REGISTERED NUMBER: 03832351 (England and Wales)

Strategic Report, Report of the Director and

Financial Statements for the Year Ended 31 October 2025

for

Wolds Engineering Services Limited

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Statement of Income and Retained Earnings

8

Statement of Financial Position

9

Statement of Cash Flows

10

Notes to the Statement of Cash Flows

11

Notes to the Financial Statements

12

DIRECTOR:

J Oxley

SECRETARY:

K Oxley

REGISTERED OFFICE:

The Wolds Building

Unit 1, Hampden Road

Pocklington Industrial Estate

Pocklington

East Yorkshire

YO42 1NR

REGISTERED NUMBER:

03832351 (England and Wales)

AUDITORS:

HLAS Audit Limited

Suite 1, The Riverside Building

Livingstone Road

Hessle

HULL

HU13 0DZ

The director presents his strategic report for the year ended 31 October 2025.

REVIEW OF BUSINESS

The financial statements indicate that the company has shown a small decrease in turnover this year to £13,303,759 from £13,980,481. This shows the continuing pressures throughout the wider economy. However, the margin is better then the previous year with an increase in the gross profit from £3,850,607 to £3,879,219 with more goods being purchased through the IADA at a better margin. This was as expected from the previous year.

Key Performance Indicators

The company uses a range of financial indicators to monitor performance, these being as follows:

- Turnover : £13,303,759 (2024 : £13,980,481)

- Gross Profit : £3,879,219 (2024 : £3,850,607)

- Gross Margin : 29.2% (2024 : 27.5%)

- Net Profit : £676,521 (2024 : £825,354)

- Net Margin : 5.1% (2024 : 5.9%)

The company seeks to provide a competitive salary and good working conditions that comply with legislation. The company is mindful of doing business in an ethical way and seeks to apply the highest standards to all employee's actions. The direct impact on the environment is limited to travel and energy usage which are kept to a minimum and not material to the financial statements.

The company is a valued supplier of engineering supplies and tools to various markets and businesses, whether large or small and will continue to provide best value and service to these markets.

PRINCIPAL RISKS AND UNCERTAINTIES

Details of the principal risks and uncertainties facing the business are as follows:

Regulatory Risk

The director continually assess the impact of new actual or proposed legislation which may impact on the viability of the products sold. As the company continues to sell a multitude of products, any changes would have minimal affect.

Exchange Rate Risk

A small proportion of the company's purchases are made from overseas. Any variation in the exchange rate can affect the cost price of the company's products and the margin on sale. The director continues to assess this however and change in the exchange rate would have a minimal affect on the profitability of the business.

Economic Conditions

As with most businesses operating in what are still uncertain economic conditions, there may be pressure on business activities, but the company has sought to minimise this risk by building strong relationships with principle customers and suppliers alike and maintaining sufficient levels of liquid funds.

ON BEHALF OF THE BOARD:

J Oxley - Director

28 July 2026

The director presents his report with the financial statements of the company for the year ended 31 October 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the supply of bearings, power transmission products, tools and engineering consumables.

DIVIDENDS

An interim dividend of £8121.025 per share was paid on 31 October 2025. The director recommends that no final dividend be paid.

The total distribution of dividends for the year ended 31 October 2025 will be £ 342,841 .

DIRECTOR

J Oxley held office during the whole of the period from 1 November 2024 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, HLAS Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J Oxley - Director

28 July 2026

Opinion

We have audited the financial statements of Wolds Engineering Services Limited (the 'company') for the year ended 31 October 2025 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 October 2025 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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

In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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 Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

We have nothing to report in respect of the following matters where 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 director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud was as follows:

- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- We identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector in which the company operates;

- We focused on specific laws and regulations which we considered may have a direct impact material effect on the financial statements, or the operations of the company which included the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;

- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- Identified laws and regulations were communicated within the audit team and the team remained alert to instances of non-compliance throughout the audit.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to involve the completeness and timing of income recognition and the override of controls by management.

To address the risk of fraud in relation to revenue recognition, we:

- Performed detailed substantive testing to address completeness and accuracy of sales;

- Assessed the appropriateness and application of the accounting policy concerning income recognition; and

- Performed detailed cut-off testing either side of the balance sheet date.

