Company registration number NI005177 (Northern Ireland)
W.A.C. MCCANDLESS (ENGINEERS) LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
W.A.C. MCCANDLESS (ENGINEERS) LTD
COMPANY INFORMATION
Directors
Mr C Carvill
Mrs P M Fisher
Mr J A Gerring
Mrs R E Gerring
Mr J E Gibson
Mrs D E Stevenson
Mr G D Carvill
Mrs M L Gibson
Secretary
Mrs R Gerring
Company number
NI005177
Registered office
95 Limestone Road
Belfast
BT15 3AB
Auditor
GMcG PORTADOWN
17 Mandeville Street
Portadown
Craigavon
Co Armagh
BT62 3PB
W.A.C. MCCANDLESS (ENGINEERS) LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 10
Statement of income and retained earnings
11
Statement of financial position
12
Statement of cash flows
13
Notes to the financial statements
14 - 23
W.A.C. MCCANDLESS (ENGINEERS) LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 1 -

The directors present the strategic report for the year ended 31 December 2025.

Fair review of the business

The company offers a comprehensive range of new and used heavy machinery allowing the company to meet a broad spectrum of customer needs, primarily within the construction and quarrying sectors. The company holds a number of market leading dealerships, including Komatsu, Esco, Dynapac, Atlas Copco, Epiroc and Xcentric, providing sales, parts and support.

Principal risks and uncertainties

Performance in the sector is affected by general economic conditions and specific sectorial factors such as construction industry spending capacity and the uncertainty in the UK's economic situation. The directors carry out regular strategic reviews including assessments of market trends and forecasts and customer patterns. The security of product supply and service levels is also regularly reviewed.

Financial risk

The company’s operations expose it to financial risks that include the effects of price changes and credit risks. The company has in place a risk management strategy that seeks to limit the adverse affects on the financial performance of the company by monitoring the level of risk which it faces. These policies are implemented by company’s directors.

Price risk

The company operates in an industry that is price competitive.

Credit risk

Appropriate credit checks on potential customers are made before sale contracts are agreed. The amount of exposure to individual customers is subject to a limit which is assessed regularly by the directors.

Liquidity risk

The company aims to maintain sufficient cash reserves designed to ensure that funds are available for its operation.

Environment

The company recognises its corporate responsibility to carry out its operations whilst minimising environmental impacts. The directors ongoing aim is to comply with all applicable environmental legislation, prevent pollution and reduce waste wherever possible.

Development and performance

The directors are pleased with the performance of the business in 2025. Although revenue and profit decreased in the current year, reflecting slightly more challenging market conditions within the civil engineering and construction sector in the period, the gross profit margin increased, demonstrating effective cost control and highlighting the resilience of the business overall. The directors are committed to the long term creation of shareholder value by increasing the company’s market share through a combination of organic growth and developing new market opportunities. Whilst the market remains highly competitive, early results are consistent with the 2025 year and directors expectations for 2026.

Key performance indicators

The key performance indicators used as a barometer of the company’s performance are the level of sales revenue achieved, gross profit margin and profit before tax. In the current year sales revenue achieved was £19.4 m (202 4 - £20.9 m), gross profit margin was 16.89% (2024 - 15.74%) and profit before tax of £1.7 m (202 4 - £1.8 m).

W.A.C. MCCANDLESS (ENGINEERS) LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 2 -
Health and safety

The company is committed to achieving the highest practical standards in health and safety management and strives to make all places of work a safe environment for employees and customers alike.

Human resources

The company’s most important resource is its people; their knowledge and experience are crucial to meeting customer requirements.

On behalf of the board

Mr C Carvill
Director
28 April 2026
W.A.C. MCCANDLESS (ENGINEERS) LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2025.

Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £299,628. The directors do not recommend payment of a further 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 C Carvill
Mrs P M Fisher
Mr J A Gerring
Mrs R E Gerring
Mr J E Gibson
Mrs D E Stevenson
Mr G D Carvill
Mrs M L Gibson
Statement of directors' responsibilities

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.

