|
Registered number: 01479073
MILLS CNC FINANCE LIMITED
DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
|
|
|
|
|
MILLS CNC FINANCE LIMITED
|
COMPANY INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gateley Secretaries Limited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unit 2 & 3 Tachbrook Link
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chartered Accountants & Statutory Auditor
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MILLS CNC FINANCE LIMITED
|
CONTENTS
|
|
|
|
|
|
Independent Auditor's Report
|
|
Statement of Comprehensive Income
|
|
Statement of Financial Position
|
|
Statement of Changes in Equity
|
|
Notes to the Financial Statements
|
|
|
|
|
|
|
MILLS CNC FINANCE LIMITED
|
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present their report and the financial statements for the year ended 31 December 2025.
The principal activity of the company during the year was the sourcing of finance for the purchase of machine tools.
The profit for the year, after taxation, amounted to £86,605 (2024: £93,070).
The directors did not recommend the payment of a dividend (2024: £Nil).
The directors who served during the year, and up to the date of signing this report, were:
Directors' Responsibilities Statement
|
The directors are responsible for preparing 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law, including FRS 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 and profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent; and
∙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 enable them to ensure that the financial statements comply with the Companies Act 2006. They 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.
Qualifying third party indemnity provisions
|
There was no qualifying third party indemnity provision to disclose.
|
|
MILLS CNC FINANCE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The company is expected to continue to operate in its role of sourcing finance for the purchase of machine tools and the associated equipment.
The group has a number of banking facilities with HSBC UK Bank Plc. These secure liquidity and the ability to invest in the future growth of the business.
The directors have prepared detailed cash flow forecasts at the level of Ensco 1772 Limited, of which this company is a part of. These forecasts show that after considering reasonable downside scenarios, the group has sufficient funds to support their activities and meet their liabilities as they fall due based on forecasted trading levels and that the funding is held for a period of at least 12 months from the date of signing these financial statements. As part of the directors' consideration of downside scenarios, they have run reverse stress tests on the cash flow, profit and loss and covenant forecasts that they deem to be implausible.
In preparing these forecasts the directors have taken into consideration the current macro-economic climate. There have been inflationary cost pressures within our supply chain, but we have and will continue to work hard with our suppliers to minimize the impact of these on our customers.
Global tariff uncertainty has limited direct impact on our costs or onward sales but we are aware of the potential adverse impact to our customers and have modelled those uncertainties into our projections.
Local and global interest rates have stabilised in the last year and the expectation is that they will remain stable; however, we have profiled interest rate rise sensitivity into our assumptions.
The directors have received confirmation from the parent, Ensco 1772 Limited, that it is the intention to provide financial support, should it be required, to at least 31 December 2027 to enable Mills CNC Finance Limited to meet its financial liabilities.
On the basis set out above, the directors continue to adopt the going concern basis of preparation for these financial statements.
Financial risk management objectives and policies
|
Financial instrument risk
The company's principal financial instruments comprise an import loan facility, bank loans, preferred shares treated as debt, cash and short term deposits. The purpose of these financial instruments is to raise finance for the group's operations. The company has various other financial instruments such as trade debtors and trade creditors, which arise directly from its operations.
The main risks arising from the company's financial instruments are interest rate risk, liquidity risk, foreign currency risk, and credit risk. The board reviews and agrees policies for managing each of these risks and they are summarised below.
Interest rate risk
The company finances its operations through a mixture of shareholders' equity and borrowings. The company's exposure to interest rate fluctuations on its borrowings is reduced by the periodic use of interest rate swaps and caps. Cash reserves are placed on deposit and earn interest which partially hedges the exposure for further interest rate rises. Details of the bank loans and preference shares treated as debt are given within the notes to the financial statements.
|
|
MILLS CNC FINANCE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Financial risk management objectives and policies (continued)
Liquidity risk
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. The company holds banking facilities with HSBC UK Bank Plc which secures its liquidity and ability to invest in the future growth of the business. These facilities were renewed in October 2025. Letters of credit, import loans and trade credit facilities are used to finance the purchase of CNC machines.
