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Registered number: 05511372









CAHILL WELDING SERVICES LTD.









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

 
CAHILL WELDING SERVICES LTD.
 
 
COMPANY INFORMATION


Directors
Mr D J Cahill 
Mr I A Cahill 
Mr D C Kenyon 
Mr M D Cahill 




Company secretary
Mrs C M Cahill



Registered number
05511372



Registered office
Cahill Structures Henstridge Airfield Industrial Estate
Marsh Lane

Henstridge

BA8 0TN




Independent auditors
Barlow Andrews LLP

Carlyle House

78 Chorley New Road

Bolton

BL1 4BY





 
CAHILL WELDING SERVICES LTD.
 

CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3
Directors' Responsibilities Statement
4
Independent Auditors' Report
5 - 8
Statement of Comprehensive Income
9
Balance Sheet
10 - 11
Statement of Changes in Equity
12
Notes to the Financial Statements
13 - 31


 
CAHILL WELDING SERVICES LTD.
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2025

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

Review of the business
 
Cahill Welding Services Ltd are a privately-owned, award-winning Steelwork Contractor operating from a modern purpose-built facility supplying quality structural steelwork throughout the UK.

In line with much of our industry, we were predicting a busy 2024/25 and had resourced the company accordingly to take advantage of the predicted workload.

The start of our new financial year looked promising with a raft of major project wins, these combined with a steady flow of smaller contracts gave us a degree of comfort going forward.   Unfortunately, by Jan 2025 several large projects had been shelved completely and many smaller contracts severely delayed which left us with large gaps in both production and site activities.

The shortfall in production and the requirement to quickly secure alternative workload in a rapidly softening market, negatively impacted our selling price & margin.

Although 2024/25 has been an extremely challenging year the company directors are pleased with the way it has been managed throughout the period which is testament to the determination & dedication of the whole team.

We have continued to invest in our workshop, painting and design capabilities which puts us in a good position to capitalise on the right opportunities going forward.

The key performance indicators for the company are as follows:
2025
2024
        £
        £
Turnover

24,964,131

33,661,189

Profit/(Loss) before taxation

(476,286)

3,267,319

Gross profit margin

12.73%

20.76%


Page 1

 
CAHILL WELDING SERVICES LTD.
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025

Principal risks and uncertainties
 
Client Failure, Credit worthiness is reviewed regularly, and contracts are only undertaken subject to having adequate credit insurance and suitably agreed terms in respect of payments, material vesting and the like.

The business wherever possible operates on the basis that no single client equates to more than 20% of our annual turnover.

Material cost remains volatile and can often change in a matter of weeks with very little notice; the business has long established relationships with major UK steel stockists and able to lock in steel rates several months in advance reducing the risk of unexpected cost increases and we are able to bring in vested materials ahead of the project start dates.

We identified further risks as follows:

(a) A potential slowing down of construction. The company is working strategically so that turnover is spread between multiple different sectors so that this risk is minimised as much as possible.

(b) Potential liquidation of customers (causing cash flow issues) and suppliers (causing supply chain issues). As regards to customers, the company undertakes credit control on a timely basis and is in constant dialogue with all customers to ensure we are paid within terms. The company continues to check on its suppliers to ensure that they have the supplies that the company will need with many products and materials being procured months in advance.

(c) Borrowing rate risk due to the level of bank borrowing undertaken to finance asset acquisitions and for general working capital. The company has a CBILS loan (Coronavirus Business Interruption Loan Scheme) at low fixed interest rates, which is repayable over 6 years, with the first 6 months interest paid by government. Hire purchase agreements are all fixed payment terms going forward, so the company is currently able to plan the repayment of all existing borrowings with a good degree of certainty around when repayments are due.

Future developments
 
As we enter our financial year 2025/26, we are content with the secured workload and pipeline of work going forward, which we believe puts us in a robust position and predict a better year ahead.


This report was approved by the board on 28 May 2026 and signed on its behalf.



Mr D J Cahill
Director

Page 2

 
CAHILL WELDING SERVICES LTD.
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2025

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

Results and dividends

The loss for the year, after taxation, amounted to £451,160 (2024 - profit £2,576,990).

Ordinary dividends were paid amounting to £380,000. The directors do not recommend payment of a final dividend.

Directors

The directors who served during the year were:

Mr D J Cahill 
Mr I A Cahill  
Mr D C Kenyon 
Mr M D Cahill  

Matters covered in the Strategic Report

The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

A resolution proposing that AAB Audit & Accountancy Limited to be appointed as auditors in the next financial year will be put at a General Meeting. 

