Traction Equipment (Stafford) Limited

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—7

1. General Information

Traction Equipment (Stafford) Limited is a private company, limited by shares, incorporated in England & Wales, registered number 01048352 . The registered office is Glover Street, Stafford, Staffordshire, ST16 2NY.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2.2. Going Concern Disclosure

The directors have not identified any material uncertainties related to events or conditions that may cast significant doubt about the company's ability to continue as a going concern.

2.3. Turnover

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 from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Rendering of services

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 is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

2.4. Tangible Fixed Assets and Depreciation

Tangible fixed assets are initially measured at cost and subsequently stated at cost or deemed cost, less accumulated depreciation and any accumulated impairment losses.

Depreciation is provided so as to write off the depreciable amount of each asset, being its cost or valuation less its estimated residual value, over its estimated useful economic life.

The residual values, useful economic lives and depreciation methods are reviewed at each reporting date and revised where appropriate. Changes in residual values and useful economic lives are accounted for prospectively as changes in accounting estimates.

Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the disposal proceeds and the carrying amount of the asset and is recognised in profit or loss.

Freehold	Straight line over twenty five years
Plant & Machinery	8% p.a and 15% p.a reducing balance
Motor Vehicles	25% p.a reducing balance
Fixtures & Fittings	15% p.a reducing balance and 25% p.a straight line

2.5. Leasing and Hire Purchase Contracts

Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.

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Traction Equipment (Stafford) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 May 2026

2.6. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

2.7. Financial Instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, in which case the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including trade and other creditors and finance lease and hire purchase obligations,are initially recognised at transaction price unless the arrangement constitutes a financing transaction, in which case the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost using the effective interest method. Financial liabilities classified as payable within one year are not amortised.

2.8. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

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Traction Equipment (Stafford) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 May 2026

2.9. Judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful economic lives and residual values of tangible fixed assets

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reviewed by the directors at each reporting date and revised where appropriate, having regard to the nature, condition, expected use and estimated disposal value of the assets.

During the year, the directors undertook a review of the residual values of certain tangible fixed assets and revised those estimates where the expected value of the assets at the end of their useful economic lives was considered to be material.

The revisions to residual values represent changes in accounting estimates and have therefore been applied prospectively. The effect of the revised estimates is reflected in the depreciation charge for the current year and, where applicable, future periods over the remaining useful economic lives of the relevant assets.

See note 4 for the carrying amount of tangible fixed assets and note 2.4 for the depreciation policies applied.

2.10. Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible fixed assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any.

Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Any reversal is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal is treated as a revaluation increase.

2.11. Retirement benefits

Contributions to defined contribution pension schemes are charged to the profit and loss account in the period in which they become payable.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 11 (2025: 11)

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Traction Equipment (Stafford) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 May 2026

4. Tangible Assets

	Land & Property
	Freehold	Plant & Machinery	Total
	£	£	£
Cost
As at 1 June 2025	483,242	3,343,450	3,826,692
Additions	18,017	124,311	142,328
Disposals	-	(135,427 )	(135,427 )

As at 31 May 2026	501,259	3,332,334	3,833,593

Depreciation
As at 1 June 2025	72,639	1,487,928	1,560,567
Provided during the period	3,828	97,218	101,046
Disposals	-	(84,691 )	(84,691 )

As at 31 May 2026	76,467	1,500,455	1,576,922

Net Book Value
As at 31 May 2026	424,792	1,831,879	2,256,671

As at 1 June 2025	410,603	1,855,522	2,266,125

Revalued assets

Certain tangible fixed assets are carried at deemed cost following previous revaluations. If those assets had been stated on an historical cost basis rather than at deemed cost, the amounts included in the financial statements would have been as follows:

Cost 3,422,001

Accumulated depreciation (1,505,764)

Carrying value 1,916,237

5. Stocks

	2026	2025
	£	£
Finished goods	28,732	28,813

6. Debtors

	2026	2025
	£	£
Due within one year
Trade debtors	171,456	169,731
Other debtors	150	152

	171,606	169,883

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Traction Equipment (Stafford) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 May 2026

7. Creditors: Amounts Falling Due Within One Year

	2026	2025
	£	£
Net obligations under finance lease and hire purchase contracts	125,396	142,477
Trade creditors	96,443	73,521
Other creditors	2,001	7,115
Taxation and social security	28,898	46,624

	252,738	269,737

Total secured liabilities due within one year amounted to £125,396 (2025: £142,477), in respect of HP obligations which are secured on the assets concerned.

8. Creditors: Amounts Falling Due After More Than One Year

	2026	2025
	£	£
Net obligations under finance lease and hire purchase contracts	71,390	123,176

Total secured liabilities due after one year amounted to £71,390 (2025: £123,176), in respect of HP obligations which are secured on the assets concerned.

9. Obligations Under Finance Leases and Hire Purchase

	2026	2025
	£	£
The future minimum finance lease payments are as follows:
Not later than one year	125,396	142,477
Later than one year and not later than five years	71,390	123,176

	196,786	265,653

	196,786	265,653

10. Share Capital

	2026	2025
	£	£
Allotted, Called up and fully paid	4,600	4,600

11. Reserves

	Share Premium	Revaluation reserve	Profit and Loss Account
	£	£	£
As at 1 June 2025	13,000	323,527	1,601,010
Profit for the year and total comprehensive income	-	-	29,410

Dividends paid	-	-	(42,396)
Transfer from revaluation reserve	-	-	607
Transfer to/from Profit & Loss Account	-	(606 )	-

As at 31 May 2026	13,000	322,921	1,588,631

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		2026		2025
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	4		2,256,671		2,266,125

			2,256,671		2,266,125
CURRENT ASSETS
Stocks	5	28,732		28,813
Debtors	6	171,606		169,883
Cash at bank and in hand		113,159		179,154

		313,497		377,850
Creditors: Amounts Falling Due Within One Year	7	(252,738 )		(269,737 )

NET CURRENT ASSETS (LIABILITIES)			60,759		108,113

TOTAL ASSETS LESS CURRENT LIABILITIES			2,317,430		2,374,238

Creditors: Amounts Falling Due After More Than One Year	8		(71,390 )		(123,176 )

PROVISIONS FOR LIABILITIES
Deferred Taxation			(316,888 )		(308,925 )

NET ASSETS			1,929,152		1,942,137

CAPITAL AND RESERVES
Called up share capital	10		4,600		4,600
Share premium account			13,000		13,000
Revaluation reserve	11		322,921		323,527
Profit and Loss Account			1,588,631		1,601,010

SHAREHOLDERS' FUNDS			1,929,152		1,942,137