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Registered number:
For the Year Ended
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Electra Commercial Vehicles Ltd
Company Information
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Electra Commercial Vehicles Ltd
Contents
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Electra Commercial Vehicles Ltd
Strategic Report
For the Year Ended 30 September 2025
The directors present the strategic report for the year ended 30 September 2025.
The principal activity of the Company continued to be the electriciation of commercial motor vehicles.
The Company produced 15 vehicles during the year (2024 - 34 vehicles). Performance was significantly impacted by the relocation and commissioning of the new manufacturing facility in Brighouse in 2024. The recruitment and training of new staff, together with extended lead times from customer-selected body builders, resulted in temporary production inefficiencies and delays in vehicle completion. Despite these challenges, the sales team generated a substantial pipeline of prospective customers, which the directors expect to convert into future revenue. The relocation to the new facility provides increased production capacity and positions the business to capitalise on future market growth. Product development continued throughout the year, with particular focus on airside sector applications and the repowering of refuse vehicles. The directors believe these areas represent significant growth opportunities, particularly within the public sector and waste management industries. During the year, the Company adopted a revised accounting policy in respect of development expenditure. Qualifying development costs are now capitalised, reflecting the value of the intellectual property generated through the ongoing expansion of the Company's product range. The change has been applied retrospectively and has resulted in prior year adjustments, details of which are disclosed in the notes to the financial statements. The Company continues to receive strong interest from export markets, and the directors are pursuing opportunities to appoint additional distributors. This is expected to further diversify the customer base and support future growth.
The principal risk facing the Company is uncertainty within the commercial electric vehicle market, particularly during the transition period between early adopters of electric vehicle technology and wider market adoption, which is expected to accelerate as environmental regulations and government initiatives continue to develop.
The Company seeks to mitigate this risk by broadening its product range to appeal to a wider customer base and by developing relationships with a network of distributors across Europe and other international markets. Electra continues to differentiate itself through the quality of its products and its ability to provide specialist and bespoke solutions that are not typically offered by larger original equipment manufacturers ("OEMs"). The Company also relies on a global supply chain for specialist components and vehicle chassis. Disruptions to supply chains, inflationary pressures and shortages of key components could adversely affect production schedules, costs and profitability. To mitigate these risks, the Company maintains close relationships with key suppliers, regularly monitors lead times and procurement risks, and incorporates current supply chain information into its production planning processes.
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Electra Commercial Vehicles Ltd
Strategic Report (continued)
For the Year Ended 30 September 2025
The directors consider the principal KPIs used to monitor the performance of the Company to be revenue and grant income.
Revenue for the year decreased to £4.4m (2024: £9.7m), primarily as a result of the disruption caused by the relocation and commissioning of the new manufacturing facility, together with production delays arising from recruitment, training and supply chain challenges. The Company continued to participate in a number of grant-funded development projects during the year, resulting in other operating income of £2.0m (2024: £0.6m).
Announcements made by the UK Government in January and March 2026 regarding approximately £1 billion of support for commercial fleet electrification, primarily through the extension and enhancement of the Zero Emission Truck Grant scheme, provide the directors with increased confidence in the long-term outlook for the sector. The directors believe these initiatives will help accelerate customer purchasing decisions that had previously been deferred pending greater certainty around government support and policy direction.
This report was approved by the board and signed on its behalf.
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Electra Commercial Vehicles Ltd
Directors' Report
For the Year Ended 30 September 2025
The directors present their report and the financial statements for the year ended 30 September 2025.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
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 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.
The loss for the year, after taxation, amounted to £2,338,237 (2024 - profit £847,792).
No dividends were paid during the year (2024: £Nil), and the directors do not recommend the payment of a final dividend.
The directors who served during the year were:
Electra continues to develop class-leading solutions to support decarbonisation of multiple sectors in the Heavy Commercial Vehicle industry. Additional products under development will debut at industry shows during 2026.
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Electra Commercial Vehicles Ltd
Directors' Report (continued)
For the Year Ended 30 September 2025
The auditors, Hurst Accountants Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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Electra Commercial Vehicles Ltd
Independent Auditors' Report to the Members of Electra Commercial Vehicles Ltd
We have audited the financial statements of Electra Commercial Vehicles Ltd (the 'Company') for the year ended 30 September 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, 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).
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 qualified opinion.
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.
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Electra Commercial Vehicles Ltd
Independent Auditors' Report to the Members of Electra Commercial Vehicles Ltd (continued)
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 Report. 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 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.
