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Registered number: 13636044 T.W. ENGINEERING HOLDINGS LIMITED Annual report and financial statements For the year ended 31 October 2025
T.W. ENGINEERING HOLDINGS LIMITED Company Information
Directors | H C Downs (Chairman) FCCA
| S A Lowater ACMA & CGMA
| J R Downs FCCA
| E C H Downs
Company secretary | S A Lowater ACMA & CGMA
Registered number | 13636044
Registered office | Angular House
| Eagle Road
| Quarry Hill Industrial Estate
| Ilkeston
| Derbyshire
| DE7 4RB
Independent auditors | PKF Smith Cooper Audit Limited
| Statutory Auditors
| 2 Lace Market Square
| Nottingham
| NG1 1PB
T.W. ENGINEERING HOLDINGS LIMITED Contents
| Page
Group strategic report | 1 - 2
Directors' report | 3 - 4
Independent auditors' report | 5 - 8
Consolidated statement of comprehensive income | 9
Consolidated balance sheet | 10
Company balance sheet | 11
Consolidated statement of changes in equity | 12
Company statement of changes in equity | 13
Consolidated statement of cash flows | 14
Consolidated analysis of net debt | 15
Notes to the financial statements | 16 - 28
T.W. ENGINEERING HOLDINGS LIMITED Group strategic report For the year ended 31 October 2025
Introduction
We aim to present a balanced and broad review of the performance and development of our business during the year and its position at year end. Our review is consistent with the size and nature of our business and is written in the context of the normal risks and uncertainties we face. The directors consider that the results for the year and financial position at the end of the year were good, particularly in view of the economic climate.
Business review
As a manufacturer and distributor, the company continues to supply a vast range of hand tools, power tools and consumables alongside precision engineered and woodworked parts to a wide range of utility companies, government bodies and industry in the UK. The year ended 31 October 2025, saw similar turnover compared to the previous year. The main reasons for this are the continuing increased turnover of our top customers by offering more products to add to their portfolio, along with added value from the Sales team gaining new business. Due to the majority of our customers being essential to the economy and our already strong position in the industry we have managed to keep a stable turnover. We continue to actively look for and employ candidates for various roles within the business to strengthen the team. Whilst many sectors continued to struggle, our stable position with experienced staff and our continued investments in new premises and new technology ensured that we continue to build and deliver valued services to our customers. Costs were broadly in line with expectations, however due to the recent budgets, taxes have increased which has also led to increased costs from our suppliers and likely future challenges with inflation. There is also more pressure with regards to increased employee costs and the fact that customers continue to request better prices. We are still seeing inflationary pressures due to but not limited to labour, energy costs, carriage, packaging and consumables. The protracted period of economic challenges are set to continue and market risks and uncertainties are still an important factor to be taken into account in the future development of the business. Page 1
T.W. ENGINEERING HOLDINGS LIMITED Group strategic report (continued) For the year ended 31 October 2025
Principal risks and uncertainties
The Directors regularly evaluate the risks to which the company is exposed. The principal risks and uncertainties facing the Group are broadly grouped as – competitive and financial instrument risk. Competitive risks are no different to many other businesses. Generating new business from both existing and new customers is important as well as ensuring existing contracts are secure (which are subject to periodic tender). Financial instrument risk - exposure to price and credit risk. Price risk arises on financial instruments because of changes in commodity prices, particularly those purchased in foreign currencies. We continue to face extra challenges with regards to shipping, energy and cost inflation whereby the majority of our suppliers costs have risen; we continue to absorb these rather than passing on to our customers whenever possible, however this is becoming extremely difficult. Credit risk is the risk that one party to a financial instrument will cause a financial loss for another party by failing to discharge an obligation. Group policies are aimed at minimising such losses, and require that deferred terms are only granted to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures. Overall the Group adopts a prudent attitude to risk and has adequate cash reserves to ensure that any risks faced can be managed.
Financial key performance indicators
We consider that our key financial performance indicators are those that communicate the financial performance and position of the Group as a whole, these being the net profit margin and the return on capital employed: The net profit margin for the year was 6.7% (2024: 8.8%). Return on capital employed, defined as earnings before interest and tax divided by total assets less current liabilities was 17.2% (2024: 25.4%). This report was approved by the board and signed on its behalf.
H C Downs (Chairman) FCCA Director
Date: 9 April 2026
Page 2
T.W. ENGINEERING HOLDINGS LIMITED Directors' report For the year ended 31 October 2025 The directors present their report and the financial statements for the year ended 31 October 2025.
