The directors present the strategic report for the period ended 31 December 2025..
Group formation
On the 19th December 2022 Haith Group Limited acquired the whole of the share capital of Tickhill Engineering Limited and Haith Engineers Limited as part of a strategic group re-organisation. The main purpose behind the re-organisation was to centralise activities and enable the business to effectively and efficiently focus on its core products and market.
Company strategy
The group's primary strategy is to meet, and where possible exceed, the requirements of customers in the agricultural, vegetable packaging and processing and bulk material handling industries, by designing and manufacturing reputable machinery and equipment at competitive prices.
The accounts have been prepared using the merger accounting rules and methodology and the group's key performance indicators are as follows:
2025 2024 2023
Turnover 18,883,161 £19,455,643 £16,973,942
Turnover Growth (3%) 15% (7%)
Gross Profit Margin 26.08% 26.20% 29.16%
At the end of the group's financial year, net assets totalled £24,564,295.
Turnover for the year under review has remained relatively stable in comparison to the 2024 results and is significantly higher than that achieved in 2023 as detailed above . The turnover and stable gross profit margins were driven by a favourable product mix, continued reduced direct material costs and the inclusion of several large contracts in the year. A margin of of 26.08% has been achieved in 2025 remaining in line with the 26.20% obtained in 2024.
The UK market remains the principal market and represents 79% (2024 - 77%) of the overall turnover achieved in the year. Trade with the European market, which has fallen back to 9% of turnover in the year compared to 14% in 2024, remains subdued due in part to the ongoing conflict in the Ukraine and the overall economic situation in Europe. The worldwide market has improved in 2025 and represented 12% of the turnover achieved in the year (2024 - 9%), this is dependent upon the timing of contracts and is anticipated to improve going forward. The group has retained its strong links with its customers and suppliers, through maintaining and improving the group's reputation for quality and excellence. In light of the above the directors are satisfied with the profit before tax of £3,053,974 achieved and the performance of the business for the year under review.
The directors also monitor the level of future contracts and cash resources which, in addition to the above, they consider to be key performance indicators. Work undertaken to date and order levels are such that the directors are confident that turnover in the 2026 year will be at least in line with, if not better than, that achieved in 2025. Bank and cash funds, including those held in investment accounts, have increased in the year from £19,429,795 in 2024 to £20,155,349 at the 31st December 2025. The directors consider that the cash resources available are sufficient to meet the groups needs and look to invest the surplus funds where available.
The group continues to look to expand its product range through continued investment in research and development into further automation and efficiency gains within the sectors in which it operates.
Principal risks and uncertainties faced by the group are those directly related to operating in the agricultural and processing markets and the associated labour markets. Close assessment of these markets and monitoring future contracts is undertaken to identify any changes within the business sector to try to mitigate the impact of any future general business risk within the sector to the group. In addition there is the general risk and cash flow risk associated with selling goods on credit. The group manages this through effective credit control procedures. Given the business also undertakes export sales, the group is further exposed to foreign currency fluctuations. The group manages the risk through ensuring contracts are undertaken in sterling and mitigating exposure throughout the period. As detailed within future developments the continuing impact of Brexit represents a risk for the group which it believes it can manage to its advantage.
The directors continue to review and develop their strategic level planning by looking to identify potential factors which could impact on the business, with a view to enable them to effectively manage and mitigate the associated risks.
In order to meet its objectives, it is essential that the group recruits and retains the highest calibre of employees at every level of the organisation. The employment policies of the group embody the principles of equal opportunity. The group gives full and fair consideration to employment for disabled persons. If an employee became disabled, arrangements would be made wherever practical by identifying employment suited to that person's capabilities across the group and provide necessary training.
The group is still actively looking to expand its sales and service presence in the global market. The directors are developing a programme of internal investment within the groups production and procurement facilities in order to service increased demand both at domestic and international sales and service levels. Following the business re-organisation and subsequent acquisition of the group by the Grimme group of companies on the 1 April 2026, the group will benefit from the access to key resources which will enable it to move forward and expand into the key growth markets identified by the management team.
The risks to the UK economic growth still remain significant and future prospects may be influenced by developments in trade with the Eurozone as well as the impact on the agricultural sector of the Ukraine/Russian conflict. The directors are confident that the group can utilise the long term impact of changes arising from the above for its own economic benefit, in particular the impact on the labour markets within the industry sectors the group serves are anticipated to result in increased automation to the benefit of the company. The potential impact on the group of the implementation of tariffs by the US government is being kept under review by the groups management, to enable them to act as necessary as matters progress.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2025.
The results for the year are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
In the opinion of the directors the market value of freehold land and buildings is well in excess of the balance sheet values.
Changes in fixed assets during the year are set out in the notes to the financial statements.
The group has continued to expand its product range through continued innovative research and development into further mechanisation of the agricultural sector.
In addition the group continues to look at alternative market sectors where it is believed growth can be achieved
The future developments of the business have been disclosed in the Strategic Report.
The auditors, Warrens Accountants Ltd, will be proposed for re-appointment in accordance with Section 487 (2) of the Companies Act 2006
The group operates a treasury function which is responsible for managing the liquidity, interest and foreign currency risks associated with the group’s activities.
