Company registration number 01245667 (England and Wales)
ARROW PRECISION ENGINEERING LIMITED
ANNUAL REPORT AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 OCTOBER 2025
PAGES FOR FILING WITH REGISTRAR
ARROW PRECISION ENGINEERING LIMITED
COMPANY INFORMATION
Directors
Mr I D Arnold
Mrs R Arnold
Company number
01245667
Registered office
12 Barleyfield
Hinckley Fields Industrial Estate
Hinckley
Leicestershire
LE10 1YE
Auditor
Newby Castleman LLP
West Walk Building
110 Regent Road
Leicester
LE1 7LT
Business address
12 Barleyfield
Hinckley Fields Industrial Estate
Hinckley
Leicestershire
LE10 1YE
ARROW PRECISION ENGINEERING LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
ARROW PRECISION ENGINEERING LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2025
31 October 2025
- 1 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
4
2,371,579
2,520,107
Current assets
Stocks
873,843
906,659
Debtors
5
1,542,735
1,632,383
Cash at bank and in hand
523,101
193,724
2,939,679
2,732,766
Creditors: amounts falling due within one year
6
(1,304,864)
(1,315,560)
Net current assets
1,634,815
1,417,206
Total assets less current liabilities
4,006,394
3,937,313
Creditors: amounts falling due after more than one year
7
(319,197)
(627,400)
Provisions for liabilities
(341,614)
(364,209)
Net assets
3,345,583
2,945,704
Capital and reserves
Called up share capital
8
6,733
6,733
Capital redemption reserve
3,367
3,367
Profit and loss reserves
3,335,483
2,935,604
Total equity
3,345,583
2,945,704

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

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

The financial statements were approved by the board of directors and authorised for issue on 18 March 2026 and are signed on its behalf by:
Mr I D Arnold
Mrs R Arnold
Director
Director
Company registration number 01245667 (England and Wales)
ARROW PRECISION ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
- 2 -
1
Accounting policies
Company information

Arrow Precision Engineering Limited is a private company limited by shares incorporated in England and Wales. The registered office is 12 Barleyfield, Hinckley Fields Industrial Estate, Hinckley, Leicestershire, LE10 1YE.

1.1
Basis of preparation

These financial statements have been prepared in accordance with applicable accounting standards including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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. These policies have been consistently applied to all years presented unless otherwise stated.

1.2
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services net of VAT provided in the normal course of business. Turnover is recognised as earned when and to the extent that, the company obtains the right to consideration in exchange for its performance under contracts and is recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts the amount of revenue reflects the accrual of the right to consideration by reference to the value of work performed. Turnover not billed to clients is included in debtors and classified as 'amounts due from contract customers'.

1.3
Tangible fixed assets

Tangible fixed assets are measured at cost net of depreciation.

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

Land and buildings Freehold
No depreciation
Leasehold property improvements
15% per annum of net book value
Plant and machinery
10% per annum of net book value
Fixtures, fittings & equipment
15% per annum of net book value & 33% per annum of cost
Motor vehicles
25% per annum of net book value

Freehold land is not depreciated. The estimated residual value of freehold buildings is such that their depreciable amount is insignificant. Accordingly, no depreciation is charged on freehold buildings.

1.4
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. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

1.5
Financial instruments

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

ARROW PRECISION ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
1
Accounting policies
(Continued)
- 3 -

Debtors and creditors with no stated interest rate and receivable or payable within one year are measured at transaction price. Any losses arising from impairment are recognised in the profit and loss account.

Loans payable over a period of more than one year with a stated interest rate are initially measured at transaction price and subsequently measured at amortised cost using the effective interest method.

1.6
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. 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.

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.

1.7
Employee benefits

When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

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

1.8
Retirement benefits

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

1.9
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases are charged to the profit and loss account on a straight line basis over the lease term.

ARROW PRECISION ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
1
Accounting policies
(Continued)
- 4 -
1.10
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in the profit and loss account.

1.11

Research and development

Research expenditure is written off to the profit and loss account in the year in which it is incurred. Development expenditure is written off in the same way unless the directors are satisfied as to the technical, commercial and financial viability of the individual projects. In this situation, the expenditure is deferred and amortised over the period during which the company is expected to benefit.

2
Employees

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

2025
2024
Number
Number
Total
46
47
3
Intangible fixed assets
Goodwill
£
Cost
At 1 November 2024 and 31 October 2025
245,000
Amortisation and impairment
At 1 November 2024 and 31 October 2025
245,000
Carrying amount
At 31 October 2025
-
0
At 31 October 2024
-
0
ARROW PRECISION ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
- 5 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc.
Total
£
£
£
Cost
At 1 November 2024
829,412
5,819,506
6,648,918
Additions
-
0
37,614
37,614
Disposals
-
0
(11,495)
(11,495)
At 31 October 2025
829,412
5,845,625
6,675,037
Depreciation and impairment
At 1 November 2024
77,784
4,051,027
4,128,811
Depreciation charged in the year
3,107
182,847
185,954
Eliminated in respect of disposals
-
0
(11,307)
(11,307)
At 31 October 2025
80,891
4,222,567
4,303,458
Carrying amount
At 31 October 2025
748,521
1,623,058
2,371,579
At 31 October 2024
751,628
1,768,479
2,520,107
5
Debtors
2025
2024
Amounts falling due within one year
£
£
Trade debtors
606,912
728,724
Gross amounts owed by contract customers
788,380
763,686
Other debtors
11,750
11,750
Prepayments and accrued income
135,693
128,223
1,542,735
1,632,383
6
Creditors: amounts falling due within one year
2025
2024
£
£
Obligations under finance leases
235,197
227,400
Other borrowings
93,331
100,000
Trade creditors
654,686
575,566
Corporation tax
94,965
185,464
Other taxation and social security
135,655
147,146
Other creditors
11,946
11,884
Accruals and deferred income
79,084
68,100
1,304,864
1,315,560
ARROW PRECISION ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
- 6 -
7
Creditors: amounts falling due after more than one year
2025
2024
£
£
Loans and overdrafts
319,197
400,000
Obligations under finance leases
-
0
227,400
319,197
627,400

The outstanding hire purchase obligations of £235,197 (2024: £454,800) are secured against the assets to which they relate.

8
Called up share capital
2025
2024
£
£
Issued and fully paid
660 'A' Ordinary shares of 10p each
66
66
66,670 'B' Ordinary shares of 10p each
6,667
6,667
6,733
6,733
9
Audit report information

As the profit and loss account has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Paul Barnett FCCA
Statutory Auditor:
Newby Castleman LLP
Date of audit report:
18 March 2026
10
Operating lease commitments

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

2025
2024
£
£
400,702
329,157
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