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Registered number:
FOR THE YEAR ENDED 31 OCTOBER 2025
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FLO-MECH HOLDINGS LIMITED
COMPANY INFORMATION
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FLO-MECH HOLDINGS LIMITED
CONTENTS
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FLO-MECH HOLDINGS LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2025
The directors have pleasure in presenting their strategic report for the year ended 31 October 2025.
Principal activities The principal activities of the Group during the year were designing, selling and installing plant used in commercial food processing.
This year has again been a successful year with another profitable year being projected. The approach adopted by the directors of providing excellent customer care, a high level of professional service and support continues to be the basis of our operation. The directors remain confident that this philosophy will continue to contribute to our success in what is an increasingly competitive and changing trading environment. We have already secured several high value contracts for the coming year and expect that 2025/26 will be another strong year.
Other factors have also had an impact on the Group’s accounts, including energy price rises and continued supply chain challenges, though these have eased this year. These events continue to have an influence on the Group’s performance and strategies, with ongoing pressure on import/export costs. Ongoing conflicts and other global trends have highlighted the scale of unforeseen events we can face and has emphasised the prudence of our approach to funding the business. The Group has always taken the stance that with sufficient liquid assets, namely cash at bank, it would be best placed to ensure business continuity and retain its important and experienced workforce both through foreseeable and unforeseen difficult times.
Flo-Mech. Limited became 100% employee-owned on 18 November 2025, following the transfer of all the shares by the Elderkin family and other shareholders into the Flo-Mech Employee Ownership Trust. Flo-Mech has always valued its family traditions and the way the business is run - with people at its heart. This development brings stability to the ownership structure at a time when many competitors are being acquired by larger operators and losing their identity. Our team, our customers, and the strong relationships we have built over more than 50 years are fundamental to who we are and becoming employee-owned protects these values for the long term. The Directors and management team remain in place to lead the business forward.
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FLO-MECH HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
The Director's strategy has focused on providing excellent customer service to its customer base. As of this customer support teams have been developed to ensure the Group achieves the high standards demanded by management. The Group has a broad range of customers which it services and management have taken the deliberate decision to ensure that the selection of projects undertaken within a given trading period is fairly matched with the resources available to achieve the internally demanded standards. As such, the Group has a firm policy not to accept all contracts offered to them, if, in the opinion of management, accepting all contracts offered means that performance standards may be compromised.
The Group uses financial instruments such as cash, debtors and creditors in order to raise finance. These instruments expose the Group to financial risks which are detailed below: Price risk Wherever possible we look to pass on any increases in costs. We have exclusions built into our quotation and order acknowledgement documents which indicate our right to reassess costs. For more dynamic costs, such as transport, we specifically state that costs will be reviewed at, for example, point of shipment and adjusted as necessary. Where suppliers give advance notice of increases, we often bulk buy or bring forward future purchases to secure the lower price. Interest rate risk The Group is exposed to interest rate fluctuations on its cash holdings. The Directors review its banking facilities on a monthly basis. Credit risk The principal credit risk for the Group arises from its trade debtors. Whilst many of its debtors are ‘blue chip’ household name companies, to ensure this risk is managed effectively the Directors set limits for customers based on a combination of payment history and third-party credit reference. Credit limits are reviewed by the credit controller on a regular basis in conjunction with debt ageing and collection history. Liquidity risk The Directors seek to manage financial risk by ensuring sufficient liquidity is available to meet its foreseeable needs and to invest cashin notice bank accounts safely and profitably. Foreign exchange risk The Group's risk to FX fluctuations arises where overseas contracts are priced and paid using foreign currencies. Where appropriate the Directors will enter into foreign exchange currency contracts to mitigate this risk. In addition, the Group holds several foreign currency bank accounts negating the need for conversion and with it the potential losses due to fluctuations. These funds can also similarly be utilised to pay its foreign suppliers again overcoming potential exchange rate risk.
The directors believe the financial key performance indicators for this business are turnover and profit on ordinary activities before tax, as disclosed in these financial statements.
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FLO-MECH HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
This year we have continued to focus and commit more time and resources to research and development as we believe this will continue to provide an increasingly significant contribution towards activity and profit levels in the future. We continue to invest in research and development and with our customer base increasingly pushing for gains in efficiency and alternative, greener fuels we see sustainability being a key driver going forward.
The Group’s technical department now has a well-established dedicated research and development and Energy & Sustainability section which includes the Innovations Committee, demonstrating the continuing importance placed on this aspect of the Group’s business and their belief of its growing importance to their ongoing success. The Group continues to heavily invest in IT equipment and software to support this area of their business activity. The resulting commercial viability now being realised from earlier years’ activity in this area, is now an integral and increasing part of this Group’s business activities and success, with customer interest and technological advancements reinforcing the importance of our continued commitment to this area of our business.
This report was approved by the board and signed on its behalf.
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FLO-MECH HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2025
The directors present their report and the financial statements for the year ended 31 October 2025.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 Group'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 Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's and Group's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation and minority interests, amounted to £2,323,987 (2024 - £1,481,074).
Particulars of dividends paid are detailed in note 12 to the financial statements.
The directors who served during the year were:
Details concerning principal risks and uncertainties (including financial instruments), future developments and Research and Development are included in the Strategic Report.
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FLO-MECH HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
Subsequent to the year end, there was a change in the ultimate parent undertaking. Further details of this are provided in Note 28 - Post balance sheet events.
The auditor, MHA Audit Services LLP ("MHA"), will be deemed reappointed 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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FLO-MECH HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FLO-MECH HOLDINGS LIMITED
We have audited the financial statements of Flo-Mech Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 October 2025, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and notes to the financial statements, including material 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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 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 Group's or the parent 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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FLO-MECH HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FLO-MECH HOLDINGS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's 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.
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 Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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FLO-MECH HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FLO-MECH HOLDINGS LIMITED (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 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 Group 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 specific procedures for this engagement and the extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
• Enquiry of management and those charged with governance around actual and potential litigation and claims; • Enquiry of entity staff to identify any instances of non-compliance with laws and regulations; • Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, and reviewing accounting estimates for bias; • Reviewing minutes of meetings of those charged with governance; • Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
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 Auditor's Report.
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FLO-MECH HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FLO-MECH HOLDINGS LIMITED (CONTINUED)
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.
Peterborough, United Kingdom
Date:
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542).
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FLO-MECH HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2025
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FLO-MECH HOLDINGS LIMITED
REGISTERED NUMBER: 09238300
CONSOLIDATED BALANCE SHEET
AS AT 31 OCTOBER 2025
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FLO-MECH HOLDINGS LIMITED
REGISTERED NUMBER: 09238300
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 OCTOBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 41 form part of these financial statements.
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FLO-MECH HOLDINGS LIMITED
REGISTERED NUMBER: 09238300
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 41 form part of these financial statements.
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