REACT ENGINEERING LIMITED


Directors	BOTTERILL, Paul Timothy
	CRAIG, Trevor James, Dr
	GATE, Adrian Michael
	KNIGHT, Stephen
	REDFERN, Philip Anthony
	WOOLAGHAN, Thomas Peter


Company Secretary	BOTTERILL, Paul Timothy


Registered Address	The Flax Works Cleator Mills Business Park
	Old Kangol Road
	Cleator
	CA23 3FA


Registered Number	02966923 (England and Wales)

Notes to the Financial Statements
for the year ended 31 October 2025

1.	Accounting policies

	Statutory information
	The company is a private company limited by shares and registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

	Basis of preparation
	The financial statements have been prepared under the historical cost convention on a going concern basis unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

	Functional and presentation currency
	The financial statements are presented in sterling and this is the functional currency of the company.

	Turnover policy
	Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and/or the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

Turnover policy

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and/or the rendering of services.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. 

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

	Operating leases
	Where, substantially, all the risks and rewards of ownership of the asset do not transfer from the lessor to the company, the lease is treated as an operating lease. Rentals payable under operating leases are charged to the Income Statement on a straight-line basis over the period of the lease. Where the company is a lessor, rental income from operating leases is credited to the Income Statement on a straight-line basis over the lease term.

Operating leases

Where, substantially, all the risks and rewards of ownership of the asset do not transfer from the lessor to the company, the lease is treated as an operating lease. Rentals payable under operating leases are charged to the Income Statement on a straight-line basis over the period of the lease.

Where the company is a lessor, rental income from operating leases is credited to the Income Statement on a straight-line basis over the lease term.

	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 obligation. Contributions to defined contribution plans are expensed in the period to which they relate. Amounts not paid are shown in other creditors in the Statement of Financial Position. The assets of the plan are held separately from the company in independently administered funds.

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 obligation. 

Contributions to defined contribution plans are expensed in the period to which they relate.  Amounts not paid are shown in other creditors in the Statement of Financial Position.  The assets of the plan are held separately from the company in independently administered funds.

	Current taxation
	Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

	Deferred tax
	Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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 reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

Deferred tax

Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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 reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

	Intangible assets
	Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. The assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired. Amortisation is included in 'administrative expenses' in the profit and loss account.

	Amortisation
	Amortisation is recognised so as to write off the cost or valuation of patents less their residual values over their useful lives on a 25% reducing balance basis.

	Tangible fixed assets and depreciation
	Tangible fixed assets are stated at cost or valuation less depreciation. The assets residual values, useful lives and depreciation methods are reviewed and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement Depreciation is provided on all tangible fixed assets as follows:

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost or valuation less depreciation. 

The assets residual values, useful lives and depreciation methods are reviewed and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement

Depreciation is provided on all tangible fixed assets as follows:


	Reducing balance (%)	Straight line (years)
Land and buildings	25	-
Fixtures and fittings	-	6.67
Office Equipment	-	3

	Investments
	Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value where the difference between cost and fair value is material. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the Income Statement.

Investments

Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value where the difference between cost and fair value is material. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the Income Statement.

	Stocks and work in progress
	Stocks are valued at the lower of cost and estimated selling price (less any associated costs to enable such sales to complete). At each date of Statement of Financial Position, 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 the Income Statement. Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

Stocks and work in progress

Stocks are valued at the lower of cost and estimated selling price (less any associated costs to enable such sales to complete). 

At each date of Statement of Financial Position, 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 the Income Statement.

Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

	Trade and other debtors
	Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

Trade and other debtors

Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

	Trade and other creditors
	Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

	Financial instruments
	The company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

	Government grants or assistance
	Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the Income Statement at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. Grants of a revenue nature are recognised in the Income Statement in the same period as the related expenditure.

Government grants or assistance

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the Income Statement at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. 

Grants of a revenue nature are recognised in the Income Statement in the same period as the related expenditure.

