Company registration number 00073961 (England and Wales)
LONGWOOD ENGINEERING COMPANY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
LONGWOOD ENGINEERING COMPANY LIMITED
COMPANY INFORMATION
Directors
Mr J M Taylor
Mrs L J Battye
Mr M J A Simmons
Secretary
Mrs L J Battye
Company number
00073961
Registered office
Silver Street
Huddersfield
HD5 9BS
Auditor
Simpson Wood Limited
Bank Chambers
Market Street
Huddersfield
HD1 2EW
Solicitors
Schofield Sweeney
30 Market Street
Huddersfield
HD1 2HG
LONGWOOD ENGINEERING COMPANY LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
4
Directors' responsibilities statement
3
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 26
LONGWOOD ENGINEERING COMPANY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2025
- 1 -

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

Principal activity and business review

The principal activity of the company during the year was that of screening equipment manufacturer to the Waste Water Treatment Industry.

With AMP period commencing April 2025, project work has continued in line with budgeted expectations. Profit for the year and cash generation are consistent with expectations.

Principal risks and uncertainties

Competition in the market is an ongoing threat to the business, both in terms of order volumes and pricing pressures. However, we aim to provide a high-quality UK manufactured product, backed up with high-quality service, to a differentiate from the competition.

The business has:

- Continued to implement systems to improve efficiencies;

- Evolved to have the ability to respond when required;

- Worked closely with our supply chain and customers to be proactive in all our aspects of work.

As an upshot the business has continued to operate and develop effectively, gaining the results in these accounts.

Financial risk management objectives and policies

The company's principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to raise funds for the company's operations and to finance the company's operations. Due to the nature of the financial instruments used by the company there is no material exposure to price risk.

The company's approach to managing other risks applicable to the financial instruments concerned is shown below. In respect of bank balances the liquidity risk is managed by maintaining a balance between working capital and deposits. The company makes use of money market facilities for available funds.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Research and development

The company continues to take advantage of technical advances as they arise and strives to evolve exciting and develop new products as an ongoing policy.

Financial key performance indicators

The main KPIs monitored by the directors are order intake, turnover, gross margin and cash generation.

Outlook

In 2025/26 the order intake, turnover, gross margin and cash generation for the current year is expected to be consistent compared to 2024/25. This prediction is mainly due to the commencement of AMP8 and the growing number of project orders.

With sustained high quality, focused and supportive working methods we have a great opportunity to continue to be a successful company.

LONGWOOD ENGINEERING COMPANY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 2 -

This report was approved by the board of directors and signed on behalf of the board by:

Mr J M Taylor
Director
12 January 2026
LONGWOOD ENGINEERING COMPANY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2025
- 3 -

The directors are responsible 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 then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent; 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.

LONGWOOD ENGINEERING COMPANY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2025
- 4 -

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

Principal activities

The principal activity of the company during the year was that of screening engineers to the Waste Water Treatment Industry.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £314,542. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr J M Taylor
Mrs L J Battye
Mr M J A Simmons
Disclosure of information in the strategic report

In accordance with Section 414C(11). Companies Act 2006, the following information required to be contained in this report set out in the companies Strategic Report: principal activities, business review, future development, financial risks and research and development.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr J M Taylor
Director
12 January 2026
LONGWOOD ENGINEERING COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LONGWOOD ENGINEERING COMPANY LIMITED
- 5 -
Opinion

We have audited the financial statements of Longwood Engineering Company Limited (the 'company') for the year ended 30 June 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 June 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's 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.

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 our audit:

- the information given in the strategic report and the directors' r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

LONGWOOD ENGINEERING COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LONGWOOD ENGINEERING COMPANY LIMITED (CONTINUED)
- 6 -
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 identifie d material misstatements in the strategic report or the directors' r eport.

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, 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 directors' r esponsibilities s tatement, 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.

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.