Because of the significance of the matters described in the Basis for qualified opinion section of our report, we have concluded that where the other information refers to opening stock, opening work in progress, or related balances such as cost of sales, it may be materially misstated.
We have nothing to report in this regard.
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.
Except for the matter described in the Basis for qualified opinion section of our report, 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.
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Electra Commercial Vehicles Ltd
Independent Auditors' Report to the Members of Electra Commercial Vehicles Ltd (continued)
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:
Identifying and assessing potential risks related to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
∙The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
∙The outcome of enquiries of management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud.
∙Supporting documentation relating to the Company's policies and procedures for:
°Identifying, evaluating, and complying with laws and regulations
°Detecting and responding to the risks of fraud
∙The internal controls established to mitigate risks related to fraud or non compliance with laws and regulations.
∙The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
∙The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements, and Anti bribery and Corruption.
Audit response to risks identified
Our procedures to respond to the risks identified included the following:
∙Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
∙Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
∙Evaluation of management’s controls designed to prevent and detect irregularities.
∙Enquiring of management about any actual and potential litigation and claims.
∙Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.
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Electra Commercial Vehicles Ltd
Independent Auditors' Report to the Members of Electra Commercial Vehicles Ltd (continued)
We have also considered the risk of fraud through management override of controls by:
∙Testing the appropriateness of journal entries and other adjustments. We have used data analytics software to identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error.
∙Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
∙Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members
and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws
and regulations are from the events and transactions reflected in the financial statements, the less likely we would become
aware of them. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting
one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional
misrepresentations, or through 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.
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 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
3 Stockport Exchange
Cheshire
SK1 3GG
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Electra Commercial Vehicles Ltd
Statement of Comprehensive Income
For the Year Ended 30 September 2025
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Electra Commercial Vehicles Ltd
Registered number: 11059491
Statement of Financial Position
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 32 form part of these financial statements.
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Electra Commercial Vehicles Ltd
Statement of Changes in Equity
For the Year Ended 30 September 2025
Statement of Changes in Equity
For the Year Ended 30 September 2024
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Electra Commercial Vehicles Ltd
Statement of Cash Flows
For the Year Ended 30 September 2025
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Electra Commercial Vehicles Ltd
Statement of Cash Flows (continued)
For the Year Ended 30 September 2025
Analysis of Net Debt
For the Year Ended 30 September 2025
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Electra Commercial Vehicles Ltd
Notes to the Financial Statements
For the Year Ended 30 September 2025
Electra Commercial Vehicles Ltd is a private company limited by share capital incorporated in England, registered number 11059491. The address of the registered office and principal place of business is Central Warehouse, Armytage Road, Brighouse, HD6 1QF.
The principal activity of the company is the design, integration and manufacture of electric and low-emission commercial vehicles.
2.Accounting policies
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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The company has net current liabilities of £2,638,989 (2024: £2,810,102 (as restated)). However, net current liabilities include £7,839,463 (2024: £11,396,542) owed to a director of the company. The director has confirmed that he will not require settlement until such time as the business can make repayments without adversely impacting its solvency.
The director has confirmed his continued financial support of the company for the foreseeable future. In addition, although the company made a loss during the current year, forecasts and budgets indicate a return to profit for the ensuing year and beyond. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Functional and presentation currency
Transactions and balances
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Electra Commercial Vehicles Ltd
Notes to the Financial Statements
For the Year Ended 30 September 2025
2.Accounting policies (continued)
provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. Revenue from electrification is recognised when the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity, the costs incurred or to be incurred in respect of the transaction can be measured reliably and when the significant risks and rewards have been passed to the customer, which is usually at the point the vehicle is factory complete and ready to either go to the next stage of build or to be Individual Vehicle Approved (IVA’d) and presented to the customer. The company's obligation is to electrify the vehicle and therefore once this process is complete the obligation has been fulfilled and the company recognises the associated revenue and costs of the chassis. The revenue and cost of the body is recognised when the work has been completed. If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only. The government grant income received in the current and prior year relates to the government's innovating product scheme, which is predetermined and agreed prior to commencement of the specific projects along with amounts receivable under the research and development expenditure credit scheme for spending on qualifying activities. A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
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Electra Commercial Vehicles Ltd
Notes to the Financial Statements
For the Year Ended 30 September 2025
2.Accounting policies (continued)
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Electra Commercial Vehicles Ltd
Notes to the Financial Statements
For the Year Ended 30 September 2025
2.Accounting policies (continued)
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Amortisation is provided on the following bases:
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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 disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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Electra Commercial Vehicles Ltd
Notes to the Financial Statements
For the Year Ended 30 September 2025
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Provisions for the expected cost of warranty obligations under local sale of goods legislation are recognised at the date of sale of the relevant products, and are based on the directors' best estimate of the expenditure required to settle the company's obligations.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
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.
