Company No:
Contents
| Note | 2025 | 2024 | ||
| £ | £ | |||
| Fixed assets | ||||
| Tangible assets | 3 |
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| Investments | 4 |
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| 419,607 | 426,122 | |||
| Current assets | ||||
| Debtors | 5 |
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| Cash at bank and in hand |
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| 111,404 | 101,478 | |||
| Creditors: amounts falling due within one year | 6 | (
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| Net current (liabilities)/assets | (376,992) | 1,756 | ||
| Total assets less current liabilities | 42,615 | 427,878 | ||
| Creditors: amounts falling due after more than one year | 7 | (
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| Net (liabilities)/assets | (
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| Capital and reserves | ||||
| Called-up share capital | 8 |
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| Share premium account |
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| Profit and loss account | (
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| Total shareholders' (deficit)/funds | (
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Directors' responsibilities:
The financial statements of Leviathan Engineering Limited (registered number:
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D S Sneddon
Director |
The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.
Leviathan Engineering Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Flat 28 Speed House, Barbican, London, EC2Y 8AT, United Kingdom.
The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.
The directors consider the Group’s prospects over the next 12 months to be strong, supported by a growing order book, strengthening relationships across a broader portfolio of key customers, and ongoing improvement initiatives. The realisation of synergies across the Group further underpins this confidence.
Financial performance of its subsidiary group companies improved during the year, and this momentum has continued into the current financial year. During the year, certain of the subsidiary group’s loan covenants were breached and their secured lender monitored performance closely, waiving any event of default.
The directors have prepared integrated profit and cash flow forecasts for each of the subsidiary sub-groups covering at least the next twelve months, based on realistic assumptions for sales, margins, overheads and working capital. The directors have carefully considered the available capacity when preparing these forecasts including the impact on the cash position should they fall short. Ongoing support from the secured lender has been confirmed, contingent on the achievement of these forecasts. In addition, the company’s shareholders have signalled their intent to provide additional support to the group, if required.
The forecasts also considered Put Options as well as Deferred Consideration exercisable by subsidiary sub-groups minority shareholders, which may be financed through a loan arrangement with the company, which has the right to acquire the shares on exercise. The Options, if exercised would trigger a payment which exceeds available funds, as such payments would have to be made over time, subject to an agreement being reached with the minority shareholders. Discussions with minority shareholders are ongoing and positive regarding the timing and quantum of any exercise, and the directors’ proposed outcome has been reflected in the cash flow forecasts. A settlement has already been agreed for the Deferred Consideration and Put Option exercise for one of the three subsidiary sub-groups. The company’s shareholders have signalled their intent to support the group financially whilst reaching such agreements and obtaining the funding required to settle these liabilities.
Accordingly, based on all the above considerations, the directors do not consider there is any material uncertainty that would affect the group’s ability to continue as a going concern and that consequently the accounts are prepared on a going concern basis.
Group accounts exemption s399
The Company has taken advantage of the exemption in section 399 of the Companies Act 2006 not to prepare consolidated accounts, because the group it heads qualifies as small. The financial statements present information about the Company as an individual entity only.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.
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Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account as described below.
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value through profit or loss if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.
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 Company after deducting all of its liabilities.
Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets receivable within one year, such as trade debtors and bank balances, are measured at transaction price less any impairment.
Basic financial assets receivable within more than one year are measured at amortised cost less any impairment.
Financial assets are derecognised when and only when the contractual rights to the cash flows from the financial asset expire or are settled, or the Company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or the Company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
Basic financial liabilities
Basic financial liabilities that have no stated interest rate and are payable within one year, such as trade creditors, are measured at transaction price.
Other basic financial liabilities are measured at amortised cost.
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
Equity instruments
Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.
Shareholder loans are recognised initially at the transaction price, being the proceeds received net of directly attributable transaction costs. Interest payable on shareholder loans is recognised within finance costs in the profit and loss account on an accruals basis so as to produce a constant periodic rate of interest on the outstanding liability.
Shareholder loans are classified as creditors due within one year where repayment is due within twelve months of the reporting date. Loans for which repayment is not due within twelve months after the reporting date are classified as creditors due after more than one year.
Any accrued but unpaid interest is included within creditors and recognised as part of the carrying value of the loan.
| 2025 | 2024 | ||
| Number | Number | ||
| Monthly average number of persons employed by the Company during the year, including directors |
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| Vehicles | Total | ||
| £ | £ | ||
| Cost | |||
| At 01 December 2024 |
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| At 30 November 2025 |
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| Accumulated depreciation | |||
| At 01 December 2024 |
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| Charge for the financial year |
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| At 30 November 2025 |
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| Net book value | |||
| At 30 November 2025 | 19,547 | 19,547 | |
| At 30 November 2024 | 26,062 | 26,062 | |
| Leased assets included above: | |||
| Net book value | |||
| At 30 November 2025 | 19,547 | 19,547 | |
| At 30 November 2024 | 26,062 | 26,062 |
Investments in subsidiaries
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| Cost | |
| At 01 December 2024 |
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| At 30 November 2025 |
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| Carrying value at 30 November 2025 |
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| Carrying value at 30 November 2024 |
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| 2025 | 2024 | ||
| £ | £ | ||
| Amounts owed by Group undertakings |
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| Other debtors |
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| £ | £ | ||
| Amounts owed to Group undertakings |
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| Obligations under finance leases and hire purchase contracts (secured) |
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| Other creditors |
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The above hire purchase obligation of £5,932 (2024- £5,988) is secured by respective asset owned by the company.
Included within other creditors were unsecured loans from shareholders and shareholder- related entities amounting to £443,955 (2024- 90,428) . The loans bear interest at rates ranging from 8% to 16% per annum and are repayable within twelve months of the balance sheet date. The loans are unsecured and no formal security has been granted over the assets of the company.
| 2025 | 2024 | ||
| £ | £ | ||
| Obligations under finance leases and hire purchase contracts (secured) |
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| Other creditors |
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| 2025 | 2024 | ||
| £ | £ | ||
| Allotted, called-up and fully-paid | |||
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Transactions with entities in which the entity itself has a participating interest
At the year-end, an amount of £97,498 (2024 - £92,114) was due to the company from two of its subsidaries. These amounts are not secured and are interest free and repayable on demand.
During the year the company entered into transactions with a company within the wider group structure. At the balance sheet date, £29,800 was due to this company (2024: £nil). The balance is unsecured, interest free and repayable on demand.