Northern Turbine Services Limited

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—9

1. General Information

Northern Turbine Services Limited is a private company, limited by shares, incorporated in Scotland, registered number SC510079 . The registered office is 1 Quarryfield Road, Hatston Industrial Estate, Kirkwall, Orkney, KW15 1GD.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2.2. Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT.

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

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

2.3. Intangible Fixed Assets and Amortisation - Goodwill

Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the separable net assets. It is amortised to profit and loss account over its estimated economic life of 5 years.

2.4. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Freehold	Not depreciated
Leasehold	20% straight line basis
Plant & Machinery	25% reducing balance, 10 year straight line
Motor Vehicles	25% reducing balance basis
Fixtures & Fittings	25% reducing balance basis

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Northern Turbine Services Limited

Notes to the Financial Statements (continued)

For The Year Ended 30 August 2025

2.5. Leasing and Hire Purchase Contracts

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred.

2.6. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

2.7. Financial Instruments

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

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

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.

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.

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.

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

...CONTINUED

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Northern Turbine Services Limited

Notes to the Financial Statements (continued)

For The Year Ended 30 August 2025

2.7. Financial Instruments - continued

Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price and are subsequently carried at amortised cost, using the effective interest rate method. Financial liabilities classified as payable within one year are not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Derecognition of financial liabilities

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

2.8. Foreign Currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

2.9. Taxation

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.

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Northern Turbine Services Limited

Notes to the Financial Statements (continued)

For The Year Ended 30 August 2025

2.10. Pensions

The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.

2.11. Government Grant

Government grants are recognised in the profit and loss account in an appropriate manner that matches them with the expenditure towards which they are intended to contribute.

Grants for immediate financial support or to cover costs already incurred are recognised immediately in the profit and loss account. Grants towards general activities of the entity over a specific period are recognised in the profit and loss account over that period.

Grants towards fixed assets are recognised over the expected useful lives of the related assets and are treated as deferred income and released to the profit and loss account over the useful life of the asset concerned.

All grants in the profit and loss account are recognised when all conditions for receipt have been complied with.

2.12. 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.

2.13. Cash at bank and in hand

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.

2.14. Equity instruments

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

3. Average Number of Employees

Average number of employees, including directors, during the year was: 22 (2024: 20)

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Northern Turbine Services Limited

Notes to the Financial Statements (continued)

For The Year Ended 30 August 2025

4. Intangible Assets

	Goodwill
	£
Cost
As at 31 August 2024	30,000

As at 30 August 2025	30,000

Amortisation
As at 31 August 2024	6,000
Provided during the period	3,000

As at 30 August 2025	9,000

Net Book Value
As at 30 August 2025	21,000

As at 31 August 2024	24,000

5. Tangible Assets

	Land & Buildings	Plant & Machinery etc.	Total
	£	£	£
Cost
As at 31 August 2024	295,705	1,364,717	1,660,422
Additions	429,012	281,947	710,959
Disposals	-	(7,811 )	(7,811 )

As at 30 August 2025	724,717	1,638,853	2,363,570

Depreciation
As at 31 August 2024	54,859	656,045	710,904
Provided during the period	2,653	175,990	178,643
Disposals	-	(1,325 )	(1,325 )

As at 30 August 2025	57,512	830,710	888,222

Net Book Value
As at 30 August 2025	667,205	808,143	1,475,348

As at 31 August 2024	240,846	708,672	949,518

6. Stocks

	2025	2024
	£	£
Materials	826,449	659,673

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Northern Turbine Services Limited

Notes to the Financial Statements (continued)

For The Year Ended 30 August 2025

7. Debtors

	2025	2024
	£	£
Due within one year
Trade debtors	493,206	371,232
Other debtors	118,652	189,568

	611,858	560,800

8. Creditors: Amounts Falling Due Within One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	61,712	46,638
Trade creditors	168,051	225,364
Bank loans and overdrafts	54,119	46,212
Amounts owed to group undertakings	12,490	-
Other creditors	20,979	23,916
Taxation and social security	241,134	186,910

	558,485	529,040

9. Creditors: Amounts Falling Due After More Than One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	175,316	54,993
Bank loans	431,091	194,848

	606,407	249,841

The company has granted to Royal Bank of Scotland PLC a bond and floating charge over the assets of the company as security for certain bank borrowings.

The company has also granted to Royal Bank of Scotland PLC standard security over certain freehold property.

The company operates certain plant and machinery on hire purchase terms.

Of the creditors falling due within and after more than one year the following amounts are due after more than five years.

	2025		2024
	£		£
Bank loans	312,296		79,129

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Northern Turbine Services Limited

Notes to the Financial Statements (continued)

For The Year Ended 30 August 2025

10. Share Capital

	2025	2024
Allotted, called up and fully paid	£	£
60 Ordinary Shares of £ 1.00 each	60	60

11. Other Commitments

The total of future minimum lease payments under non-cancellable operating leases are as following:

	2025	2024
	£	£
Not later than one year	5,500	11,800

	5,500	11,800

12. Directors Advances, Credits and Guarantees

Included within Debtors are the following loans to directors:

	As at 31 August 2024	Amounts advanced	Amounts repaid	Amounts written off	As at 30 August 2025
	£	£	£	£	£
Mr Adrian Kerins	60,406	-	555	-	59,851

The above loan is unsecured, interest free and repayable on demand.

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		2025		2024
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	4		21,000		24,000
Tangible Assets	5		1,475,348		949,518

			1,496,348		973,518
CURRENT ASSETS
Stocks	6	826,449		659,673
Debtors	7	611,858		560,800
Cash at bank and in hand		90,616		67,308

		1,528,923		1,287,781
Creditors: Amounts Falling Due Within One Year	8	(558,485 )		(529,040 )

NET CURRENT ASSETS (LIABILITIES)			970,438		758,741

TOTAL ASSETS LESS CURRENT LIABILITIES			2,466,786		1,732,259

Creditors: Amounts Falling Due After More Than One Year	9		(606,407 )		(249,841 )

PROVISIONS FOR LIABILITIES
Deferred Taxation			(203,668 )		(179,387 )

NET ASSETS			1,656,711		1,303,031

CAPITAL AND RESERVES
Called up share capital	10		60		60
Profit and Loss Account			1,656,651		1,302,971

SHAREHOLDERS' FUNDS			1,656,711		1,303,031