This report was approved by the board on 28 May 2026 and signed on its behalf.
 





Mr D J Cahill
Director

Page 3

 
CAHILL WELDING SERVICES LTD.
 
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2025

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;


prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 4

 
CAHILL WELDING SERVICES LTD.
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CAHILL WELDING SERVICES LTD.
 

Opinion


We have audited the financial statements of Cahill Welding Services Limited. (the 'Company') for the year ended 31 August 2025, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 August 2025 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 5

 
CAHILL WELDING SERVICES LTD.
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CAHILL WELDING SERVICES LTD. (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the 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 identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, 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' Responsibilities Statement set out on page 4, 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.


Page 6

 
CAHILL WELDING SERVICES LTD.
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CAHILL WELDING SERVICES LTD. (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience:
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and taxation legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; 
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships; 
tested journal entries to identify unusual transactions; 
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: 

agreeing financial statement disclosures to underlying supporting documentation; 
enquiring of management as to actual and potential litigation and claims

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Page 7

 
CAHILL WELDING SERVICES LTD.
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CAHILL WELDING SERVICES LTD. (CONTINUED)


Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Alison Cornes (Senior Statutory Auditor)
  
for and on behalf of
Barlow Andrews LLP, Statutory Auditor
 
Carlyle House
78 Chorley New Road
Bolton
BL1 4BY

28 May 2026
Page 8

 
CAHILL WELDING SERVICES LTD.
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2025

2025
2024
Note
£
£

  

Turnover
 4 
24,964,131
33,661,189

Cost of sales
  
(21,776,331)
(26,671,546)

Gross profit
  
3,187,800
6,989,643

Administrative expenses
  
(3,433,377)
(3,565,902)

Other operating income
  
55,545
3,600

Operating (loss)/profit
5
(190,032)
3,427,341

Interest payable and similar expenses
 9 
(286,254)
(160,022)

(Loss)/profit before tax
  
(476,286)
3,267,319

Tax on (loss)/profit
 10 
25,126
(690,329)

(Loss)/profit for the financial year
  
(451,160)
2,576,990

The profit and loss account has been prepared on the basis that all operations are continuing operations.

There was no other comprehensive income for 2025 (2024:£NIL).

Page 9

 
CAHILL WELDING SERVICES LTD.
REGISTERED NUMBER: 05511372

BALANCE SHEET
AS AT 31 AUGUST 2025

2025
2024
Note
£
£

Fixed assets
  

Intangible assets
 12 
223,200
342,549

Tangible assets
 13 
7,222,378
7,482,747

Investments
 14 
18,750
-

  
7,464,328
7,825,296

Current assets
  

Stocks
 15 
687,270
631,989

Debtors: amounts falling due within one year
 16 
6,738,328
9,406,798

Cash at bank and in hand
  
533
632,671

  
7,426,131
10,671,458

Creditors: amounts falling due within one year
 17 
(5,565,183)
(8,535,902)

Net current assets
  
 
 
1,860,948
 
 
2,135,556

Total assets less current liabilities
  
9,325,276
9,960,852

Creditors: amounts falling due after more than one year
 18 
(2,362,622)
(2,141,912)

Provisions for liabilities
  

Deferred tax
 21 
(1,625,062)
(1,650,188)

  
 
 
(1,625,062)
 
 
(1,650,188)

Net assets
  
5,337,592
6,168,752


Capital and reserves
  

Called up share capital 
  
100
100

Profit and loss account
  
5,337,492
6,168,652

  
5,337,592
6,168,752


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 May 2026.




Mr D J Cahill
Director

Page 10

 
CAHILL WELDING SERVICES LTD.
REGISTERED NUMBER: 05511372
    
BALANCE SHEET (CONTINUED)
AS AT 31 AUGUST 2025

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Page 11

 
CAHILL WELDING SERVICES LTD.
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2025


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 September 2023
100
4,191,662
4,191,762


Comprehensive income for the year

Profit for the year
-
2,576,990
2,576,990


Contributions by and distributions to owners

Dividends: Equity capital
-
(600,000)
(600,000)



At 1 September 2024
100
6,168,652
6,168,752


Comprehensive income for the year

Loss for the year
-
(451,160)
(451,160)


Contributions by and distributions to owners

Dividends: Equity capital
-
(380,000)
(380,000)


At 31 August 2025
100
5,337,492
5,337,592


Page 12

 
CAHILL WELDING SERVICES LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

1.