The group's principal financial instruments comprise bank balances, investment accounts, trade debtors and trade creditors. The main purpose of these instruments is to finance the group's operational activities.
The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.
In respect of bank balances, the liquidity is managed by maintaining a balance sufficient to cover the group's anticipated operating funding requirements. All of the group's cash balances are held in such a way that achieves a competitive rate of interest. The business makes use of higher rate bank deposit facilities where funds are available. Trade debtors are managed in respect of credit and cash flow risks by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debts. Trade creditors' liquidity risk is managed by ensuring sufficient bank funds are available to meet amounts due, with regular fund availability reviews undertaken. The group is also exposed to pricing risks. The directors have implemented a strong procedural system within this area and all contracts are reviewed in detail throughout the full term of the contract.
This report has been prepared in accordance with the provisions applicable to groups and companies entitled to the exemptions applicable to medium sized companies under Part 15 of the Companies Act 2006..
United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and parent company, and of the profit or loss of the group for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and parent company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent company, and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of Haith Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant 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).
Basis for opinion
Conclusions relating to going concern
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 and 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.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the 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 strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
As part of designing our audit, we determined materiality and assessed the risk of material misstatement in the financial statements, including how fraud may occur by enquiring with management as to its own consideration of fraud. In particular, we looked at where management made subjective judgements, for example in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. We also considered potential financial or other pressures, opportunity and motivations for fraud. As part of the discussion we identified the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations and how management monitor these processes. Appropriate procedures included the review and testing of material adjusting journals and key estimates and judgements made by management.
We gained an understanding of the legal and regularity framework applicable to the company, its group and the industry in which it operates, drawing on our audit experience and knowledge of the sector they operate in, and considered the risk of acts by the company and group that were contrary to these laws and regulations, including fraud.
We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to:
The Companies Act 2006 and associated legislation
UK Tax Legislation
UK Health and Safety at Work legislation
UK Employment & Labour laws and regulations
We also made enquiries of management with regards to the compliance with the above laws and regulations and obtained any necessary evidence to corroborate the information provided, for example minutes of directors and board meetings and legal correspondence between the company,its group and its solicitors.
We have identified revenue recognition, management override and completeness of related party transactions as key audit matters relating to irregularities, including fraud.
We have evaluated management's incentives for fraudulent manipulation of the financial statements, including the risk of management overriding controls, and identified that the principal risks relate to management bias in accounting estimates and judgmental areas of the financial statements.
The following audit work was undertaken in response to the risks identified:
- Recalculation and assessment of the long term contract work in progress calculations to job costing records, completed contract information and available documentation. Ensuring contracts are correctly analysed and disclosed within the financial statements.
- Assessment of the recoverability of the long term contract work in progress as part of the overall bad debt review and after date receipts.
- Attendance at physical annual stocktake, reviewing ongoing contract work on site and associated parts stock.
- Enquiry of management, those charged with governance and the entity’s solicitors around actual and potential litigation and claims.
- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.
- Reviewing minutes of meetings of those charged with governance.
- Reviewing key sources of estimation uncertainty testing to supporting documentation, ensuring reasonableness of assumptions and consistently applied
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, particularly around the financial year end, and evaluating the business rationale of significant transactions outside the normal course of business.
- Identifying related parties and ensuring transactions are complete by testing to available supporting documentation.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
The income statement has been prepared on the basis that all operations are continuing operations.
The notes on pages 18 to 38 form part of these financial statements.
The notes on pages 18 to 38 form part of these financial statements.
The notes on pages 18 to 38 form part of these financial statements.
The notes on pages 18 to 38 form part of these financial statements.
As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £0 (2024 - £0 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The notes on pages 18 to 38 form part of these financial statements.
The notes on pages 18 to 38 form part of these financial statements.
The notes on pages 18 to 38 form part of these financial statements.
The notes on pages 18 to 38 form part of these financial statements.
Haith Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The company's registered number is 9483172 and the registered office is Cow House Lane, Armthorpe, Doncaster, South Yorkshire, DN3 3EE.
The group consists of Haith Group Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company Haith Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
At the time of approving the financial statements, the directors have a reasonable expectation that the group and parent company have adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. In assessing whether the going concern assumption is appropriate, management has taken into account all available relevant information about the future, which is at least, but is not limited to, 12 months from the date when the financial statements are authorised for issue.
Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.
When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
Contract revenue recognition
When the outcome of a machine build contract can be estimated reliably, contract revenue and contract costs are recognised as revenue and expenses respectively by reference to the stage of completion of the contract activity at the balance sheet date (percentage of completion method). When the outcome of a contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred that are likely to be recoverable. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.
At the balance sheet date, the cumulative costs incurred plus recognised profit (less retained losses) on each contract is compared against the progressed billings. Where the cumulative costs incurred plus the recognised profits (less recognised losses) exceed progress billings, the balance is presented as due from customers on contracts within debtors. Where progressed billings exceed the cumulative costs incurred plus recognised profits (less recognised losses), the balance is presented as payments on account of contracts within creditors. Costs incurred in connection with future activity on a contract are shown as contract work in progress on the balance sheet unless it is not probable that such costs are recoverable from the customers, in which case, such costs are recognised as an expense immediately.