On 29th January 2026 the group was able to secure additional funding from HSBC UK Bank Plc which along with its own cash reserves enabled it to fully settle the Loan Notes B which were a liability of the ultimate holding company Ensco 1772 Limited.
Disclosure of information to auditor
|
The directors confirm that:
∙so far as each director is aware, there is no relevant audit information of which the company's auditor is unaware, and
∙the directors have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
The auditor, Grant Thornton UK LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
|
|
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF
MILLS CNC FINANCE LIMITED
We have audited the financial statements of Mills CNC Finance Limited (the 'company') for the year ended 31 December 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and notes to the financial statements, including a summary of significant accounting policies. The 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 December 2025 and of its profit for the year then ended;
∙the financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
∙the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
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 'Auditor's 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 UK, including the FRC'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
|
We are responsible for concluding on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the company to cease to continue as a going concern.
In our evaluation of the directors' conclusions, we considered the inherent risks associated with the company's business model including effects arising from macro-economic uncertainties such as the cost of living crisis and the US conflict with Iran, we assessed and challenged the reasonableness of estimates made by the directors and the related disclosures and analysed how those risks might affect the company's financial resources or ability to continue operations over the going concern period.
|
|
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF
MILLS CNC FINANCE LIMITED (CONTINUED)
Conclusions relating to going concern (continued)
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.
The other information comprises the information included in the Annual Report and financial statement, other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual Report and financial statement. Our 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is 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.
Opinions 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Directors' Report has been prepared in accordance with applicable legal requirements.
|
|
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF
MILLS CNC FINANCE LIMITED (CONTINUED)
Matter on which we are required to report under the Companies Act 2006
|
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 Directors' Report.
Matters on which we are required to report by exception
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; or
Responsibilities of directors
|
As explained more fully in the Directors' Responsibilities Statement set out on page 1, 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.
|
|
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF
MILLS CNC FINANCE LIMITED (CONTINUED)
Auditor's 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 Auditor's 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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
∙The company is subject to many laws and regulations, where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements. We identified the following laws and regulations as the most likely to have a material effect if non-compliance were to occur; financial reporting legislation, employment law, data protection, health and safety legislation, tax legislation, import/export legislation, anti-Money Laundering and the Bribery Act;
∙We obtained an understanding of the legal and regulatory frameworks applicable to the company and the industry in which it operates through our general and commercial and sector experience and discussions with management;
∙We obtained an understanding of how the company is complying with those legal and regulatory frameworks by making enquiries of management. We corroborated our enquiries through our review of board minutes and inspection of legal and regulatory compliance where applicable;
∙We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur and the risk of management override of controls. Audit procedures performed by the engagement team included:
°Identifying and assessing the design and implementation of controls management has in place to prevent and detect fraud;
°Challenging assumptions and judgements made by management in its significant accounting estimates;
°Identifying and testing journal entries.
∙These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it;
|
|
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF
MILLS CNC FINANCE LIMITED (CONTINUED)
Auditor's responsibilities for the audit of the financial statements (continued)
∙The engagement partner’s assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team’s:
°Understanding of, and practical experience with, audit engagements of a similar nature and complexity, through appropriate training and participation;
°Knowledge of the industry in which the group and parent company operates;
∙We communicated relevant laws and regulations and potential fraud risks to all engagement team members and remained alert to any indicators of fraud or non-compliance with laws and regulations throughout the audit.
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 Auditor's 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 2006. Our 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 Auditor's 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.
Mark Langford
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
Birmingham
12 June 2026
|
|
|
|
|
MILLS CNC FINANCE LIMITED
|
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the financial year
|
|
|
|
There were no recognised gains and losses for 2025 or 2024 other than those included in the Statement of Comprehensive Income.
|
There was no other comprehensive income for 2025 (2024: £Nil).