Directors' responsibilities statement
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period. In preparing these financial statements, the directors are required to: ∙select suitable accounting policies for the Group's financial statements and then apply them consistently; ∙make judgments and accounting estimates that are reasonable and prudent; ∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Principal activity
The principal activity of the Company is that of a holding company. The principal activity of the Group is as a distributor to industry of hand tools, power tools, consumables and janitorial goods. Along with precision engineering, manufacturing and woodworking.
Results and dividends
The profit for the year, after taxation, amounted to £2,384,596 (2024 - £3,163,141). Dividends of £550,000 (2024: £350,000l) were paid in the year.
Directors
The directors who served during the year were:
H C Downs (Chairman) FCCA
S A Lowater ACMA & CGMA
J R Downs FCCA
E C H Downs
Page 3
T.W. ENGINEERING HOLDINGS LIMITED Directors' report (continued) For the year ended 31 October 2025
Disclosure of information to auditors
Each of the persons who are directors at the time when this Directors' report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and ∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.
Auditors
The auditors, PKF Smith Cooper Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. This report was approved by the board and signed on its behalf.
H C Downs (Chairman) FCCA Director
Date: 9 April 2026
Page 4
T.W. ENGINEERING HOLDINGS LIMITED Independent auditors' report to the members of T.W. Engineering Holdings Limited
Opinion
We have audited the financial statements of T.W. Engineering Holdings Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 October 2025, which comprise the Consolidated statement of comprehensive income, the Consolidated analysis of net debt, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, 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 Group's and of the Parent Company's affairs as at 31 October 2025 and of the Group's 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the Parent 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. Page 5
T.W. ENGINEERING HOLDINGS LIMITED Independent auditors' report to the members of T.W. Engineering Holdings Limited (continued)
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
Opinion 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 Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and ∙the Group strategic report and the 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 Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: ∙adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or ∙the Parent Company financial statements are not in agreement with the accounting records 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' responsibilities statement set out on page 3, 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 Group's and the Parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so. Page 6
T.W. ENGINEERING HOLDINGS LIMITED Independent auditors' report to the members of T.W. Engineering Holdings Limited (continued)
Auditors' 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 Auditors' 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 Group financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Based on our understanding of the Group and industry, we identify the key laws and regulations affecting the Group. We identified that the principal risk of fraud or non-compliance with laws and regulations related to: ∙management bias in respect of accounting estimates and judgements made; ∙management override of control; ∙posting of unusual journals or transactions. We focussed on those areas that could give rise to a material misstatement in the Group's financial statements. Our procedures included, but were not limited to: ∙enquiry of management and those charged with governance around actual and potential litigation and claims, including instances of non-compliance with laws and regulations and fraud; ∙reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and fraud; ∙reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; ∙performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report. Page 7
T.W. ENGINEERING HOLDINGS LIMITED Independent auditors' report to the members of T.W. Engineering Holdings Limited (continued)
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 Auditors' 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. Sarah Flear (Senior statutory auditor) for and on behalf of PKF Smith Cooper Audit Limited Statutory Auditors 2 Lace Market Square Nottingham NG1 1PB 13 April 2026 Page 8
T.W. ENGINEERING HOLDINGS LIMITED Consolidated statement of comprehensive income For the year ended 31 October 2025
| 2025 | 2024
Note | £ | £
Turnover | 4 | 35,618,834 | 35,897,716
Cost of sales |  | (29,992,228) | (29,267,613)
Gross profit |  | 5,626,606 | 6,630,103
Administrative expenses |  | (2,444,994) | (2,426,383)
Operating profit | 5 | 3,181,612 | 4,203,720
Interest receivable and similar income | 9 | 32,488 | 42,642
Profit before taxation |  | 3,214,100 | 4,246,362
Tax on profit | 10 | (829,504) | (1,083,221)
Profit for the financial year |  | 2,384,596 | 3,163,141
Profit for the year attributable to: |  |  |
Owners of the parent Company |  | 2,384,596 | 3,163,141
There were no recognised gains and losses for 2025 or 2024 other than those included in the consolidated statement of comprehensive income.
The notes on pages 16 to 28 form part of these financial statements.
