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Registration number: 01810526

Manthorpe Engineering Limited
Annual Report and Financial Statements
for the Year Ended 30 April 2025

Manthorpe Engineering Limited

Contents

Company Information | 1
Strategic Report | 2 to 3
Directors' Report | 4
Statement of Directors' Responsibilities | 5
Independent Auditor's Report | 6 to 9
Profit and Loss Account | 10
Balance Sheet | 11
Statement of Changes in Equity | 12
Notes to the Financial Statements | 13 to 26

Manthorpe Engineering Limited

Company Information

Directors | Mr P G Pochciol Mrs C S Pochciol Mr M Elliot Mr T F Pochciol

Company secretary | Mrs C S Pochciol

Registered office | Forty Horse Close Codnor Gate Business Park Ripley DE5 3ND

Auditors | Page Kirk LLP Chartered Accountants and Statutory AuditorsSherwood House 7 Gregory Boulevard Nottingham NG7 6LB

Manthorpe Engineering Limited

Strategic Report for the Year Ended 30 April 2025

The directors present their strategic report for the year ended 30 April 2025.

Principal activity

The principal activity of the Company is engineering manufacture and design.

Fair review of the business

The financial year has been marked by strong performance and strategic investment. The Company has achieved notable growth in both turnover and profit before tax, reflecting robust demand, operational efficiency, and effective cost management.

Financial Performance

• | Turnover increased by 5%

• | Profit before tax rose by 48%, driven by margin improvements

This growth underscores the Company’s resilience and ability to adapt to market dynamics while maintaining profitability.

Strategic Investments
To support future growth and enhance operational capabilities, the Company has:

• | Committed investment in additional advanced machine tools, which will support the manufacture of larger components and allow the Company to enter new markets

• | Drawn up plans to expand its machine shop space, enabling increased production capacity

These investments are aligned with the Company’s long-term strategy to strengthen its competitive position, improve service delivery, and meet evolving customer demands.

Outlook
Looking ahead, the Company is well-positioned to capitalize on its enhanced infrastructure. Key priorities include:

• | Leveraging new capacity to pursue the manufacture of larger components

• | Continuing to invest in workforce development to support the use of new technologies

• | Exploring opportunities in new markets and sectors where precision engineering is in high demand

Conclusion
The Company’s strong financial performance and strategic investments reflect a clear commitment to sustainable growth. With a solid foundation and forward-looking initiatives, the business is well-equipped to navigate future challenges and seize new opportunities.

Manthorpe Engineering Limited

Strategic Report for the Year Ended 30 April 2025

Principal risks and uncertainties

The principal risk faced by the business is the failure of its main customers. This risk is mitigated by the development of the customer base.
Price risk is managed by the business model through which goods are manufactured to order with prices agreed at the tender stage. The short- and longer-term effects of inflation are also considered.
Exposure to credit risk is minimised by the performance of credit checks on all new customers and ongoing monitoring of existing customers.
Cashflow risk continues to be managed through a system of internal controls and monitoring procedures to keep the working capital cycle as short as possible with a strong emphasis on clearly identifying the group's cash requirements in the short, medium and long-term taking into account future expected rates of inflation.
Risks in relation to recruitment and staff retention are mitigated by offering high levels of training, internal career development and industry competitive salary levels.

Approved and authorised by the Board on 25 November 2025 and signed on its behalf by:

Mrs C S Pochciol Company secretary and director

Manthorpe Engineering Limited

Directors' Report for the Year Ended 30 April 2025

The directors present their report and the financial statements for the year ended 30 April 2025.

Directors of the Company

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

Mr P G Pochciol

Mrs C S Pochciol - Company secretary and director

Mr M Elliot

Mr T F Pochciol

Results and dividends

The profit for the year, after taxation, amounted to £1,008,582 (2024 - £806,134)

Financial instruments

Objectives and policies

The directors have implemented procedures to minimise risks wherever possible.

Price risk, credit risk, liquidity risk and cash flow risk

Please see Principle risks and uncertainties in the Strategic Report.

Going concern

After reviewing the group's forecasts and projections, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The group therefore continues to adopt the going concern basis in preparing its consolidated financial statements.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the Company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

Page Kirk LLP have expressed their willingness to continue as auditors for the next financial year.