All amounts relate to continuing operations.
|
The notes on pages 12 to 20 form part of these financial statements.
|
|
|
|
|
|
MILLS CNC FINANCE LIMITED
REGISTERED NUMBER:01479073
|
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debtors: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creditors: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets less current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholder's funds
|
|
|
|
|
|
|
|
|
|
|
|
|
The company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 12 to 20 form part of these financial statements.
|
|
|
|
|
MILLS CNC FINANCE LIMITED
|
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
|
|
|
|
Total shareholder's funds
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income for the year
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income for the year
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The notes on pages 12 to 20 form part of these financial statements.
|
|
|
|
|
|
MILLS CNC FINANCE LIMITED
|
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Mills CNC Finance Limited is a private company limited by shares, incorporated in England and Wales. Its registered number 01479073, and its registered office address is Units 2 & 3 Tachbrook Link, Tachbrook Park Drive, Leamington Spa, CV34 6SN.
2.Accounting policies
|
|
|
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 company’s functional and presentation currency is Sterling and all values are rounded to the nearest pound (£) except when otherwise stated.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).
The following principal accounting policies have been applied:
|
|
|
Financial Reporting Standard 102 - reduced disclosure exemptions
|
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A; and
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Ensco 1772 Limited as at 31 December 2025 and these financial statements may be obtained from Companies House.
The group has a number of banking facilities with HSBC UK Bank Plc. These secure liquidity and the ability to invest in the future growth of the business.
The directors have prepared detailed cash flow forecasts at the level of Ensco 1772 Limited, of which this company is a part of. These forecasts show that after considering reasonable downside scenarios, the group has sufficient funds to support their activities and meet their liabilities as they fall due based on forecasted trading levels and that the funding is held for a period of at least 12 months from the date of signing these financial statements. As part of the directors' consideration of downside scenarios, they have run reverse stress tests on the cash flow, profit and loss and covenant forecasts that they deem to be implausible.
|
|
|
|
|
MILLS CNC FINANCE LIMITED
|
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
|
|
|
Going concern (continued)
|
In preparing these forecasts the directors have taken into consideration the current macro-economic climate. There have been inflationary cost pressures within our supply chain, but we have and will continue to work hard with our suppliers to minimize the impact of these on our customers.
Global tariff uncertainty has limited direct impact on our costs or onward sales but we are aware of the potential adverse impact to our customers and have modelled those uncertainties into our projections.
Local and global interest rates have stabilised in the last year and the expectation is that they will remain stable; however, we have profiled interest rate rise sensitivity into our assumptions.
The directors have received confirmation from the parent, Ensco 1772 Limited, that it is the intention to provide financial support, should it be required, to at least 31 December 2027 to enable Mills CNC Finance Limited to meet its financial liabilities.
On the basis set out above, the directors continue to adopt the going concern basis of preparation for these financial statements.
Revenue from a contract to provide services is recognised in the period in which the services are provided when the amount of revenue can be measured reliably and it is probable that the company will receive the consideration due under the contract.
Commission income is recognised when the finance has been agreed between the customer and the third party finance provider.
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 Statement of Financial Position. The assets of the plan are held separately from the company in independently administered funds.
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 reporting date in the countries where the company operates and generates income.
|
|
|
|
|
MILLS CNC FINANCE LIMITED
|
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting 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 reporting date.
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
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 Statement of Financial Position 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 within 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.
Impairment of financial assets (continued)
|
|
|
|
|
MILLS CNC FINANCE LIMITED
|
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
|
|
|
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.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
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.
|
|
|
|
|
MILLS CNC FINANCE LIMITED
|
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
|
|
Judgements in applying accounting policies and key sources of estimation uncertainty
|
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Estimates are based on historical experience and other assumptions that are considered reasonable in the circumstances. The actual amount or values may vary in certain instances from the assumptions and estimates made. Changes will be recorded, with corresponding effect in the financial statements, when, and if, better information is obtained.
Critical judgements and sources of estimation uncertainty that management have made in the process of applying accounting policies disclosed herein and that have a significant effect on the amounts recognised in the financial statements relate to the following:
Estimates
In the process of preparing the financial statements, no significant estimates were applied.
Judgements
In the process of preparing the financial statements, no significant judgements were applied.