Page 9
T.W. ENGINEERING HOLDINGS LIMITED Registered number: 13636044 Consolidated balance sheet As at 31 October 2025
|  | 2025 |  | 2024
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Tangible assets | 13 |  | 4,766,054 |  | 4,629,157
Investments | 14 |  | 2 |  | 2
|  |  | 4,766,056 |  | 4,629,159
Current assets |  |  |  |  |
Stocks | 15 | 3,603,989 |  | 3,473,062 |
Debtors: amounts falling due within one year | 16 | 2,874,650 |  | 4,905,653 |
Cash at bank and in hand | 17 | 9,624,102 |  | 6,686,516 |
|  | 16,102,741 |  | 15,065,231 |
Creditors: amounts falling due within one year | 18 | (2,402,957) |  | (3,115,542) |
Net current assets |  |  | 13,699,784 |  | 11,949,689
Total assets less current liabilities |  |  | 18,465,840 |  | 16,578,848
Provisions for liabilities |  |  |  |  |
Deferred taxation | 19 |  | (280,752) |  | (228,356)
Net assets |  |  | 18,185,088 |  | 16,350,492
Capital and reserves |  |  |  |  |
Called up share capital | 20 |  | 2,500 |  | 2,500
Profit and loss account | 21 |  | 18,182,588 |  | 16,347,992
|  |  | 18,185,088 |  | 16,350,492
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
H C Downs (Chairman) FCCA
Director
Date: 9 April 2026
The notes on pages 16 to 28 form part of these financial statements. Page 10
T.W. ENGINEERING HOLDINGS LIMITED Registered number: 13636044 Company balance sheet As at 31 October 2025
| 2025 | 2024
Note | £ | £
Fixed assets |  |  |
Investments | 14 | 2,500 | 2,500
Total assets less current liabilities |  | 2,500 | 2,500
Net assets |  | 2,500 | 2,500
Capital and reserves |  |  |
Called up share capital | 20 | 2,500 | 2,500
|  | 2,500 | 2,500
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
H C Downs (Chairman) FCCA
Director
Date: 9 April 2026
The notes on pages 16 to 28 form part of these financial statements. Page 11
T.W. ENGINEERING HOLDINGS LIMITED Consolidated statement of changes in equity For the year ended 31 October 2025
| Called up share capital | Profit and loss account | Total equity
| £ | £ | £
At 1 November 2023 | 2,500 | 13,534,851 | 13,537,351
Profit for the year | - | 3,163,141 | 3,163,141
Dividends: Equity capital | - | (350,000) | (350,000)
At 1 November 2024 | 2,500 | 16,347,992 | 16,350,492
Profit for the year | - | 2,384,596 | 2,384,596
Dividends: Equity capital | - | (550,000) | (550,000)
At 31 October 2025 | 2,500 | 18,182,588 | 18,185,088
| The notes on pages 16 to 28 form part of these financial statements.
Page 12
T.W. ENGINEERING HOLDINGS LIMITED Company statement of changes in equity For the year ended 31 October 2025
| Called up share capital | Profit and loss account | Total equity
| £ | £ | £
At 1 November 2023 | 2,500 | - | 2,500
Profit for the year | - | 350,000 | 350,000
Dividends: Equity capital | - | (350,000) | (350,000)
At 1 November 2024 | 2,500 | - | 2,500
Profit for the year | - | 550,000 | 550,000
Dividends: Equity capital | - | (550,000) | (550,000)
At 31 October 2025 | 2,500 | - | 2,500
| The notes on pages 16 to 28 form part of these financial statements.
Page 13
T.W. ENGINEERING HOLDINGS LIMITED Consolidated statement of cash flows For the year ended 31 October 2025
|  |  | 2025 | 2024
|  |  | £ | £
Cash flows from operating activities |  |
Profit for the financial year | 2,384,596 | 3,163,141
Adjustments for: |  |
Depreciation of tangible assets | 301,262 | 268,000
Loss on disposal of tangible assets | 2,105 | (417)
Interest received | (32,488) | (42,642)
Taxation charge | 829,504 | 1,083,221
(Increase)/decrease in stocks | (130,927) | 48,917
Decrease/(increase) in debtors | 2,433,920 | (83,307)
(Decrease) in creditors | (657,574) | (946,570)
Corporation tax (paid) | (1,235,036) | (1,052,286)
Net cash generated from operating activities | 3,895,362 | 2,438,057
Cash flows from investing activities |  |
Purchase of tangible fixed assets | (474,764) | (2,200,575)
Sale of tangible fixed assets | 34,500 | 417
Interest received | 32,488 | 42,642
Net cash from investing activities | (407,776) | (2,157,516)
Cash flows from financing activities |  |
Dividends paid | (550,000) | (350,000)
Net cash used in financing activities | (550,000) | (350,000)
Net increase/(decrease) in cash and cash equivalents | 2,937,586 | (69,459)
Cash and cash equivalents at beginning of year | 6,686,516 | 6,755,975
Cash and cash equivalents at the end of year | 9,624,102 | 6,686,516
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 9,624,102 | 6,686,516
The notes on pages 16 to 28 form part of these financial statements.