LONGWOOD ENGINEERING COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LONGWOOD ENGINEERING COMPANY LIMITED (CONTINUED)
- 7 -
Extent to which the audit was considered capable of detecting irregularies including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including Companies Act 2006, taxation legislation, data protection, anti-bribery, emplo yment and heath and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations and.

- performed analytical procedures to identify any unusual or unexpected relationships.

To address the risk of fraud through management bias and override of controls, we:

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias and;

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance and;

- enquiring of management as to actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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 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.

LONGWOOD ENGINEERING COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LONGWOOD ENGINEERING COMPANY LIMITED (CONTINUED)
- 8 -
Sukhbinder Khangura BA FCA (Senior Statutory Auditor)
For and on behalf of Simpson Wood Limited, Statutory Auditor
Chartered Accountants
Bank Chambers
Market Street
Huddersfield
HD1 2EW
12 January 2026
LONGWOOD ENGINEERING COMPANY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2025
- 9 -
2025
2024
Notes
£
£
Turnover
3
11,252,799
11,485,233
Cost of sales
(5,692,076)
(6,425,265)
Gross profit
5,560,723
5,059,968
Administrative expenses
(2,440,435)
(2,644,109)
Other operating income
15,882
9,953
Operating profit
4
3,136,170
2,425,812
Interest receivable and similar income
7
43,374
12,328
Interest payable and similar expenses
8
(4,617)
(97)
Profit before taxation
3,174,927
2,438,043
Tax on profit
9
(796,569)
(603,345)
Profit for the financial year
2,378,358
1,834,698

The profit and loss account has been prepared on the basis that all operations are continuing operations.

LONGWOOD ENGINEERING COMPANY LIMITED
BALANCE SHEET
AS AT
30 JUNE 2025
30 June 2025
- 10 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
11
266,906
276,706
Investments
12
500,000
-
0
766,906
276,706
Current assets
Stocks
13
842,867
858,398
Debtors
14
4,040,805
2,909,345
Cash at bank and in hand
3,475,559
2,558,121
8,359,231
6,325,864
Creditors: amounts falling due within one year
15
(3,035,312)
(2,578,073)
Net current assets
5,323,919
3,747,791
Total assets less current liabilities
6,090,825
4,024,497
Provisions for liabilities
Deferred tax liability
16
21,458
18,946
(21,458)
(18,946)
Net assets
6,069,367
4,005,551
Capital and reserves
Called up share capital
19
2,600
2,600
Profit and loss reserves
6,066,767
4,002,951
Total equity
6,069,367
4,005,551

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 12 January 2026 and are signed on its behalf by:
Mr J M Taylor
Director
Company registration number 00073961 (England and Wales)
LONGWOOD ENGINEERING COMPANY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2025
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2023
2,600
2,512,727
2,515,327
Year ended 30 June 2024:
Profit and total comprehensive income
-
1,834,698
1,834,698
Dividends
10
-
(344,474)
(344,474)
Balance at 30 June 2024
2,600
4,002,951
4,005,551
Year ended 30 June 2025:
Profit and total comprehensive income
-
2,378,358
2,378,358
Dividends
10
-
(314,542)
(314,542)
Balance at 30 June 2025
2,600
6,066,767
6,069,367
LONGWOOD ENGINEERING COMPANY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2025
- 12 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
2,533,948
1,348,703
Interest paid
(4,617)
(97)
Income taxes paid
(739,549)
(312,072)
Net cash inflow from operating activities
1,789,782
1,036,534
Investing activities
Purchase of tangible fixed assets
(105,176)
(109,771)
Proceeds from disposal of tangible fixed assets
4,000
20,000
Proceeds from disposal of investments
(500,000)
-
0
Interest received
43,374
12,328
Net cash used in investing activities
(557,802)
(77,443)
Financing activities
Dividends paid
(314,542)
(344,474)
Net cash used in financing activities
(314,542)
(344,474)
Net increase in cash and cash equivalents
917,438
614,617
Cash and cash equivalents at beginning of year
2,558,121
1,943,504
Cash and cash equivalents at end of year
3,475,559
2,558,121
LONGWOOD ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
- 13 -
1
Accounting policies
Company information

Longwood Engineering Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is Silver Street, Huddersfield, HD5 9BS.

