REGISTERED NUMBER: SC291538 (Scotland)

Audited Financial Statements for the Year Ended 31 October 2025

for

Driveline Emissions Technologies Limited

Page

Balance Sheet

1

Notes to the Financial Statements

2

FIXED ASSETS

Tangible assets

4

200,836

272,637

CURRENT ASSETS

Stocks

536,602

679,606

Debtors

5

360,320

310,573

Cash at bank

232,886

180,209

1,129,808

1,170,388

CREDITORS

Amounts falling due within one year

6

(3,392,894

)

(3,444,212

)

NET CURRENT LIABILITIES

(2,263,086

)

(2,273,824

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(2,062,250

)

(2,001,187

)

PROVISIONS FOR LIABILITIES

(22,677

)

(33,757

)

NET LIABILITIES

(2,084,927

)

(2,034,944

)

CAPITAL AND RESERVES

Called up share capital

1

1

Retained earnings

(2,084,928

)

(2,034,945

)

SHAREHOLDERS' FUNDS

(2,084,927

)

(2,034,944

)

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 22 July 2026 and were signed on its behalf by:

Mr S McLean - Director

1.	STATUTORY INFORMATION

Driveline Emissions Technologies Limited is a private company, limited by shares, domiciled in Scotland, registration number SC291538. The registered office is 4 Hope Street, Edinburgh, EH2 4DB.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with group companies.

Significant judgements and estimates

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

1. Useful lives of depreciable assets (Property, Plant and Equipment)

Management reviews the useful lives and residual values of depreciable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technological obsolescence and changes in usage, which could impact future depreciation charges.

2. Impairment of trade receivables

The company estimates the provision for expected credit losses (or impairment) of trade receivables. This requires assumptions regarding the likelihood of collection and the credit risk profile of customers based on past experience and forward-looking economic factors.

3. Inventory valuation and provisions

Management reviews the net realisable value (NRV) of inventory to assess potential impairment. Estimates are applied when determining the selling price less costs to sell, and judgements are required regarding obsolescence, physical damage, and shifting consumer demand.

Turnover

Turnover represents net invoiced sales of goods and services in respect of driveline emission treatment devices, cleaning and refurbishment, excluding value added tax. Sales are recognised at the point at which the goods are delivered or the service is complete.

Tangible fixed assets and depreciation

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery etc

-

33% on cost, 25% on reducing balance and 20% on cost

Tangible fixed assets are stated at cost less depreciation. Cost represent purchase price together with any incidental costs of acquisition.

The directors have considered the residual value of all tangible fixed assets to be immaterial and therefore all tangible fixed assets are depreciated to nil value.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is represented by purchase price.

Financial instruments

Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument.

Basic financial assets (including trade and other debtors, cash and bank balances) and basic financial liabilities (including trade and other creditors) are initially measured at the transaction price. They are subsequently measured at amortized cost using the effective interest method, less any provision for impairment.

At the end of each reporting period, the company assesses whether there is objective evidence of impairment of any financial asset. If there is, an impairment loss is recognised in the income statement.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity. Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled, or expires.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Provisions

Provisions are recognised when the company has a legal or constructive obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated. Provisions are not recognised for future operating losses. Provisions are discounted where the time value of money is material.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Going concern

The Board of Directors are aware of the net liability position of the company at the year-end while the company is in its formative stages. It is the Board's view that there will be adequate funding in place to cover all known liabilities as they fall due for at least 12 months from the balance sheet date, with the confirmed continued support of the parent company, Caledonian Heritable Limited, to whom the majority of debt is due. Therefore the directors have prepared these financial statements on a going concern basis.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 13 (2024 - 14 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 November 2024

820,393

Additions

91,982

Disposals

(35,000

)

At 31 October 2025

877,375

DEPRECIATION

At 1 November 2024

547,756

Charge for year

152,583

Eliminated on disposal

(23,800

)

At 31 October 2025

676,539

NET BOOK VALUE

At 31 October 2025

200,836

At 31 October 2024

272,637

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.10.25

31.10.24

£

£

Trade debtors

241,133

173,303

Amounts owed by group undertakings

36,603

36,603

Other debtors

82,584

100,667

360,320

310,573

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.10.25

31.10.24

£

£

Trade creditors

73,635

51,623

Amounts owed to group undertakings

3,086,646

3,083,908

Taxation and social security

50,579

44,731

Other creditors

182,034

263,950

3,392,894

3,444,212

7.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

31.10.25

31.10.24

£

£

Within one year

42,500

76,250

Between one and five years

99,167

141,667

141,667

217,917

8.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Greig Brown (Senior Statutory Auditor)

for and on behalf of Drummond Laurie CA

9.	ULTIMATE PARENT COMPANY

The company's ultimate parent company is Caledonian Heritable Limited, a company registered in Scotland. The financial statements of Caledonian Heritable Limited can be obtained from Companies House and its registered office is 46 Charlotte Square, Edinburgh, Scotland, EH2 4HQ.