2.	Average number of employees


		2025		2024
	Average number of employees during the year	57		58

3.	Intangible assets

	Other	Total
	£	£
Cost or valuation
At 01 November 24	8,000	8,000
At 31 October 25	8,000	8,000
Amortisation and impairment
At 01 November 24	8,000	8,000
At 31 October 25	8,000	8,000
Net book value
At 31 October 25	-	-
At 31 October 24	-	-

4.	Tangible fixed assets

	Land & buildings	Fixtures & fittings	Office Equipment	Total
	£	£	£	£
Cost or valuation
At 01 November 24	-	131,675	132,627	264,302
Additions	68,268	5,577	6,277	80,122
Disposals	-	(27,576)	(57,357)	(84,933)
At 31 October 25	68,268	109,676	81,547	259,491
Depreciation and impairment
At 01 November 24	-	80,805	110,737	191,542
Charge for year	1,926	12,676	13,312	27,914
On disposals	-	(27,442)	(57,358)	(84,800)
At 31 October 25	1,926	66,039	66,691	134,656
Net book value
At 31 October 25	66,342	43,637	14,856	124,835
At 31 October 24	-	50,870	21,890	72,760

5.	Fixed asset investments

	Investments in groups¹	Other investments²	Total
	£	£	£
Cost or valuation
At 01 November 24	1,000	500	1,500
Additions	334	-	334
At 31 October 25	1,334	500	1,834
Net book value
At 31 October 25	1,334	500	1,834
At 31 October 24	1,000	500	1,500

	Notes
	¹Investments in group undertakings and participating interests ²Other investments other than loans

6.	Stocks

	2025	2024
	£	£
Work in progress	90,386	180,160
Total	90,386	180,160

7.	Debtors: amounts due within one year

	2025	2024
	£	£
Trade debtors / trade receivables	639,182	457,140
Other debtors	1,274	2,701
Prepayments and accrued income	104,963	94,236
Total	745,419	554,077

8.	Creditors: amounts due within one year

	2025	2024
	£	£
Trade creditors / trade payables	113,385	93,672
Taxation and social security	345,819	182,080
Other creditors	30,403	27,994
Accrued liabilities and deferred income	210,399	263,106
Total	700,006	566,852

9.	Provisions for liabilities
	Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate of the settlement can be made. The provision for deferred tax is made up of £30,455 in respect of accelerated capital allowances.

	2025	2024
	£	£
Net deferred tax liability (asset)	30,456	17,339
Total	30,456	17,339

10.	Operating lease commitments
	At 31 October 2025 the company had future minimum lease payments under non-cancellable operating leases of £106,388 (2024 - £176,298).

11.	Parent-subsidiary relationships
	The company's parent company holds 56.52% of the company's shares. The company's parent company is wholly owned by REACT Ventures Limited. Mr P Redfern (director of React Engineering Limited) is the only director and shareholder of REACT Ventures Limited. In addition, REACT Ventures Limited holds 13.59% of the shares in React Engineering Limited. The company's immediate parent is React Engineering (Holdings) Limited, incorporated in the UK. The ultimate parent is REACT Ventures Limited, incorporated in the UK. The ultimate controlling party is REACT Ventures Limited. As part of a small group, this company is exempt from producing group accounts. These accounts are for this company alone.

11.

Parent-subsidiary relationships

The company's parent company holds 56.52% of the company's shares.  The company's parent company is wholly owned by REACT Ventures Limited.  Mr P Redfern (director of React Engineering Limited) is the only director and shareholder of REACT Ventures Limited.  In addition, REACT Ventures Limited holds 13.59% of the shares in React Engineering Limited.

The company's immediate parent is React Engineering (Holdings) Limited, incorporated in the UK.

The ultimate parent is REACT Ventures Limited, incorporated in the UK.

The ultimate controlling party is REACT Ventures Limited.

As part of a small group, this company is exempt from producing group accounts. These accounts are for this company alone.

	Notes	2025		2024
		£	£	£	£
Fixed assets
Tangible assets	4		124,835		72,760
Investments	5		1,834		1,500
			126,669		74,260
Current assets
Stocks	6	90,386		180,160
Debtors	7	745,419		554,077
Cash at bank and on hand		503,626		291,033
		1,339,431		1,025,270
Creditors amounts falling due within one year	8	(700,006)		(566,852)
Net current assets (liabilities)			639,425		458,418
Total assets less current liabilities			766,094		532,678
Provisions for liabilities	9		(30,456)		(17,339)
Net assets			735,638		515,339
Capital and reserves
Called up share capital			552		552
Other reserves			48		48
Profit and loss account			735,038		514,739
Shareholders' funds			735,638		515,339