1.1
Basis of preparation

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

A true t the time of approving the financial statements, t he directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus t he directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recover able.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

LONGWOOD ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 14 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
5% per annum on cost
Plant and equipment
20% per annum on cost
Fixtures and fittings
10% per annum on cost
Computers
33 1/3% per annum on cost
Motor vehicles
33 1/3% and 10% per annum on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

A full year of depreciation is charged in the year of acquisition.

1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

LONGWOOD ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 15 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

LONGWOOD ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 16 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are s ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

LONGWOOD ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 17 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
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.

1.13
Retirement benefits

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

1.14
Leases
As lessee

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease s asset are consumed.

LONGWOOD ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 18 -
1.15

Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Accrued income

The company estimates the profit margin which will be made on the costs recorded on projects. The directors have considered profit margins usually made from historical projects as a basis for the margin to be applied.

Determining the useful economic lives of tangible assets

The company depreciates tangible assets, over their estimated useful lives. The estimation of the useful lives of tangible assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied.

LONGWOOD ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 19 -
3
Turnover and other revenue
2025
2024
£
£
Turnover analysed by class of business
Sale of spares/repairs
5,824,435
6,781,823
Installation contracts
5,428,364
4,703,410
11,252,799
11,485,233
2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
11,070,416
10,949,639
Overseas
182,383
535,594
11,252,799
11,485,233
2025
2024
£
£
Other revenue
Interest income
43,374
12,328
Other operating income
15,882
9,953
4
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
22,000
21,000
Depreciation of tangible fixed assets
114,976
96,447
Profit on disposal of tangible fixed assets
(4,000)
(20,000)
Operating lease charges
61,250
52,000
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2025
2024
Number
Number
Production staff
27
27
Administrative staff
27
27
Total
54
54
LONGWOOD ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
5
Employees
(Continued)
- 20 -

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
2,165,172
2,249,893
Social security costs
230,667
226,828
Pension costs
264,672
400,844
2,660,511
2,877,565
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
115,363
142,241
Company pension contributions to defined contribution schemes
170,389
306,905
285,752
449,146

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2024 - 3).

7
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
43,374
12,328
2025
2024
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
43,374
12,328
8
Interest payable and similar expenses
2025
2024
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
670
97
Other finance costs:
Other interest
3,947
-
0
4,617
97
LONGWOOD ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 21 -
9
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
794,057
588,907
Deferred tax
Origination and reversal of timing differences
2,512
14,438
Total tax charge
796,569
603,345

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
Profit before taxation
3,174,927
2,438,043
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
793,732
609,511
Tax effect of expenses that are not deductible in determining taxable profit
216
403
Group relief
-
0
(9,491)
Depreciation on assets not qualifying for tax allowances
2,830
2,713
Other short term timing difference
(209)
209
Taxation charge for the year
796,569
603,345
10
Dividends
2025
2024
£
£
Interim paid
314,542
344,474
LONGWOOD ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 22 -
11
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 July 2024
217,052
666,429
125,512
251,259
324,846
1,585,098
Additions
-
0
-
0
68,037
9,744
27,395
105,176
Disposals
-
0
-
0
-
0
-
0
(21,937)
(21,937)
At 30 June 2025
217,052
666,429
193,549
261,003
330,304
1,668,337
Depreciation and impairment
At 1 July 2024
85,864
637,557
108,413
238,151
238,407
1,308,392
Depreciation charged in the year
10,853
9,473
10,449
13,758
70,443
114,976
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(21,937)
(21,937)
At 30 June 2025
96,717
647,030
118,862
251,909
286,913
1,401,431
Carrying amount
At 30 June 2025
120,335
19,399
74,687
9,094
43,391
266,906
At 30 June 2024
131,188
28,872
17,099
13,108
86,439
276,706

The assets of the company w ith a carrying value of £2 63,382 have been used to secure borrowing for the group.

