Company No: 03282135 (England and Wales)

Contents

• Company Information
• Statement of Financial Position
• Notes to the Financial Statements

DIRECTORS	J S Lee
	J A Smith
	J Sproule

REGISTERED OFFICE	Wey Court West
	Union Road
	Farnham
	Surrey
	GU9 7PT
	United Kingdom

COMPANY NUMBER

03282135 (England and Wales)

ACCOUNTANT	Shaw Gibbs Limited
	Wey Court West
	Union Road
	Farnham
	Surrey
	GU9 7PT

	Note	2024		2023
		£		£
Fixed assets
Tangible assets	3	33,254		47,820
		33,254		47,820
Current assets
Stocks	4	23,000		23,000
Debtors	5	481,163		405,670
Cash at bank and in hand	6	12,140		14,025
		516,303		442,695
Creditors: amounts falling due within one year	7	( 517,014)		( 423,217)
Net current (liabilities)/assets		(711)		19,478
Total assets less current liabilities		32,543		67,298
Creditors: amounts falling due after more than one year	8	( 4,780)		( 14,912)
Provision for liabilities	9	( 4,241)		( 5,920)
Net assets		23,522		46,466
Capital and reserves
Called-up share capital	10	4		4
Revaluation reserve		0		15,000
Profit and loss account		23,518		31,462
Total shareholder's funds		23,522		46,466

For the financial year ending 31 December 2024 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The member has not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Statement of Comprehensive Income has not been delivered.

The financial statements of Hawthorns Engineering Limited (registered number: 03282135) were approved and authorised for issue by the Board of Directors on 12 May 2026. They were signed on its behalf by:

J Sproule Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Hawthorns Engineering Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Wey Court West, Union Road, Farnham, Surrey, GU9 7PT, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Going concern

The directors have assessed the Statement of Financial Position and likely future cash flows at the date of approving these financial statements. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Turnover

Turnover is stated net of VAT and trade discounts and is recognised when the significant risks and rewards are considered to have been transferred to the buyer. Turnover from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable. Where a contract has only been partially completed at the Statement of Financial Position date turnover represents the fair value of the service provided to date based on the stage of completion of the contract activity at the Statement of Financial Position date. Where payments are received from customers in advance of services provided, the amounts are recorded as deferred income and included as part of creditors due within one year.

Employee benefits

Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Statement of Comprehensive Income in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Statement of Financial Position.

Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Taxation

Current tax
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Leasehold improvements	10 years straight line
Plant and machinery	6.66 years straight line
Vehicles	25 % reducing balance
Office equipment	25 % reducing balance

Depreciation methods, useful lives and residual values are reviewed at each balance sheet date. The selection of these residual values and estimated lives requires the exercise of judgement. The directors are required to assess whether there is an indication of impairment to the carrying value of assets. In making that assessment, judgements are made in estimating value in use. The directors consider that the individual carrying values of assets are supportable by their value in use.

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.

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

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.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

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.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Statement of Financial Position date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

2. Employees

	2024		2023
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	18		18

3. Tangible assets

	Leasehold improve- ments		Plant and machinery		Vehicles		Office equipment		Total
	£		£		£		£		£
Cost
At 01 January 2024	150,000		120,259		63,650		11,610		345,519
Additions	0		8,046		3,850		0		11,896
Disposals	0		0		( 3,500)		0		( 3,500)
At 31 December 2024	150,000		128,305		64,000		11,610		353,915
Accumulated depreciation
At 01 January 2024	135,000		107,537		46,471		8,691		297,699
Charge for the financial year	15,000		5,500		4,478		730		25,708
Disposals	0		0		( 2,745)		0		( 2,745)
At 31 December 2024	150,000		113,036		48,204		9,421		320,661
Net book value
At 31 December 2024	0		15,269		15,796		2,189		33,254
At 31 December 2023	15,000		12,722		17,179		2,919		47,820

4. Stocks

	2024		2023
	£		£
Stocks	23,000		23,000

5. Debtors

	2024		2023
	£		£
Trade debtors	62,613		46,580
Amounts owed by Group undertakings	202,060		173,289
Prepayments	26,490		17,801
Other debtors	190,000		168,000
	481,163		405,670

6. Cash and cash equivalents

	2024		2023
	£		£
Cash at bank and in hand	12,140		14,025
Less: Bank overdrafts	( 34,054)		( 14,589)
	(21,914)		(564)

7. Creditors: amounts falling due within one year

	2024		2023
	£		£
Bank loans and overdrafts	44,054		24,589
Trade creditors	243,816		207,039
Amounts owed to directors	151,800		0
Accruals	7,005		5,000
Corporation tax	4,311		8,506
Other taxation and social security	53,958		176,594
Other creditors	12,070		1,489
	517,014		423,217

8. Creditors: amounts falling due after more than one year

	2024		2023
	£		£
Bank loans	4,780		14,912

9. Deferred tax

	2024		2023
	£		£
At the beginning of financial year	( 5,920)		( 8,548)
Credited to the Profit and Loss Account	1,679		2,628
At the end of financial year	( 4,241)		( 5,920)

The deferred taxation balance is made up as follows:

	2024		2023
	£		£
Tax losses carry forward	1,217		0
Accelerated capital allowances	( 5,458)		( 5,920)
	( 4,241)		( 5,920)

10. Called-up share capital

	2024		2023
	£		£
Allotted, called-up and fully-paid
4 Ordinary shares of £ 1.00 each	4		4

11. Financial commitments

Commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

	2024		2023
	£		£
within one year	90,000		90,000
between one and five years	51,667		141,667
Total future minimum lease payments under non-cancellable operating leases	141,667		231,667

Pensions

The Company operates a defined contribution pension scheme for the directors and employees. The assets of the scheme are held separately from those of the Company in an independently administered fund.

	2024		2023
	£		£
Other pensions commitments not shown in the Balance Sheet	14,985		10,391

12. Loans

Analysis of the maturity of loans is given below:

	2024		2023
	£		£
Bank loans falling due within one year	4,780		10,000
Bank loans falling due 1-2 years	0		4,912
	4,780		14,912

13. Ultimate controlling party

The parent company is Hawthorns Cars Limited, the ultimate controlling party is Mr J Sproule.