W.A.C. MCCANDLESS (ENGINEERS) LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 4 -
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 C Carvill
Director
28 April 2026
W.A.C. MCCANDLESS (ENGINEERS) LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF W.A.C. MCCANDLESS (ENGINEERS) LTD
- 5 -
Opinion

We have audited the financial statements of W.A.C. McCandless (Engineers) Ltd (the 'company') for the year ended 31 December 2025 which comprise the statement of income and retained earnings, the statement of financial position, 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 31 December 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.

W.A.C. MCCANDLESS (ENGINEERS) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF W.A.C. MCCANDLESS (ENGINEERS) LTD
- 6 -

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.

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.

W.A.C. MCCANDLESS (ENGINEERS) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF W.A.C. MCCANDLESS (ENGINEERS) LTD
- 7 -
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.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

W.A.C. MCCANDLESS (ENGINEERS) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF W.A.C. MCCANDLESS (ENGINEERS) LTD
- 8 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing potential risks of material misstatement in respect of irregularities, including fraud and non-compliances with laws and regulations, we considered the following:

- The nature of the industry and sector, control environment and business performance, including the company’s remuneration policies for directors, bonus levels and performance targets, if any;

- Results of our enquiries of management about their own identification and assessment of the risks of irregularities;

- Any matters we identified having obtained and reviewed the company’s documentation of their policies and procedures relating to:

  - Identifying, evaluating and complying with laws and regulations and whether they were aware of any instance of non-compliance;

  - Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and

  - The internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

- The matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006, and local tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

W.A.C. MCCANDLESS (ENGINEERS) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF W.A.C. MCCANDLESS (ENGINEERS) LTD
- 9 -

Audit response to risks identified

Our procedures to respond to the risks identified included the following:

- Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

- Enquiring of management concerning actual and potential litigation and claims;

- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- Reading minutes of meetings of those charged with governance and reviewing correspondence with tax authorities; and

- In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. In addition, as with any audit, there remains a higher risk of non-detection of irregularities, as they may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

W.A.C. MCCANDLESS (ENGINEERS) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF W.A.C. MCCANDLESS (ENGINEERS) LTD
- 10 -

The purpose of our audit work and to whom we owe our responsibilities

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.

Ms Gillian Johnston ACA
Senior Statutory Auditor
For and on behalf of GMcG PORTADOWN
28 April 2026
2026-05-07
Chartered Accountants
Statutory Auditor
17 Mandeville Street
Portadown
Craigavon
Co Armagh
BT62 3PB
W.A.C. MCCANDLESS (ENGINEERS) LTD
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 11 -
2025
2024
Notes
£
£
Turnover
3
19,471,648
20,992,310
Cost of sales
(16,182,898)
(17,688,490)
Gross profit
3,288,750
3,303,820
Administrative expenses
(1,621,594)
(1,523,288)
Operating profit
4
1,667,156
1,780,532
Interest receivable and similar income
52,370
43,586
Interest payable and similar expenses
8
-
0
(950)
Profit before taxation
1,719,526
1,823,168
Tax on profit
9
(435,840)
(459,427)
Profit for the financial year
1,283,686
1,363,741
Retained earnings brought forward
6,145,068
5,080,955
Dividends
10
(299,628)
(299,628)
Retained earnings carried forward
7,129,126
6,145,068

The income statement has been prepared on the basis that all operations are continuing operations.

W.A.C. MCCANDLESS (ENGINEERS) LTD
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2025
31 December 2025
- 12 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
11
396,984
389,143
Current assets
Stocks
12
6,311,569
5,330,942
Debtors
13
1,758,802
2,076,012
Cash at bank and in hand
2,605,943
3,115,331
10,676,314
10,522,285
Creditors: amounts falling due within one year
14
(3,591,193)
(4,416,115)
Net current assets
7,085,121
6,106,170
Total assets less current liabilities
7,482,105
6,495,313
Provisions for liabilities
Deferred tax liability
15
86,479
83,745
(86,479)
(83,745)
Net assets
7,395,626
6,411,568
Capital and reserves
Called up share capital
17
111,100
111,100
Share premium account
155,400
155,400
Profit and loss reserves
7,129,126
6,145,068
Total equity
7,395,626
6,411,568

