R.A.F General Engineering Ltd


Directors	GIBKA, Aneta Agnieska
	GIBKI Rafal Stanislaw


Registered Address	2 Europe Way
	Cockermouth
	CA13 0RJ


Registered Number	11020978 (England and Wales)

Notes to the Financial Statements
for the year ended 31 March 2026

1.	Accounting policies

	Statutory information
	The company is a private company limited by shares and registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

	Basis of preparation
	The financial statements have been prepared under the historical cost convention on a going concern basis unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

	Functional and presentation currency
	The financial statements are presented in Pounds Sterling (£) and this is the functional currency of the company.

	Turnover policy
	Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and/or the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

Turnover policy

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and/or the rendering of services.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. 

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

	Employee benefits
	The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further obligation. Contributions to defined contribution plans are expensed in the period to which they relate. Amounts not paid are shown in accruals in the Statement of Financial position. The assets of the plan are held separately from the company in independently administered funds.

Employee benefits

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further obligation. 

Contributions to defined contribution plans are expensed in the period to which they relate.  Amounts not paid are shown in accruals in the Statement of Financial position.  The assets of the plan are held separately from the company in independently administered funds.

	Finance costs
	Finance costs charged to the profit or loss include interest expense calculated using the effective interest method, finance charges on finance leases, and exchange differences on foreign currency borrowings where these are treated as an adjustment to interest costs.

	Current taxation
	Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

	Deferred tax
	Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

Deferred tax

Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. 

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

	Intangible assets
	Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

	Goodwill
	Goodwill arising on an acquisition of a business is carried at cost less accumulated impairment losses, if any. Goodwill is amortised over its expected useful life which is estimated to be ten years. Goodwill is assessed for impairment when there are indicators of impairment and any impairment is charged to the income statement. No reversals of impairment are recognised.

	Tangible fixed assets and depreciation
	Tangible fixed assets are stated at cost or valuation less depreciation. 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. Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Income. Depreciation is provided on all tangible fixed assets as follows:

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost or valuation less depreciation. 

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.

Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Income.

Depreciation is provided on all tangible fixed assets as follows:


		Reducing balance (%)
	Plant and machinery	15
	Vehicles	25
	Office Equipment	10

	Finance leases and hire purchase contracts
	Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, and hire purchase contracts are capitalised in the Statement of Financial Position. They are depreciated over the shorter of their useful lives or the term of the lease. All other lease arrangements are classified as an operating lease. Payments made under operating leases are charged to the Income Statement on a straight line basis over the lease term.

Finance leases and hire purchase contracts

Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, and hire purchase contracts are capitalised in the Statement of Financial Position. They are depreciated over the shorter of their useful lives or the term of the lease. All other lease arrangements are classified as an operating lease.

Payments made under operating leases are charged to the Income Statement on a straight line basis over the lease term.

	Stocks and work in progress
	Stocks are valued at the lower of cost and estimated selling price (less any associated costs to enable such sales to complete). At each date of Statement of financial position, inventories are assessed for impairment. If inventory is impaired, the carrying amount is reduced to its selling price less costs to completed the sale. The impairment loss is recognised immediately in the Income Statement.

Stocks and work in progress

Stocks are valued at the lower of cost and estimated selling price (less any associated costs to enable such sales to complete).

At each date of Statement of financial position, inventories are assessed for impairment.  If inventory is impaired, the carrying amount is reduced to its selling price less costs to completed the sale.  The impairment loss is recognised immediately in the Income Statement.

	Trade and other debtors
	Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

Trade and other debtors

Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

	Trade and other creditors
	Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

	Financial instruments
	The Company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

	Government grants or assistance
	Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the Income Statement at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. Grants of a revenue nature are recognised in the Income Statement in the same period as the related expenditure.

Government grants or assistance

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the Income Statement at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. 

Grants of a revenue nature are recognised in the Income Statement in the same period as the related expenditure.

2.	Average number of employees


		2026		2025
	Average number of employees during the year	11		12

3.	Intangible assets

	Goodwill	Total
	£	£
Cost or valuation
At 01 April 25	4	4
At 31 March 26	4	4
Net book value
At 31 March 26	4	4
At 31 March 25	4	4

4.	Tangible fixed assets

	Plant & machinery	Vehicles	Office Equipment	Total
	£	£	£	£
Cost or valuation
At 01 April 25	461,400	20,619	52,018	534,037
Additions	26,256	11,498	10,789	48,543
At 31 March 26	487,656	32,117	62,807	582,580
Depreciation and impairment
At 01 April 25	186,328	13,432	11,912	211,672
Charge for year	41,588	2,755	4,560	48,903
At 31 March 26	227,916	16,187	16,472	260,575
Net book value
At 31 March 26	259,740	15,930	46,335	322,005
At 31 March 25	275,072	7,187	40,106	322,365

5.	Stocks

	2026	2025
	£	£
Raw materials and consumables	171,721	175,653
Work in progress	93,000	88,500
Total	264,721	264,153

6.	Debtors: amounts due within one year

	2026	2025
	£	£
Trade debtors / trade receivables	224,565	93,068
Other debtors	48,101	44,236
Prepayments and accrued income	9,854	-
Total	282,520	137,304

7.	Creditors: amounts due within one year

	2026	2025
	£	£
Trade creditors / trade payables	289,260	72,651
Bank borrowings and overdrafts	85,698	106,798
Taxation and social security	130,471	74,128
Finance lease and HP contracts	55,361	68,022
Other creditors	23,721	24,087
Accrued liabilities and deferred income	2,435	1,995
Total	586,946	347,681


	Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. Finance lease and HP contracts equal to £55,361 (2025 - £68,022) are secured against the assets to which they relate.

Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

Finance lease and HP contracts equal to £55,361 (2025 - £68,022) are secured against the assets to which they relate.

8.	Creditors: amounts due after one year

	2026	2025
	£	£
Bank borrowings and overdrafts	27,281	109,658
Other creditors	78,001	123,596
Total	105,282	233,254


	Included in other creditors is £13,267 (2025 - £15,608) of capital grant income which is being credited to the Income Statement at the same rate as the depreciation on the assets to which the grant relates.

9.	Obligations under finance leases

		2026		2025
		£		£
	Finance lease and HP contracts	120,095		176,009


	Finance lease and HP contracts equal to £64,735 (2025 - £107,988) are secured against the assets to which they relate.

10.	Provisions for liabilities

	2026	2025
	£	£
Net deferred tax liability (asset)	80,500	59,480
Total	80,500	59,480

11.	Pension commitments
	The pension cost charge represents contributions payable by the company to the fund and amounted to £5,346 (2025 - £6,844).

12.	Other commitments
	At 31 March 2026 the company had future minimum lease payments under non-cancellable operating leases of £54,000 (2025 - £75,000).

	Notes	2026		2025
		£	£	£	£
Fixed assets
Intangible assets	3		4		4
Tangible assets	4		322,005		322,365
			322,009		322,369
Current assets
Stocks	5	264,721		264,153
Debtors	6	282,520		137,304
Cash at bank and on hand		2,598		7,700
		549,839		409,157
Creditors amounts falling due within one year	7	(586,946)		(347,681)
Net current assets (liabilities)			(37,107)		61,476
Total assets less current liabilities			284,902		383,845
Creditors amounts falling due after one year	8		(105,282)		(233,254)
Provisions for liabilities	10		(80,500)		(59,480)
Net assets			99,120		91,111
Capital and reserves
Called up share capital			11		11
Profit and loss account			99,109		91,100
Shareholders' funds			99,120		91,111