Approved and authorised by the Board on 25 November 2025 and signed on its behalf by:

Mrs C S Pochciol Company secretary and director

Manthorpe Engineering Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to:

• | select suitable accounting policies and apply them consistently;

• | make judgements and accounting estimates that are reasonable and prudent;

• | state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Manthorpe Engineering Limited

Independent Auditor's Report to the Members of Manthorpe Engineering Limited

Opinion

We have audited the financial statements of Manthorpe Engineering Limited (the 'Company') for the year ended 30 April 2025, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• | give a true and fair view of the state of the Company's affairs as at 30 April 2025 and of its profit for the year then ended;
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• | have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Manthorpe Engineering Limited

Independent Auditor's Report to the Members of Manthorpe Engineering Limited

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 directors are 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.

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 course of 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• | the Strategic Report and Directors' 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 Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
• | the financial statements are not in agreement with the accounting records and returns; or
• | certain disclosures of directors' remuneration specified by law are not made; or
• | we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities, set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine 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 directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Manthorpe Engineering Limited

Independent Auditor's Report to the Members of Manthorpe Engineering Limited

Auditor 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:

We obtained an understanding of the legal and regulatory frameworks within which the Company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, taxation legislation and money laundering regulations.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and the understatement of revenue. Our audit procedures to respond to these risks included:

• | Enquiries of management about their own identification and assessment of the risks of irregularities.
• | Sample testing on the posting of journals.
• | Reviewing regulatory correspondence and professional fees.
• | Detailed substantive testing on the completeness of income.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance with all laws and regulations. These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor’s report.

Manthorpe Engineering Limited

Independent Auditor's Report to the Members of Manthorpe Engineering Limited

Use of our report

This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in 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.

John Wallis FCA (Senior Statutory Auditor)
For and on behalf of
Page Kirk LLP
Chartered Accountants and Statutory Auditor
Sherwood House
7 Gregory Boulevard
Nottingham
NG7 6LB

25 November 2025

Manthorpe Engineering Limited

Profit and Loss Account for the Year Ended 30 April 2025

| Note | 2025 £ | 2024 £
Turnover | 3 | 12,453,410 | 11,865,882
Cost of sales |  | (8,532,625) | (8,595,616)
Gross profit |  | 3,920,785 | 3,270,266
Administrative expenses |  | (2,577,555) | (2,358,771)
Operating profit | 4 | 1,343,230 | 911,495
Other interest receivable and similar income | 5 | 50 | 48
Interest payable and similar expenses | 6 | - | (1,120)
|  | 50 | (1,072)
Profit before tax |  | 1,343,280 | 910,423
Tax on profit | 10 | (334,698) | (104,289)
Profit for the financial year |  | 1,008,582 | 806,134

The above results were derived from continuing operations.

The Company has no recognised gains or losses for the year other than the results above.

Manthorpe Engineering Limited

(Registration number: 01810526)
Balance Sheet as at 30 April 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |  |  |
Intangible assets | 11 |  | 31,947 |  | 47,709
Tangible assets | 12 |  | 1,778,895 |  | 1,778,419
|  |  | 1,810,842 |  | 1,826,128
Current assets |  |  |  |  |
Stocks | 13 | 2,244,761 |  | 1,986,485 |
Debtors | 14 | 3,681,259 |  | 2,338,041 |
Cash at bank and in hand |  | 2,306,235 |  | 1,951,870 |
|  | 8,232,255 |  | 6,276,396 |
Creditors: Amounts falling due within one year | 16 | (3,062,168) |  | (2,165,497) |
Net current assets |  |  | 5,170,087 |  | 4,110,899
Total assets less current liabilities |  |  | 6,980,929 |  | 5,937,027
Provisions for liabilities | 17 |  | (247,169) |  | (211,849)
Net assets |  |  | 6,733,760 |  | 5,725,178
Capital and reserves |  |  |  |  |
Called up share capital |  | 15,000 |  | 15,000 |
Profit and loss account |  | 6,718,760 |  | 5,710,178 |
Shareholders' funds |  |  | 6,733,760 |  | 5,725,178

Approved and authorised by the Board on 25 November 2025 and signed on its behalf by:

Mr P G Pochciol Director

Manthorpe Engineering Limited

Statement of Changes in Equity for the Year Ended 30 April 2025

| Share capital £ | Profit and loss account £ | Total £
At 1 May 2024 | 15,000 | 5,710,178 | 5,725,178
Profit for the year | - | 1,008,582 | 1,008,582
At 30 April 2025 | 15,000 | 6,718,760 | 6,733,760

| Share capital £ | Profit and loss account £ | Total £
At 1 May 2023 | 15,000 | 4,904,044 | 4,919,044
Profit for the year | - | 806,134 | 806,134
At 30 April 2024 | 15,000 | 5,710,178 | 5,725,178

Manthorpe Engineering Limited

Notes to the Financial Statements for the Year Ended 30 April 2025

1 | General information

The Company is a private company limited by share capital, incorporated in United Kingdom.