General information

Company information
Cahill Welding Services Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 5 & 6 The Saw Mills, Middlemarsh, Sherborne, Dorset.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006..

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 "Share based Payment": Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of I & D Cahill Ltd. These consolidated financial statements are available from its registered office, The Station House, Station Road, Whalley, Lancashire.

Page 13

 
CAHILL WELDING SERVICES LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)

 
2.2

Going concern

The financial statements have been prepared on a going concern basis. Although the company recorded a loss for the financial year, the directors have assessed the company's financial position. liquidity and future trading prospects.

The company does not prepare formal cash flow forecasts, but the directors undertake regular monitoring of cash balances, expected receipts and upcoming commitments. This monitoring provides sufficient visibility to ensure that the company can meet its obligations as they fall due.

Following the year end, the company has returned to profitability, with trading performance demonstrating improved margins and operational stability.

The company also benefits from a strong order book, giving the directors confidence in the level of future revenues. This, combined with improved post-year-end trading, supports the directors' view that the company will continue to operate for the forseeable future.

Based on these considerations, the directors believe that the going concern basis of preparation remains appropriate.

 
2.3

Revenue

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

Profit is recognised on long term contracts if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account, turnover and related costs as contract activity progresses. Turnover is calculated as the proportion of the contract value which is estimated to have been completed.

 
2.4

Leases

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase 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 creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Page 14

 
CAHILL WELDING SERVICES LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)

 
2.5

Research and 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.

 
2.6

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.7

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Page 15

 
CAHILL WELDING SERVICES LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)

 
2.8

Intangible fixed assets other than goodwill

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values.

 Amortisation is provided on the following bases:

Research and development costs
-
7 years straight line

 
2.9

Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment bases.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives.

Depreciation is provided on the following basis:

Long-term leasehold property
-
Straight line over the lease term
Plant and machinery
-
10 - 15% reducing balance / over the useful life of the asset
Motor vehicles
-
25% reducing balance
Fixtures and fittings
-
50% reducing balance


Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

  
2.10

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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). 

 
2.11

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 16

 
CAHILL WELDING SERVICES LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)

  
2.12

Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

 
2.13

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand.

 
2.14

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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. 

Page 17

 
CAHILL WELDING SERVICES LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)


2.14
Financial instruments (continued)

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Basic 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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

  
2.15

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the balance sheet.  

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Page 18

 
CAHILL WELDING SERVICES LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

3.


Judgments in applying accounting policies 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.

Amounts recoverable on long term contracts
Profit on long term contracts is recognised in the profit or loss account based on the amount of chargeable work carried out by the end of the financial period less amounts already invoiced to the customer. A level of judgement is applied in assessing the likely overall outcome of the project.

Residual life of assets

angible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation and maintenance programmes are taken into account. Residual value estimates consider issues such as future market conditions, the remaining life of the assets and projected disposal values.


4.


Turnover

An analysis of turnover by class of business is as follows:


2025
2024
£
£

Contract income
24,964,131
33,661,189

24,964,131
33,661,189


Analysis of turnover by country of destination:

2025
2024
£
£

United Kingdom
24,964,131
33,661,189

24,964,131
33,661,189


Page 19

 
CAHILL WELDING SERVICES LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

5.


Operating profit

2025
2024
£
£
Operating profit for the year is stated after charging/(crediting):





Research and development costs
-
183,549

Depreciation of owned tangible fixed assets
362,673
304,852

Depreciation of tangible fixed assets held under finance leases
490,309
418,303

Profit on disposal of tangible fixed assets
(11,567)
(1,848)

Amortisation of intangible assets
119,349
119,350

Operating lease charges
341,213
370,098


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2025
2024
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
19,000
18,000

Page 20

 
CAHILL WELDING SERVICES LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2025
2024
£
£

Wages and salaries
4,944,541
5,038,062

Social security costs
605,381
543,097

Cost of defined contribution scheme
120,936
237,814

5,670,858
5,818,973


The average monthly number of employees, including the directors, during the year was as follows:


        2025
        2024
            No.
            No.







Production
96
101



Administration and support
11
6



Sales
6
6

113
113


8.


