REGISTERED NUMBER: 09019580 (England and Wales)

Financial Statements for the Year Ended 31 December 2025

for

Reco Equipment Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

G E Roest

M R Percival

REGISTERED OFFICE:

Needingworth Road

St Ives

Cambridgeshire

PE27 3ND

REGISTERED NUMBER:

09019580 (England and Wales)

SENIOR STATUTORY AUDITOR:

Emma Wilsher FCA

AUDITORS:

GH Audit Limited

St George's House

George Street

Huntingdon

Cambridgeshire

PE29 3GH

FIXED ASSETS

Tangible assets

4

9,123,565

9,474,466

CURRENT ASSETS

Debtors

5

192,000

529,491

Cash at bank

819,445

8,342

1,011,445

537,833

CREDITORS

Amounts falling due within one year

6

1,928,097

2,488,162

NET CURRENT LIABILITIES

(916,652

)

(1,950,329

)

TOTAL ASSETS LESS CURRENT LIABILITIES

8,206,913

7,524,137

CREDITORS

Amounts falling due after more than one year

7

(5,385,080

)

(5,099,825

)

PROVISIONS FOR LIABILITIES

8

(905,222

)

(731,603

)

NET ASSETS

1,916,611

1,692,709

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

1,916,511

1,692,609

SHAREHOLDERS' FUNDS

1,916,611

1,692,709

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 27 July 2026 and were signed on its behalf by:

G E Roest - Director

1.	STATUTORY INFORMATION

Reco Equipment 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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies.

Going Concern

The financial statements have been prepared on a going concern basis.

At the balance sheet date, the company had net current liabilities of £916,652 (2024: £1,950,329). However, the directors have reviewed the company's financial position and note that the company held cash balances of £819,445 (2024 £8,342) at the year end and had net assets of £1,916,611 (2024: £1,692,709).

The directors are satisfied that the company has adequate financial resources to meet its liabilities as they fall due for a period of at least twelve months from the date of approval of these financial statements. Accordingly, they consider it appropriate to prepare the financial statements on the going concern basis.

Significant judgements and estimates

In preparing these financial statements, the Director has had to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income expenses.

The estimates and associated assumptions are based on historic experiences and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities and are not readily apparent from other sources. Actual results may differ from these estimates. The judgements, estimates and assumptions which have a significant risk of material adjustment to the carrying amount of assets and liabilities are:

- Tangible fixed assets (see note 6)

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Turnover

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Turnover is recognised for the provision of services when the entity has fulfilled its obligations under contract. Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer. Rental income is recognised on a straight-line basis over the term of the lease.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Fixtures and fittings - 10% on cost

Transport equipment - 10% on cost

Second hand hire equipment - 20% on cost

New hire equipment - 10% to 20% on cost

Leasehold improvements - 10% on cost

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.

Financial instruments

Financial assets

Financial assets comprise cash at bank and in hand and amounts owed by group undertakings;

these are initially recorded at cost on the date they originate and are subsequently recorded at

amortised cost under the effective interest method. The Company considers evidence of impairment for all individual trade and other debtors and amounts owed by group undertakings, and any subsequent impairment is recognised in the Statement of Comprehensive Income.

Impairment of financial assets carried at amortised cost

Impairment provisions are recognised when there is objective evidence that a financial asset or group of financial assets is impaired. Objective evidence includes significant financial difficulties of the counterparty, default or significant delays in payment.

Impairment provisions represent the difference between the net carrying amount of a financial asset

and the present value of the expected future cash receipts from that asset.

Financial liabilities

Financial liabilities comprise other creditors and amounts owed to group undertakings; these are

initially recorded at cost on the date they originate, and are subsequently carried at amortised cost

under the effective interest method.

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 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt

using the effective interest method so that the amount charged is at a constant rate on the carrying

amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

3.	EMPLOYEES AND DIRECTORS

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

4.	TANGIBLE FIXED ASSETS

Fixtures

Leasehold

Rental

and

Transport

improvements

equipment

fittings

equipment

Totals

£

£

£

£

£

COST

At 1 January 2025

164,594

16,173,147

190,804

143,019

16,671,564

Additions

-

1,174,569

-

-

1,174,569

Disposals

(25,871

)

(155,377

)

-

(67,017

)

(248,265

)

At 31 December 2025

138,723

17,192,339

190,804

76,002

17,597,868

DEPRECIATION

At 1 January 2025

126,191

6,756,654

183,875

130,378

7,197,098

Charge for year

13,869

1,399,352

2,520

6,498

1,422,239

Eliminated on disposal

(19,835

)

(64,325

)

-

(60,874

)

(145,034

)

At 31 December 2025

120,225

8,091,681

186,395

76,002

8,474,303

NET BOOK VALUE

At 31 December 2025

18,498

9,100,658

4,409

-

9,123,565

At 31 December 2024

38,403

9,416,493

6,929

12,641

9,474,466

The net book value of tangible fixed assets includes an amount of £7,202,782 (2024 - £8,210,626) in respect of assets held under finance leases and hire purchase contracts. The related depreciation charge on these assets for the year was £973,521 (2024 - £1,153,003).

In the prior year the Company enacted a sale and leaseback transaction with an asset financing company regarding hire equipment bought by the Company in 2024. Within this sale and leaseback transaction the Company entered into a seven year hire purchase agreement for a total amount of £2,291,564.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/12/25

31/12/24

£

£

Trade debtors

192,000

76,800

Other debtors

-

452,691

192,000

529,491

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/12/25

31/12/24

£

£

Hire purchase contracts

1,125,451

761,479

Trade creditors

77,555

539,653

Amounts owed to group undertakings

630,000

1,180,000

Taxation and social security

71,720

-

Other creditors

23,371

7,030

1,928,097

2,488,162

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31/12/25

31/12/24

£

£

Hire purchase contracts

5,385,080

5,099,825

8.	PROVISIONS FOR LIABILITIES

31/12/25

31/12/24

£

£

Deferred tax

905,222

731,603

Deferred

tax

£

Balance at 1 January 2025

731,603

Provided during year

173,619

Balance at 31 December 2025

905,222

The deferred tax liability relates to temporary timing differences during the year, offset against taxable losses carried forward.

The deferred tax balance has been measured at 25%, which was the rate enacted in the year and is the rate at which the liability is expected to unwind.

The balance is expected to reverse in full in future periods as a result of the utilisation of losses

brought forward against taxable profits and the unwinding of the timings differences.

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

The Report of the Auditors was unqualified.

Emma Wilsher FCA (Senior Statutory Auditor)

for and on behalf of GH Audit Limited

10.	RELATED PARTY DISCLOSURES

The Directors consider the key management personnel to be themselves. Their remuneration is borne by another group company.

The following amounts were owed to the Company, by entities under common control at the year end:

2025

2024

£

£

Purchases from entities under common control

462,298

443,688

Sales to entities under common control

2,271,500

1,881,450

Balance due from/ (to) entities under common control

518,886

109,434

11.	ULTIMATE CONTROLLING PARTY

The shares of the Company are 100% owned by RECO Holding B.V., which is the parent company incorporated in The Netherlands.

The largest and smallest group in which the results of the Company are consolidated is that headed by RECO Holding B.V., incorporated in The Netherlands. The consolidated accounts of this company are available to the public and may be obtained from Hoogewaard 187, 2396 AP Koudekerk aan den Rijn, The Netherlands. No other group accounts include the results of the Company.