The address of its registered office is:
Forty Horse Close
Codnor Gate Business Park
Ripley
DE5 3ND

These financial statements were authorised for issue by the Board on 25 November 2025.

2 | Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

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.

Summary of disclosure exemptions

The directors have elected to take advantage of the following disclosure exemptions as permitted under FRS 102:
Preparation of a Statement of Cash Flows and the associated disclosures under Section 7 of FRS 102 (as permitted by S.1.12) on the basis that these have been included within the Consolidated Statement of Cash Flows of the ultimate parent entity's Consolidated Group Financial Statements.
Disclosure of key management personnel under the exemption provided by S.33.7A FRS 102.

Name of parent of group

These financial statements are consolidated in the financial statements of Manthorpe Holdings Limited.

The financial statements of Manthorpe Holdings Limited may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.

Going concern

The national and international economic outlook has been and will continue to be negatively affected by inflationary pressures and challenging labour market conditions. After assessing the potential impacts and other operational risks, the directors expect the company to have adequate resources and projected revenue streams to continue in operational existence for the foreseeable future and, therefore, continue to adopt the going concern basis in preparing the company's financial statements.

Manthorpe Engineering Limited

Notes to the Financial Statements for the Year Ended 30 April 2025

Key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates. In relation to the sale of goods, the entity is deemed to have transferred the significant risks and rewards of ownership to the customer at the point of collection, despatch or the customer taking title and accepting billing.
Revenue and costs on construction contracts are recognised with reference to anticipated contract revenue and the stage of contract completion taking into account costs incurred to date relative to total anticipated costs, production milestones and management assessments. The carrying amount is £1,365,410 (2024 - £1,308,685).

Foreign currency transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Profit and Loss Account within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Revenue recognition

Revenue 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. The following criteria must also be met before revenue is recognised:

Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

• | the Company has transferred the significant risks and rewards of ownership to the buyer;

• | the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

• | the amount of revenue can be measured reliably;

• | it is probable that the Company will receive the consideration due under the transaction; and

• | the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Manthorpe Engineering Limited

Notes to the Financial Statements for the Year Ended 30 April 2025

Construction contracts
When the outcome of a contract can be measured reliably, the entity will recognise both income and costs by reference to the percentage of completion of the contract. If the outcome cannot be reliably measured, all costs are expensed and revenue is only recognised to the extent that it is probable that costs are recoverable.
When it is probable that a loss will occur on a contract, this is recognised in full immediately as an onerous contract provision. Interest, royalties and dividends interest income is recognised on an effective interest method and is adjusted for fees and finance charges. Amounts invoiced in advance are recognised as deferred income and matched to costs as the contract progresses.

Leases

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.

Government grants

Government grants are accounted for using the accrual model.

Finance income and costs policy

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Defined contribution pension obligation

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 Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Tax

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 balance sheet date in the countries where the Company operates and generates income.

Manthorpe Engineering Limited

Notes to the Financial Statements for the Year Ended 30 April 2025

Deferred tax balances are recognised in respect of all timing differences that have originated but not
reversed by the balance sheet 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 balance sheet date.

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
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.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class | Amortisation method and rate
Software | 33% straight line method

Tangible 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.

Depreciation

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
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.
Depreciation is provided on the following basis:

Asset class | Depreciation method and rate
Plant and machinery | 10% to 25% on cost
Motor vehicles | 12.5% to 33 1/3% on cost
Fixtures and fittings | 25% to 33 1/3% on cost
Tooling | 12.5% to 100% on cost

Manthorpe Engineering Limited

Notes to the Financial Statements for the Year Ended 30 April 2025

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
Long term contracts in progress are valued at cost, comprising direct expenditure and attributable overheads, together with a proportion of the estimated total profit earned on the work completed to date, less progress payments received and receivable. Provision is made for all losses expected to arise on completion of the contracts.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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. No element of profit is included in the valuation of work in progress.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Manthorpe Engineering Limited

Notes to the Financial Statements for the Year Ended 30 April 2025

Provisions

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Financial instruments

Classification
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Recognition and measurement
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 the Profit and Loss Account.
Financial assets and liabilities are offset and the net amount reported 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.