Analysis of turnover by country of destination:
|
|
|
|
|
MILLS CNC FINANCE LIMITED
|
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
|
|
|
|
|
The operating profit is stated after charging:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees payable to the company's auditor and its associates for the audit of the company's annual financial statements
|
|
|
|
|
Defined contribution pension cost (note 6)
|
|
|
|
|
Fees payable to the company’s auditor in respect of non-audit services have been included in the disclosures of the consolidated financial statements for the year ended 31 December 2025 of the ultimate parent undertaking, Ensco 1772 Limited, as required by the Companies Act 2006.
|
|
|
|
|
|
Staff costs were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All directors were remunerated by another group entity, Mills CNC Limited. The directors consider it impracticable to allocate their remuneration to this entity based on their services to the company. Details of the total directors’ remuneration can be found in note 9 of the financial statement of Mills CNC Limited for the year ended 31 December 2025.
|
|
|
The average monthly number of employees, including the directors, during the year was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance and administrative staff
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MILLS CNC FINANCE LIMITED
|
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
|
|
|
|
|
|
|
Current tax on profits for the year
|
|
|
|
|
Adjustments in respect of previous periods
|
|
|
|
|
|
|
|
|
|
Taxation on profit on ordinary activities
|
|
|
|
|
Factors affecting tax charge/(credit) for the year
The tax assessed for the year is lower than (2024: lower than) the standard rate of corporation tax in the UK of 25% (2024: 25.00%). The differences are explained below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on ordinary activities before tax
|
|
|
|
|
Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024: 25.00%)
|
|
|
|
|
|
|
|
|
|
Adjustments to tax charge in respect of previous periods
|
|
|
|
|
Total tax charge/(credit) for the year
|
|
|
|
|
Factors that may affect future tax charges
|
Deferred tax balances have been measured at 25%, being the enacted UK corporation tax rate applicable to future periods at the Statement of Financial Position date.
|
|
|
|
|
MILLS CNC FINANCE LIMITED
|
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
|
|
Debtors: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed by group undertakings
|
|
|
|
|
|
|
|
|
|
Prepayments and accrued income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
No impairment loss has been recognised against trade debtors in either year.
Amounts owed by group undertakings are unsecured and are repayable on demand. No interest is charged on these amounts as they are trading balances with no fixed term of repayment.
|
|
|
Creditors: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed to group undertakings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed to group undertakings are unsecured and are repayable on demand. No interest is charged on these amounts as they are trading balances with no fixed term of repayment.
|
|
|
|
Allotted, called up and fully paid
|
|
|
|
|
|
|
|
|
|
|
|
20,000 (2024: 20,000) Ordinary shares of £1 each
|
|
|
There is a single class of ordinary shares. There are no restrictions on dividends and the repayment of capital.
|
|
|
|
|
MILLS CNC FINANCE LIMITED
|
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Profit and loss account
The profit and loss account includes all current and prior period retained profits and losses, net of dividends paid.
The company has entered into an unlimited guarantee in respect of bank loans and overdrafts with other companies in the group. At year end the company has a contingent liability relating to import loans with Mills CNC Limited of £6,952,773 (2024: £6,676,195) and a contingent liability for bank guarantees with the same company of £509,222 (2024: £332,400). There is also a liability with Ensco 1772 Limited related to terms loans; at year end the facility was drawn down by £3,000,000 (2024: £1,937,500).
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £11,830 (2024: £28,778). £Nil contributions (2024: £Nil) were payable to the fund at the Statement of Financial Position date.
|
|
Related party transactions
|
|
|
The company has taken advantage of the exemptions contained within FRS 102 section 33 from the disclosures relating to transactions with other wholly owned group companies.
|
On 29th January 2026 the group was able to secure additional funding from HSBC UK Bank Plc which along with its own cash reserves enabled it to fully settle the Loan Notes B which were a liability of the ultimate holding company Ensco 1772 Limited.
|
|
Immediate and ultimate parent undertaking and controlling party
|
The company is a wholly owned subsidiary of Ensco 1066 Limited. The ultimate parent company and controlling party is Ensco 1772 Limited.
The parent undertaking of the largest and smallest group for which consolidated accounts are prepared is Ensco 1772 Limited. Consolidated accounts are available from Companies House.
|
|
|
