Phillip Rees Welding Limited Filleted accounts for Companies House (small and micro)

COMPANY REGISTRATION NUMBER: 05539931

Phillip Rees Welding Limited

Filleted Unaudited Financial Statements

31 August 2025

Phillip Rees Welding Limited

Financial Statements

Year ended 31 August 2025

CONTENTS	PAGE

Officers and professional advisers	1

Statement of financial position	2

Notes to the financial statements	4

Phillip Rees Welding Limited

Officers and Professional Advisers

Director	Mr P Rees

Company secretary	Anne Everall

Registered office	Tir Bont Farm Foelgastell
	Cefneithin
	Llanelli
	Dyfed
	United Kingdom
	SA14 7HL

Accountants	James & Uzzell Ltd
	Chartered Certified Accountants
	Axis 15, Axis Court
	Mallard Way
	Riverside Business Park
	Swansea
	SA7 0AJ

Phillip Rees Welding Limited

Statement of Financial Position

31 August 2025

	2025	2024
		(restated)
Note	£	£

FIXED ASSETS

Tangible assets	7	–	579,309

CURRENT ASSETS

Stocks	8	79,612	136,377
Debtors	9	538,983	96,307
Cash at bank and in hand		567,711	299,419
		------------	---------
		1,186,306	532,103

CREDITORS: amounts falling due within one year	10	547,739	471,098
		------------	---------
NET CURRENT ASSETS		638,567	61,005
		---------	---------
TOTAL ASSETS LESS CURRENT LIABILITIES		638,567	640,314

PROVISIONS	–	99,731
	---------	---------
NET ASSETS	638,567	540,583
	---------	---------

CAPITAL AND RESERVES

Called up share capital	12	1	1
Profit and loss account		638,566	540,582
		---------	---------
SHAREHOLDERS FUNDS		638,567	540,583
		---------	---------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.

For the year ending 31 August 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The director acknowledges her responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

Phillip Rees Welding Limited

Statement of Financial Position (continued)

31 August 2025

These financial statements were approved by the board of directors and authorised for issue on 22 May 2026 , and are signed on behalf of the board by:

Phillip Rees

Director

Company registration number: 05539931

Phillip Rees Welding Limited

Notes to the Financial Statements

Year ended 31 August 2025

1. GENERAL INFORMATION

Phillip Rees Welding Limited is a private company limited by shares incorporated in England & Wales, United Kingdom. The address of the registered office is given in the company information on page 1 of these financial statements. The nature of the company's operations and principal activities are repairs of machinery.

2. STATEMENT OF COMPLIANCE

The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 'The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102)', Section 1A for Small Entities and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £1. The reporting period of these financial statements and its comparative period is 12 months. These financial statements only include the results of the individual entity made up to 31 August 2025. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Exceptional item

Exceptional items are disclosed separately in the financial statements in order to provide further understanding of the financial performance of the entity. They are material items of income or expense that have been shown separately because of their nature or amount.

Employee benefits

When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

Going concern

The director has considered the future trading position of the company and is confident that the going concern principle can be applied to the financial statements.

Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

Provisions

Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

Critical accounting estimates and assumptions

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 12 for the carrying amount of the property plant and equipment, and the depreciation accounting policy for the useful economic lives for each class of assets.

Impairment of debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 13 for the net carrying amount of the debtors and associated impairment provision.

Goodwill and intangible fixed assets

Accounting standards require the recognition of intangible assets as part of a business combination. The methods used to value such intangible assets require the use of estimates. Future results are impacted by the amortisation periods adopted and changes to the estimated useful lives would result in different effects on the profit and loss account and balance sheet. Goodwill is amortised and tested at least annually for impairment along with finite lives of intangible assets and other assets. Tests for impairment are based on subjective assumptions.

Stock provisioning

The company provides repairs of machinery services and is subject to consumer demands. As a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability.

Research & Development

Research & development tax claims could use an element of judgement for the stage of completion of the project. Capitalised research and development is amortised over the estimated useful life of the project.

Provisions

Estimates are used in determining the value of provisions when recognised. This will be based on historical information, known expectations and reasonable outcomes.

Going Concern

The assessment of going concern may include the use of critical judgements in respect of impact of various external factors such as political, economic and social issues. Material uncertainties are considered in this regard.

Debtors and creditors receivable/payable within one year

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.