Page 14
T.W. ENGINEERING HOLDINGS LIMITED Consolidated analysis of net debt For the year ended 31 October 2025
| At 1 November 2024 | Cash flows | At 31 October 2025
| £ | £ | £
Cash at bank and in hand | 6,686,516 | 2,937,586 | 9,624,102
The notes on pages 16 to 28 form part of these financial statements.
Page 15
T.W. ENGINEERING HOLDINGS LIMITED Notes to the financial statements For the year ended 31 October 2025
1. | General information
T.W. Engineering Holdings Limited is a private company limited by shares incorporated in England, United Kingdom. The address of the registered office and the company registration number is given in the Company Information page of these financial statements. The nature of the company’s operations and principal activities are given in the Directors' Report. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The financial statements are presented in sterling which is the functional currency of the Group and have been rounded to the nearest £1. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3). The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The following principal accounting policies have been applied:
| 2.2 | Basis of consolidation
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. The consolidated financial statements do not contain financial information for subsidiary undertakings which are not material for the purpose of giving a true and fair view under the exemption permitted by Section 402/405 of the Companies Act 2006.
| 2.3 | Foreign currency translation
Transactions denominated in foreign currencies are recorded at the exchange rate ruling at the date of the transaction. Monetary assets and liablilities are translated at year end exchange rates. All exchange differences are included in the Profit and loss account. Page 16
T.W. ENGINEERING HOLDINGS LIMITED Notes to the financial statements For the year ended 31 October 2025 2.Accounting policies (continued)
| 2.4 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group 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 Group has transferred the significant risks and rewards of ownership to the buyer; ∙the Group 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 Group 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. This is usually upon dispatch of goods.
| 2.5 | Operating leases: the Group as lessee
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.
| 2.6 | Pensions
Defined contribution pension plan The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Group in independently administered funds. Page 17
T.W. ENGINEERING HOLDINGS LIMITED Notes to the financial statements For the year ended 31 October 2025 2.Accounting policies (continued)
| 2.7 | Current and deferred taxation
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 and the Group operate and generate income. 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; ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and ∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future. 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.
| 2.8 | Tangible fixed 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 is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following basis:
|  |  |  | Freehold property | - | 2.5% straight-line basis
|  |  |  | Plant and machinery | - | 12.5% straight-line basis
|  |  |  | Motor vehicles | - | 20% straight-line basis
|  |  |  | Fixtures and fittings | - | 10% or 33.33% straight-line basis
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. Freehold land is not depreciated. Page 18
T.W. ENGINEERING HOLDINGS LIMITED Notes to the financial statements For the year ended 31 October 2025 2.Accounting policies (continued)
| 2.9 | Valuation of investments
Investments in subsidiaries are measured at cost less accumulated impairment.
| 2.10 | Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads. At each balance sheet date, stocks are assessed for impairment. If stock is 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.
| 2.11 | Short term debtors and creditors
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
| 2.12 | Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
3. | Judgements in applying accounting policies and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affects the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. There are no significant judgements (apart from those involving estimates) which have had an effect on amounts recognised in the financial statements.
4. | Turnover
The whole of the turnover is attributable to the Group's principal activity.
| All turnover arose within the United Kingdom.
5. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Depreciation on tangible fixed assets | 301,262 | 268,000
| Exchange differences | 1,500 | (2,492)
| Other operating lease rentals | 31,053 | 32,429
Page 19
T.W. ENGINEERING HOLDINGS LIMITED Notes to the financial statements For the year ended 31 October 2025
6. | Auditors' remuneration
| During the year, the Group obtained the following services from the Group's auditors:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Fees payable to the Group's auditors for the audit of the consolidated and parent Company's financial statements | 3,500 | 3,275
7. | Directors' remuneration
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Directors' emoluments | 351,929 | 686,157
| Group contributions to defined contribution pension schemes | 42,000 | 51,000
|  | 393,929 | 737,157
| During the year retirement benefits were accruing to 3 directors (2024 - 3) in respect of defined contribution pension schemes.
| The highest paid director received remuneration of £301,885 (2024 - £296,810).
| The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £17,000 (2024 - £17,000).