Directors' remuneration

2025
2024
£
£

Directors' emoluments
129,948
130,350

Company contributions to defined contribution pension schemes
9,761
129,623

139,709
259,973


During the year retirement benefits were accruing to 3 directors (2024 - 3) in respect of defined contribution pension schemes.

Page 21

 
CAHILL WELDING SERVICES LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

9.


Interest payable and similar expenses

2025
2024
£
£


Bank interest payable
53,024
33,705

Finance leases and hire purchase contracts
228,334
124,554

Other interest payable
4,896
1,763

286,254
160,022


10.


Taxation


2025
2024
£
£

Corporation tax


Current tax on profits for the year
-
145,373


-
145,373


Total current tax
-
145,373

Deferred tax


Origination and reversal of timing differences
(25,126)
544,956

Total deferred tax
(25,126)
544,956


Tax on (loss)/profit
(25,126)
690,329
Page 22

 
CAHILL WELDING SERVICES LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is the same as (2024 - the same as) the standard rate of corporation tax in the UK of 25% (2024 - 25%) as set out below:

2025
2024
£
£


(Loss)/profit on ordinary activities before tax
(476,286)
3,267,319


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)
(119,072)
816,830

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
2,391
889

Capital allowances for year in excess of depreciation
84,187
71,408

Utilisation of tax losses
7,368
(107,156)

Research and development tax credit
-
(91,642)

Total tax charge for the year
(25,126)
690,329


11.


Dividends

2025
2024
£
£


Interim paid
380,000
600,000

380,000
600,000

Page 23

 
CAHILL WELDING SERVICES LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

12.


Intangible assets




Research and development costs

£



Cost


At 1 September 2024
839,766



At 31 August 2025

839,766



Amortisation


At 1 September 2024
497,217


Charge for the year on owned assets
119,349



At 31 August 2025

616,566



Net book value



At 31 August 2025
223,200



At 31 August 2024
342,549



Page 24

 
CAHILL WELDING SERVICES LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

13.


Tangible fixed assets


Long-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 1 September 2024
3,242,201
4,870,387
1,199,480
74,664
9,386,732


Additions
135,191
583,061
349,514
2,970
1,070,736


Disposals
-
(285,000)
(398,633)
(1,064)
(684,697)



At 31 August 2025

3,377,392
5,168,448
1,150,361
76,570
9,772,771



Depreciation


At 1 September 2024
125,724
1,343,251
406,404
28,606
1,903,985


Charge for the year on owned assets
106,152
498,725
223,105
25,000
852,982


Disposals
-
(47,500)
(158,727)
(347)
(206,574)



At 31 August 2025

231,876
1,794,476
470,782
53,259
2,550,393



Net book value



At 31 August 2025
3,145,516
3,373,972
679,579
23,311
7,222,378



At 31 August 2024
3,116,477
3,527,136
793,076
46,058
7,482,747

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2025
2024
£
£



Plant and machinery
2,701,644
2,597,570

Motor vehicles
443,672
544,585

3,145,316
3,142,155

Page 25

 
CAHILL WELDING SERVICES LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

14.


Fixed asset investments





Fixed asset investments

£



Cost or valuation


Additions
18,750



At 31 August 2025
18,750





15.


Stocks

2025
2024
£
£

Raw materials and consumables
687,270
631,989

687,270
631,989



16.


Debtors

2025
2024
£
£


Trade debtors
218,407
791,521

Amounts owed by group undertakings
18,935
46,845

Other debtors
36,484
433,129

Prepayments and accrued income
52,610
40,908

Amounts recoverable on long-term contracts
6,411,892
8,094,395

6,738,328
9,406,798


Page 26

 
CAHILL WELDING SERVICES LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

17.


Creditors: Amounts falling due within one year

2025
2024
£
£

Bank overdrafts
450,718
-

Bank loans
30,303
43,426

Other loans
97,208
145,586

Trade creditors
2,633,302
6,483,229

Amounts owed to group undertakings
774,235
-

Corporation tax
98,410
145,373

Other taxation and social security
199,909
176,436

Obligations under finance lease and hire purchase contracts
598,821
613,573

Other creditors
454,355
382,306

Accruals and deferred income
227,922
545,973

5,565,183
8,535,902



18.


Creditors: Amounts falling due after more than one year

2025
2024
£
£

Bank loans
-
30,303

Other loans
48,331
147,775

Net obligations under finance leases and hire purchase contracts
2,314,291
1,963,834

2,362,622
2,141,912


Page 27

 
CAHILL WELDING SERVICES LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

19.