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 28 April 2026 and are signed on its behalf by:
Mr C Carvill
Director
Company registration number NI005177 (Northern Ireland)
W.A.C. MCCANDLESS (ENGINEERS) LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 13 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
506,395
2,760,938
Interest paid
-
0
(950)
Income taxes paid
(647,586)
(302,962)
Net cash (outflow)/inflow from operating activities
(141,191)
2,457,026
Investing activities
Purchase of tangible fixed assets
(152,217)
(190,441)
Proceeds from disposal of tangible fixed assets
31,278
8,799
Interest received
52,370
43,586
Net cash used in investing activities
(68,569)
(138,056)
Financing activities
Repayment of bank loans
-
0
(111,841)
Dividends paid
(299,628)
(299,628)
Net cash used in financing activities
(299,628)
(411,469)
Net (decrease)/increase in cash and cash equivalents
(509,388)
1,907,501
Cash and cash equivalents at beginning of year
3,115,331
1,207,830
Cash and cash equivalents at end of year
2,605,943
3,115,331
W.A.C. MCCANDLESS (ENGINEERS) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 14 -
1
Accounting policies
Company information

W.A.C. McCandless (Engineers) Ltd is a private company limited by shares incorporated in Northern Ireland. The registered office is 95 Limestone Road, Belfast, BT15 3AB.

1.1
Accounting convention

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 n 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.

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.

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.

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:

Land and buildings
4% per annum reducing balance
Plant and machinery
25% per annum straight line
Fixtures and fittings
25% per annum reducing balance
Motor vehicles
25% per annum reducing balance

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.

W.A.C. MCCANDLESS (ENGINEERS) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies (Continued)
- 15 -
1.5
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.

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.

1.6
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.

1.7
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 statement of financial position 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.

W.A.C. MCCANDLESS (ENGINEERS) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies (Continued)
- 16 -
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.

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.

W.A.C. MCCANDLESS (ENGINEERS) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies (Continued)
- 17 -
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.

Derecognition of financial liabilities

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

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.8
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 income statement 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 income statement, 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.

1.9
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 profit or loss.

W.A.C. MCCANDLESS (ENGINEERS) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 18 -
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.

Stock

At each balance sheet date the company's 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 assessment of the selling price of such stock involves some estimation uncertainty.

Taxation

Judgements are made in relation to the calculation of certain aspects of the year end tax provisions and the respective tax charge. The management used external professional advice to support the year end provisions.

Fixed assets

The annual depreciation charge on fixed assets depends primarily on the estimated lives of each type of asset and estimates of residual values. The directors regularly review these asset lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset lives can have a significant impact on depreciation and amortisation charges for the period. Detail of the useful lives is included in the accounting policies.

Debtors

Short term debtors are measured at transaction price, less any impairment. Impairment of such debtors involves some estimation uncertainty

3
Turnover
2025
2024
£
£
Sale of machinery and parts
19,471,648
20,992,310

The directors consider that the company operates one class of business within one geographical market, that being the United Kingdom and Ireland.

2025
2024
£
£
Other revenue
Interest income
52,370
43,586
W.A.C. MCCANDLESS (ENGINEERS) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 19 -
4
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(190,178)
41,541
Fees payable to the company's auditor for the audit of the company's financial statements
7,500
7,500
Depreciation of owned tangible fixed assets
103,885
80,551
Loss/(profit) on disposal of tangible fixed assets
9,213
(2,642)
5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
7,500
7,500
6
Employees

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

2025
2024
Number
Number
30
26

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
1,268,611
1,059,632
Social security costs
150,333
109,953
Pension costs
153,160
108,440
1,572,104
1,278,025
7
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
207,721
190,612
Company pension contributions to defined contribution schemes
129,324
84,315
337,045
274,927

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2024 - 2).

