REGISTERED NUMBER: 01555389 (England and Wales)

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

FOR

ARROWSMITH ENGINEERING AND CONSULTANTS

LIMITED

Page

Company Information

1

Abridged Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Mr G W Harvey

Mr N F Smith

REGISTERED OFFICE:

Laurence Walter House

Addison Road

Chilton Industrial Estate

Sudbury

Suffolk

CO10 2YW

REGISTERED NUMBER:

01555389 (England and Wales)

SENIOR STATUTORY AUDITOR:

Mr Adam Moody FCCA

AUDITORS:

Xeinadin Audit Limited

Statutory Auditor

Maple House, Level 5A

149 Tottenham Court Road

London

W1T 7NF

FIXED ASSETS

Intangible assets

4

375,969

469,961

Tangible assets

5

175,380

234,650

551,349

704,611

CURRENT ASSETS

Stocks

1,122,158

1,794,119

Debtors

1,013,772

1,133,913

Cash at bank

1,656,590

603,493

3,792,520

3,531,525

CREDITORS

Amounts falling due within one year

2,342,008

2,766,340

NET CURRENT ASSETS

1,450,512

765,185

TOTAL ASSETS LESS CURRENT LIABILITIES

2,001,861

1,469,796

CREDITORS

Amounts falling due after more than one year

(76,447

)

(124,646

)

PROVISIONS FOR LIABILITIES

7

(26,086

)

(15,133

)

NET ASSETS

1,899,328

1,330,017

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

1,899,228

1,329,917

SHAREHOLDERS' FUNDS

1,899,328

1,330,017

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

All the members have consented to the preparation of an abridged Income Statement and an abridged Balance Sheet for the year ended 31 October 2025 in accordance with Section 444(2A) of the Companies Act 2006.

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 17 July 2026 and were signed on its behalf by:

Mr G W Harvey - Director

1.	STATUTORY INFORMATION

Arrowsmith Engineering and Consultants 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

Critical accounting judgements and key sources of estimation uncertainty

Estimates and judgments 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.

The items in the financial statements where these judgements and estimates have been made include:

- assessing the useful economic lives attributed to tangible fixed assets used to determine the annual depreciation charge;

- the provision required for any bad or doubtful debts and

- the provision required for any obsolete or slow moving stock.

Turnover

Turnover represents the invoiced value of goods and services supplied to external customers, excluding value added tax. Turnover is recognised and a debtor recorded once all obligations under the sales order have been performed subject to adjustments for work in progress at the year end.

Turnover is recognised when goods and services are delivered and legal title is passed to customers.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2020, is being amortised evenly over its estimated useful life of ten years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Short leasehold

-

10% on cost

Plant and machinery

-

20% on cost

Fixtures and fittings

-

20% on cost

Motor vehicles

-

20% on cost

Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since last annual reporting date in the pattern by which the company expects to consume an asset's future economic benefits.

Stocks

Stock and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

Basic financial assets, including trade and other receivables and cash and bank balances are initially recognised at transaction price, 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.

Such assets are subsequently carried at amortised cost using the effective interest method.

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow Group companies and preference shares that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate 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

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.

Research and development

Expenditure on research and development activities is recognised in the profit and loss account as an expense as incurred.

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.

Hire purchase and leasing commitments

Assets that are held by the Company under leases which transfer to the Company substantially all the risks and rewards of ownership are classified as being held under finance leases. Leases which do not transfer substantially all the risks and rewards of ownership to the Company are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Company's policy on borrowing costs (see the accounting policy above). Contingent rentals are recognised as expenses in the periods in which they are incurred.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred.

In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight­ line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. A defined contribution plan is a post-employment benefit plan under which the company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the profit and loss account in the periods during which services are rendered by employees.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 16 (2024 - 17 ) .

4.	INTANGIBLE FIXED ASSETS

Totals

£

COST

At 1 November 2024

and 31 October 2025

939,922

AMORTISATION

At 1 November 2024

469,961

Amortisation for year

93,992

At 31 October 2025

563,953

NET BOOK VALUE

At 31 October 2025

375,969

At 31 October 2024

469,961

5.	TANGIBLE FIXED ASSETS

Totals

£

COST

At 1 November 2024

2,336,083

Additions

20,772

Disposals

(9,500

)

At 31 October 2025

2,347,355

DEPRECIATION

At 1 November 2024

2,101,433

Charge for year

78,047

Eliminated on disposal

(7,505

)

At 31 October 2025

2,171,975

NET BOOK VALUE

At 31 October 2025

175,380

At 31 October 2024

234,650

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Totals

£

COST

At 1 November 2024

and 31 October 2025

316,592

DEPRECIATION

At 1 November 2024

and 31 October 2025

137,850

NET BOOK VALUE

At 31 October 2025

178,742

At 31 October 2024

178,742

6.	SECURED DEBTS

The following secured debts are included within creditors:

2025

2024

£

£

Hire purchase contracts

127,632

178,742

Hire purchase contracts are secured over the assets to which they relate.

7.	PROVISIONS FOR LIABILITIES

2025

2024

£

£

Deferred tax

26,086

15,133

Deferred

tax

£

Balance at 1 November 2024

15,133

Provided during year

10,953

Balance at 31 October 2025

26,086

Deferred tax relates to accelerated capital allowances.

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

The Report of the Auditors was unqualified.

Mr Adam Moody FCCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

9.	PENSION COMMITMENTS

The company operates a defined contribution pension scheme for certain members of staff and the pension charge represents the amounts paid by the company during the year. Payments during the year amounted to £59,757 (2024: £54,516).The assets of the scheme are held separately from those of the company in an independently administered fund.

10.	RELATED PARTY DISCLOSURES

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 wholly owned subsidiaries within the group.

During the year the company supplied goods and services to companies within the HBS Group Trustees Ltd, an Employee Ownership Trust, of which one of the directors is a trustee of, amounting to £nil (2024: £17,314).

During the year the company received goods and services from companies within the HBS Group Trustees Ltd, amounting to £4,751 (2024: £4,859) and the balance outstanding at the year end amounted to £48,079 (2024: £3,593).

The company also occupies premises owned by the directors' pension scheme. A commercial rent is paid to the pension scheme in this respect. The rents are set by independent market values in accordance with the leases of the properties. The amount of Rent paid to the scheme during the year amounted to £180,869 (2024: £184,309). The balance due at the year end in relation to this activity amounted to £50,670 (2024: £57,984).

11.	FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES

In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.

12.	POST BALANCE SHEET EVENTS

On the 24th November 2025, MEL Aviation Trustee limited (an Employee Ownership Trust) acquired 70% of MEL Aviation Limited. The Trustees of the Employee Ownership Trust are Mr G W Harvey, Mr K J Vincent and Mr A Lansdell.

13.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is MEL Aviation Limited.

The company is a wholly owned subsidiary of MEL Aviation Ltd. At the balance sheet date, Mr G W Harvey and Mr N F Smith each held 50% of the shares in MEL Aviation Ltd.