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

- Performed analytical procedures to identify any unusual or unexpected relationships;

- Tested journal entries to identify unusual transactions;

- Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;

- Investigated the rationale behind significant or unusual transactions.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Mrs Laura Drew (Senior Statutory Auditor)

for and on behalf of HLAS Audit Limited

Suite 1, The Riverside Building

Livingstone Road

Hessle

HULL

HU13 0DZ

28 July 2026

TURNOVER

13,303,759

13,980,481

Cost of sales

9,424,540

10,129,874

GROSS PROFIT

3,879,219

3,850,607

Administrative expenses

3,248,735

3,052,443

630,484

798,164

Other operating income

31,665

14,815

OPERATING PROFIT

4

662,149

812,979

Interest receivable and similar income

14,372

11,375

PROFIT BEFORE TAXATION

676,521

824,354

Tax on profit

5

44,985

212,015

PROFIT FOR THE FINANCIAL YEAR

631,536

612,339

Retained earnings at beginning of year

7,487,445

6,974,738

Dividends

6

(342,841

)

(99,632

)

RETAINED EARNINGS AT END OF YEAR

7,776,140

7,487,445

FIXED ASSETS

Tangible assets

8

2,466,947

2,365,858

Investments

9

3,000

3,000

2,469,947

2,368,858

CURRENT ASSETS

Stocks

10

3,571,884

3,656,069

Debtors

11

3,775,348

3,495,236

Cash at bank and in hand

509,104

373,227

7,856,336

7,524,532

CREDITORS

Amounts falling due within one year

12

2,382,866

2,169,064

NET CURRENT ASSETS

5,473,470

5,355,468

TOTAL ASSETS LESS CURRENT LIABILITIES

7,943,417

7,724,326

CREDITORS

Amounts falling due after more than one year

13

-

(98,543

)

PROVISIONS FOR LIABILITIES

17

(167,177

)

(138,238

)

NET ASSETS

7,776,240

7,487,545

CAPITAL AND RESERVES

Called up share capital

18

40

40

Capital redemption reserve

19

60

60

Retained earnings

19

7,776,140

7,487,445

SHAREHOLDERS' FUNDS

7,776,240

7,487,545

The financial statements were approved by the director and authorised for issue on 28 July 2026 and were signed by:

J Oxley - Director

Cash flows from operating activities

Cash generated from operations

1

1,040,738

1,055,845

Tax paid

(97,155

)

(376,747

)

Net cash from operating activities

943,583

679,098

Cash flows from investing activities

Purchase of tangible fixed assets

(422,535

)

(956,183

)

Sale of tangible fixed assets

71,637

12,250

Interest received

14,372

11,375

Net cash from investing activities

(336,526

)

(932,558

)

Cash flows from financing activities

Loan repayments in year

(128,339

)

(30,519

)

Equity dividends paid

(342,841

)

(99,632

)

Net cash from financing activities

(471,180

)

(130,151

)

Increase/(decrease) in cash and cash equivalents

135,877

(383,611

)

Cash and cash equivalents at beginning of year

2

373,227

756,838

Cash and cash equivalents at end of year

2

509,104

373,227

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit before taxation

676,521

824,354

Depreciation charges

243,563

200,111

Loss on disposal of fixed assets

6,041

5,042

Finance income

(14,372

)

(11,375

)

911,753

1,018,132

Decrease in stocks

84,185

60,146

Increase in trade and other debtors

(280,112

)

(99,406

)

Increase in trade and other creditors

324,912

76,973

Cash generated from operations

1,040,738

1,055,845

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 October 2025

31.10.25

1.11.24

£

£

Cash and cash equivalents

509,104

373,227

Year ended 31 October 2024

31.10.24

1.11.23

£

£

Cash and cash equivalents

373,227

756,838

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.11.24

Cash flow

At 31.10.25

£

£

£

Net cash

Cash at bank and in hand

373,227

135,877

509,104

373,227

135,877

509,104

Debt

Debts falling due within 1 year

(30,001

)

30,001

-

Debts falling due after 1 year

(98,543

)

98,543

-

(128,544

)

128,544

-

Total

244,683

264,421

509,104

1.	STATUTORY INFORMATION

Wolds Engineering Services Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Monetary amounts in these financial statements are rounded to the nearest £1. The financial statements are presented in pound sterling which is also the functional currency of the company.

Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based on the Directors' best knowledge of the amount, events or actions, actual results ultimately differ from these estimates. The Directors do not consider there to be any material estimates and judgements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

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

Freehold property

-

2% on cost

Improvements to property

-

10% on cost

Fixtures and fittings

-

15% on reducing balance - monthly basis

Motor vehicles

-

25% on reducing balance - monthly basis

Computer equipment

-

40% on reducing balance - monthly basis

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowances for obsolete and slow moving items, obsolete and slow moving stocks being classified as items with no activity since for the past 6 years.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Trade and other creditors are recognised a initial transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less an impairment loss in the case of trade debtors.

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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,859,228

1,704,495

Social security costs

208,919

171,184

Other pension costs

44,302

40,244

2,112,449

1,915,923

The average number of employees during the year was as follows:

2025

2024

Management

6

6

Office

16

16

Sales

7

6

Warehousing & Distribution

22

22

51

50

2025

2024

£

£

Director's remuneration

9,096

9,096

4.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Hire of plant and machinery

3,641

15,106

Other operating leases

-

62,242

Depreciation - owned assets

243,768

198,838

Loss on disposal of fixed assets

6,041

5,042

Auditors' remuneration

13,000

8,000

5.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

141,439

192,951

R&D Tax Claim

(125,393

)

-

Overprovision prior year

-

(3,067

)

Total current tax

16,046

189,884

Deferred tax

28,939

22,131

Tax on profit

44,985

212,015

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

676,521

824,354

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

169,130

206,089

Effects of:

Expenses not deductible for tax purposes

5,653

13,179

Capital allowances in excess of depreciation

(34,854

)

(27,577

)

Sale of assets

1,510

1,260

R&D Tax Claim

(125,393

)

-

Deferred tax

28,939

22,131

Under provision - prior year

-

(3,067

)

Total tax charge

44,985

212,015

6.

DIVIDENDS

2025

2024

£

£

Ordinary shares of £1 each

Interim

342,841

99,632

7.	PENSION COMMITMENTS

The company operates a defined contribution pension scheme.

The amount recognised in profit or loss in respect of defined contribution pension schemes during the year was £44,302 (2025: £40,244).

At the balance sheet date, contributions of £Nil (2024: £Nil) were due to the fund and are included in creditors.

8.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

Freehold

to

and

property

property

fittings

£

£

£

COST

At 1 November 2024

1,715,980

242,653

283,548

Additions

-

44,397

9,826

Disposals

-

-

-

At 31 October 2025

1,715,980

287,050

293,374

DEPRECIATION

At 1 November 2024

187,892

98,915

154,065

Charge for year

34,317

23,394

18,546

Eliminated on disposal

-

-

-

At 31 October 2025

222,209

122,309

172,611

NET BOOK VALUE

At 31 October 2025

1,493,771

164,741

120,763

At 31 October 2024

1,528,088

143,738

129,483

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 November 2024

977,869

204,508

3,424,558

Additions

364,530

3,782

422,535

Disposals

(165,760

)

-

(165,760

)

At 31 October 2025

1,176,639

208,290

3,681,333

DEPRECIATION

At 1 November 2024

461,848

155,980

1,058,700

Charge for year

150,297

17,214

243,768

Eliminated on disposal

(88,082

)

-

(88,082

)

At 31 October 2025

524,063

173,194

1,214,386

NET BOOK VALUE

At 31 October 2025

652,576

35,096

2,466,947

At 31 October 2024

516,021

48,528

2,365,858

9.	FIXED ASSET INVESTMENTS

Unlisted

investments

£

COST

At 1 November 2024

and 31 October 2025

3,000

NET BOOK VALUE

At 31 October 2025

3,000

At 31 October 2024

3,000

10.

STOCKS

2025

2024

£

£

Stocks

3,571,884

3,656,069

11.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

3,009,603

2,919,542

Other debtors

606,055

331,669

Prepayments

159,690

244,025

3,775,348

3,495,236