Research & development

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Turnover and other income

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. The policies adopted for the recognition of turnover are as follows: Sale of goods Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Rendering of services When the outcome of a transaction can be estimated reliably, turnover from repairs of machinery is recognised by reference to the stage of completion at the balance sheet date. Where the outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable. Rent receivable Rent receivable is recognised when an invoice is raised at the beginning of the rental period. Interest receivable Interest income is recognised using the effective interest method.

Tax

Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

Intangible assets - goodwill

Goodwill arising on business combinations is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful life. The period chosen for writing off goodwill is 10 years. Provision is made for any impairment

Amortisation

Intangible assets are amortised on a straight line basis over their useful lives. The useful lives of intangible assets are as follows:

	Goodwill	-	amortised over 10 years

Provision is made for any impairment.

Tangible assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Freehold property	-	2% straight line
Plant and machinery	-	15% reducing balance
Fixtures and fittings	-	15% reducing balance
Motor vehicles	-	15% reducing balance

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Leases

Assets acquired under finance leases are capitalised and depreciated over the shorter of the lease term and the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligations, net of future finance charges, are included in creditors. Where goods are sold using finance leases, the entity recognises turnover from the sale of goods and the rights to receive future lease payments as a debtor. Minimum lease payments are apportioned between finance income and the reduction of the lease debtor with finance income allocated so as to produce a constant periodic rate of interest on the net investment in the finance lease. Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the accrual model.

4. EMPLOYEE NUMBERS

The average number of persons employed by the company during the year amounted to 10 (2024: 12 ).

5. EXCEPTIONAL ITEMS

This relates to an inter company balance that has been written off

6. INTANGIBLE ASSETS

	Goodwill
	£
Cost
At 1 September 2024 (as restated) and 31 August 2025	26,188
	--------
Amortisation
At 1 September 2024 and 31 August 2025	26,188
	--------
Carrying amount
At 31 August 2025	–
	--------
At 31 August 2024	–
	--------

7. TANGIBLE ASSETS

	Freehold property	Plant and machinery	Fixtures and fittings	Motor vehicles	Total
	£	£	£	£	£
Cost
At 1 September 2024 (as restated)	197,844	678,466	65,095	118,940	1,060,345
Additions	–	40,530	–	–	40,530
Transfers	(197,844)	(718,996)	(65,095)	(118,940)	(1,100,875)
	---------	---------	--------	---------	------------
At 31 August 2025	–	–	–	–	–
	---------	---------	--------	---------	------------
Depreciation
At 1 September 2024	8,444	384,223	37,290	51,079	481,036
Charge for the year	1,978	23,243	2,085	5,090	32,396
Transfers	(10,422)	(407,466)	(39,375)	(56,169)	(513,432)
	---------	---------	--------	---------	------------
At 31 August 2025	–	–	–	–	–
	---------	---------	--------	---------	------------
Carrying amount
At 31 August 2025	–	–	–	–	–
	---------	---------	--------	---------	------------
At 31 August 2024	189,400	294,243	27,805	67,861	579,309
	---------	---------	--------	---------	------------

8. STOCKS

	2025	2024
		(restated)
	£	£
Finished goods and goods for resale	79,612	136,377
	--------	---------

9. DEBTORS

	2025	2024
		(restated)
	£	£
Trade debtors	44,604	83,493
Amounts owed by group undertakings and undertakings in which the company has a participating interest	475,934	–
Other debtors	18,445	12,814
	---------	--------
	538,983	96,307
	---------	--------

10. CREDITORS: amounts falling due within one year

	2025	2024
		(restated)
	£	£
Trade creditors	205,863	152,173
Corporation tax	29,574	8,787
Social security and other taxes	–	8,678
Other creditors	312,302	301,460
	---------	---------
	547,739	471,098
	---------	---------

11. PRIOR YEAR ADJUSTMENTS

There is a prior year adjustment in relation to the increase of voted dividends, to the shareholders of the company.

12. CALLED UP SHARE CAPITAL

Issued, called up and fully paid

	2025		2024
			(restated)
	No.	£	No.	£
Ordinary shares of £ 1 each	1	1	1	1
	----	----	----	----

13. RELATED PARTY TRANSACTIONS

The aggregate amount of balances with related parties are as follows: Key Management & Personnel

	2025	2024
	£	£
Balance owed by the company	79,659	60,276

Exemption under Section 33.1A has been claimed to not disclose transactions for 100% group companies.

14. PARENT UNDERTAKINGS

The ultimate parent company is M4 Trailers Limited, a company incorporated in England and Wales. Its registered office is the same as that displayed on page 1 of these financial statements