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Electra Commercial Vehicles Ltd
Notes to the Financial Statements
For the Year Ended 30 September 2025
2.Accounting policies (continued)
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 instruments
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.
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Electra Commercial Vehicles Ltd
Notes to the Financial Statements
For the Year Ended 30 September 2025
Capitalisation of development costs The Company capitalises development expenditure where the directors consider that the recognition criteria for internally generated intangible assets under FRS 102 have been met. This requires judgement in determining whether projects are technically feasible, commercially viable and capable of generating probable future economic benefits. Management also exercises judgement in determining which directly attributable employee and overhead costs should be included within the cost of the asset. At 30 September 2025, the carrying value of capitalised development costs included within intangible assets amounted to £3,495,490 (2024: £2,064,259 (as restated)). Impairment and amortisation of intangible assets The carrying value of development costs and software is reviewed for indicators of impairment at each reporting date. Where indicators of impairment are identified, management estimates the recoverable amount of the relevant assets. The assessment of recoverability requires significant estimates and assumptions regarding future revenues, profitability, expected future cash flows, technological developments and the expected useful economic lives of the related assets. Development costs are amortised over their estimated useful economic lives and the amortisation charge recognised during the year in respect of development costs amounted to £260,284 (2024: £135,097 (as restated)). Changes in assumptions relating to future commercial performance, useful economic lives or technological obsolescence could result in material adjustments to the carrying value of intangible assets in future periods. Valuation of stocks Inventories are stated at the lower of cost and net realisable value. The directors review inventory balances at each reporting date to identify slow-moving, obsolete or damaged items, and to assess whether the carrying value of inventory remains recoverable through future sales. This assessment requires judgement in estimating expected selling prices, future demand, product condition, expected costs to complete and costs necessary to make the sale. Where the directors consider that the net realisable value of inventory is below cost, an impairment provision is recognised. At 30 September 2025, inventories had a carrying value of £6,999,934 (2024: £7,897,200 (as restated)), including work in progress of £1,598,850 (2024: £1,490,889 (as restated)). No impairment provision was recognised at the year end (2024: £nil). Changes in market demand, selling prices, product condition or expected completion costs could result in material adjustments to the carrying value of inventories in future periods.
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Electra Commercial Vehicles Ltd
Notes to the Financial Statements
For the Year Ended 30 September 2025
3.Judgments in applying accounting policies (continued)
The Company recognises a provision for warranty obligations relating to faulty returned vehicles and products. The provision requires management to estimate the likely level of future claims based on historical claims experience, known product issues and the expected future warranty exposure associated with sales made before the reporting date. At 30 September 2025, the carrying amount of the warranty provision was £130,377 (2024: £112,516). Due to the inherent uncertainty in estimating the timing and value of future claims, actual settlement costs may differ from the amounts provided. Changes in assumptions relating to claims frequency, repair costs or product reliability could result in material adjustments to the provision in future periods.
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Electra Commercial Vehicles Ltd
Notes to the Financial Statements
For the Year Ended 30 September 2025
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Electra Commercial Vehicles Ltd
Notes to the Financial Statements
For the Year Ended 30 September 2025
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Electra Commercial Vehicles Ltd
Notes to the Financial Statements
For the Year Ended 30 September 2025
11.Taxation (continued)
The Company has trading losses available to offset against future corporation tax liabilities, subject to HMRC approval, of approximately £2.4 million (2024: £0.6 million). No deferred tax asset has been recognised in respect of these losses as the recognition criteria for deferred tax assets were not met at the reporting date.
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Electra Commercial Vehicles Ltd
Notes to the Financial Statements
For the Year Ended 30 September 2025
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Electra Commercial Vehicles Ltd
Notes to the Financial Statements
For the Year Ended 30 September 2025
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Electra Commercial Vehicles Ltd
Notes to the Financial Statements
For the Year Ended 30 September 2025
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Electra Commercial Vehicles Ltd
Notes to the Financial Statements
For the Year Ended 30 September 2025
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Electra Commercial Vehicles Ltd
Notes to the Financial Statements
For the Year Ended 30 September 2025
During the year the Company issued 4,000,000 preference shares of £1 each at par to Mr M Sadique. The consideration of £4,000,000 was satisfied by way of set-off against the outstanding director's loan account.
