REGISTERED NUMBER: 06523925 (England and Wales)

TREHARNE AUTOMOTIVE ENGINEERING LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 DECEMBER 2024

Page

Company Information

1

Balance Sheet

2

Statement of Changes in Equity

3

Notes to the Financial Statements

4

DIRECTORS:

A Victoria

G Kostopoulos

G Heald

Mr J Bates

REGISTERED OFFICE:

Treharne Workshops

Llanelli Gate

Dafen

Llanelli

Carmarthenshire

SA14 8LQ

REGISTERED NUMBER:

06523925 (England and Wales)

AUDITORS:

Bevan Buckland LLP

Chartered Accountants

And Statutory Auditors

Ground Floor Cardigan House

Castle Court

Swansea Enterprise Park

Swansea

SA7 9LA

FIXED ASSETS

Tangible assets

5

280,955

323,796

CURRENT ASSETS

Stocks

6

21,453

277,776

Debtors

7

1,518,399

653,323

Cash at bank and in hand

63,063

45,276

1,602,915

976,375

CREDITORS

Amounts falling due within one year

8

3,772,489

2,753,878

NET CURRENT LIABILITIES

(2,169,574

)

(1,777,503

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(1,888,619

)

(1,453,707

)

CREDITORS

Amounts falling due after more than one year

9

5,575

11,148

NET LIABILITIES

(1,894,194

)

(1,464,855

)

CAPITAL AND RESERVES

Called up share capital

2

2

Capital redemption reserve

10

3

3

Retained earnings

10

(1,894,199

)

(1,464,860

)

SHAREHOLDERS' FUNDS

(1,894,194

)

(1,464,855

)

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 31 December 2025 and were signed on its behalf by:

A Victoria - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

2

(683,379

)

3

(683,374

)

Changes in equity

Total comprehensive income

-

(781,481

)

-

(781,481

)

Balance at 31 December 2023

2

(1,464,860

)

3

(1,464,855

)

Changes in equity

Total comprehensive income

-

(429,339

)

-

(429,339

)

Balance at 31 December 2024

2

(1,894,199

)

3

(1,894,194

)

1.	STATUTORY INFORMATION

Treharne Automotive Engineering 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.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	GOING CONCERN

The board of the company and the boards of the group are actively looking to improve profitability in their strategic plans. The company is collaborating with a fellow group entity to become a market leader in the recycling of lithium-ion batteries. Significant research and development is performed at the company and the directors are confident that the company will return to making profits in future periods once this research and development is complete.

These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. However, the directors are aware of certain uncertainties which may cause doubt on the company's ability to continue as a going concern.

The company continues to be dependent on the parent company and fellow group entities to enable them to meet their current obligations as they fall due. The ability of the company to continue operating as a going concern depends on the willingness of the parent company and fellow group entities to continue their support.

The financial statements do not include the adjustments that would result if the company were unable to continue as a going concern.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Turnover

Turnover from the sale of goods is recognised when the company has transferred the significant risks and rewards of ownership to the buyer, which generally occurs when the goods are delivered to the customer and legal title has passed. Turnover from services is recognised in the accounting period in which the services are rendered.

Turnover represents the value, net of value added tax and discounts, of goods provided to customers and work carried out in respect of services provided to customers.

Tangible fixed assets

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

Improvements to property

-

20% reducing balance

Plant and Machinery

-

25% reducing balance and 20% on cost

Fixtures and fittings

-

25% reducing balance

Motor vehicles

-

20% on cost

Computer equipment

-

33% on cost

Stocks and work in progress

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

Inventories are stated at the lower of cost and estimated selling price less costs to sell. Inventories are recognised as an expense in the period in which the related revenue is recognised. Cost includes the purchase price, including taxes and duties and transport and handling directly attributable to bringing the inventory to its present location and condition.

At the end of each reporting period inventories are assessed for impairment. If an item of inventory is impaired, the identified inventory is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.

Work in progress represents the cost of partially completed goods or services that are yet to be billed to either fellow group entities or external customers. Work in progress is measured at the lower of cost and net realisable value. Costs include direct materials, direct labour and travel expenses. Costs incurred on work in progress are recognised as an asset when it is probable that future economic benefits will flow to the entity and the costs are measured reliably.

Financial instruments

The company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other receivables, payables and amounts due to and from related parties.

Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Debt instruments like loans and other receivables and payables are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss. For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying value and the present value of estimated cash flows discounted at the assets original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount recognised in the balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. At each reporting date non-financial assets not carried at fair value, such as property, plant and equipment are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets, which is the higher of value in use and the fair value less costs to sell, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit or loss.