Manthorpe Engineering Limited

Notes to the Financial Statements for the Year Ended 30 April 2025

3 | Turnover

The analysis of the Company's turnover for the year by class of business is as follows:

| 2025 £ | 2024 £
Construction contracts | 10,693,706 | 10,365,708
Sale of goods | 1,759,704 | 1,500,174
| 12,453,410 | 11,865,882

The analysis of the Company's turnover for the year by market is as follows:

| 2025 £ | 2024 £
UK | 11,490,834 | 11,440,850
Europe | 68,205 | -
North America | 455,282 | 425,032
Rest of world | 439,089 | -
| 12,453,410 | 11,865,882

4 | Operating profit

Arrived at after charging/(crediting)

| 2025 £ | 2024 £
Depreciation expense | 517,547 | 514,587
Amortisation expense | 15,762 | 15,762
Profit on disposal of property, plant and equipment | (29,847) | (4,700)

5 | Other interest receivable and similar income

| 2025 £ | 2024 £
Interest income on bank deposits | 50 | 48

6 | Interest payable and similar expenses

| 2025 £ | 2024 £
Interest expense on other finance liabilities | - | 1,120

Manthorpe Engineering Limited

Notes to the Financial Statements for the Year Ended 30 April 2025

7 | Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

| 2025 £ | 2024 £
Wages and salaries | 3,684,101 | 3,246,530
Social security costs | 384,476 | 332,457
Other short-term employee benefits | 15,931 | 8,140
Pension costs, defined contribution scheme | 112,655 | 95,988
| 4,197,163 | 3,683,115

The average number of persons employed by the Company (including directors) during the year, analysed by category was as follows:

| 2025 No. | 2024 No.
Production | 66 | 63
Administration and support | 27 | 26
| 93 | 89

8 | Directors' remuneration

The directors' remuneration for the year was as follows:

| 2025 £ | 2024 £
Remuneration | 86,437 | 89,482
Contributions paid to money purchase schemes | 3,347 | 3,135
| 89,784 | 92,617

During the year the number of directors who were receiving benefits and share incentives was as follows:

| 2025 No. | 2024 No.
Accruing benefits under money purchase pension scheme | 1 | 1

9 | Auditors' remuneration

| 2025 £ | 2024 £
Audit of the financial statements | 11,140 | 10,900

Manthorpe Engineering Limited

Notes to the Financial Statements for the Year Ended 30 April 2025

10 | Taxation

Tax charged/(credited) in the profit and loss account

| 2025 £ | 2024 £
Current taxation |  |
UK corporation tax | 299,378 | 4,750
Deferred taxation |  |
Arising from origination and reversal of timing differences | 35,320 | 99,539
Tax expense in the income statement | 334,698 | 104,289

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2024 - lower than the standard rate of corporation tax in the UK) of 25% (2024 - 19%).
The differences are reconciled below:

| 2025 £ | 2024 £
Profit before tax | 1,343,280 | 910,423
Corporation tax at standard rate | 335,820 | 172,981
Tax decrease from effect of capital allowances and depreciation | (22,778) | (23,418)
Tax increase/(decrease) from other short-term timing differences | 386 | (103)
Effect of expense not deductible in determining taxable profit (tax loss) | 415 | 335
Effect of tax losses | - | (8,102)
Tax decrease arising from group relief | - | (136,943)
Deferred tax expense from origination and reversal of timing differences | 35,320 | 99,539
Tax decrease from other tax effects | (14,465) | -
Total tax charge | 334,698 | 104,289

Manthorpe Engineering Limited

Notes to the Financial Statements for the Year Ended 30 April 2025

Deferred tax

Deferred tax assets and liabilities

2025 | Asset £ | Liability £
Accelerated capital allowances | - | 249,635
Other timing differences | 2,466 | -
| 2,466 | 249,635

2024 | Asset £ | Liability £
Accelerated capital allowances | - | 211,849
| - | 211,849

11 | Intangible assets

| Software £
Cost or valuation
At 1 May 2024 | 91,060
At 30 April 2025 | 91,060
Amortisation
At 1 May 2024 | 43,351
Amortisation charge | 15,762
At 30 April 2025 | 59,113
Carrying amount
At 30 April 2025 | 31,947
At 30 April 2024 | 47,709