The preference shares carry no voting rights. The preference shares are entitled to dividends and to participate in any distribution on a winding up of the Company in respect of the amount paid up or credited as paid up on such shares, including the full amount of any premium at which such shares were issued. The preference shares are not redeemable.
Profit and loss account
The profit and loss account contains all relevant current and prior year profit and losses, net of dividends paid.
The Company operates a defined contributions 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 £53,057 (2024 - £46,057). Contributions totalling £8,952 (2024 - £9,340) were payable to the fund at the reporting date and are included in creditors.
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Electra Commercial Vehicles Ltd
Notes to the Financial Statements
For the Year Ended 30 September 2025
During the year, the directors identified certain items requiring adjustment to previously reported comparative figures. In addition, the directors changed the accounting policy applied to development expenditure. Accordingly, the comparative information for the year ended 30 September 2024 has been restated.
The effects of these adjustments on the comparative financial statements are set out below. Correction of grant income recognition In prior periods, grant income was recognised on a cash receipts basis. During the year, the directors determined that grant income should be recognised on an accruals basis in line with the period to which the related entitlement and performance conditions relate. As a result, other operating income and accrued income at 30 September 2024 increased by £411,143. Correction to the valuation of work in progress In the prior year, certain directly attributable labour and production overhead costs were not included within the valuation of work in progress. The comparative figures have therefore been restated to include these costs within work in progress in accordance with Section 13 of FRS 102. The adjustment increased work in progress at 30 September 2024 by £177,742, reduced cost of sales by £106,480 and reduced administrative expenses by £71,262. Change in accounting policy - capitalisation of development costs During the year, the directors reviewed the accounting policy applied to development expenditure. Historically development costs were expensed to the profit and loss account as incurred. Following a reassessment of the nature of the projects undertaken and the continuing economic benefits expected to arise from them, the directors concluded that certain development expenditure meets the recognition criteria for internally generated intangible assets under Section 18 of FRS 102. The directors believe that capitalising qualifying development expenditure provides more reliable and relevant information to users of the financial statements as it more appropriately reflects the future economic value generated by the Company's development activities and better matches the related costs to the periods expected to benefit from them. Accordingly, the accounting policy has been changed and the comparative figures have been restated as though the policy had always been applied. The effects of the change in accounting policy are as follows:
∙opening intangible fixed assets at 1 October 2023 increased by £774,198, with a corresponding increase in opening retained earnings;
∙development expenditure of £1,106,708 previously recognised within administrative expenses in the comparative year has been capitalised within intangible assets; and
∙an amortisation charge of £79,558 has been recognised in the comparative year in respect of the capitalised development costs.
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Electra Commercial Vehicles Ltd
Notes to the Financial Statements
For the Year Ended 30 September 2025
Prior period restatements and change in accounting policy (continued) Reclassification of RDEC credits During the year, the directors identified that Research and Development Expenditure Credit ("RDEC") income of £246,320 had previously been presented within the tax charge in the comparative period. The comparative figures have been reclassified to present the RDEC credit within other operating income, which the directors consider to be a more appropriate presentation under FRS 102. This reclassification had no impact on profit for the financial year or net assets. Reclassification of borrowings During the year, the directors reviewed the presentation of financing arrangements within creditors falling due within one year. Comparative figures have been reclassified to separately present bank loans and other loans within current liabilities in order to improve the clarity and presentation of the financial statements. This reclassification had no impact on profit for the financial year, net assets or net current assets.
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Electra Commercial Vehicles Ltd
Notes to the Financial Statements
For the Year Ended 30 September 2025
Included within other creditors at the year end is a balance of £7,839,163 (2024: £11,396,542) owed to a director of the Company. During the year the director advanced £504,561 (2024: £3,550,193) to the Company. Amounts of £57,816 (2024: £532,707) were setted during the year. In addition, £4,000,000 of the outstanding balance was converted into preference shares during the year.
The loan is subject to interest at 10% per annum where requested by the director. Also included within other creditors at the year end is a balance of £4,400 (2024: £Nil) owed to another director of the company. During the year the director made payments totalling £4,400 (2024: £Nil) on behalf of the company and there were no advances (2024: £Nil).
The Company is controlled by Mr Muhammad Sadique by virtue of his majority shareholding.
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