EDC (NORTH EAST) LIMITED


Directors	BROWN, Nicholas Mark S
	GUTHRIE, John Richard
	HOOD, Simon Leonard
	MCCULLOUGH, David Alistair
	MILLS, Julian Rice


Company Secretary	HOOD, Simon


Registered Address	45 Kilpatrick Drive Riverfront
	Erskine
	PA8 7AF


Registered Number	SC579863 (Scotland)

Notes to the Financial Statements
for the year ended 31 December 2025

1.	Accounting policies

	Statutory information
	The company is a private company limited by shares and registered in Scotland. 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.

	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 values of assets and liabilities that are not readily apparent from other sources. These critical accounting judgements and estimations 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The directors consider there are no such significant judgements.

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 values of assets and liabilities that are not readily apparent from other sources. These critical accounting judgements and estimations 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The directors consider there are no such significant judgements.

	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.

	Defined contribution pension plan
	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 other creditors in the Statement of Financial Position. The assets of the plan are held separately from the company in independently administered funds.

Defined contribution pension plan

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 other creditors in the Statement of Financial Position.  The assets of the plan are held separately from the company in independently administered funds.

	Share-based payments
	The Company participates in a Share Incentive Plan operated by its parent undertaking, under which equity instruments of the parent company are granted to certain employees of the Company. The arrangement is accounted for as an equity-settled share-based payment in accordance with FRS 102 Section 26. The fair value of the equity instruments granted is measured at the grant date and recognised as an employee expense over the period during which the employees become unconditionally entitled to the awards. The charge is recognised within staff costs, with a corresponding increase in equity, representing a capital contribution from the parent undertaking. No liability is recognised by the Company in respect of these awards, as equity instruments are issued by the parent undertaking. The expense recognised is not subsequently remeasured for changes in the market value of the parent's shares.

Share-based payments

The Company participates in a Share Incentive Plan operated by its parent undertaking, under which equity instruments of the parent company are granted to certain employees of the Company.  The arrangement is accounted for as an equity-settled share-based payment in accordance with FRS 102 Section 26.

The fair value of the equity instruments granted is measured at the grant date and recognised as an employee expense over the period during which the employees become unconditionally entitled to the awards.  The charge is recognised within staff costs, with a corresponding increase in equity, representing a capital contribution from the parent undertaking.

No liability is recognised by the Company in respect of these awards, as equity instruments are issued by the parent undertaking.  The expense recognised is not subsequently remeasured for changes in the market value of the parent's shares.

	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.

	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 Income Statement 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 Income Statement

Depreciation is provided on all tangible fixed assets as follows:


		Straight line (years)
	Plant and machinery	20
	Fixtures and fittings	10
	Vehicles	20
	Office Equipment	25

	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

	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, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Income Statement. Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

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, stocks are assessed for impairment.  If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell.  The impairment loss is recognised immediately in the Income Statement.

Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

	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.

2.	Average number of employees


		2025		2024
	Average number of employees during the year	13		12

3.	Tangible fixed assets

	Plant & machinery	Vehicles	Fixtures & fittings	Office Equipment	Total
	£	£	£	£	£
Cost or valuation
At 01 January 25	6,981	86,117	8,170	2,848	104,116
At 31 December 25	6,981	86,117	8,170	2,848	104,116
Depreciation and impairment
At 01 January 25	4,537	24,092	272	2,374	31,275
Charge for year	1,395	17,223	817	474	19,909
At 31 December 25	5,932	41,315	1,089	2,848	51,184
Net book value
At 31 December 25	1,049	44,802	7,081	-	52,932
At 31 December 24	2,444	62,025	7,898	474	72,841


	Included above is £42,802 (2024: £59,356) carrying value of assets for which the company has pledged security.

4.	Stocks

	2025	2024
	£	£
Raw materials and consumables	115,593	134,399
Work in progress	19,634	37,742
Total	135,227	172,141

5.	Debtors: amounts due within one year

	2025	2024
	£	£
Trade debtors / trade receivables	519,946	750,631
Other debtors	204,749	285,084
Prepayments and accrued income	15,548	30,106
Total	740,243	1,065,821

6.	Creditors: amounts due within one year

	2025	2024
	£	£
Trade creditors / trade payables	343,917	492,639
Taxation and social security	111,165	211,134
Finance lease and HP contracts	15,936	14,763
Other creditors	212,150	188,493
Total	683,168	907,029

7.	Creditors: amounts due after one year

	2025	2024
	£	£
Other creditors	21,205	37,141
Total	21,205	37,141

8.	Obligations under finance leases

		2025		2024
		£		£
	Finance lease and HP contracts	37,141		51,903

9.	Provisions for liabilities

	2025	2024
	£	£
Net deferred tax liability (asset)	13,233	18,210
Total	13,233	18,210

10.	Other commitments
	Along with its fellow subsidiaries, the company has provided a cross guarantee for a loan due to its parent company, EDC Integrated Limited. The loan balance outstanding at 31 December 2025 is £331,679. The lender holds a floating charge over the undertaking of the company.

11.	Operating lease commitments
	At 31st December 2025 the company had future minimum lease payments under non-cancellable operating leases of £60,069 (2024: £43,133).

	Notes	2025		2024
		£	£	£	£
Fixed assets
Tangible assets	3		52,932		72,841
			52,932		72,841
Current assets
Stocks	4	135,227		172,141
Debtors	5	740,243		1,065,821
Cash at bank and on hand		329,949		195,183
		1,205,419		1,433,145
Creditors amounts falling due within one year	6	(683,168)		(907,029)
Net current assets (liabilities)			522,251		526,116
Total assets less current liabilities			575,183		598,957
Creditors amounts falling due after one year	7		(21,205)		(37,141)
Provisions for liabilities	9		(13,233)		(18,210)
Net assets			540,745		543,606
Capital and reserves
Called up share capital			110		110
Other reserves			3,685		-
Profit and loss account			536,950		543,496
Shareholders' funds			540,745		543,606