Loans


Analysis of the maturity of loans is given below:


2025
2024
£
£

Amounts falling due within one year

Bank loans
30,303
43,426

Other loans
97,208
145,586


127,511
189,012

Amounts falling due 1-2 years

Bank loans
-
30,303

Other loans
48,331
147,775


48,331
178,078



175,842
367,090


Security

The company has an unlimited debenture dated 14 May 2010 which incorporates a fixed and floating charge over the assets of the company and a charge (taken out in 2012) over life policies with Scottish Widows on the lives of the directors of the company at that time.

An intercompany and set off agreement was made on 17 August 2023 between the group companies, I & D Cahill Ltd and Cahill Welding Services Ltd, and Lloyds Bank plc.

Bank borrowings

Coronavirus Business Interruption Loan has a nominal interest rate of 1.73%, and the final instalment is due on 25 August 2026. The carrying amount at year end is £30,303 (2024 - £73,729). This loan is 80% backed by government and no security was required to be given for this loan.

Other borrowings

Funding Circle CBILS has a fixed interest rate of 8.9%, and the final instalment is due on 24 February 2026. The carrying amount at year end is £36,308 (2024 - £104,782). The loan is 80% backed by government and no security was required to be given for the loan.

Market Finance has a fixed interest rate of 9.89%, and the final instalment is due on 26 April 2027. The carrying amount at year end is £66,630 (2024 - £103,381). No security has been given for the loan.

Conister Loan has a fixed interest rate of 8.78%, and the final instalment is due on 3 May 2027. The carrying amount at year end is £42,601 (2024 - £62,107). No security has been given for the loan.

Page 28

 
CAHILL WELDING SERVICES LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

20.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2025
2024
£
£


Within one year
598,818
613,573

Between 1-5 years
2,031,407
1,693,904

Over 5 years
282,884
269,930

2,913,109
2,577,407

Obligations under finance leases are secured on the assets which they relate to.  Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.


21.


Deferred taxation




2025
2024


£

£






At beginning of year
(1,650,188)
(1,105,232)


Charged to profit or loss
25,126
(544,956)



At end of year
(1,625,062)
(1,650,188)

The provision for deferred taxation is made up as follows:

2025
2024
£
£


Accelerated capital allowances
(1,625,062)
(1,650,188)

(1,625,062)
(1,650,188)

Page 29

 
CAHILL WELDING SERVICES LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

22.


Retirement benefit schemes

2025
2024
£
£

Defined contribution schemes


Charge to profit or loss in respect of defined contribution schemes
120,936
237,814

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 independent administered fund.


23.

Share capital

2025
2024
2025
2024
       Number
      Number
        £
        £
Ordinary shares of £1 each

100

100

100
 
100
 


24.


Financial commitments, guarantees and contingent liabilities

The company is party to a cross guarantee given to its bankers in respect of loan facilities. The terms of the guarantee provide cross guarantees between Cahill Welding Services Ltd and I & D Cahill Ltd. The amount outstanding under this facility at 31 August 2025, excluding the amount included in creditors in this company, was £437,917 (2024: £474,000).


25.


Operating lease commitments

At 31 August 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2025
2024
£
£


Not later than 1 year
370,560
370,560

Later than 1 year and not later than 5 years
1,482,240
1,482,240

Later than 5 years
5,654,608
6,025,168

7,507,408
7,877,968

Page 30

 
CAHILL WELDING SERVICES LTD.
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

26.


Related party transactions

During the year the company entered into the following transactions with related parties:


Sales 2025
Sales 2024
Purchases 2025
Purchases 2024
£
£
£
£

Other related parties
39,249
5,500
122,163
590,669

The following amounts were outstanding at the reporting end date:


27.


Amounts due to related parties

2025
2024
£
£



Entities under common control
-
240,000

Other related parties
122,163
2,691


Amounts due from related parties

2025
2024
£
£



Other related parties
18,935
22,100


28.


Directors' transactions

At the year end there was a balance of £0 due from the directors (2024: £34,986). No interest has been charged and the loan is repayable on demand.


29.


Controlling party

The ultimate controlling party of the company is I & D Cahill Ltd 

The registered office of the parent company is Cahill Structures Henstridge Airfield Industrial Estate, Marsh Lane, Henstridge, United Kingdom.

I & D Cahill Ltd prepares group financial statements and copies can be obtained from Companies House, Crown Way, Maindy, Cardiff.

 
Page 31