W.A.C. MCCANDLESS (ENGINEERS) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
7
Directors' remuneration (Continued)
- 20 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
110,298
99,864
Company pension contributions to defined contribution schemes
62,652
41,415
8
Interest payable and similar expenses
2025
2024
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
950
9
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
433,106
431,723
Deferred tax
Origination and reversal of timing differences
2,734
27,704
Total tax charge
435,840
459,427

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
1,719,526
1,823,168
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
429,882
455,792
Tax effect of expenses that are not deductible in determining taxable profit
5,958
3,635
Taxation charge for the year
435,840
459,427
W.A.C. MCCANDLESS (ENGINEERS) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 21 -
10
Dividends
2025
2024
Total
Total
£
£
Ordinary Shares
Interim paid
299,628
299,628
11
Tangible fixed assets
Improvements to land and buildings
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2025
369,452
124,022
237,409
437,633
1,168,516
Additions
-
0
25,325
11,709
115,183
152,217
Disposals
-
0
-
0
(226,418)
(65,513)
(291,931)
At 31 December 2025
369,452
149,347
22,700
487,303
1,028,802
Depreciation and impairment
At 1 January 2025
304,982
116,547
212,932
144,912
779,373
Depreciation charged in the year
2,579
3,524
8,789
88,993
103,885
Eliminated in respect of disposals
-
0
-
0
(215,070)
(36,370)
(251,440)
At 31 December 2025
307,561
120,071
6,651
197,535
631,818
Carrying amount
At 31 December 2025
61,891
29,276
16,049
289,768
396,984
At 31 December 2024
64,470
7,475
24,477
292,721
389,143
12
Stocks
2025
2024
£
£
Work in progress
57,371
75,027
Finished goods and goods for resale
6,254,198
5,255,915
6,311,569
5,330,942
W.A.C. MCCANDLESS (ENGINEERS) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 22 -
13
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
1,308,737
1,613,636
Other debtors
-
0
334,714
Prepayments and accrued income
450,065
127,662
1,758,802
2,076,012
14
Creditors: amounts falling due within one year
2025
2024
£
£
Trade creditors
3,011,454
3,872,996
Corporation tax
216,928
431,408
Other taxation and social security
210,296
32,468
Accruals and deferred income
152,515
79,243
3,591,193
4,416,115
15
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
86,479
83,745
2025
Movements in the year:
£
Liability at 1 January 2025
83,745
Charge to profit or loss
2,734
Liability at 31 December 2025
86,479
16
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
153,160
108,440

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.

W.A.C. MCCANDLESS (ENGINEERS) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 23 -
17
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
111,100
111,100
111,100
111,100
18
Related party transactions

W.A.C. McCandless (Engineers) Ltd carries on trade on normal commercial terms with companies under common control (connected companies).

During the year W.A.C. McCandless (Engineers) Ltd made sales of £829,995 (2024 - £668,732) to connected companies and made purchases of £1,440 (2024 - £nil) from connected companies. At the year end, the company was owed £69,214(2024 - £46,045) from connected companies.

Rent, which was charged on a commercial basis, amounting to £40,000 (2024 - £40,000) was paid to directors during the year.

The directors are considered to be key management. Directors remuneration is disclosed at note 7.

19
Cash generated from operations
2025
2024
£
£
Profit after taxation
1,283,686
1,363,741
Adjustments for:
Taxation charged
435,840
459,427
Finance costs
-
0
950
Investment income
(52,370)
(43,586)
Loss/(gain) on disposal of tangible fixed assets
9,213
(2,642)
Depreciation and impairment of tangible fixed assets
103,885
80,551
Movements in working capital:
Increase in stocks
(980,627)
(548,243)
Decrease/(increase) in debtors
317,210
(767,034)
(Decrease)/increase in creditors
(610,442)
2,217,774
Cash generated from operations
506,395
2,760,938
20
Analysis of changes in net funds
1 January 2025
Cash flows
31 December 2025
£
£
£
Cash at bank and in hand
3,115,331
(509,388)
2,605,943
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