Progress billings not yet paid by customers and retentions by customers are included within trade debtors. Advances received are included within trade creditors.
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
Freehold land is not depreciated.
The assets’ residual values and useful lives are reviewed and adjusted if necessary, at the end of each reporting period. The effect of any change is accounted for prospectively.
Tangible assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs and borrowing costs capitalised.
Tangible assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in the profit and loss account
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
At each reporting period end date, the group reviews the carrying amounts of its tangible 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. The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the 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 for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) 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. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
Fair Value measurement of financial instruments
Current asset investments are measured at fair value (FVTPL) as detailed in the accounting policy notes. All other financial instruments are measured as detailed below.
Basic financial assets, which include 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, where 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.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The 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 net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date 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 is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Contributions in respect of the group's defined contribution pension scheme are charged to the profit and loss account for the year in which they are payable to the scheme. Differences between contributions payable and contributions actually paid in the year are shown as either accruals or prepayments at the year end.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Current asset investments
Investments within current assets are bank deposit accounts that are held on terms whereby they do not meet the criteria to be treated as cash at bank and in hand.
The current asset investments are classified at fair value through the profit and loss account (FVTPL).
Financial assets classified at their FVTPL are initially recognised at the fair value of the consideration paid. They are subsequently measured at fair value with any resultant gain or loss recognised in the statement of income and retained earnings.
The preparation of financial statements in conformity with FRS 102 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The actual outcome may diverge from these estimates if other assumptions are made, or other conditions arise.
Significant judgements
In the course of preparing the financial statements, no significant judgements have been made in the process of applying the company's accounting policies, other than those involving estimations that have had a significant effect on the amounts recognised in the financial statements.
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and by their nature, will rarely equal the related actual outcome. The company does not have any key assumptions concerning the future, or other key sources of estimation or uncertainty in the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Notwithstanding this, the following matters should be noted;
A significant proportion of the company's activities relate to projects which are accounted for using long term contract work in progress principles. The company is required to make estimates for revenue and margins. These estimates may depend upon the outcome of future events and may need to be revised as circumstances change.
In relation to the company's property, plant and equipment useful economic lives and residual value of assets have been established using historical experience and an assessment of the nature of the assets involved, again these estimates may need to be revised as circumstances and technology change.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2024 - 2).
The above interest relates to interest receivable on current asset investments which are made up of bank deposits whose terms are such that they do not fall to be treated as cash at bank.
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Included within tangible fixed assets are assets held under finance leases or hire purchase contracts, as follows:
Freehold land and buildings includes non depreciated land amounting to £18,489.
Details of the company's subsidiaries at 31 December 2025 are as follows:
On the 1st January 2023, following a share for share exchange between Haith Group Limited, Tickhill Engineering Company Limited and Haith Engineers Limited the group was formed. The reorganisation was accounted for using merger accounting.
Haith Engineers Limited was exempt from the requirements of the Companies Act 2006 relating to the audit of its accounts under section 479A of that Act.
The current asset investments are bank term deposits held at their fair value, being the original cost of the investment plus interest earned to date.
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 6 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The amounts due in respect of finance lease and hire purchase contracts are secured on the underlying assets financed.
Deferred income is included in the financial statements as follows:
The capital grant detailed above is being amortised over the anticipated lifetime of the underlying asset acquired at a rate of 25% per annum on a reducing balance basis.
The following are the major deferred tax liabilities and assets recognised by the group and company:
There is expected to be no material reversal of the deferred tax charge in the following financial period.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
Monthly employee contributions collected and paid over immediately after the financial year end amounted to £Nil (2024 - £17,334).
Except as otherwise provided in the company's articles of association, the A Shares and the B Shares rank pari passu in all respects.
Amounts authorised but not contracted for or provided in the financial statements:
The remuneration of key management personnel is as follows.
Employers NIC contributions costs of £113,172 (2024 - £93,213) were met on behalf of the key management personnel in addition to the above costs.
The group sold goods and services and re-charged costs, on normal commercial terms, to companies under common control of the Haith family directors amounting to £Nil (2024 - £198).
The group acquired goods and services, on normal commercial terms, from a company under the control of one of the Haith family director / shareholder's immediate family amounting to £148,304 (2024: £172,705). At the 31st December 2025 £6,682 was owed by the group to the company (2024: £2,826) on normal trading terms.
At the 31st December 2024 the group was owed £56,092 (2024 - £79,055), interest free on extended trading terms, by a fellow subsidiary of a company holding a participating interest in Haith Group Limited at that date. The group acquired goods and services from this company of £56,023 (2024 - £435) in the year and sold goods and services to them amounting to £13,557 (2024 - £275,253). Goods and services of £15,038 were also acquired from another fellow group company of the company holding a participating interest in Haith Group Limited.
In the prior year the group sold a motor vehicle to a family member of one of its directors for £18,000, its then market value. No transactions of this nature were undertaken in the current year.