Page 20
T.W. ENGINEERING HOLDINGS LIMITED Notes to the financial statements For the year ended 31 October 2025
8. | Employees
Staff costs, including directors' remuneration, were as follows:
|  | Group | Group
|  | 2025 | 2024
|  | £ | £
| Wages and salaries | 2,034,049 | 2,129,844
| Social security costs | 223,147 | 215,091
| Cost of defined contribution scheme | 128,036 | 132,906
|  | 2,385,232 | 2,477,841
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | Group 2022 | Group 2021
|  |  | No. | No.
|  | Directors | 4 | 4
|  | Factory staff | 27 | 29
|  | Office staff | 19 | 20
|  |  | 50 | 53
| The Company has no employees other than the directors, who did not receive any remuneration (2024 - £NIL)
9. | Interest receivable
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Other interest receivable | 32,488 | 42,642
Page 21
T.W. ENGINEERING HOLDINGS LIMITED Notes to the financial statements For the year ended 31 October 2025
10. | Taxation
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 798,720 | 1,038,890
| Adjustments in respect of previous periods | (21,612) | 11,206
| Total current tax | 777,108 | 1,050,096
| Deferred tax |  |
| Origination and reversal of timing differences | 31,019 | 47,816
| Adjustments in respect of previous periods | 21,377 | (14,691)
| Total deferred tax | 52,396 | 33,125
| Taxation on profit on ordinary activities | 829,504 | 1,083,221
| Factors affecting tax charge for the year
| The tax assessed for the year is higher than (2024 - higher than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 3,214,100 | 4,246,362
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%) | 803,525 | 1,061,591
| Effects of: |  |
| Expenses not deductible for tax purposes | 2,688 | 1,363
| Fixed asset differences | 23,526 | 23,752
| Adjustments to tax charge in respect of prior periods | (21,612) | 11,206
| Adjustments to tax charge in respect of prior periods - deferred tax | 21,377 | (14,691)
| Total tax charge for the year | 829,504 | 1,083,221
| Factors that may affect future tax charges
There were no factors that may affect future tax charges. Page 22
T.W. ENGINEERING HOLDINGS LIMITED Notes to the financial statements For the year ended 31 October 2025
11. | Dividends
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Dividends paid on equity share capital | 550,000 | 350,000
12. | Parent company profit for the year
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The profit after tax of the parent Company for the year was £550,000 (2024 - £350,000).
13. | Tangible fixed assets
| Group
|  | Freehold property | Plant and machinery | Motor vehicles | Fixtures and fittings | Total
|  | £ | £ | £ | £ | £
| Cost |  |  |  |  |
| At 1 November 2024 | 4,653,328 | 242,643 | 507,616 | 568,079 | 5,971,666
| Additions | 190,080 | - | 226,485 | 58,199 | 474,764
| Disposals | - | - | (109,196) | - | (109,196)
| At 31 October 2025 | 4,843,408 | 242,643 | 624,905 | 626,278 | 6,337,234
| Depreciation |  |  |  |  |
| At 1 November 2024 | 505,060 | 156,744 | 292,577 | 388,128 | 1,342,509
| Charge for the year on owned assets | 116,631 | 17,888 | 116,368 | 50,375 | 301,262
| Disposals | - | - | (72,591) | - | (72,591)
| At 31 October 2025 | 621,691 | 174,632 | 336,354 | 438,503 | 1,571,180
| Net book value |  |  |  |  |
| At 31 October 2025 | 4,221,717 | 68,011 | 288,551 | 187,775 | 4,766,054
| At 31 October 2024 | 4,148,268 | 85,899 | 215,039 | 179,951 | 4,629,157
| Included within freehold property is freehold land at a cost of £178,169 which is not depreciated.