12
Fixed asset investments
2025
2024
£
£
Listed investments
500,000
-
0
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 July 2024
-
Additions
500,000
At 30 June 2025
500,000
Carrying amount
At 30 June 2025
500,000
At 30 June 2024
-
LONGWOOD ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
12
Fixed asset investments
(Continued)
- 23 -

The company's investments in listed securities are valued using quoted market prices in active markets.

13
Stocks
2025
2024
£
£
Raw materials and consumables
842,867
858,398
14
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
1,218,806
904,393
Gross amounts owed by contract customers
801,690
972,972
Amounts owed by group undertakings
1,986,203
994,778
Other debtors
7,700
5,900
Prepayments and accrued income
26,406
31,302
4,040,805
2,909,345
15
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Trade creditors
868,364
971,988
Amounts owed to group undertakings
800,147
740,871
Corporation tax
443,512
389,004
Other taxation and social security
273,027
98,906
Deferred income
17
355,469
62,240
Accruals and deferred income
294,793
315,064
3,035,312
2,578,073
16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances
21,458
18,946
LONGWOOD ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
16
Deferred taxation
(Continued)
- 24 -
2025
Movements in the year:
£
Liability at 1 July 2024
18,946
Charge to profit or loss
2,512
Liability at 30 June 2025
21,458

The deferred tax liability relates to accelerated capital allowances.

17
Deferred income
2025
2024
£
£
Other deferred income
355,469
62,240

Deferred income relates to goods that were invoiced before the year end but not dispatched until post year end.

18
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
264,672
400,844

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

19
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £10 each
260
260
2,600
2,600
20
Contingencies

The company is a member of a VAT group. VAT liabilities of the group members at 30 June 2025 amounted to a liability balance of £222,394 (2024: £44,297). The company is also party to an unlimited multilateral bank guarantee with other members of the group. Bank borrowing amounted to £nil (2024: £1,001,031) for group members.

LONGWOOD ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 25 -
21
Operating lease commitments
As lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2025
2024
£
£
Within 1 year
80,588
94,045
Years 2-5
67,644
146,085
148,232
240,130
22
Ultimate controlling party

The company is a wholly-owed subsidiary of The Longwood Engineering Company (Holdings) Limited, which is registered in England and Wales.

The ultimate controlling party of the company is Silver Street Engineering Limited. The company's financial statements are included in the consolidated financial statements of that company which are available form the Registrar of Companies.

23
Related party transactions

Included in debtors is an amount totalling £1,986,203 (2024: £994,778) due from the groups ultimate parent, Silver Street Engineering Limited. Included in creditors is an amount totalling £800,147 (2024: £740,871) owed to the parent company, Longwood Engineering Company (Holdings) Limited, which is unsecured, repayable on demand currently interest free. During the year the company paid management charges of £48,312 (2024: £48,312) to its parent company.

LONGWOOD ENGINEERING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 26 -
24
Cash generated from operations
2025
2024
£
£
Profit after taxation
2,378,358
1,834,698
Adjustments for:
Taxation charged
796,569
603,345
Finance costs
4,617
97
Investment income
(43,374)
(12,328)
Gain on disposal of tangible fixed assets
(4,000)
(20,000)
Depreciation and impairment of tangible fixed assets
114,976
96,447
Movements in working capital:
Decrease/(increase) in stocks
15,531
(5,652)
Increase in debtors
(1,131,460)
(1,009,826)
Increase/(decrease) in creditors
109,502
(114,224)
Increase/(decrease) in deferred income
293,229
(23,854)
Cash generated from operations
2,533,948
1,348,703
25
Analysis of changes in net funds
1 July 2024
Cash flows
30 June 2025
£
£
£
Cash at bank and in hand
2,558,121
917,438
3,475,559
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