If an impairment loss is subsequently reversed, the carrying amount of the asset or group of related assets is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset or group of related assets in prior periods. A reversal of an impairment loss is recognised immediately in profit or loss.

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.

Research and development

Where research and development activities do not meet the recognition criteria of an intangible asset fixed asset, it is written off in the year in which it is incurred.

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.

Government grants

Government grants are recorded initially as deferred income and recognised in the income statement in line with the expense to which they contribute. For grants in respect of the purchase of plant and equipment, the deferred income is released over the life of the related asset.

Warranty provision

Provisions for warranties are recognised when the company has a present legal or constructive obligation as a result of a past event; it is probable that an outflow of resources will be required to settle the obligation; and a reliable estimate can be made of the amount of the obligation.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments held within a deposit or similar account.

Creditors

Creditors are recognised where the company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 26 (2023 - 24 ) .

5.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

Machinery

fittings

£

£

£

COST

At 1 January 2024

113,072

234,101

87,196

Additions

-

39,667

-

Disposals

-

(12,163

)

-

At 31 December 2024

113,072

261,605

87,196

DEPRECIATION

At 1 January 2024

34,630

55,967

53,392

Charge for year

15,688

44,192

8,451

At 31 December 2024

50,318

100,159

61,843

NET BOOK VALUE

At 31 December 2024

62,754

161,446

25,353

At 31 December 2023

78,442

178,134

33,804

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 January 2024

-

67,988

502,357

Additions

8,491

5,570

53,728

Disposals

-

-

(12,163

)

At 31 December 2024

8,491

73,558

543,922

DEPRECIATION

At 1 January 2024

-

34,572

178,561

Charge for year

283

15,792

84,406

At 31 December 2024

283

50,364

262,967

NET BOOK VALUE

At 31 December 2024

8,208

23,194

280,955

At 31 December 2023

-

33,416

323,796

6.

STOCKS

2024

2023

£

£

Stocks

21,453

85,922

Work-in-progress

-

191,854

21,453

277,776

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

174,014

136,652

Amounts owed by group undertakings

1,299,721

421,686

Other debtors

44,664

94,985

1,518,399

653,323

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade creditors

28,093

31,169

Amounts owed to group undertakings

3,668,655

2,644,105

Taxation and social security

40,867

39,608

Other creditors

34,874

38,996

3,772,489

2,753,878

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024

2023

£

£

Other creditors

5,575

11,148

10.

RESERVES

Capital

Retained

redemption

earnings

reserve

Totals

£

£

£

At 1 January 2024

(1,464,860

)

3

(1,464,857

)

Deficit for the year

(429,339

)

(429,339

)

At 31 December 2024

(1,894,199

)

3

(1,894,196

)

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

The Report of the Auditors was unqualified.

Llinos Williams (Senior Statutory Auditor)

for and on behalf of Bevan Buckland LLP

In forming our opinion on the financial statements which is not modified, we have considered the adequacy of the disclosure in the full financial statements concerning the company's ability to continue as a going concern.

The company is reporting net liabilities at the period end and continues to be dependent on the parent company for it's financial support. However in the event financial support was not available from the Parent company, then the company may not be able to continue in existence for the foreseeable future. Due to the uncertainty surrounding the continuation of group support, a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern.

The financial statements do not include the adjustments that would result if the company were unable to continue as a going concern.

12.	CONTINGENT LIABILITIES

The company is currently involved in an ongoing legal dispute. The outcome of this litigation is uncertain, and it is not possible to predict the final result at this time. The amount of any potential liability cannot be reasonably estimated at this stage. Accordingly, no provision has been made in the financial statements. The company will continue to monitor the situation and will recognize a provision if it becomes probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made.

13.	RELATED PARTY DISCLOSURES

During the year the company entered into transactions, in the ordinary course of business, with fellow group entities. The balances outstanding at 31 December 2024 are as follows:-

2024

2023

ATCDT Corporation

Amounts owed to fellow group entity

(615,275

)

(2,543,558

)

Amounts owed by fellow group entity relating to group projects

624,442

191,854

ATC Drive Train UK Limited

Amounts owed by fellow group entity

(2,990,284

)

404,066

Treharne Holdings Limited

Amounts owed to fellow group entity

(63,096

)

(61,268

)

EV Recycling Limited

Amounts owed by/(to) fellow group entity

660,420

(39,279

)

EV Marine Limited

Amounts owed by fellow group entity

14,859

17,620

14.	ULTIMATE PARENT COMPANY

ATCDT Corporation is the ultimate parent company as they own 100% of the share capital in Treharne Automotive Engineering Limited. There is no deemed ultimate controlling party.