Plant & Machinery	Motor Vehicles	Tool Holders	Total
	£	£	£	£	£
Cost or Valuation
As at 1 April 2024	3,700,000	14,148,868	126,421	-	17,975,289
Additions	-	207,241	13,000	99,692	319,933

As at 31 March 2025	3,700,000	14,356,109	139,421	99,692	18,295,222

Depreciation
As at 1 April 2024	-	13,121,136	69,722	-	13,190,858
Provided during the period	42,415	277,310	20,274	19,938	359,937

As at 31 March 2025	42,415	13,398,446	89,996	19,938	13,550,795

Net Book Value
As at 31 March 2025	3,657,585	957,663	49,425	79,754	4,744,427

As at 1 April 2024	3,700,000	1,027,732	56,699	-	4,784,431

Freehold land and buildings was revalued on 2 July 2024 by Avison Young (UK) Limited in accordance with the RICS Valuation Global

Standards effective from 31 January 2022 and the Red Book UK National Supplement effective from 1 May 2024.This was

incorporated into the 2024 accounts. If freehold land and buildings had not been revalued it would have been included at a cost of

£2,157,363.

Tool Holders was revalued 31st March 2025 by the directors. This was incorporated into the 2025 accounts. If Tool Holders had not been revalued it would have been included at a cost of NIL.

14. Investments

Company

	Subsidiaries
	£
Cost
As at 1 April 2024	250,752

As at 31 March 2025	250,752

Provision
As at 1 April 2024	-

As at 31 March 2025	-

Net Book Value
As at 31 March 2025	250,752

As at 1 April 2024	250,752

Subsidiaries

Details of the group's subsidiaries as at 31 March 2025 are as follows:

Name of undertaking	Registered Office	Class of shares held	Direct holding	Indirect holding
Cadet Engineering Limited	10 Sheene Road,Leicester,England,LE4 1BF	Ordinary	100.00%	-

The aggregate capital and reserves and the result for the year of the subsidiaries listed above was as follows:

Page 21

Page 22

Kaby Engineers Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

	Capital and Reserves	Profit/(loss)
	£	£
Cadet Engineering Limited	(265,583 )	61,890

15. Stocks

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Materials	512,645	612,433	512,645	612,433
Finished goods	327,617	584,394	327,617	584,394
Work in progress	457,799	731,089	457,799	731,089

	1,298,061	1,927,916	1,298,061	1,927,916

16. Debtors

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Due within one year
Trade debtors	1,078,930	1,627,610	1,078,930	1,627,610
Prepayments and accrued income	70,637	113,069	70,637	113,069
Other debtors	475,999	752,217	475,999	752,217
Amounts owed by group undertakings	-	-	276,009	339,899

	1,625,566	2,492,896	1,901,575	2,832,795

17. Creditors: Amounts Falling Due Within One Year

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Net obligations under finance lease and hire purchase contracts	43,332	14,774	43,332	14,774
Trade creditors	1,008,367	1,832,597	1,008,368	1,832,597
Bank loans and overdrafts	129,808	354,250	129,808	354,250
Other taxes and social security	69,152	71,641	69,152	71,641
VAT	107,775	152,166	107,775	152,166
Other creditors	69,925	87,043	69,925	87,043
Invoice Finance	863,658	1,353,770	863,658	1,353,770
Accruals and deferred income	94,952	84,371	94,052	83,471

	2,386,969	3,950,612	2,386,070	3,949,712

Page 22

Page 23

Kaby Engineers Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

18. Creditors: Amounts Falling Due After More Than One Year

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Net obligations under finance lease and hire purchase contracts	147,683	25,759	147,683	25,759
Bank loans	2,444,722	1,762,813	2,444,722	1,762,813
Other creditors	500,000	994,431	500,000	994,431

	3,092,405	2,783,003	3,092,405	2,783,003

19. Loans

An analysis of the maturity of loans is given below:

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Amounts falling due within one year or on demand:
Bank loans	129,808	354,250	129,808	354,250

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Amounts falling due between one and five years:
Bank loans	519,233	1,047,813	519,233	1,047,813

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Amounts falling due after more than five years:
Bank loans	1,925,489	715,000	1,925,489	715,000

The bank loan is secured by a fixed and floating charge over the property and the assets of the company which has a net book value of £3,657,585 at the reporting date.

The bank loan terms of repayments are 238 months respectively at 31st March 2025 and interest is payable at 2.90% over base rate on the principal amount.

20. Obligations Under Finance Leases and Hire Purchase

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
The future minimum finance lease payments are as follows:
Not later than one year	43,332	14,774	43,332	14,774
Later than one year and not later than five years	147,683	25,759	147,683	25,759

	191,015	40,533	191,015	40,533

	191,015	40,533	191,015	40,533

Page 23

Page 24

Kaby Engineers Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

21. Share Capital

	2025	2024
Allotted, called up and fully paid	£	£
500,000 Ordinary Shares of £ 0.20 each	100,000	100,000

22. Other Commitments

The total of future minimum lease payments under non-cancellable operating leases are as following:

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Not later than one year	130,000	131,250	130,000	131,250
Later than one year and not later than five years	246,667	186,667	246,667	186,667

	376,667	317,917	376,667	317,917

23. Pension Commitments

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund.

During the year the charge to the profit and loss account in respect of defined contribution schemes was £71,081 (2024: £79,570).

At the balance sheet date contributions of £18,375 (2024 - £22,569) were due to the fund and are included in Other creditors.

24. Related Party Disclosures

The group has taken advantage of exemption, under 33.1A of the Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", not to disclose transactions with wholly owned subsidiaries within the group.

The below are related by common shareholder.

Included in other creditors is a unsecured loan of £0 (2024 - £494,431).

Included within other debtors is an unsecured loan of £472,158 (2024: £747,668). This amount is stated net of interest. A provision of £275,510 has been made for bad debts.

The below are related by common control.

During the year the company was charged rent, maintenance and property insurance of £94,330 (2024 - £73,575) by BPC (Holdings) Ltd.

Included in trade creditors is a rent deposit of £30,000 (2024 £30,000) paid to BPC Holdings Ltd.

During the year the company paid £42,173 (2024 £42,991) for IT services & business rates received from BPC Electronics

Ltd.

Included in other creditors is a secured loan of £500,000 (2024 £500,000) from The Sanghera Trust. The amount is net of

interest. Interest accrued during the year amounted to £32,548 (2024 £31,879).

The below are related by director control.

During the year the company purchased an asset from Mr S Williams a director of the company for £13,000.

25. Controlling Parties

The group is controlled by the Sanghera family trusts.

Page 24

Director	Mr S T Williams

Secretary	Mr S T Williams

Company Number	01211144

Registered Office	10 Sheene Road
	Leicester
	LE4 1BF

Auditors	SFB Group Limited
	Manor Court Chambers
	Townsend Drive
	Nuneaton
	Warwickshire
	CV11 6RU