Page 23
T.W. ENGINEERING HOLDINGS LIMITED Notes to the financial statements For the year ended 31 October 2025
14. | Fixed asset investments
| Group
|  | Investments in subsidiary companies
|  | £
| Cost |
| At 1 November 2024 | 2
| At 31 October 2025 | 2
| Net book value |
| At 31 October 2025 | 2
| At 31 October 2024 | 2
| The Group holds 100% of the ordinary share capital of T.W. Tools Limited. The consolidated financial statements do not contain financial information for T.W. Tools Limited, under the exemption permitted by Section 402/405 of the Companies Act 2006, as this information is not material for the purpose of giving a true and fair view.
| Company
|  | Investments in subsidiary companies
|  | £
| Cost |
| At 1 November 2024 | 2,500
| At 31 October 2025 | 2,500
| Net book value |
| At 31 October 2025 | 2,500
| At 31 October 2024 | 2,500
Page 24
T.W. ENGINEERING HOLDINGS LIMITED Notes to the financial statements For the year ended 31 October 2025
| Subsidiary undertakings
| The following were subsidiary undertakings of the Company:
| Name | Class of shares | Holding
| T. W. Engineering Company Limited | Ordinary | 100%
| T. W. Tools Limited* | Ordinary | 100%
| The registered office of the subsidiaries are the same as that of the parent company. *Subsidiary held indirectly. As at 31 October 2025 the aggregate of the share capital and reserves of T.W. Tools Limited was £2. The company is dormant and therefore made neither profit nor loss.
15. | Stocks
|  | Group | Group
|  | 2025 | 2024
|  | £ | £
| Finished goods and goods for resale | 3,603,989 | 3,473,062
16. | Debtors
|  | Group | Group
|  | 2025 | 2024
|  | £ | £
| Trade debtors | 2,389,557 | 4,838,258
| Other debtors | 407,988 | 8,796
| Prepayments and accrued income | 77,105 | 58,599
|  | 2,874,650 | 4,905,653
17. | Cash and cash equivalents
|  | Group | Group
|  | 2025 | 2024
|  | £ | £
| Cash at bank and in hand | 9,624,102 | 6,686,516
Page 25
T.W. ENGINEERING HOLDINGS LIMITED Notes to the financial statements For the year ended 31 October 2025
18. | Creditors: Amounts falling due within one year
|  | Group | Group
|  | 2025 | 2024
|  | £ | £
| Trade creditors | 1,495,089 | 2,026,419
| Corporation tax | - | 55,011
| Other taxation and social security | 258,255 | 416,876
| Other creditors | 14,562 | 14,598
| Accruals and deferred income | 635,051 | 602,638
|  | 2,402,957 | 3,115,542
19. | Deferred taxation
| Group
|  | 2025
|  | £
| At beginning of year | (228,356)
| Charged to profit or loss | (52,396)
| At end of year | (280,752)
| The provision for deferred taxation is made up as follows:
|  | Group | Group
|  | 2025 | 2024
|  | £ | £
| Fixed asset timing differences | (280,936) | (229,433)
| Short term timing differences | 184 | 1,077
|  | (280,752) | (228,356)
Page 26
T.W. ENGINEERING HOLDINGS LIMITED Notes to the financial statements For the year ended 31 October 2025
20. | Share capital
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 1 (2024 - 1) Ordinary A share of £1.00 | 1 | 1
|  | 2,499 (2024 - 2,499) Ordinary shares of £1.00 each | 2,499 | 2,499
|  |  | 2,500 | 2,500
21. | Reserves
Profit and loss account The profit and loss account represents cumulative profits and losses, net of dividends.
22. | Pension commitments
The Group operates a defined contributions pension scheme. ,The pension cost charge represents contributions payable by the Group to the fund and amounted to £128,036 (2024: £132,906). Contributions totalling £4,928 (2024: £4,308) were payable to the fund at the balance sheet date and are included in creditors.
23. | Commitments under operating leases
| At 31 October 2025 the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  | Group | Group
|  | 2025 | 2024
|  | £ | £
| Not later than 1 year | 14,400 | 14,400
| Later than 1 year and not later than 5 years | 7,200 | 21,600
|  | 21,600 | 36,000
24. | Related party transactions
| In accordance with the exemption available under Section 33.1A of FRS 102 'Related Party Disclosures', transactions with other wholly owned group undertakings have not been disclosed in these financial statements. During the year dividends of £550,000 (2024: £350,000) were paid for the benefit of the directors of the Company in respect of ordinary shares. All directors and management of the Group who have authority and responsibility for planning, directing and controlling the activities of the Group are considered to be key management personnel. Total remuneration, including benefits in kind, in respect of these individuals is £965,246 (2024: £1,123,131).
Page 27
T.W. ENGINEERING HOLDINGS LIMITED Notes to the financial statements For the year ended 31 October 2025
25. | Controlling party
The ultimate controlling party is H C Downs.
Page 28