Manthorpe Engineering Limited

Notes to the Financial Statements for the Year Ended 30 April 2025

12 | Tangible assets

| Fixtures and fittings £ | Plant and machinery £ | Motor vehicles £ | Tooling £ | Total £
Cost or valuation
At 1 May 2024 | 1,285,720 | 16,221,447 | 323,523 | 281,981 | 18,112,671
Additions | 192,814 | 217,468 | 101,998 | 32,588 | 544,868
Disposals | (194,718) | (596,470) | (97,734) | (96,096) | (985,018)
At 30 April 2025 | 1,283,816 | 15,842,445 | 327,787 | 218,473 | 17,672,521
Depreciation
At 1 May 2024 | 1,073,765 | 14,757,062 | 234,146 | 269,279 | 16,334,252
Charge for the year | 89,161 | 375,243 | 43,630 | 9,513 | 517,547
Eliminated on disposal | (194,718) | (596,470) | (70,889) | (96,096) | (958,173)
At 30 April 2025 | 968,208 | 14,535,835 | 206,887 | 182,696 | 15,893,626
Carrying amount
At 30 April 2025 | 315,608 | 1,306,610 | 120,900 | 35,777 | 1,778,895
At 30 April 2024 | 211,955 | 1,464,385 | 89,377 | 12,702 | 1,778,419

Manthorpe Engineering Limited

Notes to the Financial Statements for the Year Ended 30 April 2025

13 | Stocks

| 2025 £ | 2024 £
Work in progress | 2,046,770 | 1,770,170
Raw materials & finished goods | 197,991 | 216,315
| 2,244,761 | 1,986,485

14 | Debtors

Current | Note | 2025 £ | 2024 £
Trade debtors |  | 2,296,946 | 2,061,983
Amounts owed by related parties | 22 | 8,885 | -
Prepayments |  | 1,375,428 | 276,058
|  | 3,681,259 | 2,338,041

15 | Cash and cash equivalents

| 2025 £ | 2024 £
Cash at bank and in hand | 2,306,235 | 1,951,870

16 | Creditors

| Note | 2025 £ | 2024 £
Due within one year |  |  |
Trade creditors |  | 1,794,078 | 1,188,700
Amounts due to related parties | 22 | 8,402 | 73,217
Social security and other taxes |  | 436,130 | 328,500
Outstanding defined contribution pension costs |  | 19,536 | 16,269
Other creditors |  | - | 116,818
Accruals |  | 504,644 | 437,243
Corporation tax liability | 10 | 299,378 | 4,750
|  | 3,062,168 | 2,165,497

The company is a member of a group VAT registration, of which all members are jointly and severally liable for the group's VAT liability. The potential liability at 30 April 2025 was £334,134 (2024 - £254,350).

Manthorpe Engineering Limited

Notes to the Financial Statements for the Year Ended 30 April 2025

17 | Provisions for liabilities

| Deferred tax £ | Total £
At 1 May 2024 | 211,849 | 211,849
Increase (decrease) in existing provisions | 35,320 | 35,320
At 30 April 2025 | 247,169 | 247,169

18 | Pension and other schemes

Defined contribution pension scheme

The Company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the Company to the scheme and amounted to £112,655 (2024 - £95,988).
Contributions totalling £19,536 (2024 - £16,269) were payable to the scheme at the end of the year and are included in creditors.

19 | Share capital

Allotted, called up and fully paid shares

| 2025 | 2024
| No. | £ | No. | £
Ordinary shares of £1 each | 15,000 | 15,000 | 15,000 | 15,000

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions: Each share permits its owner to a voting right with no other preferences or restrictions.

20 | Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 315,500 | 276,500
Later than one year and not later than five years | 633,958 | 459,375
| 949,458 | 735,875

The amount of non-cancellable operating lease payments recognised as an expense during the year was £341,500 (2024 - £233,625).

Manthorpe Engineering Limited

Notes to the Financial Statements for the Year Ended 30 April 2025

21 | Commitments

Capital commitments

Capital commitments represent obligations for which the entity has contracted but for which no liability has arisen at the reporting date of these financial statements.
The total amount contracted for but not provided in the financial statements was £1,143,487 (2024 - £30,628).

22 | Related party transactions

Expenditure with and payables to related parties

2025 | Other related parties £
Leases | 339,500

2024 | Other related parties £
Purchase of goods | 14,500
Leases | 263,625
| 278,125

23 | Financial instruments

Items of income, expense, gains or losses

The total interest income for financial assets not measured at fair value through profit or loss is £50 (2024 - £48).

24 | Controlling party

Manthorpe Engineering Limited is a wholly owned subsidiary of Manthorpe Limited.
Manthorpe Holdings Limited is the ultimate parent undertaking and parent undertaking of the only group of undertakings for which group accounts are drawn up and of which Manthorpe Engineering Limited is a member. Manthorpe Holdings Limited's registered office address if Forty Horse Close, Codnor Gate Business Park, Ripley, Derbyshire, DE5 3ND and its consolidated financial statements can be obtained from the Registrar of companies, Companies House, 3 Crown Way, Cardiff, CF14 3UZ. Manthorpe Holdings Limited is controlled by Mr P G Pochciol.